keeping

you

current

By Madeleine Romanello
July 2008
Reuters
“Hopefully the biggest part of the
housing decline will be over by the
end of the year."
- U.S. Treasury Secretary Henry Paulson

Source: Reuters News 6/24/08

Reuters
“We are at the beginning of the
end of the downturn. It will be a
long painful ending, but this is the
first step in bringing the downturn to
a close.” - Mark Zandi, chief economist at Moody's
Economy.com

Source: Reuters News 6/26/08

Reuters
“It is still too early to call a bottom
in the home sales market, but the
vast majority of the declines in
sales are behind us.”
- Adam York, economic analyst at Wachovia Corp in
Charlotte, NC

Source: Reuters News 6/26/08

ational Assoc. of Realtor

Sales of previously
owned houses rose 2%
last month.

Source: NAR 6/08

Source: CNN Money.com 6/2/08
CNN Money.com
With the national median price
of a single family home at
$204,229, mortgage rates
around six percent
and the average household
earning nearly $50,000, the
average home buyer spent
about 23 percent of
their income on housing during
the first quarter of 2008.
Fortune Magazine.com
On the path to a housing
rebound
So the first time in a decade renters
can carry the mortgage payments
and taxes on a new house for what
they're paying a landlord.

Source: Fortune Magazine.com 6/25/08

Case-Shiller
There were a total of eight
metropolitan areas with month-
to-month gains, led by a 2.9
percent increase in Cleveland.
Source: Wall Street Journal 6/05/08
New York Times
“I don’t think people appreciate how
long it’s going to take to get the
inventory level back down enough to
give sellers some pricing power. It’s
going to take, in our opinion,
two to three years.”
- Paul D. Puryear, a real estate analyst at Raymond James
& Associates.

Source: New York Times 5/25/08

First American CoreLogic
REOs
660,0
00

493,0
00
231,000

January 2007 January 2008 April 2008

Source: Wall Street Journal 6/02/08

Source: Credit Suisse
Associated Press
Lenders stung by the housing bust
are slashing prices dramatically to rid
themselves of an unprecedented
number of foreclosed properties.

ource: Associated Press 6/12/08

www.homesafepmi.com/
Reuters
“Home prices, based on the S&P/Case-
Shiller data, have fallen about 15
percent and I am expecting them to
drop another 10 percent before
reaching a trough in the spring of
2009.” - Mark Zandi, chief economist at Moody's
Economy.com

Source: Reuters News 6/26/08

 Reuters
“Home prices may fall 25
percent to 30 percent from
their peak in 2006 and not hit
bottom until 2010, with greater
drops still in subprime mortgage
debt markets.” - Peter Acciavatti, credit analyst and
managing director at JP Morgan
Securities Inc

ource: Reuters 6/11/08

ational Assoc. of Realtor
The median existing-
home price is likely to
decline 8.4 percent
in the first half of
this year, and then
begin to stabilize in the
second half.

Source: NAR 6/09/08

 Bank’s Lending
Standards

April 2002 June 2008

Source: Federal Reserve

ortgage Rates – 30 year fixed

13

11

5
1983 2007
ource: mortgage-x.com 6/10/08
Mortgage Rates – 30 year fixed
6.5

6.4

6.3

6.2

6.1

5.9

May 22 June 26
ource: Federal Reserve
Financing
flexibility
How can the
seller make
their home
more
attractive
to a greater
pool of
buyers?
Washington Post
The number of FHA loans
issued rose 126 percent in
the first quarter of 2008,
compared with the same
period a year ago.

Source: The Washington Post 6/10/08

Wall Street Journal

Source: Wall Street Journal 6/24/08

Wall Street Journal
Rates on jumbo-conforming loans
are currently 6.59 percent compared
to non-conforming jumbos which are
averaging 7.4 percent.

Source: The Wall Street Journal

6/19/08
Wall Street Journal
At J.P. Morgan Chase & Co., the volume
of jumbo-conforming applications has
doubled since prices began to fall in
early May.

Source: The Wall Street Journal

6/19/08
Wall Street Journal
For some California lenders, jumbo-
conforming loans now account for as
much as 25 percent of applications,
says Pete Ogilvie, president of the
California Association of Mortgage
Brokers. "Most of the activity is in
purchases.”

Source: The Wall Street Journal

6/19/08
Wall Street Journal
In March 2007, before the credit
crunch hit, jumbo loans accounted for
more than 12% of loan applications,
based on the number of loans,
according to the MBA, with the share
of jumbo loans much higher in many
high-priced markets. The jumbo share
stood at 6% in May, after falling to as
low
Source: The as 4.4%
Wall Street in March.
Journal
6/19/08
 DOJ Ruling
“The settlement will ultimately mean
a drop in sales commissions of 25
percent to 50 percent as a result of
increased competition.”
- Norman Hawker, a business professor at
Western Michigan University who organized a
symposium on the Justice Department litigation
as a senior fellow for the American Antitrust
Institute

ource: The New York Times 5/28/08

IBM CEO Study
“More than three-quarters
of the
survey respondents see
savvy customers not as a
threat, but as an
opportunity to
differentiate.”
Better Informed
Consumers
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