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Housing Market

Case Shiller

What Today's Case-Shiller Home Price Index Doesn't Show You About the Housing Market

The S&P/Case-Shiller Home Price Index, a widely followed benchmark for home prices, showed a slow growth in home prices amid an unimpressive housing recovery.

But given the factors underlying this recovery, and the activity in the housing market, this should come as no surprise.

Here's why this housing recovery just can’t seem to take off…

Housing Market

The New Way the Government Is Poisoning the American Dream

Private equity shops and institutional players are buying and packaging nonperforming mortgages from the Federal Housing Administration (FHA) and selling those mortgages to mutual funds and themselves.

On the surface, the HUD wants to minimize the cost to taxpayers. That's really nice of HUD and the FHA, thinking about us taxpayers.

But something else is behind this recent action, and it's poisoning the American Dream...

Housing Market

Don't Let May's Surge in the U.S. Pending Home Sales Index Fool You

Yesterday (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co."to talk about the record-breaking U.S. Pending Home Sales Index numbers that were released the same day. According to the National Association of Realtors (NAR), its U.S. Pending Home Sales (PHS) Index increased 6.1% in May to 103.9.

Despite the jump, Fitz-Gerald disagreed with the notion that the housing market is coming back – and he's got the numbers to back it up…

Read More…

Housing Market

Why We're Making These Housing Market Trades Now

Get ready. There's more trouble ahead for home buyers, home builders, and especially homeowners who took out home-equity lines of credit (HELOCs) before the housing crisis.

What's already started to happen might not only knock out the formerly aspiring but now petering-out market recovery, but also might knock the already weak economy to the ground.

That’s why we’re making these housing market trades now...

Housing Market

Let's Make the Mortgage Due for Fannie Mae and Freddie Mac

You can call it a bailout, a rakeover – I mean, takeover – or socialism for cash.

But, whatever you call it, it's not going to last.

The $187.5 billion bailout of Fannie Mae and Freddie Mac back in 2008 was absolutely necessary.

But here's why it's time for the government to get out of the mortgage business for good...

Top News

What Today's Housing Market Numbers Really Mean

Today's mixed numbers from the Case-Shiller price index have some prognosticators wondering if the housing market has plateaued.

U.S. home prices posted their largest annual gain since 2005 and increased 11.3% in Q4 compared to the previous year. However, growth slowed toward the end of the year, particularly in December.

To continue reading, please click here…

Read More…

Housing market

This Echo of the Housing Market Bubble Is About to Triple Loan Payments

The housing market bubble isn't over, after all.

Thousands of home equity loans made in the peak years of the housing bubble are just starting to reach their 10th birthday, which for many borrowers will bring very bad news.

You see, most home equity loans are interest-only for the first 10 years. But after that, the borrower must start paying down the principal, which can cause their monthly payments to triple or more.

This 'wave of disaster' is just getting started...

Stock Market

The Five Biggest Asset Bubbles in History

Between the stock market, bitcoin, and tech IPOs, today everyone seems in a race to spot the next biggest asset bubbles readying to pop.

The term "asset bubble" indicates that there is a marked, noticeable divergence between the market price of an asset and its fundamental value. In other words, something that people store value in – a coin, a house, a share of stock – is valued much, much higher than the thing itself could possibly be worth.

Bubbles usually end with crashes: double- or triple-digit percentage losses in the price of the inflated asset over a very short time.

To continue reading, please click here...

Housing Market

New Rental Securitization Deal Likely Heralds Double Dip in Housing

Today, in New York, investors will be pitched the first-ever REO-to-rental securitization deal. The $500 million deal bundles foreclosed single-family homes, "real-estate-owned" by Blackstone Group, into securities that pass-through rental payments to investors.

The new securitization of rental properties comes at a time when home prices have rebounded dramatically across the country. But rather than confirming a bull market in housing, the "trade," as Reuters calls the transaction, likely heralds a coming double-dip.

The upward trajectory of housing prices, fueled by private equity companies and hedge funds' cash purchases, now faces institutional liquidity demands – and their potential exit.

Here's what the Blackstone deal is all about, why its structure is problematic, how the ratings agencies will view it, and what it portends for the future.

This is a very big deal...

Housing Market

The All-American "Short Squeeze" No One Else Sees

Everyone knows the U.S. housing "recovery" has been resurrected on slippery ground. But now that we're finally about to slip – big time – no one sees it coming…

Then again, how could they?

The numbers are incredibly misleading…

According to the Commerce Department, new residential home sales in July fell a whopping 13.4% from their June sales pace. And sales in April, May, and June were all revised significantly lower.

Yet according to the National Association of Realtors, existing home sales (completed transactions that include single-family homes, townhomes, condominiums, and co-ops) increased 6.5%… to a seasonally adjusted annual rate of 5.39 million in July, from a downwardly revised 5.06 million in June.

On the surface, the divergence is confusing. But not when you look below the surface, where the real money gets made.

As you'll see (before anyone else), the housing "recovery" is just one giant "short squeeze."

And you can make a flat-out killing the moment it ends…