The Bear Market Economics Phenomenon

“The Bear Market Economics Phenomenon” is an observation of Political Economics. Wall Street Admits: ‘We Got Rich Off the Backs of Workers’ thus creating the Bear Market. The Bear Market is America's default war. The ethic of Wall Street is the ethic of celebrity. It is fused into one bizarre, perverted belief system and it has banished the possibility of the country returning to a reality-based world or avoiding internal collapse. A society that cannot distinguish reality from illusion dies.

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Wednesday, March 5, 2014

First Time Home Buyer, What’s That?

Posted on March 5, 2014 by Logan Mohtashami

Logan Mohtashami, Benzinga Contributor

In a recent article Bloomberg financial asked me to comment on the scarcity of first time home buyers in the housing market.

http://www.bloomberg.com/news/2014-03-05/americans-shut-out-of-home-market-threaten-recovery-mortgages.html

The lack of first time home buyers is not a new phenomenon. This group of mortgage buyers has been underrepresented in the market for years, and you don’t have to read tea leaves to figure out why:

- Median income growth has been very weak

- Majority of the jobs recovered in this cycle have been low wage paying jobs going to people 50 and over

- Lack of liquid assets for a down payment and closing cost even for a 3.5% down payment loan is an issue

- Parabolic rise in student loan debt since 2007

- Living at home is financially more beneficial in this economy for some

- Renting as an option has an appeal for those who aren’t settled economically or not married with kids.

- Base salaries for college grads in some sectors isn’t high enough to obtain mortgage debt

The bottom line is that unless we see income growth, more younger Americans working and more of those younger Americans with better base salaries, first time home buyers will continue to be shut out of the market and this will affect the overall housing recovery.

From Anthony Sanders:

http://confoundedinterest.wordpress.com/2014/03/05/mortgage-origination-volume-falls-to-lowest-since-2008-mortgage-applications-still-at-1995-levels/

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Logan Mohtashami is a senior loan officer at AMC Lending Group, which has been providing mortgage services for California residents since 1988. Logan is also a financial contributor for Benzinga.com and contributor for Businessinsider.com

The Bear Market Economics Phenomenon

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Wednesday, March 5, 2014

First Time Home Buyer, What’s That?

Logan Mohtashami

First Time Home Buyer, What’s That?

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