NAR's Faustian Moment
Marinite brought up in a comment that today being 6/06/06 ...if ever there was a Faustian moment in the making, today is the day.
Personally, speak the devil's name and you give him power and I believe in no such supernatural force. The closest thing to something bedeviled I can think of is oh... a talking head for NAR.
Speaking of Faustian moments... Did y'all hear that NAR is begging the Fed to stop raising rates because of housing market vulnerability?
“The National Association of Realtors on Tuesday lowered its forecast for U.S. home sales in 2006 and called on the Federal Reserve to stop raising interest rates because parts of the housing market are ‘vulnerable.’”
bwahaahhahahaha!!! But I thought there WAS no bubble? I thought we heard the gains in the last 5 years were justifiable because they aren't making any more land, and there is simply not enough housing to meet demand, and everyone wants to live here? And everyone who took out a suicide loan, or lifetime indentured servitude loan, or heaven forbid the negative amortizing take it in the butt loan were fully qualfied and will have no problem making their payments? The lenders researched this! How can there be vulnerability?
“‘Experiencing a slowing from a hot market is a good thing because we need a solid housing sector to provide an underlying base to the economy, and slower appreciation will help to preserve long-term affordability,’ said David Lereah, the group’s chief economist.”
“‘But this is a time for the Fed to pause on rate hikes because we have some interest-sensitive housing markets that have become vulnerable,’ he said.”
But according to that Coldwell Banker Asshat...Rates are still at an all time low. Rates haven't been this low since Kennedy was in the White House. That's what he said. He has been in the business for 25 years. He has researched this!
Why would NAR want to hit the interest rate panic button?
I mean back in the day... in the 80's people had 15% & 18% interest rates. Sheesh... we aren't even anywhere near those numbers for those with qualifying income and good credit. What's the big deal? (insert snide laughter here)
Oh my stars!!!... What's this?... Have prices risen to unsustainable levels? Are they in danger of plummeting because there is no sustainable market that can keep these artifically, specuvestor inflated prices propped up? Good heavens!!! What will become of the realtors?
"The U.S. housing market has been steadily cooling down after a five-year run that shattered sales and construction records. (this is what we call an asset bubble my friends) The market began to slow last year as mortgage rates started to climb."
“‘Historically, home prices rise 1.5 to 2 percentage points faster than the rate of inflation, so the rise we anticipate in existing home prices this year is actually a little above the high end of historic norms,’ Lereah said.”
But here in Sonoma County, housing prices DOUBLED in 5 years time. That certainly is not 1.5% to 2% above inflation.
So the real issue is that many in the real estate, mortgage lending and construction industries are in danger of being out of work if they can't keep selling overpriced chitboxes to the terminally indebted who no longer even want to own a house or ever pay off a mortgage, but just want the pleasure of renting from the bank indefinitely!