HousingWire’s Monday Morning Cup of Coffee takes a look at news from the weekend, with more coverage on bigger issues.
Never shy about voicing his opinion, Richard Fisher, chief executive officer for the Federal Reserve Bank of Dallas, took on big banks in a speech, claiming the giants practice ‘crony capitalism’ and undermine the rule of law in the U.S.
While speaking to the Conservative Political Action Committee, Fisher said, “I will argue that these institutions operate under a privileged status that exacts an unfair tax upon the American people.”
He added that the too-big-to-fail banks create unfair competition and market instability.
“I will argue that the effort crafted by Congress to correct the problems of TBTF—known as the Dodd–Frank Act—is, despite its best intentions, counterproductive and needs to be changed, that it is an example of the triumph of hope over experience,” Fisher asserted in his speech.
Whether or not builders’ confidence grew in the past month is a question that will be answered when the National Association of Homebuilders reveals its latest housing market index on Monday.
In the previous report, the index hovered four points below the 50-index score, keeping it below a level that generally signals a move from a poor building environment to one that is more optimistic. The last report blamed weakness in the homebuilding segment on a shortage of lots and fears over an economy that is adding jobs at a tepid pace.
California, once a hardest hit real estate market, is maintaining strong median home price levels while experiencing declining listings, the California Association of Realtors reported.
“Sales of homes priced above $500,000 continue to be strong, posting nearly 31% higher than a year ago, while homes priced below $300,000 were down 27% from last February due to fewer available homes for sale,” CAR wrote.
The Lone Star State is becoming a type of escape or final destination for mortgage firms, according to the Dallas Morning News. The paper mentions that several firms, including Guild Mortgage Co., are now courting Texas homebuyers. The company recently opened loan offices in Richardson, Texas, as well as Austin.
Apparently opportunities for mortgage growth abound in Texas, according to the report.
No U.S. banks were closed during the week ending March 15, according to the Federal Deposit Insurance Corp.
kpanchuk@housingwire.com
