Radian Releases Commentary on Regional and National Housing Market
20 Octobre 2005 - 10:05PM
PR Newswire (US)
Company's analysis shows strong economic climate for potential
Philadelphia-area homebuyers PHILADELPHIA, Oct. 20
/PRNewswire-FirstCall/ -- Even in the post-Katrina economy, the
Philadelphia housing market appears to be holding steady, according
to Mark Casale, senior vice president of capital markets for
Philadelphia-based Radian Group Inc. (NYSE:RDN), which, through its
Radian Guaranty Inc. subsidiary, provides mortgage insurance to the
national housing market. Even amid consumer concerns of an
impending national housing bubble, there are many indicators that
point to a strong housing market. Low mortgage rates, coupled with
a recent increase in Philadelphia-region home values, suggest that
the region is experiencing a new economic climate that could still
benefit potential homebuyers. "The picture at a national level
looks solid," said Casale on his weekly KYW Newsradio commentary.
The two factors that lead to bubbles, housing prices and
unemployment trends, appear steady on both the national and local
levels, he said. But in addition to his optimism, Casale points out
that the industry - consumers and lenders alike - needs to
continuously monitor the market in order to gain a clear assessment
of a region's affordability and overall health. "Before we get too
comfortable, there are about 20 regions in the country that we're
keeping an eye on. Regions where we [Radian] have seen the highest
price increases - places like California, Arizona and New York are
more likely to see prices come down in the next few years." Even
so, said Casale, so far, so good. "Our region [Philadelphia] is not
on the watch list." With rising interest rates, will mortgage rates
follow? With the Federal Reserve's prime rate increase on Sept. 20,
Casale said that mortgage rates may rise in step, which would buck
the recent trend. Over the last several years, the Fed has
consistently raised short-term interest rates but mortgage rates
had not followed along. "This has been good news for homebuyers and
homeowners looking to refinance," said Casale. "Now we are starting
to see signs of mortgage rates rising, and there are other signals
that the housing market may be softening - slower sales, fewer new
housing starts and prices beginning to cool in some markets. Still,
a 30- year fixed rate mortgage remains under six percent - quite
reasonable. This means, on a $200,000 mortgage, typical in our
region, the payment would be about $1,200 per month." Given the
economic data that has been released so far, Casale maintains an
optimistic outlook on the Philadelphia housing market. "Home prices
in the Philadelphia region increased 17 percent in the last year,
and mortgage rates won't stay this low forever," he said. "Renters
may want to run the numbers, and see why it still may be a good
time to buy a house." About Radian Guaranty Inc. Radian Guaranty
Inc. is the mortgage insurance subsidiary of Radian Group Inc.
(NYSE:RDN), a global credit enhancement company headquartered in
Philadelphia. Radian Guaranty provides risk management products and
services to mortgage lenders nationwide; these services increase
opportunities for people to buy homes with little or no
downpayment, protect lenders from default-related losses on
residential first mortgages and facilitate the sale of
low-downpayment mortgages in the secondary market. Additional
information may be found at http://www.radian.biz/. DATASOURCE:
Radian Guaranty Inc. CONTACT: For investors: Mona Zeehandelaar of
Radian, +1-215-231-1674, ; For the media: Radian Corporate
Communications, +1-888-NEWS-520, Web site: http://www.radian.biz/
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