While many analysts cite varying reasons for the tepid, start-stop nature of this recovery, we attribute much of the lethargy to the heightened level of uncertainty that has gripped consumers.
Read More »Washington Gridlock Spells Quiet Week for Mortgage Rates
Fixed mortgage rates held more or less steady this week as Capitol Hill remained locked in debate over budgetary concerns. According to data in Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.23 percent (0.7 point) for the week ending October 10, just up from 4.22 percent last week. A year ago at this time, the 30-year FRM averaged 3.39 percent. Meanwhile, Bankrate.com recorded a fifth consecutive week of declines for fixed rates in its weekly national survey.
Read More »MBA President Calls for End to Shutdown
As the first government shutdown in nearly 20 years marches on, the Mortgage Bankers Association's (MBA) David Stevens is urging lawmakers to consider the impact that an ongoing shutdown will have on the housing market. Stevens, president and CEO of the trade group, pointed out that while furloughs are currently impacting the out-of-work government employees the most, the effects of a long-term crisis are sure to spread, with lenders having to wait for tax transcripts, Social Security number verification, and other required items.
Read More »Interest Rates Feel Effects of Government Shutdown
Freddie Mac's Primary Mortgage Market Survey showed average fixed rates dropping for the third straight week, with the 30-year fixed-rate mortgage (FRM) averaging 4.22 percent (0.7 point) for the week ending October 3, down a tenth of a percentage point. In addition to the government shutdown (which threatens to shave points off of GDP growth in Q4 if allowed to continue much longer), rates were brought down by a slip in consumer sentiment in September.
Read More »Agencies, Analysts React to Government Shutdown
Most economists agreed that the broader effects of the shutdown should be minimal, assuming that the shutdown is short-lived.
Read More »Community Bankers Urge Simplicity in Secondary Market Reform
In a white paper released Monday, Independent Community Bankers of America (ICBA) warns policymakers to "be careful not to create a new [secondary market] system that destroys liquidity for all but the few largest players, limits access to the market or narrows options for smaller lenders, and imposes requirements that make it too costly for smaller lenders to operate"--a common thread among the major proposals presented so far, the group says.
Read More »Report: FHA to Seek Treasury Draw
Despite efforts to shore up its insurance fund, the Federal Housing Administration (FHA) is likely to seek a Treasury draw of nearly $1 billion to help cover losses from bad loans. "Sources familiar with the matter" told Reuters Wednesday the agency may need to take a bailout for the first time in its history. While no definitive numbers were given, the White House predicted in its budget earlier this year that FHA may need up to $943 million.
Read More »Senators: Bipartisan GSE Reform Bill ‘Gaining Momentum’
Sen. Mark R. Warner (D-Virginia) is seeing tremendous momentum toward GSE reform in Congress, he said during a discussion with Zillow chief economist Stan Humphries this week. He also expressed his optimism that the Housing Reform and Taxpayer Protection Act of 2013--a bill he helped co-sponsor--"actually has a chance" of passing. Fellow co-sponsor Sen. Bob Corker (R-Tennessee), who was also part of the discussion with Humphries, expressed similar sentiment, saying the bill is "gaining momentum."
Read More »Commentary: Happy Anniversary?
The debate over TARP is only one of several five-year anniversaries we mark this month, all related to the mortgage meltdown.
Read More »Unemployment Rate Dips as August Payrolls Increase 169K
The nation's economy added 169,000 jobs in August as the unemployment rate fell to 7.3 percent, the lowest level since December 2008, the Bureau of Labor Statistics (BLS) reported Friday. Economists had forecast payrolls would grow by 180,000 and that the unemployment rate would remain at July's 7.4 percent.
Read More »