The Week in Review Wilmington NC July 19, 2008

19Jul08

The Week in Review

.….your Wilmington Connection

July 19, 2008

 

The Well needed rain gave Wilmington a cool off, but not in the real estate market, with many homes under contract. Once under contract we all wait with abaited breath that the loans will be approved. Mortgage mayhem is what I call it. But if you need a good lender that will get the deal done for you let me know I have a couple under my belt I would definately reccomend.

Fannie & Freddie will they be Rescued

Washington, D.C. – Following a weekend of negotiations among officials, the U.S. government plans to extend several financial lifelines–but not a bailout–to the beleaguered mortgage buyers Fannie Mae and announced Sunday that it will allow the Federal Reserve Bank of New York to lend money to Fannie and Freddie should they need it. Separately, the Bush administration announced its own rescue plan, which would extend the Treasury Department’s line of credit to the companies. After working with the companies, the Federal Reserve, and other regulators, Treasury Secretary Paulson outlined a plan that we believe will help add stability during this period,” the White House said.

Home Sales to Vary in Narrow Range, Then Rise in Second Half

Modest near-term movement is expected in existing-home sales, with a recovery in sales seen during the second half of the year, according to the latest forecast by the National Association of Realtors. The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in May, fell 4.7 percent to 84.7 from an upwardly revised reading of 88.9 in April, and remains 14.0 percent below May 2007 when it stood at 98.5.

Lawrence Yun, NAR chief economist, said some pullback after a sharp increase in the previous month was expected. “The overall decline in contract signings suggests we are not out of the woods by any means. The housing stimulus bill that is still being considered in the Senate is critical to assure a healthy recovery in the housing market, jobs and the economy,” he said.

The PHSI in the West slipped 1.3 percent to 97.5 in May but is 2.0 percent higher than May 2007. In the Northeast, the index declined 2.9 percent to 77.0 in May and is 16.4 percent below a year ago. The index in the Midwest fell 6.0 percent to 78.6 and is 13.8 percent below May 2007. In the South, the index dropped 7.1 percent in May to 84.5 and is 22.1 percent below a year ago.Yun said location has never mattered more than in the current market. “Some markets have seen a doubling in home sales from a year ago, while others are seeing contract signings cut in half. Price conditions vary tremendously, even within a locality, depending upon a neighborhood’s exposure to subprime loans.”

 

.…..until next week in The Week in Review

Tina


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