California Median Home Price, $373,000: Maximum federal government loan limit of $729,500. Does that Make Sense?
One of the flip sides of the major reversal in housing fortune is how quickly the market deteriorated. As many of you know, the new federal government loan limit enacted in March of this year raising loan caps to a new $729,500 ceiling was designed to help jolt the market in higher priced areas including […]
California Mortgage Rates Still High: Examining Actual Mortgage Products in Today’s Market and the Family Budget Impact.
As the housing market continues to slump forward, there are many unintended consequences cropping up all over the country. For one, the intent of the Federal Reserve to inject liquidity into the markets was to bring back confidence in an environment that is cautious about credit. As we are approaching another 1 percent interest rate […]
Money Markets, CDs, 401ks, and Savings Accounts that Lose Against Inflation: A Society that Punishes Savers.
One of the unintended consequences of this housing market is the punishment conservative savers are taking. Last month we had the rather astonishing release of data from the Bureau of Labor and Statistics telling us for the month, that inflation was at 0 percent. As disconnected as this is from reality, there is a reason […]
$231 Billion in Writedowns and Credit Losses: The List of Mortgage Players Grows Larger.
Yesterday UBS AG said it would write down a staggering $19 billion on assets connected to mortgage assets. The figure is staggering yet the market rallied nearly 400 points on this news. Have we reached a turning point where writedowns simply do not matter? This figure was the largest since the writedowns started last year. […]