Although reduced payment shock for borrowers with resetting ARMs may seem like cause for celebration, Inman News cautions that it may be too soon to break out the champagne as the latest economic letter from the Federal Reserve Bank of San Francisco points out that regional variations in delinquency rates are most commonly the result of declining house prices–regardless of whether the borrowers are prime or subprime and whether the loans are fixed-rate or ARMs. For that story and more, check out Big Builder's bi-weekly blog roundup.
The LIBOR rate jump from 2.7% on April 14 to 2.9% on April 18 affects approximately $9 trillion worth of debt worldwide, which will damage both the residential real estate market as well as the commercial sector, according to Seeking Alpha.
While the announcement of massive layoffs may serve to improve a company's stock, Dr. Housing Bubble reminds us that it is typically bad news for the economy.
Although the Wall Street Journal reported last week that real estate prices were declining on Manhattan's northern edge, numbers released today in the Daily News show a positive pricing trend in the high-end of the market.
While Canada's real estate market has remained strong despite the troubled times seen in the United States, a new report from the Canadian Real Estate Association indicates that a downturn may be on the horizon; BusinessWeek's Hot Property asserts that the average year-over-year home price increase of 5.5% in 1Q2008 is the country's smallest annual jump since 4Q2001.