From A Slow Crawl…To a Brisk Walk

I heard someone earlier this week say that the housing market has gone from a slow crawl to a brisk walk.  I think that is the perfect metaphor to explain the recent changes in the real estate market.  The market is coming back.  It’s not roaring, but it’s coming back.

This week, according to Reuters.com, U.S. mortgage applications jumped as record low interest rates spurred a surge in demand for home refinancing loans.  The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2 percent to 1,159.4 for the week ended March 20.  Refinancing accounted for 78.5 percent of all applications.

Furthermore, interest rates on mortgages fell after the Federal Reserve last week said it would buy Treasury securities for the first time in more than four decades as well as more than double its planned purchases of mortgage-related securities.  Reuters.com reported that “Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.63 percent, down 0.26 percentage point from the previous week, reaching a record low….Interest rates were well below year-ago levels of 5.74 percent.”

Meanwhile, according to Realty Times, housing starts took a surprise jump of 22 percent in February over January’s depressed levels. Most of the increase was attributable to apartments and condominiums, but single family starts were up by one percentage point, and new home permits were up by 11 percent, after months of sharp declines.

Existing home sales are also seeing some good trends.  NAR reported this week that sales activity for single family, townhomes, condominiums and co-ops rose 5.1 percent to a seasonally adjusted annual rate of 4.72 million units in February from a pace of 4.49 million units in January.

The West is leading much of the nation’s recovery, with California leading the charge.  Our median listing price is beginning to rise for the first time in three years.  Existing home sales in the West increased 2.6 percent to an annual rate of 1.2 million in February and remain 30.4 percent higher than a year ago.

Last week I recommended that you watch Coldwell Banker president and CEO, Jim Gillespie on CNBC’s “Roadmap to Rebound” which focused on the state of the housing market.  If you missed it, Gillespie stated that “the government could do a lot more than they are already doing in order to get the real estate market moving again.” Congressmen and economists continually say that in order to get the economy going, we need to first get real estate going. Gillespie believes that two key changes are needed in order to get the economy moving, and the first item that needs to be addressed is to set a fixed-rate mortgage. “Lowering the interest rate to 4% to 4.5% for 12 months is one way to get the inventory moving.” Along with setting a fixed-rate mortgage, increasing the tax credit to $15,000 and including all buyers of primary residences will help move buyers along and get the market to shift.

Gillespie also stated that the demand side needs to be looked at closely, because once we start to burn off the inventory that we currently have, prices will begin to stabilize and go up again, which will help those in distressed situations. “Fifty-five percent of loan modifications have failed after six months because jobs are not being created and homeowners are losing the jobs they have,” says Gillespie. “In order to create jobs, we need to create demand, both of which will get the housing market and economy moving.”

I for one appreciate seeing our leadership team speaking out on our behalf, serving as the visionaries for our industry.  It’s enlightening and certainly makes me proud.

Now, let’s take a look at this week in real estate:

• East Bay—Berkeley reports we are busy selling every day.  There appears to be more optimism amongst the Agents, but still some trepidation from buyers.  Eight of our most recent sales had 2-5 offers, though, so buyers are beginning to buy. Buyers are being a little less demanding if they are in contract on a house they really want.  Still tough to get sellers to price right or lower a list price.  Danville notes that inventory and new pending sales have remained flat the past couple of weeks.  The high-end in Blackhawk and Alamo is very slow.  On the other hand, a condo in San Ramon priced at $200,000 got 17 offers.  Fremont reports that listings are starting to pick up.  Sales are somewhat slower than last week, but still, they are selling.  People are looking for a great deal! They continue to watch and wait.  Because of the moratorium, the REOs are still slow at this time.  Oakland reports that our sales inventory is increasing because deals are taking longer to close.  The prime issues are short sale approval, REO approval and now appraisals are starting to ask for conditions that were ignored in the past as well as numbers are coming in below the sales price.  New sales for the month are coming in slower than they did in February.  Orinda reports steady market in the Lamorinda area.  Lots of new listings, not so many sales, but we are hanging in there and keeping our eyes on the prize!  The market will pick up soon; we have faith and are staying very positive and supporting one another.
• Monterey County—Though last week was a rather slow one for new escrows, activity at open houses and writing offers seem to be picking up. Also over the past three weeks, we’ve had price reductions on about 40 listings as sellers become more resigned to the current buyer’s market.
• North Bay—Greenbrae reports that open houses were well attended this weekend.  Despite more homes going into contract, negotiations are tough and more complex.  Short sales are creating some new issues for Agents as they try to work with the banks to make deals happen and we’re starting to see more of them in the high-end of the market.  Well presented homes in the $1 million range in Corte Madera, Greenbrae and San Anselmo seem to be gaining interest.  Three of our Greenbrae listings just over $1 million experienced significant price reductions and went into contract.  A Fairfax listing hit the price reduction point and garnered four offers—with the victorious offer from our office!  Southern Marin notes that we are seeing a number of new listings coming on and sales are starting to trickle in.  There seems to be more consumer confidence that is at least getting buyers to be a bit more serious and now they are even writing up some offers.  The $2-3 million price range is still extremely sluggish.  Petaluma reports that open houses are generating double digit attendees with one property on the west side having 40 groups.  We are still seeing multiple offers and Agents are picking up buyers.  Floor time has been productive with unattached buyers calling in on properties.
• Peninsula—The Half Moon Bay office reports the coast is slow, especially over the $1 million price point. Sales activity has increased with the REOs and short sales.  The Menlo Park El Camino office reports a sterling week in sales—all over the map sales.  From $800,000 to $5.9 million and multiple offers to boot.  We are hoping this is not a blip on the screen but as the song says, “The start of something big.”  Open houses were buzzing many turn into a roar!  The Menlo Park Santa Cruz Avenue office concurs noting there was a jolt of life in our market last week.  Energy seems to be building.  We saw sales in the $230,000 to $5.9 million.  Good interest rates and well priced inventory seems to be the ticket.  One REO listing in San Mateo had 10 offers.  Palo Alto notes the luxury market is extremely slow but activity between $1 million and $2 million has picked up.  If well priced, properties will sell and some times with multiple offers—although not typically over list price.  Inventory is building.  Woodside reports sales all over the map—from $500,000 to $3.5 million.  Sales over $3 million are running 15-25% off their pre September prices.
• San Francisco—Our Lombard office reports good traffic but only a trickling in of transactions.  Fallouts returned this week, one each for cold feet, financing and a short sale appraisal.  REOs yielding multiple offers in 1-2 days.  Private sellers could learn some pricing lessons from Asset Managers.  Our Market Street office reports a single-family with unit in the Eureka Valley-Dolores Heights are garnered three offers in only 13 days at a list price of $1.695 million.  A 4-unit building on the market for six days received five offers.  It was listed for $1.050 million and was close to USF.  There is a lot of optimism at open houses this weekend with buyers getting back into the market due to low rates.
• Santa Cruz County—In the past five months the overall inventory level in the county has dropped by about 30% and the number of pendings have gone up about 10% overall.  There seems to be an uptick in activity this week with some positive news from the media and the stock market.  Open houses have been very well attended in most areas and new listings are attracting a lot of attention from buyers. 
• Silicon Valley—Our Cupertino De Anza office reports that things are picking up and nearby Cupertino Stevens Creek concurs noting that we’re seeing increased open house activity.  Los Gatos notes that more buyers are coming into the market, with more confidence.  Our San Jose Almaden office reports some interesting trends.  The days of inventory in Almaden is just a little less than three years.  High end properties are not moving.  Blossom Valley and Santa Teresa however are above 40% pending. 25% of that inventory is traditional sellers while the rest are distressed sales.  Almaden has about 15% pending.  Cambrian seems to be the healthiest with 28% pending and fewer distressed properties.  Prices have held better there, too.  I would say that Almaden has dropped nearly 25% in the last year.  Blossom Valley around 30% and Cambrian closer to 20%.  Our San Jose Main office notes that buyer interest continues to be brisk.  Sales of homes in the $250K-600K range are on the rise.  Weekend open house traffic was excellent in all price ranges.  Lower interest rates are helping to influence sales.
• South County—Our Gilroy office notes that we had 20 multiple offer situations.  Agents are suddenly experiencing a similar situation as they did in the peak of the market:  low inventory and not being able to get buyers a home due to multiple offers.  Hollister notes that REO inventory decreased this week.  Short sale listings increased. 

After a week of positive indicators, my best advice is for buyers to get out there.  There are some fantastic deals out there right now and as more people begin to realize it, competition will come back and begin to drive activity.  You know what they say about the early bird!

I am headed away for vacation and will be gone through April 7.  During this time, we’ll take a brief hiatus from Weekly Market Watch but will return the following week with a robust edition.

Rick Turley
President

Foster Weeks publishes a weekly mortgage report which is updated every Monday morning. How is this affecting the San Francisco real estate market? Read our weekly and monthly market reports. Here’s what Mr. Weeks says about last week’s activity:

“IT REQUIRES A GREAT DEAL OF BOLDNESS AND A GREAT DEAL OF CAUTION TO MAKE A GREAT FORTUNE.” Ralph Waldo Emerson. And last week’s headlines contained a mix of items to inspire both boldness and caution.

Friday’s news showed that consumers are being understandably cautious with their finances, as the Personal Savings rate remained above 4% once again in February and among the highest savings levels seen in a decade. The last five years can be seen in the chart. And notice it wasn’t that long ago that the US had a negative savings rate – that’s right, as a nation, we regularly spent more than we made.

Meanwhile, the government continues to make bold moves to help our economy. On Monday, Treasury Secretary Geithner unveiled a plan to remove toxic assets from financial institutions by using money from the $700 Billion TARP fund. The government will help mitigate the risk by offering private investors Billions of dollars in low-interest loans to help finance the purchases. Indeed, it’s a bold strategy – let’s see if it pays off!

And…there’s room for cautious optimism on the economy, as good news was noted on several fronts last week. The housing market received good news when both Existing Home Sales and New Home Sales came in stronger than expected. Additionally, Durable Goods Orders for February came in better than expected, showing the first increase in six months, and the Core Personal Consumption Expenditure Index (Core PCE) showed inflation is presently at tolerable levels. Plus, the US Dollar received a boost when China said it will continue to purchase US Treasuries.

Bonds were jostled around mid-week, but home loan rates ultimately ended the week very close to where they began…near historic lows. Give me a call or email me if you want to discuss whether now may be the perfect time for you to add a bit to your own fortune through a smart purchase or refi.

WHEN IT COMES TO YOUR HOMEOWNER’S INSURANCE, GETTING THE MOST VALUE FOR YOUR MONEY IS ALWAYS A WISE CHOICE. CHECK OUT THIS WEEK’S SPECIAL MORTGAGE MARKET VIDEO VIEW FOR SOME IMPORTANT TIPS.

Read the entire report here.

SFResidence is part of the TRI Coldwell Banker office at 1699 Van Ness in San Francisco which is one of the premier offices in the City and has the market share numbers to prove it. We have some of the top agents selling real estate in the San Francisco Bay Area. As a result, our office posts some impressive numbers.

Chug, chug, chug. The market just keeps moving along. Interest rates continue to be low and first time home buyers are finding deals out there as prices come down. So volume is up even though prices are down. As is the case with the market, lower prices increase activity.

Here are the numbers for the week of 3/25/09:

• 5 new listings (average price $1,597,600, low $619,000, high $2,575,000)
• 7 ratified sales (pending) (average price $2,069,143, low $359,000, high $7,500,000)
• 3 closed sales (average price $1,026,167, low $303,500, high $2,200,000)
• 1 reduced $1,595,000

- Janis Stone

Read what Rick Turley, President of Coldwell Banker, San Francisco/Peninsula says in his latest weekly report:

It Was a Week of Surprises…And Best of All, Spring Has Sprung!

First, CNNMoney.com reported a sudden, unexpected surge in U.S. housing starts. According to the Commerce Department, housing starts rose to a seasonally adjusted annual rate of 583,000 last month, up 22% from a revised 477,000 in January. The big surprise: Economists were expecting starts to decline to 450,000, according to consensus estimates by Briefing.com.

Furthermore, applications for building permits, considered a reliable sign of future construction activity, rose 3% to a seasonally adjusted annual rate of 547,000 last month. The other big surprise: Economists were expecting permits to fall to 500,000.

Also interesting this week, retail sales figures fell much less than expected in February, and surprisingly strong January sales were revised even higher. According to CNNMoney.com, “U.S. store sales showed a smaller-than-expected decline in February after an unexpected surge in January that was bigger than originally reported…The Commerce Department said total retail sales fell 0.1% last month, compared with January’s revised increase of 1.8%. Economists surveyed by Briefing.com had been expecting a decrease of 0.5% for February.”

So, is it safe to call this a trend? Are we out of the woods yet? It’s tough to say. In all honesty, you don’t know whether or not you’ve hit bottom until you’re on your way back up but it seems some of the critical signs are starting to show signs of life which is welcome relief for our wounded economy.

Also in the news this week, the Federal Reserve announced plans to purchase up to $750 billion in mortgage-backed securities and up to $300 billion in longer term Treasury securities. Our representatives at the National Association of Realtors applauded the plans noting “This is great news for American home buyers and homeowners because mortgage interest rates will continue at historic lows.”

What this means for Americans is that a greater number of home buyers will be able to purchase a home and some homeowners facing challenges will be able to refinance into better terms. As NAR noted, “We already are experiencing a great improvement in housing affordability due to historically low interest rates and the Fed’s move will push affordability conditions to the best levels in 40 years. In addition, continued low rates will lessen foreclosure pressure and help stabilize home prices sooner, as more Americans buy homes and draw down inventory.”

Along the lines of mortgage relief, the Treasury Department this week launched a new website for consumers seeking information about the Obama Administration’s Making Home Affordable loan modification and refinancing program. The site, www.MakingHomeAffordable.gov, offers features including interactive self-assessment tools that will empower borrowers to determine if they are eligible to participate and calculate the monthly mortgage payment reductions they could stand to realize under the Making Home Affordable program. This is a helpful site that we should all be sharing with our friends, families and clients alike.

Finally, on Friday, Jim Gillespie, president and CEO of Coldwell Banker Real Estate LLC, participated in a discussion about the state of the housing market, live from the New York Stock Exchange on CNBC, on the “Roadmap to Rebound” segment hosted by Maria Bartiromo. Yale economist Dr. Robert Schiller and Sanjiy Das, CEO of CitiMortgage, also participated. I am proud of Coldwell Banker and really pleased with Jim’s part of the discussion –sticking to the facts of what is still needed to make a significant difference for the housing recovery. Jim calls upon government leaders to enact a $15,000 non-refundable tax credit to ALL buyers and also a mortgage buy down that would bring rates to the 4-4.5% range. This, NAR reports, could generate an additional 840,000 home sales over 12 months. This home buying activity would have major implications in stimulating the overall US economy since NAR also reports that each home sold generates more than $60,000 in economic activity. The proposal would also have a greater impact on foreclosures than the current stimulus package. Take a look: http://www.cnbc.com/id/15840232?play=1&video=1067527935

Now, with all of that exciting news for the week in tow, let’s take a look at our local real estate news:

• East Bay—The Berkeley office reports a steady stream of buyers at our open houses. We sold three houses in one day. Some “seasoned” listings are finally pending. The mood seems better than just a few months ago. Castro Valley reports new listings are being shown and open house attendance has been great for open houses of new listings. We are starving for fresh inventory. Prices are holding steady in our market, seemingly stabilizing. The Fremont office reports that the market appears to be on an upswing due to the decrease of REO listing inventory. Buyers are attempting to take advantage of the low interest rates and appear more competitive in regards to the well priced homes. Livermore reports our office had four pending sales this week. All were multiple offers and three of the four pending sales were at prices that we have not seen in a long time ($145,000, $150,000 and $250,000). The other sale in San Ramon was at $453,000. Oakland reports that several deals in the upper end have fallen out mostly due to financing issues. So far this month is not starting off as busy as last month, but Agents are working and open houses command lots of groups.
• Monterey—We are seeing steady sales activity and listing inventory. We had three multiple offer situations this week—two of which were REOs.
• North Bay—Our San Rafael office is reporting that REO listings have dropped off dramatically due to the moratorium. Short sale offers are being approved faster and entry level homes and condos are being sold with multiple offers driving the prices up. With interest rates so low and the $8,000 tax credit, we are seeing many first time home buyers writing offers. Our Southern Marin offices report seven new listings came on in the Mill Valley market between $2 and $3 million. There are currently 22 listings in that range with only one pending in Mill Valley. There are approximately 55 listings in Tiburon/Belvedere listed at over $2 million with very few sales. The high end in Marin is experiencing far greater supply than demand. In Sonoma County, our Petaluma office reports that inventory is shrinking. Rohnert Park currently has 75 properties for sale (50 REO or short sale) and 112 in escrow. Petaluma has 50% of all sales are REO. Short sales are slowing closing. We’re seeing lots of approvals but only six have closed. Sharp, well-priced homes are moving. Open houses are well attended. Sebastopol concurs noting there is a lot of activity at open houses. We’re seeing multiple offers on REOs and short sales. New REO listings appear to have dropped off across all companies.
• Peninsula—Our Burlingame office reports that open house attendance has really picked up this week with surprisingly strong showings in town homes and condos. The interesting thing is that buyers believe that they should be able to buy these condos for $200,000 under asking, which would bring our condo market into the $500,000 range. Surely this is the pressure from the price reductions on single family homes. Menlo Park El Camino reports that things remain a waiting game. Some buyers just can’t budge. Some make offers and if they get a counter, they walk away. They feel that they are totally in the driver’s seat. Redwood City/San Carlos reports open houses were extremely well attended this weekend. Two of our opens had at least 40 people through. We’re getting much more positive vibes from buyers.
• San Francisco—Our Lombard office reports a better week in transactions, no fall-outs and sort of a breakthrough in price point: a sizeable commercial deal plus three homes over $2 million went into escrow. Our Market Street office reports that activity was good at open houses this weekend. Offers are being written, even if they are low, hoping to start the discussion and bring the parties to a mutually acceptable price and in most cases, this is working. Van Ness reports that listings are coming in faster than in the last two weeks but sales (closings) are a bit slower. It appears that within the last few days, things seem to be picking up.
• Santa Cruz—The median price dipped to $380,000 (single family) in February vs. $682,500 a year ago. Listing inventory is about the same as 2008, just at 1000 in the county, with 92 closed sales in February. A total of 11.4 months represents the unsold inventory index for SFR which is down from 16.6 months a year ago. The Agents are also having some challenges with appraisals coming in at value, lenders wanting to review appraisals and the entire process taking much longer.
• Silicon Valley—Our Cupertino De Anza office reports that activity seems to be picking up. Our Cupertino Stevens Creek concurs noting that we are getting great listings and are still helping buyers. The Los Altos office reports that the market is picking up and new listings are coming in and some are turning into sales. Our Los Gatos office reports that buyers continue to look for deals. Open houses are filled with lots of buyers. Many are still hesitant. There is not much movement in the high end. Our San Jose Almaden office reports that short sales are being approved but because of the time it takes to have them approved, buyers are backing out. Confidence is evident in investors who are paying cash for REOs with multiple offers. Higher price points remain slow while lower price points remain brisk. Blossom Valley has nearly 40% of its inventory pending while Almaden only has 15%. The San Jose Willow Glen office reports little change from last week. Open houses are quite busy and the floor calls are coming in, though they have slowed up a bit. Sellers are not getting what they want for their homes and the buyers are smart enough to know that they are in the driver’s seat.
• South County—Our Gilroy office is reporting there is a lack of inventory in the entry level/investor market. These properties are receiving multiple offers and selling for slightly over list price. We are seeing appraisal issues that may arise if an accepted offer is too high. The next price tier is beginning to also see more interest and some multiple offers. Open house traffic is excellent. Buyers are out there. The Hollister office reports that open house activity is up. Short sale listings are continually rising. First time home buyers are taking advantage of the new $8,000 tax credit. Our Morgan Hill office also has great news to report. The word on the street is “optimism.” Clients and Agents alike want to believe that the worst is behind all of us. Sales are up and inventory in South County is declining. Again, if a property is perceived to be a good value, it is selling quickly. REOs and short sales dominate the market—but most will agree that any sale is a good thing.

With spring break on the horizon and the warmer, spring weather in the air, look for the first of the garage sales as well as lots of great homes holding open houses! For a schedule of open houses, go to www.OpenHouse.com or www.CaliforniaMoves.com. Spring has sprung!

Rick Turley
President

Foster Weeks publishes a weekly mortgage report which is updated every Monday morning. How is this affecting the San Francisco real estate market? Read our weekly and monthly market reports. Here’s what Mr. Weeks says about last week’s activity:

“IF A WINDOW OF OPPORTUNITY APPEARS, DON’T PULL DOWN THE SHADE.” Tom Peters. And last week, the Fed saw their regularly scheduled meeting as a window of opportunity to make a blockbuster announcement.

On Wednesday, the Fed announced that over the course of 2009, they will purchase an additional $750 Billion of Mortgage Backed Securities, as well as $300 Billion in long-term Treasuries, primarily to help shore up the housing market and keep home loan rates low. On the announcement, Bonds exploded higher, leaving Bond prices within whiskers of the best levels ever.

However, it’s important to understand that while their actions may keep a lid on rates moving higher, they may not cause them to move dramatically lower… more on this in the Mortgage Market View article below. Additionally, due to many understaffed lenders and investors currently working at maximum capacity, we could once again see that improvements in Bond pricing may not all be passed through to our rate sheets.

Another factor that could impact whether Bonds and rates see significant improvement ahead are concerns of future inflation – the arch enemy of Bonds and home loan rates – brought on by all the recent aggressive moves by the Fed. While we know there is little inflation at the present time, the chatter of future inflation could have a negative impact on Bonds and home loan rates, or at least stifle any improvements.

Although the media is already spinning it differently, this is not a time to stay on the fence, hoping and waiting for lower rates. Home loan rates remain within inches of all-time historic lows, but may not necessarily move significantly lower based on this purchasing plan – waiting is a very risky move.

More good news last week, as Housing Starts for February came in better than expected and actually increased for the first time in eight months. In addition, Fed Chairman Bernanke stated the recession should end in 2009 and that he is confident of the long-term outlook for the US economy.

Also, an update on Mark-to-Market – the accounting rule which has had a devastating impact on the financial markets – which we have discussed many times, including in last week’s issue. The Financial Accounting Standards Board (FASB) agreed that it will propose to allow companies to use more “leeway” in applying the accounting rules they use to value their assets, and planned a final vote for April 2nd. If this rule change is approved, it could result in better first-quarter financial statements for companies that have been affected by this rule. Stocks have been moving higher lately in the hopes that Mark-to-Market will be fixed, and a resolution could help Stocks further improve.

WANT TO KNOW MORE ABOUT WHAT THE FED’S ACTIONS REALLY MEAN FOR HOME LOAN RATES, AND WHAT OPPORTUNITIES MAY BE AVAILABLE FOR YOU? CHECK OUT THE MARKET VIEW BELOW FOR THE DETAILS.

Read the entire article here.

SFResidence is part of the TRI Coldwell Banker office at 1699 Van Ness in San Francisco which is one of the premier offices in the City and has the market share numbers to prove it. We have some of the top agents selling real estate in the San Francisco Bay Area. As a result, our office posts some impressive numbers.

For the first time in a long time, there were NO solds during the previous week, however there are about 25-30 pending sales that will close by the end of the month so expect next week’s numbers to reflect that. Other than that, what can I say? People still have money to buy homes, and people with that money still want to live in San Francisco. Though we are not seeing many over asking price offers, even in multiple offer situations, there is a steady string of sales that makes me confident that this market will turn around sooner if not later.

Here are the numbers for the week of 3/18/09:

• 5 new listings (average price $834,800, low $630,000, high $900,000)
• 8 ratified sales (pending) (average price $1,815,875, low $449,000, high $7,750,000)
• 0 closed sales

- Janis Stone

Foster Weeks publishes a weekly mortgage report which is updated every Monday morning. How is this affecting the San Francisco real estate market? Read our weekly and monthly market reports. Here’s what Mr. Weeks says about last week’s activity:

“I DO NOT THINK MUCH OF A MAN WHO IS NOT WISER TODAY THAN HE WAS YESTERDAY.” Abraham Lincoln. Now more than ever, it’s important for our country’s leaders to heed yesterday’s lessons and make wise choices today for our banking system and the economy. There were several key developments that happened on this front last week – here are some highlights.

On Thursday, the Securities and Exchange Commission’s (SEC) Chief Accountant, the Financial Accounting Standards Board’s (FASB) Chairman and the Deputy Comptroller for Regulatory Policy in the Treasury Department testified in front of the House Financial Services committee on the “Mark-to-Market” accounting rule. This rule was created so that there would be more transparency in business dealings, but fell prey to the law of “unintended consequences”, and has played a major part in our current financial crisis. If you’ve been receiving this newsletter for awhile, you know this has been discussed several times – and we’ve even sent you a great explanatory video that breaks down what it all means, and why it has been such a major issue.

Because so many of you have been asking about this topic and great video – I am including the information and video once again in this week’s issue – keep reading for the full scoop in the Mortgage Market View article below.

During Thursday’s hearing, Congress demanded an answer for repairing this situation within the next three weeks, so right now, it looks like we will see some sort of coordinated action by both the FASB and the SEC to address the Mark-to-Market situation soon. Stocks certainly reacted positively to this news last week, as well as to Citigroup’s announcement that it will not need more TARP money from the government. Stocks also liked the remarks from Federal Reserve Chairman Bernanke that the recession would be over by year-end if the banking situation is stabilized, and that major financial institutions would not be allowed to fail.

Read the entire article here.