Today’s News Synopsis:
The National Association of Realtors reported a 1.8% decrease in pending home sales, the first time this year to see sales decrease. The Federal Reserve has decided to keep the federal fund rate the same until the labor market continues to improve. Single-family rental securitization vacancy rates continue to show signs of increase.
In The News:
Housing Wire - “Bill to kill $3M raises for Fannie, Freddie CEOs gains momentum” (7-28-15)
“A bill that would eliminate the proposed $3 million pay raises for the CEOs of Fannie Mae and Freddie Mac is now one step closer to becoming law, as the bill advanced past the markup stage and is now set for a full vote of the House Financial Services Committee with bipartisan support in tow.”
DS News - “Senate Subcommittee Examines Strategies for Ending ‘Too Big to Fail’” (7-29-15)
“With many institutions still designated as “systemically important” or “too big to fail” even seven years after the financial crisis, a subcommittee of the Senate Banking Committee convened for a hearing on Wednesday to discuss ways in which bankruptcy reform could end “too big to fail” and get taxpayers off the hook for keeping large financial institutions alive.”
Bloomberg - “Private Equity Giants Hit Second-Quarter Wall as Stocks Hiccup” (7-29-15)
“The three biggest private equity firms posted lower second-quarter profit after U.S. stocks slipped for the first time since 2012. Blackstone Group LP, Carlyle Group LP and Apollo Global Management LLC each reported a drop in economic net income, an earnings measure that includes unrealized gains and losses that are marked to the market.”
Mortgage Professional America - “Will the Fed be raising rates soon?” (7-29-15)
“Could the Fed be getting close to a rate hike? If some analysts are right, one could be coming in six weeks. The Federal Reserve hasn’t raised interest rates – which are currently hovering close to 0% – in nearly a decade.”
Mortgage Bankers Association - “Refinance Applications Increase in Latest MBA Weekly Survey” (7-29-15)
“Mortgage applications increased 0.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 24, 2015.”
DS News - “Treasury Clarifies HAMP Participation Numbers Reported by SIGTARP” (7-29-15)
“A government watchdog’s quarterly report to Congress released on Wednesday found that the participation numbers for the Department of Treasury’s Home Affordable Modification Program (HAMP) have fallen short of original predictions in the program’s first six years of existence. But Treasury says there is more to the story than those numbers.”
Bloomberg - “Pending Sales of U.S. Existing Homes Unexpectedly Declines” (7-29-15)
“Fewer Americans signed contracts in June to buy previously owned homes, representing a pause in the housing market’s momentum. The index of pending home sales unexpectedly fell 1.8 percent, the first drop this year, after a revised 0.6 percent increase in May that was smaller than initially reported, figures from the National Association of Realtors showed Wednesday in Washington.”
Mortgage Professional America - “Industry calls for TRID grace period” (7-29-15)
“Over 20 real estate industry trade groups announced Monday their support of HR 3192, the Homebuyer Assistance Act, which will provide a “hold-harmless” grace period for TRID enforcement for those who make efforts to comply.”
DS News - “Vacancy Rates Among SFR Transactions Are Trending Higher” (7-29-15)
“Vacancy rates among single-family rental securitizations are trending higher, according to data reported by Morningstar Credit Ratings in its July 2015 Single-Family Research: Performance Summary Covering All Morningstar Rated Securitizations released Wednesday.”
Realty Trac - “Should We Use Real Estate Money To Fix Old Bridges?” (7-29-15)
“Usually the biggest problem with federal programs is a lack of cash, but that’s not the case with the government’s ideas for mortgage borrowers who have run into rough times. In fact, it turns out that government foreclosure prevention programs have a $20 billion surplus — money some on Capitol Hill now want for such things as road and bridge repairs.”
DS News - “Fed Determines More Labor Market Growth Is Needed In Order to Raise Rates” (7-29-15)
“Although Federal Reserve officials determined that economic activity is expanding moderately, the housing sector has shown additional improvement, and job gains have been solid with declining unemployment, the federal funds rate will remain the same at a target range of 0 to 1/4 percent, according to the Federal Open Market Committee (FOMC) July meeting.”
Bruce Norris of The Norris Group will be giving his California Real Estate Market Update with TIGAR on Thursday, August 13.
Bruce Norris of The Norris Group will be giving his California Real Estate Market Update with Tri-Counties Association of Realtors on Friday, August 14.
Bruce Norris of The Norris Group will be giving his Secrets to Becoming Wealthy with Tony Watson on Tuesday, August 18.
Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.
Copyright: Image from www.flickr.com/photos/124247024@N07/
The latest Case-Shiller Index showed a 0.3% decrease in home price gains. A bank in Illinois closed this week, bringing the new total for closed banks this year to 14. The U.S. homeownership rate decreased to 64.8% from 65% in the first quarter, bringing it to its lowest since 1995.
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