This was another busy week for the national housing decline where the latest foreclosure results, a continuation of the subprime meltdown, and a surprise jump in long term interest rates all worked to put significant downward pressure on sentiment.
With the exception of Harvard’s sham State of The Nation’s Housing 2007 Report, many economists seemed to have now written off hopes of any form of recovery in 2007 and are now looking as far as 2009 for some significant bottoming to occur.
First up, Nicholas Retsinas, director of Harvard’s Joint Center for Housing Studies discusses his outlook for housing concluding that the downturn may be prolonged. His perspective is particularly interesting given that the paper his center just produced, being funded in part by the National Association of Realtors and the National Association of Home Builders, takes a much more positive outlook on the future for residential real estate.
Watch Retsinas walk a fine line now on BNN!
Next up, a classic Bull-Bear match pits Brian Wesbury, Chief Economist of First Trust Advisors against Nouriel Roubini, Chairman of RGE Monitor.com on the outlook for housing and the economy and the latest jump in long term interest rates.
Watch Roubini spar now on BNN!
Next, we have a sad CNBC segment that chronicles a poor bastard in Maryland who got caught up in the mania in 2005. He bought a waterfront property in the hopes of subdividing it, creating a luxury “dream” home for himself and another to sell for profit. Unfortunately, he is stuck with a luxury vacation home no one wants and his unfinished dream home and ready for auction.
Watch a poor mans dreams go up in flames now on BNN!
Next, we have a segment that discuses the recent run-up in mortgage rates possibly pushing off any possible housing recovery to 2009. This week, the Mortgage Bankers Association announced that the average rate for a 30 year fixed rate mortgage was 6.61% a value that will surely act to suppress demand especially in the bubbliest and least affordable areas.
Watch rates surge now on BNN!
Finally, a great wrap-up discussing topics from the subprime meltdown on Bear Stearns latest results, the Mortgage Bankers Association record quarterly results for foreclosures and new proposals for the Federal Reserve action against subprime and predatory lending. Includes an interview with PNC Financial Services Group Economist Stuart Hoffman who sees housing as a drag on the economy for the rest of 2007 and into 2008.
Watch the wheels come off the cart now on BNN!
