April 20, 2012
HERE ARE BITS & PIECES FROM INMAN NEWS:
- “Mortgage rates slid this week as worries about the economy made mortgage backed securities that fund most mortgage loans look like a safe bet to investors. “ Demand for purchase loans was up 5.5% from the same period last year.
- Federal Reserve Vice Chairwoman Janet Yellen defined substantial headwinds that continue to restrain the recovery.
- Housing which is likely to pick up only gradually
- State and local governments are facing extremely tight budget situations as federal stimulus winds down
- Sluggish economic growth abroad.
- An article on Demographic Trends notes that the housing market through 2030 will depend on the desires and fortunes of two generations, the baby boomers and their offspring. The current housing market suffers from “doubling up” among young adults, high vacancy rates, reduced incomes, higher poverty levels, high share of seriously delinquent mortgages and declines in home ownership particularly among minorities.
- Growth in the senior population will create a new demand for affordable, accessible housing.
- Seniors will contribute increasingly to the housing supply and release more units than they absorb.
- Echo-boomers (born 1981-1995) represent a long term opportunity for housing recovery but are struggling in the economic crisis.
- Rental housing demand is likely to climb in coming years.
- Black and Hispanic Americans have suffered significant setbacks in homeownership. Blacks are at 44.3%, 28% less than whites, and Hispanics are 25% less than whites.
- Overall, median household wealth was $70,000 in 2009, down 28% from 2005. Broken down: non-Hispanic whites median household wealth was $113,000,
Asians – $78,000, Hispanics – $6,300, and Black – $5,700.