Tag Archives: chief economist

The Case For The ARM

Thirty year fixed rate mortgages are increasingly difficult to get and frankly they don’t always make sense. ARMs are often a better deal for certain people. Al Heavens writes: Fixed mortgage rates remain below 5 percent, and these days fewer … Continue reading

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More Than Ten Percent Of Mortgages In Danger Of Foreclosure

I heard a housing expert say on CNBC yesterday that American homes will shed another two trillion dollars in equity over the next year. As home values plunge, more homeowners go underwater aka owe more on their mortgages than they … Continue reading

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What Hope For The Mortgage Industry?

With new regulations coming into effect, opportunities for profits are constrained and liabilities are increased. Sucks to be in the mortgage business. The WSJ reports: High foreclosure inventories remain one of the biggest threats to a housing recovery, particularly in … Continue reading

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Reduced Government Mortgage Subsidies Will Mean More Expensive Loans

As the government gradually withdraws support for Fannie Mae, Freddie Mac and other backstops to mortgage loans, the private sector will curtail some mortgage lending and make those loans it does extent more expensive. Some Republicans want mortgage lending turned … Continue reading

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American Home Prices Plunge 4.3% In Fourth Quarter

With more foreclosures yet to come to the market, real estate experts expect prices to decline another 10-15% in 2011. I don’t see why this is bad news. It is bad news for some — homeowners — and good news … Continue reading

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Mortgage News: Fixed Rates, Shorter Terms

An increasing number of borrowers are opting for shorter mortgage terms than the traditional 30-year deal. They pay less interest that way and own their own homes faster. Fixed rates remain more popular than ARMs. At the height of the … Continue reading

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Centrist Economist Mark Zandi’s Plan For Housing Market

The WSJ outlines his plan. Mark Zandi is a political centrist and is widely respected even though his new plan for the mortgage market seems goofy. Zandi says that fully privatizing the mortgage market would devastate home values. The WSJ … Continue reading

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Home Prices Plunge In Big Cities

I expect a 10% decrease in home prices in 2011. Declines are sharpest in big cities. In 2011, there will be fewer people buying homes due to rising interest rates and high unemployment. At the same time, millions of foreclosed … Continue reading

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10.8 Million American Homes Are Underwater

The problem is worst in Florida and the West (California, Nevada, Arizona). But hurray, the number of underwater homes has decreased from 11 million. The number has improved throughout 2011. But this good news is coming to a halt. There … Continue reading

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Looming Shadow Inventory Of Over 2 Million Homes

A new report says about two million foreclosed homes have yet to come to market. When they do, they should depress home prices further, exacerbating a cycle that leads to even more foreclosures, further price declines and the like. During … Continue reading

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