robertsondavies
06-12-2007, 07:27 PM
http://money.cnn.com/2007/06/12/real_estate/bc.usa.housing.foreclosures.reut/
Yikes..... watch out for falling prices as we enter the largest (pricewise if not lengthwise) down-phase of this cycle.
To make matters worse, mortgage rates will be at their highest point in the last 5 years in a week, due to the unbelievable spike we witnessed in the last 3 trading days in 10 yr. bond yields.... someone is selling U.S. treasuries, and that HAD BEEN THE lynchpin that had held this real estate correction in moderate check, until last Friday.
I fear PIMCO's Bill Gross will be proven right here... with this interest rate move, real estate is going to be decimated.... this foreclosure data (which is essentially backwards looking data) leads most analysts to believe we're a bout to see a larger spike in foreclosures later in the year, particulary as teaser rates set for their biggest "adjust period" in April, May and June of this year.
Yikes..... watch out for falling prices as we enter the largest (pricewise if not lengthwise) down-phase of this cycle.
To make matters worse, mortgage rates will be at their highest point in the last 5 years in a week, due to the unbelievable spike we witnessed in the last 3 trading days in 10 yr. bond yields.... someone is selling U.S. treasuries, and that HAD BEEN THE lynchpin that had held this real estate correction in moderate check, until last Friday.
I fear PIMCO's Bill Gross will be proven right here... with this interest rate move, real estate is going to be decimated.... this foreclosure data (which is essentially backwards looking data) leads most analysts to believe we're a bout to see a larger spike in foreclosures later in the year, particulary as teaser rates set for their biggest "adjust period" in April, May and June of this year.