Keeping Current Aug 5 2008
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Transcript of Keeping Current Aug 5 2008
8/14/2019 Keeping Current Aug 5 2008
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July 2008
keeping
you
current
By Madeleine Romanello
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“Hopefully the biggest part of thehousing decline will be over by the
end of the year ."
ReutersReuters
- U.S. Treasury Secretary Henry Paulson
Source: Reuters News 6/24/08
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“We are at the beginning of theend of the downturn. It will be along painful ending, but this is the
first step in bringing the downturn toa close.”
ReutersReuters
Source: Reuters News 6/26/08
- Mark Zandi, chief economist at Moody'sEconomy.com
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“It is still too early to call a bottomin the home sales market, but thevast majority of the declines insales are behind us.”
ReutersReuters
Source: Reuters News 6/26/08
- Adam York, economic analyst at Wachovia Corp inCharlotte, NC
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Sales of previously
owned houses rose 2%last month.
Source: NAR 6/08
tional Assoc. of Realtotional Assoc. of Realto
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Source: CNN Money.com 6/2/08
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With the national median priceof a single family home at$204,229, mortgage rates
around six percentand the average householdearning nearly $50,000, the
average home buyer spentabout 23 percent of their income on housing during
the first quarter of 2008.
CNN Money.comCNN Money.com
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On the path to a housingreboundSo the first time in a decade renters
can carry the mortgage paymentsand taxes on a new house for whatthey're paying a landlord.
Source: Fortune Magazine.com 6/25/08
ortune Magazine.comortune Magazine.com
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There were a total of eightmetropolitan areas with month-to-month gains, led by a 2.9
percent increase in Cleveland.
Case-ShillerCase-Shiller
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Source: Wall Street Journal 6/05/08
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“I don’t think people appreciate howlong it’s going to take to get theinventory level back down enough to
give sellers some pricing power. It’sgoing to take, in our opinion,two to three years.”
- Paul D. Puryear, a real estate analyst at Raymond James
& Associates.
Source: New York Times 5/25/08
New York TimesNew York Times
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Source: Wall Street Journal 6/02/08
irst American CoreLogi
231,000
493,0
00
660,0
00
REOs
January 2007 January 2008 April 2008
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ource: Credit Suisse
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Lenders stung by the housing bustare slashing prices dramatically to ridthemselves of an unprecedented
number of foreclosed properties.
Associated Pressssociated Press
urce: Associated Press 6/12/08
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www.homesafepmi.com/
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“Home prices, based on the S&P/Case-Shiller data, have fallen about 15percent and I am expecting them to
drop another 10 percent beforereaching a trough in the spring of 2009.”
ReutersReuters
Source: Reuters News 6/26/08
- Mark Zandi, chief economist at Moody'sEconomy.com
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“Home prices may fall 25 percent to 30 percent fromtheir peak in 2006 and not hit
bottom until 2010, with greaterdrops still in subprime mortgagedebt markets.”
urce: Reuters 6/11/08
- Peter Acciavatti, credit analyst and
managing director at JP MorganSecurities Inc
ReutersReuters
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The median existing-home price is likely todecline 8.4 percent
in the first half of this year , and thenbegin to stabilize in the
second half.
ource: NAR 6/09/08
tional Assoc. of Realtotional Assoc. of Realto
B k’ L diB k’ L di
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Bank’s LendingBank’s Lending
StandardsStandards
ource: Federal Reserve
April 2002 June 2008
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5
7
9
11
13
1983 2007
rtgage Rates –rtgage Rates – 30 year fixed 30 year fixed
urce: mortgage-x.com 6/10/08
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5.9
6
6.1
6.2
6.3
6.4
6.5
ortgage Rates –ortgage Rates – 30 year fixed 30 year fixed
May 22 June 26urce: Federal Reserve
Fi iFi i
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FinancingFinancing
flexibilityflexibility
How can theseller make
their homemoreattractiveto a greaterpool of
buyers?
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Source: The Washington Post 6/10/08
The number of FHA loansissued rose 126 percent in
the first quarter of 2008,compared with the sameperiod a year ago.
ashington Postashington Post
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Source: Wall Street Journal 6/24/08
all Street Journalall Street Journal
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Rates on jumbo-conforming loansare currently 6.59 percent comparedto non-conforming jumbos which are
averaging 7.4 percent.
all Street Journalall Street Journal
Source: The Wall Street Journal6/19/08
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all Street Journalall Street Journal
Source: The Wall Street Journal6/19/08
At J.P. Morgan Chase & Co., the volumeof jumbo-conforming applications hasdoubled since prices began to fall in
early May.
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all Street Journalall Street Journal
Source: The Wall Street Journal6/19/08
For some California lenders, jumbo-conforming loans now account for asmuch as 25 percent of applications,
says Pete Ogilvie, president of theCalifornia Association of MortgageBrokers. "Most of the activity is inpurchases.”
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all Street Journalall Street Journal
Source: The Wall Street Journal6/19/08
In March 2007, before the creditcrunch hit, jumbo loans accounted formore than 12% of loan applications,
based on the number of loans,according to the MBA, with the shareof jumbo loans much higher in manyhigh-priced markets. The jumbo sharestood at 6% in May, after falling to aslow as 4.4% in March.
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“The settlement will ultimately meana drop in sales commissions of 25
percent to 50 percent as a result of
increased competition.”
urce: The New York Times 5/28/08
DOJ RulingDOJ Ruling
- Norman Hawker, a business professor atWestern Michigan University who organized asymposium on the Justice Department litigationas a senior fellow for the American Antitrust
Institute
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“More than three-quarters
of thesurvey respondents seesavvy customers not as a
threat, but as anopportunity todifferentiate.”
IBM CEO StudyIBM CEO Study
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TravelTravel
agentagent
or doctor?or doctor?
Better InformedBetter Informed
ConsumersConsumers
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