So I decided to take a look from a different perspective. Percent change from a year ago.
Sure enough, this gives a more realistic view of what is going on in the real estate loan market. Notice that the peaks are getting lower. The peak in 2007 should come as no surprise.
The big question? Is lending going to turn negative? And what effect would that have on the economy and stocks? It would scare people to death for sure.
Next I decided to look at the 20 year view?
Hmm. This is really interesting. Look at the long downtrend that started after the stock market crash of 1987. Straight into 1993. I wonder why we didn't need TARP in those days?
No wonder houses were so cheap in the second half of the 90s. In some parts of the country (Florida, Texas) they were giving houses away. And obviously, they weren't building many new houses.
I think its time to buy a house. Looks like a real opportunity to me. Especially if you know how to go into a bank and negotiate for a house that is currently stuck in their roach motel of homes.
I also think you should be careful. It appears to me that the trend down in loans is going to continue for a while. So stay away from the temptation to buy anything associated with housing.
Look for the real opportunities.
Wireless Reading Device 
