There has been good housing market data flow from some parts, but overall the housing market is still beaten to the ground.
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New York, NY (PRWEB) November 10, 2012
In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi reports that, according to recent data from the Mortgage Bankers Association (MBA), the total number of mortgage applications filed in the U.S. fell 12% for the week ending October 19 compared to the week earlier. (Source: Mortgage Bankers Association, October 24, 2012.) Lombardi notes that this lack of appetite for borrowing is just one of many signs that suggest the U.S. housing market is still in poor condition. According to Lombardi, for the housing market to recover, the U.S. economy in 2013 will have to improve significantly, which he doesn’t see happening.
“Yes, there has been good housing market data flow from some parts, but overall the housing market is still beaten to the ground,” says Lombardi. He believes the U.S. economy in 2013 will be worse than people expect.
Lombardi notes that while home prices may have increased a little, the overall market is still in trouble.
In the article “Think There’s a Recovery in the Housing Market? Think Again…,” Lombardi reports that in September, the 30-year fixed mortgage rate in the U.S. fell to the record low of 3.47%, compared to 3.60% in August, according to Freddie Mac. (Source: National Association of Realtors.) But the growth in buyers for homes has not been from homeowners; it has come from investors.
“To have a healthy housing market, the people who actually buy the homes need to live in them,” reasons Lombardi. “However, record-low interest rates are not luring would-be homeowners back into the housing market.”
According to the Profit Confidential expert, in order for there to be a healthy recovery for the housing market and the U.S. economy in 2013, several areas will need to see an improvement, including an increase in mortgage lending, an increase in first-time homebuyers, an improvement in existing home sales, a decrease in distressed home sales, and mortgage payments made on time.
“A housing market recovery is crucial to an economic recovery for America, but it has to be a real recovery; not investors buying houses to rent them out to tenants,” Lombardi concludes, warning that both the housing market and the U.S. economy in 2013 are on the edge.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.