国产一精品一AV一免费,亚洲成AV人片不卡无码,AV永久天堂一区二区三区,国产激情久久久久影院

立即打開
Think housing is recovering? Think again.

Think housing is recovering? Think again.

Kit R. Roane 2010年05月31日

????Americans purchased homes at a surprising clip in April, but don't let that fool you into thinking the housing market is back.

????Although economists were expecting a month-over-month increase of 5.5%, the National Association of Realtors reported yesterday that sales of previously owned homes rose an unexpected 7.6%. That continued a yearlong rise in housing activity and marked the highest number of sales recorded since November of last year.

????It also follows a drumbeat of similarly rosy economic news signaling the possibility that the United States may be on the economic mend. Government spending has helped spur factory production. A rising stock market and an improving job market have led to greater consumer optimism, which has stimulated spending. Further reports on housing and durable goods orders, due out later this week, will likely give consumers even more reason to feel confident that a recovery is at hand.

????But prospective home buyers, particularly those tempted to think of real estate as an investment again, should tread with caution. One critical obstacle to a housing recovery remains intact: supply. Until the number of empty homes starts to shrink, prices could still fall further.

????Moreover, notes Joseph Foudy, a professor of economics and management at NYU's Stern School of Business, we're coming off of an artificial bump from the first time home buyer credit, which expired last month. He predicts the second half of this year will see sluggish economic growth and that housing prices, at best, will be flat for the next few months, while commercial real estate "is likely to see significant declines."

Government life support

????Indeed, first-time buyers accounted for nearly half of the homes purchased in April. Buying has also been spurred by historically low mortgage rates, which have been kept modest by the Federal Reserve's recently expired $1.25 trillion mortgage-securities purchase program and by lenient lending standards at the Federal Housing Administration (FHA). In all, the US government, through Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500) and the FHA, underpins about 95% of the mortgage market. "This is a market purely on life support, sustained by the federal government," noted FHA's head, David Stevens, at the Mortgage Bankers Association conference yesterday. His agency is tightening lending -- which could take more buyers out of the market.

????Optimists are pinning their hopes on a continuation of low mortgage rates. They note that rates could remain low because of concerns that debt problems in Europe portend a wider slowdown. Low rates help to reinforce demand. But even if these optimists are right, low rates only have so much of an effect. Despite the average 30-year rates now hovering around 4.8%, the Mortgage Bankers Association noted last week that the number of people seeking mortgage purchase applications had dropped more than 27%, reaching a level last seen in May 1997.

????More importantly, what underpins those low rates also matters. Housing prices are unlikely to rise if unemployment does, or if incomes stay stagnant. And concerns in Europe could end up destabilizing housing prices further, which would dent consumer confidence -- not a good cycle to begin a recovery.

????Also, an unintended consequence of the European debt crisis is that Libor, the benchmark borrowing rate that banks charge each other, has been on the rise, with Citigroup saying recently that it could end up a full percentage point higher within the next few months.

????That would be bad news for the real estate market in a number of ways. Libor sets the rate for about $370 trillion in debt-related financing worldwide, including a host of consumer credit cards, home equity lines, student and small business loans, and adjustable-rate mortgages, as well as derivatives, such as credit swaps. A rise in Libor would mean higher rates on adjustable-rate mortgages. More importantly, it could raise the debt load of already-strapped consumers, reducing spending and further increasing mortgage delinquencies.

掃碼打開財富Plus App
饶河县| 大连市| 古丈县| 铁岭市| 渑池县| 扶余县| 桓台县| 阳谷县| 阿城市| 汉中市| 肥乡县| 皮山县| 平罗县| 龙州县| 太和县| 闻喜县| 萨迦县| 丽水市| 交口县| 大石桥市| 汉源县| 盐边县| 蓬莱市| 宜阳县| 旬阳县| 麦盖提县| 弋阳县| 江口县| 美姑县| 拜城县| 泾源县| 年辖:市辖区| 吉水县| 保定市| 威信县| 华池县| 清镇市| 广水市| 东光县| 屏南县| 万源市|