The Obtusely Obvious Advice of the NYT

So the new breaking news from the NYT is that 79% of the mortgages that were closed in 2011 were refinances.

That would make sense, wouldn’t it?  I mean, there is very little selling and the economy is on life support so how else could there have been originations?

Not to mention the fact that we are at historically low levels and they are being artificially held in place in order to not frighten investors who would buy our national debt.

But hey, it is the NYT and we have to make allowances.

Adding the moronic to the obtuse is the qualification questions asked of refinancers of one David Boone from Provident Bank in New Jersey.

That is, he asks them what they are planning on doing with the house, how long they plan to stay in the house and are you planning on selling.  Huh?

The answer to the first two questions are in the answer of the last.  If you are planning on selling and cannot make adjustments for the market, expect to be in your home for awhile.

If you are not planning selling, but are hurting financially, you are no doubt attempting to cut expenses any way that you can.  Jeez.

For the record, mortgages were up during 2011 from 2010.  The dollar amounts were a bit higher which indicates that the market is adjusting.

However, we are a long way away from the peaks we had in 2007.  For the real estate neophyte, this is called a market correction.

The thing you must remember is that there are now 10.4 million foreclosures locked and loaded for clearance.

And this is going to drive down prices and slow down sales to the speed of pond water on a clear day.  With no fish in the pond. Get it?

I hope so, because 2012 – 13 will be the trough with 14 and 15 will bring an upward trend in prices and sales.

Let’s just stay away from the bubble, okay?

Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island real estate appraisers provide independent residential real estate appraisals for a variety of purposes.

Here’s the original article…Knowing When to Refinance

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