Economy Archives - Page 7 of 40

U.S. Economy Looks for Improved Outlook in 2010

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The U.S. economy is expected to continue to show improvement as we move into 2010. The improvement is likely to continue at a modest pace, though. As the new year gets underway, the economy is expected to slowly expand. Rapid expansion is not predicted, since there still remain significant challenges to the economy. Action Forex reports on difficulties still facing the U.S. economy:

Furthermore, we should not forget that the Fed signaled within the FOMC rate decision that economic activity remains under pressure from elevated unemployment, lower income growth, lower housing wealth, and tight credit conditions continue to weigh down on economic activity, as the economy will probably remain weak and will only recover gradually, while the Feds still believe that the ongoing economic weakness will continue to weigh down on inflation.

Until the employment picture begins to show marked improvement, we are unlikely to see a great deal of economic recovery. Until then, chances are that economic improvements will be small and slow in coming.

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Home Prices Flat

by Miranda Marquit 3 Comments

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Even though there are hopes of economic recovery, things are moving slowly, even on the housing market front. With prime mortgage borrowers slipping into delinquency, and mortgage lenders still being tight with their qualification requirements, it is little surprise that the housing market isn’t moving much.

As a result, home prices remain flat. The latest Case-Shiller home price index shows that October saw flat home prices, and that October did not keep pace with the rest of the year. However, that may have been due to the fact that the fate of the home buyer tax credit was in doubt. Now that the credit has been extended and expanded, there are hopes that the housing market will pick up pace — and that home values (and prices) will increase.

The buyer’s market may soon be coming to an end.

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Merry Christmas from LoanShak!

by Miranda Marquit Leave a Comment

Today is Christmas Eve. Hopefully, you are enjoying the gifts of family and love. And, if you bought a home this year, the gifts of a tax credit and low mortgage interest rate!

Merry Christmas!

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Mortgage Applications Drop

by Miranda Marquit Leave a Comment

This week, mortgage applications have dropped. The Mortgage Bankers Association is reporting that applicants are holding off a bit. This is not especially surprising, with the holiday approaching. Indeed, the MBA is taking next week off, and not planning to release data on mortgage applications.

As is usually the case, most mortgage applications were related to refinance. Nearly 76% of mortgage applications were from those wishing to refinance. This is not surprising, since rates are near historic lows, and many homeowners are interested in refinancing to a lower rate in order to save money.

It will be interesting to see how things go starting in the new year, and whether the expanded and extended home buyer tax credit will contribute to a pick up in new mortgage applications.

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Prime Mortgage Borrowers Slip Into Delinquency

by Miranda Marquit 2 Comments

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Even though things are starting to improve in the overall economy (expectations for November home sales are positive), for individuals things are still a bit difficult. This is especially telling in the fact that many prime borrowers are starting to slip into delinquency. The Wall Street Journal reports on the situation with regard to prim mortgages:

The most troubling finding was that even borrowers considered “prime,” or the least risky, increasingly can’t pay their loans. The report said that 3.6% of prime mortgages were more than two months behind on payments, more than double from a year ago.

Some borrowers might receive relief from foreclosures by the fact that some mortgage lenders and servicers are suspending foreclosures at some point during the holidays. However, things are still difficult for many people in terms of the personal finance situation. Jobs are still scarce, and this makes it difficult for borrowers to make their mortgage payments in a timely manner.

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Jobless Claims Rise

by Miranda Marquit 3 Comments

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The economy continues to struggle toward recovery with the latest jobless claims numbers in today. Initial claims rose more than expected today, belying yesterday’s Fed statement. However, the news isn’t all bad. MarketWatch reports on the silver lining associated with the latest jobs numbers:

Ian Pollick, economist at TD Securities, said that the rise in jobless claims was unsettling but that he was comforted by the fact that claims remain below the 500,000 mark.

Despite the increase, analysts said that claims remain on a downward trend.

So it appears that things, in general, are moving in an overall positive direction for the economy. As a result, then, it is little surprise that mortgage interest rates continue to inch upward.

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Are You Optimistic About Your Personal Economy in 2010?

by Miranda Marquit 1 Comment

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Many people who make money from home are looking toward 2010 and working out how they feel about their prospects. This makes for an interesting look forward. The COUNTRY Financial Security Index measures how people feel about the economy and tracks trends about financial security. It’s pretty evenly split in terms of what people feel about financial prospects for 2010, reports COUNTRY:

As 2009 draws to a close, Americans are almost evenly divided on their future financial predictions for 2010, according to a survey conducted in connection with this month’s COUNTRY Financial Security Index^®. Twenty-nine percent say things will be better, 28 percent say things will be worse and 32 percent think the status quo will prevail.

It’s an interesting look at the general attitudes in the country. I, personally, think that mine will stay pretty close to the same. The recession didn’t have much of an effect on my freelance home business, and I doubt things will change much for me.

Where do you fit in? Are you hopeful for a better year in your personal economy?

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Mortgage Interest Rate Move Back Above 5%

by Miranda Marquit 2 Comments

After spending some time below 5%, most mortgage lenders are quoting rates above 5%. With the prospect of economic recovery combining with the fact that housing starts are rebounding providing some hope, mortgage interest rates are on the rise.

However, even if you don’t lock in a rate right now, you are still likely to be able to reap the benefits associated with historically low mortgage interest rates in general. Even with refinancing, it is possible to get a reasonably low rate.

If you have been thinking about buying a home, or about refinancing, now might be a good time to consider it. If you plan to refinance, do a cost-benefit analysis to see if the savings from having a lower mortgage interest rate outweigh the fees that you might have to pay for the refinance.

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November Housing Starts Rebound

by Miranda Marquit 2 Comments

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November housing starts are expected to show a large rebound from the bad news in October. Housing starts dropped dramatically as the fate of the home buyer tax credit was in doubt. Another issue was that there was bad weather in October, preventing as many starts. But there are hopes that things will show improvement in November, reports FX Street:

Housing starts surprisingly plummeted from 592k to 529k in October. The deterioration illustrated the ongoing weakness in the housing sector, but it could also have been partly due to bad weather conditions. Thus we predict that housing starts will have recovered to 575k in November – still about 12% less than in the previous year. Building permits, which also dropped for the third time in four months, could have risen too, from 551k to about 570k.

The fact that the home buyer credit has been expanded to include those who are “trading up” when it comes to their homes is probably likely to help. The increase in consumer spending, as well as the improvement in the jobs market, are likely to play a role as well.

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Citi Ready to Repay TARP

by Miranda Marquit 3 Comments

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Citi got $45 billion from TARP, and now Citi is ready to pay it back. In order to help raise the funds, Citi plan to raise $20 billion by selling new equity. The idea is that by repaying TARP, Citi can get out from underneath the thumb of the “pay czar”.

The news that Bank of America received approval to repay its TARP money sent Citi (and Wells Fargo) into repay mode as well. However, officials have to give banks the go ahead in order to repay the money that they received. Banks know that if they don’t follow BofA’s lead, they could be at a disadvantage, since Bank of America would be able to lure top talent to the organization with large bonuses.

It will be interesting to see how things go, and how many banks line up to repay their money. This is good news for the Obama Administration and tax payers, since it means that the deficit won’t be as large as projected.

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