house

Week Ahead: Housing and Consumer Confidence

September 24, 2011

Investors next week will review housing data and its close ally, consumer confidence . Plummeting home prices have taken their toll on consumer confidence as homeowners have reined in spending in proportion to the shrinking value of their house. Factory data is also on tap from three regional manufacturing surveys. Sales of new single-family homes in August is out Monday. The number has been stagnant at about 300,000 for several months and a boost is needed if the battered construction sector is to regain its footing. During the housing boom early last decade, a massive inventory glut of new homes was created in areas such as Las Vegas, Florida and areas of Southern California. Many of the homes were built on speculation, but no buyers ever materialized. The market is still trying to work through that glut and construction workers are suffering the consequences. The National Association of Realtors Pending Homes Sales Index for August is due Thursday. The influential S&P/Case-Shiller Home Price Index for July is due Tuesday. The U.S. housing woes are well documented and a revival of that sector is key to the overall economic recovery. But foreclosures are on the rise again, jumping 7% in August over July, according to housing research firm RealtyTrac, and default notices filed against delinquent homeowners rose 33% in August from the prior month. With foreclosures back on the rise and inventories glutted, home prices are expected to fall. The Wall Street Journal this week, citing a recent survey of 100 economists, said home prices, already down nearly 32% from their 2005 highs, are expected to drop another 2.5% this year and rise just 1.1% annually through 2015. All of these factors will weigh heavily on the Conference Board’s Consumer Confidence Index for September, also due Tuesday. Consumer spending makes up 70% of the U.S. economy, but most consumers are holding onto every dollar they can. The ripple effect has been devastating. The final reading of the Reuters/University of Michigan Consumer Sentiment Index for September is due Friday. The index currently stands at 57.8, the same level at the worst of the recent financial crisis. The Dallas Fed’s Texas Manufacturing Outlook is out Monday; the Richmond Fed Manufacturing Survey is due Tuesday; and the Kansas City Survey of Manufacturing on Thursday. A second revision of second quarter U.S. GDP is due Thursday, and a report on August personal income and spending is out Friday. Go here to see the original: Week Ahead: Housing and Consumer Confidence

Read the full article →

Divisions Emerge on Fannie, Freddie Overhaul

March 29, 2011

Divisions among lawmakers about how soon to overhaul the U.S. mortgage market emerged, as Senate lawmakers in both parties cautioned against moving too fast, even as House Republicans introduced a slew of new bills.

Read the full article →

Obama Turns to Economy in Ohio to Highlight Administration’s Stimulus Jobs

February 26, 2011

By Kate Andersen Brower and Roger Runningen June 18 (Bloomberg) — President Barack Obama pivoted from the Gulf of Mexico oil spill back to the economy today with an emphasis on the jobs created by his administration’s $862 billion economic stimulus package. At a groundbreaking in Columbus, Ohio, for the 10,000th road project funded by the stimulus, Obama said improving the nation’s infrastructure is one of the keys to long-term prosperity. “If we’re going to rebuild America’s economy, then we’ve got to rebuild America, period, from the ports and the airways that ship our goods, to the roads and transit systems that move our workers and connect cities and businesses,” Obama said at the project site near the Nationwide Children’s Hospital . The president is seeking to remind voters of his efforts to revive the economy five months ahead November’s midterm elections. Republicans have criticized the stimulus legislation as a wasteful spending program that hasn’t fulfilled the administration’s promises on job creation. Unemployment in Ohio is 10.7 percent, one percentage point higher than the national average. While the Federal Reserve’s regional business survey showed last week that the economy expanded in all the central bank’s districts in April and May for the first time in more than two years, job growth has lagged. Initial jobless claims increased by 12,000 to 472,000 in the week ended June 12, Labor Department figures showed yesterday. ‘Summer of Recovery’ “The economy is still lousy,” Transportation Secretary Ray LaHood told reporters before today’s trip. “We want to put the message out: This is going to be the summer of recovery.” LaHood, who traveled with the president to Ohio, said the project being highlighted today is expected to create more than 300 new jobs and is one of 462 transportation projects in Ohio funded by $1.1 billion in stimulus money. The work being done under the stimulus will “pay dividends to our communities for generations to come,” Obama said. “While the recovery may start with projects like this it can’t end here.” In a report to the president released yesterday, Vice President Joe Biden said the government has spent $620 billion from the stimulus and created or saved between 2.2 million and 2.8 million jobs. He predicted jobs created or retained by the end of 2010 will number “at least” 3.5 million. Republican Critics “We have created over 17,000 jobs in the last month” in Ohio, Republican state auditor Mary Taylor , a candidate for lieutenant governor, told reporters on a conference call today before Obama arrived. “But it’s an important fact to note that 16,800 of those jobs created were government jobs.” The White House is kicking off a six-week focus on scores of public works projects under way across the nation and into the election season. “This summer a lot more people are going to be working on highways, building clean water projects, weatherizing homes, and — and they’ll be drawing paychecks that they wouldn’t have otherwise drawn,” Biden said at a briefing yesterday that was part of the administration’s focus on the stimulus. The economy will be a top issue in the November elections that will determine which party controls the House and Senate. The Columbus area is represented in the House by freshman Democrat Mary Jo Kilroy . She was elected in 2008, the first Democrat to represent the district since 1982, according to the Almanac of American Politics. The non-partisan Cook Political Report rates her race against Republican former state Senator Steve Stivers as a toss-up. “There’s a feeling of disenchantment, disillusionment, discouragement — a feeling that no politician is going to be able to do much to turn the situation around,” Paul Beck , a political science professor at Ohio State University in Columbus, said of voter sentiment in the state. “Until the private sector really turns around you’re not going to have a big surge of jobs,” said Beck. Still, Beck said, “the stimulus money has been very important to Ohio, it’s prevented wrenching cutbacks in Ohio.” To contact the reporters on this story: Kate Andersen Brower in Columbus, Ohio at kandersen7@bloomberg.net ; Roger Runningen in Washington at rrunningen@bloomberg.net

Read the full article →