Various reports show that the market for previously-owned homes climbed nearly 10% in September, the fourth straight monthly increase. It is not just sale volumes that are high, but the price of homes is showing double-digit gains. If you just look at volume and prices, the U.S. residential real estate market looks as rosy as every, spurred on by very low interest rates from the same Federal Reserve which once-upon-a-time was tasked with preventing bubbles above all else but during the last three decades has arguably been the chief cause of them. That’s the sunny side of the street.
The shady side of the street is much different. Mortgage delinquency rates are at a 20-year high ⸺ worse than the 2008 high if that tells you anything (and it should), and there are predictions that at least two million mortgages will