Economists usually do it with models, so it's rare in economics to be able to conduct a laboratory experiment. Currently, though, we're watching two experiments in different corners of the world that support the idea that stimulus works to repair a troubled economy and austerity doesn't.
Read More
The juice that will fuel the economic recovery is housing, or more specifically, new home sales, Freddie Mac stated in its economic and housing market outlook report for May. For 2013, Freddie Mac forecasts housing starts will increase by 200,000 units, which would support over 100,000 new jobs in construction. Adding to this are the additional households that will form.
Read More
The Conference Board's Leading Economic Index (LEI), a major gauge of economic conditions, edged up in April as reports showed potential for growth later in the year. The LEI for the United States increased 0.6 percent in April to 95.0, coming back from a 0.2 percent decline in March and surpassing February's 0.4 percent bump. "The biggest positive factor is the potential for improvement in the recovering housing and labor markets," said Ken Goldstein, economist at the Conference Board.
Read More
According to the CoreLogic Case-Shiller Home Price Indexes, some markets experiencing rapid gains may soon see a slowdown or even reversal of recent trends. As homeowners looking to sell are encouraged by rising prices and as new construction picks up, increased inventory will dampen these rapid increases, according to CoreLogic. Also, rising prices will eventually ward off investors, and "it is not clear if demand from first-time and trade-up buyers will immediately fill the void," said David Stiff, chief economist for CoreLogic Case-Shiller.
Read More
In California, LendingQB announced the implementation of mortgage insurance (MI) underwriting guidelines into its automated underwriting system (AUS), giving users the ability to automatically check MI eligibility and pricing.
Read More
While other hot-button issues have drawn national attention away from the subject of tax reform, speakers at the National Association of Realtors' (NAR) Midyear Legislative Meetings & Trade Expo urged industry professionals not to forget what's at stake. Speaking in a session, political commentator Jeffrey Birnbaum told Realtors that "Congress could move legislation quickly on tax reform" if necessary, spelling possible danger for the mortgage interest tax deduction.
Read More
The Independent Community Bankers of America (ICBA) announced the expansion of its social media monitoring tool.
Read More
Redfin's monthly report--based on home prices, sales, and inventory across 19 U.S. markets--shows prices rose 4.9 percent in April on a monthly basis and 16.1 percent on a yearly basis. Out of the 19 metros measured in Redfin's report, 18 reported month-over-month increases in April. "The housing market across the nation was hot again in April. Yes, home prices are up. But the big story in this month's report is that inventory posted its largest month-over-month increase in over three years," wrote Redfin blogger Tim Ellis.
Read More
360 Mortgage Group, a privately owned mortgage banker headquartered in Austin, Texas, named Jeff Slain as regional manager for the Central Region of the United States.
Read More
The most recent Housing Opportunity Index (HOI) from the National Association of Home Builders (NAHB) and Wells Fargo shows home affordability slipping slightly in the first quarter. According to the index, 73.7 percent of new and existing-homes sold in the first quarter of this year were affordable to families earning the U.S. median income, a decline from 74.9 percent in Q4 2012. Despite the decrease, NAHB Chairman Rick Judson noted the HOI has still stayed high over the past four years.
Read More
Looking for more out of MReport? You can always pass on your knowledge, news tips, and story ideas to be considered for TheMreport.com or the MReport magazine.
Simply e-mail MReportEditor@TheMReport.com.
We appreciate your time and contribution. Whether you choose to tell us a little about yourself or prefer anonymity, we want to hear from our readers!
