Commodity Trade Mantra

All posts under ‘Housing and Mortgage’

Bear Stearns 2.0? UK's Largest Property Fund Halts Redemptions

While equity markets have rebounded exuberantly post-Brexit, suggesting all is well, British property-related assets have tumbled. Standard Life has been forced to stop retail investors selling out for at least 28 days after rapid cash outflows were sparked by fears over falling real estate values. The fund will need to sell real estate to raise cash before any money can be redeemed.

Could China's Housing Bubble Bring Down the Global Economy?

China’s stated intent is to move from a fixed-investment/export dependent economy to a consumer economy. But if we consider what happens when housing slows or even grinds to a halt, we realize the impact on incomes, wealth and consumption will be extraordinarily negative, not just for China but for every nation that sells China vehicles and other consumer goods.

The Echo Bubble in Housing Is About to Pop

Here’s the knife in the heart of the Echo Housing bubble: household income– stagnating for decades for 90% of households has declined since the Bubble Top when adjusted for inflation. Please explain how declining real income can support nosebleed home prices now that mortgage rates have bottomed & started their inevitable rise from absurdly low levels.

Take Advantage of the Fed's Uncertainty - Buy Gold or a New Home

The Fed’s decision is a wash for precious metals, oil and gas prices. A rate hike would have likely caused the U.S. dollar to strengthen even further, which in turn would have put additional pressure on commodities. Home buyers who have been sitting on the fence now have a double-incentive to act: historically low mortgage rates and a possible chance at killer bargains.

Does This Look Like A Housing Recovery To You?

The chart that you are about to view is clear evidence that we are in the midst of a long-term economic decline. It shows what has happened to the homeownership rate in the U.S. since the year 2000, and as you can see it has been collapsing since the peak of the housing market back in 2007. Does this look like a housing recovery to you?

The Housing Bubble's Silver Lining

All bubbles eventually pop–not just in housing, but in tech employment, and every other bubble in which the participants are absolutely confident that the bubble is not a bubble and the good times will roll essentially forever. If we’re left with some renovated buildings and new shelter in practical locales, we can count our blessings.

The Coming Curse of the “Zombie Foreclosures”

“Zombie Foreclosures” are homes where banks began foreclosure proceedings after homeowners were notified umpteen times that they were being foreclosed on. Hundreds of thousands of those homeowners walked away from their homes, leaving them for the banks to reclaim.

Is London’s Property Bubble Set To Burst?

Although it’s often argued that London is a unique property market fuelled by a buoyant London economy and continued international interest from overseas buyers, recent price appreciation has taken on a distinct frothy appearance. Investors should carefully evaluate evidence of a bubble.

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