Economy Continues to Slow, Recession Unlikely for 2008
The fallout from the housing slump and the so-called “credit crunch” will prove less severe than many fear, said Wells Fargo’s senior economists during the company’s annual economic forecast teleconference earlier this week.
“Healthy export growth and continued business spending will help the economy steer clear of an outright recession, but I believe that won’t be significant enough to prevent an economic slowdown in 2008,” said Dr. Scott Anderson, senior economist for Wells Fargo & Company. “Rapidly cooling earnings growth and rising economic uncertainty will make U.S. companies reluctant to undertake ambitious expansion plans in 2008.”
Home Buyers Wait For Better Deals
$5,000 toward closing costs!
Zero Down Payment!
Zero Payments for 6 Months!
$10,000 off Select Homes!
These are some of the current headlines for New Home Builder ads. Still many prospective buyers don’t see the bargains. Is it ineffective marketing? Or maybe afraid of the current market conditions? J.W. Elphinstone Associated Press writes “Home Buyers Wait For Better Deals” for the Detroit News.
Also read “New Home Sales Hit 12-Year Low” by Chris Isidore at CNNMoney.com
Alt-A Delinquencies Rising According to Standard & Poor’s
Delinquencies of Alternative-A mortgages, often offered to those who cannot fully document income or assets, are rising sharply and “early data suggests that the 2007 deterioration may be the worst ever for the Alt-A market,” Standard & Poor’s said on Thursday.
The 90-plus-day delinquency rate for 2006 vintage Alt-As was 4.71 percent after 18 months’ seasoning, versus 1.97 percent for the 2005 vintage and 1.07 percent for the 2004 vintage, S&P said, citing data from LoanPerformance, a division of First American CoreLogic Inc.
Severe delinquencies for Alt-A mortgages show no signs of abating soon, S&P said.
Home Prices Decline But Not In All Markets
| 12 Month Change By Top 30 CBSAs (Core Based Statistical Areas) | As of October 2007 |
| Honolulu, HI | 17.91% |
| Salt Lake City, UT | 11.63% |
| Austin-Round Rock, TX | 8.62% |
| San Antonio, TX | 7.89% |
| Raleigh-Cary, NC | 4.56% |
Fannie Mae Plan To Raise Housing Finance Costs
In response to Fannie Mae’s announced plan to impose an “Adverse Market Delivery Charge” for all mortgages purchased after March 1, 2008, National Association of Home Builders (NAHB) Executive Vice President and CEO Jerry Howard today issued the following statement:“Fannie Mae’s new fee is a broad tax on homeownership that ultimately will be passed along to consumers. It’s certain to be more difficult for the housing market to regain its footing when steps are being taken to drive up mortgage costs. This is the exact opposite of what needs to be done and underscores the importance of Congress quickly enacting legislation that would strengthen regulatory oversight of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac while also preserving their vital housing mission.
Texas Homeowners Insurance Premiums still the highest in U.S.
Insurance Costs
Average premiums for the most common homeowners insurance policy, according to data from 2005:
| Top 5 States | Premium |
| Texas | $1,372 |
| Louisiana | $1,144 |
| Florida | $1,083 |
| Oklahoma | $996 |
| Mississippi | $939 |
| National Average | $764 |
Read the entire article at The Dallas Morning News.