Weekly recap (8/9/10-8/14/10)by Tim Manni
Time for a look back at another busy week on the blog:
I wasn’t surprised at all when I read (and I have read it many times before) that many economists feel that the economy would be better off if policy makers stepped aside and let the natural functions of the market work themselves out.
I want to find out if you agree or disagree with what many economists are saying. Moving forward, do you think the economic recovery would fare better a) with Washington’s continued support, or b) without their support?
For weeks now, we’ve seen mortgage rates fall to all-time low after all-time low. Some of my recent headlines have shown just how uneventful, and frankly unproductive, this era of historically-low mortgage rates has been.
However, some mortgage lenders are encouraged that these rock-bottom rates are finally starting to drum up some serious activity, mainly in the refi department. It’s more than just the rates that are attracting refi customers nowadays, notes Nick Timiraos of the Wall Street Journal, it’s the fact that refinancing is getting cheaper.
The monetary support for housing keeps on growing, and so does the list of states hardest-hit by unemployment. The Treasury Department announced two complimentary housing-support programs on Wednesday aimed at helping unemployed borrowers make their payments on time, find a job and attend job training. These two programs are in addition to the relief already being provided to unemployed borrowers in 10 states.
Tuesday’s announcement was a two-pronged attack to support unemployed homeowners in 17 states plus Washington D.C. which have unemployment levels at or above the national average.
After the conclusion of the Federal Open Market Committee’s (FOMC) one-day meeting on Tuesday, the Fed announced measures that will help serve to keep mortgage rates low if need be.
The fact that historically-low mortgage rates have made little waves outside of the refinance market, you may be wondering, “What good are even-lower mortgage rates going to do for our housing market?”
Walking away from your home loan shouldn’t be a decision that’s made overnight. Strategic defaults can come with a host of short- and long-term repercussions, including some of which you might not be aware of. There are both pros and cons to walking away from your mortgage, and it’s a good idea for you to be aware of both before you consider a strategic default as the solution to your problem.
There’s little new or emerging news in the world of mortgage rates. As we examine the movement and behavior of the economic markets from the week prior (just as we do every Monday), we’re faced with the same old story: low mortgage rates and a weak recovery. Last week’s unemployment report only served to maintain the current environment of low rates and a tepid recovery.
“Prospects are not improving for a speedy return to quicker growth,” according to HSH.com’s latest Market Trends Newsletter, “but that is serving to keep mortgage rates at fantastic levels.”