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Housing market seemingly making a real recovery June housing starts up six point 9% from may July -- -- confidence came in.
I hear high in July and -- well there at record lows but.
Today we learned existing home sales -- unexpected get to the lowest level in eight months.
But that was still better than the same month last year again in terms of the existing home sales so what is a homeowner to make of all of this or just an investor in general.
Where are we really in this housing recovery let's bring in Anthony Sanders Anthony is a finance professor.
George Mason University wonderful to have you back with us so what do you make of it they seem to be just an.
Outrageous and -- of statistics out that it gauge the housing market what is the true health.
Well the true health -- is that it's a purgatory.
Cannot we're not we're not recovering we're not going down assist lying they're.
-- And the -- if we take a look at a couple of key indicators an -- into the existing home sales -- wasn't surprised by that.
Because yesterday morning the M -- mortgage bankers association's.
Purchase applications cannot.
And there are literally just flat -- flat -- -- is that no one indicator quick study watching taste to it to follow the housing market to get the best reading.
Well again mortgage bankers association's purchase apps is a great want to look at you can follow the case Shiller F and C home indices.
Those are very useful.
But again like -- this morning the NAR reports housing prices are up but once again if you can't get a loan or no -- borrowing money how much of that is this gonna.
-- fall off the Clough.
So we know all of this is going on against the backdrop of a broader weakening economy we know foreclosures continue to rise and there's a huge backlog of properties about to foreclose.
What do you think it is there a magic recipe if you will do we need to let those foreclosures just clear out of the system is it just a matter of time is there another catalyst.
Well absolutely -- they gotta give the foreclosures out into the market which is gonna have downward pressure on house prices ultimately.
That's why -- little blip up in housing prices.
I think we choose particularly positive side things misleading -- tell -- one thing.
In next year they're gonna get Dodd-Frank is gonna be implemented for the banks.
And so far they -- they've written rules and regulations for.
Of Dodd-Frank and it's already up to 8800.
Pages which would go to little forecasting that is Dodd-Frank is gonna be.
You know that's not gonna help the housing market this is gonna put a further dampening on the the mortgage applications to purchase more.
Yes a disrespect this theme of over -- her patient there's so much paperwork to your point Anthony thank you this restraint -- Yeah it's it's tough tough times Anthony Sanders thank you.
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