Re: Mortgage Lending standards
back2basicz
6/30/2011 9:21:01 PM
Predictable,
I agree entirely.
Banks are today trying very,very hard to raise their Capital Adequacy ratios(as well as the quality of their Capital).
They would rather have a High Quality Income Producing Asset on their Balance sheet today than offload it off to someone else who can reap the benefits.
Your friend(and many similar Mortgage holders) fall in this category and have become Must Haves/Keeps for the entire Banking Industry.
Be prepared to see a massive fight to retain these borrowers.Customer is King is Back and Back bigtime!!!
Regards
Ashish.
Re: More Like a Silverplate Lining
back2basicz
6/30/2011 9:08:11 PM
John,
Do you accept the fact,that Housing is not(& cannot) be considered a Growth industry in America anymore?
We should no longer keep any expectations of Growth from the Housing Sector[Any Growth we see is a massive bonus].
The days of seeing an economic multiplier effect from Housing are over[Someone buys a House then spends tons and tons of money at HomeDepot,etc renovating and refurbishing it];thereby directly contributing to Consumer Spending?
Regards
Ashish.
Good news?
tokyogai
6/30/2011 9:01:24 PM
I wonder if this is just another blip as we still have a lot of distressed inventory to get rid of. Ask anyone trying to sell a house- pricing is terrible and it is hard to get a buyer qualified. I fear we have a long hard road before we see real light.
The Oil story is incomplete....
back2basicz
6/30/2011 8:46:58 PM
John,
Pundits/Economists/Analysts need to stop betting on Falling crude as a driver for housing demand.
Here's why
http://www.investoruprising.com/messages.asp?piddl_msgthreadid=239542&piddl_msgid=408442#msg_408442
If you do take into account the fact that Crude Oil is (and will keep rising) because of Falling Supply as well as a falling Currency(in which it is valued-the US Dollar);then it becomes more and more difficult for Housing to sustain this uptrend.In fact it becomes little more than bouncing off the bottom.
Its a well known fact that every single cent of rise in Gasoline prices wipes Billions of Dollars off Consumer Spending.Housing has to be looked at as Consumer Spending only here.
Regards
Ashish.
Re: More Like a Silverplate Lining
John Jordan
6/30/2011 5:04:04 PM
For another blog, but the commercial market, while struggling in some sectors, is not struggling nearly as much as the residential market.
Re: More Like a Silverplate Lining
Scott
6/30/2011 4:32:57 PM
Hm. Turns out if you practically give your house away, you CAN sell it. Take that, you bad news bears!
Re: More Like a Silverplate Lining
erierunner
6/30/2011 3:43:38 PM
What are your thoughts on the commercial market? I feel we haven't even seen the total collapse yet there and that it is well behind the residential market. Even if we are climbing out of the hole a bit, are we going to get hit again with the commercial collapse?
Re: More Like a Silverplate Lining
erierunner
6/30/2011 3:41:03 PM
I completely agree with you. I do think that this is what "normal" should have looked like for years. Overinflated housing prices, bad deals for people who couldn't afford them, building unneccesary housing developments, and so on led to all of this. I often wonder if the collapse was such a bad thing after all, maybe it was the harsh correction we needed to put things the way they sould be.
Yeah, very long term. but it might be worth it for some people.
Right now is a good time to get mortgage, you just need to make sure your credit history is clear of pretty much anything.
Re: Low but good
mInvestor
6/30/2011 2:22:41 PM
I agree with your thought. If people prepare to keep that house for a decade, it's time for them to buy in now (if they can get mortgage). Talking about long term investment.
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