Wednesday, November 29, 2006 - Greenspan: Worst Is Over for Housing

Yes...I mean Greenspan  

The Associated Press

By VINNEE TONG

November 28, 2006

Former Federal Reserve Chairman Alan Greenspan said on Tuesday that the worst of the housing adjustment was over, and that he was preparing to publish an analysis of the 'serious dispute' over the true effect of mortgage wealth on consumer spending.

Housing starts and other data indicated the dampening effect that a slow housing market had on gross domestic product was at its maximum in the third quarter, when growth slowed to a weaker-than-expected 1.6 percent annual rate, he said at an investor conference organized by investment bank Friedman, Billings, Ramsey Group Inc.

Greenspan said he expected inventory levels to come down at a 'reasonably rapid pace' and that 'it looks as though sales figures have stabilized.' But he also said there would be actual price declines in housing. 'That will have some impact on consumer expenditures,' he said. 'We haven't seen it yet.'

Wednesday, November 29, 2006 - Year's Lowest Long-Term Rates Mean Opportunity

Overall mortgage activity dipped nationally despite long-term interest rates falling back to their lowest point in 2006, according to the Mortgage Bankers Association's (MBA) Market Composite Index.

The MBA conducts its weekly Index to gauge how many consumers have applied for a loan to purchase or refinance a home as compared to the previous week. For the week ending November 17, overall mortgage activity fell for the first time in three weeks, with mortgage applications down 3.7 percent from the week prior.

However, Bob Walters, Chief Economist of Quicken Loans, says with long-term interest rates reminiscent of historic lows, there is a "mini-finance boom" taking place.

"Last month long-term interest rates returned to their lowest point since January and they have stayed comfortably in that range. This continues to give prospective buyers an excellent opportunity to enter the housing market," says Walters. "Also, with an estimated $560 billion in ARMs set to adjust in the coming year, we're seeing a growing trend of people taking advantage of these still historically low rates by refinancing into a fixed-rate mortgage."

The MBA's Index shows that the number of people applying to purchase a home decreased 2.8 percent week over week and refinance activity dipped 4.3 percent.

Wednesday, November 29, 2006 - 2007 Conforming Loan Limits Announced!

Wednesday, November 8, 2006 - Conforming Loan Limit May DECREASE in 2007

NEW YORK, Nov 1 (Reuters) - Declining home values in 2006 may reduce the size of loans eligible for purchase by Fannie Mae and Freddie Mac, raising consumer borrowing costs in some high-priced regions, analysts said.

The so-called "conforming" loan limit is based on home prices in the Federal Housing Finance Board's Monthly Interest Rate Survey, which have declined 3.1 percent in the 12 months through September. The limit for 2007 will be calculated upon release of October data on Nov. 28.