Monthly Archives: June 2011

Will Rising Interest Mean Lower High Prices?

No. Not really. Not necessarily. Just because mortgage interest rates rise, making homes less affordable for most potential buyers, that doesn’t mean home prices will crater. I think it is a good bet that home prices have another 10% to … Continue reading

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The Three Biggest Mortgage Insurers Are In Trouble

The United States has had two million foreclosures in the past four years. Each foreclosure costs the bank about $40,000. It also costs the giants who insure mortgages. They’re in big trouble as the number of American foreclosures shows no … Continue reading

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The Benefit Of A Biweekly Mortgage

If you make your payments twice a month instead of once a month, all things being equal, you’ll pay off your mortgage in significantly less than half the time. Conventional 30-year fixed rate mortgages are increasingly hard to get. In … Continue reading

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Mortgage Rates Remain Steady In June

As Wall Street and oil prices gyrate, mortgage interest rates have stayed steady in June. The demand for mortgages is weak. The demand for housing is weak. I see no prospect for a significant uptick in mortgage interest rates this … Continue reading

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There Was No Housing Recovery

The WSJ has a great interview with Scott Simon, who helped his firm avoid losses in the great financial crash of 2008. He predicts that if government steps away too quickly from subsidizing the housing market, it could crash further. … Continue reading

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Let’s Blame The Auditors For The Housing Crash

Surely the auditors knew that something was amiss at Fannie Mae and Freddie Mac? Well, they did. The Bush administration worked hard to get these mortgage giants under control, but Barney Frank and other politicians blocked this adult supervision. As … Continue reading

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Still Looking For Culprits In The Financial Crash Of 2008

The biggest culprits of the financial crash of 2008 were the politicians who forced lenders to lower lending standards and forced banks to open branches in areas where they did not want to do business and to lend to people … Continue reading

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Banks Are Slower To Foreclose On Delinquent Homeowners Than Fannie, Freddie

Did you see this WSJ article? It says that banks are slower to foreclose than Fannie Mae and Freddie Mac. So much for banks being the bad guys eager to swallow you up. Banks take a $40,000 hit on each … Continue reading

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Bad Mortgages Hold Down Bank Stocks

As long as bank stocks are in the toilet, banks aren’t going to have much money to lend out. Currently, it is hard to sell bonds backed by mortgages. As long as this market remains small, the funds available for … Continue reading

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