Today’s News Synopsis:
An opinion survey from the Federal Reserve shows demand for commercial and industrial loans decreased in the third quarter. Budd Bugatch claims housing fell to 2.22% of nominal GDP in the 3rd quarter. Foreclosure inventory increased 1.1% in September, according to LPS.
In The News:
Housing Wire – “Federal Reserve Bank finds lenders slightly easing credit standards” (11-9-10)
“Banking institutions large and small are gradually easing their lending standards due to decreased demand for loans. The Federal Reserve Bank Senior Loan Officer Opinion Survey reported that demand for commercial and industrial loans decreased across the board in the fourth quarter after regaining ground the first half of 2010.”
Housing Wire – “IAS360 house price index fell 0.2% for 3Q” (11-9-10)
“home prices in the Midwest fell 1.4% for the third quarter, declined 0.5% in the West and slid 0.4% in the South. The HPI for the western region, which includes California and Nevada, is down 26.7% from its peak, according to the IAS360.”
Housing Wire – “Panel: Consumer protection bureau may eventually regulate mortgage banking” (11-9-10)
“The Consumer Financial Protection Bureau could be responsible for the regulation of 85% of the mortgage banking industry when supervision responsibilities shift in July 2011.”
Housing Wire – “FDIC proposes changes to assessments for fees to assets from deposits” (11-9-10)
“The Federal Deposit Insurance Corporation approved a regulatory change for basing its fees on assets minus average tangible equity rather than a fee system based on domestic deposits.”
Bloomberg - “U.S. Housing’s Postwar Low Threatens Home Depot: Chart of the Day” (11-9-10)
“U.S. home-improvement retailers face ‘rising headwinds’ as housing investment’s share of the economy falls to a post-World War II low, according to Budd Bugatch, an analyst at Raymond James & Associates Inc. Housing fell to 2.22 percent of nominal GDP in the third quarter from 2.45 percent in the second. The previous low was 2.35 percent, set in the first three months of this year.”
Inman - “Foreclosure inventory rises in September” (11-9-10)
“Foreclosure inventory stood at 3.84 percent of all loans in September, up 3.6 percent from September 2009 and 1.1 percent from August, according to LPS’ monthly Mortgage Monitor report. Nearly 275,500 homes that hadn’t been in the foreclosure process in August started foreclosure in September, down 0.6 percent year-over-year and 2.5 percent month-to-month.”
Orange County Register – “O.C. property index’s 1st gain in 4 years” (11-9-10)
“The Big O Property Index, up for three consecutive quarters, rose 0.02% this summer vs. a year ago. Last gain? A rise at an 1.4% annual rate in summer 2006.”
One year ago, a survey of 1,500 registered voters showed that most citizens were still pessimistic towards California’s financial future. Default notices doubled in Los Altos, Greenbrae and Alamo from 2008 to 2009. Zillow reported that the number of under water mortgages decreased in the U.S. decreased by 2 percent in the third quarter.
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