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Fannie Says Household Financial Situtation Outlook Slumps To Worst Since August 2011

Tyler Durden's picture





 

Fannie was already in the news this morning courtesy of the $10 billion settlement announced between the GSE and Bank of America. Let's make it two in a row courtesy of the firm's monthly housing survey in which one aspect, the ongoing expectation that home prices will continue to rise driven by the recent momentum, should come as no surprise: there is always hope that this dead cat bounce is different and unlike the previous three, and will result in something substantial. It won't, once all those millions of properties held on bank books and generating zero cash flow (remember: BAC's 6+ month delinquent mortgages now amount to a whopping $64 billion) are unleashed on the market once the subsidized housing price is perceived as sufficient by most as a new, and satisfactory, clearing price. What was surprising was the consumer outlook on the economy and personal finances, which was diametrically opposite, and in fact those who expect that their personal financial situation will get worse in the next 12 months rose to the highest since August 2011.

The full details:

  • The percentage who expect their personal financial situation to get
    worse over the next 12 months continued to rise, reaching 20 percent and
    the highest level since August 2011.
  • Thirty-seven percent reported significantly higher household expenses
    compared to 12 months ago, a 3 percentage point increase over the past
    month and the highest level since December 2011.
  • At 39 percent, the share of respondents who say the economy is on the right track fell by 5 percentage points from last month’s survey high.
  • Twenty-two percent of respondents say their household income is significantly higher than it was 12 months ago, a slight increase over last month and a 5 percentage point increase over September.

So, to recap, the US household's financial situation is bad and getting worse, with expenses "significantly higher" than a year ago, but it must be all the Fiscal Cliff's fault so there is absolutely no inflation, and buy stocks?

 


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Mon, 01/07/2013 - 10:51 | Link to Comment chunga
chunga's picture

Good morning America how are ya?

Mon, 01/07/2013 - 11:05 | Link to Comment Calculated_Risk
Calculated_Risk's picture

Fuck godaddy too! They stole my domain by claiming an obscure law saying I had links to an illegal online pharmacy, and said links allows them to steal my property.

So they accuse me of a crime, yet I got no due process, no court, no conviction, and my property forfeited.

And all I did was do a google search for best online pharmacy affiliate, picked one that several sites recommended, not shady sites either, but well established web develpment sites.

Signed up as an affilitae and put their link on my page.

 

So be warned ZH, soon will be the day when your bullion adverts will be illegal and your site confiscated.

It happened to me. No notice, no warning, just gone. POOF!

Mon, 01/07/2013 - 11:30 | Link to Comment CPL
CPL's picture

Why do you think they sell domain names nickles on the dollar?

 

It's not to be nice, it's to gain marketshare.

Mon, 01/07/2013 - 11:07 | Link to Comment trav777
trav777's picture

good for me tho....i have business with FNM

Mon, 01/07/2013 - 11:09 | Link to Comment kridkrid
kridkrid's picture

Of course this is how it will go down. Part of the plan, anyway.. Freezing assets and cutting access to "finance". The banks can clean up whatever the legislators can't. The "problem" will be approached from every angle.

Mon, 01/07/2013 - 11:00 | Link to Comment Element
Element's picture

Meanwhile, at the printery, "Wot? No, it totally doesn't matter, we're printing!".

Mon, 01/07/2013 - 10:52 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Fannie Says Household Financial Situtation Outlook Slumps

 

Dropping out of the workforce tends to have that effect.

Mon, 01/07/2013 - 11:01 | Link to Comment GubbermintWorker
GubbermintWorker's picture

As does retiring and going onto SS.

Mon, 01/07/2013 - 11:45 | Link to Comment CPL
CPL's picture

You mean EBT welfare.  SS won't exist in a year.  Once they switch all the retirees to EBT systems, then someone can use the numbers to say those on welfare are out of control in a budget somewhere.  Then someone will mention that we have camps to place these people and get them back to work.

 

While in the provided camps, the industrial system in the US will further collapse by the cheapening of labour in a huge untrained talent pool (other that having children which appearently contributes to GDP somehow).   Most business will be given no choice in the matter to hire from the pool of those in the system and placed by definitions other than the business if they wish to remain in business.

The sweat of your brow and education will become meaningless.  So anyone in school right now.  Just drop out and go on welfare, that's the only choice left.  You don't need the debt or the training.  Because that is the new employment system and training system.  Look at the courses under welfare under the 'get america back to work' and NOT job placement after university.  You find the welfare 'job' placement rate is 100% versus the less than 8% out of universities now.

 

University is dead as a product.  Best idea to fight the system right now is to swarm it on a services level.  Force the government hand to spend too fast and too quickly at a severe cost to all other operational practices until something breaks.  And it will eventually.

Mon, 01/07/2013 - 10:52 | Link to Comment Cursive
Cursive's picture

Who are these 39% who think the economy is on the right track?  SEIU members?

Mon, 01/07/2013 - 11:53 | Link to Comment CPL
CPL's picture

Our 'betters' in a group of 20 represented as 7.8 people rounded up?

 

I'm pretty sure that 'group' fits in a boardroom and if it's 39% it means nobody in that room has a clue to what is going on either.

 

This isn't an election where a margin counts.  This is money.

Mon, 01/07/2013 - 10:52 | Link to Comment kridkrid
kridkrid's picture

If the news is bad, what does that say about reality?

Mon, 01/07/2013 - 10:54 | Link to Comment buzzsaw99
buzzsaw99's picture

Bullish

Buyish

Stockish

Mon, 01/07/2013 - 10:55 | Link to Comment NoDebt
NoDebt's picture

"Expenses significantly higher" = We know our taxes are going nowhere but up.

Mon, 01/07/2013 - 11:42 | Link to Comment Rainman
Rainman's picture

HUD thinks FHA will need a $13 billion bailout. FHA is financing the foreclosure ' rebound ' borrowers. Subprime lending never died !

http://articles.latimes.com/2012/nov/14/business/la-fi-rebound-buyers-20121114

Mon, 01/07/2013 - 11:18 | Link to Comment Atlantis Consigliore
Atlantis Consigliore's picture

Fuggettaboutit:  they sell $ 65 B non performing mortgages to FED off their books; use mortgages meantime

as capital  (new rules just implemented as banks buy back defaults from the GSE;s but can now use them as capital!!)

keep $ 5 B a month transferred to fed, and next year,  its, its its....and its GONE!

fed has the mortgages turn into performing with the pick your low  payment of only 10% of your adjust income and in

20 years your 30 yr note is gone: STICK IT TO THE TAXPAYER THE NEGATIVE AM.

like the student loan pick a payment plan. Do a teacher, realtor or community service job like Hooker or

congressman, and you get off free in 10....call it the damp,scamp, chump dump, cum hump loan program.

CALL IT THE SCHTUPER: HOOKER PROGRAM FOR YOUR FANNY.

FED keeps buying 45 B a month (300,000 homes) with NOD/foreclosed mortgages on their books as performing wont

foreclose on 6 million homes, it cant   because their empty and full of mold.

Also note est. 2 million homes boarded; and deserted as the minorities who bought from no doc sub prime pools

mexico fled, scammed at the top in 2006-2007 after the bubble popped and went

back home deserting them in AZ and Florida.  Cant forclose or short sale em;  theres no insuruance either.

 

Mon, 01/07/2013 - 11:30 | Link to Comment tip e. canoe
tip e. canoe's picture

look on the bright side...it reduces the supply.

Mon, 01/07/2013 - 11:10 | Link to Comment Blankenstein
Blankenstein's picture

.

"the US household's financial situation is bad and getting worse, with expenses 'significantly higher'"

And the Bernanke continues to do everything he can to keep home prices high.  Expenses would be lower for households if that idiot would let the market work and allow prices to be determined by fundamentals instead of Fed manipulations such as ZIRP and the twist.  

No doubt the real estate propaganda machine, the NAR, will be inundating us with commericials as their disinformation campaign begins with the start of the selling season, telling us there was never a better time to buy than now.   

The U.S. would benefit immensely from the end of these treasonous organizations.  

Mon, 01/07/2013 - 11:39 | Link to Comment buzzsaw99
Mon, 01/07/2013 - 11:42 | Link to Comment SunRise
SunRise's picture

Right On Bro!

Mon, 01/07/2013 - 11:28 | Link to Comment OneTinSoldier66
OneTinSoldier66's picture

Certainly all must be well. The Government has Fannie in "conservatorship" and as we all know by now, Government always has the solution that solves any problem. Solutions, freedoms, rights, money, housing, medical care, and more... always come from the Government. After all Bailouts and QE4Ever are what actually makes a Free Market a free market, right?

</sarc>

Mon, 01/07/2013 - 11:29 | Link to Comment Uncle Zuzu
Uncle Zuzu's picture

Bernie Bernanke wants you to sell gold and buy a house.  Better do the opposite?  The "don't fight the fed" strategy has been a bust for ten years.  Average fund manager hasn't noticed yet or doesn't care.

Mon, 01/07/2013 - 11:40 | Link to Comment hooligan2009
hooligan2009's picture

what price did B of A use to settle its 10 billion this morning? Is that the price it now have to use to value its remianing mortgage portfolio? Is this the price that Fraudie and Funny (sorry, Freddie and Fannie) have to use to market their 6 trillion dollar book to market also? Somewhere along the line there is a valuation issue of this for tax payers..

Question (check out Rolling Stone's part capture of the fraud behind the banks capture of the regulators and the Government here:

http://www.rollingstone.com/politics/news/secret-and-lies-of-the-bailout...

the true cost of the bank bailout does not reflect the agreement by the treasury to forego taxes on bank profits for around 40 years!!!

Mon, 01/07/2013 - 11:49 | Link to Comment Aztec Warrior
Aztec Warrior's picture

A friend bought 155k 4 bedroom house in Mesa,AZ for $2000-$3000 down payment via FHA loan -Though she makes good money and is financially responsible - if she loses her job and can't afford mortgage - she can again walk away.

The funny part is that the down payments are so ridiculously low that walking away will only cost you 2/3 months mortgage/rent in lost equity. That is less cost than fixing broken Air conditioning.

Mon, 01/07/2013 - 12:59 | Link to Comment pursueliberty
pursueliberty's picture

We have 0 down USDA loans here through rural development.  They account for a large part of our sub $150.

 

My wife is closing on a new construction house that the buyers will walk into for $0 out of pocket.  The builder is paying all of the closing costs.

 

FHA requires 3.5% down and a much higher PMI than USDA RD loans.  The PMI on a FHA loan is enough to make me skip that idea.  Your friends pmi payment is $150 a month on that small of a mortgage.

Mon, 01/07/2013 - 12:23 | Link to Comment Chain Gun Smoke
Chain Gun Smoke's picture

I'm looking to buy my first house.

Can I time this? Or should I just take advantage of the interest rates as they are? My current rent money isn't getting me anywhere anyways.

 

Mon, 01/07/2013 - 17:07 | Link to Comment AynRandFan
AynRandFan's picture

Chart of real median household income (cumulative percentage change):

http://www.ritholtz.com/blog/wp-content/uploads/2012/11/household-income...

Wed, 01/09/2013 - 05:41 | Link to Comment lmile61
lmile61's picture

The thing is I'm looking to buy my first house..... ecommerce web development

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