Archive for April, 2008

FOMC Cuts Target by 25 Bps to 2.00%, Says Economic Activity “Remains Weak”

Wednesday, April 30th, 2008

The Federal Reserve announced Wednesday that it cut the Fed funds target rate by 25 basis points to bring the key interest rate to 2.00%. The discount rate was also cut by 25 basis points to 2.25%. In an accompanying statement, the Fed said "substantial" easing should promote growth, but ...

Inflation Fears Cast Shadow on Mortgage Rates and Applications Decline

Wednesday, April 30th, 2008

Fears of inflation pushed mortgage rates higher according to the results of Freddie Mac's Primary Mortgage Market Survey for the week ended April 24. The Survey reported that the 30-year fixed-rate mortgage (FRM) averaged 6.03 percent with 0.3 point compared to 5.88 percent with 0.4 point the week before. Mortgage application volume ...

Zillow, Always Creative, Puts a New Twist on Mortgage Lead Generation

Wednesday, April 30th, 2008

Zillow has just inaugurated another aspect to its real estate services portfolio. Now Zillow has turned the lead generation industry on its head. Calling its service the Zillow Mortgage Marketplace, Zillow offers borrowers the opportunity to receive multiple free quotes without submitting sensitive financial information on the site and for lenders to ...

Pimco’s Gross Warns that Further U.S. Housing Declines Could Be “Ruinous”

Tuesday, April 29th, 2008

Housing price declines remain the greatest challenge to financial markets and could prompt a deep recession, according to Pimco's Bill Gross. "Home prices which have fallen by 10% over the past 12 months and are set for a repeat by this time in 2009. Lower Fed Funds? They would, in Pimco's ...

Another Loss for Countrywide as Bank of America Plans for Future

Tuesday, April 29th, 2008

Countrywide Financial Corporation logged in on Tuesday with its third consecutive quarterly loss due to a sharp increase it its provision for loan losses. On Tuesday the Nashville Business Journal reported that Bank of America is planning to modify or otherwise work out some 265,000 Countrywide loans, allowing those customers to ...

Consumer Confidence Falls Less Than Expected in April

Tuesday, April 29th, 2008

The Conference Board's consumer confidence index fell to 62.3 in April's report on Tuesday, confirming declines seen earlier in the month from other measures of consumer sentiment, yet coming in slightly higher than the consensus expectation of 62.0. The previous month's reading of 64.0 was revised upwards to 65.9. Following a 35-year ...

No Need for Second Stimulus Package

Tuesday, April 29th, 2008

Speaking in an interview with Fox Business news on Monday evening, U.S. Treasury Secretary Henry Paulson said he did not believe that a second fiscal stimulus package was necessary and that the tax rebates mailed out yesterday would make a real difference to GDP. Read More Now

Home Prices Slide in February

Tuesday, April 29th, 2008

The S&P Case-Shiller home price index continued its sharp decline in February as both the 10-city and 20-city composite indexes posted record annual declines in excess of 12.5%. The weakest markets over the past year have been Las Vegas and Miami, which have fallen by 22.8% and 21.7%, respectively. Jacqui Douglas, economic ...

Treasury Undersecretary Steel Sees Good Progress in Economic Recovery, Housing

Monday, April 28th, 2008

Progress on the U.S. economic slowdown and housing sector have been encouraging, according to U.S. Treasury Undersecretary Robert Steel, speaking to Society of American Business Editors and Writers Annual Conference in Baltimore, Maryland. Read More Now

First Quarter Vacancy Rates Rise

Monday, April 28th, 2008

National vacancy rates in the first quarter of 2008 were 10.1% for rental housing, up from 9.6% in the fourth quarter of 2007, and 2.9% for homeowner housing this quarter, compared to 2.8% in the previous quarter, according to a report from the Census Bureau on Monday. Read More ...