Builders continue to be skeptical about the near term prospects of the real estate market according to details from the December National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on Tuesday. The overall Index which shows builders perception of the market was 16, one point lower than in November and the lowest point since June. Any score over 50 indicates that more builders view market as good rather than poor, a condition that hasn't existed in several years. The HMI is constructed from replies to three questions posed to builders. Each respondent is asked to rate both his current perceptions of the market and his expectations for the market in six months on a scale consisting of "good," "fair," or "poor" responses...(read more)
If you are an avid Fed watcher or just keep up with the news, you have likely either seen or heard about Sen. Jim Bunning's feelings towards the Federal Reserve. Bunning, a Republican from Kentucky and a member of the Senate Finance Committee, has long been a critic of the Federal Reserve...specifically Ben Bernanke. Bunning was actually the only panel member to vote against Bernanke's first appointment four years ago. I think this comment, made at Bernanke's re-appointment hearing on December 3, fully illustrates the disdain that Sen.Bunning has for the Fed Chairman. "From monetary policy to regulation, consumer protection, transparency and independence, your time as Fed chairman has been a failure" Yeh that pretty much sums Bunning's feelings in a nutshell. On December...(read more)
A new Harris Interactive Survey commissioned by Tulia.com and RealtyTrac.com shows that Americans are growing increasingly less willing to buy foreclosed properties. The survey, conducted between November 5-9, is the latest in a series of polls commissioned by the two on-line real estate marketplaces. The last one was held between May 1 and 5, 2009. Only 43 percent of 2,033 participating U.S. consumers said they might be somewhat willing to buy a foreclosed property in the future. In May 55 percent expressed such willingness. The survey, however, found that real estate investors, current home owners in the market to trade up, and renters were more open to the idea than the general public. The recently extended and revised tax credit which now grants $6,500 to eligible homeowners to purchase...(read more)
An extremely busy day awaits markets as the Federal Open Market Committee kicks off its last two-day meeting of the decade. Two hours before the opening bell investors are being cautious. The S&P 500 hit 14-month highs yesterday but this morning futures are off 3.00 points to 1,108. Similarly, Dow futures are down 25 points to 10,412 and Spot Gold is $12.25 lower at $1,114.45. Somewhat conversely, WTI Crude oil is up a slight 14 cents to $69.65 per barrel, yet that’s 15% off its highs from late October. “The US$ is stronger against most of the majors, particularly the euro which continues to struggle amid financial-sector problems in Austria and concerns over the fiscal situation in Greece,” noted BMO analyst Robert Kavcic. Key Events Today: 8:30 ― The Producer Price Index...(read more)
Slowly rising interest rates coupled with relatively stagnant home sales will have repercussions in the mortgage industry over the next few quarters according to the Mortgage Bankers Associations (MBA) Mortgage Finance Forecast for the Fourth Quarter of 2009. This is how the MBA opened their December 2009 Mortgage Finance Outlook : "The most important factor driving recent declines in real estate market activity and increases in delinquencies and foreclosures has been the ongoing job losses and rising unemployment rates stemming from the most severe recession the country has experienced in a generation. The central question in any forecast for the housing and mortgage markets is the outlook for the job market: when will companies begin hiring again?" "Property values will not...(read more)
The House of Representatives passed new legislation Friday afternoon which will substantially change the way Wall Street and consumer lenders do business. By a vote of 223-202 lawmakers passed HR 4173, The Wall Street Reform and Consumer Protection Act. The tally did not include a single Republican vote. The 1280 page bill will strip most of the Federal Reserve's powers to write consumer-protection laws, creating instead the Consumer Financial Protection Agency (CFPA) a new and independent agency which will have, as its only responsibility protecting consumers from unfair and abusive financial products and services. The legislation also establishes a council of regulators charged with identifying financial firms that are, in the parlance of today, too big to fail. These systemically risky...(read more)
Two hours before the bell sounds Dow futures are looking to open 39 points higher at 10,462 and S&P 500 futures are up 5 points to 1,108. As the US dollar index starts the week a bit softer oil has fallen below the $70 per barrel threshold: WTI Crude is trading 40 cents lower at $69.47 per barrel. Meantime, Spot Gold is up $2.95 to $1,118.35. Over the weekend, former Federal Reserve Chairman Greenspan told NBC: “It seems to me virtually inevitable – if nothing else were to happen – that employment would start to come back fairly quickly.” Meanwhile, President Obama told 60 Minutes he was frustrated that “fat-cat bankers” are going home with large bonuses and fighting government efforts to revamp financial regulation. Looking to data this week, Monday...(read more)
Most mortgage rates moved up during the most recent week according to information released on by both Fannie Mae and Freddie Mac. The 30-year fixed-rate mortgage (FRM) was up ten basis points according to Freddie Mac's Primary Mortgage Market Survey for the week ended December 10. The average was 4.81 percent for the week with fees and points unchanged at 0.07 point. The 15-year FRM rose to 4.32 percent with 0.6 point compared to the week before when the average was 4.27 percent also with 0.6 point. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was also higher this week, rising to 4.26 percent with 0.5 point from 4.19 percent with 0.5 point. The 1-year Treasury-indexed ARM was slightly lower for the week, moving from 4.25 percent to 4.24 percent. Fees and points were...(read more)
From Reuters: In a win for the banking industry, the U.S. House of Representatives voted on Friday to reject a measure that would have allowed bankruptcy judges to change the terms of mortgages for distressed homeowners. Known as "mortgage cramdown," the measure was defeated in a 188-241 decision as a proposed amendment to a broader financial reform bill expected to win House passage later on Friday. The House had approved a mortgage "cramdown" measure in March over the objections of Republicans and bank lobbyists, but it died in the Senate. Under present law, bankruptcy courts may reduce many forms of debt for struggling borrowers -- including for a boat, car, vacation home or family farm -- but not a primary residence. Cramdown would help stem the home foreclosure wave...(read more)
It’s been a slow week in terms of data but the key release of the week, retail sales for November, finally comes out an hour before the opening bell. Ahead of the data equity futures are looking strong, gold and oil are each higher, and the dollar is weak against most currencies but gaining on the yen. Two hours before the open, Dow futures are 43 points higher at 10,385 and S&P 500 futures are 5.75 points higher at 1,103. After plummeting earlier in the week, WTI Crude oil has been is trading 38 cents higher at $70.92 per barrel. Meantime, Spot Gold is up $8.60 to $1,139.60. “So far, it is looking like a ‘risk on’ kind of morning, with European and most Asian stock markets in rally mode, . . . all major currencies on the up 'n up, . . .and nearly all commodities...(read more)