6/9 Mr. Mortgage – News Picks of the Day!

Posted on June 9th, 2008 in Mr Mortgage - News Picks of the Day!

April Pending Home Sales Rise – Bloomberg . There has to be something more to this story, such as the surge in foreclosures as part of the total sales. I will dig into it further. Values are falling, as REO’s selling for 20-60% lower than neighborhood comps are bringing down values across America. Also, April is the beginning of the spring selling season and March was bleak so perhaps these numbers are in-line. If you go back to last year’s number for a year-over-year even these ‘better’ numbers look terrible. I still will research.

CITI, Merrill, UBS Face Monoline Losses, Meredith Whitney Says – Bloomberg. Way to go Bill Ackman of Pershing Square and Meredith Whitney. Both of you were ridiculed for sticking to the truth and are now being proven right. In this story, I do think Whitney is going easy on the loss estimates, however.

SEC May Ban S&P, Moody’s and Fitch From Structured Finance Consulting – Bloomberg . HAHAHAHA. This one takes the cake. Now that they are running scared, they are actually making some great calls and many downgrades. You should have been looking at this 5-years ago, SEC. Geez.

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7 Responses to “6/9 Mr. Mortgage – News Picks of the Day!”

  1. with rising foreclosures and the previous months of declining home sales, this ‘uptick’ should be considered insignificant. by the end of summer prices will be headed down further.

  2. Just doing some research on Peak Oil, and came across this site—

    http://www.lifeaftertheoilcrash.net/

    If even HALF of the points made on it’s home page are true, I am scared shyttless right now, because it seems largely facts-based and conservative in its predictions.

    Would be interested to hear what some of you out there think!! Is this a big conspiracy theory, or is this world truly about to go MAD MAX???

  3. my brother in law is totally into peak oil (as well as what others would think to be conspricy in nature) Some is hard to swallow (like we will all die in a cold dark neuclear winter like scenerio), but other stuff seems pretty real – I don’t know what to tell you – is it true or not? who knows – Brazil just had a huge find, etc or we use too much for that to make any difference? I can tell you this – I don’t always believe what the bro in law says – but I did listen when he said to buy gold in 02 and when he told me there was a housing bubble in 03. Now I joke with my husband (maybe no joke) and tell him we will have to sell (what little bit) of gold we have just to stay warm this winter. I’d tell you this Andy, wheather or not we are at peak oil or beyond, it doesn’t really matter because this entire economy (in my opinion) is such a house of cards anything can tip badly – basically things are gonna suck either way – with that happy note – drink wine, it’s seems less scary that way 🙂 – lol

  4. A note on Pending Home Sales: One interesting footnote on pendings is that MLS’s thoughout the country are beginning to enforce the requirement that once a contract is submitted to a seller, the status of the listing must be changed to Pending. Now normally this has no effect on listings as negotiations are usually within a few days and REALTORS have 3-5 days to make the change. So if the contract is rejected within this time period there is no change in status.

    Enter the Short-Sale. These contract offerings usally take two to three months to be either accepted or rejected by lenders. REALTORS have been leaving these listings in ACTIVE status even though there is a pending contract. And while that pending contract may have a snowball’s chance of being accepted by the lender, the status should technically be changed to pending.

    A quick check of three large markets, Central Florida, Denver and Las Vegas, does indeed show a huge number of pending short-sales. Many of these short-sales are likely to fall through.

    The net-effect of all this is that inventories are appearing to drop, and pendings are appearing to rise due to this policy shift.

  5. Pending sales were up YoY in the West region. Spin that fact please.

  6. No probelm Bill. With 38% of the total sales in April being from the foreclosure or REO stock and a large percentage being short sales this would make sense. Toby above outlined the arguement.

  7. In my market in south GA 60% or more of pending sales are not closing due to lending problems. Pendings are not as useful an indicator in the current market

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