Friday, September 08, 2006
Report
The Consumer Federation of America (http://www.consumerfed.gov/) reported Tuesday on the number of mortgage loans in Iowa which are refinanced as sub-prime. Sub-prime loans are those loans which carry interest rates three percentage points above comparable U.S. Treasury Notes.
Nationally, 26.5% of homes refinanced are sub-prime. In Ames, Iowa 22.0% of the homes refinanced are sub-prime compared with 44.6% of the homes in Sioux City. Davenport tops the list of Iowa cities with refinanced loans hitting the sub-prime level with 47.5%. If we couple these numbers with recent reports about our local housing market decline it shows we should be focusing on long-term economic concerns.
A dominant theory behind these numbers is that they are dependent variables in a poor local economy. It is interesting to see where they put us in regards to other cities in the Iowa and show our level for concern.
One of the best means for changing these local economic trends is to encourage the growth of long-term well paying jobs. As a council what is the best means for encouraging this growth. Most of the time government governs best by staying out of the way. Seeing that these numbers show such a drastic decline how do we encourage a mid sized insurance company to move from Des Moines to Davenport?
Milwaukee, Des Moines, Chicago, Minneapolis and St. Louis show thriving and expanding economies. In each of these cities commercial property is inflated due to a lack of supply and the level of competition. In Davenport nearly half of our downtown office space is half-full, we have space in our parking structures, we have a willing and able workforce and our housing market is begging for in-flight.
I have ideas on how to encourage this change. As this is a topic I have been working on, I want to take time to welcome your ideas and discussion here.
Shawn Hamerlinck
Nationally, 26.5% of homes refinanced are sub-prime. In Ames, Iowa 22.0% of the homes refinanced are sub-prime compared with 44.6% of the homes in Sioux City. Davenport tops the list of Iowa cities with refinanced loans hitting the sub-prime level with 47.5%. If we couple these numbers with recent reports about our local housing market decline it shows we should be focusing on long-term economic concerns.
A dominant theory behind these numbers is that they are dependent variables in a poor local economy. It is interesting to see where they put us in regards to other cities in the Iowa and show our level for concern.
One of the best means for changing these local economic trends is to encourage the growth of long-term well paying jobs. As a council what is the best means for encouraging this growth. Most of the time government governs best by staying out of the way. Seeing that these numbers show such a drastic decline how do we encourage a mid sized insurance company to move from Des Moines to Davenport?
Milwaukee, Des Moines, Chicago, Minneapolis and St. Louis show thriving and expanding economies. In each of these cities commercial property is inflated due to a lack of supply and the level of competition. In Davenport nearly half of our downtown office space is half-full, we have space in our parking structures, we have a willing and able workforce and our housing market is begging for in-flight.
I have ideas on how to encourage this change. As this is a topic I have been working on, I want to take time to welcome your ideas and discussion here.
Shawn Hamerlinck
# posted by Hamerlinck @ 5:38 PM 
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Alderman Hamerlinck: are you still accepting spray painting vandalism here? If so, on Kimberly right by the RR tracks and west of Eastern Ave, the bridge has been painted and also the high voltage transmission pole has been painted. Both are easily seen from Kimberly Road.
# posted by 
: 9/10/2006 09:18:00 AM
: 9/10/2006 09:18:00 AM
Good Job Shawn. You and Alderman Meyer seem to be the only ones talking concern about long term effects on the housing market. We seem to be developing any vacant land some idiot wants to replatt. Instead we should be concerned about building more and more new housing when our older areas (some in your ward) are deteriorating. We cannot seem to tell a developer NO. Good job on Pedcor, but my gut tells me it ain't over.
We have to palce more resources into our older areas of town. We are seeing the effects of not doing that now. No more low income rental housing please - anywhere by anyone. Especially SOLO, this area is breaking from too many poor people. Poverty does equal crime and we have to get a grip in our crime issues.
More later.
We have to palce more resources into our older areas of town. We are seeing the effects of not doing that now. No more low income rental housing please - anywhere by anyone. Especially SOLO, this area is breaking from too many poor people. Poverty does equal crime and we have to get a grip in our crime issues.
More later.
# posted by : 9/10/2006 05:19:00 PM
: 9/10/2006 05:19:00 PM
Try searching the internet for better interest rates. There is no requirement to stay locally. The big national banks are hungry for buiness.
# posted by : 9/11/2006 09:02:00 AM
: 9/11/2006 09:02:00 AM
I've got some updated data on subrime lending and numbers of overall loans by census tract. The resets on ARMs are the next big shoe to drop and in this economy, it will effect all income levels. I have given the most recent HMDA data sets to city staff.
# posted by : 9/11/2006 09:11:00 AM
: 9/11/2006 09:11:00 AM
Shelly: how do you feel about contract home sellers like Lubell and Oak Helm Partners, and are they good for SOLO?
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# posted by : 9/11/2006 01:42:00 PM
: 9/11/2006 01:42:00 PM << Home
