Mortgage, loan and property. What is a mortgage?


A mortgage is putting a property as a guarantee to a lender as a security for a mortgage loan.

While a mortgage in itself is not a liability or a dept, it is evidence of a debt. It is a transfer of an interest in property, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the property when the terms of the mortgage have been satisfied or concluded.

In other words, the mortgage is a guarantee for the loan that the lender makes to the borrower. In all but a very few states, a mortgage creates a lien on the title to the mortgaged property.

Thursday, August 6, 2009

U.S.: further increase of the promises of housing sales

The promises of housing sales in the United States rose in June for the fifth consecutive month, according to figures released Tuesday by the National Association of Realtors (NAR).

In seasonally adjusted, the index measuring these promises sales grew by 3.6%, while analysts expect a rise of 0.3% only. In one year, the increase is 6.7%. And this is the first time since 2003, when the housing market began a dramatic growth which led to the crisis, the index advancing for five consecutive months.

"The historically low interest rates on mortgages, affordability and wide range encourage buyers who were waiting," noted the chief economist of NAR, Lawrence Yun, stressing however that the activity was concentrated on "cheap housing".

The President of the NAR, Charles McMillan, adding that this trend should be confirmed by a lower rate of cancellations of sales, "which had come up recently."

The home crisis is not over, but it looks better.

Friday, July 17, 2009

Surprise increase in construction in the United States

Coming back from vacation, and going back on vacation, but in the mean time... I am happy to tell you that construction of new homes reached a peak of seven months in the United States in June, a sign that builders are beginning to regain confidence.

The Commerce Department said Friday that housing starts jumped 3.6% last month. This gives a total of 582 000 units according to the figures, which exclude seasonal variations. It is a leap of 14% in construction of single family homes, which explains the increase.

The data is more interesting than the analysts' forecasts, which projected 530 000 units, and the low of 479 000 reached in April.

Another encouraging sign is in applications for building permits, an indicator of future activity. They rose 8.7% in June, giving an annual rate of 563 000 units. Economists consulted by Thomson Reuters were expecting 520 000.

Figures on Friday are very interesting because during the last three years, the real estate market simply crashed, crashed, and crashed again. Collapse or recovery has a significant impact on the rest of the economy.

However, analysts prefer to wait before predicting that real estate really restarted because the United States economy lost more jobs and because house prices are still declining. Also, seizures and stockpiles of unsold homes are still high.

The National Association of Home Builders said Thursday that its market index rose two points to 17 in July, the highest level for about a year. Any figure under 50 indicates a negative feeling. Beyond 50, the feeling is positive. The last time the index rose was in April 2006.

Friday, July 3, 2009

U.S. unemployment rises to 9.5%

The destruction of jobs has accelerated sharply in the United States, where 467,000 jobs were lost in June, raising the unemployment rate to 9.5%, according to figures adjusted seasonally published Thursday by the U.S. Department of Labor.

This net increase in redundancies, after two months of decline, is stronger than analysts predicted, which projected 365,000 jobs destroyed for the month of June.

Rising unemployment is however slightly lower than their expectations (9.6%).

Revisions cumulated figures of the Ministry for the last two months is minimal.

Since the beginning of the recession in December 2007, job losses have reached 6.5 million and the unemployment rate increased 4.6 percentage points, "wrote the Ministry to recall the extent of the crisis.

The destruction of jobs have affected all sectors of the economy, with the exception of the education sector and health services, and the "other services" (essentially the dye), which created a total 43,000 jobs.

The number of jobs has sacrificed more than doubled in the services sector, employing more than 85% of the workforce non-farm, to reach 244,000.

It increased by more than 8% in the industry, affected more than two years.

Ministry figures come a week after the Monetary Policy Committee of the U.S. central bank (Fed) had warned that the economy was far from out of trouble despite signs of stabilization and it shows prospect of a recovery in the second half.

The number of unemployed in the United States reached 14.7 million, according to the official ministry. He has more than doubled since the start of the recession.

In addition, nearly 6.4 million people claiming a desire to find a job but not counted in the labor force for various reasons.

The number of long-term unemployed (27 weeks or more) continues to increase and reached 4.4 million.

According to the ministry, nine million people are forced to work part-time option because of economic conditions.

Monday, June 22, 2009

Interest Rate: The Fed wants to calm fears

The leaders of the U.S. Federal Reserve (Fed) are studying the possibility of using the policy statement Wednesday to stop any speculation that they are willing to raise interest rates this year.

Policy makers at the Fed have already indicated their acceptance of increased rates of return on Treasury bonds over the long term, but some fear the odds on a premature rise in interest rates.

In addition, the staff of the Fed focused on the decision of the Bank of Canada to waive any increase in rates until 2010, according to a person aware of this issue, without having come to the conclusion that the ad was effective.

For example, on 21 April, the Bank of Canada reduced its key rate to 0.25%, the lowest in its history, stating that "we can expect the target rate for loans of one day remains at its current level until the end of the second quarter of 2010, the situation is subject to the outlook for inflation."

For the Fed, an option might be to focus in his statement on Wednesday that the more marked slowdown in the labor market and manufacturing activity in the United States will keep inflation low and temper the recovery, said Michael Feroli, economist at JPMorgan Chase in New York and former member of the Fed.

What is at stake is to keep borrowing costs low enough to promote a sustained recovery without linking the U.S. to a single action plan.

"There are ways (for decision by the Fed) to highlight their expectations for lower interest rates without committing too much," says Lou Crandall, chief economist at Wrightson ICAP, Jersey City, New Jersey.

The Fed chairman, Ben S. Bernanke and his colleagues of the Federal Open Market (FOMC) will meet in Washington tomorrow and Wednesday. Economists forecast that they will leave the rate by the Fed in a range from 0 to 0.25%. Policymakers will also discuss any changes to their commitment to purchase up to 300 billion U.S. Treasury bills and 1450 billion U.S. in debt related to real estate.

In its last two statements, the FOMC said that economic conditions are likely to justify the exceptionally low rate of federal funds for a long time. "

The markets have already indicated that they no longer take account of this speech. Treasury bills of two years have slipped since a report by the U.S. government reported on 5 June, the smallest loss of jobs in eight months, the rate of return of 1.14 is good % early yesterday afternoon in New York, compared to 0.91% in early June.

Futures contracts on the U.S. federal funds for March show a yield of 0.705%, which indicates a certain probability of rate hikes by the first quarter of 2010.

If job losses are declining, officials from the Fed, however, have often repeated that the unemployment rate will likely increase in coming months.

Friday, June 12, 2009

U.S. consumers still confident

The index of U.S. consumer confidence measured by the University of Michigan rose in June for the fourth month in succession, but a little less than expected by analysts, according to a preliminary estimate published Friday.

The index stood at 69.0 points against 67.8 points in May. Analysts were waiting to 69.5 points.

It is at its highest level since the low peak since the financial crisis of autumn (70.3 points in September 2008).

The final figures for the month of June will be released on June 26.

More to come later...

Wednesday, June 3, 2009

Home buyer promises surge in April

The promises of purchasing a house in the United States surged in April, posting their third consecutive month of rising and rising well beyond expectations, according to figures released Tuesday by the National Association of Realtors (NAR).

The index increased by 6.7% compared to March, having already taken 3.2% the previous month and 2.0% in February, according to a news release.

Analysts projected a rise of only 0.5%.

Compared with April 2008, the index recorded an increase of 3.2%.

In January, the promises of purchasing a home had plummeted to their lowest level since the NAR calculates it since 2001.

"The implementation of a tax credit of 8,000 dollars for first-time buyers is starting to take effect on the market," said NAR economist, Lawrence Yun, cited in a statement.

"Since buyers must complete their purchase before November 30 to qualify for this credit, we anticipate an increasing activity in the coming months," he added.

If the market "seems to have already reached its lowest and begin its rebound in some regions," some other areas are stagnant or decline, however, tempers Mr. Yun.

The cost of housing (taking into account prices, interest rates and the purchasing power of households), calculated since 1970, increased by 1.7% in April, said the association.

Thursday, May 28, 2009

Record fall in housing prices in the United States

The fall in home prices in the United States has set a new record in the first quarter, reaching 19.1% year on year, according to the Standard and Poor's / Case-Shiller released Tuesday, which measures domestic prices.

Compared to fourth quarter 2008, the drop was 7.5%. During this quarter it was 7.4% compared to the third quarter of 2008.

In the twenty largest cities of the country, the decline was also a record first quarter, reaching 18.7% in one year, and in the ten largest vities, 18.6%, said Standard and Poor's.

The drop in residential real estate market has continued at a steady pace since March, said one of the authors of the study.

Thursday, May 21, 2009

The Fed lowered its growth forecast for 2009 and 2010

The U.S. Federal Reserve (Fed) announced a decline in its growth forecasts for the U.S. economy in 2009 and 2010.

Wednesday 20 May the Fed has lowered the GDP growth for the next three years, although a slight recovery is expected in the second half of 2009. For this year, it anticipates a reduction of between 2% and 1.3%, whereas in January it expected a decline of between 1.3% and 0.5%.

In 2010, the Fed sees GDP growth of 2% to 3%, and in 2011 from 3.5% to 4.8%. Slightly lower than those announced four months ago. The economic outlook of the members of the Monetary Policy Committee of the Fed (FOMC) meet the diagnosis of its chairman, Ben Bernanke. He foresaw a slow recovery in 2010, but a continuing rise in unemployment across the Atlantic.

The FOMC elaborates figures: the unemployment rate, currently 8.9%, the highest in twenty-five years could reach up to 9.6% in 2009 and still 8.5% in 2011, well over the long term goal of the Fed, between 4.8% and 5.0%. Regarding inflation, the Fed believes that it should be between 0.6% and 0.9% this year. Overall, "most" of the FOMC members believe that the economy should not be in line with its objectives of growth, unemployment and inflation in the long run for five or six years.

Thursday, May 14, 2009

U.S.: the restoration of the economy would take 3 or 4 years

The restoration of the American economy would take three or four years, according to the majority of economists surveyed for the monthly survey of Wall Street Journal published Thursday.

48% of forecasters surveyed by the newspaper business, it was not until this period that the first world economy the shortfall caused by the recession began in December 2007.

Only 14% to predict a return to the activity level in December 2007 under one or two years, while 28% believe that the recovery will last five or six years, the newspaper said on its website.

On average, the 52 economists surveyed believe the recession will end in August, a month earlier than they predicted in April.

As for the World economy, it looks like it probably would be a few months later.

Friday, May 1, 2009

The Fed's gives assistance to the sector of commercial real estate

The Federal Reserve of the United States announced Friday the launch of aid to the commercial property sector shows signs of weakness with the economic crisis.

The assistance of the central bank will go through one of its financial support programs to the existing economy: lending to asset backed securities (TALF), designed to facilitate the refinancing of a number economic agents.

This program officially launched in March has a total of 200 billion dollars and is designed to unlock credit markets.

So far, it allowed the Fed to pay interest rates beneficial to investors wishing to acquire securities issued by companies specializing in consumer credit, credit cars, student loans and loans to small companies.

The changes will open this Friday the program to securities backed by commercial real estate lending, said the Fed, which hopes to avoid defaults in this sector.

Wednesday, April 29, 2009

U.S. consumer confidence is rising

The confidence of American consumers has "improved significantly" in April, gaining more than twelve percentage points to 39.2 points, according to the index published Tuesday by the Institute of economic private Conference Board.

Analysts were expecting a more modest increase of this indicator, to 29.9 points. The Conference Board has revised its figures for the previous month, up 0.9 points to 26.9 points.

Figures from the Institute seem to show that consumer confidence rose to its highest level since November 2008, after touching a low in February to 25.3 points, its lowest level since 1967 and the beginning of the publication this series.

The rebound in April due to a slight improvement in the component measuring the assessment of the situation, increased from 21.9 points to 23.7 points and a strong increase of the component measuring consumers' expectations, increased from 30.2 to 49.5 points, its highest level since the peak of the financial crisis in September 2008.

According to the Conference Board survey, conducted until 21 April 5000 to U.S. households, the proportion of respondents describing it as "bad" economic conditions fell below the 50% to 45.7% (against 51.0% in March). That of households are "good" increased slightly, from 6.9% to 7.6%.

The share of households considered "difficult" to find work has fallen slightly, to 47.9% (against 48.8% in March), but the proportion of those holding offers of jobs "plentiful" also declined to 4.5% (against 4.7% in March).

Thursday, April 23, 2009

Property resale is falling faster than expected in the U.S.

Sales of existing housing in the United States went back in a declining slope in March, by 3% compared to February, dropping to 4.57 million units at an annual rate.

These are the figures released Thursday by the National Association of Realtors (NAR). This decline is greater than analysts' expectations, which projected sales of 4.65 million dwellings, seasonally adjusted.

The NAR has revised slightly lower sales figures for the month of February, the increase had surprised analysts. The NAR believes it to be at 4.71 million at an annual rate, instead of the 4.72 million it announced a month ago.

According to the association, the share in sales of the cheaper housing has increased, indicating a return on the market of first time home buying. This is good news for the housing market.

However, sales of higher priced housing are still at a standstill because of rising interest rates for large loans. Oh well...

Monday, April 20, 2009

Sales of socks, the barometer of Alan Greenspan

When he was chairman of the Federal Reserve, Alan Greenspan was known to use proletarian measures to judge the state of the economy. One of the best known was the sale of underwear for men.

The logic of Mr. Greenspan, where sales of socks for men are declining, the economy is declining. Because this type of garment is that of which the purchase is more likely to be done only when necessary, as it is seen almost anyone.

But then according to data from research firm Mintel, retail sales of underwear for men should fall by 2.3% in 2009. This is a radical change on the November 2008 forecast, while Mintel expects growth of 2.6% in 2009.

"Sales of underwear for men are probably those which vary the least among all the clothes," said Matt Hall, a spokesman for the manufacturer Hanesbrands, the site The Huffington Post.

"But recessions have an impact on all categories (clothing) and underwear for men are no different (other categories) ..." If there is a downturn in the market because of the economy . But over a longer period, the effect dissipates. "

Because hoped, men do not often socks less today than in the past ...

Tuesday, April 14, 2009

Obama welcomes the very low mortgage rates

U.S. President Barack Obama praised Thursday the historically low rates of U.S. mortgage loans, saying it was good news for its citizens and the property sector, in the midst of the economic crisis.

"We are in a period where people can really take advantage of this situation," said Obama, speaking at the White House with his side of the property owners who benefited from a mortgage refinancing, and his senior advisers economic.

The average mortgage rate fixed at 30 years, especially popular, fell to 4.78%, its lowest level in history, "said the American president returned from a tour abroad. He felt that this was a credit to the "extraordinary action" of the Federal Reserve and the administration's plan to help the real estate sector.

"We are adding stages to the program" to assist property owners in difficulty, "said Obama. "We are putting in place a program to change lending by working with banks, with services that allow people about to lose their homes to consolidate their position," he said.

People in trouble can find information on the site makinghomeaffordable.com, "he said, highlighting also warned against" the artists of fraud "that offer false real estate refinancing plans by requesting a payment of money Now.

Monday, April 6, 2009

United States: the highest rate of unemployment in 26 years

Loss of 663 000 jobs!

U.S. employers have laid off 663 000 individuals in March, which pushed the unemployment rate to 8.5%, the highest rate since 1983, announced the Department of Labor Friday.

The number of job losses is slightly higher than what was expected by economists, which projected 660 000 job losses.

The unemployment rate, which increased by 0.4% compared to February, is also in line with expectations.

The Labor Department also revised data for January. Job losses for the first month of the year amounted to 741 000, which constitutes the largest loss of jobs in one month since October 1949.

The decline in employment for February remained the same at 651 000 jobs.

Since the beginning of the recession in December 2007, the U.S. economy has destroyed 5.1 million jobs, of which about two-thirds since the last five months.

Wednesday, April 1, 2009

Record drop of 19% in house prices in January

Housing prices in the United States in January recorded a new record fall, crashing 19% on a year, according to the S & P / Case-Shiller measure prices in the 20 largest U.S. cities and published Tuesday.

After an already historic decline of 18.5% in December, analysts expected a decline of 18.6%.

The magnitude of the fall in house prices in the ten largest cities in the country has also reached a new record, at -19.4% over one year, the study adds.

Both indices are declining every month since October 2007, emphasized the study.

Shift in monthly housing prices plunged by 2.8% in twenty major cities in January, against 2.6% in December.

In the ten largest cities, prices fell by 2.5%, exacerbating their decline the previous month by 0.2 points.

Thursday, March 19, 2009

U.S.: unemployment registration is down

Some 646 000 people registered as unemployed last week in the United States, a figure lower than expected. But the total number of unemployed continued to rise for the eighth consecutive week, rising to 5.47 million.

In seasonally adjusted, the United States last week had 646 000 registered unemployed, as against 658 000 the previous week, according to figures announced Thursday by the Treasury Department.

But the total number of unemployed increased by 185 000 persons during the last week, reaching 5.47 million in seasonally adjusted. This is a new record, while analysts projected 5.33 million unemployed.

Wednesday, March 11, 2009

A temporary CEO at Freddie Mac

The U.S. mortgage refinancing Freddie Mac (FRE), under the supervision of the federal state since fall (or the fall, or it’s fall, you choose!), anyway, Freddie Mac announced Wednesday that the chairman of its Board of Directors John Koskinen would temporarily fill the post of director general.

The Director General David Moffett announced its March 2 decision to leave his post, his resignation is effective this Friday. John Koskinen had indicated that he would appoint a chief on an interim order.

"The board of Freddie Mac is working in conjunction with the (new regulator overseeing the mortgage refinancing) FHFA to appoint a permanent executive director, after which Mr. Koskinen is expected to resume his original post, the agency said in a release.

Freddie Mac, which has already received 13.8 billion U.S. dollars of federal aid, said in January it was about to claim between 30 and 35 billion to the Treasury to return to a net positive.

Unlike its counterpart Fannie Mae, which, although generally seen as less bad shape, unveiled a colossal loss of 58.7 billion U.S. in 2008, Freddie Mac has provided no assessment on the amount of expected losses in the fourth quarter, or advanced for their date of publication.

Tuesday, March 3, 2009

New home sales hit a new low in the U.S.

Sales of new homes in the United States have plummeted from 10.2% in January from the previous month, reaching 309 000 (annual rate), a new historic low.

These are the figures released last Thursday by the U.S. Department of Commerce. This figure, the lowest since the first publication of this statistic in 1963, is well below analysts' forecasts, which projected 324 000 sales.

January marked the sixth consecutive month of decline in new home sales. The number of sales in December was revised down to 344 000 housing units at an annual rate (instead of the originally announced 331 000).

The decline in annual sales reached 48.2% in January.

The median sales price was established for its 201 100 U.S. $ 223 against $ 200 in December, down almost 10%.

Tuesday, February 24, 2009

New records in house prices in the U.S.

Housing prices in the United States in December saw a new record decline, falling 18.5% year on year, according to the S & P / Case-Shiller measure prices in the 20 largest U.S. cities and published Tuesday.

After a decline of 18.2% in November, analysts expected a decline of 18.3%. The fall in house prices in the ten largest cities in the country has also reached a new record, at -19.2% over one year, adds the study.

December was the 29th consecutive month of decline in these two indices, which are constantly establishing new records every month since last May.

Shift in monthly housing prices fell by 2.5% in twenty major cities in December, against -2.3% in November.

In the ten largest cities, prices fell by 2.3%, beating their decline the previous month by 0.1 points.

Throughout the fourth quarter of 2008, housing prices have slumped by 18.2% year over year.

"In December, average prices of homes in the United States were at about the level they were in the third quarter of 2003. Since the peak of the second quarter of 2006, they plunged 26.7%," write the authors of the study.

According to S & P / Case-Shiller 20 cities under scrutiny of the study showed negative performance, and 13 of them recorded successive record declines since December 2007.

As in previous months, the cities hardest hit by the decline are cities of the "sun belt" south of the country. Phoenix comes to mind again (-34%), followed by Las Vegas (-33%). In third place comes the Californian city of San Francisco (-31.2%).

Then Miami (-28.8%), Florida, and two other California cities, Los Angeles and San Diego, down respectively by 26.4% and 24.8%. Prices in Miami, Las Vegas, Phoenix and San Francisco have fallen by over 40% from their respective peaks in 2006.

Monday, February 23, 2009

The U.S. gov. plan for real estate will have rapid effects

The plan of U.S. President Barack Obama to help millions of homeowners at risk of losing their homes will produce effects “very, very fast," assured U.S. Secretary of Housing and Urban Development, Shaun Donovan on Thursday.

"We believe we can achieve very, very quickly that aid to the millions of families in need," he said on CNN. "There's going to have a real impact in March, with lasting changes, meaningful and long term," said Sheila Bair, head of the federal agency that insures bank deposits (Federal Deposit Insurance Corporation).

The President Obama announced Wednesday a plan of at least 75 billion dollars to help millions of homeowners threatened with seizure and address what has precipitated the crisis in the global economy.

But voices were raised against this plan in opposition. Two elected representatives of the Republican minority in the House of Representatives, John Boehner and Eric Cantor, sent a letter listing a series of "unanswered questions" about the plan to Barack Obama.

They believe that it will reward the banks, when they took unreasonable risks in giving loans too easily, and help those who have falsified their income to obtain a loan.

Republican Senator Chuck Shelby, chairman of the Banking Committee of the Upper House, said meanwhile that the plan "seems to help those who least need and not help those in need."

"The most outrageous is that the President's plan will use taxpayers' money to help people do what they are supposed to do: pay their loans," he said in a statement.

The plan also uses taxpayer money to pay the banks to do what they should have done: “change the rate.”

Lets all hope that this mortgage help will, in fact, help!

Wednesday, February 18, 2009

Obama promises 75 billion for homeowners

The administration of U.S. President, Barack Obama, will spend 75 billion U.S. dollars to help homeowners at risk.

The government will make use of mortgage financing agencies Fannie Mae and Freddie Mac to launch this measure, announced Wednesday the Treasury Department. "With this plan, we will help between seven and nine million families to restructure or refinance their mortgages or have their loans modified" will say Mr. Obama in a speech scheduled in Phoenix, an area particularly affected by the crisis in real estate.

Mr. Obama defended the urgent need for measures announced earlier in the day by his administration: the plan will prevent the worst consequences of this crisis can cause even “more havoc in our economy," he said according to the text of the speech released in advance by the White House.

"And all of us will pay an even steeper price if we allow this crisis to deepen -- a crisis which is unraveling homeownership, the middle class, and the American Dream itself. But if we act boldly and swiftly to arrest this downward spiral, every American will benefit." he said.

Help doubled

A few minutes earlier, the Treasury announced that it would double its aid to Fannie Mae and Freddie Mac, bringing 100 to 200 billion U.S. dollars each.

Last September, the takeover over by the federal state of these two giants victims of the mortgage crisis was preceded little by the global financial crisis.
The Treasury said that the two agencies were "critical to the functioning of the system of financing of real estate" and played "a central role in making affordable mortgage rates and maintain stability and liquidity in the mortgage market."

Thursday, February 12, 2009

Decline in home legal procedures in the U.S.

The number of procedures for real estate fell 10% in January compared to December, but is still 18% higher than in January 2008, said Thursday the firm RealtyTrac.

With 274 399 procedures undertaken, it is 1 home for 466 on average that is affected by notifications of delays, announcements of auctions or seized by creditors, calculates RealtyTrac, which also notes that it is the 37th month in a row that this number is rising compared to the previous year. This downward number is probably due to the measures taken in recent weeks to protect homeowners in distress, "particularly the moratorium proposed by (organizations refinancing mortgage) Fannie Mae and Freddie Mac, which is extended until the end of January, and the freezing of entry procedures imposed in Florida," according to the RealtyTrac CEO James Saccacio.

Once again California is leading the number of procedures undertaken (one in 173 homes affected, 76 761 procedures, -14% in one month, 34% raise in one year).

Nevada is in first position proportionately and fifth gross (one in 76, 14 444 procedures, -4% in one month, 137% a year), with the Greater Las Vegas second national .

Arizona is third both in gross terms as a proportion (one in 182 homes affected, 14 674 procedures).

Florida ranks fourth in proportion, second in gross terms, despite a decline of 20% in one month, with a seizure started in a home on 214 (40 770 in total).

The other States affected proportionally by the Oregon seizures, followed by Illinois, which grew 16% in a month, Michigan, Georgia, Idaho and Ohio.

Among the ten cities most affected, six are in California, led by Merced (housing on 59 affected), two are in Florida and two in Nevada.

Friday, February 6, 2009

New low for construction in the U.S.

The number of housing starts and housing building permits issued in the United States continued to fall in December, reaching new low point in half a century of publication of these two indicators.

This was announced Thursday by the Commerce Department in Washington.

The authorities have granted 549 000 building permits in December on an annual and seasonally adjusted basis, or 10.7% below the previous month. Analysts expected a smaller decline, with 615 000 permits.

With the exception of June, each month of 2008 saw a decrease in the number of permits issued over the previous month. The indicator in October had reached its lowest level since the beginning of its publication in 1960.

In November, the decline was 15.8%, according to revised figures from the Commerce Department.

The number of permits issued in December was 50.6% lower than it was a year earlier.

This decline suggests that the long-awaited rebound of the construction will not occur immediately, while the number of sites starts continues to fall.

In December, it fell by 15.5% to 550 000. Again, analysts were expecting a weaker drop, relying on 610 000 starting sites of construction.

The indicator was knocked for the third month in a row to its lowest level since the beginning of its publication in January 1959.

Year over year, its decline was 45% in December, according to the department.

The decline in housing starts in December due to a decline in new construction of individual houses (-13.5%), reached a new low, and the launches of residential buildings (-17.1%), reached it’s lowest since January 1994.

With regard to building permits, the number of authorizations for homes - a key indicator for the markets - has declined by 12.3% compared to November, reaching a new low, while permits for residential buildings fell to 5.6%, its lowest level since February 1994.

Obama, we all hop your plan works...

Wednesday, February 4, 2009

522 000 jobs lost in the private sector in the U.S.

The private sector has lost 522 000 off-farm jobs in January, according to a study of human resources firm ADP released Wednesday.

The extent of job losses is higher than what analysts predicted, which projected 515 000 net cuts. ADP has revised downwards its estimate of losses for the previous month to 659 000 (instead of the originally announced 693 000 – A slight improvement, but another sign that we are in a recession).

According to ADP, the services sector, which accounts for almost 85% of non-agricultural employment in the United States, has lost 279 000 jobs in January.

Employment has also declined for the 24th month in a row in the industry sector, where 243 000 were lost.

I don't know what impact this will have on home prices, but it is not good. America, it's time to wake up!

Tuesday, January 27, 2009

U.S. consumer confidence at lowest - unprecedented decline in house prices

The index of U.S. consumer confidence hit a never seen low in January. Meanwhile, housing prices in the U.S. in November registered a new record decline, falling 18.2% year on year, according to the S & P / Case-Shiller.

The index of U.S. consumer confidence hit a new bottom in January, reflecting rising unemployment and the problems of the real estate sector. The index of the employers' federation Conference Board came to 37.7 against 38.6 (38 in first estimate) in December, while the consensus gave 39.

"Consumers remain pessimistic about the state of the economy," said Lynn Franco, director of research center of the Conference Board, cited by Reuters. "Until there is a significant improvement in expectations index, we can not say that the worst is over."

The expectations index fell to 43 against 44.2 (43.8) the previous month. Yet the number of respondents felt that a job is difficult to find a slightly decreased (to 41.1 against 41.5) but the number of respondents anticipating an increase in their income has similarly declined to 10 against 12.7. Only 13.3% believe that the conditions of business will improve in six months, with little change figure compared to 13.4% in December.

Meanwhile, prices of homes in the United States fell 18.2% in November compared with same month of 2007, an unprecedented decline as was the case in October, shows that the investigation Tuesday monthly Standard & Poor's / Case-Shiller, which confirms that the U.S. housing market is experiencing a deep recession.

The composite index calculated on the basis of twenty metropolitan areas show a decline of 2.2% over one month. The decrease over one year is slightly lower than anticipated by economists who expected a decline of 18.4 to 18.9%.

"The free fall of home prices in the housing market has continued throughout the month of November 2008", commented in a press release David M. Blitzer, chairman of the indexes from Standard & Poor's.

Friday, January 23, 2009

New low for construction permits in the U.S.

The number of housing starts and housing construction permits issued in the United States continued to fall in December, reaching a new low point in half a century of publication of these two indicators.

This was announced Thursday by the Commerce Department in Washington.

The authorities have given 549 000 building permits in December at an annual rate and seasonally adjusted, or 10.7% less than the previous month. Analysts expect a smaller decline, with 615 000 licenses.

With the exception of June, each month of 2008 saw a decrease in the number of permits issued over the previous month. The indicator had reached in October its lowest level since the beginning of its publication in 1960.

In November, the decline was 15.8%, according to revised figures from the ministry.

The number of permits issued in December was 50.6% lower than it was a year earlier.

This decline indicates that the long-awaited rebound of the construction is not for now, while the number of started sites continues to fall.

In December, it fell by 15.5% to 550 000. Again, analysts were expecting a not as strong decline.

The indicator is down for the third month in a row and is at its lowest level since the beginning of its publication in January 1959.

Over a year, its decline was 45% in December, according to the ministry.

The decline in housing starts in December due to a decline in new construction of houses (-13.5%), reaching a new low, and the launches of residential buildings (-17.1%), the lowest since January 1994.

With regard to building permits, the number of permits granted to individual homes - a key indicator for the markets - has declined by 12.3% compared to November, reaching a new low, while the permit for residential buildings fell 5.6% to its lowest level since February 1994. The housing crisis is far from over...

Monday, January 12, 2009

U.S.A.: another 2 million jobs are lost

Job losses in the United States will probably be lower in 2009 than in 2008, but 2 million jobs will disappear.

It is quite pessimistic prediction that the Conference Board, an independent research, this morning.

The Conference Board releases its Employment Trends Index (ETI) in December, an index that includes indicators to understand trends in employment.

The index stands at 99.6 for December, down 1.6 percentage points compared to the previous month. In one year, the index lost almost 16%.

"The sustained deterioration of the index ETI indicated that there was no turnaround expected in the short term for the labor market, said Gad Levanon, senior economist of the Conference Board.

According to the analysis of the U.S., it's been 17 months since that the ETI is falling and we can feel the decline in all its components. Especially for the hiring of temporary workers and part-time for six months.

Americans must ask themselves when bad economic news will stop.

Friday, the Labor Department announced that 2.6 million jobs were lost in 2008. This statistic is in the worst year since 1945.

Above all, 1.9 million jobs were eliminated during the last four months of the year, when the economic and financial crisis has grown.

In December, 524 000 jobs disappeared, which boosted the unemployment rate to 7.2%. This is the worst unemployment level since January 1993.

Monday, January 5, 2009

The Fed is starting to buy mortgage titles

The U.S. Federal Reserve (Fed) announced Monday have started to buy back shares mortgage-backed agencies with mortgage refinancing semi-public U.S. crossing a new stage in its support for the economy.

These acquisitions of securities issued by Fannie Mae, Freddie Mac and Ginnie Mae are conducted for the Fed by private asset managers selected by the central bank, said the Federal Reserve Bank of New York on its website .

The New York Fed is the traditional intermediary between the U.S. and markets.

Announced in November, the plan of redemption of securities backed by real estate assets issued by Fannie Mae, Freddie Mac and Ginnie Mae, provided that the Fed spends up to $ 500 billion.

At its monetary policy meeting in December, the Fed has officially committed to the path of "quantitative monetary easing" policy of massive increase in liquidity, and said it might have to exceed the amount of $ 500 billion, depending on its assessment of economic conditions.