May 10, 2007


:Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 6.15 percent with an average 0.5 point for the week ending May 10, 2007, down slightly from last week when it averaged 6.16 percent. Last year at this time, the 30-year FRM averaged 6.58 percent."
Freddie Mac

Gloomy outlook from top U.S. homebuilders

“Twenty months into this housing downturn, we continue to face difficult conditions in most of our markets,” Toll’s chief executive officer, Robert Toll, said in a statement."
Subprime mortgages had helped drive the housing market from 2005 through last year. As the housing market reached a crescendo, home loans became more accessible for people with poor credit.

As defaults rose, lenders started pulling back on the easy money. A survey of bank loan officers by the Federal Reserve showed that the net percentage of banks tightening standards for mortgage loans jumped to 16.4 percent in the first quarter from 1.9 percent at the end of 2006.
According to Celia Chen, director of housing economics at Moody’s, the housing correction is expected to last until the end of 2008, with prices falling by 3.6 percent this year and 2.9 percent next year. The market peaked in mid-2005.


NAR Existing Home Sales by Region

Vs. April

Vs. 2006
US -8.4% -11.3%
Northeast -8.2% -5.1%
Midwest -10.9% -13.7%
South -6.2% -9.7%
West -9.1% -16.7%

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