Thursday, October 27, 2011

Misc: Fannie/Freddie Investor REO Buying, Pending Home Sales down, Kansas City Manufacturing edges higher

by Bill McBride on 10/27/2011 04:43:00 PM

Just catching up ...

• Last Sunday, I mentioned a rumor that a new program for investors to buy (and rent) foreclosed houses from Fannie and Freddie would be announced soon. Diana Olick at CNBC writes today: Investors Raising Cash to Buy Government Foreclosures

[T]he Obama Administration is pushing a potential [plan] to auction off foreclosed properties in bulk to investors, specifically the quarter of a million properties currently on the books of Fannie Mae, Freddie Mac and the FHA. As demand for single family rental properties rises, so too do potential investor returns.

"There is a hope that we'll be able to do a pilot in the near future, perhaps by the end of 2011 or early 2012. However, there hasn't been any decision on timing yet," according to an administration source.
• From the Kansas City Fed: Growth in Manufacturing Activity Edged Higher
Growth in Tenth District manufacturing activity edged higher in October. Expectations for future activity rebounded after easing somewhat the past few months. ... The month-over-month composite index was 8 in October, up from 6 in September and 3 in August ... the employment index remained unchanged [at 12].
From Freddie Mac:
30-year fixed-rate mortgage (FRM) averaged 4.10 percent with an average 0.8 point for the week ending October 27, 2011, down from last week when it averaged 4.11 percent. Last year at this time, the 30-year FRM averaged 4.23 percent.
• From NAR: September Pending Home Sales Down, Still Higher Than a Year Ago
The Pending Home Sales Index ... fell 4.6 percent to 84.5 in September from 88.6 in August but is 6.4 percent higher than September 2010 when it stood at 79.4.
S&P 500• This graph (click on graph for larger image) from Doug Short shows the recent market increase.

Earlier on GDP:
GDP slightly above pre-recession peak, Investment Contributions
Advance Estimate: Real Annualized GDP Grew at 2.5% in Q3
GDP Graphs