Eye On Housing
Author Archives
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CPI Up on Gasoline, Real Rental Prices Also Rise
After two months of no change, the Consumer Price Index for Urban Consumers (CPI-U) rose by 0.7% in February. According to the release, energy prices accounted for much of the increase in the CPI-U. In February, energy prices rose by 5.4%, reversing three consecutive month-over-month declines. Gasoline prices rose by 9.1% while fuel oil, which is a component of housing… Read More ›
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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 ›
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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 ›
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Measures of Consumer Confidence Indicate Widespread Improvement
February saw broad growth in consumers’ confidence. After mixed signals in January, both indicators of consumer confidence rose in the second month of the new year. Thomson Reuters and the University of Michigan reported that its final estimate of consumer confidence, Consumer Sentiment, rose by 5.1% on a seasonally adjusted monthly basis in February to 77.6. The final reading was… Read More ›
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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 ›
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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 ›
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Quality of Residential Mortgages Expected to Improve in 2013
In its January release, which generally covers the fourth quarter of 2012, the Senior Loan Officer Opinion Survey documented answers by senior bank officers on their outlook for loan quality in 2013. On net, which is the difference between the percent of respondents expecting an improvement in loan quality and the share of respondents expecting weaker loan quality, senior bank… Read More ›
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Consumer Sentiment Revised Up, But Confidence Falls on Expectations of Lower Income
Indicators of consumer confidence were mixed in the first month of the new year. Thomson Reuters and the University of Michigan reported that its final estimate of consumer confidence, Consumer Sentiment, rose by 1.2% on a seasonally adjusted monthly basis in January to 73.8. The final reading was revised up 2.5 points from its January estimate that was released earlier… Read More ›
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Fed Beige Book: Real Estate, Broader Economy Growing
Real estate activity continues to grow, with all Fed districts except one reporting that residential construction expanding according to the Federal Reserve’s most recent Beige Book. The exception – the Kansas City District -noted that “increased lumber and drywall costs limited construction”. The Fed’s positive take on construction activity is consistent with December’s growth in housing starts. The Beige Book… Read More ›
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Consumer Prices Unchanged As Gasoline Is Offset by Shelter and Food
The Bureau of Labor Statistics has reported that the price level measured by CPI-U was unchanged on a seasonally adjusted basis in the month of December. In November, the price level fell by 0.3% after rising for three consecutive months. The absence of any change in the price level is the result of directionally opposite movements in its underlying components…. Read More ›