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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The plan that the Federal Housing Finance Agency floated calls for Freddie Mac to actively invest in some new closed-end seconds as cash-out refinancing subsides.
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The push comes amid what one expert highlighted as lax funding efforts for two Department of Housing and Urban Development grant programs.
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Conventional lending drove volumes higher, particularly in the purchase market, the Mortgage Bankers Association said.
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Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
April 16 -
In a motion to dismiss UWM's suit, Ramon Walker argues the trademark infringement claim made by UWM is a "pretext to muzzle [his] criticism."
April 16 -
The Federal Reserve chair's comments coincide with the spring meeting of the International Monetary Fund and the World Bank Group in Washington. They also come as groups like the Basel Committee on Banking Supervision are being scrutinized.
April 16