Opinions Uncensored

Fed's Flow of Funds: Household Net Worth increased in Q2

The Federal Reserve released the Q2 2017 Flow of Funds report today: Flow of Funds.According to the Fed, household net worth increased in Q2 2017 compared to Q1 2017:The net worth of households and nonprofits rose to $96.2 trillion during the second quarter of 2017. The value of directly and...

Black Knight: Mortgage Delinquencies increase in Hurricane Affected Areas

From Black Knight: Black Knight’s First Look at August 2017 Mortgage Data: Hurricane Harvey Impact Already Being Felt in the Mortgage Market as Delinquencies Jump 16 Percent in Affected Areas. Nationally, delinquencies remained relatively flat from July, while delinquencies in Hurricane Harvey- impacted areas rose by 16 percent month over month. Despite most payments being due August 1, and the storm making landfall near the end of the month, its effect on mortgage delinquencies is already being felt. Over 6,700 new 30-day delinquencies can be attributed to Harvey, while an additional 1,000 borrowers who were already 30-days past due missed an additional mortgage payment in August as a result of the storm...

CoreLogic: "2.8 million Homes still in negative equity" at end of Q2 2017

From CoreLogic: CoreLogic Reports 2.8 Million Residential Properties with a Mortgage Still in Negative Equity

CoreLogic® ... today released its Q2 2017 home equity analysis which shows U.S. homeowners with mortgages (roughly 63 percent of all homeowners) have seen their equity increase by a total of 10.6 percent year over year, representing a gain of $766 billion since Q2 2016.

Additionally, homeowners gained an average of $12,987 in equity between Q2 2016 and Q2 2017. Western states led the equity increase with Washington homeowners gaining an average of approximately $40,000 in home equity and California homeowners gaining an average of approximately $30,000...

Weekly Initial Unemployment Claims decrease to 259,000

The DOL reported:In the week ending September 16, the advance figure for seasonally adjusted initial claims was 259,000, a decrease of 23,000 from the previous week's revised level. The previous week's level was revised down by 2,000 from 284,000 to 282,000. The 4-week moving average was...

Thursday: Unemployment Claims, Flow of Funds

From Matthew Graham at Mortgage News Daily: Mortgage Rates Highest in More Than a Month After Fed

Mortgage rates rose today following the announcement and--more importantly--the Fed's updated economic projections. ... Investors weren't sure how the past few months of economic data and events would affect the rate hike outlook. As it turned out, the Fed is more optimistic than investors anticipated. That means they're more willing stick with the previous rate hike outlook for 2017 and 2018, and those rate hike expectations have a direct bearing on today's interest rates.

Conventional 30yr fixed rates didn't spike in any brutal sort of...

FOMC Projections and Press Conference Link

Statement here. "In October, the Committee will initiate the balance sheet normalization program".Yellen press conference video here.On the projections, projections for GDP in 2017 were increased.GDP projections of Federal Reserve Governors and Reserve Bank presidentsChange inReal...

FOMC Statement: "In October, the Committee will initiate the balance sheet normalization program"

FOMC Statement:

Information received since the Federal Open Market Committee met in July indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year. Job gains have remained solid in recent months, and the unemployment rate has stayed low. Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters. On a 12-month basis, overall inflation and the measure excluding food and energy prices have declined this year and are running...

A Few Comments on August Existing Home Sales

Earlier: NAR: "Existing-Home Sales Subside 1.7 Percent in August". First, as usual, housing economist Tom Lawler's estimate was much closer to the NAR report than the consensus. So the decline in sales in August was no surprise for CR readers. Inventory is still very low and falling year-over-year (down 6.5% year-over-year in August). Inventory has declined year-over-year for 27 consecutive months. I started the year expecting inventory would be increasing year-over-year by the end of 2017. That now seems unlikely (but not impossible). Inventory is a key metric...