Housing markets show signs of bust: Fannie Mae Exec

[UpInArms]

http://www.marketwatch.com/news/story.asp?guid=%7B5A56987D%2D4CB1%2D4CE9%2DB082%2D2DFE1CAA54F6%7D&siteid=mktw

WASHINGTON (MarketWatch) - The possibility of a housing bust has "risen sharply in certain parts" of the U.S., thanks to a number of conditions including easier lending standards, a Fannie Mae executive said.

In a presentation prepared for a National Association of Home Builders meeting May 5, Fannie Mae's (FNM: news, chart, profile) Thomas Lawler said housing-market conditions in many areas mirror past conditions that preceded regional housing busts. Lawler is senior vice president for risk policy at the housing-finance giant.

<snip>

Lawler said a number of lending patterns over the past year are similar to those seen in the late 1980s, the "boom" of the most recent "boom/bust" cycle. Among those patterns are increased buying by investors, "unrealistically high consumer expectations" that home prices will rise, "creative, riskier financing" for homes and a higher share of adjustable-rate mortgages.

...more...

[redqueen]

1. How shocking...

why do some keep pretending this isn't happening?

[Rockholm]

2. Keep Talking ABout It Enough and It Just Might Happen.

Assholes. THe Boston Globe has been hoping for a real estate meltdown for the last two weeks. Way too many articles on foreclosures, bursting bubbles, blah, blah, blah.
The housing market is the ONLY thing keeping this economy afloat.
Want to talk about the have and have nots? Well, the "haves" had made it pretty clear with the new bankruptcy laws. As soon as the "have nots" start losing their homes because of this shitty economy, I guess the "haves" will just...have more. They are sitting on cash to snatch up all these impending foreclosures. Hey, its happened before.
Massachusetts in the early 1990's was depression central.

[progressivebydesign]

5. I'm with you... WHY are they trying to collapse the housing market?

It's one of the ONLY robust industries right now in this forsaken economy.

[leesa]

6. Because then the property goes back to the banks and other rich lenders

Plus, the added bonus of destroying the middle class. This allows for military fodder for their perpetual wars and allows for debtor slavery, especially now that debt will not be forgiven.

It all works for the rich. I remember reading one of the uber rich family members stating that the Great Depression was a good thing because it returned the wealth to its proper owner (the uber wealthy)

[madmark]

7. Housing market should collapse because

home values are creating mortgage payments disconnected from a middle class wage earners ability to pay them. And riding a speculative bubble is not participating in a robust industry.

[mom cat]

8. Because NOW you can't get and easy bankruptcy judgment! That means

Your stuck with the mortgage and a house that isn't worth shit anymore! Then you and your children will have to work a dozen jobs a day at slave wages to avoid being homeless just to pay the mortgage on your useless white elephant! It's just like all the other places us working stiffs have put our money hoping that it was a safe place: remember the old Savings and Loan accounts, the secure retirement funds, those safe stock market accounts, and let's not forget Social Security and what George Bush and his cronies would like to do to that too!

They want to bring back the good old days of indentured servitude and the company store.

[bleedingheart]

3. "If a good bank won't give you a loan...then don't take a loan"

that is some great advice I was given a long time ago...and I live by it....loan shopping to find a sharkbank willing to loan you money is profoundly stupid.

[madrchsod]

4. good thing we were turned down for another refi

from our s&l...right now we are 30,000 under the going price of the house.should be able to weather the storm.
there are at least two to four foreclosuers every two weeks here in this part of northern illinois.