Housing Crash?: U.S. Existing Home Sales Fall By The Most In Six Years

Home For Sale - Public DomainWe just got more evidence that a major economic slowdown is underway here in the United States.  Existing home sales were down a whopping 7.1 percent during the month of February, and this represented the biggest decline that we have seen in six years.  This is yet another sign that we are in the early stages of a new crisis that is eerily reminiscent of what happened back in 2008.  The truth is that most U.S. consumers are tapped out, and when you are tapped out it is really hard to get a mortgage.  Banks aren’t really fond of lending money to people that can’t pay it back, and in recent years housing prices in many areas have risen to levels that are beyond the reach of most middle class families. (Read More...)

If The American Dream Is To Own A Home, Then It Hasn’t Been In Worse Shape Since 1967

Home House For Sale Mortgage MortgagesThanks to the “Obama recovery”, the rate of homeownership in the United States has fallen to the lowest level in 48 years.  The percentage of Americans that own a home is widely considered to be a key indicator of the health of the middle class, and we have just learned that during the second quarter of 2015 that number dropped from 63.7 percent to 63.4 percent.  It is now the lowest that it has been since 1967.  Unlike a lot of other government economic statistics, this one is fairly difficult to manipulate.  Either someone owns a home or they do not.  And what the homeownership rate is telling us is that the percentage of Americans that can qualify for a mortgage has been falling dramatically.  Just take a look at the following chart.  This is not just a decline – this is a complete and utter collapse… (Read More...)

The Last Housing Crash Is Not Even Over But Bernanke Is Already Setting The Stage For The Next One

Federal Reserve Chairman Ben Bernanke is determined to push mortgage rates to record low levels and he is encouraging the banks that the Fed regulates to make home loans more freely.  Wait a second – isn’t that exactly what caused the last housing bubble?  After 9/11, the Federal Reserve slashed interest rates and this caused mortgage rates to steadily fall.  Financial institutions were urged to help “expand home ownership” in America, and many of them started making home loans to people who never, ever should have gotten home loans.  When mortgage rates started to go back up, millions of families with adjustable rate mortgages discovered that they could not make their monthly payments.  Mortgage delinquencies absolutely soared and large numbers of mortgage-backed securities suddenly turned into garbage.  So what is the Fed doing about it?  The Fed recently announced another round of quantitative easing in which it will buy 40 billion dollars worth of these mortgage-backed securities a month.  Essentially the Fed is clearing the bad financial paper out of the system and is creating the conditions for another housing bubble.  But will we really fix our problems by going back and doing the same things that got us into trouble in the first place? (Read More...)

27 Amazing Statistics About The Real Estate Crash That Never Seems To End: More Foreclosures, More Underwater Mortgages And More Home Price Declines

The real estate crash that never seems to end appears to be getting even worse.  Home prices continue to go down, the number of underwater mortgages is soaring and the number of foreclosures set an all-time record in 2010.  The peak of the housing market was in 2005 and the subprime mortgage crisis erupted in 2008.  Shouldn’t things be getting better by now?  How many years is this real estate crash going to go on for?  Home builders and those that work in the construction industry are deeply suffering because new home sales continue to hover around record lows.  Mortgage professionals are having a really hard time because very few people are seeking home loans and many of those that are seeking loans cannot get approved.  Real estate agents all over the country are pulling their hair out in frustration and large numbers of them have left the industry completely.  The United States has never had such a prolonged real estate slump in the post-World War 2 era.  Unfortunately, there are a whole lot of indications that the real estate crash is going to get even worse. (Read More...)

20 Facts That Will Make You Really Mad If You Stop And Think About Them For A While

The more you read the news today the more likely you are to get really mad.  The world is becoming an incredibly crazy place, and at times the amount of bad news that is coming out can seem almost overwhelming.  Everywhere you look, the poor are being oppressed, our politicians are making stupid decisions and evil is on the march.  The America that so many of us grew up deeply loving is literally being ripped to shreds in a thousand different ways.  Unfortunately, those in power have not had any real answers for us in decades.  The Democrats don’t have any real answers, the Republicans don’t have any real answers and the Federal Reserve sure as heck does not have any real answers.  In fact, it seems like almost everything that our leaders actually do “accomplish” only makes things worse.  The vast majority of Americans are quite busy being entertained by “bread and circuses”, but meanwhile our country is literally falling apart. (Read More...)

Home Sales Drop Once Again

Existing home sales in the U.S. are down again.  New home sales in the U.S. are down again.  What else is new?  The U.S. housing industry just cannot seem to bounce back.  Mortgage lenders have really, really tightened up lending standards and so now there are a lot fewer qualified buyers than there used to be.  It is as if the big financial institutions have nearly shut off the flow of credit.  But without credit, the vast majority of American families don’t have a prayer of achieving the American Dream of owning a home.  Even with mortgage rates close to record lows the housing market is still languishing.  Unfortunately, it doesn’t matter how low mortgage rates are if American families can’t get home loans approved.  With unemployment still staggeringly high and with incomes still declining, it appears that the U.S. housing market is going to continue to suffer for some time to come. (Read More...)

16 New Records That The American Economy Has Set During The Past 12 Months – And They Are All Bad

Over the past twelve months, the U.S. economy has continued to come apart like a 20 dollar suit.  During that time it seems like more bad economic news has been coming out nearly every single day.  Instead of getting better, the problems facing the U.S. economy only seem to be multiplying.  The U.S. government and the U.S. financial system continue to absolutely drown in debt.  Factories, jobs and massive amounts of wealth continue to fly out of the United States every month at an astounding pace.  Meanwhile, the number of Americans enrolled in anti-poverty programs continues to shatter records and the U.S. housing industry continues to set records for futility.  The truth is that less Americans are living the American Dream today than were living it twelve months ago.  The U.S. economy is in a serious state of decline, and it is time for all of us to wake up and admit the truth. (Read More...)

Bank Of America, JPMorgan Chase And GMAC Suspend Foreclosures Due To Serious Concerns About Foreclosure Procedures

In an absolutely stunning development, Bank of America, JPMorgan Chase and GMAC Mortgage have all suspended foreclosures in many U.S. states due to serious concerns about foreclosure procedures.  There has been an absolutely massive tsunami of foreclosures in recent years and it turns out that mortgage company officials dealing with foreclosure paperwork have not always taken the time to process each foreclosure properly.  Things have gotten so bad that a number of U.S. states have actually opened up official investigations that are looking into some of these foreclosure practices.  But what did everyone expect?  There has been such a dramatic surge in foreclosures over the past several years that it was almost inevitable that shortcuts would start to be taken.  Back in 2005, there were only about 100,000 home repossessions in the United States.  Last year there were about 1 million home repossessions in the U.S. and RealtyTrac is projecting that there will be a record 1.2 million home repossessions this year.  Needless to say, this has created a paperwork headache for mortgage companies of unprecedented magnitude. (Read More...)

Banks Are Failing At A Record Pace, The FDIC Bank Problem List Continues To Grow And Most Americans Don’t Even Realize The U.S. Banking System Is Dying

In the mainstream media, all the talk is about how the “recession” is over.  But the truth is that our economic problems are far from over.  In fact, the U.S. banking system is dying.  U.S. banks continue to fail at a record pace.  The FDIC list of problem banks continues to grow at an alarming pace.  Loans and mortgages continue to go bad at an accelerating rate at banks across the United States.  The truth is that we are in deep, deep trouble, and the vast majority of the American people do not even realize it.  But the American people better wake up soon, because if the U.S. banking system dies, the American Dream is going to die along with it for tens of millions of Americans. (Read More...)