The Average Family Can Now Afford To Own Two Houses

The combination of all time lows in mortgage rates along with the collapse in real estate values has resulted in all time record housing affordability. During the inflation racked 1980’s, interest rate increases by the Federal Reserve resulted in double digit mortgage rates.  High mortgage payments froze most home buyers out of the housing market […]

Housing Market Unlikely To Boost Economic Recovery In 2013

Although the economy grew in the third quarter, data continues to show a “sluggish recovery overall” according to Fannie Mae’s Economic & Strategic Research Group.  Total growth in U.S. gross domestic product since the lows of 2009 has been 7.2% compared with average growth of 16% for previous economic recoveries since the 1960’s. Despite the […]

Bank of America’s Stock Is A “Great Value” and Housing Will Come Back

It is always wise to pay attention to one of the greatest investment minds of all time.  In the most recent letter to shareholders of Berkshire Hathaway, legendary investor Warren Buffet makes the case for a recovery of both the housing market and shares of Bank of America. Warren Buffet has shown time and again […]

Banking News – Daily Banking Update

Welcome to Banking Update, a roundup of articles and news from around the Internet.  Banks continue to be sued for selling defective mortgages, the Fed says a housing recovery is essential for economic recovery, Americans still believe owning a home is part of the “American dream”, banks are still engaged in risky behavior, savings rates […]