Real Estate Headlines: Mortgage and Economic Stories Worth Reading for Friday, October 26


Mortgage Meltdown
Countrywide Rises Despite Loss

Countrywide Financial swung to a huge loss during its third-quarter, but investors were just glad that it wasn’t worse . . . Countrywide and other lenders are reeling as borrowers default on their loans at higher rates. The spiking defaults have forced Countrywide to lay off thousands of employees and line up billions of dollars in financing to stay afloat. Forbes

US Economy

Jim Rogers quits dollar after declaring US recession
Jim Rogers, the veteran investor who predicted the 1999 commodities rally, declared that the US economy was “in recession” as he said he would take flight from the dollar and switch his investments into currencies including the Chinese yuan. Mr Rogers, who ranks among the world’s best-known investment figures, said he was putting his faith in China’s politically-sensitive currency alongside the Japanese yen and the Swiss franc.

“The US economy is undoubtedly in recession,” he said. “Many parts of industry are actually in a state worse than recession. If it were not for [Federal Reserve Governor Ben] Bernanke putting huge amounts of money into the market, the stock market would probably be down much more than it is.” Daily Telegraph

Gold price strikes fresh 27-year peak
The price of gold rocketed Friday to the highest level since the start of 1980, as the precious metal won support from the weak dollar and record high crude oil prices, traders said.

Oil Briefly Spikes Above $92 a Barrel
Crude oil prices spiked above $92 in Asia Friday on growing tensions in the Middle East and renewed concern about oil supplies. The United States announced new sanctions against Iran Thursday, targeting the elite Revolutionary Guards, which Washington accused of backing Shiite militants in Iraq. A confrontation between the world’s largest oil consumer and its fourth largest oil producer could upend markets. MyWay

Dollar Sinks to New Low
The dollar fell to another new low against the euro Friday in midmorning trading on speculation that U.S. interest rates will be cut again.

After rising to a record $1.4375, the euro slipped back to $1.4369, higher than the $1.4319 it bought in late Thursday trading in New York. The euro last hit a record high against the dollar Monday, rising to $1.4348. The euro was lifted higher by a spate of sour economic reports from the United States, including a report that showed U.S. orders for durable goods dropped 1.7 percent in September, after an even bigger 5.3 percent plunge in August. That was the first back-to-back decline in more than a year and took economists by surprise. AP

About Author

Joshua Dorkin

Joshua Dorkin (@jrdorkin, Google+) founded when he saw a need for free, trustworthy information about real estate investing online. Over the past 12 years, Josh has grown the site from self-funded hobby to full-time job and passion. Today, BiggerPockets brings together over 600,000 members, housing the world’s largest library of real estate content, iTunes’ #1 real estate podcast, and an array of analysis tools, all geared toward helping users succeed.

1 Comment

  1. Countrywide is forcing potential buyers of their foreclosed homes to get pre-qualified by their own loan officers. This has caused some real problems with clients, because their in-house loan officers are promising your clients the world, but rather changing the numbers to be higher interest rates as well as closing costs. Keep your head on and prep your client for that conversation with Countrywide’s loan officers.

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