September 22, 2005
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 3.75 PERCENT
The Federal Reserve's Open Market Committee raised the target for the federal funds rate by 25 basis points to 3.75 percent on Tuesday, marking the 11th straight increase since June 2004. The federal funds target rate is the interest rate charged by banks when they borrow funds "overnight" from each other.
"The widespread devastation in the Gulf region, the associated dislocation of economic activity, and the boost to energy prices imply that spending, production, and employment will be set back in the near term," the Fed said in a prepared statement. "While these unfortunate developments have increased uncertainty about near-term economic performance, it is the Committee's view that they do not pose a more persistent threat. Rather, monetary policy accommodation, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity." FED Press Release
Posted by QiRealtyEditor at 10:23 AM | Comments (0)
C.A.R. EXPECTS SLIGHT COOLING IN HOME SALES NEXT YEAR
The rate of home price appreciation will moderate next year following four years of steep increases, while sales in 2006 will decline slightly from this year's record pace, according to C.A.R.'s "2006 Housing Market Forecast" released today. The forecast was presented during the C.A.R. Centennial REALTOR® EXPO, running from Sept. 20 - 22 at the San Diego Convention Center.
The median home price in California will increase 10 percent to $575,500 in 2006 compared with a projected median of $523,150 this year, while sales for 2006 are projected to reach 630,610 units, falling 2 percent compared with 2005. The double-digit gain in the median price of a home, which California has experienced for most of the past five years, will again be fueled by the continuing shortage of housing across much of the state, according to C.A.R. economists. California typically gains nearly 250,000 new households, yet only will build about 200,000 new housing units this year, creating a shortfall of about 50,000 units.
"The economic fundamentals at both the state and national level continue to support a strong housing market in the Golden State for the foreseeable future," said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. "However, we also expect that the wave of new loan products that have flooded the market over the past several years have injected a higher level of risk into the market, while affordability barriers to homeownership will continue to push residents inland and even out of state." More Info from CAR.org
Posted by QiRealtyEditor at 10:11 AM | Comments (0)
September 14, 2005
PENDING HOME SALES DECLINE
While the Pending Home Sales Index (PHSI) hit its fifth highest reading on record in July, pending home sales have declined slightly, according to a recent report by NAR. Based on the number of transactions that have signed contracts but are not yet closed, the PHSI gauges home sales activity for upcoming months, as sales typically close within one or two months of contract signing. In July, the PHSI fell 1 percent below June's revised reading of 126.4 to 125.1 and stood 3.5 percent higher than the PHSI one year earlier. An index of 100 or more generally indicates a high level of home sales activity.
On a regional basis, the South led the nation with the highest PHSI at 139.2, an 8.3 percent increase above July 2004. Pending home sales also increased in the West, where the index rose 4.7 percent to 127.5. In the Midwest and Northeast regions, the PHSI declined to 113.6 and 109.0, respectively. Full article on Realtor.com
Posted by QiRealtyEditor at 10:21 AM | Comments (0)
September 07, 2005
Banks Allow Flood Victims To Hold Off From Making Mortgage Loan Payments (Finance Technology Network)
With tens of thousands of homeowners in four states displaced by Hurricane Katrina, some banks and finance companies are allowing customers to forgo monthly mortgage payments for 90 days without incurring late fees or other penalties. The Mortgage Bankers Association, an industry trade group, estimated that 360,000 single-family mortgages in the four states were affected by the hurricane and its floods. Full Report on Finance Technology.
Posted by QiRealtyEditor at 09:27 AM | Comments (0)
September 02, 2005
Mortgage rates dip and could fall further
The impact of Hurricane Katrina on financial markets is likely to push down mortgage rates, Freddie Mac said Thursday. See News in Yahoo! BizJournal
Posted by QiRealtyEditor at 10:50 AM | Comments (0)
September 01, 2005
Higher gas prices bring lower mortgage rates
It's hard to predict how the aftermath of Hurricane Katrina will affect mortgage rates and the housing industry. So far, there seems to be a trade-off: Higher prices at the gas pump result in lower mortgage rates. The benchmark 30-year fixed-rate mortgage fell 6 basis points to 5.80 percent, according to the Bankrate.com national survey of large lenders. The benchmark 15-year fixed-rate mortgage fell 4 basis points to 5.43 percent. The benchmark 5/1 adjustable-rate mortgage fell 6 basis points to 5.41 percent. Visit BankRate.com for full news report.
Posted by QiRealtyEditor at 09:10 AM | Comments (0)