Could there be cracks in the foundation of the US housing recovery?
The conventional thinking in US housing is that eager buyers are picking up houses and starting households but the numbers show investors are the main buyers. The could leave the consumer in the doldrums.
Today, there are signs that homeowners are still struggling to pay their mortgages.
Completed foreclosures jumped 11 percent nationally in May from the previous month, with monthly increases taking place in 33 states, foreclosure listing firm RealtyTrac Inc. said Thursday.
Overall, prices are much higher than this time last year and foreclosure starts are way down but nearly 20% of US homes with mortgages still owe more than the value of the home. What’s worse is that a flood of foreclosed homes are now hitting the market.
Expectations are for a continued housing recovery to drive household spending but if prices stop rising, the economy could be in trouble.
