Archive for June, 2008

And Yet the Sale of Countrywide is Going to Happen

Thursday, June 26th, 2008

The sale of Countrywide Mortgage to Bank of America absorbed another blow this week as three states took legal action against the lender. The attorneys general of California and Illinois and the Washington State department that regulates financial institutions all filed lawsuits against Countrywide on Tuesday alleging variations on the theme ...

Fed Creates Two New Entities for Risk Management and Communication

Thursday, June 26th, 2008

The New York Fed created two new entities on Thursday in an effort to improve the bank's risk management and communications among regional and community banks. The Communications Group "was created in recognition of the increasing roles and responsibilities of the communications and regional and community affairs area in the Bank... ...

Condo Sales Main Driver of 2.0% Rise in U.S. Existing Home Sales

Thursday, June 26th, 2008

Condominium sales were the main driver of the 2.0% rise in existing home sales in May, which came in higher than the 1.2% gain expected by economists. Condo sales rose 5.5% in May, more than reversing the 5.2% monthly drop in April, while single family home sales rose 1.6% in the ...

Soaring Gas Price Will Push Millions Off the Road, Says CIBC Report

Thursday, June 26th, 2008

Soaring world oil prices will drive the cost of gasoline in the U.S. into the stratosphere over the next two years, forcing many Americans off the road and drastically altering the driving habits of millions more, according to a report released Thursday by CIBC World Markets. American driving habits will have ...

U.S. Existing Home Sales Rise 2.0% to 4.99 Million in May

Thursday, June 26th, 2008

U.S. existing home sales rose to 4.99 million units in May, or 2.0%, following April's unrevised sales figure of 4.89 million. This is the third month that home sales have remained under the 5 million mark. Economists were expecting the May data to rise to 4.95 million, or 1.2%, following the ...

Higher Jobless Claims Data Indicate Job Market Deterioration, Economists Say

Thursday, June 26th, 2008

Economists say the higher-than-expected initial jobless claims reading for the week ending June 21 and four-year high reached in continuing claims illustrates the continued deterioration of the U.S. labour market. "Three straight weeks of claims in the mid-380s is not good news; this is recession territory," said Ian Shepherdson, Chief U.S. ...

Thursday’s Events: Final US Q1 GDP, Initial Jobless Claims, U.S. Existing Home Sales

Thursday, June 26th, 2008

A final look at U.S. first quarter GDP and initial jobless claims will be the key releases of the morning followed by the releasing of U.S. existing home sales. Europeans will be paying attention to comments from Jürgen Stark of the European Central Bank and energy traders will focus on ...

FOMC Holds Target Rate at 2.00%, Cites Uncertainty in Inflation Outlook

Wednesday, June 25th, 2008

The Federal Reserve announced Wednesday that it would hold the Fed funds target rate at 2.00%, as was widely expected. The accompanying statement was balanced between a concern for slowing growth and rising uncertainty in inflation. In the statement, the Fed said "overall economic activity continues to expand, partly reflecting some ...

New Homes Sales Continue to Fall, Down 2.5% in May

Wednesday, June 25th, 2008

After five months of declines in the pace of new home sales, April's uptick appears to have been temporary as new home sales in the U.S. continued to fall back 2.5% down in May, declining to 512k, in line with expectations from economists. This follows an upwardly revised reading of 525k ...

Mortgage Rates Continue to Set New 2008 Records, Applications Fall

Wednesday, June 25th, 2008

Fixed-rate mortgage interest increased again during the week ended June 19 according to results from the Primary Mortgage Market Survey released by Freddie Mac. The 30-year fixed-rate mortgage (FRM) jumped from 6.32 percent to 6.42 percent with fees and points... Read More Now