Article Index
U.S. Home Prices

Ask any professional involved in the real estate market and they will tell you that when interest rates are low, it’s a great time to buy. Lower interest rates mean higher affordability because mortgage payments are smaller. In December of 2014, the 30-year mortgage rate tracked by Freddie…

What will happen to the U.S. housing market in 2012? As we close out 2011, we will have experienced the fifth consecutive year that home prices in the U.S. have declined. According to the popular S&P/Case-Shiller Index,U.S. home prices are down 31% from their mid-2006 peak. Several reports…

Throwing taxpayer money at conjured schemes to revive the economy needs to stop, but Washington does the exact opposite. They are spending their time on ideas that take money from peoples’ hard-earned taxes to help other people who made very bad decisions. Here’s what I’m venting about… Yesterday,…

The number of nails needed for the housing market’s coffin box has yet to be finalized. Consider just some of these startling numbers and trends: The median price of a resale home in the U.S. fell 5.2% in February 2011 to $156,100 (the lowest level since April 2002)…

If you are a stock market investor or a gold investor, or both, today’s PROFIT CONFIDENTIAL is a must-read. Why? Because, by the time you are finished reading this issue, you could very well be convinced long-term that the stock market is going down and gold is going…

Almost one in four American homes is underwater—their mortgage is more than the value of the home. There have been several reports issued by various investment houses and research companies that predict that U.S. housing prices will fall next year again. Depending on which report you read, the…

Three important points on gold this morning: This is not the time to trade gold. As we move from the second phase to the third phase of the gold bull market, the metal is having $20.00 to $30.00 per ounce daily moves. These types of gyrations make trading…

There is a bubble forming in today's economy and I believe that bubble is in U.S. Treasuries. Yesterday, the yield on 10-year Treasuries fell to 2.5% for the first time since 2009. Why the big rush to U.S. T-bills? A one-word answer explains the situation: fear. The fear…

The housing market continues to be in the doldrums and I continue to see this as a major risk for the economy and stocks. The reality is that the steady reduction in home wealth could cause a "poverty effect" to occur that makes homeowners feel they are less…

For the first time since the Great Depression, U.S. home prices are expected to fall this year. While at present, home prices are down about three percent from last year, the decline for the year could come in any where from two percent to four percent. Here are…

Toll Brothers, Inc. (NYSE/TOL), the largest U.S. builder of new luxury homes, reported yesterday that its third quarter profit had fallen by 85%. The total loss for the biggest U.S. homebuilders in the last quarter surpassed $2.0 billion. I was very interested to hear what CEO Robert Toll…

About 16% of subprime adjustable mortgages are now 30 days or past due, according to the U.S. Mortgage Bankers Association. Consumers who took out adjustable mortgages (simply known as ARMs) are having difficulty dealing with the higher interest rates that go into affect when the ARMs reset. The…

Back in late 2006, I wrote a couple of articles critiquing the U.S. National Association of Realtors. At the time, the NAR had run a series of full-page ads in national newspapers proclaiming "right now may actually be one of the best times to buy a home." The…

New Century Financial Corp., the largest U.S. based lender to subprime borrowers, filed for Chapter 11 bankruptcy on Monday. The company, which last year earned $60 billion in home loans to poor-credit borrowers, will lay off 3,200 employees. No longer will people with not-so-great credit find it easy…

I'll be the first to make this observation: Home prices are reaching the level they traded at in 2004. In my view, 2005 was the speculative peak for U.S. home prices. The market cooled in 2006, and it continues to cool this year. Yesterday, the U.S. Commerce Department…

A rare event in the financial markets occurred yesterday. For the first time in years, three major market indices all hit new highs. The Dow Jones Industrial Average, The Dow Jones Transports and the Dow Jones Utilities all hit new record highs yesterday. This is extremely bullish action…

"Home sales down 8.4%, could be bottom," claims the headline on last Friday's USA Today. What do they know that I don't, I ask? They know what the realtors and their associations tell them. And that's about it. Because, unfortunately for American consumers, the real estate news is…