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Pending Home Sales Disappoint As 15% of Realtors Report Clients Unable To Obtain Financing
Less than a week after the NAR reported September existing home sales which surged at a 5.17 million annualized pace, the highest since September 2013, rebounding from the August drubbing which was also the worst miss in 2014, today the NAR flip-flopped and disappointed sellside expectations of a 1.0% rebound following the August -1.0% decline, rising a modest 0.3%, and less than half the 2.2% expected increase from a year ago, rising only 1.0% Y/Y. This was the third miss in the series in the last 4 prints.
Some commentary on the disappointing print, from Lawrence Yun, NAR chief economist: moderating price growth and sustained inventory levels are keeping conditions favorable for buyers. "Housing supply for existing homes was up in September 6 percent from a year ago, which is preventing prices from rising at the accelerated clip seen earlier this year,” he said. “Additionally, the current spectacularly low mortgage rates should help more buyers reach the market.”
That's funny: we have been hearing that for the past 6 years. We also heard that rising rates are also bullish for housing as it means buyers have to rush to catch the last low rates before the spike. That didn't quite pan out either.
More from the NAR:
Despite improved housing conditions and low interest rates, tight credit conditions continue to be a barrier for some buyers. Of the reasons for not closing a sale, about 15 percent of Realtors in September reported having clients who could not obtain financing as the reason for not closing.
Was Ben Bernanke one of them?
Yun says the final rule on Qualified Residential Mortgages should improve access to credit once it goes into effect next year. “The rule provides clarity for lenders and is a win for creditworthy consumers by ensuring they continue to have access to safe and affordable loan products without overly burdensome downpayment requirements,” he said.
In other words, the next taxpayer bailout of Fannie and Freddie should be beneficial to those deadbeats credit-challenged McMansion buyers who can't afford a house? He may have a point there.
Pending home sales by region:
- The PHSI in the Northeast increased 1.2 percent to 87.5 in September, and is now 2.9 percent above a year ago. In the Midwest the index decreased 1.2 percent to 101.2 in September, and is now 4.0 percent below September 2013.
- Pending home sales in the South increased 1.4 percent to an index of 118.5 in September, and is 1.7 percent above last September. The index in the West inched back 0.8 percent in September to 101.3, but is still 3.6 percent above a year ago.
And while the end of the third dead cat bounce in the US housing market is increasingly a threat to any rumor of a US recovery, as is the concern of outright home price declines, the ECB has nothing to worry about deflating home prices: after all it "considered that won't happen", and so it shall be. Because who can forgot S&P's models #reffing out when it tried to assume declining home prices in its models...
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I thought my 3 partime jobs paying me 9 bucks an hour would be enough! F U bankers!
But the house prices can NEVER go down. We shall make them homes moar affordable ... but those home prices can never go down.
It's all about supply and demand - You know, if people can't afford the prices then you just lend 'em more money ...
"It's all about supply and demand - You know, if people can't afford the prices then you just lend 'em more money ..."
This statement is completely, utterly, unfathomably - INSANE!
.....but with today's bizzaro world of economics, it's true.
... "completely, utterly, unfathomably - INSANE!"
I was worried that no-one would notice. Turns out I didn't need to worry. Glad yas noticed.
winna winna...bbq chickan dinna...
So, 15% of potentail home buyers are deadbeats.
"I thought my 3 partime jobs paying me 9 bucks an hour would be enough! F U bankers!"
http://stateofworkingamerica.org/charts/number-of-underemployed/
hello sir, we checked and you have perfect credit, You've never paid anyone !!
Where are those no doc, fog the mirror loans Fannie and Freddie?
Saturate with max debt to obtain the Fed's model of infinite debt.
Those were invented because banks weren't lending in the best of times, well these aint the best of times.
the fog the mirror loans are now available at the FHA
Mark Zandi, you have been fully discredited. Truly, your title of economist is well earned.
"a win for creditworthy consumers by ensuring they continue to have access to safe and affordable loan products without overly burdensome downpayment requirements"
3% down isn't low enough, apparently.
Federal Housing Finance Agency (FHFA) Director Mel Watt, who was nominated to the FHFA by Obama and confirmed by Senate Democrats, told a crowd of mortgage brokers at a casino in Las Vegas last week that to increase access for credit worthy but lower wealth borrowers that FHFA was working with with Fannie Mae and Freddie Mac to develop guidelines for mortgages with loan to value ratios of between 95 and 97% along with lowered credit scores for borrowers.
Watt assured his banker hosts that the new warranty agreements wouldn't punish them too harsly when they sell a loan to Fannie Mae and Freddie Mac that doesn't meet agreed upon standards or that doesn't perform exactly as promised. Never mind that Fannie Mae and Freddie Mac executives helped create the last mortgage crisis by loosening underwriting standards and goobling up subprime paper from the likes of Countrywide Financial in a quest for ever larger bonuses.
Watt is a black attorney and a Democrat who served for North Carolina's 12th congressional district from 1993 to 2014. Watt said that his new policies should be seen as an effort to move mortgage finance back to a state of normalcy.
http://online.wsj.com/articles/what-happened-in-vegas-1413934406
and if i may say...truly one of the most "incompetents" they have in their stable of idiots.....
You have to be kidding me.
Just change the definition of "Creditworthy" from having capacity to repay AND capital, to simply capacity...then lower those standards. Everyone can be creditworthy!
But but marketwatch says "pending home sales nudge up for second highest level of the year". Someone is leading me astray.
1984
A: Chocolat Rations are down 60% to 30gr a day!
scratch that...
B: Chocolat Rations rise spectacular from 20gr to 25gr a day!
That was one of the most remarkable parts of the movies.
Bankers don't make loans to the public as a business model anymore. They loan to the government and the Fed. Anything else they have is for gambling in the markets and making margin calls.
The business model is to always drive up housing so that the State can be "afforded.".
It's not the housing market that is failing but the State that has borrowed trillions against always higher prices.
How many businesses are debt-free? It's not just the State that wants those higher prices.
How do these little people make their money? :
http://www.memberlink.tic.com.au/
If you want to buy a house simply so you can live in it, you have to compete with them when you buy.
MarketBITCH is a Fraud street propaganda tool.
banks stopped lending to small and medium sized busiensses 5 years ago.
NAR really means housing is unaffordable even thought the MSM has the lemmings all lined up to buy.
But it's the right time buy/sarc
The national association of realtORs says so...in those TV commercials...
Sex: In, out, in, out, in, out, in, out, in, out, in, out, in, out, in, out...
Housing: Good, bad, good, bad, good, bad, good, bad, good, bad...
Rape: In, out, in, out, in, out, in, out, in, out, in, out, in, out, in, out...Punch
Housing: Good, bad, good, bad, good, bad, good, bad, good, bad...Punch
FIXED IT.
It’s a Buy and Burn market if you have good credit. Detroit Style.
Buy a house, take the insurer’s recommendation and over insure, torch the place, pocket the leftover. Only do this if you have excellent credit. If you are a dead-beat, they’ll investigate the fire & throw you under a lie detector.
NAR means buy anytime.
It's getting close to the election and the libtards in the Obama administration are getting nervious.
it is TIme for the Fed to lower the credit appproval to 500, and let's call it Credit Easing (CE1)
Be sure not to use the word "lower". Make it "increasing" opportunities for home buyers.
dad right...lowah mean mo'bettah...so jus' call d'increese in d'fordabilitae...
bettah yet, jus don' loan no'money to d'scores ova 500...dats how to gib ownaship to da po' peepses what desoive it anyhow...
I thought the more debt you aquire the better your credit rating is in Murica?
3% down on housing should fix this economy though for sure!
Reap the financal Failnado bitchez! Destroy the credit of the population with manipulation and consumerism dies through the lack of ability to keep the credit ponzi going.
I am surprised the reported rate is this low. There were a lot of bankruptcies, foreclosures and late payments over these years. Isn't 50% of Americans in the subprime credit range now?
I imagine some at this point have shed or restructred debt and have steady income within that group. I don't find "loan forgiveness" being bandied about such a bad thing as long as the individual has the income, low debt load and at least 10% down.
I don't think we'll see NINJA loans again in our lifetime. Using housing loans as a way to kick the can out a few years and replace lost income due to trade imbalance with China obviously proved disasterous for the population. The high cost of staples certainly didn't help. I remember myself and friends using credit cards at time for medical bills and groceries after 2008 when oil and food began going parabolic. Inflation far outstripped wage/income growth for the majority.
We paid our bills, they should pay theirs.
"loan forgiveness" put a bullet in their head. “Pay or Die!”
Spoken like a true Jew.
"I am surprised the reported rate is this low. There were a lot of bankruptcies, foreclosures and late payments over these years. Isn't 50% of Americans in the subprime credit range now?"
Yes indeed. But these people [the 50% you mentioned] arent the ones that are going out trying to buy a house right now.
What's the over/under on lifting financial regualtions? Last I read it was 1 day
"...by ensuring they continue to have access to safe and affordable loan products"
That sounds like right out of the training school of Political-speak, does it not?
"...by ensuring they continue to have access to safe and affordable Health Care"...
And lastly, what is a 'loan product'...? Is that something a U.S. based factory puts out on a daily basis for export as trade...?
Stop using a term that should be reserved for the manufacturing and production of a Tangible item, for what amounts to nothing more than shuffling papers, or inputting some nonsense form and hitting Ctrl.-P...
It's that word, "affordable". Principle stays the same or increases, wages stay the same or decreases but somehow it is magically "affordable".
Oh I know, we can "lower" the repayments by lowering interest rates, or by increasing loan duration, or by "going in partnership" with the sucker, I mean muppet, I mean home-buyer and the grabmint will take ownership of half the house and repossess their half at sale time ...
Hints:
If Johnny earns $300 per week then he can only afford $100 per week for his mortgage. He still has to pay bills and eat, you know. $600pw mortgage against $600pw average wage DOES NOT MAKE SENSE.
When lower interest rates are offset by higher principal, IT IS NOT MORE AFFORDABLE.
If prices get too high then competitors step in, increase production and offer a cheaper product - NO???
We bought a place in Sept., after 2 previous Offers fell through on financing.
I could not believe the hoops and disclosures we had to go through to get the Mtge. with 20% down and good credit. And as for the DP (Down Payment), the unbroken trail of Seasoned Funds (3 months) that they demanded for the Underwriter, was amazing. If you moved it from one account to another, or one bank to another, you had to provide official Monthly Statements in PDF. The lesson I learned, is that if you bring in such funds from your offshore account, you'd better do it 4 months in advance, so that they can "season" (i.e. sit there as a free loan to the bank).
It's a different market place, and you can see why people pay cash, if they can.
and they get paid to write those reports? were do I sign up?
Hello ... PRINT some more FAKE money !
the world isn't FAKE enough, yet ... we need more FAKE stuff
Realestate greedy agents. Oh I think it's worth more than that, a home 2 blocks away just sold for .............sssssshhhhhhhiiiiiiiiiittttttttyyyy gggrrrrrreeeeedddddd
C'mon, even the folks who are propping up the prices know the shit isn't worth that...and for the most part, these are the same folks who are in a position to LEND the money. So, if THEY won't lend, then the SHIT AIN'T WORTH IT!
I'm GLAD people are having a hard time financing...it's about fucking TIME already! Force all the hot air out of this damned market already so we can get on with it. A drying up of the easy money will force prices back down to earth. Big investors may be able to hold out awhile for better prices, but at the street-level, most people will have no choice but to adjust downward, and accept a lower price, causing the old chain-reaction slide in everything else. THAT is the market those big investors will eventually have to sell in. Good luck with THAT.
I relish all these signs that TPTB are failing. Their stupid 'spin', and the blatant data manipulations that get crazier and crazier...it's like watching a massive meltdown in progress, of some obnoxious prick who is now starting to see it all slip through his fingers...There will be crying, screaming, begging and bargaining, and, towards the end, threatening and a few nasty attempts at attack, but in the end, they will lose it all.
Just like every last one of the previous eleventy-million scumbags in the past has done. No matter WHAT system they put in place, or how desperately they try to hold it, they ALWAYS fail. It never happens fast enough for those of us living through it, but take heart in the knowledge that it WILL happen like it always does...
Here's a conundrum for the money lenders...they need to up their lending standards and tighten the income requirements at exactly the same time as their customers are experiencing DECLINES in their credit-worthiness...mainly due to the shenanigans of those lenders in the first place! It's a big old happy circle of "fuck you".
Like watching someone take a swing, miss, and end up hitting themselves in the face instead.
What's the plan now, bankers? I believe it's your move...(this ought to be fun to watch.)
It will be the mortgage bankers move after Federal Housing Finance Agency (FHFA) Director Mel Watt, a Democrat who was nominated to the FHFA by Obama and confirmed by Senate Democrats, told a crowd of mortgage brokers at a casino in Las Vegas last week that FHFA was working with Fannie Mae and Freddie Mac to develop guidelines for mortgages with loan to value ratios of between 95 and 97% along with lowered credit scores for borrowers. Watt assured his banker hosts that the new warranty agreements wouldn't punish them too harshly when they sell a loan to Fannie Mae and Freddie Mac that doesn't meet agreed upon standards or that doesn't perform exactly as promised.
The FHFA is prompting a replay of the last mortgage crisis perpetrated by progressive Democrats like former Rep. Barney Frank, the outspoken chairman of the House Banking Committee, who threatened the banks to make subprime loans to unqualified buyers or face sanctions.
http://articles.baltimoresun.com/2013-10-20/news/bs-ed-ehrlich-housing-2...
If wages are continually driven down, fewer families have the income to service big home loans. So who is surprised by this? It used to be that labor on building sites made good money, enough to afford a nice middle class home. So there was a source of demand, right from the building workers themselves. Now the illegal immigrant invasion has driven building labor wages down, down, down. So now Padro the builder lives in a cheap rented house with 15 family members. He is not out seeking a McMansion to buy and drive housing demand.
I swear, those who worship at the alter of low wages for all are too stupid for words.
dat right, in mah crib, my chillens gotsta sleep in dey beds layin' all sideways...so's we be gettin' 3 o' fow' in d'bed...den we ca' rent out dey room ta da udder fam'lys...
It gets better. Consider that rise in home prices is mostly just inflation. They call that "profit" at the sale, and governments and agents line up to take fees and taxes as much as they can get away with. You can buy a house for 100k, sell for 150K, and lose money big time when you adjust for inflation. So the other part of the market that is and has been suffering are the people who want to move to a larger home. Just isn't happening quite like it used to. You can't even turn your money back into a home of the same size without going in with equity lower.
That's what happens when jobs (and interest on savings) disappear. Thanks Wall Street.
http://stateofworkingamerica.org/economic-indicators/
http://stateofworkingamerica.org/charts/number-of-underemployed/