In a World This Dark,
It Is Almost An Insult
To Be Liked
click.jpg

Saturday, October 01, 2011

Continuing Down The Road To Serfdom

Today from CNBC:
No Rise in Home Prices Until 2020: Bankers

Home prices are unlikely to recover before 2020 and mortgage defaults will persist for years, says a survey of bank risk managers out Friday.

The survey conducted by the Professional Risk Managers’ International Association for FICO, found that 49 percent of respondents do not expect housing prices to rise back to 2007 levels for another nine years. Only 21 percent of respondents said they would.

The findings, which authors called “a decidedly pessimistic outlook”, are a sharp reversal from cautious optimism the survey respondents expressed late last year and in early 2011.

In addition, 73 percent of surveyed bankers say they expect mortgage defaults to remain elevated for at least another five years. And 46 percent believe mortgage delinquencies will increase over the next six months.

Only 15 percent of respondents expect mortgage delinquencies to decline during that period.

“While the housing sector will almost certainly gain strength during the next nine years, many bankers clearly believe prices will remain depressed for half a generation,” said Andrew Jennings, chief analytics officer at FICO.

Bankers concerns spread beyond the housing market.

A large number of respondents says they also expect to see an uptick in delinquencies on auto loans, credit cards and student loans....
Let's see....The GDP is in the sewer. And so is the housing market, a primary driver of the American economy.

Labels: , ,

Bookmark and Share
posted by Always On Watch at permanent link#

1 Comments:

Anonymous cjk said...

Actually if current trends continue I see the prices of our homes as skyrocketing at least ten-fold, in dollars that is. Now if you're talking about their value in terms of wheat, oil, or gold, that's another story.

Saturday, October 01, 2011 6:38:00 pm  

Post a Comment

Subscribe to Post Comments [Atom]

<< Home