Losers from the housing bust portrayed themselves as victims and heros
Losers from the housing bust portrayed themselves as victims and heros The housing bust twisted people’s point of view so much that deadbeats who gamed the system for personal gain were lionized for...
View ArticleLA County 9% overvalued due to rising mortgage rates
LA County 9% overvalued due to rising mortgage rates Today’s Best-Execution Rates: 30YR FIXED – 4.25% FHA/VA – 3.75-4.25% 15 YEAR FIXED – 3.5-3.625% 5 YEAR ARMS – 2.75 – 3.25% depending on the lender...
View ArticleHELOC Abuse and Pascal’s Wager
HELOC Abuse and Pascal’s Wager Recent reports show an uptick in mortgage equity withdrawal. Is this history repeating itself, or did people learn the wrong lessons from the housing bust? Money won’t...
View ArticleNorth County San Diego Beach Housing Report: April 2017
North County San Diego Beach Housing Report: April 2017 San Diego Housing Market Value & Trends Update Historically, properties in this market sell at a 14.2% premium. Today’s discount is 0.5%....
View ArticleMortgages must amortize to prevent housing bubbles
Mortgages must amortize to prevent housing bubbles If Dodd-Frank were repealed as Republicans want, the end result would likely be another housing bubble. Financing terms largely determine the...
View ArticleWhat distinguishes homeowners from renters? Hint: It’s not what you think
What distinguishes homeowners from renters? Hint: It’s not what you think What separates homeowners from people who don’t own homes? The answer is not as simple as you might think. If you go back to...
View ArticleA generation of move-up buyers is missing
A generation of move-up buyers is missing The housing bubble pulled forward a generation of buyers; the housing bust cost these buyers their homes and their good credit, removing many of them...
View ArticleWill you pay for your neighbor’s reckless borrowing and spending?
Will you pay for your neighbor's reckless borrowing and spending? When borrowers and lenders petition the government for relief through debt forgiveness and bailouts for losses, you are the one paying...
View ArticleHousing recovered because lenders stopped foreclosing on delinquent borrowers
Housing recovered because lenders stopped foreclosing on delinquent borrowers Many people erroneously believe housing recovered because lenders ran out of delinquent borrowers to foreclose on. They...
View ArticleFoolish beliefs about family homes as investments fueled the housing mania
Foolish beliefs about family homes as investments fueled the housing mania The more certain people become that real estate prices can only rise, the most likely they are to make a foolish emotional...
View ArticleLarge down payments stabilize the housing market
Large down payments stabilize the housing market Large down payments shut many borrowers out of the housing market — many unreliable ones — which is why large down payments make housing so stable....
View ArticleWhy did lenders modify so many loans during the housing bust?
Why did lenders modify so many loans during the housing bust? Unilaterally modifying home mortgages was a necessary step to ensure banks survived the housing bust. Ostensibly, homeowners and lenders...
View ArticleThe real reason MLS inventory is so low
The real reason MLS inventory is so low Many housing analysts suggest the lack of inventory is because potential sellers are concerned they can’t find another home to buy. This is a red herring. The...
View ArticleMortgage debt-to-income ratios determine how much potential homebuyers can...
Mortgage debt-to-income ratios determine how much potential homebuyers can borrow Anyone considering buying a house needs to understand debt-to-income ratios because these measures of a borrower’s...
View ArticleHousing bailouts and false hopes
Housing bailouts and false hopes Government programs ostensibly designed to benefit homeowners were really intended to bail out the banks. In April of 2008, I wrote a post about the psychology behind...
View ArticleWill investor sales limit future home price appreciation?
Will investor sales limit future home price appreciation? At some point, the investors who bought distressed properties from 2009 through 2014 will want to liquidate their holdings. Will those sales...
View ArticleExisting home sales are still below normal
Existing home sales are still below normal Back in 2013, I predicted that existing home sales would remain low for the foreseeable future. That prediction proved to be correct.
View ArticleHow does housing benefit when the federal reserve prints money?
How does housing benefit when the federal reserve prints money? When the federal reserve prints money to buy mortgage-backed securities, it lowers mortgage rates and allows potential buyers to borrow...
View ArticleThe next housing bust will see small price drops and large volume declines
The next housing bust will see small price drops and large volume declines Since lenders will can-kick during future times of economic weakness, houses may not be affordable, bringing sales volumes...
View ArticleIs free money from home ownership the new American Dream?
Is free money from home ownership the new American Dream? The American Dream used to symbolize the rewards from hard work and sacrifice. During the housing mania, it became associated with conspicuous...
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