economy: U.S. Treasuries Decline After August Job Loss Revised to a Gain - 10/05/07 09:33 AM
Treasuries fell, pushing yields on two-year notes to the highest in two weeks, after the government revised August job losses to a gain and said employment growth in September exceeded forecasts. Traders pared expectations the Federal Reserve will lower interest rates a second consecutive month as concern eased that the housing … (0 comments)
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economy: How Today's Employment Data is Hurting Mortgage Rates - 10/05/07 09:32 AM
On the first Friday of each month, the Bureau of Labor Statistics releases its employment report for the United States.
Last month, the jobs report showed that the economy actually lost jobs for the first time since 2003. The total loss of jobs equaled 4,000 and contributed to the … (6 comments)
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economy: Can We Blog For Change? Housing Legislation Brings Florida Realtors into Politics - 10/05/07 08:27 AM
I'm so excited! I actually got a personal email back from our Senator, Mike Fasano! I can't begin to count the number of times I've sent the 'canned' emails or letters to various Congressmen, Senators, and other legislators, but this is a first, and I'm thanking Active Rain and some Active … (10 comments)
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economy: Yeah home prices are down but.... - 10/04/07 11:22 PM
I recently wrote a post regarding the Prices of homes in some American Cities. I recently came across an article that made me want to post the link to show the new outlook for home prices. To me this is a great article with great statistics. It shows home price peaks, … (4 comments)
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economy: Have You Ever Wondered Where the Money Goes? - 10/04/07 09:55 AM
Where does your money go? If you're like most Americans, more than half of it goes towards housing and transportation alone. This is according to the Consumer Expenditure Survey performed by the Bureau of Labor Statistics. The most recent study shows American household spending habits from 2005, but the percentages change … (7 comments)
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economy: Milken Says Housing Won't Recover for `Quite a While' - 10/02/07 09:07 PM
Oct. 2 (Bloomberg) -- The U.S. housing market is unlikely to recover soon from the worst slump in 16 years, according to Michael Milken, the junk bond billionaire turned philanthropist.
It will be ``quite a while before we have a robust housing market again,'' Milken said in an interview today. ``The … (3 comments)
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economy: Manhattan, KS Finalist for NBAF - 10/02/07 08:46 PM
Manhattan Site One of Five Selected for Further Review and Study
MANHATTAN, Kan. - July 11, 2007 - The Kansas Bioscience Authority announced today that Manhattan, Kansas has been selected as one of five finalists for the $450 million National Bio and Agro-Defense Facility. This decision comes after months of intensive review … (0 comments)
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economy: 10-year and Mortgage Rates Diverge; why Treasuries =/= Mortgages - 10/01/07 08:16 PM
I've been noticing an interesting change in markets lately. Historically, the spread, or difference, between 30-year mortage rates and 10-year treasury notes has been approximately 1.5%, however, recently that spread has increased to approximately 1.85%, an increase of about 3/8%.
This chart clearly illustrates that increase, using data from Freddie Mac's … (0 comments)
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economy: Housing Will Fixate Fed for Years! - 10/01/07 04:36 PM
Bill Gross, manager of the world's biggest bond fund, said falling home prices will be the main driver of U.S. monetary policy for ``several years,'' and repeated his forecast the Federal Reserve will lower the federal funds rate to at least 3.75 percent in the coming 12 months. The Fed may … (0 comments)
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economy: Recession Concern Spurs U.S. Bond Rally on Fed Ease - 10/01/07 04:33 PM
For the first time since 1995, the U.S. bond market will rally on the assumption that the Federal Reserve has relegated inflation to a secondary concern because the central bank views a recession as a much greater threat to the economy. The bellwether 10-year Treasury note, which depreciated as its yield … (0 comments)
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economy: October's 1st week in review.. - 10/01/07 02:22 PM
The Bond market and home loan rates were fairly tame for the bulk of the week, but had picked up a little steam on Thursday following the US Treasury's auction of $13 billion in five-year notes that afternoon. The Treasury auction showed strong foreign demand and heavy buying by large institutional … (0 comments)
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economy: The Week in Review (October 1, 2007) : What to Watch For - 10/01/07 11:30 AM
Even as home sales fall nationwide, the economy continues to move forward.
Year-over-year inflation as measured by Personal Consumption Expenditures registered 1.8%, well within the Fed's tolerance levels of 1-2% and suggesting that the economy is in "Goldilocks" mode -- not too hot and not too cold.
Many economists had … (2 comments)
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economy: Missoula Montana Real Estate Market Remains Strong - The Local Reality - 09/28/07 09:28 PM
There has been a lot of negative press about the real estate market recently. To understand the whole story, you should also consider local markets.
In Missoula, Montana for instance, the market remains solid. We have a strong economy and Missoula is a desirable place to live. We also have growth/development restraints … (1 comments)
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economy: GDP: Gross Domestic Product Fails as an Indicator of Economic Welfare – Part 1 - 09/28/07 03:38 PM
Subtitle: Why Using GDP is a False Growth Benchmark of Health and Wellness of an Economy Conceivably there is no other headline that captures the essence of the Gross Domestic Product or GDP better than the Reuters headline after the catastrophes of hurricanes Katrina and Rita. The disasters ravaged the citizens … (0 comments)
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economy: Charleston's Economy is Growing Rapidly - 09/28/07 12:57 PM
… (0 comments)
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economy: Our economy needs our help! - 09/28/07 12:29 PM
As we all know, real estate is cyclical. As the market changes, we as professionals must adapt accordingly to provide our customers with the best service available. Interest rates and the economy in general, along with other factors keep the Real Estate professional constantly identifying the changes and in turn adapting … (0 comments)
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economy: CAR Chief Economist Speaks of California Housing Market Predictions - 09/27/07 05:09 PM
I am fortunate enough to work for an independent company who enjoys the prestige of speakers like Robert Kleinheim, PhD, CAR's Chief Economist. It's one thing to read websites and ask other Realtors what they think and yet a whole other thing to hear it from the think-tank at CAR.
On September … (2 comments)
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economy: Americans Will Spend $179 Million More on Gasoline Today than One Year Ago - 09/27/07 03:37 PM
Economists worry about rising oil prices because it tends to generate higher pump prices for Americans. With more money spent on gasoline, there's (theoretically) less money available to spend on goods and services.
Today, GasBuddy.com says that the average price for a gallon of unleaded gasoline is $2.792, up … (16 comments)
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economy: Home Prices, Which Way are They Heading? - 09/27/07 03:05 PM
Here is a link to the REALTOR Magazine article I read that tells you which direction home prices are heading. It also gives you a list of cities where home prices are falling. I am not surprised about what cities made the lists. While this may be bad for home sellers, … (1 comments)
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economy: What Happens on the National Real Estate Scene Shouldn't Matter to You - 09/26/07 05:05 PM
The National Association of Realtors® released its monthly Existing Home Sales report for August 2006 and, as usual, you should be ignoring it.
The report discusses real estate on a national level and we all know that real estate is a local phenomenon.
It's not that the report isn't helpful … (10 comments)
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economy: Should Taxpayers Bail Out Homeowners? - 09/25/07 05:47 PM
Innman Real Estate News asked this question today. The answer was, yes for some.
The conclusions were that a bailout was in order for those who were defrauded, but not for those who were foolish or careless.
Unfortunately, many of the foolish and careless are also part of the economy. Letting them … (2 comments)
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economy: The Week In Review (September 24, 2007) : What To Watch For - 09/24/07 04:18 PM
In a semi-surprise move last week, the Federal Reserve lowered the Fed Funds Rate by 0.500%.
The Fed wants to prevent a dramatic economic slowdown that started in the housing sector and appears to be spilling over into other sectors now, too.
According to some pundits, the half-point FFR drop was … (2 comments)
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economy: Birmingham Hoover Alabama: More Good Reasons to Live Here - 09/24/07 03:58 PM
I was reading an article from Realtor Magazine and found out more reasons why Birmingham Alabama is a great place to live.
In today's market, a lot of buyers are looking for a bargain. It looks like, according to economists from Fiserv (FISV), Lending Solutions, Moody's(MCO) Economy.com, and BusinessWeek, that Birmingham and Hoover … (0 comments)
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economy: STOP WHINING!!!! We Cannot Afford to be Ostriches!!!! - 09/24/07 09:36 AM
I find humor in the whining of some real estate professionals! Did you think that once you got your license that sales would just drop into your lap? Did you think that sales would only go up? Life has ups and downs and so does real estate.
In this unstable economy, … (5 comments)
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economy: Birmingham Alabama Strong Housing Market and Strong Economy - 09/22/07 03:31 PM
I was reading a short article in the Birmingham News this week by Roy Williams and found out that we are becoming a bigger blip on the radar, and for good reasons.
Ed Finn was in town this week as a keynote speaker in a UAB and Merrill Lynch Lecture Series. Now, … (4 comments)
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economy: Beige Book Released By Federal Reserve For September - 09/22/07 12:10 AM
The Federal Reserve recently published their latest issue of the Beige Book. It is available online. The following is a brief list of it's overall (national) summary findings (using data as of August 28th): 1. Economic activity continued to expand since the last report, with five district reports indicating that the pace decelerating. Regarding economic growth: some … (1 comments)
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economy: Treasury 10-Year Notes Rise on Outlook for Slowing Growth - 09/21/07 04:41 PM
Treasury 10-year notes rose for the first time in a week as forecasts for slowing growth reduced inflation expectations. Federal Reserve policy makers cut the target rate for overnight lending between banks a half-percentage point to 4.75 percent on Sept. 18 as the housing slump and rising corporate borrowing costs threatened … (0 comments)
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economy: Want More Proof that the Fed Doesn't Control Mortgage Rates? - 09/21/07 09:08 AM
For more proof that the Fed does not control mortgage rates, consider this:
In the immediate aftermath of the Fed's decision to lower the Fed Funds Rate by 0.50%, mortgage rates improved by about 0.25% on average.
But, in the two days since, mortgage rates have not only given back those … (8 comments)
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economy: How Prime Rate Relates to the Fed Funds Rate - 09/20/07 09:07 AM
Prime Rate is currently 7.750%.
Prime Rate is the "shorthand" name for the Wall Street Journal Prime Rate, a variable interest rate that is used in pricing many types of consumer loans.
These loans include:
Home equity lines of creditCredit card loansAuto loans Prime Rate's variable nature is tied to the … (7 comments)
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economy: ARTICLE - No housing woes in Washington State - 09/19/07 08:51 PM
One of our hardest jobs of late has been educating our clients on managing the sudden onslaught of recent information on the national mortgage crisis with our local real estate reality. Simply said, what happens in the industry in California, Florida, Nevada or elsewhere doesn't translate to our local real estate … (0 comments)
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economy: Recession Ahead of Fed Rate Cut - 09/19/07 01:07 PM
In a highly anticipated maneuver, Federal Reserve Chairman Ben Bernanke reduced the target interest rate, that is, the rate at which the bank charges for overnight loans, to 4.75%. The real question was whether the cut would be 25 or 50 basis points. Many who understand Bernanke’s orthodox and academic history … (0 comments)
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economy: House approves bill helping mortgage borrowers - 09/19/07 10:32 AM
Passed by a vote of 348 to 72, the bill reforms the Federal Housing Administration and is the latest lifeline thrown to borrowers from Washington as the fallout in the mortgage market continues. About two million loans are expected to reset to higher rates in the next two years, with defaults expected … (3 comments)
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economy: Treasury 10-Year Note Falls the Most in Six Weeks on Inflation - 09/19/07 10:26 AM
Treasury 10-year notes fell the most in six weeks as investors speculated inflation will accelerate after the Federal Reserve cut interest rates by a half-percentage point. The difference between two- and 10-year Treasury yields rose to 55 basis points, the widest spread in four weeks. The Fed yesterday reduced its target … (4 comments)
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economy: Making English out of Fed-Speak (September) - 09/19/07 09:11 AM
The Fed lowered the Fed Funds Rate by 0.50% yesterday. A rate decrease was expected by most market participants, but the 50 basis points movement seemed to catch some players off-guard.
Mortgage rates dipped in the wake of the announcement, but the real winners are homeowners with balances on their home … (0 comments)
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economy: Fed Chairman Bernanke Finds His Voice! - 09/18/07 05:15 PM
Our new Federal Reserve Board Chairman was struggling with his fist big decision... Should he cut fed funds rates, and stabilize the economy, or should he play it tough because the finance market caused it's own problems? Either way, he would be accused of pandering to special interests. Everybody wanted him to do what Greenspan would … (7 comments)
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economy: The Fed Did It!!! - 09/18/07 03:10 PM
Good news for home buyers and sellers in Sun City, Surprise, Peoria AZ, Glendale and the West Maricopa county.
Today, the Federal Reserve Board of Governors lowered the federal funds rate by 1/2%. Since many, if not most analysts predicted no more the 1/4, this is good news indeed.
This is the first … (1 comments)
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economy: Fed comes through with a BIG surprise!! - 09/18/07 01:37 PM
Well, they did it, 50 bps rate cut from the Fed, even though the initial bond movement has been positive meaning an improvement for mortgage rates, that's not usually how this news reacts for the bond market. I would be very skeptical on this, keep an eye on the stock market … (1 comments)
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economy: Super Homestead-Florida - 09/18/07 12:27 PM
Super Homestead There will be much debate on the Super Homestead coming to the voters January 29. There will be pros and cons on this subject. Certain groups will have lobbyists telling you about all the service cuts, when in reality government spending has almost doubled, with a total of 99% in … (0 comments)
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economy: How the Fed Will Disappoint No Matter WHAT it Does Today - 09/18/07 08:54 AM
It's all eyes on the Fed today; the market anxiously awaits the central bank's 2:15 P.M. ET press release.
Some of the market bias towards a 0.50% rate cut has decreased in favor of a 0.25% cut. This shift is largely psychological.
Markets are trying to "get inside … (3 comments)
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economy: Producer Price Index Release - Ahead of the Fed's FOMC Rate Decision Meeting - 09/18/07 08:53 AM
This morning, September 18th, the Bureau of Labor Statistics reported that The Producer Price Index for Finished Goods fell 1.4 percent in August, seasonally adjusted. This decrease followed a 0.6-percent increase in July and a 0.2-percent decline in June. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved down … (0 comments)
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economy: Wishy - Washy - 09/18/07 08:21 AM
Listening to CNBC this morning you get the sense that knobody knows what will happen with interest rates ... CPI and PPI are good meaning inflation is steady. Alan Greenspan will not even make a prediction. Sometimes I think Wall-Street is more like Vegas ... nobody knows where the wheel will … (1 comments)
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economy: Markets Await Ben's Cutting Remarks - 09/17/07 12:57 PM
The economic calendar thickens up considerably this week, giving a read on manufacturing, inflation and housing...but many of these reports will take a back seat to the Fed's Policy Statement and Interest Rate Decision, to be released on Tuesday afternoon. Traders are forecasting a 100% chance of a Fed rate cut. … (5 comments)
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economy: How much the Fed will cut tomorrow? Vote HERE!? - 09/17/07 12:06 PM
The only economic report released today was the New York Empire State Index for September, which came in less than expected and Mortgage Bonds had (yawn) little reaction.
All eyes and ears are now focused on tomorrow's Federal Open Market Committee meeting (11:15am PST). The debate continues on how much the Fed … (6 comments)
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economy: The Week in Review (September 17, 2007) : What to Watch For - 09/17/07 09:17 AM
The volatile path of mortgage rates last week followed the changing expectations for Tuesday's Federal Open Market Committee meeting.
The FOMC sets the Fed Funds Rate, a benchmark interest rate upon which Prime Rate is based.
According to Federal Funds Rate futures, there is a 94 percent chance that the … (4 comments)
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economy: Treasuries Rise on August Retail Sales - 09/14/07 09:22 AM
Treasuries rose as a government report showed sales at U.S. retailers increased last month less than economists forecast and a British mortgage lender got a bailout from the Bank of England. Traders raised bets that the Federal Reserve will cut borrowing costs half a percentage point to limit the economic impact … (0 comments)
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economy: High Risk Credit and the Negative Impact on Americans - 09/14/07 09:21 AM
High Risk CreditAs markets went on a rollercoaster ride last week, our economy is coming close to a day of reckoning for loose credit policies being followed by the Federal Reserve Bank. Simply, foreign banks we have been relying on to buy our debt are waking up to the reality of … (3 comments)
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economy: What Would it Take for YOU to Feel the Pinch of Higher Gas Prices? - 09/14/07 08:48 AM
As crude oil crossed $80 a barrel Thursday, the Wall Street Journal ran an interactive poll with its readers.
What sustained price for gasoline would cause you to cut back on other household spending?
The graph above shows the on-going results of the non-scientific study. You can chime in, too, at http://forums.wsj.com/viewtopic.php?t=805.
… (10 comments)
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economy: Yoda (Greenspan) comments on Bernanke's Job perfomence. - 09/13/07 05:44 PM
Alan Greenspan is to be interviewed on CBS and early comments he has already made are, to me somewhat preposterous.
1st quote. "I think he is doing an excellent job," Greenspan said of Bernanke in a television interview scheduled to air Sunday.
He went on to say he would have been handling … (1 comments)
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economy: What the Price of Gold Says about the Economy - 09/13/07 09:33 AM
Headlines today read that the value of gold is nearing its all-time high (adjusted for inflation). The lay people would ignore this story, but those in the know understand that the price of gold is usually reflective of the state of the global economy.
The spot price of gold tells a lot … (0 comments)
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economy: Hate Being Right - More Effects of the Hangover - 09/12/07 07:34 PM
Continuation of the Hangover - last fall I started to write a section of the Trends report entitled The Hangover, which discussed the repercussions of the boom. It is a team effort in writing the Trends each year and I am particularly pleased at the accuracy of the section yet in the same … (0 comments)
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economy: Why Mortgage Rates Fell BEFORE the September 18 Fed Meeting - 09/12/07 06:02 PM
Mortgage rates "come from" one place only: the prices of mortgage bonds as determined by investors.
The higher the price, the lower the corresponding return, or rate.
Bonds -- like stocks -- are traded as securities. An investor may buy Microsoft stock if he thought the company's future looked bright, … (8 comments)
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economy: Trend in Central America May Hurt Housing - 09/12/07 04:14 PM
According to NPR reporter Carrie Kahn about 20% of the construction labor force are "illegal immigrants", vast majorities of whom come from Central America. According to the Wall Street Journal, over the last 20 plus years the average woman in Central America has had fewer children. In 1980 the average women … (0 comments)
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economy: California's Economic Tremor - 09/12/07 04:07 PM
What will happen with the tax revenue now that home prices are falling? During this past boom home prices shot up in California and municipalities reaped some big paydays. Now that home prices are falling how will these same municipalities cope with the lower tax revenue? Remember that California law states … (2 comments)
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economy: Phoenix #1 Job Market in U.S., Tucson #10 - 09/10/07 05:23 PM
From today's BizJournal... "Nowhere has the recovery been stronger than Phoenix, which is currently the nation's hottest employment market, according to a new Bizjournals study. "Phoenix has seen a real boom, and it has been broad-based," says Austin Litvak, an associate economist with Moody's Economy.com, an international research firm. "The economy there really … (1 comments)
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economy: Got this from a countrywide person about there financial standing. - 09/10/07 04:07 PM
Countrywide Asserts Soundness of Financial Position
Countrywide is America's number one mortgage lender and has been here to serve the needs of people and business partners for nearly 40 years. Our industry-leading strengths include:
1 - Solid Financial Performance
•· Ranked #91 on the Fortune 500 rankings, and 70th most profitable company in the … (5 comments)
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economy: This weeks economic calendar. - 09/10/07 01:31 PM
Economic Calendar for the Week of September 10 - September 14 … (0 comments)
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economy: Forcast for the week...Rates are FALLING! :-) - 09/10/07 01:30 PM
Will all the back to school buying that happened last month help boost this week's read on August Retail Sales? It's the biggest economic report coming this week, due to be delivered on Friday morning. It will be interesting to see if the turmoil in the financial markets during August had … (1 comments)
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economy: The Week In Review (September 10, 2007) : What To Watch For - 09/10/07 09:30 AM
Weak employment data pushed mortgage rates lower last week. Against expectations of 110,000 new jobs created in August, last Friday's Non-Farm Payrolls report showed a loss of 4,000 jobs.
The story made headlines all over the country this weekend but its connection to mortgage rates is not always clear. Here's how … (2 comments)
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economy: Payroll down. Housing prices down. Next? - 09/07/07 12:20 PM
Written today by Scott Anderson, Senior Economist for Wells Fargo:
This morning’s terrible payroll report gives the Fed the cover it needs to begin easing monetary policy in a serious way, using the biggest guns in its arsenal. Any lingering fears on inflation are now firmly in the rearview … (0 comments)
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economy: Big miss on jobs leads to lower rates - 09/07/07 10:56 AM
Many investors were surprised today by the results of the Federal Bureau of Labor Statistics' Employment Report. While the ADP report on Tuesday had suggested potential weakness in hiring, the BLS report indicates that the economy lost ground in employment last month, and that the good growth seen in July and … (1 comments)
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economy: How Today's Jobs Report Impacts Mortgage Rates - 09/07/07 10:15 AM
This morning, the government reported that the U.S. economy lost 4,000 jobs in August. Led by losses in manufacturing and construction, this is the first time since 2003 that the economy has failed to add jobs in any given month.
Markets had been expecting a job gain of roughly 110,000, but … (4 comments)
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economy: New Financing Hits All Types of Investors - 09/06/07 07:20 PM
The current economic condition leaves much to be desired for those seeking safe investments. The volatility of the Dow Jones and negative psychological impact of the poor housing market and credit crunch have led individual and institutional investors alike to remain bearish amid fears of liquidity. Other indicators show that the … (1 comments)
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economy: Traders Predict The Fed Funds Rate Future Using Options - 09/06/07 11:10 AM
The Federal Open Market Committee meets September 18, and traders are aren't quite sure what to expect with respect to the Fed Funds Rate. Will the FFR stay unchanged? Will it FFR decrease? If it decreases, by how much? These are questions that are perplexing market participants. Luckily, we can measure … (2 comments)
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economy: Credit card companies pursue subprime borrowers - 09/05/07 11:04 AM
As subprime borrowers began to default on their mortgages in rapidly growing numbers this year, credit card issuers increased their efforts to sign up such customers with tarnished financial histories, according to a market research firm.In June, nearly one in five subprime mortgages was at least 60 days past due, and … (5 comments)
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economy: Treasuries Rise on Corporate Borrowing Costs, Housing Report - 09/05/07 10:38 AM
Treasuries rose as higher corporate borrowing costs increased speculation the Federal Reserve will cut interest rates this month. U.S. notes extended their gains as an industry report showed the number of Americans signing contracts to buy previously owned homes in July dropped by the most since records began in 2001. A … (2 comments)
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economy: The Week In Review (September 4, 2007) : What To Watch For - 09/04/07 11:55 AM
Federal Reserve Chairman Ben Bernanke took to the pulpit Friday in Jackson Hole, but his remarks made little impact on mortgage bond trading.
The Fed is aware of economic issues related to housing and mortgage debt, Bernanke said.
He implied that the Fed wants more evidence that inflation has slowed … (5 comments)
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economy: The Market Needs Stager NOW More than Ever! - 08/31/07 02:03 PM
You see it on the news everyday...the real estate market is suffering due to many factors. This makes selling a property more challenging than it's been in a long time. Buyer's are looking to be "wowed" and emotionally pulled to a property because THERE ARE SO MANY TO CHOOSE FROM. If … (0 comments)
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economy: The Effect of Mortgage Challenged - 08/30/07 06:38 PM
Many people do not realize the effect that the mortgage industry is having on people today. I was reading an article this morning on one particular group. It got me to thinking that the one group it was featuring would trickle to all sorts of other professions and areas. So, here … (5 comments)
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economy: How The Stock Market Rally Changed Mortgage Pricing For The Worse - 08/30/07 09:12 AM
Mortgage rates unexpectedly increased yesterday afternoon as the U.S. stock market staged a late rally. By the end of the day, the Dow Jones Industrial Average (DJIA) was up 1.9 percent, or 247.77 points. This is a typical pattern. When stocks are moving higher, investors want to ride the wave and … (6 comments)
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economy: WHERE IS THE REAL ESTATE MARKET HEADING TODAY? - 08/30/07 07:42 AM
WHERE IS THE MARKET GOING? History gives us the answer to this question. Market Cycles in the D.C. area and nationwide tend to be about 12 years from peak to peak. The market in Northern Virginia peaked out in August 2005 and then immediately trended downward. Now we are exactly two … (5 comments)
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economy: How Credit Cards May Be Replacing Home Equity As A Funding Source - 08/29/07 12:40 PM
As mortgage guidelines loosened between 2002 and 2006, homeowners often used their home equity to retire credit card and other consumer debt. They did this by increasing the size of the mortgage and taking "cash out" from their home.
As you'd expect, this type of mortgage transaction is called a "cash … (4 comments)
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economy: News Clips and Stuff - 08/28/07 07:09 PM
Here are a few stories that I thought were important. Quotes in bold from the stories. Other text is my own brilliant commentary. And a surprise thrown in for good measure (a test of sorts).From Reuters 8/28 "Tighter lending standards in recent months have hurt business at two-thirds of the nation's … (2 comments)
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economy: Economy or Economics? Which Drives Home Sales - 08/28/07 10:09 AM
With a record number of residential properties on the market across the country, we (a colleague and I) were debating strategies for locating future home sales markets. Basically, where should we guide and recommend home purchases to our clients. He took the stance that the overall economy drove home sales, … (3 comments)
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economy: The Safe Survive - 08/28/07 09:59 AM
I mentioned earlier that I was working with Wachovia on some projects. They seem to be one of the best (and healthiest) of the lenders around today. I was not surprised to learn that Wachovia's ability to thrive is realted to its large holdings of first lien mortgages (the safest position … (1 comments)
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economy: Bloomberg, Washington Post & Others Paint Gloomy Picture, Is It Reality? - 08/28/07 05:15 AM
If you're a Google user, you've likely seen the news, Housing Sales are down. Washington Post, Bloomberg and others are all reporting the numbers. With these papers reporting doom and gloom it's no wonder the public is skiddish in some cases to purchase. If anything the way this news is presented … (3 comments)
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economy: Housing Market Remains Healthy In Pikes Peak Region - 08/27/07 07:39 PM
Most of my clients have heard me say it many times...real estate is a local phenomena and what may be true in one market is usually not true in another. Despite all the gloom and doom from some of those in the media and elsewhere, more than halfway through 2007 the … (0 comments)
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economy: My Weekly Newsletter - 08/27/07 12:41 PM
Here is a link to my weekly "REAL ESTATE NEWS CHANNEL":Click Here This week's segments are full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.Some of the topics covered this week are:Real Estate Outlook - We're looking at another … (0 comments)
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economy: Mortgage Crisis and Terrorism - 08/27/07 12:01 PM
A lot of folks agree that the press oversensationalizes things, which certainly seems to be the case with their dramatic images, deep gravely voice-overs and hyperbolic slogans. So I read with some scepticism the latest story which comes with this chilling headline: Rising defaults and heavy debt pose greater risk to … (4 comments)
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economy: CNN's New Tag - 08/27/07 10:54 AM
CNNMoney.com has a new tag line. It's called "Mortgage Meltdown 2007". Catchy title, isn't it? Makes me wonder why they insist on sensationalizing things like this...but then I remember, they're in the ratings and revenue business and that's all part of the game.So the real news is that home sales slipped … (3 comments)
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economy: Slowdown A Part of a "Post-Frenzy Balancing Act" - 08/24/07 04:59 PM
DataQuick, a company that compiles and analyses national and regional real estate data for a variety of of public, private and institutional clients, has released a really interesting and refreshingly level headed report on housing trends in Southern California. The report points out that the recent slowdown in sales volume, while … (3 comments)
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economy: Good News! Maybe - 08/24/07 04:24 PM
There has been some good news for the housing market today. The Commerce Department several hours ago announced that new-home sale rose by 2.8% in July. In addition orders for big-ticket items rose by 5.8%. This in conjunction with Fed Chairman Ben Bernanke’s statement on August 17th that “The downside … (2 comments)
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economy: Home Sales RISE - 08/24/07 10:58 AM
Holy cow (sorry...the Idaho in me comes out once in a while). I was amazed when I saw this report that new home sales in the US "unexpectedly" rose for the second time this year "suggesting the housing market was stabilizing". http://www.bloomberg.com/apps/news?pid=20601087&sid=aLdFv9P6imE8&refer=home The article states that purchases increased 2.8% last month … (0 comments)
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economy: :: US - Canada Real Estate market predictions :: - 08/23/07 04:07 PM
U.S. PRESIDENT George W. Bush rode across the mid west during his 2004 re-election campaign in a bus emblazoned, "Yes, America can." It turns out the bus was made in Canada.
This past week George W was brave enough to venture across the 49th parallel into my homeland, the hinterland called Canada … (2 comments)
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economy: New Homes "Sold" Is Not The Same As New Homes "Closed" - 08/23/07 09:56 AM
With tomorrow morning's New Home Sales report, markets will get a look at the number of newly-constructed homes sold in July. The figure is expected to be in the 825,000 range. This is lower than June's 834,000 figure. But -- as always -- there is more to the story. When the … (3 comments)
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economy: Hebron-Ben Nevis oil project a go for Newfoundland - 08/23/07 09:33 AM
Hebron-Ben Nevis announcement is going to jump-start the Newfoundland industry, and bring in billions during its life. Employment in St. John's and area will increase bringing back Newfoundlanders currently working in Alberta. Relocation to St. John's real estate market will certainly benefit. The overall St. John's economy will surely boom in … (2 comments)
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economy: The Federal Reserve Takes Action: What It Means to You... - 08/21/07 05:43 PM
Fed Discount Window Cut:How it affects your clients and your businessThe Federal Reserve has taken significant action in the last few weeks due to the credit crunch. And now they've made an unexpected move by cutting the discount window rate - which is great news. I'll get to that in a … (0 comments)
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economy: Home Builders are not Villains - 08/21/07 03:45 PM
I haven't posted on Active Rain much for the last two months. Mainly due to the fact that the home building market continues to deteriorate in markets and time has been at a minimum. I did hear recently, or read in a news release, that the villains behind all the sub-prime … (8 comments)
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economy: Like The Fed Funds Rate, The Fed's Discount Rate Does Not Control Mortgage Rates - 08/21/07 02:03 PM
Friday, the Federal Reserve lowered its Discount Rate by 0.50% in an effort to preserve liquidity among our nation's banks.
This has nothing to do with mortgage rates that people like you and I get for our homes. Well, not directly at least.
The Discount Rate is the rate at which … (6 comments)
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economy: Ding!...Ding! the Winners..I meant.. Lenders ARE: Washington Mutual, Wells Fargo, AND Bank Of America. - 08/20/07 11:16 PM
WOW... What a day it has been in Lender Land! We had dramatic drops in the stock market, last week, the bond market is the lowest since 1985 AND some of the country's biggest lenders are going Down for the Count! Welcome to the Lending Circus who's ring leader will now be … (8 comments)
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economy: Fed Play Catch-Up on Rate Outlook - 08/20/07 02:01 PM
Economists at Wall Street's biggest bond trading firms are rushing to change their interest-rate forecasts after the futures market more accurately predicted the Federal Reserve's surprise rate cut. Most primary dealers of U.S. government securities that trade with the Fed now expect the central bank to lower its target rate for … (0 comments)
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economy: Bernanke's `Rookie Mistake' Forces Fed to Shift Focus - 08/20/07 01:58 PM
Federal Reserve policy makers, who declared that inflation was their paramount challenge just two weeks ago, have been forced to make financial-market stability the trigger for changes in interest rates. By lowering the discount rate and issuing a statement conceding threats to the economy, Federal Open Market Committee members effectively ripped … (3 comments)
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economy: Rates Cuts 20% Down - 08/20/07 12:20 PM
Do you think the drop in the interest rate is going to inspire any new sells or new buys? I don't think it is realistic, at least not here on the Eastern Shore of Maryland. I mean really... what is half a percent going to do? For the homeowners who are … (0 comments)
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economy: Rates Cuts 20% Down - 08/20/07 12:12 PM
Do you think the drop in the interest rate is going to inspire any new sells or new buys? I don't think it is realistic. I mean really... what is half a percent going to do? For the homeowners who are having a hard time paying their mortgage right now; dropping … (2 comments)
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economy: The Week In Review (August 20, 2007) : What To Watch For - 08/20/07 10:27 AM
Again last week, financiers failed to answer the major question dogging Wall Street: What is the "right" risk model to use for mortgage lending? The models of the past are being proven to have been wrong. So, why do risk models matter? Because the basic tenet of lending states that the … (2 comments)
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economy: Beige Book Released By Federal Reserve For July - 08/20/07 02:29 AM
The Federal Reserve recently published their latest issue of the Beige Book. It is available online. The following is a brief list of it's overall (national) summary findings (using data as of July 17th): 1. Economic activity continued to grow during June through mid-July, since the last report, with individual district reports indicating that the pace of … (0 comments)
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economy: Kauai Rocks in Tourism While Oahu & Maui Slip - 08/16/07 09:22 PM
No Tourism Growth in Hawaii in 2007 Is Not The Full Story...Kauai Rocks!
The
University of Hawaii Economic Research
Organization (UHERO) reports that Hawaii tourism (it's financial mainstay)
got off to a poor start in 2007 and the forecast is for limited gains for the
rest of the year. They reported … (3 comments)
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economy: Lawrence Welk and the Housing Mess - 08/14/07 06:16 PM
Those of my age had to watch LW every Saturday Night, because our parents did. Those a little older watched because they liked it. I did fall in love with the Lennon Sisters, however.Today's Inman Real Estate news has a good article about the state of affairs in housing today. See … (5 comments)
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economy: R E O 's three letters treasured by investors - 08/14/07 12:19 PM
On the other side of the spectrum, the market conditions are ideal for investors. With the insecurities with the stock market . . . Real Estate is still a better alternative for investors. The promise of return can be greater. I have just been asked to represent a couple of REO's … (1 comments)
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economy: “R E O 's” tres grandes letras a los inversionistas - 08/14/07 12:14 PM
En el otro lado del espectro, las condiciones de mercado son ideales para los inversionistas. Con las inseguridades con la bolsa. Las propiedades inmobiliarias siguen siendo un alternativa mejor para los inversionistas. La promesa de la vuelta puede ser mayor. Acabo de pedirse representar un par de REO para un par … (0 comments)
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economy: The Fed Funds Rate Does Not Directly Impact Mortgage Rates - 08/14/07 10:28 AM
It's been on the news a few times lately, so let's address a key misconception about the Fed and its relationship to mortgage rates.
The markets now anticipate that the Fed will lower the Fed Funds Rate within the next 45 days. As a mortgage rate shopper, there's not much reason … (9 comments)
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