People Can’t Afford Their Houses Anymore
MORTGAGE DEFAULTS REACH RECORD HIGH
FITSNews – March 6, 2008 – In the latest sign that our national economy pretty much blows at the moment, mortgage defaults reached an all-time high today. At least that’s according to the Mortgage Bankers Association of America, who may be a bunch of lying bastards for all we know. Assuming they’re not, though, here’s the bad news courtesy of the NYT:
The Mortgage Bankers Association reported Thursday that the number of loans past due or in foreclosure jumped to 7.9 percent, from 7.3 percent at the end of September and 6.1 percent in December 2006. Before the third quarter, the rate had never risen past 7 percent since the survey began in 1979.
In totally unrelated news, we can’t get Elton John’s “Guess That’s Why They Call It The Blues” out of our head right now. Seriously. We’ve tried everything we know to do short of a lobotomy, but there it is.
UPDATE – Thank you, Hinder. Your song “Get Stoned” has finally gotten rid of our Elton problem. Well, that or we’re actually stoned right now. :)
UPDATE FROM 007 – Our friend James Bond actually has some really good news for South Carolina as it relates to this issue over on his Real Estate blog. Nice work, 007.
Comments
By home builder on March 6th, 2008 at 3:25 pm
While the rest of the country may be in the tank, South Carolina is in better shape, although perhaps not in great shape. Foreclosures are actually down in South Carolina. While the coastal market is not performing well, the midlands and upstate real estate markets are only down slightly from what were historic highs.
By Newman on March 6th, 2008 at 3:32 pm
Sic, the old standby to replace an unwanted song in the head is to start humming the guitar part to “Kashmir” by Led Zeppelin. Of course, then you have “Kashmir” in your head, but it might be better than whatever was rattling in there before.
By Monkeydarts on March 7th, 2008 at 9:13 am
Less than 1% of home loan mortgages are in foreclosure.
Only about 4% of borrowers have missed a payment.
The banking poobahs want lower interest rates to bail them out but doing so means putting more money in the system. More money in the system, by definition, creates inflation.
The long term problem will NOT be deadbeat loans (unless government steps in to further save the defaulters), it will be roaring inflation. I lived through the Nixon/ Ford/ Carter inflation years and do not desire a return. The remedy is tighter money and lower tax rates, not WIN buttons. Unfortunately, the horizon shows looser money from a FED listening to the big banks and dramatically higher tax rates with the Dems moving into full control. Throw in a little protectionist trade policy and, voila– deep recession. Worldwide turmoil. Trade wars often turn into shooting wars btw.
The good news? It doesn’t have to happen.