Tag Archive for ‘finance’

New Home Sales: Growing Conventional Financing Share

NAHB analysis of the most recent Census numbers regarding the sources of financing for new single-family home sales suggests small changes from the prior quarter, although the long-run trends point to a growing market share for conventional financing sources. The onset of the housing crisis in 2007 led to a decline in the share of new home sales due to conventional… Read More ›

New Research Highlights Finance Constraints on Housing Demand

An interesting new paper published by economists at the Federal Reserve Bank of New York demonstrates the important role downpayment and wealth constraints play in shaping housing demand, particularly for lower-income homebuyers. Using survey data, the authors (Andreas Fuster and Basit Zafar) employ a strategy to measure housing demand impacts that contrasts with the often used user cost model of housing in… Read More ›

Consumer Credit Expands On Auto, Student Loans

Data released by the Federal Reserve Board indicates that consumer credit continued to expand in July, albeit at a slower pace than in the recent past. According to the Federal Reserve’s G.19 survey, consumer credit outstanding grew at a seasonally adjusted annual rate of 4.4% and now stands at $2.9 trillion. However, the growth in consumer credit outstanding recorded in… Read More ›

Housing Remains a Key Component of Household Wealth

Recently released research by NAHB reaffirms that homeownership is an important component of household wealth accumulation. Part of the reason why the primary residence is an important source of household wealth is because of its size on the household balance sheet. As Figure 1 illustrates, the primary residence represents the largest asset category on the balance sheets of households. At… Read More ›

Consumer Credit Expands, but HELOCs Continue Their Decline

Household debt outstanding rose for the first time in two years. According to data released by the Federal Reserve Bank of New York, household debt grew by $31.0 billion in the fourth quarter of 2012. The quarter-on-quarter not seasonally adjusted growth in household debt reflected an expansion in outstanding mortgages, auto loans, credit cards, and student loans. In the fourth… Read More ›

Fed Beige Book: Economic Activity Continues to Expand

Anecdotal evidence collected by the Federal Reserve Board’s Summary of Current Conditions, commonly known as the Beige Book, continues to indicate “moderate” economic growth. In its most recent iteration, 10 of the 12 Federal Reserve Districts reported that economic activity in their Districts had expanded at a “moderate” or “modest” pace since the previous Beige Book. The Boston and Chicago… Read More ›

Refinancings Contribute to A Lower Average Mortgage Debt Burden

Mortgage applications eased for the second consecutive week. According to the Mortgage Bankers Association, mortgage application activity, which includes both refinancing and home purchase demand, was 1.7% lower on a seasonally adjusted basis in the week ending Feb. 15. In the week ending February 8, the market index fell by 6.4%. The most recent decline in weekly seasonally adjusted mortgage… Read More ›

Securitizations of Household Debt Accounted For Bond Market Growth

U.S. bonds outstanding have grown from $2.5 trillion in 1980 to $36.9 trillion in 2011. Over this period mortgage-related and asset-backed securities accounted for much of this increase. According to Chart 1, the amount of mortgage-related and asset-backed securities outstanding grew from $0.1 trillion in 1980 to $10.2 trillion by 2011. The growth in mortgage-related and asset-backed securities exceeded the… Read More ›