CHESSNOID

The economy is at a turning point.  There are predictions that the economy might get better because of home prices falling slower than before.  I know many economist are grasping at the positive spins on all the report and that is why these predictions are weak.

Sept. 29 (Bloomberg) —

Home values in 20 U.S. metropolitan areas probably declined at a slower pace and consumer confidence improved, signs the recession is abating as the real-estate crisis eases, economists said before reports today.

The S&P/Case-Shiller home-price index fell 14.2 percent in July from a year earlier, the least in 17 months, according to the median forecast of 35 economists surveyed by Bloomberg News. The Conference Board may say its gauge of consumer sentiment rose this month to the highest level in a year.

Yes, there is a change of pace in the per cent of decline, however the downward trend has not reversed.  As  far at gauge of trying to measure consumer confidence, I just can’t believe in those polling data.  It is very subjective and the sampling is too small.

Actual forecasts are much stronger in determining the possible future direction of our economy.  They are hard numbers that are not subject to opinions.  You don’t need to put a positive or negative spin on it. They are simply the numbers of reality.

Sept. 10 (Bloomberg) —

Foreclosure filings in the U.S. exceeded 300,000 for the sixth straight month as job losses that boosted the unemployment rate to a 26-year high left many homeowners unable to keep up with their mortgage payments.

A total of 358,471 properties received a default or auction notice or were seized last month, according to data provider RealtyTrac Inc. That’s up 18 percent from a year earlier, and down 0.5 percent from July, the Irvine, California-based company said in a statement. One in 357 households received a filing.

Foreclosures rose from a year earlier as companies cut payrolls by 216,000 workers last month, boosting the U.S. jobless rate to 9.7 percent, according to Labor Department data released last week. The rise in unemployment is having a bigger impact than an effort by the U.S. government and banks to modify mortgages and prevent foreclosures, said Morris A. Davis, an assistant real-estate professor at the Wisconsin School of Business.

“The foreclosure numbers are largely unemployment related,” Davis, a former Federal Reserve Board economist, said in an interview. “As long as 15 million Americans are unemployed, record foreclosures will continue.”

More foreclosures could be on the way

Federal and state leaders are concerned about payment option adjustable rate mortgages

Federal and state leaders say a new wave of loan defaults and foreclosures are on the way. They’re concerned about payment option adjustable rate mortgages. Some experts say hundreds of thousands of people are going to be on the hook for up to ten times their usual mortgage payment. People may be surprised to hear what they’re saying at the Fair Housing Center about the foreclosure crisis in our region.