Arnold Kling  

The Housing Market

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Tim Cavanaugh writes,


So what will this mean when the last moratorium is lifted, the last show-me-the-note lawsuit gets thrown out of court, and the last loan modification has failed? Well by that time you'll probably be able to buy property on a planet orbiting some nice warm star in Constellation Cygnus. But there could be roughly three times as many homes on the market as there are now. Lawler points to 1,445,000 completed foreclosures and short sales at the end of 2010, compared with 4,296,01 mortgages that are past due by 90 days or more.

I continue to believe that one of the biggest "unforced errors" of recent macroeconomic policy has been the attempt to prevent foreclosures rather than put them behind us.


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COMMENTS (2 to date)
Ryan writes:

Dr. Kling doesn't say it, but the article is worth a read.

The number of mortgages that are past due by 90 days or more -- 4,296,01 -- doesn't make sense to me. But, it's Friday and it's been a long week so I place the blame of my lack of understanding on that. Feel free to help me out here.

Chris Koresko writes:

Ryan: The number of mortgages that are past due by 90 days or more -- 4,296,01 -- doesn't make sense to me.

I'm guessing it's a typo, and that the real number should be around 4,296,010.

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