S&P On Housing
Standard and Poor's this morning came out with their most recent report on the state of the housing market. The two biggest details of the report:
1. The total cost for the Government Sponsored Entities (GSE's) Fannie Mae and Freddie Mac to cleanse their balance sheet and continue to provide over 90% of the new mortgage loans in this country (as they do currently) would be $685 billion.
2. The total inventory on the market including the shadow property is currently at 40 months supply. A 3-6 month supply of homes represents a normal healthy market. This number is beyond staggering and only includes data through the first half of 2010. The housing market entered back into collapse mode around August so I would anticipate this number to be far higher today.
Fortunately, we have a Federal Reserve chairman fully prepared to buy every mortgage, bond, or stock in our country with a printing press as was announced yesterday. A $685 billion loss is far less troubling under that context.
1. The total cost for the Government Sponsored Entities (GSE's) Fannie Mae and Freddie Mac to cleanse their balance sheet and continue to provide over 90% of the new mortgage loans in this country (as they do currently) would be $685 billion.
2. The total inventory on the market including the shadow property is currently at 40 months supply. A 3-6 month supply of homes represents a normal healthy market. This number is beyond staggering and only includes data through the first half of 2010. The housing market entered back into collapse mode around August so I would anticipate this number to be far higher today.
Fortunately, we have a Federal Reserve chairman fully prepared to buy every mortgage, bond, or stock in our country with a printing press as was announced yesterday. A $685 billion loss is far less troubling under that context.
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