Archive for the ‘Housing’ Category

Ignore The Monthly New Home Sales Reports

Per the Commerce Department: Sales of new single-family houses in September 2014 were at a seasonally adjusted annual rate of 467,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.2 percent (±15.7%)* above the revised August rate of 466,000 and is 17.0 [...]

Share

Surprise! Mortgage Standards Being Lowered

As you no doubt know, various government agencies have moved the ball pretty far down the field with respect to loosening down-payment requirements for loans from Fannie and Freddie. The return of the 3% down mortgage seems to be pretty much assured. Arnold Kling offered this with respect to a Calculated Risk post on the [...]

Share

Fannie/Freddy Reform Nowhere In Sight

Since 2008, the mostly agreed upon date for the onset of the Great Recession, lots of responses to the crisis have occurred. Stimulus came and went, Dodd Frank passed, the Volker rule was enacted yet not to date implemented, the CFPB was let lose on the land, the Fed embarked on a continuing mission to [...]

Share

The New Frannie

Arnold Kling suggests a sensible way of recreating the government supported mortgage industry. In my presentation to the panel, I will say that a government mortgage guarantee is like the ethanol mandate. Whatever the alleged public policy justification, it is really a special-interest handout. See Your Mortgage, Their Rent. Of course, just as with the ethanol [...]

Share

The Mortgage Interest Deduction Scam

Arnold Kling adds some perspective to the debate over the mortgage interest deduction. 1) If I buy a property and rent it out, then my income is equal to the rent that I get, minus expenses, including interest payments on a mortgage. Thus, I get to deduct mortgage interest. (2) If homeowners could not deduct [...]

Share

Does Option Theory Validate The Richmond Eminent Domain Plan

Matt Levine has an interesting take on the Richmond, California eminent domain spat. He uses the conventional model which is floating around of a $300,000 mortgage on a house worth $200,000 and asks the question, “What’s the mortgage worth.” If it’s $300,000 as the mortgage owners contend then assuming they can take it via eminent [...]

Share

Real Estate Roundup

A no doubt incomplete roundup of housing news and some thoughts thereon. New Home Sales The Census Bureau issued their monthly report on new home sales. Sales of new single-family houses in June 2013 were at a seasonally adjusted annual rate of 497,000, according to estimates released jointly today by the U.S. Census Bureau and [...]

Share