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Alrighty, so now the Administration says regulating FNMA and FedMAC (one small % of the pie) will help the RE market??. Not hearing much about new laws and reigning in Wall Street.
here are economic facts
The real estate debacle was the cause of the Great Recession and it is also now being credited for bringing it to an end. But the lynchpin behind this economic recovery has been the government's ability to increase home prices through the process of artificially creating record-low interest rates and by having the Fed purchase impaired loans from banks' balance sheets. However, this ersatz and temporary recovery is now running into trouble. The affordability of homes once caused by plunging prices and record low borrowing costs caused investors to flock into the housing sector. According to the Case-Shiller Home Price Index, real estate prices dropped 35% from peak to trough. Speculators scooped up foreclosed properties that were being dumped on the market without much regard to price. Private Equity firms and hedge funds purchased properties mostly with cash; and whatever extra money they desired to borrow came nearly for free.
In today’s speech, the President laid out his ideas to help more responsible homeowners refinance, to cut red tape, to increase home values by fixing our broken immigration system, to help the hardest hit communities rebuild, and to ensure those who rent have decent and affordable options. The President also made it clear that going back to the same bubble-and-bust housing system that caused the financial crisis is not acceptable. We need a rock-solid foundation for financing homeownership with a bigger role for the private sector, where taxpayers aren’t on the hook for the irresponsible behavior or bad decisions of financial institutions and we finally put an end to an era where Fannie Mae and Freddie Mac could expect a bailout for risky behavior in pursuit of profits. These bipartisan solutions will help build on the progress we’ve made over the last four years, and together we can make owning a home a symbol of responsibility and a source of security for generations to come.
(lip service from the Administration here, it seems).
A few speculators and hedge fund managers buying housing in Phoenix means ZILCH.
Alrighty, so now the Administration says regulating FNMA and FedMAC (one small % of the pie) will help the RE market?
Define "help"
Also define "RE Market"
If prices rise, does that "help the market?" Who does the market consist of? Buyers? Prospective sellers? Agents? Builders? Mortgage brokers? These groups are all part of the market, and all have different priorities.
Quote:
Originally Posted by dreamofmonterey
A few speculators and hedge fund managers buying housing in Phoenix means ZILCH.
I agree, in the sense that we should distinguish between sales driven by new household formation, and sales driven by investors.
The great leader said he wants to get rid of Fannie and Freddie yet the DOJ is still suing folks to force em to make bad loans, the government stills says they will back those loans so basically Fannie/Freddie will just get a name change and it will be business as usual. Tapayers will still be on the hook like last time around. They are trying to pull a fast one and are getting away with it like usual. Hell they got away with it once why not do it again. Not one senior exec of any big bank has been prosecuted.
$80 billion a month. But that doesn't cut it anymore.
Foreign investment isn't there and long term rates are going up. short term rates will soon follow.
With our debt a rise in rates will have direct impact on our ability to pay increased interest and not hit the debt ceiling.
Zerohedge had an article on this back in March 2013.
Seems they were right.
$80 billion a month. But that doesn't cut it anymore.
Foreign investment isn't there and long term rates are going up. short term rates will soon follow.
With our debt a rise in rates will have direct impact on our ability to pay increased interest and not hit the debt ceiling.
Zerohedge had an article on this back in March 2013.
Seems they were right.
It's funny how 1% rise in interest rates actually shocks people.
We just bought our new home and I think 4.5% is still ultra low.
Alrighty, so now the Administration says regulating FNMA and FedMAC (one small % of the pie) will help the RE market??. Not hearing much about new laws and reigning in Wall Street.
here are economic facts
The real estate debacle was the cause of the Great Recession and it is also now being credited for bringing it to an end. But the lynchpin behind this economic recovery has been the government's ability to increase home prices through the process of artificially creating record-low interest rates and by having the Fed purchase impaired loans from banks' balance sheets. However, this ersatz and temporary recovery is now running into trouble. The affordability of homes once caused by plunging prices and record low borrowing costs caused investors to flock into the housing sector. According to the Case-Shiller Home Price Index, real estate prices dropped 35% from peak to trough. Speculators scooped up foreclosed properties that were being dumped on the market without much regard to price. Private Equity firms and hedge funds purchased properties mostly with cash; and whatever extra money they desired to borrow came nearly for free.
In today’s speech, the President laid out his ideas to help more responsible homeowners refinance, to cut red tape, to increase home values by fixing our broken immigration system, to help the hardest hit communities rebuild, and to ensure those who rent have decent and affordable options. The President also made it clear that going back to the same bubble-and-bust housing system that caused the financial crisis is not acceptable. We need a rock-solid foundation for financing homeownership with a bigger role for the private sector, where taxpayers aren’t on the hook for the irresponsible behavior or bad decisions of financial institutions and we finally put an end to an era where Fannie Mae and Freddie Mac could expect a bailout for risky behavior in pursuit of profits. These bipartisan solutions will help build on the progress we’ve made over the last four years, and together we can make owning a home a symbol of responsibility and a source of security for generations to come.
(lip service from the Administration here, it seems).
A few speculators and hedge fund managers buying housing in Phoenix means ZILCH.
This looks largely copied from another source.
Can you provide the source, or is it hidden because people would realize your only source for this is a raving lunatic?
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