New Home Sales At 276K On Expectations Of 330K, Previous 315K; Prices Drop

First existing, now new home sales: 276K (yes a record low) on expectations of 330K, and a revised prior of 315K – a drop of 12.4% month over month. And, even worse, prices are dropping as deflation rages: the Home Price Index down 0.3% on expectations of a 0.1% increase (and previously at 0.5%). Months of supply: 9.1. Stick a fork in it.

From the Census Bureau:

Great Economist, Dictator Obozo: Orders Mortgage Lenders To Cut Payments

Did you know that HALF of all the loans that were modified 9-12 months ago, are now back in default AGAIN.

Can you say, DOUBLE DIP RECESSION? All in the race to incur the deadly costs to try and re-inflate the housing bubble. Obaba and the Democrats understanding of economics is breath-taking stupid. Social justice, outright stupidity.

We were warned of this because our Jug-Eared Jackass, in his hurry to ram through “mortgage fixes” forced lenders to alter home loans in default 9-12 months ago. And now, those modifications are forcing the predictable results, predicted by anyone who has actually ran a business as complex as a lemonade stand. Proving once again, giving home loans to people of no credit nor income, makes for really crazy risky business.

Modifications are “clearly not working well and it’s not a surprise,” said Sam Khater, a senior economist at First American CoreLogic in Tysons Corner, Virginia. “It’s pointless to rewrite these loans because they’re underwater.”

The number of homes with mortgage payments at least 60 days late climbed 2.39 million in the fourth quarter, up 13.1 percent from the prior three months and 49.6 percent from the year earlier period, the quarterly Mortgage Metrics report said.

Obama Program

President Barack Obama’s administration is pressuring lenders to alter loans to reduce the number of properties lost to foreclosure. About 4.5 million foreclosures filings are expected in 2010, according to RealtyTrac Inc., an Irvine, California-based seller of default data.

A government watchdog report released today criticized the government’s main foreclosure prevention effort, the Home Affordable Modification Program, or HAMP, for “spreading out the foreclosure crisis” over several years by failing to help enough troubled borrowers.

“The program will not be a long-term success if large amounts of borrowers simply re-default and end up facing foreclosure anyway,” said the report by the Special Inspector General for the Troubled Asset Relief Program, prepared for a Congressional hearing today.

Prepare for the government to next enact legislation giving it control of the mortgage industry!

And take a look at new home starts in December, lowest ever. If you want some education try this, can we re-inflate the housing bubble?

New Housing Starts

No turn around in sight.