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MBS managing partner David Lykken weighs in on the state of the housing recovery.
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Existing home sales ticking higher in July.
But not as high as expected up over 2% from June.
Up over 10% from last year David -- -- of the MBS joins me now.
From Austin with his take on where we are in this recovery -- the -- numbers certainly do doing nothing to cheer investors this morning.
That's right their -- numbers while better and we're incurred.
To see them continuing on an upward trend.
They didn't meet expectations.
And I think what's really interesting about these numbers as who's buying these -- Dennis.
Who's out there really.
Boosting these numbers and it's it's the investors not as much.
First time homebuyers as we'd like although first time homebuyers increased a bit from the previous month.
That's the group we really want to see getting yen and being coming -- part of boosting these numbers.
Now these investors and buying up policy it's a good thing it kind of takes off the supply of empty homes off their that helps prices -- body.
Well the deal is is that the efforts of all it's a lot of foreign investors -- I mean that's probably one of the most significant things.
Recent trips and lived in Miami and out to Phoenix both times -- -- -- -- happens it next to.
Foreign investors coming in buying real estate single family dwellings and they're gonna hold -- for a period time they have the -- to sit down.
And hold on these for a period of time they perceive were at the bottom near baton -- that they have a cap sufficient capital hold no matter if even if they drop a little bit more so I.
I what I see is negative about that is Americans who we want to see buying these homes are not doing so.
But that bill most significant part of it is is when first time homebuyers aren't in there and they're being trumped by investors.
That's just as a sign that were not yet back to -- -- in court healthy real estate housing market.
Yeah well the average US household has only 7000.
Dollars in savings.
And some experts argue that most -- most people can't even afford a down payment to buy -- so it's better if they rent anyway knowledge veer a little bit from housing into.
Politics and let's talk about the Republican Convention coming up now -- recently made a move whether decided to their platform.
His -- agenda for what they're gonna run on will not include it.
A provision.
That -- shores America that hey we love that mortgage interest rate deduction and we're not gonna take it like they're not gonna promise.
Not to take it away -- four years ago they did something like that.
What kind of impact he -- has both on housing.
And on.
Votes.
-- I suspect this is more of a move to allow Romney to put forth his vision.
On housing and I think what's been conspicuously absent from the discussion.
In the and this presidential campaign is what is each candidate's plan.
Going to put forward as to improve this we know -- started -- he's made the first move he says.
He went to the treasury instead treasury let's wind down let's accelerate.
The the good wind down.
Fannie Mae Freddie Mac but what's so interesting about that Dennis they did not put forward a plan what's gonna replace them and we need -- -- secondary market so.
That didn't Obama start to makes -- -- I'm not sure is bringing any kind of uncertainty to the markets and that's a bit troubling so we're really need need to see what what we're gonna see.
-- -- Romney -- -- -- -- -- the hair of the dog bit me approach -- recovering I mean all that easy money problems -- got in trouble the first flight thank you David let him for being with us.
