Are Things Getting Worse?

Wow, it is hard to imagine but it seems the national economy; and if you ask Ohfeo (Office of Federal Housing Enterprise Oversight) things locally are "declining" as well. Rates for a 30 year mortgage although still very good are at 6.5%, the price for a barrel of oil is approaching $110.00, the price for an ounce of gold has hinted at $1,000.00, foreclosures are at all-time record highs with no end in sight, mortgage delinquencies are headed for record highs, payrolls are falling as the cost of "goods" are increasing, and the unemployment rate could hit above 5%.

What is the answer for all of this? Well, mortgage rates are on the rise, foreclosures are on the rise, lending guidelines are becoming very strict and now ltv (loan-to-value) guidelines are changing before our eyes! This sounds like a recipe for the "perfect storm" leading to a strong recession! The government better get involved in deeper matters and I mean FAST! Although they have taken valiant steps to remedy the situation the bottom line is it's not enough. They (the government) must think deep and make drastic changes to get the ship righted. Otherwise we will continue to see what we have largely been accustomed to seeing over the past 18 months.

Why do I bring this up? Because I can see where the outlining decisions we've made are headed, especially for the housing and lending industry and it's not good.

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