In another sign that homebuilders are pulling back, spending on residential construction fell 1.9% in October to $597.1 billion -- marking the seventh consecutive monthly decline, according to the Census Bureau.Construction spending is off 9.4% since October 2005, and builders are dealing with a 558,000 inventory of unsold homes, which represents a seven-month supply. In addition, the inventory of existing homes rose to 3.8 million in October, which is a 7.4-month supply at the current sales pace. The National Association of Home Builders has voiced concern that the large inventory of homes will make it harder for builders to sell their inventory. These concerns are heightened by a 30% jump in the number of vacant homes on the market over the four quarters ended Sept. 30. The number of vacant homes for sale totaled 1.9 million in the third quarter. "Normally, one third of existing homes are vacant, but now it is closer to half," said NAHB economist Michael Carliner. He said he suspects that a lot of these vacant homes were rentals or second homes that owners now want to sell to pocket gains or cut their losses.
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The Community Home Lenders of America and the Community Associations Institute want the FHA to insure loans on condos approved by Fannie Mae and Freddie Mac.
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The Federal Open Market Committee's decision to reduce interest rates for the first time in nine months lifted bank stocks Wednesday. The 25-basis-point reduction could lead to net interest income headwinds now, but loan growth later, analysts said.
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Most lenders said they had already priced in the widely-anticipated decision to cut short-term rates for 30-year home loans but other products will benefit.
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The deal for the Class A office building owner will be funded from Rithm's cash as well as liquidity on the balance sheets, plus possible co-investors.
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Mortgage applications saw a significant jump for the second consecutive week, as homeowners took advantage of plummeting rates, the MBA said.
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The government-sponsored enterprise is making changes to mortgage-backed securities and servicing disclosure files to support use of the advanced credit score.
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