Sunday, January 31, 2016

Global Bond Yields Fall to One-Year Low as Japan Renews Records

Global Bond Yields Fall to One-Year Low as Japan Renews Records Bloomberg Global bond yields fell to levels not seen in a year while Japan's extended their push to record lows following Haruhiko Kuroda's decision to cut interest rates. The yield on a Bank of America Corp. index of sovereign bonds dropped to 1.39 percent, the ... and more »...(read more)
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Fannie Mae Releases December 2015 Monthly Summary

The monthly summary report contains information about Fannie Mae s monthly and year-to-date activities....(read more)
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Brooklyn property sells for $3K per sq. foot

Based on a price of nearly $6 million and a square foot size of 2000, 36 Strong Place in Brooklyn just sold for $2900 per square foot....(read more)
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In Bay Area, Millennials Value Homeownership More than Generation X

More than four out of five Bay Area millennials--age 18 to 34--view homeownership as an "integral part" of achieving the American Dream....(read more)
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Friday, January 29, 2016

Q4 GDP: Investment

The graph below shows the contribution to GDP from residential investment, equipment and software, and nonresidential structures (3 quarter trailing average). This is important to follow because residential investment tends to lead the economy, equipment and software is generally coincident, and nonresidential structure investment trails the economy. In the graph, red is residential, green is equipment and software, and blue is investment in non-residential structures. So the usual pattern - both into and out of recessions is - red, green, blue. The dashed gray line is the contribution from......(read more)
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Fed Hike This Year Seen as Practically a Coin Flip on BOJ Move

Bloomberg Fed Hike This Year Seen as Practically a Coin Flip on BOJ Move Bloomberg In the bond market's view, the chance of a Federal Reserve interest-rate increase this year is practically a toss-up after the Bank of Japan's surprise policy move. Yields on sovereign debt fell worldwide after BOJ Governor Haruhiko Kuroda introduced ... and more »...(read more)
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$5.5T in gov bonds at negative yields

Japan's surprise decision to cut interest rates has pushed negative yielding government bonds to a new record. FT reports....(read more)
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No Fed rate hike in 2016: Traders

Traders have taken a 2016 interest rate hike off the table, anticipating that the earliest move would be February 2017....(read more)
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Chicago PMI much better than expected

The Chicago Purchasing Managers Index came in at 55.6 for December, the highest reading since last January....(read more)
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Freddie Mac January 2016 Insight & Outlook

Freddie Mac January 2016 Insight & Outlook...(read more)
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U.S. economic growth slows to a 0.7 percent rate in fourth quarter

WASHINGTON, (Reuters) - U.S. economic growth braked sharply in the fourth quarter as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports....(read more)
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Thursday, January 28, 2016

Japan adopts negative interest rate in surprise move

In a surprise move, the Bank of Japan has introduced a negative interest rate. The benchmark rate of -0.1% means that the central bank will charge commercial banks 0.1% on some of their deposits. It hopes this will encourage banks to lend, and counter the ongoing economic slump in the world's third-largest economy....(read more)
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U.S. economy likely hit a speed bump in fourth quarter

WASHINGTON (Reuters) - U.S. economic growth likely braked sharply in the fourth quarter as businesses doubled down on efforts to reduce an inventory glut and unseasonably mild weather cut into consumer spending on utilities and apparel....(read more)
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New Home Sales: Sources of Financing

NAHB analysis of the most recent Census estimates concerning sources of financing for new home sales reveals an ongoing long-run trend toward conventional mortgages. According to data from the Census Bureau's Quarterly Sales by Price and Financing and NAHB calculations, new home sales due to FHA-backed loans were effectively unchanged at a quarterly count of 18,000 and a market share of 16% for the fourth... Read More ›...(read more)
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CoreLogic Confirms 2015 Financial Guidance and Provides 2016 Outlook

Successful Execution of Strategic Transformation Plan Drives Strong Operating Performance Highlighted by Revenue Growth, Cost Efficiency Focus and Record Cash Generation Fourth quarter and full-year results expected to modestly exceed the high end of previously issued 2015 revenue, adjusted EBITDA and adjusted EPS guidance ranges.  2015 expected results driven principally by higher U.S. origination volumes and the benefits of operating leverage and cost management programs which more than offset unfavorable FX and increased investment levels in technology, compliance and the cost......(read more)
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Freddie Mac: Mortgage Serious Delinquency rate declined in December, Lowest since September 2008

Freddie Mac reported that the Single-Family serious delinquency rate declined in December to 1.32%, down from 1.36% in November. Freddie's rate is down from 1.88% in December 2014, and the rate in December was the lowest level since September 2008. Freddie's serious delinquency rate peaked in February 2010 at 4.20%. These are mortgage loans that are "three monthly payments or more past due or in foreclosure".  Note: Fannie Mae is expected to report early next week. Click on graph for larger image Although the rate is declining, the "normal" serious delinquency rate is under......(read more)
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HVS: Q4 2015 Homeownership and Vacancy Rates

The Census Bureau released the Residential Vacancies and Homeownership report for Q4 2015. This report is frequently mentioned by analysts and the media to track household formation, the homeownership rate, and the homeowner and rental vacancy rates.  However, there are serious questions about the accuracy of this survey. This survey might show the trend, but I wouldn't rely on the absolute numbers.  The Census Bureau is investigating the differences between the HVS, ACS and decennial Census, and analysts probably shouldn't use the HVS to estimate the excess vacant......(read more)
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The Hot New Neighborhood Trend: Snow-Shaming

Snowstorm Jonas may be long gone, but his legacy remains-in the form of huge piles of snow. And it's got lots of neighborhoods hopping on a hot new trend: snow-shaming. The post The Hot New Neighborhood Trend: Snow-Shaming appeared first on Real Estate News and Advice - realtor.com ....(read more)
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Breaking Down Commercial Real Estate

Bloomberg Breaking Down Commercial Real Estate Bloomberg Marcus & Millichap Senior Vice President Hessam Nadji discusses the state of U.S. commercial real estate. He speaks on "Bloomberg Markets." (Source: Bloomberg). Most Recent Videos. Breaking Down Commercial Real Estate · What's Behind the Luxury ......(read more)
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Is Anyone Getting Tech Fatigue?

For a conference that partially serves as a launching pad for new innovations in the real estate industry, there’s a sense at Inman Connect this year that someone needs to push the pause button on the rapid technological shifts taking over the industry. Don’t get me wrong, there’s plenty of new tools being presented here […]...(read more)
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U.S. Homeownership Rises as Jobs Bring Back First-Time Buyers

U.S. Homeownership Rises as Jobs Bring Back First-Time Buyers Bloomberg The homeownership rate in the U.S. rose for a second straight quarter as job growth and loosening credit put an end to almost two years of steady declines. The share of Americans who own their homes was 63.8 percent in the fourth quarter, up from 63.7 ......(read more)
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Mortgage Rates Fall for Fourth Straight Week

Mortgage Rates Fall for Fourth Straight Week...(read more)
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Pending home sales rise just 0.1% in December

A lack of homes for sale is keeping potential buyers at bay. Signed contracts to buy existing homes remained essentially flat in December....(read more)
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US durable goods orders plunge in December

New orders for long-lasting goods tumbled as lower oil prices and softer global demand put more pressure on factories....(read more)
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El-Erian: Fed Is Hostage to the Rest of the World

Bloomberg El-Erian: Fed Is Hostage to the Rest of the World Bloomberg Bloomberg View Columnist Mohamed El-Erian discusses Fed policy. He speaks on "Bloomberg ‹GO›." His opinions are his own. (Source: Bloomberg). Most Recent Videos. Mohamed El-Erian Answers Your Twitter Questions · El-Erian: Yellen Didn't Blow It in ... and more »...(read more)
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Some $29 Trillion Later, the Corporate Debt Boom Looks Exhausted

Bloomberg Some $29 Trillion Later, the Corporate Debt Boom Looks Exhausted Bloomberg There's been endless speculation in recent weeks about whether the U.S., and the whole world for that matter, are about to sink into recession. Underpinning much of the angst is an unprecedented $29 trillion corporate bond binge that has left many ......(read more)
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Do Americans Believe Hard Work Still Matters?

Keith Bedford / Reuters For the past several decades, it seems there’s been a general consensus on how to get ahead in America: Get a college education, find a reliable job, and buy your own home. But do Americans still believe in that path, and if they do, is it attainable? The most recent Allstate/ National Journal Heartland Monitor poll asked respondents about the American dream, what it takes to achieve their goals, and whether or not they felt a significant amount of control over their ability to be successful. Overwhelmingly, the results show that today, the idea of the......(read more)
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It's Official: 2015 Was a Banner Year in Housing, But What's Next?

The latest home sales numbers from the National Association of Realtors® prove that 2015 produced important growth and milestones in housing's recovery. The post It's Official: 2015 Was a Banner Year in Housing, But What’s Next? appeared first on Real Estate News and Advice - realtor.com ....(read more)
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Hamptons Home Prices Set Record as Buyers Grab $5 Million Homes

Bloomberg Hamptons Home Prices Set Record as Buyers Grab $5 Million Homes Bloomberg Home prices in New York's Hamptons reached an all-time high in the fourth quarter, as buyers in the eastern Long Island resort towns made a record number of deals for at least $5 million. The average price for all Hamptons purchases that closed in the ......(read more)
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HSBC curbs mortgage offering to Chinese citizens in U.S.

NEW YORK/ VANCOUVER (Reuters) - Europe's biggest lender HSBC will no longer provide mortgages to some Chinese nationals who buy real estate in the United States, a policy change that comes as Beijing is battling to stem a swelling crowd of citizens trying to get money out of China....(read more)
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News Release - Fannie Mae Prices $945.7 Million Multifamily ...

Fannie Mae Prices $945.7 Million Multifamily DUS REMIC (FNA 2016-M1) Under Its GeMS Program....(read more)
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Bond investors look to post-Fed auction

U.S. government debt prices were lower on Thursday as investors looked to the auction of $29 billion in seven-year notes....(read more)
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Draghi's Shield Under Attack as Politics Exposes European Risks

Bloomberg Draghi's Shield Under Attack as Politics Exposes European Risks Bloomberg Mario Draghi may be the euro region's great protector, but investors can still get hurt. From Portuguese government bonds to Italian bank stocks, the most stressed parts of the euro region are providing a reminder that the European Central Bank ... and more »...(read more)
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Wednesday, January 27, 2016

FOMC Statement: No Change to Policy, Uncertain about rise in inflation

FOMC Statement: Information received since the Federal Open Market Committee met in December suggests that labor market conditions improved further even as economic growth slowed late last year . Household spending and business fixed investment have been increasing at moderate rates in recent months, and the housing sector has improved further; however, net exports have been soft and inventory investment slowed. A range of recent labor market indicators, including strong job gains, points to some additional decline in underutilization of labor resources. Inflation has continued to run below......(read more)
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Treasury yields plummet after dovish Fed statement

Treasury yields tumbled Wednesday afternoon, after the Federal Reserve took a more dovish tone in its January policy statement than investors had expected. The U.S. central bank said that economic growth slowed since its last meeting in December and that inflation is unlikely to rise rapidly toward its 2% target. The news fueled demand for Treasury bonds, as it was interpreted as an indication that the central bank won't be quick to raise interest rates again. The yield on the 10-year Treasury note fell nearly four basis points after the statement, to 2.010%. The yield on the 2-year Treasury......(read more)
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Treasury Traders Becoming `24 Hour Party People,' JPMorgan Says

Treasury Traders Becoming `24 Hour Party People,' JPMorgan Says Bloomberg If your idea of a party is staring at a computer screen in the middle of the night in New York, JPMorgan Chase & Co. analysts have a market for you. The $13.2 trillion Treasuries market is getting pushed around more by global developments, the analysts ......(read more)
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Caterpillar: Retail sales still falling sharply

Caterpillar saw retail sales of machinery worldwide fall 16 percent for the three-month period ended in December, the company said on Wednesday....(read more)
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New home sales hit 544K units in Dec, versus 500K-unit rate estimate

This is a breaking news story. Please check back for updates.. Analysts expected 500,000 new homes sold in December, up from 490,000 the previous month, according to consensus estimates from Thomson Reuters....(read more)
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How Fed should respond to market diss: BlackRock

The Fed needs to "thread the needle" as the market tells policymakers to slowdown, BlackRock's Jeff Rosenberg says....(read more)
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Bond Bulls Bank on Fed Mention of Market Chaos as Drag on Growth

Bloomberg Bond Bulls Bank on Fed Mention of Market Chaos as Drag on Growth Bloomberg Bond bulls are looking to the Federal Reserve's decision Wednesday for vindication as Treasuries head for their best month in a year. The Fed is set to release its first policy statement since it raised interest rates from near zero last month. After ... and more »...(read more)
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Tuesday, January 26, 2016

Fed seen keeping interest rates steady amid market volatility

WASHINGTON (Reuters) - The Federal Reserve is expected to leave interest rates unchanged on Wednesday and acknowledge that turmoil in financial markets threatens its upbeat view of the U.S. economy, leaving the chances of a March hike diminished but alive....(read more)
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CBO: Wages will outpace home prices in 2016

The Congressional Budget Office's Budget and Economic Outlook report for 2016 to 2026 predicts that wage growth will outpace growth in home prices in 2016, reversing the trend from 2015....(read more)
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What to Know Before Buying a Home on a Cliff

Frightening video footage shows that the cliffs in Pacifica, CA, have collapsed, forcing residents to evacuate their homes. The post What to Know Before Buying a Home on a Cliff appeared first on Real Estate News and Advice - realtor.com ....(read more)
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Freddie Mac Issues Monthly Volume Summary for December 2015

Freddie Mac Issues Monthly Volume Summary for December 2015...(read more)
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JPMorgan Pays $995 Million to Settle Ambac Lawsuits

JPMorgan Pays $995 Million to Settle Ambac Lawsuits Bloomberg JPMorgan Chase & Co. agreed to pay almost $1 billion to resolve claims by Ambac Financial Group Inc. that it was duped into insuring mortgage bonds backed by shoddy loans, clearing the way for approval of a larger settlement over similar allegations. and more »...(read more)
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Real Prices and Price-to-Rent Ratio in November

Here is the earlier post on Case-Shiller: Case-Shiller: National House Price Index increased 5.3% year-over-year in November The year-over-year increase in prices is mostly moving sideways now around 5%. In November 2015, the index was up 5.3% YoY. In the earlier post , I graphed nominal house prices, but it is also important to look at prices in real terms (inflation adjusted).  Case-Shiller, CoreLogic and others report nominal house prices.  As an example, if a house price was $200,000 in January 2000, the price would be close to $274,000 today adjusted for inflation......(read more)
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Is the Luxury Real Estate Boom Going Bust?

Bloomberg Is the Luxury Real Estate Boom Going Bust? Bloomberg Compass President Leonard Steinberg and Oppenheimer Funds CIO Krishna Memani discuss the luxury real estate market. They speak on "Bloomberg ‹GO›." (Source: Bloomberg). Most Recent Videos. Is the Luxury Real Estate Boom Going Bust?...(read more)
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BLS: Unemployment Rate decreased in 25 States in December

From the BLS: Regional and State Employment and Unemployment Summary Regional and state unemployment rates were little changed in December. Twenty-five states had unemployment rate decreases from November, 14 states had increases, and 11 states and the District of Columbia had no change, the U.S. Bureau of Labor Statistics reported today. ... North Dakota had the lowest jobless rate in December, 2.7 percent, followed by Nebraska and South Dakota, 2.9 percent each. New Mexico had the highest rate, 6.7 percent. Click on graph for larger image. This graph shows the current unemployment rate for......(read more)
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Consumer confidence rises in January

The key measure of consumer's attitudes was better than expected this month....(read more)
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Home prices up in November at fastest rate since July 2014

NEW YORK (Reuters) - Annualized U.S. single-family home prices rose more than expected in November and at the fastest pace in 16 months, a closely watched survey showed on Tuesday....(read more)
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