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The housing market may be impacted by the possibility of a government shutdown. The Wall Street Journal reported on April 7 that Housing and Urban Development Secretary Shaun Donovan told Senate lawmakers that he is “very concerned” that if the government shuts down as a result of lawmakers failing to reach an agreement on a … Continue reading Affordable Financial Services’ Weekly Finance Review Bloomberg reported today that U.S. banks may face more than $100 billion in costs as more investors demand that issuers of mortgage-backed securities repurchase bad loans. According to Paul Miller of FBR Capital Markets, U.S. banks such as JPMorgan Chase & Co. and Bank of America Corp. could face a price tag between $54 billion and … Continue reading Mortgage Buybacks May Cost Banks Over $100 Billion The Wall Street Journal reported today that the Obama administration is launching a mortgage aid program which is aimed at reducing mortgage balances for homeowners who are currently underwater but are not in default. The federal government has set aside $14 billion as a way to modify between 500,000 and 1.5 million underwater loans that could … Continue reading Feds Launch Broader Mortgage Aid Program Bloomberg BusinessWeek reported today that it could cost U.S. taxpayers between $160 billion and $1 trillion to fix government-owned mortgage companies Fannie Mae and Freddie Mac — even after receiving $145 billion in bailout money from the government. That amount, according to the article, is greater than the bailouts granted to American International Group Inc., … Continue reading Fixing Fannie and Freddie Could Have $1 Trillion Price Tag Reuters is reporting that foreign investors — discouraged and anxious about the debt incurred by Greece and the ensuing problems of other Euro zone economies as the result — are turning to U.S. mortgage-backed securities as a viable investment option. From January 2009 to March 2010 — as a way to spur the housing market — … Continue reading A Foreign Accent on U.S. Mortgage-Backed Securities After weeks of seeing mortgage rates take off since the government stopped buying mortgage-backed securities last month, mortgage rates have fallen for the first time this week. Reuters reported today that interest rates on 30-year fixed-rate mortgages averaged 5.07% for the week ending April 15, down from 5.21% the week before. Last week’s rate was … Continue reading Mortgage Rates Drop for First Time in 5 Weeks The Associated Press reported today that the average rate for a 30-year mortgage has climbed to 5.3%. While this may be good news for those who put their homes on the market, those seeking to obtain a low-interest mortgage to buy a home may have a difficult time achieving “the American dream.” The jump in mortgage … Continue reading Rising Mortgage Rates May Impact Housing Market, Economy The National Association of Realtors reported on April 5 that the Pending Home Sales Index — a leading indicator of the housing sector based on pending sales of existing homes — rose 8.2% to 97.6. That’s up from January’s figure of 90.2, and up 17.3% from the figure of 83.2 from February 2009. The Pending Home … Continue reading Pending Home Sales Rise in February
The Wall Street Journal reported today that risk premiums on mortgage-backed securities sold by Fannie Mae, Freddie Mac and Ginnie Mae widened by 0.4 of a percentage point since the Federal Reserve completed its $1.25 trillion purchase of mortgage-backed securities on Wednesday. Over the past week, risk premiums on securities widened by 0.13 of a percentage … Continue reading A Buyer’s Market For Mortgage-Backed Securities |
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