Summary: CNN Money reports that the unemployment rate has fallen yet hiring has slowed. Fortune explains how the jobs report won’t be accurate for the next few months. Reuters shares that U.S. construction spending is showing hopeful signs in a 4 ½ year high. Bloomberg reports that lenders are shrinking in the mortgage business, BofA is said to endure three more legal probes into its’ mortgage-bond sales and China’s real estate bubble is affecting Manhattan. CNBC explains how the JPMorgan deal could affect homebuyers in qualifying for a mortgage. The Motley Fool shares how the online real estate market has become a huge aspect of the business and Fox Business educates on why location is such an important role in real estate.
Unemployment falls but hiring slows
“The unemployment rate fell to its lowest level since November 2008, but the government’s latest jobs report still shows a muddled picture of the economy.”
Why the jobs report has become meaningless
“FORTUNE — Employers added 148,000 to their payrolls in September, about 20% less than economists expected and the third smallest monthly increase in the past year. But the unemployment rate dropped to 7.2%, which is the lowest level in nearly five years. And the number of people actively looking for work was up, meaning people are more optimistic about their prospects for finding work.”
U.S. construction spending approaches 4-1/2 year high
“(Reuters) – U.S. construction spending hit a near 4-1/2 year high in August, boosted by increases in both private and public outlays, a hopeful sign for third-quarter economic growth.”
Shrinking Lenders in Mortgage Hub Cut Into Recovery: Real Estate
“CashCall Inc., a lender run by racehorse aficionado Paul Reddam, is one of the mortgage industry’s biggest office tenants in Orange County, California. It’s about to get smaller.”
BofA Said to Face Three More Probes of Mortgage-Bond Sales
“Bank of America Corp., sued by U.S. attorneys in August over an $850 million mortgage bond, faces three more Justice Department civil probes over mortgage-backed securities, according to two people with direct knowledge of the situation.”
China’s Real Estate Bubble Hits Manhattan
“Fosun International Ltd., a Chinese conglomerate that invests in everything from steel to pharmaceuticals to Club Med, has agreed to buy the office tower at 1 Chase Manhattan Plaza from JPMorgan Chase & Co. for a whopping $725 million. This isn’t an isolated incident.”
Jumbo loan availability lifts Chicago housing
“In recent years, the inability to access higher-priced mortgages left many Chicago residents – especially those pursuing properties valued above the area’s conforming loan limit – without the option of moving up to newer, larger homes.”
FHA single-family mortgage guarantee program squeezes taxpayers
“The Federal Housing Administration’s single-family mortgage guarantee program moved dramatically from having a net savings to costing taxpayers money as higher-than-expected borrower defaults hit the firm.”
How the JPMorgan deal could curtail credit
“The Justice Department’s potential $13 billion settlement with JPMorgan may go a long way toward appeasing consumers’ anger at big banks for the financial crisis, but it probably won’t help those same consumers get a mortgage. In fact, it may make it harder.”
How to Play the Online Real Estate Market
“The Internet has become the first place to look for real estate. In 2007, more than 80% of home buyers actively used the Internet as part of their research process before buying real estate and before contacting an agent. This proportion keeps increasing, making online real estate a very attractive market. However, competition in this space is very fierce. Most real estate agents and companies have already built their own sites, and invest heavily in online marketing.”
Why Location Matters in Real Estate
“Ask just about any real estate agent to list the three most important things a property should have, and you’ll likely hear: “location, location, location.” That phrase has been in use at least since 1926, according to The New York Times, and is just as relevant now as it was then.”