Bloomberg Markets interviews Svenja Gudell, Chief Economist for Zillow, and she makes some interesting points, particularly in light of Yellen’s speech today outlining a case for interest rate hikes this year. One of the key points is understanding the importance of regionality. We get national numbers, but, say, a 0.25 point increase would have a vary different impact in frothy markets like San Francisco than it would in say, Philly. Similar regional arguments apply to renter sentiment.
Archives for September 2015
In the wake of the recent sub-prime mortgage scandal, everyone is understandably nervous about repeating the past. Recent data indicates that, in fact, sub-prime lending is up significantly (20.4% for HELOCs, 29.5% for home-equity loans, and 30.5% for first mortgages). However, it seems unlikely that there’s cause for concern. Although those percentage increases are large, the number of overall sub-prime loans is very small. Only 146,000 of the 3.3 million mortgages year-to-date were issued to borrowers with a credit score below 620.
It’s official. As of 4:23AM, EDT, this morning, the autumnal equinox was upon us (don’t get us started on why daylight savings time changes don’t align with the equinox). And that means, from here on out, the days are going to be shorter than the nights (though curiously, sunrise and sunset times do not change equally). But don’t get too alarmed just yet. First, it means this blog will have plenty of great, autumnal posts over the next 3 months. And second, the NOAA predicts above average temperatures at least through the middle of October.