Grand Rapids, MI -- (SBWIRE) -- 10/01/2010 -- According to a Bloomberg Businessweek report published September 21, 2010, U.S. home seizures reached a record high in August for the third time in five months. The article goes on to say, “Foreclosures are contributing to a growing housing supply that may add as many as 12 million homes to the U.S. market.” The article also attributes lessening demand to high unemployment and the expiration of the federal tax credit for home buyers.

This is a sign of recovery?

Financial advisor Dennis Tubbergen has been watching the housing market and discussing this topic and many others in his online blog and in his monthly newsletter Moving Markets. Tubbergen has been saying for months, that in his opinion the housing market cannot dramatically improve until unemployment numbers become substantially better and the widespread, excessive debt in the U.S. is dealt with in an acceptable manner.

Tubbergen, who is CEO of USA Wealth Management LLC, a federally registered investment advisory company, also gives this gloomy forecast: The housing market is not likely to bottom until at least 2012.

“The Bloomberg article backs up this forecast,” notes Tubbergen. “Unemployment and housing are closely linked. Between these two economic indicators, unemployment is the leading indicator.”

There are a large number of mortgages whose interest rates will reset in the next 5 years. A large number of these resets will occur in 2010, 2011, and the first half of 2012.

“Frankly, in my opinion, it doesn’t matter what Congress and the present administration do to try to stop the negative influence of the mortgage rate resets that will occur this year and next year,” explains Tubbergen. “The direction of the housing market, unfortunately, is not likely to change.”

For more information on Dennis Tubbergen’s views, visit http://www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.