One of the main reasons why Americans are in such a foul mood right now is because the economy is in really bad shape and it just keeps getting worse.
A desire for change is in the air, but our economy is unraveling so rapidly that it won’t be easy for anyone to turn things around. We have built up a tremendous amount of momentum in the wrong direction, and it appears that the months ahead are not going to be pleasant.
Just look at what is happening to home sales.
Last month, sales of previously existing homes fell to the lowest level that we have seen since October 2010.
Of course in October 2010 we were dealing with the aftermath of a global financial crisis.
Overall, we are on pace “for the worst year since 1995” for sales of previously existing homes…
Sales of existing homes in the U.S. are on track for the worst year since 1995—for the second year in a row.
Persistently high home prices and elevated mortgage rates are keeping potential home buyers on the sidelines. Sales of previously owned homes in the first nine months of the year were lower than the same period last year, the National Association of Realtors said Wednesday.
Existing-home sales in September fell 1% from the prior month to a seasonally adjusted annual rate of 3.84 million, NAR said, the lowest monthly rate since October 2010.
And it appears that this month could be even worse than last month, because the number of mortgage applications being submitted is absolutely plummeting…
Mortgage applications decreased 17% from one week earlier as mortgage rates surged, according to data from the Mortgage Bankers Association’s (MBA) weekly application survey for the week ending October 11, 2024.
The Market Composite Index, a measure of mortgage loan application volume, decreased 17% on both a seasonally adjusted and an unadjusted basis from one week earlier.
Meanwhile, our nationwide commercial real estate crisis just continues to intensify.
Commercial real estate prices have been crashing all over America, and this crisis is not getting the attention that it deserves from the media.
The banking industry is headed for big trouble as well. In fact, the government shut down another bank on Friday…
Friday, The First National Bank of Lindsay was closed by the Office of the Comptroller of the Currency (OCC), with the Federal Deposit Insurance Corporation (FDIC) appointed as receiver. The OCC acted after identifying false and deceptive bank records and other information suggesting fraud that revealed depletion of the bank’s capital. The OCC also found that the bank was in an unsafe or unsound condition to transact business and that the bank’s assets were less than its obligations to its creditors and others.
The OCC is referring the matter to the United States Department of Justice, which has a wide variety of tools to hold individuals accountable for criminal acts and focuses on victims in all of its matters.
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