Tag: market predictions
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Bitcoins, Babies and Bernanke: What’s Next for Digital Money?
The Bitcoin has only been around for four years. Although it’s still in its infancy, the digital currency created by an anonymous hacker has changed the way we think about money and how it’s used. Bitcoin stock has traded high and fallen low, and the network of goods and services that can be purchased with…
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Can Online Home Buying Boost the Recovery?
Time was, buying a house was a straightforward process, largely controlled by real estate professionals who had the listings and banks who had the say-so over financing. But the Internet has changed all that. Last year, over two thirds of home buyers in the annual Home Buyer Survey said they’d used social media in the…
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Today’s Rates and the Down Payment Debate
Is conventional wisdom crippling the housing recovery? It’s almost a given that a homebuyer can expect to produce a down payment of at least 20 percent in order to secure a mortgage. And the more a buyer can put down, the more they can save over the term of the loan. But given the unique…
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The Fed’s Securities Buyup Ends: Why It Matters
The Federal Reserve has stopped playing coy about plans for its program to stimulate the economy by buying up massive amounts of mortgage-backed securities. After months of maybe yes maybe no, the Fed has finally announced an end to the plan by mid-2012. While that announcement shouldn’t have come as a complete surprise, the news…
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5 Red Flags That Your Lender is Lying
The mortgage industry has undergone intense scrutiny since the spate of risky loans that triggered the housing collapse of 2008. But in spite of lawsuit after lawsuit and numerous consumer protection regulations, the nation’s big lenders continue to ply their fraudulent practices on applicants for mortgages and refinancing. Now, the latest suit against Bank of…
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Cash Buyers Win in a Hot Housing Market
After several years in the doldrums, the housing market is heating up, according to industry watchers. Rising prices, a tight inventory and interest rates that remain relatively low continue to entice buyers. And as those buyers vie for the available homes, one thing creates a clear advantage: the ability to pay cash. Recent data crunched…
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The Making of a Bubble: Cycles of Boom and Bust
Worries of yet another “bubble” about to burst appear in financial news on a regular basis. After the term went mainstream a few years ago in connection with the rum-up to the historic housing crash, it continues to float up whenever there’s a surge of activity in one sector or another. Amid talk of a…
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Sallie Mae Splits for More of the Student Loan Market
Sallie Mae's splitting. In a move reminiscent of the evolution of federal mortgage entities Fannie Mae and Freddie Mac, the venerable student loan company SLM Corp is now taking aim at the lucrative private loan market. It's a move that echoes the mortgage lending spree that fueled the 2008 housing collapse and bolsters the concerns…
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The QM Rule: Coming Soon to a Lender Near You
A busy housing market and encouraging stats on employment offer some optimistic news about the economy. But even with a rosier financial outlook, tighter lending standards are keeping many borrowers from qualifying for mortgages and other loans. And those standards will tighten even more come January 2014, when the new Qualified Mortgage Rule takes effect.…
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What’s Behind the Lending Slowdown?
Interest rates are still low, the housing market is rebounding, and employment stats are better – so why are loan approval rates down and fewer applications being processed? Financial experts point to a combination of factors stemming from the freewheeling days of the pre-crash housing market and the lawsuits and legislation that followed. As more…