Today’s release of July employment data has vastly greater political consequences than economic or financial. Those consequences extend beyond elected officials to policy makers at the Fed, and inside the administration and out.      Net of all the moving parts (census workers) and revisions (June minus 152,000), job creation is flat. A minor up-trend in [...]

The Federal Housing Administration’s Mortgagee Review Board (MRB) has revealed a list of over one thousand lenders against whom it has taken action over the last several months for violations of the agency’s program requirements. Infractions ranged from failing to notify the Department of Housing and Urban Development of changes in license status or office [...]

Before we wallow in all the negative news about the real estate market—wondering if it’s headed for another leg of the recession or a lasting deflationary grind—let’s pause and notice that, according to the Commerce Department, sales increased by a solid 24% from May to June in California. That still leaves us with a very [...]

Miami, Fl — Builders are reporting a sharp drop in the number of buyers looking for new homes now that the federal tax credits have expired.  The National Association of Home Builders said its confidence index sank to 14, its lowest level since March 2009. Readings below (50) indicate that homebuilders have a negative view [...]

Good news, rates have been falling for the most of this year. Bad news, rates have probably bottomed and will head higher. Last week brought a gale of game-changing news, contradicting recovery, and a whiff of panic. This holiday-short week was news-thin, and mid-July marks the beginning of an often sleepy season for markets and [...]

WASHINGTON, DC–(Marketwire – June 22, 2010) –  Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates, according to the National Association of Realtors®. Gains in the West and South were offset by a decline in the Northeast; the Midwest [...]

Re: Federal Tax Credit! Philadelphia Inquirer (06/17/10) The Senate has approved a measure extending the closing deadline from June 30 to the end of September for home buyers trying to tap a federal tax credit. The National Association of Realtors estimates that 180,000 buyers who had a contract in place by April 30 still would [...]

New Treasury Department guidelines will go into effect June 1; these guidelines will require loan servicers to verify applicant’s income and financial situation before placing them into trial modification. This will make it more difficult to get a relief from unaffordable mortgage payments, but if people make it into trial modification they are more likely [...]

The Markets The U.S. stock market just entered its first correction of 10% since the March 2009 bear market low, according to Barron’s magazine. In the paraphrased words of economist Michael Darda as reported by Barron’s, are we experiencing an aftershock of the 2008 market crisis or are we having a relapse? Catalysts for this [...]

Legislative Update USDA Funding The USDA extension has been attached to an Appropriations bill (we have been told it is a Defense Authorization bill).  While the extension of the program still appears likely prior to Memorial Day, it is a volatile situation in light of the uncertainty surrounding the timing of  financial reform legislation currently [...]