Preliminary 4Q2008 GDP came in today at -6.2%. This is the second reading for the period, following the -3.8% advance reading last month and preceding the final number that will be released March 26. This is the slowest quarterly pace since 1982, back when average unemployment was 9.7% (vs. 7.2% as of December 2008) and
February 2009
This week was the eighth week of a mortgage bond purchase program by the Federal Reserve—here’s week 7. Beginning on February 19 and ending on February 25, the Fed bought $25b of mortgage bonds—below is a table breaking down the amounts for each coupon and maturity across the three agencies that issue mortgages: Fannie Mae,
Loan Volumes Up Lenders had a good January, will end up with great February’s, and solid March’s. After that, it is anyone’s guess as pipelines clear up, loans are purchased, and rates perhaps inch downward. Will these volumes continue if rates stay the same? Are underwriting guidelines going to loosen up? “What do you think?”
The National Association of Realtors, which has supported the Obama administration’s housing and stimulus plans, is opposed to the budget proposal that would reduce the mortgage interest deduction for thousands of families. In a letter sent today to President Obama, NAR President Charles McMillan said, “There is never a good time to propose something that
OK, I am a sucker for the etrade baby ads, along the right side of the site. Tracking TARP Money Where does your favorite bank stand in receiving TARP money? Well, here you go. Chase Exits Warehouse Business Having only 8 clients left, Chase bailed on their warehouse business. “After consideration and review, the Correspondent
Remember when the heat of the credit crisis was the worst and AIG just needed time to sell assets? That plan is now being scrapped according to Bloomberg: AIG said Sept. 16 it will sell assets to repay an $85 billion loan from the Federal Reserve. Liddy has now concluded that plan won’t work, said
Here is an overview of homeowners tax credits that’s a useful reference tool. Click for full size. The tax credit for first time home buyers was increased from $7500 to $8000 for homes purchased between January 1, 2009 and December 1, 2009. A tax credit is equivalent to money in your hand, whereas a tax
Q: What’s the problem with Barack Obama jokes? A: His supporters don’t think they’re funny and other people don’t think they’re jokes. Obama Takes Heat over Fannie/Freddie There is no shortage of critics, or jokes, when you’re president. Most recently, Obama’s mortgage plan for Fannie & Freddie is being faulted since Fannie and Freddie’s charters
In testimony before the Senate Banking Committee today, Fed chairman Ben Bernanke said that the ‘severe’ recession will continue into 2010 unless regulators can help. Below is the full transcript of his testimony: Chairman Ben S. Bernanke Semiannual Monetary Policy Report to the Congress Before the Committee on Banking, Housing and Urban Affairs, U.S. Senate,
Today the WSJ ran a story on the lack of jumbo mortgages and the fact that the new conforming loan limits, which cap out at $729k in high cost areas are basically irrelevant for those high cost areas. As I’ve explained to clients repeatedly over the past 12 months, this isn’t an issue of borrower
The S&P Case Shiller December 2008 report of existing home sales showed record year-over-year -18.5% price declines averaged across 20 major cities (see table below). Notable declines were Las Vegas -33.0%, Phoenix -34.0%, and San Francisco -31.2%. In December and for 4Q2008, prices in all 20 cities in the composite were down. Both the 10-City
In his March Investment Outlook, Bill Gross head of PIMCO, the world’s largest bond manager, does a mock Q&A as though he was testifying before Congress about the financial crisis, its origins, how long it will last, what needs to be done with the banks, and where people should invest their money. Required reading. Below
Between the $787b recovery plan and the $250b foreclosure plan announced last week, we’re into the trillions in terms of bailouts—and that’s just this year. It’s also excluding the $700b TARP plan from last year and the forthcoming bank bailout plan coming from Treasury Secretary Tim Geithner. So where is all the money coming from?
Jay Leno said, “California finally passed a budget. Now Californians can go back to doing what they do best … buying homes they can’t afford.” Little do they realize how much the rest of the nation believes this to be true. Dow Hammered, Home Prices Record Drop Not only Californians but everyone else in the
Marketwatch ran a story this weekend on changing fees for mortgages. The Basis Point contributor Julian Hebron was quoted extensively: In general, government intervention in the mortgage market is making rates unpredictable, causing lenders to price more conservatively, said Julian Hebron, vice president and mortgage consultant at RPM Mortgage in San Francisco. Before paying points,
Conforming loan limits as revised by the recent stimulus act are outlined below, and here are high-limit tables by region. The American Recovery and Reinvestment Act (ARRA), which was signed into law on Tuesday, increased the maximum conforming loan limit for mortgages originated in 2009. The increase affects 250 counties across the United States. For
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