Housing Market Top was Three Years Ago in July

Posted on | June 12, 2009 | 2 Comments

Make sure to use Subprime Blogger for your mortgage rates forecast as well as finding out ways to get low mortgage rates.

In July of 2006 we saw the housing market top in the United States.  This chart is a great depiction of the fall we have seen.  I know there were many analysts out there who predicted a housing bubble, but did they ever guess the financial 911 we have seen.  It has definitely been an interesting road that we have taken along the way.  Who can believe that the beginning of the fall of Bear Stearns started exactly two years ago?  There was a great piece by Charlie Gasparino expressing where the Bear Stearns guys are now.  The buying of mortgage backed securities and subsequent decline in home prices sent almost every single Wall Street financial firm into a free fall and we may not recover for a very long time.

I am sure many of you have felt the affects of this on your 401(k) or other personal investments.  The only saving grace that some of you may have is that you had the opportunity to refinance at extremely low mortgage rates.  I am sure this does not make it any easier to swallow the fact that your investments have, most likely, halved themselves.  For anyone who is wondering exactly what happend to cause this disaster, I urge you to watch “House of Cards” a documentary on CNBC.  It explains just how silly these Wall Street firms were and basically points out that 9/11 was one of the major causes of the subprime mortgage crisis.

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