“Fixing” the Housing Market

Sometime early next year, the Obama administration will propose how to revamp the US mortgage market. Next Tuesday, the White House will hold a “summit” on the issue.

It’s safe to guess that none of the invitees will suggest the government should simply get the heck out of the mortgage market…so this morning, we’re left to speculate which options are more likely to be tried, and to tease out the resulting investment implications.

First, some relevant data: 325,229 US properties got a notice of default, auction, or repossession last month – down 10% from the previous year, but up 4% from the previous month.

92,858 properties were repossessed – up both month-to-month and year-to-year, indeed setting the second-highest total since RealtyTrac started keeping numbers in early 2005. So banks are working through their foreclosure backlog before sending out a truckload of new notices. (more)