Housing Turned 7 Years Ago?

This morning, I posted a chart to my facebook wall that shows the turn in UK home mortgages that occurred about 7 years ago! The spreads between US government paper and Euro paper are falling again. Lower prices and the lower cost of money have once again made UK homes very affordable. The good folk who produced the chart, Oracle.com, predict another 15 months of recession in the home building industry. The estimate could be accurate even while trillions of dollars worth of excess supply is scooped up at low prices. At least one of my poker buddies believes there is no money available to buy real estate if one wanted. The numbers for the Saint Louis Federal Reserve tell a different story. Loan production in the USA is currently running at about 10% above last year! Those with the wherewithal to buy are quietly buying trillions of dollars worth.


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