Consumer Sentiment: Plunges to a 26-Year Low

Consumer sentiment plunged to its lowest level in 26 years in early April, according to a report released recently by the University of Michigan/Reuters, as worries about the economy, unemployment and inflation deflated hopes for the future.

The U.S. consumer sentiment index fell to 63.2 in early April from 69.5 in March.  Sentiment is at its lowest level since March 1982.  Economists surveyed by MarketWatch were looking for an April result of 68.8.

Where is your "consumer sentiment" right now?  We'd love to hear from you on this topic.  Just click the comment link below and give us your feedback.

Foreclosure Relief Compromise Reached

Senate leaders have reached a deal to advance legislation to ease the nation's home foreclosure crisis. The bill has not been written yet, but Sen. Mitch McConnell of Kentucky, the Republican leader, and Senate Democratic Leader Harry Reid of Nevada defused a GOP filibuster threat that had stymied a Democratic plan a month ago.

The legislation would provide billions of dollars to buy up foreclosed homes. It also would ensure that people who take out high-cost mortgages in the future aren't surprised by big payment increases.

What do you think?  We'd love to hear your comments.  Do you think this deal will help the struggling housing industry?  Use the comment link below to register your feedback on this issue.  Your email address will never be published to protect your privacy.

Housing: Where do the Candidates Stand?

Recent data show that nearly a million American households are at risk of foreclosure, 71% more than a year ago. Nearly 6% of all borrowers are past due on their mortgages.

And the presidential candidates are trying hard to convince voters that they have the best plan for fixing the problems. How do their plans compare?

The Democratic candidates argue that if the Federal Reserve can back the purchase of Bear Stearns with $29 billion, then the federal government can also lend a hand to struggling homeowners.  John McCain contends that the Fed's intervention in the financial markets was designed to stabalize Wall Street, which in turn is supposed to stabalize the mortgage market and help more borrowers.

Have you been keeping up with what the three Presidential candidates are saying about housing and the banking industry?  Who do you believe?  Anyone??  We'd love to hear your thoughts and comments.  Just use the comment link below and sound off.  Don't worry, your email address is never published on our site.

New Home Sales Dip

The U.S. Census Bureau and the Department of Housing and Urban Development announced recently that sales of new, single-family homes fell to a 13 year low in February, dropping 1.8 percent from January's numbers.

The new home sales report is disappointing, given recent positive existing home sales results, however, the fact remains that long-term interest rates are falling, homes are beginning to be priced in line with market expectations and we are just starting to enter the busy spring home buying season. 

When all these dynamics are paired with the fact that liquidity is slowly entering the market, loosening the death grip on credit, there is potential for gains in sales in the coming months.

Talk to us about why now might be the best time of this housing downturn to begin thinking about a new home.

Foreclosures Up 60% in February

Foreclosure filings nationwide jumped 60% in February compared with the same month last year, but they decreased slightly versus January, according to a report released recently.  The report says 223,651 homes got hit with foreclosure filings last month, which include default notices, auction sale notices and bank repossessions. 46,508 of those were lost to bank repossessions, which more than doubled over last year.

The report also indicated that foreclosure filings in February fell 4% compared with January, similar to a 6% decrease that occurred during the same time-span in 2007.

Metro areas in California and Florida topped the list of urban centers facing a surge in foreclosure filings. Outside of the sun belt, Michigan and Ohio each reported more than 10,000 properties with foreclosure filings in February.

In California, foreclosure activity was up 131% year-over-year with a total of 53,629 filings. Florida reported 32,447 foreclosure filings, up 69% over the same period last year.