Lie #5: The Housing Market Is Recovering

Filed under: Housing, Recession

Moody's reported that the rate of defaults on home mortgages has fallen to roughly 6.5% of all mortgages, and that the number will be slightly lower throughout 2010. They neglected to mention that the historical default rate is one-third that, or that the 2010 default rate on mortgages will be 300% higher than the historical rate.

Housing sales in 2010 will be worse than expected, and home prices will continue to fall as more and more foreclosed homes enter the market. There are currently more than 800,000 foreclosed houses that the banks have yet to put on the market, and another 1.5 million homes are expected to go into foreclosure in the next 18 months.

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Lie #5: The Housing Market Is Recovering originally appeared on BloggingStocks on Sat, 26 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.

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