In terms of forward guidance I think the Fed Chairman’s speech provided little direction, but Friday’s precious metal price action into the close and the various sell side notes that I have seen suggest that this, at least initially, is too bearish a conclusion. The following excerpt from the speech, in particular, was . . . → Read More: After Jackson Hole, Clear Road Ahead?
This, in a USA Today story about the 30-year mortgage rate hitting a new record low, caught my eye (emphasis mine):
Mortgage buyer Freddie Mac says the average rate on 30-year loans fell to 3.56%. That’s down from 3.62% last week and the lowest since long-term mortgages began in the 1950s.
My immediate . . . → Read More: Learn Something New Every Day …
I am sure many of my readers will have caught this Bloomberg piece earlier this week, but if you haven’t it is a brilliant piece of journalism by Bloomberg reporters Sharon Smyth, Neil Callanan and Dara Doyle. The story takes us to Spain and Ireland and the former’s denial with regards its housing market.
. . . → Read More: The Denial on Housing in Spain
So here is a riddle. Population in the region is ticking up for the first time in decades. Net migration is actually net positive for at least 3+ years now which has little precedent here in almost a century. We know we have one of the oldest housing stocks in the nation and minimal new . . . → Read More: Housing Riddles
Lest we forget some of the bigger stories in all of this. The other day I played with the housing data for the trends across metro areas since 1991. I have renormalized the data to show changes over just the last 5 years. Just fun with numbers, but this is what you get:
So we can . . . → Read More: More Pittsburgh real estate trends
Someone needs help thinking beyond stage one:*
Researchers with the Federal Reserve Bank of New York found that investors who used low-down-payment, subprime credit to purchase multiple residential properties helped inflate home prices and are largely to blame for the recession. The researchers said their findings focused on an “undocumented” dimension of the housing . . . → Read More: Paging Dr. Sowell
It was telling that just as the ECRI and other notable research outfits decided to push recession button on the US economy the data flow became notably more positive. This could be a sign of the times that the cycle is just too volatile for even capable analysts to call or it could simply . . . → Read More: Random Shots – Is it Over Yet?
Bloomberg/Businessweek has a story: U.S. Zip Codes with the Biggest Houses with this line:
“Pittsburgh had the largest number of areas with big houses”
Of their top 25 zip code areas ranked by size of homes we have: Mars, Gibsonia, Sewickly, Wexford, and Fox Chapel.
Yet another ranking showing the Pittsburgh region as just about the only place in the nation with increasing real estate prices year over year. See this press release: Summer’s Last Stand: Clear Capital(R) Reports U.S. Home Prices Increase 4.0%. The headline there is about some decent quarterly numbers for the nation and a lot . . . → Read More: Yin and Yang of Pittsburgh Real Estate Ever Again
With economic uncertainty continuing to hamper economic growth, inflation has been non-existent, and mortgage rates have remained low. Current rates for conforming loans have dropped below the lows seen late last year to set new record lows for fixed rate mortgages, 5 year ARMs, and 1 year ARMs.
However, many new home buyers looking . . . → Read More: Current Home Loan Trends