Even Hollywood knows better than to produce a sequel when the original movie is truly, horrifically bad. That’s why, thankfully, we haven’t seen sequels to such all-time cinematic disasters as Howard the Duck, Gigli, The Last Airbender, Jack and Jill, Glitter, or Battlefield Earth. Which brings us, in an admittedly roundabout way, to the question of whether we’re about to see a sequel of sorts in the mortgage industry: The Return of the Subprime Loan.
[Expert commentary] Much of the commentary surrounding the Federal Reserve’s decision Wednesday to raise the Fed Funds rate by 25 basis points has been about how this is likely to have a negative effect on home affordability. What if this isn’t true? In fact, here are three positive side effects to rising interest rates.
Some industry observers have been predicting the demise of this market since Blackstone, the largest purchaser of single-family rental homes, announced plans to slow down its acquisition volume earlier this year. But the data paints a very different picture.
The double whammy over the past few days of flat existing home sales and a disastrous drop in new home sales appears to have dimmed many analysts’ views of the housing market recovery. So is the housing recovery over?
The slowdown is partly due to the fact that there are fewer distressed assets available for purchase as foreclosure rates slow down. But it’s also partly due to the fact that there’s just not much inventory of any kind on the market.
What can we make of the seeming incongruity of indicators in the housing market as 2013 comes to a close? Mortgage applications recently hit a 13-year low. Existing home sales fell for the third consecutive month – and for the first time on a year-over-year basis in quite some time.
"If the CFPB intends to pursue discrimination caused by policies that have a discriminatory effect, it may want to start by looking a little more closely at the policies of its own," says Rick Sharga, executive vice president with Auction.com