It’s a day of conflicting data in rate markets. Consumer Confidence was up way more than expected and if this confidence translates into spending, it pushes rates higher. But offsetting this rate trade are two other pieces of data: home prices continue their decline, with today’s S&P Case Shiller report showing a sixth month of
The S&P Case Shiller November 2010 report of existing home sales showed average U.S. home prices declined 1.6% from November 2009. This is the sixth consecutive month of weaker data, which reflects sustained foreclosure volumes, high unemployment, and the drop off in activity following the federal homebuyer tax credit expiration. Home prices are down 30.3%
Future of Fannie/Freddie Postponed Again The deadline for a proposal to restructure Fannie Mae and Freddie Mac, something required by the Dodd-Frank Finreg bill, has been pushed to mid-February. F&F own about half the $10+ trillion of outstanding home loans and the plan must address how the government continues backing existing mortgage-backed securities and how
In all of the post-bubble analysis of what went wrong lots of blame is placed on credit default swaps (CDS), which are fairly new, having not existed before 1994. Inauspiciously enough, CDS stemmed from a disaster. On March 24, 1989 the Exxon Valdez, an oil tanker headed to Long Beach, CA hit a reef in
Bank of America spent $1.5 billion on legal fees in the last three months of 2010. Sometimes we have trouble imagining big numbers. In the US, our median household pretax income is about $50,000. If a household were to work for 300,000 years, it would earn $1.5 billion dollars. More on BofA writedowns is in
The first picture below is Bank of America CEO Brian Moynihan when he took the job in December 2009. The second picture is from his Bloomberg interview today … one year later.
Rates improved a bit yesterday and gave up ground today, making 30yr fixed rates on loans up to $417k hold at 5%, with higher loan amounts and condo loans about .125% to .25% higher. Rates improved yesterday after Housing Starts fell as expected and Building Permits rose almost 17%, then retreated a bit today after
Future of Fannie & Freddie January is scheduled to be a big month for Freddie and Fannie, in that the Treasury is expected to release plans for their future. Merrill Lynch released some conjecture about upcoming news, which will probably come out after the State of the Union address on 1/25. Merrill reminds us that
The Mortgage Bankers Association of America 2011 rate forecast calls for 30yr conforming conventional fixed rates at 5.5% by year end, and $966 billion total single family originations in 2011. Here’s all of their predictions.
Rates are generally even on today’s market news which includes bank earnings and some housing data, as follows: Wells Fargo’s earnings came out as expected at $3.2 billion (61 cents per share). Initial reads show that Wells’ loan growth was better than expected. Credit quality improved dramatically, allowing Wells to release some $850 million in