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Posts Tagged ‘crash’

Home Prices Post Largest Gain in Two Years Plus

November 30th, 2012 Comments off

According to the S&P/Case-Shiller Index, home prices registered the largest gain in over two years, moving up 3.6 percent in the third quarter over Q3 2011. CNNMoney reports the increase was the biggest since the second quarter of 2010 when the homeowner’s tax credit of up to $8,000 ended. A drop in foreclosures to a five-year low, an improving jobs market and record low interest rates have sparked home sales and home building. Dean Baker, of the Center for Economic and Policy Research, says “We’ll probably do better than inflation for the next few years, and people who have been underwater on their mortgage will get out from that, and build some equity.” Only Chicago and New York of the 20 markets surveyed showed a modest price decline from a year ago. As MHProNews has learned, Phoenix, AZ, which was one of the hardest hit cities following the housing crash, experienced the largest increase, with prices 20.4 percent higher than last year.

(Image credit: mortgagebroker)

Fed Housing Involvement Will Remain

October 18th, 2012 Comments off

Despite calls by analysts and policy makers following the recent crash to get the government out of the housing business, Kerri Ann Panchuk of HousingWire says the GSEs still account for 85-95% of the outstanding mortgage loans, securitized and unsecuritized. Plus there is a myriad of programs to help homebuyers—Home Affordable Mortgage Program (HAMP), federal block grants, other refinance programs, etc.–that are in direct contrast to The Treasury saying it wanted a mortgage finance system supported by more private capital. Doug Duncan, chief economist for Fannie Mae, says private capital does not see clarity in the new system, and that uncertainty will keep investors away. As MHProNews has learned, government will remain involved for the foreseeable future.

(Image credit: Federal Housing Administration)