Talking about the implication of the jobs report, reducing housing regulations, single women buying homes in high numbers and more…
Although the headlines are likely to focus on the big “beat” of monthly employment creation (227,000 new jobs, compared with consensus expectations of 180,000), the January jobs report released Friday is much more complex and nuanced — both in its messages and implications.
Excellent read and my main takeaway is that the odds of the Fed raising their benchmark rate is lowered in the short term. Which could help mortgage rates remain attractive for the time. No guarantees about that since so many different things affect mortgage rates.
Beware of what may be coming next. We already know the establishment has a plan to blame President Trump for the next financial crisis, and now there are moves being made that will support that narrative.
After the 2008 fiasco, a spotlight on Wall Street misbehavior and some weak, but better-than-nothing regulations were put on the industry in the hopes of preventing another string of bank failures and crippling economic disasters.
But as the system teeters on edge and prepares to endure the backlash of increased rates at the Fed, Trump is also taking off the shackles that have been put in place by the Dodd-Frank Act which instituted certain protections for consumers, including a requirement that pensioners don’t have their nest egg devoured, etc.
It never ceases to amaze me those that swallow hook, line and sinker that all government regulations are bad….
I would say good regulations are good and bad regulations are bad. Applying common sense and a willingness to change regulations is the key. Not just repealing everything and letting big businesses, the banks and Wall Street run amok.
In an August 11, 2016, speech before the National Association of Homebuilders’ (NAHB) Board of Directors, Presidential candidate Donald Trump made one of his few public campaign statements about housing costs.
“No one other than the energy industry is regulated more than the home building industry,” he said. “Twenty-five percent of the cost of a home is due to regulation. I think we should get that down to about 2 percent.”
The statistic Trump cited was from a 2016 NAHB study claiming that regulations imposed by the government at all levels account for 24.3 percent of the final price of a new single-family home built for sale.
Yet another article about reducing regulations. Just like I said before, not all regulations are bad. Or good.
As this article points out, some of the regulations that add to the cost of a home are state or local. Which means it will take local people to make a difference by voting, attending council meetings, making their voices heard.
While it is admirable for Trump to want to lower the regulatory costs of a house, it will take locals to make a difference in their local housing market. After all, real estate is and always has been local…
The news and research about women and money can be dreary. Women earn less than their male counterparts, pay harsher workplace penalties for pursuing parenthood, struggle more with debt, and save less for retirement.
But there’s one area of personal finance where single women are outpacing men in the U.S., and it’s a significant one: home ownership.
If the time is right for you to buy a home, then do not hesitate. If it is NOT the right time for you to buy a home, then look at improving your finances. Save money for when buying a house DOES make sense for you.
There has historically been a distinct correlation between income tax refund disbursements and delinquent mortgages curing to current status.
Looking at IRS filing statistics, we see that nearly one in five Americans file their returns within the first two weeks of tax season, and over 40 percent had completed their taxes by the first week in March. Unsurprisingly, incentive played a big role in this timing; not only were Americans who filed early more likely to receive a refund than those filing later, but they also received larger refunds on average. Likewise, mortgage cures — delinquent borrowers who bring themselves back to current status — correspondingly spike in February and March as well, suggesting that some portion of Americans are using their tax refunds to make past-due payments on their mortgages. In recent years, this has meant nearly 300,000 borrowers on average paying their loans current in February and March alone, on top of normal cure volumes for the typical month. All things being equal, there’s no reason to expect this tax season to be any different.
While people catching up on their late mortgage payments and preventing foreclosure is great, I wonder how many run into trouble again?
Can some of these people take advantage of today’s great mortgage rates to refinance? Or maybe they can sell since home prices have risen so much over the past few years?
Almost a decade after it all began, the Federal Reserve is finally talking about unwinding its grand experiment in monetary policy. The talk has prompted some on Wall Street to suggest the Fed will start its drawdown as soon as this year, which has refocused attention on its $1.75 trillion stash of mortgage-backed securities. Yet because the Fed is now the biggest source of demand for U.S. government-backed mortgage debt and owns a third of the market, any move is likely to boost costs for home buyers.
This could seriously impact mortgage rates. And not in a good way…
With today’s announcement from the administration that Dodd-Frank regulations are about to be dismantled, this nightmarish period of excessive stability will finally be coming to a close. It’s about time that America’s deposit-taking institutions got back to the business of leveraged speculation, empire building and unchecked expansion that made this country what it is today – a culturally divided paradise of extreme wealth disparity and populist rage. The tens of millions of Americans who came out to vote for Donald Trump and the subsequent hundreds who attended his inauguration have grown sick and tired of the burdensome protections and safeguards that have been put in place for them.
A must read but only if you can grasp sarcasm.
The two primary disasters in American history this century (if we’re not counting Trump’s election) have been 9/11 and the 2008 financial crisis, which cost 8.7 million people their jobs and may have destroyed as much as 45 percent of the world’s wealth.
The response to 9/11 we know: major military actions all over the world, plus a radical reshaping of our legal structure, with voters embracing warrantless surveillance, a suspension of habeas corpus, even torture.
But the crisis response? Basically, we gave trillions of dollars to bail out the very actors who caused the mess. Now, with Trump’s election, we’ve triumphantly put those same actors back in charge of non-policing themselves.
Asking the idiots that caused the financial crisis for advice does not seem logical, prudent or wise.
American greatness was long premised on the common assumption that each generation would do better than the previous one. That is being undermined for the emerging millennial generation.
The problems facing millennials include an economy where job growth has been largely in service and part-time employment, producing lower incomes; the Census bureau estimates they earn, even with a full-time job, $2,000 less in real dollars than the same age group made in 1980. More millennials, notes a recent White House report, face far longer periods of unemployment and suffer low rates of labor participation. More than 20 percent of people 18 to 34 live in poverty, up from 14 percent in 1980.
Since 2004, homeownership rates for people under 35 have dropped by 21 percent, easily outpacing the 15 percent fall among those 35 to 44; the boomers’ rate remained largely unchanged.
The decrease in income and decreasing home ownership levels is quite distressing.
What can be done to help every hard working, tax paying, deserving and credit worthy person the wealth building opportunity of home ownership?
What can be done to increase the number of good paying jobs?
2 very tough questions and sadly, I do not have the answers.
For the country as a whole, the NAHB/First American Leadings Markets Index (LMI) rose to .99 in the fourth quarter of 2016, .01 point higher than its level in the third quarter of 2016, .98, and .05 point higher than its level from one year ago, .94. The LMI is now .21 point above its low of .78 reached in March 2012. The index uses single-family housing permits, employment, and home prices to measure proximity to a normal economic and housing market. The index is calculated for both the entire country and for 337 local markets, metropolitan statistical areas (MSAs). A value of 1.0 means the market (or country) is back to the last level of normality.
Close only counts in horseshoes and hand grenades…
While house prices are much better, the level of home building, income growth and other various economic indicators still have a way to go. Maybe the idiots in Washington got the point after the election and are going to work on helping the average American?
Well, we can hope anyways…