A look at stories across HousingWire’s weekend desk, with more coverage to come on bigger issues:
Recent news that the nation gained 114,000 jobs in September while the unemployment rate edged down to 7.8% could have the effect of lifting mortgage interest rates ever so slightly, according to an economic report from Residential Finance Corp.
The firm, which tracks economic trends to forecast mortgage market conditions, said the employment report will not impact QE3, but mortgage interest rates over the short-term could increase.
Forget young adults buying homes, they’re too busy defaulting on student debt instead. The two-year national cohort default rate on student loans rose to 9.1%, according to new Department of Education numbers reported by Fitch Ratings.
The good news is when accounting for the amount of education loans that can be put back to the Education Department, the default rate falls to around 6.5%. This means ABS pools from the investor’s perspective remain relatively stable.
The bad news is student debt is tied to the housing crisis. Today, fewer young families can pursue the American Dream with student debts hanging over their heads.
JPMorgan Chase has had a rough few months, with the New York attorney general filing a residential mortgage-backed securities lawsuit against the major bank and a multibillion-dollar trading loss. Now it looks like the bank’s head of risk management is stepping down.
JPM’s Barry Zubrow is retiring at 59, according to Bloomberg News. He served as the chief risk offer from 2007 through January, but has faced the headwinds of a tough year on the risk management front.
The FDIC reported no new bank closings for the week ending Oct. 5.
A few things to be aware of this week. It’s Columbus Day and banks and bond markets are closed on Monday. Some schools and governmental offices also will be closed.
Looking ahead, the Federal Reserve‘s Beige Book is due out on Wednesday. Last month, all 12 Federal Reserve Districts reported home sales, home prices and housing construction increased in July and early August.
kpanchuk@housingwire.com
