My guess would be absolutely no possibility until it becomes impossible to keep borrowing money to fund them. So where does that leave us?
My guess would be absolutely no possibility until it becomes impossible to keep borrowing money to fund them. So where does that leave us?less
I've been following the mortgage market for many years. I think I may have felt similarly in 2009 to 2011, but I also follow a lot of the data. For instance, while the homeownership rate is at a 20 year l...more
I've been following the mortgage market for many years. I think I may have felt similarly in 2009 to 2011, but I also follow a lot of the data. For instance, while the homeownership rate is at a 20 year low, the cost of renting has been higher than the cost of owning a home for several years. As a public policy goal, it is important to push policies that are good for the middle class. Homeownership is one of these things.
The Federal Reserve guides interest rate decisions based upon things like the Philips Curve. When unemployment goes up, they tend to lower interest rates, but only if inflation is also subdued.
What this country lacks is a economic housing policy based on data. Right now, we have housing policies based on public opinion and politics. People tend to think about things that happened eight years ago, as if they are true today. In 2005, people without jobs or assets were getting loans for homes that had $300,000 mortgages. No doc loans are a far swing away from the current mess.
Fannie's minimum credit score is a 620, but most banks won't talk to you without a score over 680 and strong W-2 documented income. This is also true for self-employed people that might have high credit scores and lots of assets. I know from experience. When I started my own RIA firm, I could not refinance my rental property or my home residence through HARP or the FHA streamline program. The risk of default remained the same for my banks in these cases, but they didn't want to do anything to draw the attention of regulators. (I have good credit and assets).less
By Jeff Miller
It is important to consider your level of risk tolerance as a function of your objectives.
Those concerned about the low gold & silver prices are playing a fool's game. According to the charts there are no signs of a turnaround, yet, so instead, they should be doing everything possible to have and accumulate physical possession of them.
Market psychology has become twisted by virtue of not merely rotation (into old-line companies and oils, and out of drugs or techs into infrastructure), but by many repeated oscillations and attempts to reverse the rotation, almost daily at times.