There’s a year to go before the next presidential election, but already a leading issue among voters is fairly obvious: the housing crisis.
A new survey by Move,Inc. shows that almost 70 percent of all voters said housing will be an “important consideration” in the next election. The survey found that: Read the rest of this entry »
Back on July 19, we wrote a post titled “It takes more than just low mortgage rates.” Despite mortgage rates falling even further, mortgage activity was the lowest it has been in over a decade:
It takes a lot more than just low mortgage rates to spin the wheels of the housing market; and that couldn’t be more apparent than it is right now. Mortgage rates continue to fall week after week — according to HSH.com the weekly average for the 30-year Conforming fixed rate fell to 4.69% (week ending 7/16/10) — and yet the Mortgage Bankers Association reported the lowest level of mortgage application activity since 1996.
Each post that we wrote this week highlights a different problem that is holding back this country’s housing market: low rates aren’t enough, today’s mortgage market is mostly made up of the haves and the have nots, lowering home prices won’t create a more stable market and yesterday’s post discussed how the American dream of homeownership doesn’t have to turn into a nightmare. Each one of those posts identified something different that’s going wrong with housing.
But what good is identifying a problem if you can’t think of a way to fix it?
Economist Mark Zandi encouraged the most unlikely group of professionals to jump on the ‘eliminate mortgage deductions’ bandwagon: Realtors. Much to their surprise, or should I say chagrin, Zandi told his audience that the housing sector has received enough support, “it’s time to give back”:
And the industry shouldn’t be shy about its support for such action either, Mr. Zandi argued Wednesday in Washington. Rather, it should “get out ahead of this” and “lead the way,” he said.
Yesterday we wrote that “We need to consistently add in excess of 250,000 — 300,000 jobs each month before the unemployment rate will show any true signs of improvement.” March’s numbers were not only well under that level, they failed to show any signs of consistency:
From October 2009 until March 2010, each month’s numbers have alternated between losses and gains.
Like anything else, it all depends on who you ask. The Senate is set to vote today on their version of the Economic Recovery and Reinvestment Act which includes a non-refundable tax credit of 10% of a home’s purchase price — capping at $15,000. From a homebuyer’s perspective, the Senate’s version is undoubtedly the better deal as opposed to the House’s $7,500 tax credit that has to be repaid over 15 years.
Some critics fear the Senate’s aid to homebuyers is not only a waste of money, it’s addressing the wrong issues. For months many of the government initiatives aimed at righting the housing market — specifically foreclosures — were only aimed at borrowers who had fallen behind on their monthly payments. Critics say this tax credit is abandoning that focus, giving aid to borrowers who can already qualify for today’s strict lending standards: Read the rest of this entry »
The holidays didn’t keep mortgage borrowers too busy to deluge lenders with applications. Most were for refinance, unsurprisingly, but the Mortgage Bankers Association reported a decent amount of interest in purchase mortgages as well, noting that “The refinance share of mortgage activity decreased to 82.9 percent of total applications from 83.2 percent the previous week.” Which means that the pace in homebuying is picking up… very slightly.
Unfortunately, a lot of would-be refi borrowers are getting a rude reality check:
Today’s issue of HSH’s Market Trends Newsletter focuses on last week’s sharp decline in mortgage rates:
HSH’s measure of the overall cost of mortgage money — our Fixed-Rate Mortgage Indicator (FRMI) — declined by 37 basis points (.37%), finishing the survey week at 6.71%. The overall average for hybrid 5/1 ARMs rang in at 6.69%, down just 11 basis point on the week. HSH’s FRMI includes conforming, jumbo and expanded conforming mortgage prices. See the latest trending charts for these and other series.
This week’s issue also discusses various economic reports released last week, analyzing the impact on consumers: Read the rest of this entry »
Eight times per year the Federal Reserve Board publishes the Beige Book, a report of economic activity from the 12 Federal Reserve Districts:
Reports from the twelve Federal Reserve Districts indicate that the pace of economic activity has been slow in most Districts. Many described business conditions as “weak,” “soft,” or “subdued.”
Jim Cramer, host of CNBC’s Mad Money, feels the negative sentiment on Wall Street is completely overblown. Referencing an article that appeared in the Wall Street Journal yesterday, Cramer said articles like this one dictate when an abundance of bad news turns good. According to Cramer, when these types of negative stories begin to pervade the market, a positive turnaround is close by. Here’s why:
1) The housing index increased to 131 from a 52-week low of under 94, great news for the market! Recovery in many, if not every sector of the economy rides on the success of the housing market.
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.
