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Posts Tagged ‘home prices’

Home mortgage applications

To one my stories about how income had finally begun going up in 2016, somebody wrote, “Yes the 80 bucks more a month I’m getting now completely covers the hundreds of dollars my rent has gone up due to rich developers moving in and gouging us all.”

There are a few things to be said about the comment above. As you can tell by the graph above, applications for home mortgages peaked in 2005 and have dropped quite a bit since then. So why are home and rental prices still shooting through the roof?

The big banks in 2007-11 conspired together to keep over 50 percent of vacant houses off the market so as to jack up prices. Home prices have artificially risen since then. The banks have allowed an increasing dribble of these homes back onto the market as prices have artificially and illegally risen.

Rents are artificially high as well, and for the same reason. What the big banks have done is commit a crime called “a conspiracy in restraint of trade.” This collusion redistributes income from home buyers and renter (the 99 percent) to share and bondholders of the 1 percent.

90 to 95 percent of US population growth is due to immigration. When population constantly increases while large amounts of housing units are illegally taken off the market, the result jacks up housing prices and rents. See Shadow Inventory: More Houses Will Soon Be Available for Sale–Rismedia.com. See also The 7-Million Housing Shadow Inventory Could Trigger A Price Avalanche–Business Insider.

The government has changed the way it measures inflation twenty times since 1981 so as to reflect a lower rate of inflation than actually exists. This means real wages are actually higher than they would have been under the old methods of measuring inflation, so that when the government tells us wages have been stagnant for thirty-six years, it really means real wages have gone down significantly.

Meanwhile, increases in home and rental prices are not actually counted in the inflation rate. See How to Fix the Housing Component of CPI–Slate. Food and energy prices are not included either, but they used to be. There’s a reason for this; inflation measured against wage increases would demonstrate real US wages have plummeted over the last three and a half decades, rather than stagnated. Both Republicans and Democrats in public office don’t want you to know the real story, and neither does their corporate news media.

Both major political parties are controlled by big corporations, billionaires, hedge funds and Wall Street investment banks, and most of these benefit from this conspiracy in restraint of trade. So don’t expect the US government to do anything about this illegal manipulation of prices. It isn’t going to happen until we get honest government back to Washington.

Editor’s note;

The big banks have conspired against Federal law and supply and demand to withhold product from the market in order to manipulate prices and profits upward so it is the renters and buyers who are ripped off. Much, if not all, of this conspiracy has to do with mortgage backed bonds, and the profits and losses to be had from them. A loss in value of 8 percent in the housing that backs triple B rated bonds sends the value of those bonds down to zero, according to Michael Lewis in The Big Short. Likewise, he writes, a 20 percent slump in the price of housing sends the value of AAA home mortgage backed bonds to zero. A lot of billionaires and millionaire investors lose in this instance. So the big banks conspired to keep over 50 percent of the vacant housing off the market in order to prop up the value of those bonds. However, there are other significant benefits to those banks to keep houses off the market. Buyers and renters pay the price of this conspiracy because the obvious result of the actions of the big banks is to redistribute hundreds of billions, if not trillions of dollars, every year from the 99 to the 1 percent.

Dear Democrats, please note then President Bill Clinton refused to sign legislation that would’ve regulated derivatives. Home mortgage backed bonds are a derivative, since their value is derived from an underlying asset. That’s why they’re called derivatives.

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The big banks are holding 3.67 million homes off the market, according to the new Bloomberg report. What’ve I been tellin’ ya?

According to Bloomberg, the 3.67 million homes “clogging up the market” are more than the total number of new and existing homes combined that are available for sale in the entire United States. The total value of those homes is $382 billion.

The result of this scam is a massive increase in housing prices, both sale and rental prices. The big banks and their rich shareholders are making out like bandits, because they are bandits.

The big banks have conspired to keep these homes off the market in order to drive up prices. This is called “a conspiracy in restraint of trade,” and it is a violation of several different US laws.

This is also a massive income redistribution scam as citizens are forced to spend tens of thousands of dollars more per home, or pay thousands more in yearly rent, than would otherwise be the case. The big winners of this scam are the rich shareholders of the banks, along with their CEOs.

Don’t hold your breath for justice. The big banks own both major political parties, they have judges in their back pocket, and they basically own the federal government, including the US Department of Justice.

You can see from the chart below that the number of people taking out mortgage applications reached a peak in 2005. Currently, applications are at a 21 year low. That means demand for houses isn’t pushing up the value of homes to create the current housing bubble.

Rather, a more than 50 percent reduction of supply has caused the bubble. The only way for the banks to keep such a huge amount of houses off the market is for them to illegal conspire together in violation of the law.

For more on this story see The Shadow Housing Inventory–Bloomberg News

MBAApril152015

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As predicted here, the short-lived housing bubble nose-dived in July by 13.4 percent. The big banks have conspired to take over 2 million homes off the market in the last two years. In addition, they’re also no longer throwing people out of their homes when they’ve fallen months behind on their mortgage payments. This way more homes are kept off the market. All of this has enabled the banks to jack up home prices even though demand has been at or near record levels. Demand for all home mortgages continues to plummet since May. Mortgage applications are at record low levels right now, and going down, down and down further. Since demand is so low, the question must be asked, why were home prices going up since 2012. A little research shows the big banksters have been rigging the game to jack up home prices. This has been an income redistribution scam, illegally shifting money from the 99 percent in the form of higher home prices, and shifting it to the 1 percent in the form of higher bank profits, dividends and share prices. Don’t expect the Obama regime to do anything about this illegal scam. It probably doesn’t matter any more, at least not for those in the market. But for those who bought homes at illegally higher prices. This rigged game might be over.

Check out the link below for mortgage applications.

mortgage daily news

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It’s official. The market for homes is being fixed like a corrupt poker game. The banksters are playing with a loaded hand, playing the 99 percent for fools, playing the news media like they’re a well tuned piano, and they’re doing this by rigging the housing market; they’re artificially pushing home prices up. That’s the only way home prices can be rising, because home buyers aren’t buying.

The number of 30-year fixed mortgage applications hit a record low on December 9, 2012, well after the housing market began to heat up a few months earlier. Since December 9, the number of mortgage applications have inched up a bare fraction, and they’re at near record lows. Roughly 80 percent of all home mortgages are 30-year fixed mortgages.

Remember the bad old days back in 2008, 2009, 2010, 2011 and 2012 when the values of homes were in a virtual free fall? The number of mortgage applications was significantly higher then than they are now. In other words, given the weakness of demand, housing prices should still be dropping.

A quick look at all home mortgage applications called the price index, which includes 15-year flexible and 30-year fixed, shows almost the same pattern. The number of total mortgage applications have remained the same for the last three years.

The evidence is clear. The demand for mortgages remains at or near record lows. So demand is not pushing up home prices.

That means the supply is artificially drying up. Nearly a million homes have been taken off the market since 2009 by the big banks. They’re just sitting there. Several banks, such as Citigroup and Wells Fargo, are no longer foreclosing on home owners who are behind on their payments because that expands the supply of available housing. The job of the banksters is to get home prices to go up by shrinking the supply.

This is called a collusion in restraint of trade. It is a violation of the Sherman Anti-Trust Act. Don’t expect Wall Street President Barack Obama to order his Wall Street attorney general, Eric Holder, to do anything about these criminal acts either. Obama’s biggest campaign contributions have been from members of the Wall Street gang, such as Goldman Sachs and Citigroup.

All of this market manipulation redounds to the benefit of Wall Street. Trillions of dollars of mortgage backed bonds held by hedge funds, mutual funds, investment banks, governments, and the 1 percent are worthless because of the decline of the housing market. The Federal Reserve has been bailing out these incompetent investors for years with $26 trillion dollars of so-called loans that have never been paid back, and it’s unlikely they will ever need to be paid back since the Fed has already claimed they were paid back when it was impossible to have occurred. (See The $26 Trillion Bailout). The Fed has also purchased trillions of dollars of these bonds at their face value, rather than at their worthless value.

Now that the housing market is moving up in value through manipulation, those bonds will begin to regain value. Wall Street will be better off. Hedge Funds will be better off. The 1 percent will be better off, and all because the 99 percent are paying higher prices for homes because of market manipulation, and because mortgage rates are also being manipulated upward.

In other words, on all levels, income is being massively shifted from the 99 to the 1 percent through market manipulation, something Wall Street President Barack Obama and Wall Street US Attorney General Eric Holder apparently approve of. Otherwise, they’d do something about the newest criminal activities of the banksters.

The banksters and Obama are creating another housing bubble that will improve Obama’s economic numbers, but it’s simply another illegal income redistribution scam.

This shows how rotted to the core the US government has become, and how insane it is for people believe that markets operate in some text book way featuring a market of buyers and suppliers determining prices through supply and demand.

Click on the link below to see the graphs of 30-year fixed mortgages and the Purchase Index yourself. By the way, “the Purchase Index includes all mortgage applications for the purchase of a single-family home. It covers the entire market, both conventional and government loans, and all products. The Purchase Index has proven to be a reliable indicator of impending home sales.” Click the link below and see for yourself.

The fix is In! The Banksters are Manipulating the rise in housing prices: Mortgage applications are down for home sales!

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