New single-family home sales jumped 13% in October to a new monthly record, but there are signs that demand is softening along with prices of newly constructed homes.The U.S. Census Bureau reported that new-home sales rose to a seasonally adjusted annual rate of 1.42 million in October, up from 1.26 million in September. Despite the October sales report, National City Corp. chief economist Richard DeKaser said, "we are seeing a market that is at a turning point." He noted that the median price of new homes is up only 0.9% this year, compared with 18.0% in 2004. "We are seeing price softening, which is not something one typically observes during a period of extraordinarily robust demand," Mr. DeKaser said. He also observed that interest rates may have prompted some prospective homebuyers or "fence-sitters" to sign a sales contract. During October, the 30-year mortgage rate moved above 6% for the first time since March.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
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A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
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The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
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The latest rate increases contributed to a 1% drop in purchases from the previous week and 15% annually, according to the Mortgage Bankers Association.
April 24