Replies to post #40141 on Your Economy (No Politics) (YE1)

[EarlyOne]

Given the current job market (about 600,000 jobs lost per week), IMHO, there will be a lot more mortgage defaults as the jobless run through there unemployment benefits and savings (if any). This could get a lot worse.

Remember the FED is artificially holding interest rates down even though market forces are tending towards higher rates. Digital money costs the FED nothing to create, but how long will the world tolerating digital printing of money.

All IMHO,
Mike

[MisterEC]

You can refinance IF the value of your home is high enough. Since many places are still upside down, you can not refinance. Buying a new place, a foreclosed home, then you get the artificial low rates in place.

My conclusion is the foreclosure problem is stalled out a bit, and very much still with us. Now the graph I post I have seen lots of places, but I do not know if it is accurate.

[dickmilde]

I met with an attorney yesterday
and we had a discussion on real estate and mortgages...

His adjustable rate mortgage ( ARM ) just reset and his rate went DOWN from 5.5% to 3.55%.

So this huge refi bubble graph that keeps floating around the internet really needs to be taken in proper context... An ARM that resets doesn't necessarily mean that the next step is foreclosure.

Dick Milde