Affordable Financial Services LTD Weekly Finance Review

Reuters reported today that Fannie Mae’s gross mortgage portfolio grew 6.3% in June over the previous month. Last month, the government-owned lender’s portfolio grew by $4.1 billion to $817.8 billion, which has gone up 12.1% since the beginning of the year. The portfolio growth could be attributed to a drop in May’s mortgage delinquency rate. In May, the delinquency rate on single-family homes fell to 5.15% — its lowest level of the year. In April, the delinquency rate was 5.30% and, in February, it reached a record high of 5.59%.

Treasury prices and the dollar stayed higher, MarketWatch reported today, after the Reuters/University of Michigan index of consumer sentiment was revised to 67.8 in July. Treasury yields on 10-year notes, which move inversely to prices, fell seven basis points to 2.93%. The dollar index, which is tracked against a group of foreign currencies, traded at 81.781, is up from yesterday’s index of 81.559. Meanwhile, the euro fell from $1.3094 yesterday to $1.3024 today.

The National Association of Realtors is asking U.S. Treasury Secretary Timothy Geithner to ban what is known as Wall Street Home Resale Fees. According to the NAR, some people in the real estate industry — in conjunction with Wall Street advisers — want to add language to home purchase contracts requiring a percentage of the final sales price of a home be paid to private third parties every time the property is sold, over a time period of 99 years. The NAR argues that this practice deprives homeowners of  their home equity and enriches the Wall Street fat cats. This practice has been banned in 17 states, including Illinois, in which Governor Pat Quinn signed legislation yesterday banning the new controversial financial scheme.

As of 3 p.m. today, the stock market is down 39 points at about 10,432. Nasdaq is down 3 points at 2,249.

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