Where is the housing recovery?

Only the Government knows. Consider this. The government supports 95% of all mortgages thru Fannie Mae, Freddie Mac, and FHA. These lenders are and have been on life support for years. A home loan is about to become harder to get. The Federal government’s 1.25 Trillion Dollar mortgage support fund is expired.

10% of all mortgages are fixed rate prime loans. According to CNN, Moody’s forecast is about 1.9 million homes will go back to the banks this year. These can be added to the 6.3 million vacant homes in the nation.

Many of these defaults are not yet in the housing market. Banks are sitting on them or they are held up by other federal programs. Estimates are that banks have about 1.1 million homes in their inventory and another 4.8 million will end up in foreclosure.

Now consider the low, low interest rates we currently have. With the housing market priced like it currently is, and fixed rate 30 year loans below 5%, the story is buy now.

The recovery is some time away. Interest rates say Buy Now!