My Investing Notebook :: Useful notes on investing. ::

There is a lot of conflicting, mixed news about housing lately. Some believe housing recovery is well under way. This group is largely supported by the month-over-month sales increases. Yes, the recent 7% increase is impressive.

The second group is much less optimistic. Foreclosure level just reached a record. (I am referencing a few articles.) Recent sales increases are driven by the $8K tax credit. Also, summer is usually the most active period.

I believe housing is not out of the woods yet. Until several conditions improve, it’s going to be a slow ride. Mainly unemployment, foreclosures, and supply of homes for sales. Until these improve, they will hold housing in check — read, slow down the recovery.

I read an excellent, and sobering, view on housing yesterday, Prime Mortgages Are Also Going Sour. There was a similar article on WSJ yesterday.

The percentage of residential mortgages either in foreclosure or with at least one payment past due hit 13.16% in the second quarter, the highest percentage ever recorded by the Mortgage Bankers Association, the industry group reported on Thursday.