Government

If two tweaks were made to the Home Affordable Refinance Program (HARP), refinancing activity could increase substantially, according to a report from the Federal Reserve Bank of New York. One change would be to remove the cutoff date that limits eligibility to Fannie Mae and Freddie Mac loans that were obtained by June 1, 2009. The second change would be to allow borrowers to refinance under the program more than once.

Driven by stronger auto sales and rising gasoline prices, total retail sales increased 0.4 percent in June, down from May’s increase, the Census Bureau reported Monday. Economists had expected sales to increase 0.8 percent. May retail sales were revised to show an increase of percent, up from the originally reported 0.5 percent. The report suggested continuing struggles for the consumer sector, which represents 70 percent of the economy.

Ben Bernanke was up at the National Bureau of Economic Research (NBER) to celebrate the Federal Reserve's 100th birthday. Despite being chairman of the Fed, instead of receiving a birthday gift, he gave a birthday gift--and Wall Street partied. Bernanke was generous in comments to the beleaguered housing sector when he listed his reasons for optimism about the economy. But Bernanke saved his biggest boost for stock investors when he made clear the Federal Reserve has no intention of abruptly raising interest rates or cutting back on its $85 billion a month bond purchase program.

Foreclosures and mortgage delinquencies may be declining, but that doesn't mean the industry should let its guard down. In the Obama Administration's latest housing scorecard, which provides an overview of the housing market based on private and public sector data, officials continued to warn of a ""fragile"" recovery despite improvements. ""[W]e remain cautious because although mortgage delinquencies are trending down, they still remain quite high compared to historic norms,"" said Kurt Usowski, assistant secretary for economic affairs at HUD.

The Office of the Comptroller of the Currency (OCC) scheduled two workshops specifically for directors of national community banks and federal savings associations supervised by the regulator.

With criticism for the Obama administration and the shortcomings of the Dodd Frank Act, the House of Representatives Financial Services Committee announced Thursday a new plan to fix housing finance and end the bailout for good. The Protecting American Taxpayers and Homeowners Act (PATH) aims to end the federal bailout of Fannie Mae and Freddie Mac within five years; increase competition in the housing finance market; and offer consumers more choices when shopping for mortgages.

A report released Thursday by the Federal Reserve Bank of Cleveland answers the question, ""Are underwater homeowners less likely to move for employment?"" The researchers find that mobility did decline during the housing crisis, particularly in states with high levels of underwater homeowners. However, high underwater rates occurring alongside declining mobility rates does not necessarily signify a cause and effect relationship. In fact, the opposite appears to be true. ""Our results show that individuals with low equity actually move more than those with high equity,"" the researchers said.

Federal Reserve Governor Elizabeth A. Duke announced her intention to step down from her role in a letter addressed to President Obama Thursday.

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.51 percent (0.8 point) for the week ending July 11, up from 4.29 percent last week and almost a full percentage point higher than the same week last year (3.56 percent). The 15-year FRM averaged 3.53 percent (0.8 point), up from 3.39 percent previously. Meanwhile, Bankrate.com's weekly national survey saw mortgage rates rising to their highest level in the last two years. The 30-year fixed averaged 4.66 percent this week.

First-time claims for unemployment insurance jumped a surprising 16,000 to 360,000 for week ending July 6, the highest level since mid-May, the Labor Department Thursday. Economists expected the number of claims to drop to 337,000 from the 343,000 originally reported for the week ended June 29. The number of filings for that week was revised up to 344,000.