Found in my feed reader the past two days…
Pending sales slows, from the NYT:
The National Association of Realtors said that its index of pending home sales plunged to 96 from a revised level of 114.3 in October. Analysts had predicted a drop, but nothing like that.
“We thought it would drop 2 percent,” said Jennifer Lee of BMO Capital Markets. “When you see 16 percent, the first thing you say is, what the heck happened here?”
Since the majority of pending sales become final in six weeks to two months, the index is considered a reliable indicator of where the market is headed. The index is calculated by comparing the number of pending sales with the level of 2001, when the index was formulated.
Lets take a quick look at the 16% drop, remember when that tax credit was suppose to end? Yeah, here as well. Buyers made a lot of offers leading up to November, mainly in October and September ensuring that the property was closed by November 30 per the original housing credit. The next few months will be interesting, housing slows dramatically over the winter months.
WTF is going on here, NY Times says walk away from your mortgage:
Such voluntary defaults are a new phenomenon. Time was, Americans would do anything to pay their mortgage — forgo a new car or a vacation, even put a younger family member to work. But the housing collapse left 10.7 million families owing more than their homes are worth. So some of them are making a calculated decision to hang onto their money and let their homes go. Is this irresponsible?
Some valid arguments from both sides, but it comes down to who put pen to paper.I remember calling last week that ’strategic defaults’ would rule 2010.
Conflicting data from Washington Post:
Orders at American factories increased in November by more than analysts had expected, the latest evidence that the manufacturing recovery is accelerating. The industrial sector has been ramping up production since July as demand for all sorts of goods has revived and companies have had to crank up assembly lines to replace depleted inventories.
But pending home sales plummeted in November, suggesting the housing sector could weaken as the impact of government policies to support the industry fades. Although housing data are notoriously volatile, the new figures raise the possibility that the sector — where the economic downturn of the past two years started — could have further to fall.
Buckle up for 2010 and will leave it at that.
Been saying this for awhile now, but CNN says it’s your last chance to refi at rates under 5%:
A big reason for the jump is that a government program that has kept rates very low is winding to a close. The Federal Reserve has been purchasing mortgage-backed securities since early 2009, scooping up as much as $1.25 trillion worth. That has dampened rate increases by providing a ready market for the securities.
Personally would rather have a fixed low rate than anything else, but some free money (aka tax credit) is always nice.
There, all the bad in one place.
