U.S. unemployment rate climbs to 26-year high of 9.5 percent

http://news.yahoo.com/s/ap/20090702/ap_on_bi_go_ec_fi/us_economy Can someone please explain to me why they think it's a good time to buy when unemployment numbers are so atrocious? Doesn't it make sense that in an environment where banks actually expect you to have the financial ability to repay a loan that with more unemployed people there are fewer buyers. And, isn't it safe to assume that with... [more]

http://news.yahoo.com/s/ap/20090702/ap_on_bi_go_ec_fi/us_economy Can someone please explain to me why they think it's a good time to buy when unemployment numbers are so atrocious? Doesn't it make sense that in an environment where banks actually expect you to have the financial ability to repay a loan that with more unemployed people there are fewer buyers. And, isn't it safe to assume that with so many unemployed the prospects of most of them finding new jobs is bleak? If they can't find jobs they eventually burn through their "rainy day" funds and default on their mortgages. Then a year or so later the bank takes back their home which increases supply. Accordingly, it's going to take 12 to 18 months or so before the people who were laid-off this week to be foreclosed on, but their is little hope for many of them. This down cycle is going to take a long time. NYC real estate won't bottom for a couple more years. [less]