Posts

No Building + Growing Population = Strong Housing Market EVEN IF RATES ARE AT 6%!

There were about 2.3 million new homes constructed in 1973 – a number we have not seen since. This is not that big of a deal until you remember that the entire population of the U.S. was only about 211 million (compared to 332 million now). Over the last year, we have built about 1.3 million homes, when, again, the U.S. population was over 330 million!Read More

Still No Housing Bubble – Because Rates Are 3% Lower Than In 2006!

MBS HIGHWAY HITS HOUSING BUBBLE AGAIN Barry Habib, Founder of the MBS Highway, hates it when the media spreads irrational fear about a housing bubble. He also shares marketing materials that subscribers to his content are allowed to share without attribution to him, but that is anathema to me. Below is a script he recently […]Read More

Americans Can No Longer Move To Hot Job Markets; Does It Matter?

SOUTHWEST AIRLINES SAVES ECONOMY? Southwest Airlines and the proliferation of nationwide newspapers (like USA TODAY) were a major reason we saw so much economic growth in the 1980s. So said an economics professor I had in the 1980s. Airlines had recently been deregulated and Southwest was the first to offer dirt cheap flights – that […]Read More

Missed Rent Payments Are OK – Or Are They?

WOULD YOU DO THIS LOAN? It was sometime in 2006 when a rep I knew well from the now defunct Washington Mutual (WaMu) called me to ask if I personally would “do the loan” that I submitted. My answer was of course not. It was a 90% combined loan-to-value (LTV) loan (1st and 2nd mortgage […]Read More

Why Housing Is Actually More Affordable Today Than In 1980!

WHY HOMES ARE MORE AFFORDABLE TODAY In the midst of my daily excursion into the bowels of Twitter, I saw a great tweet from the Center for Human Progress. It had a link to this excellent article, titled U.S. Housing Became Much More Affordable Over The Last 40 Years. It was fascinating to say the […]Read More

4 Must-Know Facts About INFLATION, Housing, And Mortgages

INFLATION, HOUSING & MORTGAGES With inflation here and only expected to get worse, many potential buyers are getting nervous and wondering what to do. As a result, I thought I’d address a few major considerations today. 1. HOUSING IS AN INFLATION HEDGE/PROTECTION AGAINST INFLATION As a hard asset, housing tends to appreciate with inflation like […]Read More

2.7 Million Borrowers Still In Forbearance; Foreclosure Crisis Coming?

The WSJ reported recently that 2.7 million borrowers are still in forbearance. That is about 5.5% of all borrowers, down from about 8.5% in June, but the number of borrowers in forbearance is no longer falling and many market-watchers are nervous. A weakening economy is exacerbating concerns, as retail sales have been falling, employers have […]Read More

How Do Elections Affect The Housing Market?

The best blogs come from plywood companies. I always say that. Or at least today I do b/c I found this excellent blog, titled “Presidents and Plywood – How Elections Affect the Housing Market.” I have blogged numerous times about how the election might impact interest rates, but I have not focused on how it […]Read More

Goldman Sachs Loves Housing Still; COVID-19 Will Push People Away From Cities

In October, I blogged about my millennial nephew paying $4,250 per month in rent in San Francisco. I pointed out that the property he was renting was worth about $2 million and that he was probably better off renting – IF he stayed in San Francisco. His financial planner and I, however, both told him […]Read More