Tag Archives: residential mortgages

Record Low Mortgage Interest Rates Boost Housing Industry

More people are refinancing their mortgages than was expected. This despite banks keeping their rates a little higher than necessary because the banks are short-staffed and are not prepared to deal with a deluge of refinance applications. A smaller response … Continue reading

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A Third Of American Mortgages Are Underwater

I wonder what would happen if the federal government reduced its role in the mortgage market and let the housing market finds its own balance. I suspect that home prices would drop another 20% in the next 18 months. Foreclosures … Continue reading

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30-Year Fixed Rate Mortgage Rates Declining

The new GDP number indicates the economy is barely moving forward. Will the high new gas prices send the economy into recession? Not many economists say so, but gas prices are definitely a drag on growth. Marketwatch says: The average … Continue reading

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How About 20% Minimum Down Payments On Homes?

If somebody has a substantial down payment on a home, they are much less likely to default. They are a better credit risk. During the go-go years of the housing boom, people bought homes with tiny downpayments, hoping to flip … Continue reading

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A New Rule Threatens The Fragile Housing Industry

What role did Wall Street play in the collapse of the housing industry? They played the role of sucker, says economist Thomas Sowell, because they overpaid for securities backed by complicated mortgage instruments nobody could know how to value accurately … Continue reading

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Economists call for national standards for U.S. residential mortgages

Capitalism is chaotic and so is America’s mortgage market. Some prominent economists are calling for order. The foreclosure market has been thrown into confusion over the past three months with judges invalidating various foreclosures amid evidence that many banks have … Continue reading

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What Constitutes A Qualified Mortgage?

In 2010, Congress passed and Obama signed the Dodd-Frank Act, a massive regulation of the finance industry. Almost nobody who voted for the bill read the bill. As with the healthcare overhaul, we are all grappling to understand what these … Continue reading

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Reforming Fannie Mae, Freddie Mac

U.S. Treasury secretary Timothy Geitner says that the Obama administration will wait until 2011 to unveil a plan to reform the GSEs Fannie Mae and Freddie Mac. We’re still in the middle of a housing crisis and the Obama administration … Continue reading

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Commercial Real Estate Won’t Cause Recession

An economist says that even though commercial real estate is taking, it won’t be a severe enough problem to cause the entire economy to return to recession. Every time I read an article on commercial real estate, it keeps using … Continue reading

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Banks Writing Off Bad Loans At A Record Pace

The credit crisis is showing no signs of dissipating. That despite trillions of dollars of intervention to try to loosen up credit and restart lending. There’s a fundamental lack of trust in the economy. Debt-securities are selling at low rates. … Continue reading

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