Housing Data Signal Small Pickup

Home prices are improving in some parts of the country but still falling sharply in places like Phoenix, as the weak housing market and shaky consumer confidence continue to weigh on the U.S. economy.

"We're starting to see some hopeful signals in parts of the country," said Nigel Gault, chief U.S. economist at Global Insight, a Lexington, Mass.-based forecasting firm.

On a monthly basis, home-price declines in the nation's largest cities slowed in June, according to the S&P/Case-Shiller home-price indexes released Tuesday. Prices fell 0.6% on average from the month before after falling by 1% in May. The June performance was a marked improvement from monthly drops of 2% to 2.5% that occurred earlier this year.

August 27

IndyMac Borrowers in Danger of Foreclosure to Get Relief
Mortgages previously held by IndyMac bank that were delinquent are getting a second chance from the FDIC. They will begin sending out letters this week offering to rework the most seriously delinquen... Read more »

August 25

Plugging The Talk On Plugging Fannie And Freddie

Coming up in the next edition of Secondary Marketing Executive is an overview of the launch of a U.S. covered bond market. That proposal was fueled by Treasury Secretary Henry Paulson as a vehicle to revitalize the secondary markets. On the surface, it seems like a win-win situation. Covered bonds are not an experimental vehicle - they've been around [read more]

August 21

Where Are The Servicers?

I had the pleasure of attending my first California Mortgage Bankers Association Western States Loan Servicing Conference last week, and I'd like to share a couple quick observations that I took away from my three days spent in Las Vegas. First, the Wynn is a very swank locale and a very nice spot for a conference (although I'm still undecided [read more]

August 19

Today a couple economic news releases are putting a damper on equity markets. After losing 209 points yesterday on the Dow, we’ve lost another 130 points as I write this paragraph. The numbers are the result of 2 new releases in particular along with a pessimistic mood on Wall Street. Many traders are gone on vacation in late August, so trading is typically very light, and there’s not much to get excited about these days in the economy. Our almost 700 point run up in the last few weeks on the Dow is, as we already predicted it would, losing steam and drifting back to the 11,000 mark as expected.

The Commerce Department reported this morning that housing starts are off 11% in July to a seasonally adjusted rate of 965K – the lowest in 17 years. Building permits fell 18%. Although this might at face value appear to be a negative number for the economy, it’s actually good news for housing and good news for us mortgage professionals. One of the most depressing facets of our economy is the inventory of houses on the market which has fluctuated between 9 and 11 months now for almost a year. Less starts, mean less houses on the market going forward, and a quicker contraction of inventory . . . which leads to housing recovery.

August 15

Fannie Mae loses $2.3B as defaults rise - Business Week - - closing costs. With Fannie Mae and its sibling company Freddie Mac becoming more risk-averse, fears are building that mortgage rates will keep climbing, making it harder for people to afford a mortgage or refinance their home, and spur even more
Paulson plans on leaving in 2009 - MarketWatch - - NEW YORK (MarketWatch) -- Treasury Secretary Henry Paulson said Sunday he has ruled out serving in the next U.S. administration, regardless of who wins the election. Speaking on NBC's 'Meet the Press' in an interview recorded in Beijing,