The Upcoming Housing Boom

Would it change you mind if you knew the HBs and banks were reporting the interest accrued but not paid on neg-am and intro teaser rate mortgages as if they were income? Would it change your mind if you learned that the land value on the books at the HBs are carried at the value of the highest price paid and not the purchase price? When HBs write their own mortgages and the product isn't selling and you are trying anything to not publicaly lower the price is it any surprise they trim mortgage rates? You may be surprised that the banks -report- higher earnings and the books at the HBs -look0 strong but once you know the details...
 

This comment has been removed by a blog administrator.
 

of course these things matter. post the real numbers and stop babblig about your feelings
 

Post real numbers? You asked in a previous post why banks are reporting increased earnings. I explained part of their improved performance. you clearly didn't know about cureent income practices. You wonder out loud why mortgage rates are declining so I explained part of that. again you didn't have all the data so I was happy to expand your knowledge. Then finally since you didn't know how the HBs are recording assets, particularly land values and you didn't know about some of them having significant mortgage exposure, I explained how those are keeping their reported earnings high even as their fundamentals are being crushed. I guess if you want to call those "my feelings" then fine, it is your blog. FAct is I know the whys and specific details of some of the phenomena that mystify you so IMO if there's anyone running economic analysis on feelings it isn't me.
 

Post whatever you want here. I would like to see more than the question marks though. If you have some specifs, go for it.

For whatever it is worth. The Mortgage rates average is from the banks. It was declining with the Treasury rate. When the American savings rate was reported at the lowest level since the 30's it shot up.

I have a link in the side bar for mortgage rates historical chart.
 

getstucco,

I agree with your belief that the market is over priced. If autos were thiss over priced I'd buy stock in General Motors.

How low do you think home prices can go and TOL Brothers still rakes in the money?
 

If autos were this over priced I'd buy stock in General Motors.

Huh? Sales are down costs are up. Long term obligations are increasing. Am i talking about houses or autos? Both. Selling a high priced, uncompetitive, high production cost item with high carrying costs is not a model for either industry.