December, 2007 New Home Sales Fall More Than Forecast
New home sales fell to a 12 year low, bringing year-over-year sales down a staggering 25.4% over the past year, the largest one year decline since 1963.
The suprisingly weak numbers add to concern that the economy is headed to recession in 2008, and further clouds the outcome of the next FOMC meeting in January. The debate is whether the Feds will cut rates to bolster a struggling economy, or hold tight because of ...
It's official- No Doc Loans are gone, at least for now. The day and age of low or no documentation, 100% financing are long gone as the housing crisis continues to roil the economy and lenders tighten underwriting standards.
There are still great options for individuals with a 2 year employment history at the same job or self-employed for 2 years, at least 5% down payment, and credit scores above 680. For example, the fast ...
Initial jobless claims for the week ending Dec. 22nd increased to 349,000. Continuing claims, the number of people continuing to collect unemployment increased by 75,000 to 2.713 million, the highest level since 2005.
Higher unemployment adds to concerns of a recession in 2008. The stock market is falling on the news, which is positive for mortgage rates. We need this as rates are up over the past 2 weeks by over .25% on most mortgage ...
posted by RJ Baxter December 27, 2007 10:29 | permalink | comments(0) | Housing Crisis Core Inflation Up- Are We Headed to Recession?
Core PCE (Personal Consumption Expenditure) was released for Novemenber last week, and came in outside of the FOMC's comfort zone of 1-2%. PCE was at 2.2% year-over-year.
Fighting inflation, not saving the housing market or bolstering the economy, is the FOMC's main job, although secondary effects of helping the economy are desired. If inflation remains above the FOMC's comfort zone, this could spell trouble for the US economy in 2008.
Happy holidays everyone- I hope you have a great week. Stay tuned in 2008 for what promises to be a historic economic time!
posted by RJ Baxter December 24, 2007 11:07 | permalink | comments(0) | Housing Crisis Why Didn't Fed Act More Quickly on Subprime Crisis?
Why didn't the government act sooner to protect homeowners from the subprime mortgage crisis of 2007 and the ensuing affects on the economy?
Unscrupulous lending practices and deceptive loan officers led hundreds of thousands of home owners into risky mortgages that they could not really afford through the early 2000's. Many legislators saw a problem looming as early as 2000-2001, but nothing was done.
posted by RJ Baxter December 18, 2007 8:50 | permalink | comments(0) | Real Estate Stagflation- Is the US in Danger?
High inflation numbers released last week have led to increased concern that the FOMC will be in a difficult position leading up to their next meeting, and may not continue their rate-cutting campaign. Although the Fed has been cutting short term rates recently to help stimulate a struggling economy, higher inflation means that further rate cuts are uncertain, as cuts in rates can also lead to higher inflation, an enemy of economic recovery.
posted by RJ Baxter December 17, 2007 10:04 | permalink | comments(0) | Housing Crisis FHA- The Affordable Home Buying Solution
First time home buyer? Credit problems in your past?
If you are trying to buy a home, and it is either your first time, you have had some credit issues in the past, or you don't have much saved up for a down payment, FHA may be a solution to help you get into a home.
With subprime mortgage programs going away, FHA has stepped in and filled the void for some ...
