For those that say we are out of this housing crisis I'd really like to hear what makes a person think so...
Here is why I feel we have a long road ahead of us still:
1.) In May the "private business" sector added 13,000 across 50 states. That is 260 private sector jobs per state.
2.) The number of applications for mortgages to purchase homes continued to decrease last week (6-21-12 thru 6-25-10), down 3.3 percent compared to the previous week on an adjusted basis, according to the Mortgage Bankers Association weekly survey. On an unadjusted basis, the purchase index declined 3.8 percent and was down 36 percent from the same week a year ago. This was the seventh out of eight weeks purchase applications have declined, keeping the purchase index at 13-year lows.
3.) The number of pending home sales for May 2010 was down 43% from one year ago.
4.) With the massive government spending, interest rates are going to have to start going back up again. The spending is unstainable.
Lastly, this is something heard very little about. 1 in 6 homeowners is currently behind on their mortgage in the US. The GDP has risen 2.7%, a corrected figure after was originally reported at 3.3%.
What happens once the homeowners who are no longer paying a mortgage, and spending the money at the mall, have to pay rent or a mortgage again? Are we really experiencing economic growth? What is going to happen to consumer spending and growth.
I am concerned about where we are headed and have a heard time believing those who say we are through this recession and down real estate market.
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