Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (149582)	9/23/2008 4:45:37 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

Homies are small fry these days. Besides most have been reclassified by the Department of Central Planning as "financials" and we can't short them anyway. If I were Lennar and I reported today, I'd drag out every bad piece of news and every loss I could imagine while no one could do anything to the stock. By October 2nd they'd have forgotten all about it. Shows how totally clueless their management is.......

To: Jim McMannis who wrote (149582)	9/23/2008 5:24:55 PM
From: MulhollandDrive	Read Replies (3) \| Respond to of 306849

Amazing how we don't talk much about hommies anymore. Bigger fish to fry. true... but omigod....lol...read this...c'mon people do your patriotic duty and buy a house today! Home prices fell 5.3 pct in July, gov't says Tuesday September 23, 11:29 am ET By Alan Zibel, AP Business Writer Home prices fell in July, but gov't agency says Fannie, Freddie takeover will help loan market WASHINGTON (AP) -- Nationwide home prices in July fell a record 5.3 percent compared with a year ago, a government agency said Tuesday, and have now receded to October 2005 levels. Prices were down 0.6 percent from June on a seasonally adjusted basis, according to the Federal Housing Finance Agency. The national decline in home values coupled with reckless lending standards during the real estate boom are the driving forces behind rising mortgage defaults and foreclosures.They have spurred a credit crisis that has shaken Wall Street to its core and caused the Bush administration to propose a $700 billion financial industry bailout. The housing agency's director, James Lockhart, suggested Tuesday that mortgage finance companies Fannie Mae and Freddie Mac could loosen lending standards to help more homebuyers qualify for a loan and stabilize the market. The government took control of Fannie and Freddie earlier this month. "I expect any changes to reflect both safe and sound business strategy and attentivess to the (companies') mission," Lockhart said Tuesday in testimony prepared for a Senate Banking Committee hearing. He also said that modifying loans for troubled borrowers should be a "high priority." Over the past year, the companies have tightened requirements and raised fees substantially, making it hard for borrowers with any blemish on their credit reports to qualify for a loan. Lockhart explained the government had little option but to seize control of Fannie Freddie. Both companies, he said, were unable to raise money to gird against losses without aid from the government. Without new money, the only other option was to do stop doing new business and shed assets in a weak market. "That would have been disastrous for the mortgage markets and mortgage rates would have continued to move higher," Lockhart said. But rates are creeping back up. The national average rate on a 30-year, fixed rate mortgage rose to 6.26 percent on Monday up from 6.11 percent on Friday as details of the government's rescue plan remained in flux, according to financial publisher HSH Associates. The rate had fallen as low as 5.87 percent last Tuesday. "The crash of other financial assets has made folks rather uncomfortable," said Keith Gumbinger, a senior vice president with HSH Associates. "It's not about keeping Fannie and Freddie afloat any more." Higher interest rates and falling home prices are also hurting the building industry. Lennar Corp., one of the nation's largest homebuilders, said Tuesday its third-quarter loss narrowed as it cut costs, but revenue fell by more than half amid a prolonged housing slump. The Miami-based company's loss for the quarter ended Aug. 31 was $89 million, or 56 cents a share, compared with a loss of $513.9 million, or $3.25 a share a year ago. Revenue fell 53 percent to $1.11 billion from $2.34 billion. "While we expected the housing market to remain constrained ... the weakness in the market actually accelerated as a result of increased foreclosures, weakened consumer confidence and tightened mortgage lending standards," said Chief Executive Stuart Miller.