Affordability Runs High. Interest rates may have soared the last two months, but it didn't deter home buyers much. Those consumers found the most buyer-friendly market since 1973, according to the National Association of Realtors housing affordability index released May 10. The index, which measures affordability factors for all home buyers, was 140.9 in the first quarter of 1994, compared to 132.5 during the same period a year ago. When an index measures 100, a family earning the median income has exactly the amount needed to purchase a median-priced resale home, using conventional financing and 20% down payment. Despite a slight dip in the affordability index for January, February and March, compared to the previous quarter, NAR said affordability has not been as consistently favorable since early 1973. NAR's first-time home buyer's index shows that the qualifying income needed for conventional financing covering 90% of a $91,300 starter home was $26,666. Yet the median income of prime first-time buyers was $24,436, a difference of $2,230.
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The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.
April 18 -
The first-quarter increase involved commercial real estate loans, including some problematic multifamily loans and an office credit, but none of the criticized loans were to consumers, officials at the Dallas company say. Further CRE deterioration is anticipated.
April 18 -
The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.
April 18 -
The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
April 18 -
Charge-offs and nonperforming loans rose at the Georgia bank in the first quarter. But it blamed the problem on one large client and said the matter has been resolved.
April 18 -
Amid healthy first-quarter loan growth and improving credit quality, Discover Financial Services slashed its profits by $800 million to offset remediation costs from a 16-year period when it overcharged certain merchants.
April 18