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Archive for August, 2013

Why “Tight” Mortgage Lending Is A Fantasy

Why “Tight” Mortgage Lending Is A Fantasy

Lenders are getting hammered with claims that they refuse to make loans, thus artificially creating a “tight” mortgage market. This is a great urban myth, somewhat like large alligators in the sewers of New York. But it doesn’t make sense and — oh yes — it plainly is not true. Let’s start with logic. Why […]

Posted in: News
Why The Fed Doesn’t Want To Raise Mortgage Rates

Why The Fed Doesn’t Want To Raise Mortgage Rates

If you’re wondering where mortgage rates are headed you’re not alone. It used to be that mortgage rates reflected supply and demand but that’s no longer the case. The Federal Reserve is now spending $85 billion per month to purchase mortgage-backed securities ($45 billion) and U.S. Treasuries ($40 billion), thus holding down interest rates for […]

Posted in: News
The Coming Real Estate Switcheroo

The Coming Real Estate Switcheroo

There’s little doubt that home prices are rising nationwide, but the government says we are still 11.2 percent below the values seen in April 2007. Rising home prices also mean that many if-not-most owners now have more equity and some who were underwater can now sell without a short sale. The Federal Reserve says home […]

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Are Real Estate Mortgages Easier To Get?

Are Real Estate Mortgages Easier To Get?

The latest loan officer survey from the Federal Reserve says financing is easier to get. It also says mortgages are harder to get. I say the subjective feelings and fanciful intuitions recorded by the Fed are wrong. Let me explain why: “Domestic banks, on balance, reported having eased their lending standards and having experienced stronger […]

Posted in: News