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  • Thu, Jul 1 2010
  • 8:31 AM » Fannie Mae: Serious Delinquency rate declines in April
    Published Thu, Jul 01 2010 8:31 AM by Calculated Risk Blog
    Click on graph for larger image in new window. Fannie Mae today that the rate of serious delinquencies - at least 90 days behind - for conventional loans in its single-family guarantee business decreased to 5.30% in April, down from 5.47% in March - and up from 3.42% in April 2009. "Includes seriously delinquent conventional single-family loans as a percent of the total number of conventional single-family loans." This is similar to the from Freddie Mac (although Fannie Mae releases data one month later). Just as for Freddie Mac, some of the earlier rapid increase was probably because of foreclosure moratoriums, and distortions from modification programs because loans in trial mods were considered delinquent until the modifications were made permanent. More modifications have become permanent (and no longer counted as delinquent) and Fannie Mae is foreclosing again (they have a record number of REOs) - so there has been a slight decline in the delinquency rate.
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 8:31 AM » Lawler: Residential Listings in June
    Published Thu, Jul 01 2010 8:31 AM by Calculated Risk Blog
    CR Note: How the NAR calculates existing home inventory is a bit of a mystery. Housing economist Tom Lawler has been tracking inventory several different ways. The following post is from Tom Lawler: This morning there were 3,973,439 residential listings on, up 1.6% from late May and up 0.3% from a year ago. Listings in California, which declined sharply during 2009, were up 2.3% on the month and up 7.4% from a year ago. States with especially large monthly increases in listings including Washington (14.5%, after an 8.4% drop in May – Washington data are whacky!), Alaska (5.1%), Maine (4.9%), and Colorado (4.3%). Florida listings were up 0.3% on the month but down 9.5% from a year ago. Click on graph for larger image in new window. I’m not sure how often listings by states are “refreshed,” or whether the updates are identical across states. However, the data appear to “synch up” better to reports from various MLS than do the monthly National Association of Realtor data – which often displays monthly swings completely out of whack with the various “inventory trackers” that I and others follow. The NAR wasn’t willing to give me details of its methodology, but it apparently uses the sample data from various realtor associations/boards/MLS, and it may estimate the national totals with gross-ups based on “months’ supply.” Whatever the case, the monthly NAR numbers appear to have “spurious volatility” unrelated to actual swings in listings. CR Note: This seems to suggest an increase in inventory in June. Using isn't perfect, but it is a consistent and transparent method.
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 8:31 AM » House Prices Are Still Too High
    Published Thu, Jul 01 2010 8:31 AM by The Big Picture
    ~~~ Source: Henry Blodget Yahoo Tech Ticker, Jun 30, 2010 11:00am’re-going-to-fall-513154.html
    Click Here to Read the Full Article

    Source: The Big Picture
  • 8:31 AM » City Unemployment Rates: Vegas Struggles, Washington on Top
    Published Thu, Jul 01 2010 8:31 AM by WSJ
    Fifteen of the 49 largest cities in the U.S. saw year-over-year declines in their unemployment rates in May, according to new Labor Department data, even as the unadjusted national rate -- at 9.3% -- was 0.2 percentage points above its year-ago level.
  • 8:31 AM » Golden State: Builder Raises Cash With Eye on California Recovery
    Published Thu, Jul 01 2010 8:31 AM by Google News
    In this post-crash world, digging up $100 million for a home builder is not an easy task.
  • 8:31 AM » ECB Lends 111 Billion Euros to Smooth Loan Expiry (Update1)
    Published Thu, Jul 01 2010 8:31 AM by Business Week
    The European Central Bank said it will lend banks 111.2 billion euros ($136.5 billion) for six days to help them cope with the expiry of its landmark 12-month loan today.
    Click Here to Read the Full Article

    Source: Business Week
  • 8:30 AM » List of Big Quarterly Percentage Movers in S&P
    Published Thu, Jul 01 2010 8:30 AM by Google News
    Howard Silverblatt, who we like to call the high priest of the S&P 500 stock index, blasted out some of his quarterly notes on performance after the close of trading Wednesday. Here were some big movers.
  • 8:29 AM » On Recent FAJ Article: Dimensioning the Housing Crisis
    Published Thu, Jul 01 2010 8:29 AM by Seeking Alpha
    Laurie Goodman has written an in the May/June 2010 issue of the Financial Analysts Journal. Her analysis of the problems underlying the housing market are spot on. The article is repleat with charts and source documentation. Ms Goodman expects that more than 20 percent of all mortgaged home owners will fall into foreclosure. She has two recommendation that I disagree with: first, a modification program that specifically applies to those with negative equity to reduce supply and second, expansion of credit available to investors to increase demand. I believe the federal government has attempted both to no avail. Banks aren't going to make loans until their balance sheets are cleaned up which won't happen until they complete the process of foreclosure and sale of reos. Investors aren't likely to step up to the plate until housing prices bottom with some greater degree of certainty.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:28 AM » Why Banks Are Self-Defeating on Housing
    Published Thu, Jul 01 2010 8:28 AM by Seeking Alpha
    submits: Why are banks so bad at short sales, even when such things are clearly in the banks’ interest? has a spectacularly good comment which is worth elevating to a blog entry of its own: It’s tempting to lay the blame on servicers’ lack of incentive to process these short-sales speedily. Or to suspect that banks aren’t eager to speed the process, because they’d like to wait to recognize the losses until their balance sheets are a little more robust, even if that ends up costing them more in the long run. And those are real problems, but they’re not the whole picture.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:27 AM » Fannie, Freddie trip up a program to increase homes' energy efficiency
    Published Thu, Jul 01 2010 8:27 AM by
    An Obama administration program to help U.S. --
    Click Here to Read the Full Article

  • 8:27 AM » What Does "Housing’s New Era" Mean For You?
    Published Thu, Jul 01 2010 8:27 AM by National Housing Conference
    You may have noticed the video we’ve been promoting for the last few weeks, called “.” The video features Maureen Friar, NHC’s president and CEO, explaining the importance of affordable housing in changing times, and how to leverage new and existing coalitions to achieve new goals. NHC created this video, in partnership with . and America’s , to help housing advocates make their case. Let’s be honest: housing has been taking a lot of heat in the press, and on Capitol Hill, over the past several years. Some folks are arguing that affordable housing shouldn’t be a funding priority in the midst of all of the other challenges facing the nation. This video explains why housing remains essential for families, and emphasizes why it must be a first-tier national priority as one of the primary drivers of the economy. The financial disaster and the outbreak of foreclosures have left people struggling more than they have in almost a century. Research coming out of the Center for Housing Policy and dozens of other organizations is showing that a safe, decent affordable rental or owned home is growing farther and farther out of reach for millions of Americans. Affordable housing is about fulfilling people’s dreams, and making thriving communities possible all across the country. Housing has always been the cornerstone of our economy, and it is a basic need that serves as the starting place for personal health, growth, and well-being. As the video makes clear: It’s about people. The people and partnerships that make affordable housing possible and the families and individuals who live there. If you’re reading this blog chances are you care about housing, for one reason or another. If so, NHC, MERS Inc., and the FHLBanks made this video for you, to use as a resource to build support for and get the message out about the issues surrounding affordable housing. You can use it to start conversations at staff meetings, community discussions, coalition meetings, or just to share with a friend...
    Click Here to Read the Full Article

    Source: National Housing Conference
  • 8:27 AM » NCSHA Supports Increased FHA Multifamily Loan Authority
    Published Thu, Jul 01 2010 8:27 AM by National Council of State Housing Agencies
    NCSHA joined a , signed by 22 national organizations, including the Mortgage Bankers
    Click Here to Read the Full Article

    Source: National Council of State Housing Agencies
  • Wed, Jun 30 2010
  • 5:33 PM » Senate combines jobless benefits, homebuyer credit
    Published Wed, Jun 30 2010 5:33 PM by
    Senate Democrats are trying to jump-start their stalled election-year jobs agenda while saving unemployment benefits for hundreds of thousands of laid-off workers. The latest plan combines in one bill the unemployment benefits with an extension of a popular tax credit for people who buy new homes.
    Click Here to Read the Full Article

  • 2:12 PM » Dodd: Wall Street Reform Conference Committee Will Be Reopened
    Published Wed, Jun 30 2010 2:12 PM by The Huffington Post
    UPDATE - 4:19 p.m. - The conference committee will meet at 5:00 Tuesday afternoon to make final changes to Wall Street reform. Ahead of the gathering, Rep. Barney Frank (D-Mass.) told reporters that he had been informed that Sen. Maria Cantwell (D-Washington) would now be voting for the final bill, though he added that he had not spoken to her. A Cantwell spokesman didn't immediately respond a call, but earlier in the day, Cantwell told HuffPost that she was reviewing the legislation to determine whether changes she had sought in the derivatives section could be made during the rule-writing process by the Commodity Futures Trading Commission. He had also been told, he said, that Sens. Olympia Snowe (R-Maine) and Susan Collins (R-Maine) were on board. * * * * * UPDATE - 2:53 p.m. - Sen. Chris Dodd (D-Conn.) told reporters that he plans to re-open conference committee negotiations Tuesday afternoon in an effort to win the GOP votes needed to overcome a filibuster. Sens. Scott Brown (R-Mass.), Olympia Snowe (R-Maine) and Susan Collins (R-Maine) objected to a fee imposed on major banks. Collins told reporters she met with Dodd for an hour Tuesday morning to outline her concerns. Without the fee, the bill would increase the deficit by some $20 billion. Dodd proposed raising roughly 90 percent of that by ending the TARP program early and by increasing FDIC fees on all banks. * * * * * Negotiators have yet to file the Wall Street reform conference report on the House floor, meaning that Democrats can still reopen bicameral conference committee negotiations over the shape of the final bill. House leaders are waiting to file until they have a signal from the Senate that Democrats in the upper chamber have the 60 votes needed to overcome a GOP filibuster, a spokesman for Rep. Barney Frank (D-Mass.) told HuffPost. "We have a pay-for problem," he said. Democrats are having difficulty finding the 60 votes because Republicans who previously voted for financial reform...
    Click Here to Read the Full Article

    Source: The Huffington Post
  • 2:11 PM » Builder Price Cuts Could Delay Sector’s Recovery
    Published Wed, Jun 30 2010 2:11 PM by Google News
    Builder Lennar Corp. recently cut some Las Vegas prices more than 15%, but that isn't enough to encourage buyers.
  • 10:18 AM » Should Lenders Go After Borrowers Who ‘Walk Away’?
    Published Wed, Jun 30 2010 10:18 AM by Google News
    Fannie Mae's announcement that it would seek tougher penalties against borrowers who default on mortgages that they can afford to pay has sparked a range of reactions.
  • 10:17 AM » Housing + Wall Street Reform: A Match Made in Heaven? (Updates and Poll)
    Published Wed, Jun 30 2010 10:17 AM by National Housing Conference
    As you know, Congress approved a version of Wall Street Reform out of conference committee last week. The prospects for quick passage of the bill are , with the Senate reopening debate to secure enough support. Nonetheless, we are still just a few votes away from some of the most significant consumer protections in 80 years. And housing is right in the thick of it. The bill is designed to restore accountability, transparency, and security to the financial system – and in theory, make homeownership a safer investment for buyers and lenders alike. But some that these reforms could end up costing consumers more. Tell us what you think: Will financial reform be good for the housing market? <br /> <a href="">Will financial reform have a positive or negative effect on the housing market?</a><span style="font-size:9px;"><a href="">survey software</a></span><br /> Below are some of the provisions currently in that could have the greatest effect on affordable housing and the broader housing market. Read them over, and then let us know whether you think they’re a good idea. Mortgage Reform : The bill would force lenders to guarantee that a borrower will be able to repay before giving out a mortgage loan. It would also penalize irresponsible lending, require additional disclosures, and create a Federal Office of Housing Counseling. The legislation also requires lenders to retain 5 percent of the risk related to mortgage loans, effectively giving them “skin in the game.” The idea here is to keep lenders invested in the long term security of loans. The question (for you) is whether it would make it harder for consumers to get the loans they need...
    Click Here to Read the Full Article

    Source: National Housing Conference
  • 10:17 AM » Goldman Sachs Shorted 1% of its Mortgage Bonds, CDOs, Cohn Says
    Published Wed, Jun 30 2010 10:17 AM by Business Week
    Goldman Sachs Group Inc. bought protection against a decline in just 1 percent of the mortgage- backed securities the company underwrote since late 2006, according to President and Chief Operating Officer Gary Cohn.
    Click Here to Read the Full Article

    Source: Business Week
  • 8:44 AM » Renovation Projects For Older Housing Must Follow EPA Rules
    Published Wed, Jun 30 2010 8:44 AM by Google News
    Buyers, owners, and managers of older housing (pre 1978) need to be aware of recently-effective Environmental Protection Agency (EPA) rules regarding renovation projects in such units. In 2008 the EPA adopted the Lead-Based Paint Renovation, Repair and Painting Program Rule. Certain requirements of that rule became effective April 22, 2010
  • 8:44 AM » First Time Homebuyer Traffic Plunged in May
    Published Wed, Jun 30 2010 8:44 AM by
    Campbell/Inside Mortgage Finance of Real Estate Market Conditions reports that homebuyer declined in May, as would be expected with the end of the latest federal home purchase tax credit. The most dramatic drop was with first time homebuyers, which was the category that led in home purchases the past several months. First time homebuyers averaged 45% of the purchases for the past three months, while existing home owners made an average of 37% of the purchases and investors have been holding steady at about 18%. The implication is that the most active buyer segment for homes may be drying up after two rounds of federal tax credits. The exception is in California where first time homebuyer traffic remain higher than the rest of the country, although lower than April, apparently due to the start of a $10,000 state income tax credit for first time homebuyers in that state on May 1. Rating: 0.0/ 10 (0 votes cast) After reading this article, people also read: Related posts: Post Permalink: Permalinks: - - - - Copyright © by Author: John Lounsbury; Tags: , , ,
    Click Here to Read the Full Article

  • 8:12 AM » Psychology Cheat Sheet
    Published Wed, Jun 30 2010 8:12 AM by The Big Picture
    Today’s infoporn comes to use via the Hoffman Brothers at : Its a pretty variant on the we have shown in the : >
    Click Here to Read the Full Article

    Source: The Big Picture
  • 8:12 AM » Commercial Mortgage-Backed Bonds Make a Comeback
    Published Wed, Jun 30 2010 8:12 AM by NY Times
    Investors have returned to the mortgage-backed market, as commercial property prices are perceived to have hit bottom.
  • Tue, Jun 29 2010
  • 6:10 PM » Financial regulatory reform: Not over yet
    Published Tue, Jun 29 2010 6:10 PM by Reuters
    It seems that financial regulatory reform is not a done deal after all: Paul Kanjorski says that the reconciliation negotiations might be reopened, is looking to possibly beef up the FDIC enormously, and Democrats are whether they need to remove $19 billion in new bank taxes in order to pass Republican procedural hurdles in the Senate. It would be a fiasco of tragic proportions if the banks managed to remove these taxes from the final bill, essentially absolving themselves from cleaning up after their own mess. The arguments against the taxes are weak indeed: either you simply oppose all taxes on principle (which seems to be the Scott Brown stance, and which is fiscally disastrous), or else you’re forced into corner. Carney is worried that we don’t know exactly where the tax will be applied — but that’s a feature, not a bug. Setting up the tax in great deal ex ante is essentially just asking banks to spend millions of dollars on tax consultants who can help them skirt the new levies. And as the risks in the system evolve and change, so to should the way that they’re taxed. It’s right and proper that the newly created Council for Financial Stability will be charged with taxing systemic risk, rather than having a bunch of politicians try to do so at the beginning and then watch as the banks and other financial institutions nimbly sidestep the new taxes. An increase in the FDIC premium would be a gift on a platter to banks like Goldman Sachs and Morgan Stanley which don’t have insured deposits — not to mention non-bank players like Citadel which are systemically very important. I’m unclear on what exactly this Republican “procedural hurdle” is — I thought that after reconciliation, you just needed a simple majority to pass a bill. But I’m getting very annoyed about it.
  • 5:23 PM » Is Home Ownership an American Right?
    Published Tue, Jun 29 2010 5:23 PM by CNBC
    Today we begin a series on CNBC called The Housing Fix. To be honest, it grew out of our need to look at the biggest elephant in the home today: Fannie Mae and Freddie Mac.
  • 1:59 PM » Consumer Confidence Plummets in June
    Published Tue, Jun 29 2010 1:59 PM by Calculated Risk Blog
    From the Conference Board: The Conference Board Consumer Confidence Index® which had been on the rise for three consecutive months, declined sharply in June. The Index now stands at 52.9 (1985=100), down from 62.7 in May. ... Says Lynn Franco, Director of The Conference Board Consumer Research Center: “Consumer confidence, which had posted three consecutive monthly gains and appeared to be gaining some traction, retreated sharply in June. Increasing uncertainty and apprehension about the future state of the economy and labor market, no doubt a result of the recent slowdown in job growth, are the primary reasons for the sharp reversal in confidence. Until the pace of job growth picks up, consumer confidence is not likely to pick up.” I rarely mention consumer confidence because it is mostly a coincident indicator, but this is quite a miss (expectations were for about the same level as May).
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 1:59 PM » State and Local Tax Revenue increased slightly compared to Q1 2009
    Published Tue, Jun 29 2010 1:59 PM by Calculated Risk Blog
    The Census Bureau this morning that state and local tax revenues grew 0.8% in the first quarter 2010 compared to Q1 2009. This was the second straight quarter of growth compared to the same quarter of the previous year. Individual income tax increased 2.7% compared to Q1 2009. General sales tax revenues increased 0.3%. Corporate income tax declined 5.4%. Property taxes declined 0.6% (the first year-over-same quarter decline since 2003). Click on graph for larger image in new window. This graph shows state and local tax revenue on a rolling 4 quarter basis (this removes seasonality). The three main sources of revenue are property taxes, sales taxes and personal income taxes. Property taxes tend to be the most stable, even with the sharp drop in real estate prices. Most of the decline in revenue during the recession came from sharp declines in personal income and sales taxes.
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 1:59 PM » Real Estate New: A Look at Case-Shiller, by Metro Area (June Update)
    Published Tue, Jun 29 2010 1:59 PM by Google News
    Here is a look at real-estate news in today's WSJ.
  • 8:29 AM » Chicago Fed: Economic Activity increased in May
    Published Tue, Jun 29 2010 8:29 AM by Calculated Risk Blog
    Note: This is a composite index based on a number of economic releases. From the Chicago Fed: The index’s three-month moving average, CFNAI-MA3, rose to its highest level since March 2006, increasing to +0.28 in May from +0.05 in April. May’s CFNAI-MA3 suggests that growth in national economic activity was above its historical trend. Moving above +0.20, the index’s three-month moving average in May also reached a level historically associated with a mature economic recovery following a recession. Click on table for larger image in new window. This graph shows the Chicago Fed National Activity Index (three month moving average) since 1967. According to the Chicago Fed: A zero value for the index indicates that the national economy is expanding at its historical trend rate of growth; negative values indicate below-average growth; and positive values indicate above-average growth. This is the highest level in the index since March 2006, and indicates growth slightly above trend.
    Click Here to Read the Full Article

    Source: Calculated Risk Blog
  • 8:29 AM » First-Time Homebuyer Traffic Nose-Dive
    Published Tue, Jun 29 2010 8:29 AM by The Big Picture
    First-time buyers purchased 46% of , down from 49% in April. We all knew that first-time home buyers activity was going to fade after the tax credit expired. But there was not much of a way to quantify exactly what the impact would be beforehand. We could wait for subsequent monthly sales data to reflect that weakness — but that is hardly much of a solution. Enter the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions, a proprietary survey of 1,500 real estate agents nationwide. The results of the first survey are out, and not surprisingly, it indicates that first-time “ homebuyer traffic dropped sharply in May. This drop implies fewer signed contracts in June and fewer closed transactions in July and August. ” > > Given its fiscal condition, one wouldn’t imagine California could afford its own own first-time home buyers tax break, but somehow, they came up with one. California enacted its own $10,000 credit on May 1 — the day after the federal tax credit expired. Not surprisingly, Cali fared better than the rest country in terms of first-time home buyer activity. As the chart below shows, California’s first-time homebuyer traffic did much better than the rest of the nation: > > Sources: Campbell/Inside Mortgage Finance Survey, June 21, 2010 Home buyer Traffic Tumbled in May as First-Time Shopping Stalled ()
    Click Here to Read the Full Article

    Source: The Big Picture
  • 8:29 AM » Mauldin: A Closer Look at the 2nd Leg Down in Housing
    Published Tue, Jun 29 2010 8:29 AM by The Big Picture
    Quickly, I will be on Larry Kudlow’s show tonight (Tuesday, June 28), which is at 7 pm Eastern. Larry has promised that we will spend some quality time on some of the current issues facing us. See you there! And now, let’s jump in to this week’s Outside the Box. Last January 2009, the Outside the Box featured FusionIQ’s quant models that blend both fundamental and technical metrics to determine the strength of 8,000 equities as well as the overall markets (). You may recall that CEO Barry Ritholtz, (and good friend and Maine fishing buddy) had been bearish throughout 2008, and was still negative on stocks back in January 2009. Relying mostly on the FusionIQ metrics, Ritholtz flipped bullish on March 2009, and stayed bullish the rest of the year. The firm began raising cash in Q1 of 2010, and by the time the first quarter was over, was only 50% long. They sold more stock in April, and in a bit of good timing that Ritholtz will tell you was “dumb lucky” went to 100% cash on May 5, 2010 – the day before the 1,000 point flash crash. Some economists see the world from a 30,000 foot overview (that would be me); other analysts work bottoms up. The quants – mathematical analysts whose world view consists of granular data –crunch numbers to reveal what it may about markets and economies. Ritholtz is one of the few that combines all three. This has led to prescient economic and market calls that made his clients and readers money, and kept them out of harm’s way when things got ugly. Indeed, noted that “many market observers predict tops and bottoms, but few successfully get their timing right. Jeremy Grantham and Barry Ritholtz sit in the latter category. . .” heady company indeed. Regarding the market calls, Ritholtz said “We cheat. We use everything that we know works. Macro economics, technicals, fundamentals, valuation, quantitative – it all goes into the mix. That’s our secret sauce.” Ritholtz added “I don’t know why other people limit themselves to just one discipline ...
    Click Here to Read the Full Article

    Source: The Big Picture
  • 8:29 AM » States’ Budget Woes Only A ‘Modest’ Drag, San Francisco Fed Reports Says
    Published Tue, Jun 29 2010 8:29 AM by WSJ
    Financial problems at the state level are unlikely to send the U.S. economy back into recession, a report from the Federal Reserve Bank of San Francisco said Monday.
  • 8:29 AM » NY Fed Tweaks Agency MBS Program
    Published Tue, Jun 29 2010 8:29 AM by WSJ
    The Federal Reserve Bank of New York is making some technical changes in how it handles its agency mortgage-backed securities buying program, to smooth over settlement and supply issues.
  • 8:29 AM » How Far Underwater Do Borrowers Sink Before Walking Away?
    Published Tue, Jun 29 2010 8:29 AM by Google News
    A Federal Reserve study finds that "strategic" defaults accelerate when a borrower owes 62% more than the value of his or her home.
  • 8:29 AM » Real Estate News: Home-Buyer Tax Credit Extension Unlikely
    Published Tue, Jun 29 2010 8:29 AM by Google News
    A daily roundup of real estate news from the Wall Street Journal.
  • 8:29 AM » The Future of Housing, Near and Far
    Published Tue, Jun 29 2010 8:29 AM by Seeking Alpha
    The housing market is and always has been loosely connected to the long-term trends in employment and the economy. Homes prices move up as more jobs are created because there are more households created and those family units need housing. As the economy grows and incomes improve it creates more demand for bigger and newer homes by the newly affluent. But the reverse is also true, at least if the trends persist for more than a few months in duration. When people lose their jobs, they can no longer buy a home, removing demand from the marketplace. If those unemployed remain so for much more than a year, a percentage of those who have mortgages will lose their homes to foreclosure. If the number of families losing their homes is greater than the number of buyers in the market for a new home, supply rises and prices usually fall (or at least move up much more slowly). We experienced a bubble in housing and it burst. But now we are about to experience the spiral effect that rising foreclosures and lingering unemployment create.
    Click Here to Read the Full Article

    Source: Seeking Alpha
  • 8:29 AM » Financial Amplification Mechanisms and the Federal Reserve’s Supply of Liquidity during the Crisis.
    Published Tue, Jun 29 2010 8:29 AM by NY Fed
    Asani Sarkar and Jeffrey Shrader. Financial Amplification Mechanisms and the Federal Reserve’s Supply of Liquidity during the Crisis. Federal Reserve Bank of New York Economic Policy Review , Forthcoming .
  • 8:29 AM » If You Want To End Homelessness, Prevent It First
    Published Tue, Jun 29 2010 8:29 AM by National Housing Conference
    RealEstateRama that the U.S. Department of Labor (DOL) will invest $2 million dollars in its , for veterans “at risk” of homelessness. While this DOL announcement doesn’t appear to be officially associated with the Administration’s new , it speaks to an important reality about the homelessness problem: to beat it, you’ve got to route it out before it begins. Veterans, who constitute 20% of the homeless population, are an example of a group that can sometimes fall through the cracks during transitional periods in their life (whether it’s a return from time abroad or from incarceration, or any other time they’re struggling). Of course it’s true that everybody deserves a second chance, especially people who've sacrificed so much in the name of their country. Yet when it comes to the homelessness epidemic, people deserve a fair shake at avoiding the problem the first time around.
    Click Here to Read the Full Article

    Source: National Housing Conference
  • 8:29 AM » Guest Post: On A Path to Ending Homelessness
    Published Tue, Jun 29 2010 8:29 AM by National Council of State Housing Agencies
    See original post .
    Click Here to Read the Full Article

    Source: National Council of State Housing Agencies
  • 8:29 AM » G-20 Leaders Aim for Balanced Growth, Revival of Jobs
    Published Tue, Jun 29 2010 8:29 AM by IMF
    G-20 leaders backed measures to sustain the global recovery and said they would work together to encourage economic growth, promote job creation, and enhance global prosperity while strengthening the financial system and curbing worrying public deficits.
  • 8:29 AM » The double-edged sword of low mortgage rates
    Published Tue, Jun 29 2010 8:29 AM by Reuters
    Long-term interest rates are tumbling further today: are now a hair’s breadth away from breaking the 3% barrier. And where long-term interest rates go, mortgage rates are bound to follow. So it’s easy to see why the purple line is falling on this chart, which comes from and which is doing the rounds today: Meanwhile, it’s equally easy to see why the red line is rising. It’s the ratio of rents to prices, and the first-order effect of falling prices is rising rent-to-price ratios. But Paul Kasriel of Northern Trust reads a lot into this chart: it’s cheaper to buy than to rent, and therefore now is a good time to buy. Indeed, he says, “housing is about as an attractive a purchase as it has been in the past 40 years.” Certainly housing is more attractive now than it was, say, five years ago: both prices and mortgage rates are significantly lower than they were back then. But back then we were near the top of the biggest housing bubble this country has ever seen, and finding house prices now attractive in relation to house prices then is akin to getting excited by Yahoo stock now, on the grounds that it costs so much less than it did in 2000. The big picture, in terms of house prices and interest rates, is clear: prices go up when rates are falling, and they go down when rates are rising. That stands to reason: people buy what they can afford. When you’re selling your house you care about the headline price, but when you’re buying it you mostly care about how much money you’re going to have to spend each month in mortgage, taxes, and maintenance. If mortgage rates go up, the amount of mortgage you can get for any given monthly payment goes down, and so house prices have to come down lest they become out of reach. In a housing bubble, this arithmetic is temporarily sidelined, as people buy houses they can’t afford. So where will prices from here, given that mortgage rates can only go up rather than down? Essentially, there are only two choices. Either buyers remain rational...
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More From MND

Mortgage Rates:
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  • Mortgage Apps -2.68%
  • |
  • Refinance Index -3.98%
  • |
  • FHFA Home Price Index 0.67%