The O.C. Mortgage Blog

CEP News, LTD.  published the brief article shared below. I just had to comment and include in my Blog page.   I am continually amazed and perplexed about how on Earth anybody could think that an upward-trend in consumer credit usage would be unexpected right now?

Haven't these statistic gathering firms and forecasters been paying attention to what they've been writing about for the past 12 to 18 months, regarding foreclosures and bailouts and lost jobs, etc.?

Helllllo, McFly!  Of course consumers and home owners have fewer options by the month. Some now with no choices left but to "supplement" their dwindling budgets and savings with increased credit card usage and debt!  Doesn't take an Econ Professor to tell the beginner loan officer that answer! 

Free Info on "Disputing Credit Reports"

I've attached the brief article  for you to read and hopefully add your comments, thoughts or opinions  to;

Consumer Credit Rises Unexpectedly

The Federal Reserve reported that consumer credit rose by $1.8 billion, against forecasts for a $5.5 billion drop.

Home sales in major U.S. metropolitan areas are up sharply compared to a year ago, Radar Logic reported on Wednesday.

Improved home affordability and Low Mortgage Rates contributed to a 7% annual gain in home sales in the 25 Metropolitan Statistical Areas (MSAs)tracked by Radar Logic's RPX housing report.

The report said 14 of the 25 MSAs saw transactions increase, with the largest gain taking place in areas with a higher percentage of foreclosed homes, such as Las Vegas, Phoenix and California.

Sales of foreclosed homes by banks, along with sales to third parties at foreclosure auctions, rose a whopping 177% in December compared to a year ago. All other sales decreased by 17%, the report said.

"As foreclosures increase and sales outside of foreclosure decline, motivated sales are starting to represent a significant percentage of the transactions we observe in several of the MSAs we track, particularly in the West," Radar Logic President Michael Feder said in a release. "As motivated sales increase, the prices they receive will likely become more the norm than the exception."

Price discounts on foreclosure-related sales range from 20% to more than 50%, Radar Logic noted.