S&P Indices to Host Teleconference on U.S. Residential Home Prices Speakers to Include Profs Robert Shiller and Karl Case and Dr. David Blitzer

Who:
Dr. David Blitzer, Managing Director and Chairman of the Index Committee, S&P Indices
Prof. Robert Shiller, Professor of Economics, Yale University Prof. Karl Case, Professor of Economics Emeritus at Wellesley College and Founding Partner of Fiserv Case Shiller Weiss, Inc.

What:
A discussion on the current state of the U.S. residential housing market, as well as the potential for a stronger year for housing in 2012. No RSVP Required.

The December 2011 data for the S&P/Case-Shiller Home Price Indices is set to be released publicly at 9am EST on Tuesday, February 28^th. Fourth quarter results for the S&P/Case-Shiller National Composite Index, which represents home prices from all 9 U.S. Census Divisions, will also be released.

When/Where:
Tuesday, February 28^th at 10:00 a.m. EST; Live Teleconference.  Details can be found below.

Live-Dial-In-Numbers:
US/Canada Toll Free: 1-866-803-2143; US/Canada/All Others Toll: 1-210-795-1098
UK Toll Free: 0800-279-3953; UK Toll: 44-20-7108-6248

Conference ID#: 6172498; Passcode: SPCIQ

To View the Slide Presentation

URL: http://www.mymeetings.com/nc/join
Conference Name: PH6172498; Passcode: SPCIQ

Participants can also join the event directly by clicking here:https://www.mymeetings.com/nc/join.php?i=PH6172498&p=SPCIQ&t=c

Live Streaming (Audio Only)
URL: http://event.on24.com/r.htm?e=405855&s=1&k=CA9E708F692822CD8EDBCDA66BB04604

Replay Information:
U.S./Canada toll free #: 1-866-417-5769; U.S./Canada/All others toll #: 1-203-369-0737
Replays will expire on Tuesday, March 6, 2012

Replay Web Streaming: (Slides & Audio)
URL: http://www.mymeetings.com/nc/join
Conference ID#: PH6172498; Passcode: SPCIQ
Replay will expire on Thursday, March 29, 2012

To access the Net replay of this call, all parties may join at:

https://www.mymeetings.com/nc/join.php?i=PH6172498&p=SPCIQ&t=r

Consumer Sentiment Moves Off Of Highs:

Americans turned less optimistic about the economy in early February on worries about falling income even as their outlook on the jobs market rose to a record high, a survey released on Friday showed.

The Thomson Reuters/University of Michigan Index of Consumer Sentiment fell back in February with a preliminary score of 72.5 that is 2.5 pts lower than January’s score of 75.

Current conditions, and more precisely a negative tone towards current finances, was the heaviest drag. Even though optimism towards the job market kept up, the CSI was unable to hang on to sentiment expressed last month. Market expectations averaged to 74.5.

The optimism in their job outlook is encouraging though and is certainly reflective of the steady string of better than expected Initial Weekly Jobless Claims and the recent decline in the national Unemployment Rate.  As these trends in lower Unemployment continue, look for the Consumer Sentiment to regain some ground.

What Happened to Rates Last Week?

Mortgage backed securities (MBS) lost -26 basis points from last Friday to the prior Friday which moved mortgage rates higher on a week-over-week basis.  That also marked a -68 basis point drop in MBS pricing from our all time high on 02/02/12.

Mortgage backed securities (and therefore mortgage rates) moved sideways during the week with only minor movements in reaction to the 10 year and 30 year U.S. Treasury auctions.  But MBS did sell off on Friday on news that Greece would come through with another austerity package that would qualify them for additional bailout funds.

The Greek story has been an important one for mortgage rates.  Mortgage rates are artificially too low due to increased demand for U.S. bonds as a pure “safety play” against a European financial collapse.  A default by Greece would start a “domino effect” of other countries defaults too.  So, any positive news that a default is postponed will cause our rates to increase.

Today? 

Fed Releases Orders Related to Banks in Mortgage Settlement

The Federal Reserve Board released today the orders related to the previously announced monetary sanctions against five banking organizations for unsafe and unsound processes and practices in residential mortgage loan servicing and processing. The Board reached an agreement in principle with these organizations for monetary sanctions totaling $766.5 million on February 9, 2012.

ABA: Statement on Proposed Bank Tax

“The banking industry strongly opposes the $61 billion bank tax included in President Obama’s budget proposal. Despite claims to the contrary, the facts on TARP are very clear: Taxpayers have profited $13 billion from their investments in banks through the program and Treasury predicts they will see a lifetime positive return of more than $20 billion. Given that non-bank programs are responsible for all of TARP’s losses, this would simply be an arbitrary tax with no regard to where losses actually occurred.

Related articles

• Foreclosure Filings Hit 4 Year Low: (michael-mcdevitt.com)
• Consumer Sentiment Increases Again: (michael-mcdevitt.com)
• Pending Home Sales Hit 19 Month High: (michael-mcdevitt.com)