Posted on 03/23/2006 7:10:32 AM PST by SoFloFreeper
BC-APNewsAlert WASHINGTON (AP) -- A real estate trade group reports that sales of existing homes rose by an unexpected 5.2 percent in February as warm weather boosted demand.
Let's be honest, there was a short dip in there where Ex-T was correct. Every economic cycle has its dips, and a monkey could have predicted that with as much accuracy, though.
I'd be lucky if my house appreciated enough to even keep up with inflation. Location, location, indeed.
Gosh, this is the second "unexpected" bit of good economic news I've seen today. I wonder what the weather headline was? "Sun unexpectedly rises this morning"
Why are the interest rates low?
" There is a community lake across the road, but I'd love to own my own!"
Everybody on a lake out here (northwestern Summerfield, just below Stokesdale) owns part of the lake, with property lines meeting in the middle, underwater. We all help out with keeping it nice, stocking it with grass carp to keep the ugly duck grass out, lowering the water level in the spring so we can work on shoreline landscaping, retaining walls, docks, etcetera. None of the lakes are really large at all; the biggest one is 14 acres, three others between 5 and 7 acres, and numerous small ponds. All the water-breed dogs keep the Canada Geese pretty well run off, so we don't have to deal with the gigantic droppings all over the place, like I've seen on a few golf courses, lol.
He was only correct if he predicted a short dip.
But predicting "doom doom doom" and then experiencing a short dip would not in this plane of reality constitute being "correct."
"Why are the interest rates low?"
Heavy foreign buying of treasuries has depressed long yields, which in turn is depressing mortgage rates.
You are right and RedBloodedAmerican shows an extreme lack of common sense.
Had Bush lowered taxes but interest rates soared, housing would have plunged, not risen, so of course the reason is lower rates, not the tax cuts.
This is 1 = 1 = 2 simple common sense that member lacks. And, you and I probably know that the reason rates plunged was due to a recession, then the Fed plugged in some additional lower rates following 911.
Should Bush be blamed for the crash and the recession? Of course not. How can he receive credit for the housing boom without blaming him for the crash and the recession? If he is to get credit for the lower rates that caused the housing boom, then he must be blamed for the crash and the recession. These people that do that are ignorant of economic facts.
Anybody who makes these associations between every economic indicator and presidential performance lacks basic common sense.
In the last few years, many buyers took out interest-only, variable-rate loans, and in some cases put no money down to afford a house, said Frank Nothaft, chief economist with government-chartered mortgage giant Freddie Mac. He estimates one out of every three loans issued in 2005 was an adjustable rate mortgage. Now that we’ve seen 14 consecutive interest-rate increases since June 30, 2004, many of these loan rates are bumping up, increasing the size of mortgage payments.
Nothaft estimates that $500 billion in variable rate mortgages will reset, or rise, sometime this year, leaving many with a payment they can no longer afford. “Those would be the candidates for … delinquent status,” he said.
Foreclosures had been at historic lows in the past three years as rapidly appreciating home prices gave financially strapped owners the option to refinance, sell their house at a profit or take out a cheap home equity line of credit. But with the pace of appreciation slowing in many markets and interest rates rising, for many, these avenues have been cut off.
People have been using their houses as ATMs...this practice is going to come to a screeching halt, as lenders have already tightened their standards and people aren't going to be able to refi their way out of this mess. “You’re really out of options,” said Susan Wachter, professor of real estate at the Wharton School at the University of Pennsylvania.
Don't ask. You'll get 3 paragraphs of personal attacks telling you you're foolish, one paragraph telling you not to make personal attacks and another saying the President should not get credit for anything.
I get my info from home builders and realtors I contract to, and silly websites like the nahb.org, realtor.com and the White House press site. I know, stupid of me to read these things the last few years.
Is it "news" when liberals members of the MSM fantasize about what they "wish would happen? Really, even when the fantasy doesn't come true year after year after year?
Only the intellectually dishonest ones.
Rising home sales is not necessarily a good thing. The markets reacted negativly to the news because it brings on the worry that the FED will continue its 'accomadative' tightening policy...
The US Dollar jumped in strength on the news also...which is also not that good, because it putss further upward pressure on the trade deficit...
The bond market sold the news...raising effective yields...
Some things seem to be one thing when they are indeed another...dig a little deeper and look at how the markets react to it...
It is not "just" the MSM that has been saying that the housing market is primed for a fall....it is EVERY SOURCE.
The Fed has said that housing is overheated, and has been trying to prick the bubble and create a soft landing.
The NAR, the industry pumpers, have been saying that housing is going to slow this year.
The homebuilders have all been saying that this year is going to be much slower.
So when I see a headline like this, I don't jump on it like the first poster did, but look deeper into the numbers (just as the Fed and industry will)...because the numbers are contrary to logical expectation, and it is important to know if it is just an anomoly (as most believe), or if there are other market forces at work that were unforseen.
I didn't forget anything. Beaversmom had a question about the facts of current foreclosure rates compared to years past. I posted the factual portion of the article pertaining to her question. I didn't change the subject to include dire, negative predictions regarding future mortgage defaults in a lame attempt to bury good news.
Thanks.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.