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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (18369)	9/3/2004 3:42:10 PM
From: ild	Read Replies (1) \| Respond to of 110194

Bank and thrift HELs are currently growing at an annualized rate of 40%, as reported by the Federal Deposit Insurance Corp. (FDIC). FDIC-insured depositories made $39.3 billion in home-equity loans during 2Q04. As of June 30, these institutions held a total of $415.8 billion in HELs, above the $295.4 billion in 2Q03. The majority of the growth in HELs has been generated by commercial banks, which added $32.4 billion in HELs in 2Q04 and have been growing a 38.5% annualized rate.

To: ild who wrote (18369)	9/3/2004 3:46:30 PM
From: Elroy Jetson	Respond to of 110194

Obviously most home owners will retain their optimism until the next Spring sales season - then reality will sink in. As I mentioned in a previous post, in Summer 1990 über-broker Fred Sands, owner of his euphonious number one brokerage firm (which he later sold to Coldwell Banker), told the Los Angeles Times, "This temporary "summer slow-down" is a great opportunity to buy a home at a discount before home prices resume their rapid climb by year-end." The Spring selling season in 1991 quickly saw panicked home sellers offering large price cuts. But the worst was yet to come, as prices declined for another five years.