According to most politicians and The National Association of Realtors housing prices have hit a bottom, right?
And everyone knows that you can trust both politicians and Realtors, right?
So can someone explain to me how unemployment, which according to article below (cut and paste or click on title above) just rose in 42 states (isn't that most of them?) is good for housing prices???
Maybe you can explain to me how increasing unemployment rates will lead to fewer foreclosures?
Perhaps the fact that the number of people who have dropped out of the workforce and quit looking for employment growing will somehow help prices?
I also learned today that default rates on FHA loans is nearly 50% higher than non FHA loans. If FHA, and other government guaranteed loans now account for 80-90% of all loans in the country and we know that FHA buyers don't really have any "skin in the game," how likely is it that those defaults will not end in foreclosure?
I also learned that for the first time in it's 75 year history, FHA now is about to drop below it's required reserves for defaults. I wonder what that means for the future of foreclosures and housing prices???
Of course the politically appointed head of FHA said recently that "FHA will absolutely not require a tax payer bailout." That's probably true, right?
For many, many years I have been known as the "Dumb one" . . . that must be why I simply don't understand?!
http://finance.yahoo.com/news/42-states-lose-jobs-in-August-apf-1171568305.html?x=0&sec=topStories&pos=3&asset=&ccode=
