Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion
• CNBC.comAccording to the Congressional Budget Office, the losses could balloon to $400 billion. And if housing prices fall further, the cost to the taxpayer could hit as much as $1 trillion.
Contents Pages by Subject
Housing
Oil Spill Will Bring More Pain To Troubled Florida Homeowners
• Businessinsider.com/On an aggregate basis, 81% of all loans in the state are ‘underwater’, and the average mark-to-market loan-to-value ratio of Florida loans is 138%. ‘Nearly 40% of all Florida borrowers owe more than 150% of the value of their homes,’ said Slump.
Housing Market Hell: 14 Reasons To Fear The Ongoing Bubble
• Businessinsider.com/Fourteen percent of borrowers are 30-days late or worse. The cure rate at 60-days late is almost zero. What's French for Armageddon?
Meredith Whitney: "No Doubt We Have Entered A Double-Dip For Housing" (VIDEO)
• ZeroHedge.comState economies are plunging, and are $200 billion underwater, will lead to 2 million in state-level layoffs leading to a low-end impact; raising taxes at state level will impact the top-end Retail sales have been stronger due to consumers not payin
Cost of Seizing Fannie and Freddie Surges for Taxpayers
• NYtimes.com/“We’re all working for the government now,” said Mr. Bridwell on a recent sun-baked morning, steering a Hummer through subdivisions laid out like circuit boards on the desert floor.
Demographic Hell: Housing will remain stagnate from 2010 to 2020
• MyBudget360.comMiddle class young family is also delaying on having children so the necessity for a bigger home is also being pushed out. This demographic shift is happening at the same time that baby boomers start entering retirement age and will want to downsize
China Could Dump Its Massive Fannie And Freddie Holdings
• Businessinsider.com/Who is the largest foreign holder of mortgage bonds from Fannie Mae and Freddie Mac? China. The nation owns $300 - $400 billion worth, which comes to nearly 20% of China's official currency reserves according to unofficial estimates via China Daily
Oil May Be the Nail in Florida Housing's Coffin
• CNBC.comWhat strikes me, though, in driving around here for the last few days is not the growing fear among the locals, but the sheer number of "For Sale" signs down the beach. They're literally almost every third house.
12 Cities Where Home Sellers Are Being Forced To Cut Prices Like Mad
• Businessinsider.com/Phoenix, Arizona: June 1st, 2009: 26% of homes had a price reduction. June 1st, 2010: 33% of homes had a price reduction
Fannie and Freddie: The Potential Exists For Catastrophic Losses
• TheAutomaticEarth.blogspot.comMy forecast for a real estate prices is for a decline of 90% on average, albeit with considerable local variation. For those who think this is not possible, you might want to look at what you can buy a house for right now in Detroit.
12 Very Ugly Charts On The State Of The Housing Market
• Businessinsider.com/A housing has to be considered one of the biggest pre-requisites to a full-on economic recovery, given its still-oversized role in the economy, and the number of folks employed in the industry.
Accelerating Jumbo Mortgage Delinquencies Will Bash High-End Properties
• Businessinsider.com/Talk to Hannerle Moore, an agent at Michael Saunders & Co. She suggests a sobering strategy. Reduce prices at least 40 percent from 2005 highs.
Fannie And Freddie To Delist From The NYSE
• ZeroHedge.comThe two stocks that have been a perennial churn magnet for every liquidity-rebate collecting, and predatory HFT algorithm in existence, and on occasion have amounted to 20% of total market volume, have been halted...
Housing Starts Plummet 10 Percent In May
• CalculatedRiskBlog.comThe second graph shows total and single unit starts since 1968. This shows the huge collapse following the housing bubble, and that housing starts have mostly been moving sideways for over a year.
Child Homelessness in America
Stephen LendmanIt's growing because Washington ignores the problem
Fannie-Freddie Fix at $160 Billion With $1 Trillion Worst Case
• BloombergAn excellent summary of the disaster created by the federal government when it tried to turn millions of financially unqualified Americans into homeowners -- and why politicians don't have the stomach to stop this insanity in an election year.
NAHB Homebuilder Builder Confidence Declines Sharply In June
• CalculatedRiskBlog.comWe expected a temporary pull back in the builders’ outlook after the credit expired at the end of April. “However, the reduction in consumer activity may have been more dramatic than some builders had anticipated...
The Real Problem With Our Financial System Is The American Dream
• NYtimes.com/Her third proposal, however, was a shocker, taking dead aim at one of the most sacrosanct tenets of American politics: the lofty goal of homeownership.
Is bulldozing the best option for some boom-time housing?
• WashingtonPost.com/Some of the misconceived housing developments built during the boom years might have to be torn down because they don't make financial sense.
15 States Where Foreclosures Are Still Surging
• Businessinsider.com/Hawaii -- 34% up since March, 2010. One in 348 homes received foreclosure filings in April. It's much worse in Maui where one in 187 homeowners got the note. Statewide, they're up 116% since April 2009. Source: Realtytrac.com
IMF Economist: Real Estate Headed Much Lower
• EconomicPolicyJournal.comLoungani said his analysis of prices and rents in U.S. metro areas suggests that many markets on the West coast and in parts of the Northeast could yet see prices plummet a further 30%-40%.
Mark Hanson: Housings Shadow Inventory May Take 8 Years to Clear
• mhanson.com/blogIt will take 42 months to clear the portion of the 8 million loans presently in the distressed pipeline that will ultimately be liquidated. If Foreclosures remain at April’s record high of 92.5k, it will take 101 months.
Federal Homebuyer Tax Credit Gone: New Home Sales Plummet
• Bloomberg.comIn Phoenix, contracts in the subdivisions surveyed by Metrostudy fell almost 49 percent for the week ended May 24 from the same period a year earlier, Hunter said. More than 8 percent of Phoenix households received a notice of default, auction or...
ASU Housing Cheerleader: High-end Valley homes stabilizing
• AZcentral.comA number of recent reports suggest home prices across the country could be headed for a double-dip. But ASU professor Karl Guntermann offers some good news in the meantime for owners of higher-priced homes in metro Phoenix.
Falling home prices stir fears of a new bottom
• AZcentral.comThe numbers are especially disturbing because they show that improved sales due to the tax credits didn't translate into higher prices, said David M. Blitzer, chairman of the S&P index committee.
Phoenix Housing Propagandists Create New Index: Prices to rise this summer
• AZcentral.comPhoenix-area home prices will climb slightly in June, take a small dip in July and then start to climb again in late August.
MBA: Mortgage Purchase Applications at 13 Year Low
• CalculatedRiskBlog.comThere was a spike in purchase applications in April, followed by a decline to a 13 year low last week. "The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season."
Demographic Hell Awaits Housings True Believers
• Businessinsider.com/There are 80 million baby boomers retiring at the rate of 10,000 a day. Assuming that they downsize over time from an average 2,500 sq ft. home to a 1,000 sq. ft. condo, and eventually to a 100 sq. ft. assisted living facility, the total shrinkage...
Defaults and Housing Prices: A Radical Loss In Value May Still Lie Ahead
• Businessinsider.com/What is wild is considering what will happen to real estate prices should mortgage failure gain greater momentum. Serious delinquencies are 30% greater today than a year ago.
Mortgage Delinquencies by Period and by State
• CalculatedRiskBlog.comBrinkmann argued the foreclosure crisis is now being driven by economic problems as opposed to the bursting of the housing price bubble - and this is showing up in prime loans and all states.
