BusinessWeek, foreclosures, home sales, housing inventory, rising prices
In Market Stats, News Reports on 2009/11/09 at 2:51 pm
An important reason that the housing market is stabilizing is the reduction in inventory. Current sales and inventories suggest that supply will decline below the pre-2006 levels by the end of 2009.
But analysts say that the stabilization of the market doesn’t mean that prices will rise anytime soon. They point to what they call “shadow inventory,” foreclosed homes that banks are holding off the markets. They predict that these homes will hit the market in spring 2010.
But overall, they are optimistic that the housing recovery is built on an improving economy and say that the market will continue to stabilize.
Source: BusinessWeek.com, James C. Cooper (11/09/2009)
economy, foreclosures, market, newsweek
In General, News Reports on 2009/11/03 at 5:34 pm
The second wave of foreclosures is driven by unemployment and is harder to fix, says Rick Sharga, senior vice president of RealtyTrac, which researches foreclosures.
Sharga predicts an “L-shaped recovery in the housing market through 2013” with the housing market stabilizing without much increase in prices or construction.
“The housing market will not feel healthy for a few years. This is not a short-lived recession,” he says.
Source: Newsweek, Nancy Cook (10/28/2009)
BusinessWeek, federal reserve, interest rates, jobs, Mortgages, unemployment
In Mortgages, News Reports on 2009/10/29 at 3:13 pm
What are the signs that mortgage rates, now at historic lows, are about to go up?
One way to catch a clue is to read the minutes of the Federal Reserve. For instance, the Federal Open Market Committee said in its September minutes that when it came to interest rates, there is “no policy change.” And the minutes said that while the Fed believes “an economic recovery is underway,” it regards a weak economy as a greater risk than inflation. Upcoming meeting minutes are likely to be just as forthcoming if an uptick is in the cards.
Other signs include:
- Declining unemployment: The unemployment rate is sitting at 9.7 percent. If lots of Americans go back to work, an increase in interest rates is likely.
- Rising discount rate: The rate the Fed charges banks that borrow from it directly stands at 0.5 percent. If it rises or the spread between it and the Federal Funds rate widens, then mortgage rate increases won’t be far behind.
Source: BusinesWeek.com, Marc Roth (10/28/2009)
