“Fed Cuts Rate by Half-Point; 2nd Reduction in 8 Days” [New York Times] In lowering its benchmark Federal funds rate by half a point, to 3 percent, the central bank acknowledged that it is now far more worried about an economic slowdown than rising inflation, and it left open the possibility of additional rate reductions. … Continue reading Chop go the rates…again! (Feds cutting rates makes us queezy)
Category: Mortgage/Rates
Ask Us: New economic plan and second homes
Where readers ask and we try to answer: How do you think this new economic plan will affect Californian’s second-home purchases in 2008? Damn good question. Anyone?
This just in: Fannie and Freddie conforming loan limit raised
According to “anon8mizer”: CNBC just reported that the [conforming loan limits for Fannie Mae and Freddie Mac] limit has been raised from $417K to $625K… And from “Dave”: This proposal (reported on Reuters) has serious legs in Congress. On top of the Fed lowering the boom this week to the tune of 75 basis points, … Continue reading This just in: Fannie and Freddie conforming loan limit raised
Ask us: “When should I refinance, or purchase?” ABC7 News is listening!
Where readers ask and we try to answer. This one we’re actually doing for ABC7 News. David Louie is running a story tonight at 6pm, and was hoping we could help him and their viewers out. So….readers, and real estate peeps, don’t disappoint! ;-) Given the fact that interest rates took another dip recently, and … Continue reading Ask us: “When should I refinance, or purchase?” ABC7 News is listening!
Housing Outlook: Bleak
How’s that for a headline? Get your attention? Good. We’re just doing it like all the others. Now check out this video from IntoTheBox.tv (for real estate obsessed people like us): If comparing San Francisco to New York City is any indication of things to come for us, then this report is scary, especially the … Continue reading Housing Outlook: Bleak
Wells Fargo Analysis of Money and Markets
Not too much in the way of a rosy picture painted in this article, but we thank our source for the link nonetheless. Some highlights: -Residential drag diminishes by 2H08, but commercial joins the slowdown -Weaker profit and tighter business credit slow business spending -Stagflationary Feel -Misery Index Oh, just read the report: Wells Fargo … Continue reading Wells Fargo Analysis of Money and Markets
In His Own Words: Warren Buffett and the Mortgage Crisis
On the issue of the securitized mortgages, Buffett said one can make more money “selling toxic waste to customers,” but that doesn’t mean it’s a good idea. “Wall Street started believing its own PR on this – they started holding this stuff themselves, maybe because they couldn’t sell it. It worked wonderfully until it didn’t … Continue reading In His Own Words: Warren Buffett and the Mortgage Crisis
The Wall Street Journal Front Page Story
US Mortgage Crisis Rivals S&L Meltdown Make sure you get to the very end of that scare the sh*t out of us article to read this: In spite of the gloom, the economy may avoid recession. Housing comprises a much smaller share of the economy than business investment, which dragged the U.S. into recession in … Continue reading The Wall Street Journal Front Page Story
Let’s fix this mess, says Shiller
From a reader, “This is the same person who publishes the Case/Schiller housing index which is so widely cited…”: We have to consider the possibility that the housing price downturn will eventually be as big as that of the last truly big decline, from 1925 to 1933, when prices fell by a total of 30 … Continue reading Let’s fix this mess, says Shiller
More mortgage fiasco reporting
From today’s San Francisco Chronicle: The subprime mortgage fiasco stands to cost the Bay Area economy more than $5.4 billion next year, according to the latest report intending to put a dollar figure on the rising wave of real estate foreclosures. The lending crisis will cost the national economy $166 billion and 524,000 potential jobs, … Continue reading More mortgage fiasco reporting
Is Help on the Way?
“Countrywide, GMAC, Litton and HomeEq – which collectively service more than one quarter of subprime loans to people with poor credit – agreed to maintain the initial, lower interest rate for some subprime borrowers whose rates are scheduled to jump significantly higher. To qualify, borrowers must occupy their homes, have made their payments on time … Continue reading Is Help on the Way?
Not such a pretty picture for Bay Area housing
Is that why this guy is so smiley? His predictions are coming true? For those wondering, that is “[e]conomist Ken Rosen, a notorious bear on housing who has called for a correction for several years, [who] said home prices in the urban core of the Bay Area could drop 5 to 10 percent – but … Continue reading Not such a pretty picture for Bay Area housing
“Foreclosures Hit a Snag For Lenders”-NY Times
“A federal judge in Ohio has ruled against a longstanding foreclosure practice, potentially creating an obstacle for lenders trying to reclaim properties from troubled borrowers and raising questions about the legal standing of investors in mortgage securities pools.” “Lawyers for troubled homeowners are expected to seize upon the district judge’s opinion as a way to … Continue reading “Foreclosures Hit a Snag For Lenders”-NY Times
An Interesting Twist to an Already Twisted Tale
From a reader: “This happened to a unit in my building, #108 over here at 88 King. They auctioned it off during the all star game and it went for $840,000.” From the article: “Mortgage scams involve a cartel of inside players — colluding property appraisers, real-estate brokers and accountants willing to draw up fake … Continue reading An Interesting Twist to an Already Twisted Tale
Could it get any worse?
From “james” with love: New York Attorney General Sues First American in Appraisal Probe [OC Register] Thoughts?
Is SocketSite Growing Bull Horns?
Maybe it’s a Halloween prank, maybe a treat, and we have yet to get the trick, but yesterday on SocketSite, they (we know it’s you Adam, but we’ll play along) had a decidedly confused tone: The Federal Reserve Cuts Benchmark/Discount Rates By 0.25% The known: the Federal Reserve has cut both its benchmark interest rate … Continue reading Is SocketSite Growing Bull Horns?