Mid-Day Recap: Labor Reports Send Markets into Freefall

Patrick McGee — Thu, 02 Jul 2009 15:23:24 GMT

The pace of losses in the labor market had been moderating for four months but in June nearly half a million jobs vanished from the economy, in contract to widespread expectations. The Bureau of Labor Statistics said 467,000 jobs were lost, pushing the unemployment rate to 9.5%, the highest in 26 years. “The heavy loss of jobs in June is a warning that the road to recovery will be bumpy, but doesn't yet indicate that we have gone off the track” . . . ...(read more)

The Day Ahead: Markets Hesitant Ahead of Employment Data

Patrick McGee — Thu, 02 Jul 2009 12:16:48 GMT

Markets are edging lower ahead of the 8:30 release of Nonfarm Payrolls. A lot is hanging on this report as many forecasts for the economy are dependent on the direction of the labor market. Many look for signs of stabilization after last month’s downside surprise, but signs of a recovery have been far from evident in the weekly Jobless Claims numbers or the ADP private employment report. The consensus looks for 325,000 jobs to have vanished this month, with forecasts ranging between 225,000 and 435,00...(read more)

HARP Guidelines Allow for 125% LTV. Originators Still Skeptical

Adam Quinones — Wed, 01 Jul 2009 21:52:00 GMT

The Home Affordable Refinance Program was designed to assist borrowers who have demonstrated an acceptable payment history on their existing Fannie Mae or Freddie Mac owned mortgage loan. Unfortunately due to rising unemployment levels and increasing foreclosure rates, demand for housing has weakened and property values have continued to decline, which has blocked many borrowers from utilizing HARP....(read more)

Mortgage Performance: Fighting Rising Rate of Foreclosures with Loan Modifications

Adam Quinones — Wed, 01 Jul 2009 17:26:00 GMT

A joint report from the OCC and OTS, which includes 64% of all outstanding mortgages, shows that instances of delinquency continued to increase in the second quarter. Particularly of note is the increasing growth rate of delinquencies among loans backed...(read more)

Mixed Data for Real Estate, ISM Index Improves

Patrick McGee — Wed, 01 Jul 2009 14:53:00 GMT

Three data releases at 10:00 failed to sing in tune with each other. A key indicator of output showed some improvement but is still contracting overall, and while contracts for home purchases are on the rise, spending on the construction of new homes it at historic lows....(read more)

Mortgage Applications Nosedive in Late June

Patrick McGee — Wed, 01 Jul 2009 12:49:00 GMT

Demand for mortgage loans simply plummeted in the final week of June, even as mortgage rates once again moderated, according to a weekly industry index. The Mortgage Bankers Association said the Market Composite Index, a measure of loan application volume...(read more)

The Day Ahead: Markets Optimistic Ahead of Big Day

Patrick McGee — Wed, 01 Jul 2009 12:11:02 GMT

The first trading session of the third quarter is a heavy one for markets. Just one day ahead of the June employment figures, markets will get the closely watched ISM Manufacturing Index, the Pending Home Sales Index, the ADP private employment report...(read more)

Fannie Mae Expands Portfolio, Delinquencies Rising

Patrick McGee — Tue, 30 Jun 2009 14:02:00 GMT

Fannie Mae, the mortgage goliath taken under government control last September, yesterday announced that its portfolio expanded by an annual rate of 35.1% in May, marking a stark contrast to the 19.2% decline in April. In its summary of monthly highlights...(read more)

Case-Shiller Says Pace of Home Price Declines Slowed in April

Patrick McGee — Tue, 30 Jun 2009 13:52:00 GMT

Contrary to expectations, the rapid decline of home prices showed signs of stabilization in April, according to the Case-Shiller Home Price Index, the most influential recorder of prices. The 10-city composite index, which looks at ten major metropolitan...(read more)

The Week Ahead: Holiday Shortened Calendar

Patrick McGee — Mon, 29 Jun 2009 12:17:14 GMT

The transition from June to July offers a packed schedule for investors. No data comes out Monday and Friday is a holiday, but the three days in between present key data and numerous speeches covering all fronts of the economy. The S&P 500 has gained...(read more)

Mid-Morning Recap: Stocks Fail to Rise Despite Gains in Income, Sentiment

Patrick McGee — Fri, 26 Jun 2009 14:58:01 GMT

Despite reports of higher income and improving consumer confidence, markets are off to a rough start on Friday morning with all three indexes in the red an hour into the trading session. Leading the decline is the 0.36% drop in the Dow to 8442, while...(read more)

New Home Sales Stagnate. April Revisions Mitigate May Decline

Patrick McGee — Wed, 24 Jun 2009 14:52:23 GMT

News was mixed for the real estate market this morning. Sales of new single-family homes fell 0.6% in May, in contrast to expectations of a 2.3% increase. By itself, that would be awful news, but revisions to April told the opposite story: the original...(read more)

Mortgage Applications Rebound as Rates Stabilize

Patrick McGee — Wed, 24 Jun 2009 12:06:00 GMT

Loan applications for mortgages increased last week for the first time in a month, as average rates for a 30-year fixed rate mortgage edged downwards, a weekly report said Wednesday. Demand for applications advanced 6.6% in the week ending June 19, according...(read more)

GSE Loan Modifications Increase. Prime Borrowers Falling Further Behind

Adam Quinones — Tue, 23 Jun 2009 21:40:00 GMT

The Federal Housing Finance Agency (FHFA) today released first quarter foreclosure prevention data for Fannie Mae and Freddie Mac. Total foreclosure prevention actions (including loan modifications) totaled 86,600, 20 percent more than the previous quarter...(read more)

Mid-Morning Recap: Sell-Off Extends into Tuesday

Patrick McGee — Tue, 23 Jun 2009 15:33:56 GMT

Stocks have been extremely volatile Tuesday morning, and after opening higher all indexes are negative 90 minutes into the trading session. The Dow is leading the decline with a 0.53% drop to 8294, while the Nasdaq is 0.50% lower at 1757, and the S&P...(read more)

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