There has been talk circulating that the Administration is considering the re-authorization of the expired homebuyer tax credit. While I believe this would be taking a step in the wrong direction, I do feel the housing market needs to provide more incentive to buy than record affordability. Economic and political outlooks are too up in the air and buyers are in no rush to sign a sales contract. What the housing market does not need is government officials mentioning that incentives will be implemented “if needed”. Just talking about another homebuyer tax credit could slow sales in the here and now as consumers put off purchase plans in hopes they too will be able to benefit from new stimulus measures. There is no time for dilly-dallying here, the negative feedback loop is already in process. The Administration must either squash the idea of more stimulus, with blunt force, or act quickly to implement new measures so buyers can make informed decisions. Either way….communication is key.

The Federal Reserve is hosting a two day summit on neighborhood stabilization the focuses on the problem of foreclosures and owned real estate and their impact on local communities.

FHFA has released final housing goals for Freddie Mac and Fannie Mae for 2010-2011. The goals establish benchmarks for the Enterprise to purchase mortgages for low-income and very low income families as well as other target groups.

“Refinancing activity picked up again last week, reaching new 15-month highs, as borrowers took advantage of even lower mortgage rates. The drop in mortgage rates was in line with Treasury rates as the latest data continue to show weak economic growth and an exceptionally weak housing market…The sharp decline in MBA’s Purchase Application index in May had provided a clear leading indicator of the drops in new and existing home sales that were reported for June and July. Despite the slight increase in purchase activity in the past week, the continued low level of purchase applications indicates we are unlikely to see an increase in new home sales reported for August or existing home sales reported for September.”

Residential construction spending includes remodeling, additions, and major replacements to owner occupied properties subsequent to completion of original building. It includes construction of additional housing units in existing residential structures, finishing of basements and attics, modernization of kitchens, bathrooms, etc. Also included are improvements outside of residential structures, such as the addition of swimming pools and garages, and replacement of major equipment items such as water heaters, furnaces and central air-conditioners. Maintenance and repair work is not included.

Standard & Poor's Case-Shiller Indices continue to show improvement in home prices, but the rate of increase has slowed and its publisher points to other indicators as "ominous" signals.

In a Sunday news show appearance, HUD Secretary Shaun Donovan said that it was too early to discuss a revival of the homebuyers tax credit even though home sales plummeted as the old credit expired.

The Conservator of Fannie Mae and Freddie Mac has issued its first report on Fannie Mae and Freddie Mac. The data indicates that problems began when the GSEs lost market share but are now on the road to recovery thanks to tighter lending standards are better risk management practices.

While delinquency rates overall showed improvement, the MBA National Delinquency Survey showed a troubling increase in the number of home mortgages that fell one payment behind during the quarter.

Single Family Housing Guaranteed Loan Program Funding Notice