Real Estate Blog - NEWS FLASH ! ! ! ! UNEMPLOYMENT AND JUMBO LOANS STATS BODE ILL FOR THE FUTURE OF HOUSING!

Home : Blogs : Lenn Harley, Real Estate Broker, Maryland & Virginia : Lenn Harley, Broker, Homefinders.com in Maryland and Virginia

NEWS FLASH ! ! ! ! UNEMPLOYMENT AND JUMBO LOANS STATS BODE ILL FOR THE FUTURE OF HOUSING!

NEWS FLASH ! ! ! !

UNEMPLOYMENT FIGURES FOR OCTOBER JUST ANNOUNCED. . . . . . drum roll please. . . . . . .

10.2%

'Nuff said.

What's the nexus between the just announced unemployment rate for October of 10.2% and Jumbo Loan Defaults?

Why do Jumbo loans default?

BECAUSE THE HOME OWNER LOST THEIR JOB!

1 in 10 Americans are unemployed. So says the Department of Labor. Dollars to donuts it's more. They don't count a lot of folks, like real estate agents with no business.

1 in 5 families has a family member who is unemployed.

Bummer.

Courtesy of "Hard Core Real Estate Talk".

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 11/06/2009 07:43 AM

Comments (20)

Mortgage Mess in the ActiveRain Channel

mortgage mess

Post is included in group: The Ninety-ninth Percentile
Post is included in group: Real Estate Trends
Post is included in group: Club Chaos
Post is included in group: AR Twitter Users

20 Comments on NEWS FLASH ! ! ! ! UNEMPLOYMENT AND JUMBO LOANS STATS BODE ILL FOR THE FUTURE OF HOUSING!

NOV

Yep, Lenn, they have to be secure in their jobs to want to MOVE! Then they have to be able to sell and pay off their mortgage to want to MOVE.

"Jobs" is the core issue.

Sarah in Nashville

Lenn - Unemployment will be the issue to deal with in 2010. In California we would love to see the number back down to 10%!

Lenn....this is all very terrifying....I can remember selling real estate when interest rates were at a high of 21% for two weeks....we financed buyers via 40 year negative amortization mortgages.....they refinanced when the market settled....

this is a mess with no way out....we're deep into this government intervention mode with no light at the end of the tunnel.

Things do not bode well with the holidays coming. If the economy was better then seasonal work would help but spending will be down! Bummer...

Lenn,

It's even higher than that in my area for unemployment.

Not looking good.

Those that have jobs are trying to hang on to them and are cautious about buying.

Yesterday I attended a luncheon that featured Dr. Gerald J. Swanson (economics) as the speaker - one of his points was that our state & local governments are still going to face continued budget problems resulting from a loss of tax revenues (45 out of 50 states have a budget deficit).

I foresee the biggest campaign slogan of 2010: "Its About Jobs, Stupid!"

Sure glad we passed that huge Stimulus package or we're going to be going over 8% unemployment!

Kent, it's not a problem, just follow California and add a 10% surtax on incomes...that should solve the problem, right?

Lenn - you are on a roll today! Not only are we at over 10% unemployment but underemployment is over 17%, so over 1/6 of our work force is un/under employed. And this is not going to clear up for a long time. There is a good chance that it can go to between 10.5% - 11% before it peaks, and stay there for some time.

But don't worry, the stimulus is protecting government jobs, and cap n tax and health care reform will create more.

Sarah. Of course, of course.

Norma. Isn't it awful. The "breadbasket of America with more than 10% unemployment.

Barbara. Right you are. I recall the negative am too. I used the Great Western 40 year am. They weren't so bad.

Gary. Bummer is right. Some times things are just so awful that it's all one can say.

Judi. Same in many places.

Kent. You are a thinking man. I agree. They will all claim that what they want to do to spend our money is about jobs, real or imagined as in "job created or saved". GEEZ. How stupid do they believe we are?

Ron. The stimulus stimulated one thing and one thing only, the massive growth of government.

Mike. Good insight. I agree completely.

I used Great Western also plus Ahmonson(sp?) Mortgage in California....Lenn, those were the good old days.....I miss the way we did business, at that time!!!

Barbara. Of course, I used Ahmonson too but had a wonderful loan officer with GW.

Good old days, simpler times. One thing for sure, if folks didn't qualify, they didn't get financing.

Yes, Lenn....and I can remember doing the qualifying myself before I went out to beat the pavement with the buyers.....I made sure they were within the proper ratios and I had all of their financial information.....I did this MYSELF.....I did not rely on anyone in the mortgage business to say they were qualified....no wonder this industry is in the shape it's in !!!!! they throw it up against the walll and if it's sticky it sticks and if not it falls....don't get me started!!!

Lenn ----- Like Barbara, I remember the 21% interest rate days ---Today's situation is so much worse.

Lenn - We're now 15% plus in Nevada and were just christened with "US most stressed economy" crown courtesy of Washington.

Not that it matters...

Liz. Those were tough times but we survived. In fact, that's when I started selling new homes to first time home buyers. No one with a home to sell could. It was 1995 before they started having any equity.

Christianne. It matter. It matters a lot.

That number also does not include those who have just given up looking for work and have lost their unemployment benefits. Or those "under" employeed people who have had their hours cut back so much they can not afford their payments anymore either. I see much worse before I see any light or even the tunnel for that matter.

Lenn - You're right, 10.2% is about half the real number. BLS admits to 17.5% with the U-6, but the true number when you factor in self employed is above 20%. Much as the government tries to make us believe things are improving, we can't turn around the economy on borrowed money.

Each month more than 125,000 new workers enter the job market, and we already have more than 15 million unemployed. Once we begin to actually add jobs instead of losing them, it will take years to overcome such a jobs deficit and return the numbers back to "normal."

Scary stuff. That explains why the phones are not ringing off the hook even with historic low rates.

Hi Lenn... I saw a report on one of the news channels today that said our unemployment rate was 17% when you factor in people who had previously had full time jobs and now were only working part time or in temporary positions.

NOV

Tammy. So do I for so many reasons.

John. Years and years.

Jim. Low rates don't mean beans to folks without job security.

Steve. I believe it.

This blog does not allow anonymous comments