Market Monitor February 11, 2011

1. I s su e 12 , Vo lu me 6 / Fe br u ar y 11, 201 1
Affordability...and “Housing Finance” The Week Ahead -> The “Keys”
Tim McLaughlin - Lots of Housing Data plus Fed Minutes Dissected
First, on affordability, that was the housing tagline from
Date Economic Release Prediction Last
Moody’s earlier this week. Moody’s came out with an analysis
that spoke to the fact that home affordability returned to pre-
bubble levels in a growing number of U.S. markets over the 2/14 Mortgage Delinquencies - -
past year.
2/15 Advance Retail Sales 0.5% 0.6%
Data provided by Moody's Analytics tracks the ratio of 2/15 less Autos 0.6% 0.5%
median home prices to annual household incomes in 74
markets. By that measure, housing affordability at the end of 2/15 Total Net TIC Flows $40.0B $39.0B
September 2010 had returned to or surpassed the average
reached between 1989-2003 in 47 of those markets (64% - 2/15 NAHB Housing Market Index 17 16
most economists believe the housing boom took off in 2003).
2/16 MBA Mortgage Applications - -5.5%
During the boom, lax lending and speculation pushed
2/16 Building Permits 565K 627K
house price inflation far beyond the modest rise in household
income. Nationally, the ratio of home prices to annual
2/16 Building Permits (MoM) -9.9% 16.7%
household income reached a peak of 2.3 in late 2005. But by
last September 2010, it had fallen to 1.6, matching the lowest 2/16 Housing Starts 540K 529K
level in the 35 years the data have been collected and well
below the historical average of 1.9 between 1989 and 2003. 2/16 Housing Starts (MoM) 2.1% -4.3%
"Based on income, this is as affordable as it gets," said 2/16 PPI (MoM) 0.8% 1.1%
Mark Zandi, chief economist at Moody's Analytics. "If you can
get a loan, these are pretty good times to buy." 2/16 ex Food/Energy 0.2% 0.2%
2/16 PPI (YoY) 3.5% 4.0%
=============
2/16 ex Food/Energy 1.2% 1.3%
Regarding “Housing Reform”, the Treasury Department
released its well anticipated “Reforming America’s Mortgage 2/16 FOMC Meeting Minutes - -
Finance Market” report to Congress earlier today. The report
touches on the future of housing finance and outlines three 2/16 CPI (MoM) 0.3% 0.5%
options with various levels of Government support. However,
the final plan will take years to develop, and the outcome will 2/16 ex Food/Energy 0.1% 0.1%
shape the future of the mortgage markets, including liquidity
and home affordability. 2/16 CPI (YoY) 1.6% 1.5%
2/16 ex Food/Energy 0.9% 0.8%
What that means for us? Today, nothing; business as
usual. Our unique business model at Weichert Financial has 2/17 Initial Jobless Claims 402K 383K
and will continue to stand the test of time. Regarding
licensing, regulatory management, invest relations, and client 2/17 Continuing Claims 3898K 3888K
solutions, we can and will continue to deliver the world class
service you have become accustomed to. For many in the 2/17 Leading Indicators 0.2% 1.0%
industry, this creates significant challenges. Within our
business model, we only see opportunity. 2/17 Philly Fed Survey 21.0 19.3
2/17 RPX Composite (28 day) YoY - -2.18%
As always, need help financing that home of your dreams?
Ask us how…we can help!
Mortgage Access Corp. d/b/a Weichert Financial Services, Executive Offices, 225 Littleton Road, Morris Plains, NJ 07950. 1-800-829-CASH. NMLS Company ID:
2731. Licensed by the NJ Dept of Banking and Insurance. Licensed Mortgage Banker with the State Dept of Banking in NY and CT. Licensed by the Pennsylvania
Department of Banking, Mortgage Lender 21042. Licensed Lender in AK, AR, DE, MD, D.C., GA, ME, MI, MN, WI, IA, IL, IN, LA, VT, FL, WV, RI, KY, NC, ID, MS,
NE, WY, OK,TN, WA. Licensed by the Virginia State Corporation Commission, License #ML105. Licensed Mortgage Lender in the Commonwealth of
Massachusetts. License #ML1713, Certificate #43155. Certificate of Authority to transact business in CO, SC. Registered Mortgage Lender in TX. Licensed with
the Financial Institutions Division in New Mexico, License # 01297. Licensed by the Department of Corporations under the California Residential Mortgage Lending
Act. Licensed Mortgage Broker and Lender Ohio. Licensed Loan Broker and Lender Rhode Island. Kansas Licensed Mortgage Company, License #MC.0001229.
Licensed by the New Hampshire Banking Department, License # 8714-MB. Licensed Oregon Mortgage Lender License #ML2528. Weichert Financial Services
arranges loans with third-party providers.