Category: Economic Crisis

Tapped out at the highest levels, buying a home is still out of reach for many Americans, despite softening home prices. The National Association of Realtors housing affordability index maintained a high of 161.8 in July. A level of 100 indicates that a family earning a median national income has enough to pay for a… Continue reading Despite Lower Home Prices Many Can’t Buy

For the first time in more than four months applications for new home mortgages rose as record low interest rates budged higher attracting buyers back to the marketplace, according to the Mortgage Bankers Association. However, refinancing applications showed a decline in activity for the first time in six weeks. The seasonally adjusted purchase index surged… Continue reading Home Purchase Applications Surge as Rates Move Higher

Fearful of upsetting voters over the troubled economy going into mid-term elections, the Obama administration is running low on options to heal the ailing U.S. housing market. The administrations $50-billion war chest to help fight foreclosures has lapsed into a slow motion nightmare as government policy makers run out of housing relief options. Getting people… Continue reading Housing Relief Options Running Low

By Mike Colpitts Responding to outcries over Wall Street and its actions with troubled Fannie Mae and Freddie Mac, new proposed federal regulations prohibit the two government-backed lenders from purchasing mortgages of private-label securities in the future, including commercial mortgage-backed securities, a major cause of the financial crisis. The regulations, proposed by the Federal Housing… Continue reading Major Changes Ordered at Freddie Mac and Fannie Mae

By Lois A. Vitt, Ph.D. Reasons for investing in rental housing include opportunities to make a profit, tax advantages to write-off mortgages and income from rents. So why not make the decision to buy more than one home—perhaps two, three, or even more? If you have what it takes to invest in and manage rental… Continue reading Investing in Rental Housing

Demonstrating that markets make erratic movements even in the midst of a decline, pending home sales rose slightly in July over June, according to the National Association of Realtors, while mortgage rates continued their downward slide. A 30-year fixed rate mortgage declined to 4.32% down .04% from a week ago, according to Freddie Mac. Pending… Continue reading Pending Home Sales Rise as Mortgage Rates Fall