The American Housing Payment, for Some…. Scream!!!

A little California flavor here. However, this shows the truth and fact on housing and the economy in general. In link below shows the nightmare American's are in with how much they are paying for their cost of shelter. This has always been a very crucial component of American economics to me. http://www.ocregister.com/articles/percent-365633-loan-income.html Thesis 1 on housing: We simply don't have enough qualified home buyers (excluding cash buyers) to take on the true inventory. Even with rates at 3.5% purchase applications are down year over year even though mortgage rates are over 1% lower. Thesis 1 on the economy: The after tax/expensive income American's have can't sustain a 3% plus GDP in an economy supported by consumer spending. Even with low tax rates and low-interest rates our growth has been sub par at best. This is the math side of economics, “Facts are a stubborn thing” as John Adam's once said. However, this explains the reality of the US economy and why growth and housing has been sluggish for a long time. If you're paying more than 50% of your income on housing, that takes away from spending, saving, 401K investment and paying down debt. This is why I am very cautious on housing in the long-term because when interest rates rise, we had better get more income growth to off-set the rise in rates. Logan Mohtashami is a senior loan officer at his family owned mortgage company AMC Lending Group, which has been providing mortgage services for California residents since 1988