{"id":2708,"date":"2008-03-06T12:51:05","date_gmt":"2008-03-06T19:51:05","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2708"},"modified":"2008-03-06T12:51:05","modified_gmt":"2008-03-06T19:51:05","slug":"the-beat-goes-onand-the-beat-goes-on","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2708\/the-beat-goes-onand-the-beat-goes-on\/","title":{"rendered":"The Beat Goes On…and The Beat Goes On"},"content":{"rendered":"

The Fed reported that home equity is at its lowest since World War Two<\/a>:<\/p>\n

Homeowners’ portion of equity slipped to downwardly revised 49.6 percent in the second quarter of 2007, the central bank reported in its quarterly U.S. Flow of Funds Accounts, and declined further to 47.9 percent in the fourth quarter \u2014 the third straight quarter it was under 50 percent.<\/em><\/p>\n

That marks the first time homeowners’ debt on their houses exceeds their equity since the Fed started tracking the data in 1945.<\/em><\/p>\n

The total value of equity also fell for the third straight quarter to $9.65 trillion from a downwardly revised $9.93 trillion in the third quarter.<\/em><\/p>\n

Home equity, which is equal to the percentage of a home’s market value minus mortgage-related debt, has steadily decreased even as home prices jumped earlier this decade due to a surge in cash-out refinances, home equity loans and lines of credit and an increase in 100 percent or more home financing.<\/em><\/p><\/blockquote>\n

Perhaps this is the cause<\/a>?<\/p>\n

U.S.<\/em> mortgage<\/em><\/a> foreclosures rose to an all-time high at the end of 2007 as borrowers with adjustable-rate loans walked away from properties before their payments increased, the Mortgage Bankers Association said today. <\/em><\/p>\n

New foreclosures jumped to 0.83 percent of all home loans in the fourth quarter from 0.54 percent a year earlier. Late payments rose to a 23-year high, the organization said in a report today. <\/em><\/p>\n

“We’re seeing people give up even before they get to the reset because they couldn’t afford the home in the first place,” said <\/em>Jay Brinkmann<\/em><\/a>, vice president of research and economics for the Washington-based trade group.<\/em><\/p><\/blockquote>\n

The solution to the first problem?\u00a0 Let it happen.\u00a0 Banks will close.\u00a0 Wall Street will get hammered and the country will go into a recession.\u00a0 The best way to cure a hangover is sobriety, not a “hair of the dog that bit you”.<\/p>\n

<\/blockquote>\n","protected":false},"excerpt":{"rendered":"

The Fed reported that home equity is at its lowest since World War Two: Homeowners’ portion of equity slipped to downwardly revised 49.6 percent in the second quarter of 2007, the central bank reported in its quarterly U.S. Flow of Funds Accounts, and declined further to 47.9 percent in the fourth quarter \u2014 the third […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26,5],"tags":[],"class_list":{"0":"post-2708","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":14552,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14552\/brett-arends-from-the-wall-street-journal-on-zillows-morning-gloom-report-all-this-bearish-news-makes-me-bullish\/","url_meta":{"origin":2708,"position":0},"title":"Brett Arends from the Wall Street Journal on Zillow’s morning gloom report: “All this bearish news makes me bullish.”","author":"Greg Swann","date":"May 9, 2011","format":false,"excerpt":"Our friends at Zillow.com have figured out the secret to getting news coverage: Bad news:Home values in the United States fell faster in the first quarter of 2011 than they have in any quarter since 2008, when the housing market experienced its worst performance, according to Zillow's first quarter Real\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":982,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/982\/peeking-into-bernankes-crystal-ball\/","url_meta":{"origin":2708,"position":1},"title":"Peeking into Bernanke’s Crystal Ball","author":"Brian Brady","date":"February 2, 2007","format":false,"excerpt":"Do you want to look into the crystal ball through the eyes of Federal Reserve Chairman, Ben Bernanke? Will that help you predict mortgage rates and housing prices for 2007? I try to outguess the Fed all the time and I've decided that we'll see a significant decline in short-term\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6197,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6197\/joe-strummer-my-thoughts-on-the-looming-crisis\/","url_meta":{"origin":2708,"position":2},"title":"Joe Strummer: My thoughts on the looming crisis","author":"Greg Swann","date":"December 20, 2008","format":false,"excerpt":"\"Joe Strummer\" is the pseudonym of a frequent commenter on BloodhoundBlog. He runs a weblog of his own -- under a different pseudonym -- and leads a life of joy, contemplation and undisturbed privacy under his real name. But no matter how he is denominated, Strummer is an expert in\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17081,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17081\/overnight-news-the-new-normal-911-is-a-joke\/","url_meta":{"origin":2708,"position":3},"title":"Overnight News: The new normal? 911 is a joke.","author":"Greg Swann","date":"September 21, 2020","format":false,"excerpt":"What's the really important news? Stock up on non-perishables, especially items with complex supply chains. And figure out how you're going to eat, if the food deliveries are interrupted. Welcome to the Third World, y'all... Forbes: More Homeowners Are House Rich As Equity Rises In 2nd Quarter. CTRL-F 'riot'; not\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1891,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1891\/instead-of-a-bailout-of-troubled-borrowers-why-not-implement-an-equity-sharing-plan\/","url_meta":{"origin":2708,"position":4},"title":"Instead of a bailout of troubled borrowers, why not implement an equity-sharing plan?","author":"Greg Swann","date":"September 5, 2007","format":false,"excerpt":"Via Poor and Stupid, TCS Daily has a free (or at least free-er) market solution to bailouts for struggling mortgage borrowers. The idea? \"[A] debt-for-equity swap with sub-prime borrowers.\" Borrowers would give up 20% of their downstream equity in their homes in exchange for 20% debt and therefore payment relief:To\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7569,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7569\/the-bad-bank-plancomplete-with-music-and-video\/","url_meta":{"origin":2708,"position":5},"title":"The “Bad Bank” Plan…..(complete with music and video)","author":"Tom Vanderwell","date":"March 23, 2009","format":false,"excerpt":"I've copied the announcement from the Treasury that sent the markets on a moonrocket today and thought that I would \"walk you through it\" so that we can get a better feel for whether this is a relief rally or something sustainable (and therefore what it means for mortgage rates).\u00a0\u00a0\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/straighttalkaboutmortgages.com\/wp-content\/uploads\/2009\/03\/ppip-chart.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2708","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2708"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2708\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}