Government

While Barack Obama and Mitt Romney may have been ""frustratingly light on detail"" so far with regards to housing, an analysis by Capital Economics reveals the two candidates' policies may have more in common than they care to admit. In a Housing Market Update released by the company, property economist Paul Diggle writes that, based on the information Capital Economics has pieced together, ""it looks like anyone expecting either candidates' housing plan to make a dramatic difference to the course of the housing recovery will be disappointed.""

Fannie Mae's Economic & Strategic Research Group expects economic growth to ""remain at a sluggish sub-2 percent rate this year."" While the outlook on the economy was uncertain, the assessment for the housing market was more stable. Despite an anticipated dip in home prices for the winter season, the research group maintains the viewpoint that prices hit bottom earlier this year. In addition to the bottoming out of prices, the GSE's research group said record low mortgage rates should encourage more consumers to enter the housing market.

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year FRM averaged 3.37 percent (0.7 point) for the week ending October 18, down from the previous week when it was 3.39 percent. The 15-year FRM also fell, averaging 2.66 percent (0.6 point) this week compared with 2.70 percent in the last survey. Frank Nothaft, VP and chief economist for Freddie Mac, said the minor adjustments stem from growth in home construction.

Oklahoma Attorney General Scott Pruitt has issued the first borrower payments resulting from settlements with the nation's five largest mortgage servicers over faulty foreclosure processing. Oklahoma families who were subject to the servicers' ""unfair and deceptive practices ... following the financial crisis,"" can expect to receive their checks soon, Pruitt said. Oklahoma was the only state to craft its own agreement with Bank of America, Citi, JPMorgan Chase, GMAC/Ally, and Wells Fargo.

First time claims for unemployment insurance shot up 46,000 to 388,000—the highest level since July — for the week ended October 13, the Labor Department reported Thursday. Economists expected initial claims to bounce back up to 365,000 after seasonal factors drove the number of claims down to the lowest level in 54 months.

As part of the agreement under the national mortgage settlement, Bank of America has completed or approved more than $4.75 billion in principal reductions on first mortgages, with the average principal reduction exceeding $150,000. Through the bank's principal reduction program, 30,000 homeowners have been approved for a trial modification or received a permanent modification as of the end of September.

When a home is sold through a foreclosure sale, at times the debt on the mortgage is not fully recovered through the sale. The remaining amount is the deficiency, and this amount is passed on to the mortgage owner to absorb or to try and collect from the borrower. The FHFA's Office of Inspector General (OIG) revealed in a report Wednesday that Fannie Mae and Freddie Mac have a recovery rate of only 0.22 percent when pursuing deficiencies, leaving room for much improvement.

With home prices down so far down from their peak and mortgage rates hovering around record lows, many analysts are saying home affordability could hardly be any higher. However, a study released by Interest.com shows homes are only truly affordable in about half of the nation’s major cities. Rising expenses and stagnant wages are preventing median-income households from being able to afford median-income homes, explained Mike Sante, managing editor for Interest.com.

Following FHFA's report on HARP refinances in August, Keefe, Bruyette & Woods (KBW) released its own analysis of the data and expressed anticipation for an even greater increase in non-HARP refinance activity. KBW explained FHFA data on HARP volume showed a 2.6 percent month-over-month increase in August, while non-HARP GSE refinance activity was up 23.6 percent.

Housing starts and permits jumped in September to their highest levels since July 2008, Census Bureau and Department of Housing and Urban Development reported jointly Wednesday. Housing starts jumped 15.0 percent from August to a seasonally adjusted annual rate of 872,000, while permits improved 11.6 percent to 894,000.