Mark-to-Market and Mortgages

Over the past couple of days, a new possible excuse for the recession has been coming up here and there and it’s called the mark-to-market accounting rule, and not a lot of people know what it is. I had to look it up myself, and I’ll try my best to explain what it’s about.

Continue reading Mark-to-Market and Mortgages

Housing failure continues

Housing, which led the economy into recession, may be one of the forces that helps to pull it out of the ditch.

After 14 quarters of declining investment in homes averaging one percentage point of GDP per quarter, residential investments could actually add to the nation’s gross domestic product in the third quarter, economists say.

No one expects a renewed housing boom. But at least sales and construction spending aren’t falling any more.

Signs of stabilization abound:

*  Home builders are gradually becoming more hopeful, even though surveys show most builders are still very discouraged. The builders’ housing market index has risen in four of the past five months.

*  Housing starts have increased in four of the past five months after tumbling to a postwar record low. Building permits for single-family homes have risen at a 109% annual rate over the past three months.

*  Sales of new single-family homes have risen three months in a row after falling to a record low in March.

* Sales of existing homes have risen four of the past five months, supporting by a government subsidy for first-time buyers and by sales of foreclosed homes.

Interesting bits

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Read the news carefully today. You never know what you're gonna get. For recommended reading materials on mortgages and refinance aspects and how to fix your deeds or just plain news on real estate, check out the new york times online. It's a very good source of information.