We have all heard that a quick and easy test to determine a person’s general outlook is to show them a glass half filled with water and ask them to describe whether the glass is half empty or half full. It seems that those with an upbeat and optimistic outlook generally tend to describe the glass as half full, and those with a darker and more pessimistic view tend to describe the glass as half empty.Read more

Approximately 1.2 million households were lost from 2005-2008, despite the population increase of 3.4 million in the study area, as Americans experienced one of the deepest recessions in decades, according to a study released by the Mortgage Bankers Association (MBA). This decline in households is likely what contributed significantly to the excess supply of apartments and single family homes on the market.Read more

We have ended our perspective on what happened in the secondary markets with regard to the financial crisis. It is time to take a look at what is happening now. The stock market and certain financial measures are telling us that we are in the early stage of a recovery. For example, the Standard & Poor’s (S&P) Index has rallied from below 700 to over 1,000 from the low hit this spring, a swing of over 50 percent.Read more

The employment report for October was a stark reminder of the costs that the recession is imposing on U.S. workers and households. Non-farm payrolls fell 190,000, a bit worse than consensus expectations and continuing to paint a bleak picture of job prospects. The unemployment rate jumped nearly a half-percentage point, to 10.2 percent, the highest since mid-1983. A broader measure of underemployment that includes part-time workers, discouraged workers and people marginally attached to the labor force is even higher, rising to 17.5 percent.Read more

This is the second in a two-part series of articles introducing my new “Secondary Market Overview” column for National Mortgage Professional Magazine. The goal of this column is to provide some perspective on how the secondary markets played a role in what has happened in the rise and fall of the real estate markets over the past 10 years.  We left off in the September 2009 edition with the end of the Savings and Loan (S&L) crisis in the late 1980s.Read more

Jay Brinkmann, chief economist and senior vice president of research and economics for the Mortgage Bankers Association (MBA), testified today before the Senate Committee on Banking, Housing and Urban Affairs at a hearing titled, "The State of the Nation's Housing Market." Below is Mr. Brinkmann's oral statement to the committee, as prepared for delivery. "Good morning. I am Emile J. Brinkmann, chief economist of the Mortgage Bankers Association.Read more

The Mortgage Bankers Association (MBA) expects economic growth to continue through the rest of 2009 before slowing in the first half of 2010. Unemployment is expected to climb to 10.2 percent by the middle of 2010 before beginning to moderate as economic growth resumes sustained growth in the second half of the year. Mortgage originations should reach $1.5 trillion in 2010. Modest increases in home sales should drive purchase originations, but refinance originations are expected to decline as mortgage rates rise.Read more

Economic indicators point toward modest economic growth during the third quarter. Analysts will debate whether this marks the start of a fledging recovery, but the consensus view is that the longest, deepest recession since the 1930s has passed. At the national level things are looking better, but at a local level the story is mixed. Examination of state-level economic data reveals regional differences in economic performance, with some states likely to recover more quickly, and some slower, than the nation as a whole.Read more

Fiserv Inc., a provider of financial services technology solutions, has announced survey results revealing how consumers' financial activities have been impacted by the prolonged recession, and how financial institutions can help them gain a greater sense of control of their finances. Overall, consumers indicated a desire for robust online banking functionality that allows them to closely monitor and manage their finances, combined with proactive alerts and reminders from their financial institution.Read more