Home / Tag Archives: Capital Economics (page 10)

Tag Archives: Capital Economics

National Unemployment Rate Falls to 9%

The nation's unemployment rate dropped to 9.0 percent in January, although employers added just 36,000 jobs to their payrolls, according to figures just released by the Department of Labor. January's rate is down from 9.4 percent in December, and is the lowest jobless reading reported by the federal government in two years. The market was expecting the drop. The Dow Jones Industrial Average broke 12,000 on Thursday in anticipation of the decline.

Read More »

Homeownership Levels Lowest Since 1998, More Declines Predicted

Homeownership levels posted Monday by the U.S. Department of Commerce are, at 66.5 percent, the lowest they have been since the fourth quarter of 1998. By contrast the rental vacancy rate decreased 0.9 percent from the rate in the third quarter of 2010, and is the lowest it has been since the first quarter of 2003. Analysts say the nation's homeownership rate is likely to fall further, as evidenced by a combination of weak housing demand and high supply.

Read More »

Fed Sticks to Policy Initiatives as Economic Growth Remains Constrained

The Federal Reserve board held its first meeting of 2011 this week. It may be a new year with new faces around the boardroom table, but there's nothing new in the central bank's policy direction or its assessment of the economic recovery. Board members voted to press forward with plans to buy another $600 billion in securities and to keep the Fed's benchmark interest rate near zero, where it's been for two years now. One distinction did emerge--the vote was unanimous in favor of the policy decision for the first time in 12 months.

Read More »

Demand for Mortgages Fluctuates at Year-End but Remains Weak

The number of mortgage applications filed by consumers bounced up and down during the final weeks of 2010, dropping the week before the Christmas Day holiday and rising the week after. Market watchers warn that although a number of economic indicators have signaled improvement in recent weeks, the incremental boosts are doing little to lift the home financing market, which with mortgage rates steadily rising, looks to be situated for many more months of depressed activity.

Read More »

Sales of Existing Homes Gain Ground in November

Existing-home sales got back on an upward path in November, resuming a growth trend since bottoming in July, the National Association of Realtors (NAR) reported Wednesday. Sales of previously owned homes rose 5.6 percent last month. Distressed homes accounted for 33 percent of the month's total sales volume. Housing inventory at the end of November fell 4 percent to 3.71 million existing homes available for sale, which represents a 9.5-month supply at the current sales pace.

Read More »

New Mortgage Applications Fall as Rates Rise for Fifth Straight Week

Data released by the Mortgage Bankers Association (MBA) Wednesday shows that consumer demand for mortgages waned last week as interest rates soared to their highest level in nearly seven months. MBA's index of new applications for home purchases plummeted 5.0 percent, breaking a three-week streak of increases, while the refinance index slipped 0.7 percent. MBA says Treasury rates increased last week following news that lower tax rates could be extended for another two years. Mortgage rates also followed higher.

Read More »

Research Firm Says Housing Currently Undervalued by 14% to 17%

The sharp fall in residential property prices in the third quarter means that housing in the U.S. has become even more undervalued. Based on the latest readings of two closely watched industry gauges, the analysts at Capital Economics have concluded that house prices are now 14 to 17 percent undervalued relative to disposable income per capita. A 30-year high in housing affordability hasn't been enough to drive consumer demand, and the research firm says recovery appears to have stalled before it even really began.

Read More »

Pending Home Sales Surge Unexpectedly in October

Industry data released Thursday showed that the number of contracts signed for home purchases climbed in October. The news came as a surprise to analysts and industry professionals who have been anticipating a continued falloff in buyer demand due to the typical seasonal slowdown in home sales, compounded by concerns that servicers' affidavit problems could muddy some transactions. The National Association of Realtors says its gauge of pending sales for previously owned homes rose 10.4 percent.

Read More »

FHFA Index Shows 1.6% Drop in Third-Quarter Home Prices

Home prices in the U.S. continued to fall in the third quarter, with declines in most parts of the country, according to the Federal Housing Finance Agency (FHFA). FHFA's purchase-only house price index is calculated from mortgages acquired by Fannie Mae and Freddie Mac. It was 1.6 percent lower in the third quarter when compared to the second. Analysts warn that we may have entered a second downturn, although likely shorter and less severe than the one that brought the financial system to its knees.

Read More »

NAR Reports Existing Home Sales Declined 2.2% in October

In September, when existing home sales rose 10 percent, the National Association of Realtors (NAR) released a statement declaring the numbers meant a sales recovery had begun. One short month later, and after only two months of gains, sales have slumped 2.2 percent to a 4.43 million annual rate - which was even lower than economists had predicted. Also down was the median price of existing homes sold. Analysts agree that the recent foreclosure freezes likely disrupted a number of pending sales.

Read More »

Your Daily Dose of DS News

Get the news you need, when you need it. Subscribe to the Daily Dose of DS News to receive each day’s most important default servicing news and market information, absolutely free of charge.