Salient to Investors: 48 of 49 economists predict the FOMC will buy Treasuries to increase its program to buy $40 billion in mortgage bonds each month, and expect the Fed to wait until its March 19-20 meeting before adopting thresholds on unemployment and inflation.The median economist expects Fed purchases at least through Q1 2014. Economists expect a
READ MORE... →Salient to Investors: John Paulson at Paulson & Co. said he has reduced bets that the EU sovereign-debt crisis would worsen following ECB comments in July that it was committed to preserving the euro. Paulson said the recovery in housing is a bright spot in the U.S. economy. Read the full article at http://www.bloomberg.com/news/2012-12-04/paulson-said-to-blame-bet-against-europe-for-most-of-loss.html
READ MORE... →Salient to Investors: Housing doesn’t change the trajectory of the economy because it has contributed only 2.5% of US GDP after before the recession. Before the recession housing peaked around 6% and the average is in between. Watch the video at http://www.bloomberg.com/video/does-the-housing-sector-really-help-grow-gdp-NnDP7KDpRC60tTIrJlj7_w.html
READ MORE... →Salient to Investors: Home prices rose in the year ended in September by the most since July 2010 and in Q3 2012 by the most since Q2 2010. 18 of the 20 cities in the S&P/Case-Shiller Index showed a year-over-year gains, led by Phoenix. New York and Chicago posted the two decreases in
READ MORE... →Salient to Investors: Purchases of existing houses in October exceeded the median economic forecast, property values rose over the past 12 months by the most in seven years, and inventories dropped to the lowest level in almost a decade. Ward McCarthy at Jefferies said housing is cheap, borrowing is cheap, and it’s a
READ MORE... →Salient to Investors: S&P/Case-Shiller said home prices in 20 large metropolitan areas gained 8.8 percent from February through August. The share of all non-agency loans between 30 and 60 days past due rose 0.44 percentage point to 3.54 percent, the highest since February 2010. JP Morgan said: A record number
READ MORE... →Salient to Investors: Mark Vitner at Wells Fargo Securities said housing will move significantly higher over the next year driven by low mortgage rates, a gradual improvement in the labor market, and very low inventories. The S&P Supercomposite Homebuilding Index is up 70 percent since year-end 2011 versus the 8.1 percent gain for the S&P 500.
READ MORE... →Salient to Investors: Home Depot Q3 profit topped analysts’ estimates. The US housing market is healing, with new-home sales rising to the fastest pace in two years and construction starting at the fastest rate in four years. Americans’ real estate holdings have risen in value for two straight quarters. CoreLogic said over
READ MORE... →Salient to Investors: Mortgage REITs tumbled on the expectation that more homeowners would be able to prepay mortgages and because lower yields on new investments would squeeze earnings and dividends. Vitaliy Liberman at DoubleLine Capital said continuation of policies that started last year are basically assured now. Edward Mills at FBR Capital Markets said housing is a clear winner
READ MORE... →Salient to Investors: A Berkshire Hathaway unit will be the majority owner of a US residential real- estate affiliate network and Berkshire Hathaway Home Services venture with Brookfield Asset Mgmt. Berkshire has been positioning to benefit from US home market recovery by buying a brickmaker, the loan portfolio of Residential Capital LLC at auction,
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