Mortgage Industry and Economic News:
U.S. Rebound Seen Slowing Most Since 2002 on Europe Debt Woes; Bloomberg
The U.S. economy may be headed for a slowdown reminiscent of the one it suffered in 2002 as the sovereign-debt crisis in Europe, fading government support and persistently high joblessness weigh on expansion in the second half of the year. Economists have begun to lower their forecasts for the first time since the recovery began in the middle of 2009. Allen Sinai, chief global economist at Decision Economics, and Michael Moran, chief economist at Daiwa Capital Markets America in New York, said they now see annualized growth of 2.25 percent to 2.5 percent in July-December, down from around 3 percent previously.
A real estate recovery in 2013; Inman News
At least the real estate industry has 2013 to look forward to. Continuing foreclosures and an “overhang” in housing inventory will likely prolong the housing slump for several more years, said economists who spoke Friday during an annual meeting of the National Association of Real Estate Editors. While home sales likely reached the bottom of the current cycle last year, home values in many markets are still in decline, said Stan Humphries, chief economist for online real estate search and information company Zillow.
Jury still out on home-buyer tax credit, says home builder CEO; USA Today
The CEO of Hovnanian Enterprises (HOV) said Thursday that a final push by home buyers in April to qualify for a government tax credit didn’t give the home builder’s sales as big a boost as he’d hoped. The company’s new-home contracts tumbled 17% in the February-April quarter vs. a year ago. Excluding communities that are no longer open, new contracts were flat, however.
Pending Home Sales Surge Continues; Ris Media
Pending home sales have risen for three consecutive months, reflecting the broad impact of the home buyer tax credit and favorable housing affordability conditions, according to the National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator, rose 6.0% to 110.9 based on contracts signed in April, from an upwardly revised 104.6 in March, and is 22.4% higher than April 2009 when it was 90.6. That follows gains of 7.1% in March and 8.3% in February.
Steve Florio
Mortgage Advisor
ERA Mortgage
Southern Utah, Mesquite NV
435-640-0364 / cell
435-635-1504 / home office
steve.florio@mortgagefamily.com
