Like George Costanza, apparently housing prices do not object to double dipping. According to the S&P/Case-Shiller index of home prices in 20 cities, home prices hit a new low in February 2011, nearly surpassing the prior low set in April 2009. Prices are therefore at the second trough of a “double dip” decline, approximately 30% off of their historic high reached in April 2006. Check out "Home Prices In Double Dip" on CNN for more information and graphical proof of the disturbing trend.
Fannie And Freddie On The Firing Line
In a recent post, "Not Fade Away: Could The 30-Year Fixed Rate Mortgage Survive In A World Without Fannie And Freddie," I discussed the growing drumbeat surrounding the efforts of some members of Congress and the administration to do away with, or at the very least reign in, Fannie Mae and Freddie Mac. Now, Republicans in the House of Representatives have taken the first steps towards this goal, putting forth legislature that would reduce the role both enties play in the market and cut the pay of their executives.