its simple really, when rates rise the cost of borrowing will increase, already 15 percent of those that qualified to buy a home just 3 months ago have been priced out of the market due to rising rates. home builders are a leading indicator for this and their stocks are down 30 percent plus.
list of -ves rising rates, high standards by banks on loan applicants, bigger down payments for home purchasing, government requirements to control past abuses by banks such as SNV which would have been history without a tax payer bailout, high unemployment with too many part time jobs......please the party is over and SNV missed the run due to their delay in paying back TARP. The good times rolled on........at this point holding this stock is a pure gamble given that it sells at a higher price compared to peers, its selling above book value, earnings were more from cost cutting and tax claims rather than loan growth...........FACE THE FACTS OR BELIEVE YOUR FREAKIN FICTION Less
Today's, 8/22, first Yahoo screen, news articles.
"If home sales can handle higher rates, so can the Fed."
Matt Nesto / Breakout, approx 11:30.
So this partially refutes your premise.
Last week there was a news article stating 50% (?) of home sales are not being financed but the buyer is paying cash.
If you sold your SNV position, then why do you continue to lecture your flawed logic on this MB?
i would really like to know.
if 50 percent of homes are being purchased by cash buyers how do banks make money? what happens when the cash overseas buyers go away or when newly formed hedgefund sponsored REITS decide to dumb their inventory and move to the short side..............check today`s headlines on new home sale down 13 percent.
well with such a strong belief in the failure of snv you should short even more than the 15000 you claim to have all ready personally I am just keeping my shares so I can buy a 32 ford
"Home improvement chain Lowe's rose 4.9 percent to $46.27 after it reported a bigger-than-expected rise in profit and sales as the housing market's recovery encouraged people to spend more on their homes.
Shares of Toll Brothers rose 1 percent to $31.97 after the largest U.S. luxury homebuilder reported a jump in revenue as the recovery in the housing market gathered pace."