Discussing the latest unemployment numbers, great news about decreasing foreclosure sales, mortgage rates and much more…
In the week ending January 28, the advance figure for seasonally adjusted initial claims was 246,000, a decrease of 14,000 from the previous week’s revised level. The previous week’s level was revised up by 1,000 from 259,000 to 260,000. The 4-week moving average was 248,000, an increase of 2,250 from the previous week’s revised average.
Good news despite the slight increase in the 4 week moving average.
ATTOM Data Solutions released its Year-End 2016 U.S. Home Sales Report, which shows 16.2% of single family home and condo sales in 2016 were distressed sales (bank-owned sales, short sales or foreclosure auctions sold to third-party buyers) down from 18.8% of all sales in 2015. This is the lowest level of distressed sales since 2007.
Bank-owned (REO) sales accounted for 8.0% of all sales in 2016, down from 10.0% in 2015. This is the lowest level of bank owned sales since 2006.
Short sales (homes that sold for less than the combined amount of loans secured by the property) accounted for 5.5% of all home sales in 2016, down from 6.0% in 2015. This is the lowest level of short sales since 2008.
Great news but this is talking about the entire U.S. and does not reflect what is happening in the Anderson SC area. In our area, 8.87% of home sales in 2015 were foreclosures compared to 6.51% in 2016.
I often think buyers get too obsessed with foreclosures instead of focusing on getting the best property at the best price with the best terms. Just because someone bought a foreclosure does NOT mean they got a good deal…
Information received since the Federal Open Market Committee met in December indicates that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace. Job gains remained solid and the unemployment rate stayed near its recent low. Household spending has continued to rise moderately while business fixed investment has remained soft. Measures of consumer and business sentiment have improved of late. Inflation increased in recent quarters but is still below the Committee’s 2 percent longer-run objective. Market-based measures of inflation compensation remain low; most survey-based measures of longer-term inflation expectations are little changed, on balance.
The Committee expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will rise to 2 percent over the medium term. Near-term risks to the economic outlook appear roughly balanced. The Committee continues to closely monitor inflation indicators and global economic and financial developments.
In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1/2 to 3/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation.
Remember the Fed does NOT set or determine mortgage rates. However, it is a good sign that mortgage rates may not rise as quickly.
While the Consumer Financial Protection Bureau, with the support of top Democratic Party leaders and 17 Democratic state attorneys general, is fighting in court to defend its leadership structure, a Republican-led effort in the Senate could render the legal battle over the CFPB a moot point.
On Tuesday, Sens. Deb Fischer, R-Nebraska; John Barrasso, R-Wyoming; and Ron Johnson, R-Wisconsin, introduced a bill that would replace the single director of the CFPB with a five-member bipartisan committee, a change the Republican Party has long pushed for.
Since the idiots in Washington can’t work together to solve any serious problems, how the freak is this supposed to work?
The CFPB was supposed to be free of political influence. It appears that the money behind the politicians don’t like not being able to influence or control the CFPB.
Total U.S. Weekly Rail Traffic Up 3.3%
Total U.S. weekly rail traffic for the week ending January 28, 2017 was up 3.3% compared with the same week last year.
AAR Senior Vice President of Policy and Economics John T. Gray said:
January rail traffic paints a mixed picture, with some commodities exceeding expectations, while others remained flat or down. For most of last year, coal carloads were down sharply, but for the past couple of months, including January, they’ve been the major force behind rail carload gains. We can probably expect continued uncertainty in energy markets going forward, but we’re hopeful that improving macro-economic fundamentals will drive improvement in rail volumes for many commodity categories this year.
Gray does not sound very encouraging. But I would rather someone be realistic than fill us with false hope or spew total BS.
JPMorgan Chase & Co will pay $797.5 million in cash to end all litigation brought on behalf the former Lehman Brothers Holdings Inc, whose September 2008 collapse triggered a global financial crisis.
JPMorgan, which had been Lehman’s largest secured creditor, was accused of exploiting its leverage as Lehman’s main “clearing” bank to siphon critical liquidity in the last few days before Lehman went bankrupt on Sept. 15, 2008.
Lehman creditors have maintained that JPMorgan unnecessarily extracted billions of dollars of collateral, and by doing so obtained a windfall at their expense.
Huge chunk of change. I wonder about people or businesses that can’t earn money without resorting to doing stuff like this.
Also causes me to think about the number of former JPMorgan employees that have recently been appointed to high positions by Trump…
Steve Mnuchin, former chairman and chief executive officer of OneWest Bank, known for its aggressive foreclosure practices, flatly denied in testimony before the Senate Finance Committee that OneWest used “robo-signing” on mortgage documents.
But records show the bank utilized the questionable practice in Ohio.
“Robo-signing” is the informal term for when a mortgage company employee signs hundreds of foreclosures, swearing they have scrutinized the documents as required by law when in fact they have not.
If my criticism of Trump appointing JPMorgan scum doesn’t get me thrown into the gulag, sharing this certainly will…
I am sure some will ignore it because they cannot believe anything negative about Trump. Kind of like how some Obama supporters can’t believe anything negative about Obama.
A new survey found that 81 percent of consumers are aware of smart homes, but only 26 percent want one at the moment, according to a report by accounting firm PricewaterhouseCoopers.
Not only are there serious security issues, it appears that the money spent on these high tech upgrades may not be recouped when you sell. If installing smart home stuff makes you happy or makes your life easier or saves you money, then maybe you should consider it.
Freddie: Mortgage Rates Steady to Begin February
- 30-year fixed-rate mortgages averaged 4.19%
- This is the same as last week
- Last year at this time, 30-year fixed-rate mortgages averaged 3.72%
- 15-year fixed-rate mortgages averaged 3.41%
- This is up from last week when it averaged 3.40%
- Last year at this time, 15-year fixed-rate mortgages averaged 3.01%
Now look way back in time to see that mortgage rates are still low compared to the highs of the past:
Remember this chart the next time you hear someone crying about mortgage rates increasing…
That’s it for today!