House prices are still too high and the inventory of unsold homes too large to believe that the housing correction is over, according to Federal Reserve Governor Donald Kohn.Mr. Kohn told the Atlanta Rotary Club that house prices are "still high relative to rents and interest rates," even though price rises have decelerated nationally and prices have fallen in some markets. While there are tentative signs that housing demand is leveling off, "housing activity may not yet have found a floor, given the sizable overhang of unsold houses," the Fed governor said. He also warned that a possible stabilization in the housing market might not be "immune" from a rise in long-term interest rates. Mr. Kohn commented in this speech that the Fed continues to be concerned about inflationary pressures -- signaling that the markets should not anticipate a cut in the target federal funds rate (the interest rate banks charge each other for overnight loans) anytime soon.
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Government officials confirmed the California Democrat is under scrutiny over a long-held Maryland property he designated as a second home in 2020.
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Credit availability declined in June as the job market and rising delinquency figures have some lenders concerned, the leading mortgage trade group said.
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The Ocean State is the latest to enact rules prohibiting the agreements that end up tying older homeowners to long-term contracts with real estate brokers.
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CEO Robin Vince refused to comment on "rumors or speculation" about a potential merger between the custody banking giant and its smaller rival, Northern Trust. He also said that the bar for BNY to engage in M&A is "very high."
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House Financial Services Committee Chairman French Hill promised to begin combing through Dodd-Frank to find areas for deregulation, while the panel's ranking member made it clear that Democrats would fight for the Consumer Financial Protection Bureau.
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Gain on sale at JPMorgan Chase fell by 5 basis points in the second quarter, which could be a slightly adverse sign for mortgage banker results, KBW said.
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