The Exchange
  • If you’re a homeowner, recent news about double-digit price increases sounds terrific. But for buyers hoping to get a great deal on a house, the window of opportunity may be starting to close.

    AP

    For the past several years, housing affordability has been at or near record levels. Three basic factors determine affordability: home prices, mortgage rates and household incomes. The optimal moment for buying a home now appears to have occurred in early 2012, when the median price was about $156,000 and the average interest rate on a 30-year mortgage was 4.2%. Mortgage payments for a typical family totaled just 12% of income back then, according to the National Association of Realtors (NAR) — the lowest portion since 1970, when the NAR started tracking such data.

    [Click here to check home loan rates in your area.]

    In the first quarter of 2013 it took about 13% of income to make monthly mortgage payments, still a very low percentage. But two recent developments are pushing that number

    Read More »from Homes Get Less Affordable as Prices, Rates Rise
  • The Return of the Housing Bubble?

    By Dean Baker

    Recent data showing housing prices rising at their fastest rate since the collapse of the bubble have many people asking whether we are seeing another bubble. That is a good question.

    At the national level the answer would almost certainly be "no." Different indexes show slightly different stories, but inflation adjusted house prices nationwide are still down by roughly a third from their bubble peaks. This means that house prices may be slightly above their long-term trend level, but close enough that no one could say they are out of line with the fundamentals of the housing market. That doesn’t mean that there can’t be a dip, but there is no reason to expect another plunge like the 2007-2009 collapse that threw us into recession.

    Cause for concern

    While house prices nationally may not be out of line with fundamentals, there are serious grounds for concern in many local markets. House prices have been rising at an extraordinary pace in many markets and may soon be

    Read More »from The Return of the Housing Bubble?
  • The most famous fast-food restaurants are burger joints: McDonald’s (MCD), Wendy’s (WEN), Burger King (BKW). But Americans have been in the mood for something different lately, and many of the trendiest quick-serve restaurants indulge that desire for variety, novelty and healthier eating.

    Like other parts of the lackluster economy, restaurant industry sales have been growing slowly. So new chains hoping to become the next Five Guys or Chipotle (CMG) have garnered attention with standout food, flashy preparation and an eye-catching atmosphere. It also doesn’t hurt, of course, if a meal seems like a bargain.

    To identify some of the most promising up-and-coming fast-food chains, Yahoo! Finance teamed with Technomic, a Chicago food-industry research firm that tracks more than 2,000 chains. Technomic sorted its data to highlight firms with annual sales between $3 million and $25 million and more than 10 outlets at the end of 2012. Among those, here are the fastest-growing chains that could

    Read More »from The Most Popular Fast-Food Outlets You Haven’t Heard Of (Yet)
  • High-end clothing and handbag designer Michael Kors (KORS) provided further evidence Wednesday that global consumers appear to be rather happily spending on extravagant goods.

    Michael Kors line at fashion show: Credit AP

    One day after jewelry seller Tiffany (TIF) topped analysts' expectations for its most recent quarter, Michael Kors showed impressive numbers to end its first full year as a publicly traded company.

    The Hong Kong-based apparel and accessories merchant said fourth-quarter revenue increased 57.1% to $597.2 million from $380 million in the prior-year period, with same-store sales climbing 36.7%. The company earned $101.1 million, or 50 cents a share, compared with $43.6 million, or 22 cents a share, a year earlier. Those results easily beat analysts' consensus estimates. North America is by far the company's largest market, but in Europe, revenue doubled for both the fourth quarter and full fiscal year, to $73.1 million and $220.7 million, respectively.

    CEO John Idol said in a prepared statement that Michael Kors'

    Read More »from Well-Heeled Buyers Give Michael Kors Another Profit Beat

Pagination

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