Tuesday, July 8, 2014

Housing outlook

"One of the foremost economists covering the housing market is Celia Chen with Economy.com. Her latest U.S. Housing Outlook, just released. Here is a summary of her key projections:  As employment conditions improve, pent-up housing demand will be released.  Home sales will remain at 5.5 million this year and accelerate to 6.4 million in 2015.  Credit remains tight, but mortgage lenders are expected to ease in coming months.  A smooth recovery depends on the Federal Reserve‚s ability to manage interest rates higher.  The U.S. housing market will rebound in the second half of this year and will strengthen further in 2015.  Demand will pick up, and a slender inventory of desirable homes for sale and tightening rental markets will jump-start residential construction. Strong demand will keep house prices appreciating.  A healthy housing market has substantial positive downstream effects on the broader economy.  Homebuilding drives job growth, while homebuying and growing housing wealth drive consumer spending.  Rising house prices also benefit credit quality. Gains in sales and property tax revenues help fill state and local government coffers.  These forces will boost overall economic growth, which will in turn fuel stronger demand for housing."

Monday, June 9, 2014

Housing market

"Americans' concerns about the direction of the economy and their household income appear to be weighing on housing growth, according to results from Fannie Mae's May 2014 National Housing Survey. The share of respondents who still believe the economy is headed in the wrong direction remained at 57% last month, and those who said their household income is significantly higher than it was at the same time last year decreased by 4% to 21%. Although respondents' attitudes toward housing have been generally positive during the past few months, their reluctance to enter the home buying or selling market has restrained activity below typical seasonal trends. These are likely the reasons some potential homebuyers are returning to the wait and see attitude that helped squash the market in 2011 and 2012."

Wednesday, May 21, 2014

Guilty!

 "Credit Suisseon Friday became the latest big bank to admit wrongdoing to the Securities and Exchange Commission, striking a deal over its failure to comply with a cardinal rule of the financial industry.
The bank, based in Zurich, was accused of advising clients in the United States without first registering at the S.E.C. Credit Suisse paid $196 million to settle with the federal agency, which requires banks and other firms that offer investment advice to comply with basic registration rules."

Another bank and fraud=shocking, NOT

Tuesday, May 13, 2014

Rent

"The housing market is shifting from homeownership to a rental environment. Even as home prices soar and value returns to real estate, the one number that just keeps falling is the nation's homeownership rate. In 1Q14, it fell below 65% for the first time since 1995. Homeownership currently stands at 64%, down from the 69% high during the last housing boom.
"Homeownership is one of the most important paths to the middle class for families. It's how folks put down roots, build wealth put kids through college, start businesses∑ if there are people who are ready to buy a home, but who aren't getting access to credit, then we've got a problem, and that is what we are facing right now." said HUD secretary, Shaun Donovan."

This unfortunately is due to the banks taking people's property away. There are a lot of people who got burned and they don't want to own again. Renting is very easy to walk away from versus a home people put their hearts into.

Wednesday, May 7, 2014

Credit cards, debt

"Wells Fargo is looking to bulk up its credit card business, where the bank believes it punches below its weight. It is one of the largest U.S. mortgage and auto lenders, but has a weaker market position in credit cards."

Of course…….

Friday, May 2, 2014

Correct accounting….really?

"The fact that Bank of America neglected to correctly account for certain structured notes that it inherited when it took over Merrill Lynch should not have surprised the market. And it raises the question of what other bad news may be coming from the big banks."

"Correctly account" or FRAUD?