Comments on: Housing Gets Better… But Has it Bottomed? http://dailyreckoning.com/housing-gets-better-but-has-it-bottomed/ Entertaining Ideas on the Economy, Markets, Gold, Oil and Investing Strategies. Fri, 10 Feb 2012 23:16:51 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Really? http://dailyreckoning.com/housing-gets-better-but-has-it-bottomed/#comment-20796 Really? Wed, 26 Aug 2009 15:37:36 +0000 http://dailyreckoning.com/?p=17995#comment-20796 The ARRA started giving homebuyers $8,000 tax credits and some states also gave incentives. California provided a $10,000 first time homebuyer credit through August. Like cash for clunkers in the auto market, the ARRA has boosted demand for housing. The FHA let you apply the tax credit directly to the down payment, as I understand. The improved activity has been in lower priced housing, where this sort of subsidy is most significant. It is not surprising in the least that activity has improved and it is not indicative of recovery. This is in addition to the funding of FRE/FNM and the Fed purchases approaching 1 trillion to keep mortgage rates artificially low. People still like free money. The ARRA started giving homebuyers $8,000 tax credits and some states also gave incentives. California provided a $10,000 first time homebuyer credit through August. Like cash for clunkers in the auto market, the ARRA has boosted demand for housing. The FHA let you apply the tax credit directly to the down payment, as I understand. The improved activity has been in lower priced housing, where this sort of subsidy is most significant. It is not surprising in the least that activity has improved and it is not indicative of recovery. This is in addition to the funding of FRE/FNM and the Fed purchases approaching 1 trillion to keep mortgage rates artificially low. People still like free money.

]]> By: tony bonn http://dailyreckoning.com/housing-gets-better-but-has-it-bottomed/#comment-20665 tony bonn Tue, 25 Aug 2009 20:47:07 +0000 http://dailyreckoning.com/?p=17995#comment-20665 this was good sunshine on the housing turn around... this was good sunshine on the housing turn around…

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