RealEstateEconomyWatch.com

Banks Could Tank New FHA Refinancing Program

A new FHA program launching next Tuesday allows homeowners who are underwater on their mortgages to refinance at today’s record low rates, take at least 10 percent off their principal, and get a new FHA loan that will leave them with positive equity in their home.

Tax Credit Talk Splits Real Estate Community

HUD Secretary Shaun Donovan created turmoil in the real estate industry when he said on CNN Sunday that a restoration of the homebuyer tax credit is “not off the table” and that it is “too soon to say” whether the administration’s credit tax credit, which expired April 30, will be revived.

Donovan Floats Tax Credit Balloon

After admitting twice that the July home sales numbers released last week were “clearly worse than we expected,” HUD Secretary Shaun Donovan did not rule out the prospect that the Administration will revive the homebuyer tax credit that expired April 30.

Economists Saw Housing Recovery Faltering Before July Sales Report

Inventories Soar to Critical Levels

Inventories of existing homes for sale as measured by months supply broke an all-time record in July.

First-time Buyers Sink Below Pre-Credit Levels

Last month, first-time homebuyers’ share of the housing market fell lower than it has been since 2008 when the first-time version of the homebuyer tax credit took effect.

Cost of Homeownership Reaches $1,000 Monthly

Homeowners paid a median of $1,000 in monthly housing costs in 2009, compared to $808 for renters, according to data released today by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

Homeowners: Worst is Yet to Come

Homeowners have turned more pessimistic about near-term prospects for home values in their local housing markets than they have been in the past three quarters.  One out of three now believes home values in their local markets have not yet reached a bottom and more than a quarter (28 percent) expect home values in will decrease over the next six months.

TransUnion Reports Delinquencies Fall for Second Straight Quarter

Another provider of national credit data reported today that mortgage delinquencies have been falling during the first half of the year, suggesting that the housing sector is beginning to stabilize.

Geithner Blasts Fannie and Freddie

He also announced the Administration will not support returning Fannie and Freddie to the role they played before they entered conservatorship in 2008, “where they fought to take market share from private competitors while enjoying the privilege of government support.”

At Long Last– Good News for Housing

Housing activity has slipped considerably during these past several months but help may be on its way. A primary obstacle to a long term housing recovery has been a lack of hiring. But recent gains in the job market portends favorably for a needed boost in housing demand.

Housing Outlook: A Mixed Bag

Looking forward, expect downward pressure on home values, as measured by the Case-Shiller index, due to mounting foreclosures, supply imbalances and relatively weak housing demand.

A Sputtering Housing Market

Housing activity is sputtering even though there are government subsidy programs in place to support housing demand.

Observations on the Economy and Housing Market

At a cursory glance, the U.S. economy is improving, while the status of the housing market remains uncertain.

Mounting Foreclosures Impede Housing Recovery

It is painfully clear that the number one obstacle preventing a complete housing recovery is the foreclosure crisis.

Falling Home Values: The Worst may be Over

During the past several years, the nation’s housing sector has been weighed down with a disturbing trend that had been absent since the Great Depression: falling home values.

The New Year Begins with Uncertain Housing Outlook

Housing data released this past month suggest a more uncertain housing outlook than the month before.

Housing Industry Poised to Recover in 2010

As we approach the New Year, we are more hopeful about prospects for 2010 compared to the dismal performance of 2009.

A Web of Housing Subsidies Threatens the Recovery

Don’t let recent good news about the nation’s housing sector lull you into believing that the housing market is firmly on the road to recovery-because it isn’t.

Is the Expanded Homebuyer Tax Credit Overkill?

Wild swings in the housing data released this past week indicate that both homebuilders and households were heavily influenced by the tax credit extension debate.