Posts filed under “Credit”
The chart above comes form the RealtyTrac Residential & Foreclosure Sales Report. It should come as no surprise that as rates rise, so too do all-cash purchases.
There are a few significant factors worth noting:
1) Last year, institutional investor purchases for residential properties (single family homes, condominiums and townhomes) accounted for 7.3 percent of all U.S. residential property purchases. This is up from 5.8 percent from in 2012 and 5.1 percent in 2011.
2) Median price of a distressed residential property — in foreclosure or bank-owned — was 38 percent below non-distressed property median ($108,494 versus $174,401) in December.
3) Bank-owned properties (REO) accounted for 9.3 percent of all U.S. residential sales last month, essentially unchanged from a year earlier (9.2 percent in December 2012).
Tracking Recent Levels of Financial Stress Amanda Janosko Federal Reserve Bank of Cleveland 01.17.14 The Cleveland Financial Stress Index (CFSI) has trended down throughout the fourth quarter of 2013 and early this year, indicating a reduction in the level of stress in the US financial system. During the federal government shutdown in October…Read More
Why Do Banks Feel Discount Window Stigma? Olivier Armantier Liberty Street Economics January 15, 2014 Even when banks face acute liquidity shortages, they often appear reluctant to borrow at the New York Fed’s discount window (DW) out of concern that such borrowing may be interpreted as a sign of financial weakness. This phenomenon…Read More
Drivers of Mortgage Choices by Risky Borrowers Fred Furlong, David Lang, and Yelena Takhtamanova FRBSF Economic Letter 2014-01 January 6, 2014 During the past decade’s housing boom, borrowers with lower credit ratings were more likely than higher-rated borrowers to choose adjustable-rate mortgages. This raises the question of whether, amid rapidly rising house prices,…Read More
Of all of the various government housing programs run by various federal agencies — Federal Housing Administration, Federal Housing Finance Agency, Housing and Urban Development and, of course, Fannie Mae — HARP is the most effective and efficient one out there. Odds are you have never even heard of the Home Affordable Refinance Program. And…Read More
China’s leaders are well aware that there’s too much infrastructure spending and too little spending by consumers, and they’re trying to “rebalance” the economy by easing interest rates and adding deposit insurance. The WSJ’s Ken Brown explains China’s financial system—with some help from claymation.
12/19/2013 10:22:20 PM2:11