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November 1st, 2008 (Modified on May 29th, 2009)

Some Glimmers of Light



Our friends at Calculated Risk check out a few new indicators and, despite the mixed bag, I think they came away a little more optimistic:

LIBOR declined today from Bloomberg…

The yield on 3 month treasuries declined slightly to 0.42% from 0.48%. (slightly worse)…

The TED spread: 2.60, down from 2.70 (Slightly better)…

Meanwhile, in case you hadn’t heard, California real estate sales are really taking off:

An estimated 40,317 new and resale houses and condos sold statewide last month [September]. That was up 6.1 percent from 37,988 in August and up 64.8 percent from 24,460 in September last year. California sales for the month of September have varied from last year’s record low to a peak of 69,304 in 2003, while the average is 45,035.

DataQuick notes, unsurprisingly, that over half of the resales were foreclosed homes. But as we said in a recent Market Trends, “So what?”

Government intervention aside, the market is functioning as it should: homes will sell when some form of fair market price is reached. It also disproves claims that the mortgage market is hopelessly broken or shut down; most, of not all, of the (probable) five million plus new and existing homes that will be sold in this year to new owners need mortgages, and that financing has to come from somewhere. Older borrowers who had mortgages in the 1960s, 1970s, 1980s, and even the 1990s find today’s ‘highly restrictive’ underwriting standards to be fairly normal and customary, and although we may be a long way from ‘healed,’ with many more issues to be addressed as we go along, there is still a market for mortgages and homes in America.

California more or less led the on the way down to real-estate hell; it stands to reason it’ll be a leading indicator, of sorts, as the market slowly recovers.

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3 Responses to “Some Glimmers of Light”

  1. JOAN Says: November 2nd, 2008 at 1:15 am


  2. JOAN Says: November 2nd, 2008 at 1:16 am


  3. Tim Manni Says: November 3rd, 2008 at 2:59 pm


    We’re glad we could help. Thanks for reading and commenting. We hope to hear from you again soon.

    Thanks again,

    Tim (HSH)

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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