May 27, 2011 (Brian Michael)
Pending home sales dropped 11.6 percent to 81.9 in April from an already downwardly revised 92.6 in March according to the National Association of Realtors (NAR). Lawrence Yun, NAR’s chief economist blames tight credit as the primary long term factor holding the market back.
Yun also noted that the dip in contracts could also be due to temporary factors such as a slowing economy due to rising oil prices, severe weather, and a rise in unemployment claims.
“The pullback in contract signings is disappointing and implies a slower than expected market recovery in upcoming months,” he said. “The economy hit a soft patch in April from sharply rising oil prices, widespread severe weather with the heaviest precipitation in 20 years, and a sudden rise in unemployment claims.”
Yun also added, “We simply have to get back to sound, common-sense lending standards to provide mortgages to creditworthy borrowers who are buying homes well within their means. Bank balance sheets show rising cash reserves and declining loan balances – it’s time to loosen the purse strings.”
The Pending Home Index (PHI) is a forward-looking indicator that is based on contract signings, not closings, which normally occur about one to two months later. April’s reading of 81.9 puts the index 26.5 percent below April 2010’s index of 111.5. Last years index is considered to be elevated as buyers rushed to purchase homes before the end of the home buyer tax credit.
Regionally, the PHSI in the Northeast rose 1.7 percent to 64.5 in April, but is 33.4 percent below a year ago. In the Midwest the index fell 10.4 percent to 74.1 and is 30.2 percent below April 2010.
In the South, the PHSI dropped 17.2 percent to an index of 91.3 in April and is 27.0 percent below a year ago. In the West the index declined 8.9 percent to 89.1 and is 16.9 percent below April 2010.
Such a large drop in contract signings now could translate into very dismal summer for the housing industry.
Tags: NAR, pending home sales, tight credit, rising oil prices, severe weather, unemployment, contract signings, home buyer tax credit
Source:
NAR
Sunday, May 29, 2011
GOP Pushes Higher FHA Down Payments, Housing Industry Pushes Back
May 27, 2011 (Chris Moore)
House Republicans in the Financial Services Committee have drafted a bill that would raise the minimum down payment requirements on mortgage loans insured with the Federal Housing Administration (FHA) from 3.5 percent to 5 percent and one industry giant is pushing back.
The bill would also decrease the maximum size of FHA-backed loans that had been raised in the most expensive areas of the country from $729,750 down to $625,500. The draft bill also calls for a reduction in maximum loan size in less expensive areas of the country, which currently is set at $417,000, down to $271,050.
The proposal has yet to be introduced in legislative form and like all the other housing reform bills that have originated from the House, it probably wouldn’t have a chance in the Democrat controlled Senate, but that hasn’t stopped the housing industry from expressing its displeasure.
In a recent press release, the National Association of Home Builders (NAHB) expressed its concerns that increasing the down payment requirement would create a substantial burden for all American home buyers, especially those who use FHA backed loans the most, young buyers and those with strong credit profiles but who lack the necessary finds to make a higher down payment.
"Research has shown that requiring a higher down payment does little to reduce risk of default but causes home buyers to use more of their reserves for the down payment," said NAHB First Vice Chairman Barry Rutenberg. "Sound underwriting is the key to minimizing foreclosures and defaults, not higher down payments. This is demonstrated by current FHA foreclosure reports on loans made to borrowers with sound credit profiles, which have significantly improved."
NAHB also feels that reducing loan limits would place further downward pressure on home prices and impair the ability of borrowers to use FHA-backed mortgage to purchase new homes. FHA high cost area loan limits are already scheduled to be reduced to $625,500 on October 1, 2011.
Instead, NAHB supports H.R. 1754, the Preserving Equal Access to Mortgage Finance Programs Act, a bipartisan measure sponsored by Reps. Gary Miller (R-Calif.) and Brad Sherman (D-Calif.) which would keep FHA loan limits at current levels.
Tags: GOP, draft bill, down payment requirement, loan limits, FHA, FHA-backed loans, NAHB, borrowers
Source:
NAHB
House Republicans in the Financial Services Committee have drafted a bill that would raise the minimum down payment requirements on mortgage loans insured with the Federal Housing Administration (FHA) from 3.5 percent to 5 percent and one industry giant is pushing back.
The bill would also decrease the maximum size of FHA-backed loans that had been raised in the most expensive areas of the country from $729,750 down to $625,500. The draft bill also calls for a reduction in maximum loan size in less expensive areas of the country, which currently is set at $417,000, down to $271,050.
The proposal has yet to be introduced in legislative form and like all the other housing reform bills that have originated from the House, it probably wouldn’t have a chance in the Democrat controlled Senate, but that hasn’t stopped the housing industry from expressing its displeasure.
In a recent press release, the National Association of Home Builders (NAHB) expressed its concerns that increasing the down payment requirement would create a substantial burden for all American home buyers, especially those who use FHA backed loans the most, young buyers and those with strong credit profiles but who lack the necessary finds to make a higher down payment.
"Research has shown that requiring a higher down payment does little to reduce risk of default but causes home buyers to use more of their reserves for the down payment," said NAHB First Vice Chairman Barry Rutenberg. "Sound underwriting is the key to minimizing foreclosures and defaults, not higher down payments. This is demonstrated by current FHA foreclosure reports on loans made to borrowers with sound credit profiles, which have significantly improved."
NAHB also feels that reducing loan limits would place further downward pressure on home prices and impair the ability of borrowers to use FHA-backed mortgage to purchase new homes. FHA high cost area loan limits are already scheduled to be reduced to $625,500 on October 1, 2011.
Instead, NAHB supports H.R. 1754, the Preserving Equal Access to Mortgage Finance Programs Act, a bipartisan measure sponsored by Reps. Gary Miller (R-Calif.) and Brad Sherman (D-Calif.) which would keep FHA loan limits at current levels.
Tags: GOP, draft bill, down payment requirement, loan limits, FHA, FHA-backed loans, NAHB, borrowers
Source:
NAHB
Are Mortgage Rates Bottoming Out?
May 27, 2011 (Chris Moore)
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), which shows fixed rate mortgages declining slightly from the previous week, while rates for adjustable rate mortgages (ARM) climbed higher . With the landmark 30 year fixed rate mortgage only dropping 2 basis points this week and two basis points last week, and with the Mortgage Bankers Association (MBA) and LendingTree reporting slight mortgage rate increases in their reports this week, if you’re sitting on the fence thinking of refinancing or purchasing, now might be a good time.
According to Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 4.61 percent with an average 0.7 point for the week ending May 19, 2011, down from last week when it averaged 4.63 percent. Last year at this time, the 30-year FRM averaged 4.84 percent. The 15-year FRM this week averaged 3.80 percent with an average 0.7 point, down from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.24 percent.
Adjustable rate mortgage rates, on the other hand, showed rate increases this week as the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.48 percent this week, with an average 0.6 point, up from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 3.91 percent. The 1-year Treasury-indexed ARM averaged 3.15 percent this week with an average 0.6 point, up from last week when it averaged 3.11 percent. At this time last year, the 1-year ARM averaged 4.00 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac stated, "Fixed mortgage rates inched down for the fifth consecutive week as financial markets try to ascertain the current strength of the economy. Industrial production was unchanged in April owing to disruptions in automobile parts supplies due to the earthquake and tsunami in Japan. Netting out automobiles and gasoline, retail sales rose 0.2 percent in April, which was less than a third of the increase in March and the weakest growth since December 2010. However, consumer confidence, as measured by the University of Michigan, rose above the market consensus in May to the highest reading since February.”
Although a weakening economy is not good for Americans, historically it’s good for mortgage interest rates. But historically mortgage interest rate predicting has been a bad profession to be in.
In their weekly reports this week, the MBA reported a mixed bag on interest rates as the effective rate of the 30 year FRM was slightly higher while the 15 year FRM’s effective rate was slightly lower. LendingTree reported slightly higher interest rates across the board in their weekly Mortgage Pulse Rate report.
Nothaft added, "Data on the housing market was also mixed. New construction on single-family homes fell 5.1 percent in April, with the largest declines occurring in the Midwest and South regions where tornados hit the hardest. Homebuilder confidence remained unchanged in May and near its January 2009 historical low, according to the NAHB/Wells Fargo Housing Market Index. However, conventional mortgages applications rose for the past five straight weeks ending May 13th, buoyed by lower mortgage rates and stronger refinancing activity."
Interest rates are at the lowest levels seen in 2011, and with mixed economic activity, are likely to be up and down slightly each week until financial markets can better ascertain the current strength of the economy.
Might be a good time to get off that fence though.
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates
Sources:
Freddie Mac
LoanRateUpdate
LoanRateUpdate
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), which shows fixed rate mortgages declining slightly from the previous week, while rates for adjustable rate mortgages (ARM) climbed higher . With the landmark 30 year fixed rate mortgage only dropping 2 basis points this week and two basis points last week, and with the Mortgage Bankers Association (MBA) and LendingTree reporting slight mortgage rate increases in their reports this week, if you’re sitting on the fence thinking of refinancing or purchasing, now might be a good time.
According to Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 4.61 percent with an average 0.7 point for the week ending May 19, 2011, down from last week when it averaged 4.63 percent. Last year at this time, the 30-year FRM averaged 4.84 percent. The 15-year FRM this week averaged 3.80 percent with an average 0.7 point, down from last week when it averaged 3.82 percent. A year ago at this time, the 15-year FRM averaged 4.24 percent.
Adjustable rate mortgage rates, on the other hand, showed rate increases this week as the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.48 percent this week, with an average 0.6 point, up from last week when it averaged 3.41 percent. A year ago, the 5-year ARM averaged 3.91 percent. The 1-year Treasury-indexed ARM averaged 3.15 percent this week with an average 0.6 point, up from last week when it averaged 3.11 percent. At this time last year, the 1-year ARM averaged 4.00 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac stated, "Fixed mortgage rates inched down for the fifth consecutive week as financial markets try to ascertain the current strength of the economy. Industrial production was unchanged in April owing to disruptions in automobile parts supplies due to the earthquake and tsunami in Japan. Netting out automobiles and gasoline, retail sales rose 0.2 percent in April, which was less than a third of the increase in March and the weakest growth since December 2010. However, consumer confidence, as measured by the University of Michigan, rose above the market consensus in May to the highest reading since February.”
Although a weakening economy is not good for Americans, historically it’s good for mortgage interest rates. But historically mortgage interest rate predicting has been a bad profession to be in.
In their weekly reports this week, the MBA reported a mixed bag on interest rates as the effective rate of the 30 year FRM was slightly higher while the 15 year FRM’s effective rate was slightly lower. LendingTree reported slightly higher interest rates across the board in their weekly Mortgage Pulse Rate report.
Nothaft added, "Data on the housing market was also mixed. New construction on single-family homes fell 5.1 percent in April, with the largest declines occurring in the Midwest and South regions where tornados hit the hardest. Homebuilder confidence remained unchanged in May and near its January 2009 historical low, according to the NAHB/Wells Fargo Housing Market Index. However, conventional mortgages applications rose for the past five straight weeks ending May 13th, buoyed by lower mortgage rates and stronger refinancing activity."
Interest rates are at the lowest levels seen in 2011, and with mixed economic activity, are likely to be up and down slightly each week until financial markets can better ascertain the current strength of the economy.
Might be a good time to get off that fence though.
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates
Sources:
Freddie Mac
LoanRateUpdate
LoanRateUpdate
| 30-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 4.60 | 4.60 | 4.62 | 4.63 | 4.65 | 4.54 |
| Fees & Points | 0.7 | 0.7 | 0.9 | 0.6 | 0.6 | 0.8 |
| 15-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.78 | 3.80 | 3.79 | 3.82 | 3.85 | 3.71 |
| Fees & Points | 0.7 | 0.7 | 0.9 | 0.5 | 0.6 | 0.8 |
| 5/1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.41 | 3.57 | 3.40 | 3.45 | 3.46 | 3.24 |
| Fees & Points | 0.5 | 0.5 | 0.7 | 0.4 | 0.5 | 0.6 |
| Margin | 2.74 | 2.74 | 2.75 | 2.74 | 2.76 | 2.73 |
| 1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.11 | 3.26 | 2.88 | 3.52 | 3.00 | 2.87 |
| Fees & Points | 0.5 | 0.6 | 0.5 | 0.3 | 0.8 | 0.5 |
| Margin | 2.76 | 2.80 | 2.75 | 2.73 | 2.77 | 2.75 |
| The National Mortgage Rate Snapshot | One Year Ago | One Week Ago | ||||||
|---|---|---|---|---|---|---|---|---|
| 30-YR | 15-YR | 5/1-YR | 1-YR ARM | 30-YR | 15-YR | 5/1-YR | 1-YR ARM | |
| Average | 4.78 | 4.21 | 3.97 | 3.95 | 4.61 | 3.80 | 3.48 | 3.15 |
| Fees & Points | 0.7 | 0.7 | 0.7 | 0.6 | 0.7 | 0.7 | 0.6 | 0.6 |
| Margin | N/A | N/A | 2.75 | 2.75 | N/A | N/A | 2.74 | 2.76 |
HUD Extends Housing Disaster Relief to North Dakota and Idaho
May 26, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of North Dakota and Idaho, providing support to homeowners and low-income renters who have been forced from their homes following severe winter storms and flooding in March and April.
In North Dakota, the eligible counties are Bottineau, Burke, Divide, Dunn, McKenzie, Mountrail, Renville, Ward, and Williams.
In Idaho, the counties of Bonner, Clearwater, Idaho, Nez Perce, and Shoshone and the Nez Perce Indian Reservation are eligible.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
- Offering each of the States and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD's Community Development Block Grant (CDBG) and HOME programs give the States and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
- Making insurance available for both mortgages and home rehabilitation– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
- Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
For more information, visit www.hud.gov.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of North Dakota and Idaho, providing support to homeowners and low-income renters who have been forced from their homes following severe winter storms and flooding in March and April.
In North Dakota, the eligible counties are Bottineau, Burke, Divide, Dunn, McKenzie, Mountrail, Renville, Ward, and Williams.
In Idaho, the counties of Bonner, Clearwater, Idaho, Nez Perce, and Shoshone and the Nez Perce Indian Reservation are eligible.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
- Offering each of the States and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD's Community Development Block Grant (CDBG) and HOME programs give the States and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
- Making insurance available for both mortgages and home rehabilitation– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
- Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
For more information, visit www.hud.gov.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
“Suspicious” Short Sale Activity May Cost Lenders $375 Million
May 26, 2011 (Chris Moore)
CoreLogic has released its 2011 Short Sale Research Study, “CoreLogic Analysis on Short Sale Trends, Risks, and Opportunites” and has found that “suspicious” short sale activity may cost the lending industry $375 million in 2011 with higher losses expected in the future as the pool of distressed properties increases.
For the study, CoreLogic defines “suspicious” short sale transactions as those where a lender may have incurred unnecessary losses due to the short sale transaction quickly followed by a resale transaction for a substantially higher price where that higher price is not supported by an underlying increase in property value.
The study revealed that short sales that show another sale transaction closing on the same day on the same property account for 16 percent of all suspicious short sales in the industry and that on average the resale price was $50,000 greater than what the lender agreed upon for the original short sale price.
The study also found that although Limited Liability Company buyers comprise only two percent of all short sale buyers, they comprise more than 25 percent of buyers in suspicious short sale transactions.
CoreLogic reports that losses in 2011 for lenders, servicers and investors are estimated to be in excess of $375 million in 2011 which is more than 20 percent above the estimated losses of $310 million in 2010 and that they expect “suspicious” short sale transactions to increase in the future.
States with the largest short sale volume (California, Arizona, Colorado and Florida) incur the highest rates of suspicious short sale transactions.
“Short sale volume has tripled in the past two years, and with approximately 1.7 million seriously delinquent loans, I expect volume to grow again in 2011,” said Craig Focardi, senior research director, consumer lending at The TowerGroup. “Identifying risk and monitoring distressed asset sale trends is absolutely essential for lenders to preempt potential losses.”
The study was designed to take a rigorously scientific, data-driven look at current trends in short sales and to identify inherent risks and opportunities associated with these transactions.
More information about “suspicious” short sale transactions is available on CoreLogic’s Website.
Tags: CoreLogic, suspicious short sales, lender losses, resale transactions, investors, lenders, servicers, short sale volume
CoreLogic has released its 2011 Short Sale Research Study, “CoreLogic Analysis on Short Sale Trends, Risks, and Opportunites” and has found that “suspicious” short sale activity may cost the lending industry $375 million in 2011 with higher losses expected in the future as the pool of distressed properties increases.
For the study, CoreLogic defines “suspicious” short sale transactions as those where a lender may have incurred unnecessary losses due to the short sale transaction quickly followed by a resale transaction for a substantially higher price where that higher price is not supported by an underlying increase in property value.
The study revealed that short sales that show another sale transaction closing on the same day on the same property account for 16 percent of all suspicious short sales in the industry and that on average the resale price was $50,000 greater than what the lender agreed upon for the original short sale price.
The study also found that although Limited Liability Company buyers comprise only two percent of all short sale buyers, they comprise more than 25 percent of buyers in suspicious short sale transactions.
CoreLogic reports that losses in 2011 for lenders, servicers and investors are estimated to be in excess of $375 million in 2011 which is more than 20 percent above the estimated losses of $310 million in 2010 and that they expect “suspicious” short sale transactions to increase in the future.
States with the largest short sale volume (California, Arizona, Colorado and Florida) incur the highest rates of suspicious short sale transactions.
“Short sale volume has tripled in the past two years, and with approximately 1.7 million seriously delinquent loans, I expect volume to grow again in 2011,” said Craig Focardi, senior research director, consumer lending at The TowerGroup. “Identifying risk and monitoring distressed asset sale trends is absolutely essential for lenders to preempt potential losses.”
The study was designed to take a rigorously scientific, data-driven look at current trends in short sales and to identify inherent risks and opportunities associated with these transactions.
More information about “suspicious” short sale transactions is available on CoreLogic’s Website.
Tags: CoreLogic, suspicious short sales, lender losses, resale transactions, investors, lenders, servicers, short sale volume
Is Your Home Underwater? Behind on Your Payments?
May 26, 2011 (Brian Michael)
According to a recent poll by Rasmussen, 51 percent of homeowners believe that they owe more on their mortgage than their home is worth, and if you are underwater or behind on your payments, the Treasury Department and the Department of Housing and Urban Development (HUD) have introduced a way to help you find answers.
As part of the Home Affordable Modification Program (HAMP), both agencies have jointly launched a new website called CheckMyNPV.com, to assist homeowners in understanding the HAMP net present value (NPV) process.
Their goal is to provide an easy to use tool for homeowners to conduct a self-evaluation of their mortgage and present a guide to open dialogue between homeowners and mortgage servicers.
Designed as a self-service, self-education tool, homeowners can use the website to learn more about the HAMP process and the NPV process which uses the same underlying formula required by HAMP servicers.
Users can go to the website and enter NPV input values provided by their mortgage servicer or substitute with estimated values and CheckMyNPV.com will provide a proposed interest rate, term (number of payments), and forbearance amount for your modification.
The tool can be used by homeowners prior to applying for HAMP loan modification to help them better understand the NPV evaluation process and it can also be used by homeowners who have been denied a HAMP loan modification to compare against their Non-Approval Notice for a discussion with their mortgage servicer about what additional options may be available for you.
It is important to note that CheckMyNPV.com provides only an estimate of a mortgage servicer’s NPV evaluation. The CheckMyNPV.com formula is required to be the same as that used by mortgage servicers in evaluating a mortgage for HAMP, but differences in input data (such as those you entered during the CheckMyNPV.com evaluation) and other industry-related data used by the NPV formula may result in different outputs.
The results don’t guarantee a loan modification as there is other criteria and information that will be needed to see if you qualify, but it does give you the ability to gain a better understanding of the HAMP process and a better understanding of the options that are available to you when talking to your mortgage servicer.
If you’d like to learn more, start the process at the CheckMyNPV,com website.
Tags: underwater home, behind on payments, Treasury Department, HUD, HAMP, net present value, mortgage self-evaluation, homeowners, mortgage servicers, loan modifications
Sources:
Rasmussen Reports
According to a recent poll by Rasmussen, 51 percent of homeowners believe that they owe more on their mortgage than their home is worth, and if you are underwater or behind on your payments, the Treasury Department and the Department of Housing and Urban Development (HUD) have introduced a way to help you find answers.
As part of the Home Affordable Modification Program (HAMP), both agencies have jointly launched a new website called CheckMyNPV.com, to assist homeowners in understanding the HAMP net present value (NPV) process.
Their goal is to provide an easy to use tool for homeowners to conduct a self-evaluation of their mortgage and present a guide to open dialogue between homeowners and mortgage servicers.
Designed as a self-service, self-education tool, homeowners can use the website to learn more about the HAMP process and the NPV process which uses the same underlying formula required by HAMP servicers.
Users can go to the website and enter NPV input values provided by their mortgage servicer or substitute with estimated values and CheckMyNPV.com will provide a proposed interest rate, term (number of payments), and forbearance amount for your modification.
The tool can be used by homeowners prior to applying for HAMP loan modification to help them better understand the NPV evaluation process and it can also be used by homeowners who have been denied a HAMP loan modification to compare against their Non-Approval Notice for a discussion with their mortgage servicer about what additional options may be available for you.
It is important to note that CheckMyNPV.com provides only an estimate of a mortgage servicer’s NPV evaluation. The CheckMyNPV.com formula is required to be the same as that used by mortgage servicers in evaluating a mortgage for HAMP, but differences in input data (such as those you entered during the CheckMyNPV.com evaluation) and other industry-related data used by the NPV formula may result in different outputs.
The results don’t guarantee a loan modification as there is other criteria and information that will be needed to see if you qualify, but it does give you the ability to gain a better understanding of the HAMP process and a better understanding of the options that are available to you when talking to your mortgage servicer.
If you’d like to learn more, start the process at the CheckMyNPV,com website.
Tags: underwater home, behind on payments, Treasury Department, HUD, HAMP, net present value, mortgage self-evaluation, homeowners, mortgage servicers, loan modifications
Sources:
Rasmussen Reports
LendingTree Mortgage Rate Pulse: Mortgage Rates Up Slightly
May 26, 2011 (Shirley Allen)
According to the data collected on May 24, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.82 percent (5.03% APR) for 30-year fixed mortgages, which is up from 4.79 percent from the previous week, 4.04 percent (4.38% APR) for 15-year fixed mortgages, which is up from 4.00 percent reported in the previous week, and 3.51 percent (3.64% APR) for 5/1 adjustable rate mortgages (ARM), which was up from 3.42 percent reported in the previous weeks survey.
The lowest mortgage rates offered on the same day by lenders on the LendingTree network were 4.375 percent (4.51% APR) for a 30-year fixed mortgage, which is the same that was offered the previous week, 3.5 percent (3.74% APR) for a 15-year fixed mortgage, which was the same as was offered the previous week, and 2.875 percent (3.16% APR) for a 5/1 ARM, which was also the same as was offered last week.
"The revamped mortgage disclosure forms proposed by Elizabeth Warren and the Consumer Financial Protection Bureau (CFPB) have brought the challenges borrowers face when obtaining a mortgage back into the limelight," said Mona Marimow, Senior Vice President of LendingTree.com. "A recent LendingTree study found that nearly 70% of consumers found shopping for a mortgage frustrating and nearly 40% obtain just one home loan quote. This is evidence that borrowers need help making one of the biggest financial decisions of their life. LendingTree has been working to simplify the mortgage process for consumers since our founding in 1998. It's great to see the federal government also taking steps to improve what can be a challenging process."
The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.
Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile.
More information is available here:
Tags: lendingtree, mortgage rates, mortgage loans, average home rates, 30 year fixed, 15 year fixed, 5/1 arm, adjustable rate mortgage, fixed mortgage, freddie mac, lenders
According to the data collected on May 24, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.82 percent (5.03% APR) for 30-year fixed mortgages, which is up from 4.79 percent from the previous week, 4.04 percent (4.38% APR) for 15-year fixed mortgages, which is up from 4.00 percent reported in the previous week, and 3.51 percent (3.64% APR) for 5/1 adjustable rate mortgages (ARM), which was up from 3.42 percent reported in the previous weeks survey.
The lowest mortgage rates offered on the same day by lenders on the LendingTree network were 4.375 percent (4.51% APR) for a 30-year fixed mortgage, which is the same that was offered the previous week, 3.5 percent (3.74% APR) for a 15-year fixed mortgage, which was the same as was offered the previous week, and 2.875 percent (3.16% APR) for a 5/1 ARM, which was also the same as was offered last week.
"The revamped mortgage disclosure forms proposed by Elizabeth Warren and the Consumer Financial Protection Bureau (CFPB) have brought the challenges borrowers face when obtaining a mortgage back into the limelight," said Mona Marimow, Senior Vice President of LendingTree.com. "A recent LendingTree study found that nearly 70% of consumers found shopping for a mortgage frustrating and nearly 40% obtain just one home loan quote. This is evidence that borrowers need help making one of the biggest financial decisions of their life. LendingTree has been working to simplify the mortgage process for consumers since our founding in 1998. It's great to see the federal government also taking steps to improve what can be a challenging process."
The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.
Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile.
More information is available here:
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Home Affordability at Record Level
May 25, 2011 (Shirley Allen)
The ability for Americans to own a home has reached a record level according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Data from the HOI shows that 74.6 percent of all new and existing homes sold in the first quarter of 2011 were affordable to families who earned the national median income of $64,400.
The HOI, which up until 2009 rarely topped 65 percent and had never previously topped 70 percent, has been above the 70 percent mark for nine consecutive quarters. The first quarter’s mark exceeds the previous high of 73.9 percent reached in the fourth quarter of 2010.
"With interest rates remaining at historically low levels, today's report indicates that homeownership is within reach of more households than it has been for more than two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While this is good news for consumers, home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."
The most affordable major market area was Syracuse, New York, where 94.5 percent of all homes sold were affordable to the area residents whose median family income is $64,300.
Kokomo, Indiana, was the most affordable area among the smaller housing markets, as 98.6 percent of the homes sold during the quarter were affordable to area residents where the median income is $61,400.
The least affordable major market area was New York-White Plains-Wayne, New York-New Jersey, where only 24.1 percent of all homes sold during the first quarter were affordable based on a median income for the area of $65, 600. This was the 12th consecutive quarter that the New York area has been the least affordable.
San Luis Obispo-Paso Robles, California, was the least affordable small market area where 47.6 percent of the residents could afford a home on the area's median income of $72,500.
Tags: NAHB, Wells Fargo, Housing Opportunity Index, new homes, existing homes, affordability, median income, HOI, low interest rates
Source:
NAHB
The ability for Americans to own a home has reached a record level according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Data from the HOI shows that 74.6 percent of all new and existing homes sold in the first quarter of 2011 were affordable to families who earned the national median income of $64,400.
The HOI, which up until 2009 rarely topped 65 percent and had never previously topped 70 percent, has been above the 70 percent mark for nine consecutive quarters. The first quarter’s mark exceeds the previous high of 73.9 percent reached in the fourth quarter of 2010.
"With interest rates remaining at historically low levels, today's report indicates that homeownership is within reach of more households than it has been for more than two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While this is good news for consumers, home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."
The most affordable major market area was Syracuse, New York, where 94.5 percent of all homes sold were affordable to the area residents whose median family income is $64,300.
Kokomo, Indiana, was the most affordable area among the smaller housing markets, as 98.6 percent of the homes sold during the quarter were affordable to area residents where the median income is $61,400.
The least affordable major market area was New York-White Plains-Wayne, New York-New Jersey, where only 24.1 percent of all homes sold during the first quarter were affordable based on a median income for the area of $65, 600. This was the 12th consecutive quarter that the New York area has been the least affordable.
San Luis Obispo-Paso Robles, California, was the least affordable small market area where 47.6 percent of the residents could afford a home on the area's median income of $72,500.
Tags: NAHB, Wells Fargo, Housing Opportunity Index, new homes, existing homes, affordability, median income, HOI, low interest rates
Source:
NAHB
Refinance Activity Keeps Mortgage Applications Up
May 25, 2011(Chris Moore)
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 20, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 1.1 percent as the previous weeks surge in refinance activity carried over for another week as borrowers continued to take advantage of some of this years lowest interest rates.
On an unadjusted basis, the Index increased 0.9 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 5.2 percent.
The seasonally adjusted Purchase Index increased 1.5 percent from one week earlier. The four week moving average is up 1.2 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index increased 0.8 percent compared with the previous week and was 3.1 percent higher than the same week one year ago.
The Refinance Index increased 0.9 percent from the previous week. The four week moving average is up 7.1 percent. The index is at its highest level since the second week of December.
The refinance share of mortgage activity increased to 66.8 percent of total applications from 66.7 percent last week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.8 percent from 6.3 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.69 percent from 4.60 percent last week, with points decreasing to 0.69 from 0.93 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.78 percent from 3.75 percent last week, with points decreasing to 1.04 from 1.22 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Sources:
MBA
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 20, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 1.1 percent as the previous weeks surge in refinance activity carried over for another week as borrowers continued to take advantage of some of this years lowest interest rates.
On an unadjusted basis, the Index increased 0.9 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 5.2 percent.
The seasonally adjusted Purchase Index increased 1.5 percent from one week earlier. The four week moving average is up 1.2 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index increased 0.8 percent compared with the previous week and was 3.1 percent higher than the same week one year ago.
The Refinance Index increased 0.9 percent from the previous week. The four week moving average is up 7.1 percent. The index is at its highest level since the second week of December.
The refinance share of mortgage activity increased to 66.8 percent of total applications from 66.7 percent last week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.8 percent from 6.3 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.69 percent from 4.60 percent last week, with points decreasing to 0.69 from 0.93 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.78 percent from 3.75 percent last week, with points decreasing to 1.04 from 1.22 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Sources:
MBA
New SFH Sales Increase, Inventory at Record Low
May 25, 2011 (Brian Michael)
Sales of new single-family homes increased by 7.3 percent in April, 2011, compared to March, according to the U.S. Census Bureau, but are 23.1 percent below April 2010. The seasonally adjusted estimate of new homes available for sale at the end of April was 175,000, the least amount of new single-family homes for sale since the Census Bureau started keeping track in 1963.
This was the second straight month that new single-family homes sales have increased even following a downward adjustment of March’s sales. Builders sold at a seasonally adjusted rate 323,000 new single-family homes in April compared to the revised amount of 301,000 new single-family homes in March. This was still down from April 2010’s estimated amount of 420,000 homes.
The average sales price for a new home was $268,900, which was up from $250,000 in March and the median sales price for April was $217,900, which was also up from $214,500 in March.
By region, in the Northeast builders sold 28,000 new single-family homes, which was up 7.7 percent from March and down 22.2 percent from April 2010. In the Midwest, 43,000 new single-family homes were sold, which was up 4.9 percent from March and down 21.8 percent from April 2010.
Single-family home sales in the South were at a rate of 168,000, which was up 4.3 percent from March, but down 24.7 percent from April 2010 and the largest gains were experienced in the West as single-family homes sold at a rate of 84,000 homes which was up 15.1 percent from March, but still down 20.8 percent from April 2010. All sales are based on a seasonally adjusted annual rate.
Tags: Census Bureau, single-family homes, new home sales, new home builders, average sales price, median sales price
Source:
Census Bureau
Census Bureau
Sales of new single-family homes increased by 7.3 percent in April, 2011, compared to March, according to the U.S. Census Bureau, but are 23.1 percent below April 2010. The seasonally adjusted estimate of new homes available for sale at the end of April was 175,000, the least amount of new single-family homes for sale since the Census Bureau started keeping track in 1963.
This was the second straight month that new single-family homes sales have increased even following a downward adjustment of March’s sales. Builders sold at a seasonally adjusted rate 323,000 new single-family homes in April compared to the revised amount of 301,000 new single-family homes in March. This was still down from April 2010’s estimated amount of 420,000 homes.
The average sales price for a new home was $268,900, which was up from $250,000 in March and the median sales price for April was $217,900, which was also up from $214,500 in March.
By region, in the Northeast builders sold 28,000 new single-family homes, which was up 7.7 percent from March and down 22.2 percent from April 2010. In the Midwest, 43,000 new single-family homes were sold, which was up 4.9 percent from March and down 21.8 percent from April 2010.
Single-family home sales in the South were at a rate of 168,000, which was up 4.3 percent from March, but down 24.7 percent from April 2010 and the largest gains were experienced in the West as single-family homes sold at a rate of 84,000 homes which was up 15.1 percent from March, but still down 20.8 percent from April 2010. All sales are based on a seasonally adjusted annual rate.
Tags: Census Bureau, single-family homes, new home sales, new home builders, average sales price, median sales price
Source:
Census Bureau
Census Bureau
Lack of First Time Buyers Invites Investors and Lower Prices
May 20, 2011 (Chris Moore)
The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey’s Distressed Property Index (DPI), fell slightly to 47.7 percent in April but predicts a continuing downward pricing trend as the absence of any government first-time buyers assistance has increased the gap between the number first time buyers on the market and the amount of distressed properties, which they traditionally are more likely to purchase. This has lead to an increase in investor activity in the market that then purchases the excess distressed properties at bargain-basement prices.
As Campbell/Inside Mortgage Finance explains, “First-time homebuyers absorb housing supply, while move-up and move-down buyers produce no net take-up in inventory. When the supply of distressed properties exceeds the demand from first-time homebuyers, investors must step into the market to buy these properties, often at bargain-basement prices."
According to the HousingPulse survey, the proportion of first-time buyers in April fell to 35.7 percent versus 43.4 percent a year earlier, which was during the end of the government’s first-time buyer assistance program. Consequently, the gap between the number of first-time home buyers and the distressed property supply last year was 3.5 percent.
However, with the absence of any government assistance this year, the gap between first-time homebuyers and distressed property supply now stands at 12.0 percent. To help make up that gap, investors have stepped in and now account for 23 percent of the housing market in the month of April, compared to 18 percent a year earlier. And as the National Association of Realtors (NAR) noted in their recent existing home sales report, distressed properties generally sell at a 20 percent discount.
“The normal proportion of first-time homebuyers is about one-third of the market and that’s where we are now,” said Thomas Popik, research director for Campbell Surveys. “Unfortunately, that’s not enough demand to absorb the excess supply from homeowners defaulting on their mortgages. As a result, we expect existing home sales for the spring/summer buying season to be significantly below last year and that will put continued downward pressure on home prices.”
Plainly stated…too much distressed property supply, not enough buyers. An excess supply of distressed properties and a larger amount of purchases by investors means lower prices.
The survey also reports finding foreclosed homes in move-in ready condition has also been a problem. Forty-five percent of foreclosed properties were damaged and not inhabitable without renovation in April. Since mortgage lenders generally will not finance a home in that condition, investor usually step in and buy them for cash and in April, 55 percent of damaged foreclosed properties were bought by investors, 27 percent were bought by first time home buyers.
Respondents of the survey also reported that first-time homebuyers were having trouble obtaining mortgages due to tougher underwriting standards, with frustration of obtaining a mortgage and not finding the home they wanted as complaints commonly heard by real estate agents.
Tags: Campbell/Inside Mortgage Finance, HousingPulse Tracking Survey, Distressed Property Index, distressed properties, first-time buyers assistance, distressed properties, investors, bargain basement prices
Source:
Campbell/Inside Mortgage Finance
The Campbell/Inside Mortgage Finance HousingPulse Tracking Survey’s Distressed Property Index (DPI), fell slightly to 47.7 percent in April but predicts a continuing downward pricing trend as the absence of any government first-time buyers assistance has increased the gap between the number first time buyers on the market and the amount of distressed properties, which they traditionally are more likely to purchase. This has lead to an increase in investor activity in the market that then purchases the excess distressed properties at bargain-basement prices.
As Campbell/Inside Mortgage Finance explains, “First-time homebuyers absorb housing supply, while move-up and move-down buyers produce no net take-up in inventory. When the supply of distressed properties exceeds the demand from first-time homebuyers, investors must step into the market to buy these properties, often at bargain-basement prices."
According to the HousingPulse survey, the proportion of first-time buyers in April fell to 35.7 percent versus 43.4 percent a year earlier, which was during the end of the government’s first-time buyer assistance program. Consequently, the gap between the number of first-time home buyers and the distressed property supply last year was 3.5 percent.
However, with the absence of any government assistance this year, the gap between first-time homebuyers and distressed property supply now stands at 12.0 percent. To help make up that gap, investors have stepped in and now account for 23 percent of the housing market in the month of April, compared to 18 percent a year earlier. And as the National Association of Realtors (NAR) noted in their recent existing home sales report, distressed properties generally sell at a 20 percent discount.
“The normal proportion of first-time homebuyers is about one-third of the market and that’s where we are now,” said Thomas Popik, research director for Campbell Surveys. “Unfortunately, that’s not enough demand to absorb the excess supply from homeowners defaulting on their mortgages. As a result, we expect existing home sales for the spring/summer buying season to be significantly below last year and that will put continued downward pressure on home prices.”
Plainly stated…too much distressed property supply, not enough buyers. An excess supply of distressed properties and a larger amount of purchases by investors means lower prices.
The survey also reports finding foreclosed homes in move-in ready condition has also been a problem. Forty-five percent of foreclosed properties were damaged and not inhabitable without renovation in April. Since mortgage lenders generally will not finance a home in that condition, investor usually step in and buy them for cash and in April, 55 percent of damaged foreclosed properties were bought by investors, 27 percent were bought by first time home buyers.
Respondents of the survey also reported that first-time homebuyers were having trouble obtaining mortgages due to tougher underwriting standards, with frustration of obtaining a mortgage and not finding the home they wanted as complaints commonly heard by real estate agents.
Tags: Campbell/Inside Mortgage Finance, HousingPulse Tracking Survey, Distressed Property Index, distressed properties, first-time buyers assistance, distressed properties, investors, bargain basement prices
Source:
Campbell/Inside Mortgage Finance
Existing Home Sales Continue Their Bumpy Ride
May 20, 2011 (Shirley Allen)
Existing home sales continued its ride along the bottom of the housing barrel as completed transactions declined 0.8 percent in April, 2011, compared to March according to the National Association of Realtors (NAR). Although the market has managed six gains in the last nine months, Lawrenece Yun, chief economist of NAR, says the market is “underperforming” especially considering this is generally the time of year sales are suppose to be gaining momentum and declining home prices and historically low mortgage interest rates have now made home buying highly affordable.
“Given the great affordability conditions, job creation and pent-up demand, home sales should be stronger,” he said. “Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations.”
A parallel survey conducted by NAR shows that 11 percent of Realtors reported that a contract had been cancelled in April due to an appraisal coming in below the negotiated price between a buyer and a seller. Ten percent of the appraisals reportedly delayed a contract and 14 percent required a contract to be negotiated to a lower sales price.
Existing home sales, which includes single-family homes, condominiums, and co-ops, sold at a seasonally adjusted rate of 5.05 million homes in April, down from a revised 5.09 million homes in March, and down from 5.8 million in April 2010.
NAR also reports that all-cash transactions stood at 31 percent, down from a record high of 35 percent in March. Investors account for the bulk of cash purchases. First time home buyers purchased 36 percent of the homes for sale, up from 33 percent in March. Investors stayed busy by capturing 20 percent of existing homes sales in April, which was down from 22 percent in March.
Distressed home sales continued to influence home prices as the national median home price was $163,700 with distressed properties typically being sold at about a 20 percent discount. Distressed home sales accounted for 37 percent of sales in April, down from 40 percent in March.
Housing inventories increased in April to 3.87 million existing homes available for sale. Based on current sales trends, that translates into a 9.2 month supply of homes.
Regionally, existing-home sales in the Northeast fell 7.5 percent to an annual pace of 740,000 in April and are 32.1 percent below a year-ago surge and in the Midwest existing-home sales rose 5.7 percent in April to a level of 1.12 million but are 16.4 percent below a cyclical peak in April 2010.
In the South, existing-home sales declined 1.0 percent to an annual pace of 1.95 million in April and are 9.3 percent below a year ago, while in the West, existing home sales slipped 1.6 percent to an annual level of 1.24 million in April and are 0.8 percent below April 2010.
The median price in the Northeast was $225,400, which is 7.3 percent below April 2010, while in the Midwest, the median price was $133,200, down 5.1 percent from a year ago.
The median price in the South was $142,800, which is 4.1 percent lower than April 2010 and in the West, the median price was $203,400, down 6.1 percent from a year ago.
Tags: NAR, existing home sales, underperforming market, affordable conditions, low mortgage rates, declining prices, low appraisals, cancelled contracts, median home price
Source:
NAR
Existing home sales continued its ride along the bottom of the housing barrel as completed transactions declined 0.8 percent in April, 2011, compared to March according to the National Association of Realtors (NAR). Although the market has managed six gains in the last nine months, Lawrenece Yun, chief economist of NAR, says the market is “underperforming” especially considering this is generally the time of year sales are suppose to be gaining momentum and declining home prices and historically low mortgage interest rates have now made home buying highly affordable.
“Given the great affordability conditions, job creation and pent-up demand, home sales should be stronger,” he said. “Although existing-home sales are expected to trend up unevenly through next year, unnecessarily tight credit is continuing to restrain the market, along with a steady level of low appraisals that result in contract cancellations.”
A parallel survey conducted by NAR shows that 11 percent of Realtors reported that a contract had been cancelled in April due to an appraisal coming in below the negotiated price between a buyer and a seller. Ten percent of the appraisals reportedly delayed a contract and 14 percent required a contract to be negotiated to a lower sales price.
Existing home sales, which includes single-family homes, condominiums, and co-ops, sold at a seasonally adjusted rate of 5.05 million homes in April, down from a revised 5.09 million homes in March, and down from 5.8 million in April 2010.
NAR also reports that all-cash transactions stood at 31 percent, down from a record high of 35 percent in March. Investors account for the bulk of cash purchases. First time home buyers purchased 36 percent of the homes for sale, up from 33 percent in March. Investors stayed busy by capturing 20 percent of existing homes sales in April, which was down from 22 percent in March.
Distressed home sales continued to influence home prices as the national median home price was $163,700 with distressed properties typically being sold at about a 20 percent discount. Distressed home sales accounted for 37 percent of sales in April, down from 40 percent in March.
Housing inventories increased in April to 3.87 million existing homes available for sale. Based on current sales trends, that translates into a 9.2 month supply of homes.
Regionally, existing-home sales in the Northeast fell 7.5 percent to an annual pace of 740,000 in April and are 32.1 percent below a year-ago surge and in the Midwest existing-home sales rose 5.7 percent in April to a level of 1.12 million but are 16.4 percent below a cyclical peak in April 2010.
In the South, existing-home sales declined 1.0 percent to an annual pace of 1.95 million in April and are 9.3 percent below a year ago, while in the West, existing home sales slipped 1.6 percent to an annual level of 1.24 million in April and are 0.8 percent below April 2010.
The median price in the Northeast was $225,400, which is 7.3 percent below April 2010, while in the Midwest, the median price was $133,200, down 5.1 percent from a year ago.
The median price in the South was $142,800, which is 4.1 percent lower than April 2010 and in the West, the median price was $203,400, down 6.1 percent from a year ago.
Tags: NAR, existing home sales, underperforming market, affordable conditions, low mortgage rates, declining prices, low appraisals, cancelled contracts, median home price
Source:
NAR
New Round of GSE Reform Bills Unveiled
May 19, 2011 (Chris Moore)
A new round of seven reform bills have been unveiled by House Financial Services Committee Republicans meant to continue the reform of Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac. This is on top of the eight bills passed by the Republican controlled House of Representatives that have not and probably will not be taken up by the Democratic controlled Senate.
Rep. Scott Garrett (R-NJ), Chairman of the House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, stated, “Republicans and Democrats in Congress, as well as the Obama administration, all agree that the current trajectory of Fannie Mae and Freddie Mac is unsustainable. We can no longer afford to sit back and allow the ongoing bailout of these failed institutions to continue. While special interest groups and the guardians of the status quo may not want to admit it, Fannie and Freddie’s days are numbered. It’s not a matter of if, but when – the quicker we begin the process of dismantling them the better off we’ll be.”
“Building on the momentum and success of the first round of bills, we are introducing these seven bills to continue with our efforts to end the bailout, protect taxpayers and get private capital off the sidelines. These seven bills were carefully designed to tie the hands of Fannie and Freddie so that they are no longer a drag on the American taxpayers, a threat to our economic security, and an impediment to private market growth and development.”
Here is a brief description of the bills to be introduced:
- Rep. Don Manzullo (R-IL) is the lead sponsor of legislation to prevent the Treasury Department from lowering the 10% dividend payment Fannie Mae and Freddie Mac pay to American taxpayers. This will ensure that the two entities continue to repay their debt to the taxpayers and that their ongoing bailout moves towards conclusion.
- Rep. Jason Chaffetz (R-UT) has introduced H.R. 463, the Fannie Mae and Freddie Mac Transparency Act of 2011, which would apply the freedom of Information Act (FOIA) to Fannie Mae and Freddie Mac while the entities are in conservatorship or receivership.
- Rep. Robert Hurt (R-VA) is the lead sponsor of legislation to require Fannie Mae and Freddie Mac to dispose of all non-mission critical assets.
- Rep. Michael Fitzpatrick (R-PA) is the lead sponsor of legislation to set a total dollar cap for the amount of money to be used for the bailout of Fannie Mae and Freddie Mac.
- Rep. Steve Stivers (R-OH) is the lead sponsor of legislation to ensure that new quasi-governmental replicas are not crated to replace Fannie Mae and Freddie Mac.
- Rep. Randy Neugebauer (R-TX), Chairman of the Financial Services Subcommittee on Oversight and Investigations, is the lead sponsor of legislation to prohibit taxpayer funding of Fannie Mae and Freddie Mac employee legal fees.
- Rep. Ed Royce (R-CA) is the lead sponsor of legislation to abolish the Affordable Housing Trust Fund.
House Republican GSE reform proposals now have a competing proposal as Congressman John Campbell (R-CA) and Congressman Gary Peters (D-MI) put forward a bill that would essentially create 5 new government agencies, which would require “low-level” government backed guarantees, instead of the 2 we currently have.
The proposal is similar to the one presented by the Mortgage Bankers Association 22 months ago. But for me, it all sounds a lot like the arguments we heard back in the 1970’s when Freddie Mac and Fannie Mae were created. Look where that got us.
Additional information and insight into the purpose of these bills is available at Rep. Garretts website.
Tags: House of Representatives, GSE, Freddie Mac, Fannie Mae, reform bills, Republicans, Democrats
A new round of seven reform bills have been unveiled by House Financial Services Committee Republicans meant to continue the reform of Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac. This is on top of the eight bills passed by the Republican controlled House of Representatives that have not and probably will not be taken up by the Democratic controlled Senate.
Rep. Scott Garrett (R-NJ), Chairman of the House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, stated, “Republicans and Democrats in Congress, as well as the Obama administration, all agree that the current trajectory of Fannie Mae and Freddie Mac is unsustainable. We can no longer afford to sit back and allow the ongoing bailout of these failed institutions to continue. While special interest groups and the guardians of the status quo may not want to admit it, Fannie and Freddie’s days are numbered. It’s not a matter of if, but when – the quicker we begin the process of dismantling them the better off we’ll be.”
“Building on the momentum and success of the first round of bills, we are introducing these seven bills to continue with our efforts to end the bailout, protect taxpayers and get private capital off the sidelines. These seven bills were carefully designed to tie the hands of Fannie and Freddie so that they are no longer a drag on the American taxpayers, a threat to our economic security, and an impediment to private market growth and development.”
Here is a brief description of the bills to be introduced:
- Rep. Don Manzullo (R-IL) is the lead sponsor of legislation to prevent the Treasury Department from lowering the 10% dividend payment Fannie Mae and Freddie Mac pay to American taxpayers. This will ensure that the two entities continue to repay their debt to the taxpayers and that their ongoing bailout moves towards conclusion.
- Rep. Jason Chaffetz (R-UT) has introduced H.R. 463, the Fannie Mae and Freddie Mac Transparency Act of 2011, which would apply the freedom of Information Act (FOIA) to Fannie Mae and Freddie Mac while the entities are in conservatorship or receivership.
- Rep. Robert Hurt (R-VA) is the lead sponsor of legislation to require Fannie Mae and Freddie Mac to dispose of all non-mission critical assets.
- Rep. Michael Fitzpatrick (R-PA) is the lead sponsor of legislation to set a total dollar cap for the amount of money to be used for the bailout of Fannie Mae and Freddie Mac.
- Rep. Steve Stivers (R-OH) is the lead sponsor of legislation to ensure that new quasi-governmental replicas are not crated to replace Fannie Mae and Freddie Mac.
- Rep. Randy Neugebauer (R-TX), Chairman of the Financial Services Subcommittee on Oversight and Investigations, is the lead sponsor of legislation to prohibit taxpayer funding of Fannie Mae and Freddie Mac employee legal fees.
- Rep. Ed Royce (R-CA) is the lead sponsor of legislation to abolish the Affordable Housing Trust Fund.
House Republican GSE reform proposals now have a competing proposal as Congressman John Campbell (R-CA) and Congressman Gary Peters (D-MI) put forward a bill that would essentially create 5 new government agencies, which would require “low-level” government backed guarantees, instead of the 2 we currently have.
The proposal is similar to the one presented by the Mortgage Bankers Association 22 months ago. But for me, it all sounds a lot like the arguments we heard back in the 1970’s when Freddie Mac and Fannie Mae were created. Look where that got us.
Additional information and insight into the purpose of these bills is available at Rep. Garretts website.
Tags: House of Representatives, GSE, Freddie Mac, Fannie Mae, reform bills, Republicans, Democrats
Low Interest Rates Make Fixed Rate Loans the Choice of Refinancers
May 19, 2011 (Brian Michael)
The continuing historically low mortgage interest rates have prompted refinancing borrowers to overwhelmingly choose fixed rate mortgage loans over adjustable rate mortgages (ARM). In the first quarter of 2011, when borrowers financed their existing mortgage, over 95 percent chose a fixed rate loan according to statistics compiled by Freddie Mac.
According to the recently released Quarterly Product Transition Report, an increasing share of refinancing borrowers chose to also shorten their loan terms. Of borrowers who paid off a 30 year fixed rate loan, 22 percent opted for a 15 year fixed rate loan and 12 percent opted for a 20 year fixed rate loan.
Refinancing borrowers who paid off a 20 year fixed rate loan chose a lesser 15 year fixed rate loan 63 percent of the time, while 8 percent retained a loan of the same length.
Frank Nothaft, vice president and chief economist of Freddie Mac explained, "The mortgage rate on 15-year fixed was about three-fourths percentage point below that on 30-year fixed during the first quarter. For borrowers motivated to refinance by low interest rates, they could obtain even lower rates by shortening their term. In the first quarter we saw the largest share of borrowers shortening their term while refinancing in seven years."
Borrowers who had a hybrid ARM chose to refinance to a fixed rate mortgage 84 percent of the time in the first quarter. Of those, 74 percent chose a 30 year fixed rate mortgage, 4 percent chose a 20 year fixed rate mortgage, and 6 percent chose a 15 year fixed rate mortgage. Sixteen percent felt comfortable enough with their ARMs to chose the same loan again.
Refinancing borrowers who had 1-Year ARMs chose to refinance to a fixed rate mortgage 89 percent of the time. Sixty-two percent of those chose a 30 year fixed rate mortgage, 22 percent chose a 15 year fixed rate mortgage, and the reminder chose 20 year fixed rate mortgages.
Those borrowers that refinanced balloon loans did so without hesitation as 96 percent chose a fixed rate mortgage. Sixty four percent chose a 30 year fixed rate mortgage, 21 percent chose a 15 year fixed rate mortgage, and 11 percent went with a 20 year fixed rate mortgage.
"Fixed mortgage rates averaged 4.85 percent for 30-year loans and 4.12 percent for 15-year product during the first quarter in Freddie Mac's Primary Mortgage Market Survey®, well below long-term averages,” Nothaft added. “The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 6 percent at the end of 2010. It's no wonder we continue to see strong refinance activity into fixed-rate loans.”
Tags: Freddie Mac, 30 year fixed rate mortgage, 20 year fixed rate mortgage, 15 year fixed rate mortgage, adjustable rate mortgage, ARM, hybrid ARM, balloon loan
Source:
Freddie Mac
The continuing historically low mortgage interest rates have prompted refinancing borrowers to overwhelmingly choose fixed rate mortgage loans over adjustable rate mortgages (ARM). In the first quarter of 2011, when borrowers financed their existing mortgage, over 95 percent chose a fixed rate loan according to statistics compiled by Freddie Mac.
According to the recently released Quarterly Product Transition Report, an increasing share of refinancing borrowers chose to also shorten their loan terms. Of borrowers who paid off a 30 year fixed rate loan, 22 percent opted for a 15 year fixed rate loan and 12 percent opted for a 20 year fixed rate loan.
Refinancing borrowers who paid off a 20 year fixed rate loan chose a lesser 15 year fixed rate loan 63 percent of the time, while 8 percent retained a loan of the same length.
Frank Nothaft, vice president and chief economist of Freddie Mac explained, "The mortgage rate on 15-year fixed was about three-fourths percentage point below that on 30-year fixed during the first quarter. For borrowers motivated to refinance by low interest rates, they could obtain even lower rates by shortening their term. In the first quarter we saw the largest share of borrowers shortening their term while refinancing in seven years."
Borrowers who had a hybrid ARM chose to refinance to a fixed rate mortgage 84 percent of the time in the first quarter. Of those, 74 percent chose a 30 year fixed rate mortgage, 4 percent chose a 20 year fixed rate mortgage, and 6 percent chose a 15 year fixed rate mortgage. Sixteen percent felt comfortable enough with their ARMs to chose the same loan again.
Refinancing borrowers who had 1-Year ARMs chose to refinance to a fixed rate mortgage 89 percent of the time. Sixty-two percent of those chose a 30 year fixed rate mortgage, 22 percent chose a 15 year fixed rate mortgage, and the reminder chose 20 year fixed rate mortgages.
Those borrowers that refinanced balloon loans did so without hesitation as 96 percent chose a fixed rate mortgage. Sixty four percent chose a 30 year fixed rate mortgage, 21 percent chose a 15 year fixed rate mortgage, and 11 percent went with a 20 year fixed rate mortgage.
"Fixed mortgage rates averaged 4.85 percent for 30-year loans and 4.12 percent for 15-year product during the first quarter in Freddie Mac's Primary Mortgage Market Survey®, well below long-term averages,” Nothaft added. “The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 6 percent at the end of 2010. It's no wonder we continue to see strong refinance activity into fixed-rate loans.”
Tags: Freddie Mac, 30 year fixed rate mortgage, 20 year fixed rate mortgage, 15 year fixed rate mortgage, adjustable rate mortgage, ARM, hybrid ARM, balloon loan
Source:
Freddie Mac
HUD Adds South Dakota to List of States Receiving Disaster Relief
May 19, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of South Dakota, providing support to homeowners and low-income renters who have been forced from their homes following heavy flooding in the month of March.
The counties of Aurora, Beadle, Brookings, Brown, Buffalo, Clark, Codington, Day, Edmunds, Faulk, Grant, Hamlin, Hand, Hughes, Hyde, Jackson, Jerauld, Kingsbury, Lake, Marshall, Miner, Moody, Perkins, Potter, Roberts, Sanborn, Spink and Sully have been declared disaster areas and are eligible for foreclosure relief and other assistance to certain families.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
- Offering the state of South Dakota and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD's Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
- Making insurance available for both mortgages and home rehabilitation– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
- Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
For more information, visit www.hud.gov.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of South Dakota, providing support to homeowners and low-income renters who have been forced from their homes following heavy flooding in the month of March.
The counties of Aurora, Beadle, Brookings, Brown, Buffalo, Clark, Codington, Day, Edmunds, Faulk, Grant, Hamlin, Hand, Hughes, Hyde, Jackson, Jerauld, Kingsbury, Lake, Marshall, Miner, Moody, Perkins, Potter, Roberts, Sanborn, Spink and Sully have been declared disaster areas and are eligible for foreclosure relief and other assistance to certain families.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
- Offering the state of South Dakota and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD's Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
- Making insurance available for both mortgages and home rehabilitation– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
- Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
For more information, visit www.hud.gov.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
National Mortgage Loan Delinquency Rates Improve in First Quarter
May 18, 2011 (Brian Michael)
The national mortgage delinquency rate decreased to 6.19 percent in the first quarter of 2011 according to credit giant TransUnion. Loans in which borrowers were 60 days or more past due declined for the fifth consecutive quarter and TransUnion predicts that delinquencies are expected remain flat or slow in their decline despite the continuing decline in housing prices.
"Decreasing home prices can be risky because they exert upward pressure on mortgage delinquency rates. The fact that mortgage delinquency continues to decline despite this situation demonstrates that today's borrowers are less risky," said Tim Martin, group vice president of the U.S. Housing Market in TransUnion's financial services business unit. "While many homeowners still face pressure to make ends meet, they have lived in their homes for a long time and have diligently been paying their mortgage each month. These are borrowers that have roots in their residential neighborhoods and may already have substantial equity invested."
TransUnion also reported that its 90-day Real Estate Inquiry Index dropped to its second lowest value of 26.04 in the first quarter of 2011. The index was created in 2000 and measures the demand for real estate credit.
"Until consumer confidence improves, and housing prices stabilize, demand for real estate credit will continue to remain sluggish," said Martin.
The mortgage delinquency rate decreased 3.4 percent in the first quarter of 2011 in comparison to the fourth quarter of 2010 and is down almost 8.6 percent from the year before and as a sign of growing improvement, sixty-eight percent of metropolitan statistical areas (MSA) in the U.S. experienced a decline in mortgage delinquency rates in the first quarter compared to only 44 percent last quarter.
The states with the highest mortgage delinquency rates in the first quarter were Florida (14.37%) and Nevada (14.19%), while the states with the lowest mortgage delinquency rates were North Dakota (1.54 %) and South Dakota (2.53%).
Tags: TransUnion, mortgage delinquency rate, housing price decline, real estate credit, consumer confidence
Source:
TransUnion
The national mortgage delinquency rate decreased to 6.19 percent in the first quarter of 2011 according to credit giant TransUnion. Loans in which borrowers were 60 days or more past due declined for the fifth consecutive quarter and TransUnion predicts that delinquencies are expected remain flat or slow in their decline despite the continuing decline in housing prices.
"Decreasing home prices can be risky because they exert upward pressure on mortgage delinquency rates. The fact that mortgage delinquency continues to decline despite this situation demonstrates that today's borrowers are less risky," said Tim Martin, group vice president of the U.S. Housing Market in TransUnion's financial services business unit. "While many homeowners still face pressure to make ends meet, they have lived in their homes for a long time and have diligently been paying their mortgage each month. These are borrowers that have roots in their residential neighborhoods and may already have substantial equity invested."
TransUnion also reported that its 90-day Real Estate Inquiry Index dropped to its second lowest value of 26.04 in the first quarter of 2011. The index was created in 2000 and measures the demand for real estate credit.
"Until consumer confidence improves, and housing prices stabilize, demand for real estate credit will continue to remain sluggish," said Martin.
The mortgage delinquency rate decreased 3.4 percent in the first quarter of 2011 in comparison to the fourth quarter of 2010 and is down almost 8.6 percent from the year before and as a sign of growing improvement, sixty-eight percent of metropolitan statistical areas (MSA) in the U.S. experienced a decline in mortgage delinquency rates in the first quarter compared to only 44 percent last quarter.
The states with the highest mortgage delinquency rates in the first quarter were Florida (14.37%) and Nevada (14.19%), while the states with the lowest mortgage delinquency rates were North Dakota (1.54 %) and South Dakota (2.53%).
Tags: TransUnion, mortgage delinquency rate, housing price decline, real estate credit, consumer confidence
Source:
TransUnion
Tuesday, May 17, 2011
Home Builder Sales Expectations Decrease
May 16, 2011 (Brian Michael)
Future sales expectations from the nation’s homebuilders dropped two points in May, from 22 to 20, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Builder confidence in the market for newly built, single family homes remained unchanged at the low level of 16.
The HMI is derived from a survey that NAHB has been conducting for over 20 years. The index gauges builder perceptions of current single family home sales and sales expectations for the next six months as” good, fair, or poor.” Builders are also asked to rate traffic of prospective buyers as ““high to very high, average or low to very low.” Each component is then used to calculate a seasonally adjusted index where a score over 50 indicates builder’s view sales conditions as good.
Builder confidence has remained unchanged at 16 for the past six out of seven months with NAHB citing persistent concerns regarding competition from distressed property sales, lack of production credit, inaccurate appraisals and proposals to reduce government support of housing as reasons for the continuing low score.
Components of the index which gauge current sales conditions and the traffic of prospective buyers both increased by one point in May, to 16 and 14, respectively. The traffic gauge has reached its highest point since May of 2010.
“The HMI component index measuring traffic of prospective buyers increased by one point for the second time this year as prospective buyers show growing interest but remain extremely hesitant due to a number of factors,” said NAHB Chief Economist David Crowe. “Asked to identify reasons that potential customers are holding back at this time, 90 percent of builders surveyed said clients are concerned about being able to sell their existing home at a favorable price, while 73 percent said consumers think it will be difficult for them to get financing. Clearly, access to credit for both builders and buyers remains a considerable obstacle to the revival of the new-homes market.”
Regionally, the Northeast posted a 5-point decline to 15, the Midwest posted no change at 14, the South posted a one-point gain to 16, and the West posted a two-point decline to 16.
Tags: NAHB, Wells Fargo, Housing Market Index, HMI, homebuilders, sales expectations, builder confidence, single-family homes, competition, distressed properties, lack of credit, appraisals, government support
Source:
NAHB
Future sales expectations from the nation’s homebuilders dropped two points in May, from 22 to 20, according to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Builder confidence in the market for newly built, single family homes remained unchanged at the low level of 16.
The HMI is derived from a survey that NAHB has been conducting for over 20 years. The index gauges builder perceptions of current single family home sales and sales expectations for the next six months as” good, fair, or poor.” Builders are also asked to rate traffic of prospective buyers as ““high to very high, average or low to very low.” Each component is then used to calculate a seasonally adjusted index where a score over 50 indicates builder’s view sales conditions as good.
Builder confidence has remained unchanged at 16 for the past six out of seven months with NAHB citing persistent concerns regarding competition from distressed property sales, lack of production credit, inaccurate appraisals and proposals to reduce government support of housing as reasons for the continuing low score.
Components of the index which gauge current sales conditions and the traffic of prospective buyers both increased by one point in May, to 16 and 14, respectively. The traffic gauge has reached its highest point since May of 2010.
“The HMI component index measuring traffic of prospective buyers increased by one point for the second time this year as prospective buyers show growing interest but remain extremely hesitant due to a number of factors,” said NAHB Chief Economist David Crowe. “Asked to identify reasons that potential customers are holding back at this time, 90 percent of builders surveyed said clients are concerned about being able to sell their existing home at a favorable price, while 73 percent said consumers think it will be difficult for them to get financing. Clearly, access to credit for both builders and buyers remains a considerable obstacle to the revival of the new-homes market.”
Regionally, the Northeast posted a 5-point decline to 15, the Midwest posted no change at 14, the South posted a one-point gain to 16, and the West posted a two-point decline to 16.
Tags: NAHB, Wells Fargo, Housing Market Index, HMI, homebuilders, sales expectations, builder confidence, single-family homes, competition, distressed properties, lack of credit, appraisals, government support
Source:
NAHB
Foreclosure Time Bomb Getting Worse
May 13, 2011 (Chris Moore)
The massive delays in processing foreclosures threaten to prolong the effects of the current housing crisis and delay the ability of the housing market to recover. Like a ticking time bomb, the number of properties in the foreclosure inventory continues to expand as the amount of time it takes to complete a foreclosure in some states has now reached as long as 900 days.
According to RealtyTrac’s Foreclosure Market Report for April 2011, there were 219,258 foreclosure filings on U.S. properties in April of 2011, a 9 percent decrease from March and a 34 percent decrease from April 2010. Foreclosure filings consist of default notices, scheduled auctions, and bank repossessions. One in every 593 U.S. housing units received a foreclosure filing during April.
Foreclosure filings have decreased on an annual basis for seven straight months and have reached a 40 month low, so you would think this is a good thing, right? The problem is, it’s for the wrong reasons. The slowdown is largely a result of the delay in processing foreclosures, not the result of an improving housing market.
Foreclosures in the first quarter of 2011 took an average of 400 days from the initial default notice to completion. That’s up from an average of 340 days that was experienced in the first quarter of 2010 and a huge leap from the average of 151 days it took to foreclose a property in the first quarter of 2007.
And in some states the timeline is more than twice that! In New Jersey and New York the average time frame from initial default to completion was more than 900 days in the first quarter of 2011. Other states experiencing long delays are Florida, an average of 619 days to complete the foreclosure process, up from an average of 470 days in the first quarter of 2010 and an average of 169 days in the first quarter of 2007.
The foreclosure process in California took an average of 330 days in the first quarter of 2011, up from an average of 262 days, a year earlier, and up from 134 days in the first quarter of 2007.
As James J. Saccacio, chief executive officer of RealtyTrac, explains it, “The first delay occurs between delinquency and foreclosure, when lenders and services are no longer automatically pushing loans that are more than 90 days delinquent into foreclosure but are waiting longer to allow for loan modifications, short sales and possibly other disposition alternatives. Data from the Mortgage Bankers Association shows that about 3.7 million properties are in this seriously delinquent stage. The second delay occurs after foreclosure has started, when lenders are taking much longer than they were just a few years ago to complete the foreclosure process.”
So while the amount of homes receiving foreclosure filings are on the decrease, the foreclosure inventory continues to swell because properties cannot be moved through the system fast enough to the REO stage.
States that have judicial foreclosure procedures, like New York, are more likely to have longer foreclosure timelines than states that that use non-judicial foreclosures procedures because they use the court system to process foreclosures.
(Commentary!) Throw in activist judges, states, and politicians who are trying to force mortgage servicers into alternative methods to foreclosure, like loan modifications, and we should expect delays in foreclosure timelines to increase and foreclosure inventories to continue swelling which will inevitably delay a housing recovery.
Nevada for the 52nd consecutive month continued to have the highest foreclosure rate among the states in April with one in 97 housing units receiving a foreclosure filing. Arizona was second (one in 205), California was third (one in 240), Utah was fourth (one in 322) and Idaho was fifth (one in 325). Rounding out the top ten was Michigan, Florida, Georgia, Colorado, and Oregon.
In shear numbers, California was the champ with 55,869 properties receiving foreclosure filings, followed by Florida (19,649), Arizona (13,419), Michigan (12,996), Nevada (11,761), Illinois (10,055), Texas (8,793), Georgia (8,479), Ohio (7,962), and Colorado (4,379). These ten states represent 70 percent of the foreclosure filings in April.
Ka-boom!
RealtyTrac is the leading online marketplace of foreclosure properties, with more than 2 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. You can read the Foreclosure Market Report in its entirety here.
Tags: RealtyTrac, foreclosure properties, foreclosure filings, notice of default, auctions, bank repossessions, processing delays, housing market, housing crisis
The massive delays in processing foreclosures threaten to prolong the effects of the current housing crisis and delay the ability of the housing market to recover. Like a ticking time bomb, the number of properties in the foreclosure inventory continues to expand as the amount of time it takes to complete a foreclosure in some states has now reached as long as 900 days.
According to RealtyTrac’s Foreclosure Market Report for April 2011, there were 219,258 foreclosure filings on U.S. properties in April of 2011, a 9 percent decrease from March and a 34 percent decrease from April 2010. Foreclosure filings consist of default notices, scheduled auctions, and bank repossessions. One in every 593 U.S. housing units received a foreclosure filing during April.
Foreclosure filings have decreased on an annual basis for seven straight months and have reached a 40 month low, so you would think this is a good thing, right? The problem is, it’s for the wrong reasons. The slowdown is largely a result of the delay in processing foreclosures, not the result of an improving housing market.
Foreclosures in the first quarter of 2011 took an average of 400 days from the initial default notice to completion. That’s up from an average of 340 days that was experienced in the first quarter of 2010 and a huge leap from the average of 151 days it took to foreclose a property in the first quarter of 2007.
And in some states the timeline is more than twice that! In New Jersey and New York the average time frame from initial default to completion was more than 900 days in the first quarter of 2011. Other states experiencing long delays are Florida, an average of 619 days to complete the foreclosure process, up from an average of 470 days in the first quarter of 2010 and an average of 169 days in the first quarter of 2007.
The foreclosure process in California took an average of 330 days in the first quarter of 2011, up from an average of 262 days, a year earlier, and up from 134 days in the first quarter of 2007.
As James J. Saccacio, chief executive officer of RealtyTrac, explains it, “The first delay occurs between delinquency and foreclosure, when lenders and services are no longer automatically pushing loans that are more than 90 days delinquent into foreclosure but are waiting longer to allow for loan modifications, short sales and possibly other disposition alternatives. Data from the Mortgage Bankers Association shows that about 3.7 million properties are in this seriously delinquent stage. The second delay occurs after foreclosure has started, when lenders are taking much longer than they were just a few years ago to complete the foreclosure process.”
So while the amount of homes receiving foreclosure filings are on the decrease, the foreclosure inventory continues to swell because properties cannot be moved through the system fast enough to the REO stage.
States that have judicial foreclosure procedures, like New York, are more likely to have longer foreclosure timelines than states that that use non-judicial foreclosures procedures because they use the court system to process foreclosures.
(Commentary!) Throw in activist judges, states, and politicians who are trying to force mortgage servicers into alternative methods to foreclosure, like loan modifications, and we should expect delays in foreclosure timelines to increase and foreclosure inventories to continue swelling which will inevitably delay a housing recovery.
Nevada for the 52nd consecutive month continued to have the highest foreclosure rate among the states in April with one in 97 housing units receiving a foreclosure filing. Arizona was second (one in 205), California was third (one in 240), Utah was fourth (one in 322) and Idaho was fifth (one in 325). Rounding out the top ten was Michigan, Florida, Georgia, Colorado, and Oregon.
In shear numbers, California was the champ with 55,869 properties receiving foreclosure filings, followed by Florida (19,649), Arizona (13,419), Michigan (12,996), Nevada (11,761), Illinois (10,055), Texas (8,793), Georgia (8,479), Ohio (7,962), and Colorado (4,379). These ten states represent 70 percent of the foreclosure filings in April.
Ka-boom!
RealtyTrac is the leading online marketplace of foreclosure properties, with more than 2 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. You can read the Foreclosure Market Report in its entirety here.
Tags: RealtyTrac, foreclosure properties, foreclosure filings, notice of default, auctions, bank repossessions, processing delays, housing market, housing crisis
Homes Not Being Used as Piggy Banks Nearly as Often
May 13, 2011 (Chris Moore)
The housing bust, and subsequent housing price crash, has crimped Americans penchant of using their homes as piggy banks. Over the past 25 years, 62 percent of refinanced loans were “cash-out” loans where the borrower increased their loan balance by five percent or more, but now according to the latest report from Freddie Mac, only 25 percent of all refinanced loans in the first quarter of 2011 were cash-out loans.
According to the results of Freddie Macs first quarter refinance analysis, 3 out of 4 homeowners who refinanced their first lien mortgage either maintained about the same amount on their principal loan or paid additional funds to lower the amount of their mortgage principal.
Twenty-one percent of the homeowners reduced their principal balance by paying additional funds and 54 percent maintained the same loan amount, the highest share since Freddie Mac began keeping records in 1985.
As a comparison, in 2006, the peak of the housing and refinancing boom, borrowers took out $83.7 billion from their homes in the second quarter of that year. In the first quarter of 2011 an estimated $6.0 billion in net home equity was cashed out. No wonder Hummer went out of business!
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, "Consumers continue to reduce their debt, either by paying down or paying off their mortgage loan or reducing the interest cost. Homeowners' aggregate financial-obligation ratio, which peaked during the third quarter of 2007, had dropped by the end of 2010 to a level last seen more than a decade ago."
The median interest rate reduction for a 30-year fixed-rate mortgage was about 1.2 percentage points, or a savings of about 20 percent in interest costs. Over the first year of the refinance loan life, these borrowers will save over $1,800 in interest payments on a $200,000 loan.
The report found that the median appreciation of the collateral properties that refinanced was a negative six percent over the median prior loan life of five years, meaning the median life of the loans that were refinanced was five years and the median depreciation of those homes was six percent. By comparison, Freddie Mac’s House Price Index shows a 21 percent decline in home values in its portfolio from 2005 through the end of 2010.
It all adds up to a lot less coin in the piggy bank.
Tags: Freddie Mac, piggy banks, cash-out loans, refinanced loans, cash-in loans, mortgage principal, refinance analysis report, interest rate reduction
Source:
Freddie Mac
The housing bust, and subsequent housing price crash, has crimped Americans penchant of using their homes as piggy banks. Over the past 25 years, 62 percent of refinanced loans were “cash-out” loans where the borrower increased their loan balance by five percent or more, but now according to the latest report from Freddie Mac, only 25 percent of all refinanced loans in the first quarter of 2011 were cash-out loans.
According to the results of Freddie Macs first quarter refinance analysis, 3 out of 4 homeowners who refinanced their first lien mortgage either maintained about the same amount on their principal loan or paid additional funds to lower the amount of their mortgage principal.
Twenty-one percent of the homeowners reduced their principal balance by paying additional funds and 54 percent maintained the same loan amount, the highest share since Freddie Mac began keeping records in 1985.
As a comparison, in 2006, the peak of the housing and refinancing boom, borrowers took out $83.7 billion from their homes in the second quarter of that year. In the first quarter of 2011 an estimated $6.0 billion in net home equity was cashed out. No wonder Hummer went out of business!
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, "Consumers continue to reduce their debt, either by paying down or paying off their mortgage loan or reducing the interest cost. Homeowners' aggregate financial-obligation ratio, which peaked during the third quarter of 2007, had dropped by the end of 2010 to a level last seen more than a decade ago."
The median interest rate reduction for a 30-year fixed-rate mortgage was about 1.2 percentage points, or a savings of about 20 percent in interest costs. Over the first year of the refinance loan life, these borrowers will save over $1,800 in interest payments on a $200,000 loan.
The report found that the median appreciation of the collateral properties that refinanced was a negative six percent over the median prior loan life of five years, meaning the median life of the loans that were refinanced was five years and the median depreciation of those homes was six percent. By comparison, Freddie Mac’s House Price Index shows a 21 percent decline in home values in its portfolio from 2005 through the end of 2010.
It all adds up to a lot less coin in the piggy bank.
Tags: Freddie Mac, piggy banks, cash-out loans, refinanced loans, cash-in loans, mortgage principal, refinance analysis report, interest rate reduction
Source:
Freddie Mac
HUD Announces Disaster Relief for Three Additional States
May 12, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of Mississippi, Minnesota, and North Dakota, providing support to homeowners and low-income renters who have been forced from their homes following heavy flooding last week.
In Mississippi the counties of Adams, Bolivar, Claiborne, Coahoma, DeSoto, Humphreys, Issaquena, Jefferson, Sharkey, Tunica, Warren, Washington, Wilkinson and Yazoo have been declared disaster areas and are eligible for foreclosure relief and other assistance to certain families.
In Minnesota, the eligible areas are Big Stone, Blue Earth, Brown, Carver, Chippewa, Clay, Grant, Lac qui Parle, Le Sueur, Lyon, McLeod, Nicollet, Redwood, Renville, Scott, Sibley, Stevens, Traverse, Wilkin and Yellow Medicine Counties..
In North Dakota, the eligible counties are Barnes, Benson, Bottineau, Burke, Cass, Cavalier, Dickey, Eddy, Foster, Grand Forks, Grant, Griggs, Kidder, LaMoure, Logan, McHenry, McIntosh, McLean, Mercer, Morton, Mountrail, Nelson, Pembina, Pierce, Ramsey, Ransom, Renville, Richland, Rolette, Sargent, Sheridan, Spirit Lake Reservation, Steele, Stutsman, Towner, Traill, Walsh, Ward, Wells, and Williams.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
- Offering each of the States and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD's Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
- Making insurance available for both mortgages and home rehabilitation– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
- Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
For more information, visit www.hud.gov.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of Mississippi, Minnesota, and North Dakota, providing support to homeowners and low-income renters who have been forced from their homes following heavy flooding last week.
In Mississippi the counties of Adams, Bolivar, Claiborne, Coahoma, DeSoto, Humphreys, Issaquena, Jefferson, Sharkey, Tunica, Warren, Washington, Wilkinson and Yazoo have been declared disaster areas and are eligible for foreclosure relief and other assistance to certain families.
In Minnesota, the eligible areas are Big Stone, Blue Earth, Brown, Carver, Chippewa, Clay, Grant, Lac qui Parle, Le Sueur, Lyon, McLeod, Nicollet, Redwood, Renville, Scott, Sibley, Stevens, Traverse, Wilkin and Yellow Medicine Counties..
In North Dakota, the eligible counties are Barnes, Benson, Bottineau, Burke, Cass, Cavalier, Dickey, Eddy, Foster, Grand Forks, Grant, Griggs, Kidder, LaMoure, Logan, McHenry, McIntosh, McLean, Mercer, Morton, Mountrail, Nelson, Pembina, Pierce, Ramsey, Ransom, Renville, Richland, Rolette, Sargent, Sheridan, Spirit Lake Reservation, Steele, Stutsman, Towner, Traill, Walsh, Ward, Wells, and Williams.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
- Offering each of the States and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD's Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
- Making insurance available for both mortgages and home rehabilitation– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
- Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
For more information, visit www.hud.gov.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
Freddie Mac Market Report Still Gloomy with Patches of Sunlight
May 12, 2011 (Brian Michael)
Freddie Mac has released its Economic and Housing Market Outlook report for May predicting a pick-up in economic growth in the second half of 2011 with unemployment lingering above 8 percent through the rest of the year. Freddie notes on the sunny side, that homebuyer affordability remains extraordinarily high due to a combination of low mortgage rates and housing prices well off their cyclic peak.
Job creation is a major concern according to Freddie Mac. With the unemployment rate almost twice what it was before the recession, Freddie Mac says that approximately 260,000 jobs need to be created monthly, on a sustained basis, to reabsorb all the jobs lost during the recession.
Unfortunately, the report notes, the recovery is not growing fast enough. Freddie projects that 130,000 jobs must be created every month just to keep up with labor force growth and another 130,000 jobs need to be created each month over the next three years just to get employment back to pre-recession levels.
According to the U.S. Labor Department, 244,000 jobs were created last month, the best performance in almost five years. However, many analysts report that government statistics don’t take into account the amount of unemployed who give up looking for a job every month and drop off the government statistics. They believe that the job market actually contracted by as much as 100,000 to 180,000 jobs.
Regardless of which side of the fence you sit on, unemployment last month rose to 9 percent with the average duration of unemployment at 38.3 weeks, a slight improvement from the record 39 weeks in March. As a result, Freddie Mac says large numbers of workers who remain unemployed for long periods of time remain the predominant force behind seriously delinquent rates on mortgages.
Freddie Mac does however project that with an improving economy, they expect the rate of seriously delinquent mortgages, 8.6 percent at years end, to trend downward in 2011. Freddie is also projecting a 5 percent increase in home sales in 2011 over 2010.
Frank Nothaft, vice president and chief economist of Freddie Mac, said, “We also expect a pick-up in economic growth in the second half of 2011, which should help to propel additional job gains later this year. Still, while the labor market is moving in the right direction, it still has a long way to go before the unemployment rate moves sharply lower. And ditto for serious delinquency rates on mortgages.”
Tags: Freddie Mac, Market Outlook, unemployment, homebuyer affordability, job growth, job creation, pre-recession levels, jobs, seriously delinquent mortgages
Source:
Freddie Mac
Freddie Mac has released its Economic and Housing Market Outlook report for May predicting a pick-up in economic growth in the second half of 2011 with unemployment lingering above 8 percent through the rest of the year. Freddie notes on the sunny side, that homebuyer affordability remains extraordinarily high due to a combination of low mortgage rates and housing prices well off their cyclic peak.
Job creation is a major concern according to Freddie Mac. With the unemployment rate almost twice what it was before the recession, Freddie Mac says that approximately 260,000 jobs need to be created monthly, on a sustained basis, to reabsorb all the jobs lost during the recession.
Unfortunately, the report notes, the recovery is not growing fast enough. Freddie projects that 130,000 jobs must be created every month just to keep up with labor force growth and another 130,000 jobs need to be created each month over the next three years just to get employment back to pre-recession levels.
According to the U.S. Labor Department, 244,000 jobs were created last month, the best performance in almost five years. However, many analysts report that government statistics don’t take into account the amount of unemployed who give up looking for a job every month and drop off the government statistics. They believe that the job market actually contracted by as much as 100,000 to 180,000 jobs.
Regardless of which side of the fence you sit on, unemployment last month rose to 9 percent with the average duration of unemployment at 38.3 weeks, a slight improvement from the record 39 weeks in March. As a result, Freddie Mac says large numbers of workers who remain unemployed for long periods of time remain the predominant force behind seriously delinquent rates on mortgages.
Freddie Mac does however project that with an improving economy, they expect the rate of seriously delinquent mortgages, 8.6 percent at years end, to trend downward in 2011. Freddie is also projecting a 5 percent increase in home sales in 2011 over 2010.
Frank Nothaft, vice president and chief economist of Freddie Mac, said, “We also expect a pick-up in economic growth in the second half of 2011, which should help to propel additional job gains later this year. Still, while the labor market is moving in the right direction, it still has a long way to go before the unemployment rate moves sharply lower. And ditto for serious delinquency rates on mortgages.”
Tags: Freddie Mac, Market Outlook, unemployment, homebuyer affordability, job growth, job creation, pre-recession levels, jobs, seriously delinquent mortgages
Source:
Freddie Mac
Thursday, May 12, 2011
Thirty Year Fixed Rate Mortgage Declines to 4.63 Percent
May 12, 2011 (Shirley Allen)
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows mortgage rates declining for the fourth consecutive week. Mortgage rates for the 30-year fixed-rate averaged 4.63 percent, and the 15-year fixed averaged 3.82 percent, their lowest levels yet in 2011.
And
"Distressed homes are suppressing house prices in many local areas. The National Association of Realtors® reported these homes sold at a 20 percent discount in the first quarter of this year and accounted for 39 percent of all existing home sales, up from 36 percent in the first quarter of 2010. As a result, only 22 percent of metropolitan areas exhibited higher median sales prices from a year ago, compared to 51 percent in the fourth quarter of 2010.
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates
Source:
Freddie Mac
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), which shows mortgage rates declining for the fourth consecutive week. Mortgage rates for the 30-year fixed-rate averaged 4.63 percent, and the 15-year fixed averaged 3.82 percent, their lowest levels yet in 2011.
- 30-year fixed-rate mortgage (FRM) averaged 4.63 percent with an average 0.7 point for the week ending May 12, 2011, down from last week when it averaged 4.71 percent. Last year at this time, the 30-year FRM averaged 4.93 percent.
- 15-year FRM this week averaged 3.82 percent with an average 0.7 point, down from last week when it averaged 3.89 percent. A year ago at this time, the 15-year FRM averaged 4.30 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.41 percent this week, with an average 0.6 point, down from last week when it averaged 3.47 percent. A year ago, the 5-year ARM averaged 3.95 percent.
- 1-year Treasury-indexed ARM averaged 3.11 percent this week with an average 0.5 point, down from last week when it averaged 3.14 percent. At this time last year, the 1-year ARM averaged 4.02 percent.
And
"Distressed homes are suppressing house prices in many local areas. The National Association of Realtors® reported these homes sold at a 20 percent discount in the first quarter of this year and accounted for 39 percent of all existing home sales, up from 36 percent in the first quarter of 2010. As a result, only 22 percent of metropolitan areas exhibited higher median sales prices from a year ago, compared to 51 percent in the fourth quarter of 2010.
| 30-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 4.63 | 4.63 | 4.65 | 4.67 | 4.70 | 4.56 |
| Fees & Points | 0.7 | 0.6 | 0.9 | 0.6 | 0.7 | 0.8 |
| 15-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.82 | 3.83 | 3.83 | 3.83 | 3.90 | 3.76 |
| Fees & Points | 0.7 | 0.6 | 0.8 | 0.5 | 0.7 | 0.9 |
| 5/1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.41 | 3.63 | 3.36 | 3.38 | 3.50 | 3.21 |
| Fees & Points | 0.6 | 0.5 | 0.7 | 0.4 | 0.5 | 0.7 |
| Margin | 2.74 | 2.74 | 2.75 | 2.72 | 2.76 | 2.73 |
| 1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.11 | 3.24 | 2.89 | 3.52 | 3.04 | 2.88 |
| Fees & Points | 0.5 | 0.6 | 0.5 | 0.3 | 0.8 | 0.5 |
| Margin | 2.76 | 2.80 | 2.75 | 2.73 | 2.77 | 2.75 |
| The National Mortgage Rate Snapshot | One Year Ago | One Week Ago | ||||||
|---|---|---|---|---|---|---|---|---|
| 30-YR | 15-YR | 5/1-YR | 1-YR ARM | 30-YR | 15-YR | 5/1-YR | 1-YR ARM | |
| Average | 4.93 | 4.30 | 3.95 | 4.02 | 4.71 | 3.89 | 3.47 | 3.14 |
| Fees & Points | 0.7 | 0.6 | 0.6 | 0.6 | 0.7 | 0.7 | 0.6 | 0.5 |
| Margin | N/A | N/A | 2.74 | 2.75 | N/A | N/A | 2.74 | 2.76 |
Source:
Freddie Mac
Mortgage Applications Increase as Interest Rates Continue Decline
May 11, 2011 (Chris Moore)
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 6, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 8.2 percent on a seasonally adjusted basis from last week as both purchase applications and refinance applications increased on the heels of the lowest mortgage rates seen this year.
On an unadjusted basis, the Index increased 8.3 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 2.9 percent.
The seasonally adjusted Purchase Index increased 6.7 percent from one week earlier. The four week moving average is up 0.4 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index increased 7.1 percent compared with the previous week and was 25.8 percent lower than the same week one year ago.
“Rates dropped again last week as the Federal Reserve continued its QE2 asset purchase program. The 30-year fixed mortgage rate is now 46 basis points below its 2011 peak, and has decreased for four straight weeks by a total of 31 basis points,” said Michael Fratantoni, MBA’s Vice President of Research. “Over this four week span, the refinance index has increased by about 18 percent. Despite the recent increases however, refinance application volumes remain more than 50 percent below levels seen last fall.”
The Refinance Index increased 9.0 percent from the previous week. The four week moving average is up 4.3 percent.
The refinance share of mortgage activity increased to 63.1 percent of total applications from 62.7 percent last week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.5 percent from 6.7 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.67 percent from 4.76 percent last week, with points decreasing to 1.10 from 0.75 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.81 percent from 3.96 percent last week, with points decreasing to 1.05 from 0.82 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Sources:
MBA
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending May 6, 2011. The Market Composite Index, a measure of mortgage loan application volume, increased 8.2 percent on a seasonally adjusted basis from last week as both purchase applications and refinance applications increased on the heels of the lowest mortgage rates seen this year.
On an unadjusted basis, the Index increased 8.3 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 2.9 percent.
The seasonally adjusted Purchase Index increased 6.7 percent from one week earlier. The four week moving average is up 0.4 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index increased 7.1 percent compared with the previous week and was 25.8 percent lower than the same week one year ago.
“Rates dropped again last week as the Federal Reserve continued its QE2 asset purchase program. The 30-year fixed mortgage rate is now 46 basis points below its 2011 peak, and has decreased for four straight weeks by a total of 31 basis points,” said Michael Fratantoni, MBA’s Vice President of Research. “Over this four week span, the refinance index has increased by about 18 percent. Despite the recent increases however, refinance application volumes remain more than 50 percent below levels seen last fall.”
The Refinance Index increased 9.0 percent from the previous week. The four week moving average is up 4.3 percent.
The refinance share of mortgage activity increased to 63.1 percent of total applications from 62.7 percent last week.
The adjustable-rate mortgage (ARM) share of activity decreased to 6.5 percent from 6.7 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.67 percent from 4.76 percent last week, with points decreasing to 1.10 from 0.75 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.81 percent from 3.96 percent last week, with points decreasing to 1.05 from 0.82 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Sources:
MBA
Freddie Mac Market Report Still Gloomy with Patches of Sunlight
May 12, 2011 (Brian Michael)
Freddie Mac has released its Economic and Housing Market Outlook report for May predicting a pick-up in economic growth in the second half of 2011 with unemployment lingering above 8 percent through the rest of the year. Freddie notes on the sunny side, that homebuyer affordability remains extraordinarily high due to a combination of low mortgage rates and housing prices well off their cyclic peak.
Job creation is a major concern according to Freddie Mac. With the unemployment rate almost twice what it was before the recession, Freddie Mac says that approximately 260,000 jobs need to be created monthly, on a sustained basis, to reabsorb all the jobs lost during the recession.
Unfortunately, the report notes, the recovery is not growing fast enough. Freddie projects that 130,000 jobs must be created every month just to keep up with labor force growth and another 130,000 jobs need to be created each month over the next three years just to get employment back to pre-recession levels.
According to the U.S. Labor Department, 244,000 jobs were created last month, the best performance in almost five years. However, many analysts report that government statistics don’t take into account the amount of unemployed who give up looking for a job every month and drop off the government statistics. They believe that the job market actually contracted by as much as 100,000 to 180,000 jobs.
Regardless of which side of the fence you sit on, unemployment last month rose to 9 percent with the average duration of unemployment at 38.3 weeks, a slight improvement from the record 39 weeks in March. As a result, Freddie Mac says large numbers of workers who remain unemployed for long periods of time remain the predominant force behind seriously delinquent rates on mortgages.
Freddie Mac does however project that with an improving economy, they expect the rate of seriously delinquent mortgages, 8.6 percent at years end, to trend downward in 2011. Freddie is also projecting a 5 percent increase in home sales in 2011 over 2010.
Frank Nothaft, vice president and chief economist of Freddie Mac, said, “We also expect a pick-up in economic growth in the second half of 2011, which should help to propel additional job gains later this year. Still, while the labor market is moving in the right direction, it still has a long way to go before the unemployment rate moves sharply lower. And ditto for serious delinquency rates on mortgages.”
Tags: Freddie Mac, Market Outlook, unemployment, homebuyer affordability, job growth, job creation, pre-recession levels, jobs, seriously delinquent mortgages
Source:
Freddie Mac
Freddie Mac has released its Economic and Housing Market Outlook report for May predicting a pick-up in economic growth in the second half of 2011 with unemployment lingering above 8 percent through the rest of the year. Freddie notes on the sunny side, that homebuyer affordability remains extraordinarily high due to a combination of low mortgage rates and housing prices well off their cyclic peak.
Job creation is a major concern according to Freddie Mac. With the unemployment rate almost twice what it was before the recession, Freddie Mac says that approximately 260,000 jobs need to be created monthly, on a sustained basis, to reabsorb all the jobs lost during the recession.
Unfortunately, the report notes, the recovery is not growing fast enough. Freddie projects that 130,000 jobs must be created every month just to keep up with labor force growth and another 130,000 jobs need to be created each month over the next three years just to get employment back to pre-recession levels.
According to the U.S. Labor Department, 244,000 jobs were created last month, the best performance in almost five years. However, many analysts report that government statistics don’t take into account the amount of unemployed who give up looking for a job every month and drop off the government statistics. They believe that the job market actually contracted by as much as 100,000 to 180,000 jobs.
Regardless of which side of the fence you sit on, unemployment last month rose to 9 percent with the average duration of unemployment at 38.3 weeks, a slight improvement from the record 39 weeks in March. As a result, Freddie Mac says large numbers of workers who remain unemployed for long periods of time remain the predominant force behind seriously delinquent rates on mortgages.
Freddie Mac does however project that with an improving economy, they expect the rate of seriously delinquent mortgages, 8.6 percent at years end, to trend downward in 2011. Freddie is also projecting a 5 percent increase in home sales in 2011 over 2010.
Frank Nothaft, vice president and chief economist of Freddie Mac, said, “We also expect a pick-up in economic growth in the second half of 2011, which should help to propel additional job gains later this year. Still, while the labor market is moving in the right direction, it still has a long way to go before the unemployment rate moves sharply lower. And ditto for serious delinquency rates on mortgages.”
Tags: Freddie Mac, Market Outlook, unemployment, homebuyer affordability, job growth, job creation, pre-recession levels, jobs, seriously delinquent mortgages
Source:
Freddie Mac
April Scorecard Shows HAMP Slow But Steady
May 11, 2011 (Chris Moore)
After a fast start, the Home Affordable Modification Program (HAMP) has settled into the role as the tortoise in the race to the loan modification finish line. According to the Obama Administrations April Housing Scorecard, 35,432 loans were modified in March under HAMP bringing the total number of permanent loan modifications to 670,186.
In addition, the number of trial modifications that were started in March was at an almost equal amount of 36,827, which exceeded the previous six month average of 29,000 new trial modifications per month.
So far there have been 1,559,023 trial modifications started. Of the 670,186 permanent modifications that have been granted, 83,270 permanent modifications have been canceled, leaving 586,916 permanently modified loans that are still currently being paid. There have been 751,474 trial modifications canceled because the borrower fell behind on the payments during the trial period, was not able to provide required documentation, or was ineligible to participate in the program.
“The housing data in this month’s Scorecard offer continued mixed signals and some signs of weakness in the market – despite growing evidence of progress in the broader economy,” said HUD Assistant Secretary Raphael Bostic. “The Administration has been consistently committed to helping American homeowners and borrowers who have been hit hard by the economic recession and housing crisis, and our efforts have helped millions to avoid foreclosure and gain a more stable footing. That said, we still have more work to do to reach the many households who still face trouble.”
The report also reveals a direct relationship between how the size of the reduction on a borrower’s monthly mortgage payment significantly impacts the performance on the loan.
The report found that after one year, 11.7 percent of borrowers who saw a reduction of 50 percent or more on their mortgage payment were now 60+ days delinquent. Borrowers who saw payment reductions of less than 20% were almost three times more likely to be 60+ days delinquent (32.1%).
Overall, the median payment reduction for a permanent loan modification was 37 percent, or about $500.
"The numbers of homeowners both entering HAMP and converting from trial to permanent modifications each month are a powerful reminder of the role this program is playing in delivering much-needed assistance to families facing a housing market that is still very tough,” said Acting Assistant Secretary for Financial Stability Tim Massad. “And by providing modifications that are sustainable for homeowners over time, HAMP is setting standards for the industry that ultimately mean more options for more families to avoid foreclosure."
California continued to have the highest percent of HAMP loan modifications accounting for 23.8 percent of total activity. California to date has tallied 139,269 total HAMP permanent loan modifications.
Bank of America has had the most loan modifications with 150,449 total active modifications, followed by JPMorgan Chase with 100,661, and Wells Fargo Bank with 95,647 total active modifications.
Including HAMP, more than 4.5 million modification arrangements were started between April 2009 and the end of March 2011, that also included more than 808,000 FHA loss mitigation and early delinquency interventions, and nearly 2.2 million proprietary modifications under HOPE Now.
While some homeowners may have received help from more than one program, the total number of agreements offered more than doubled the number of foreclosure completions for the same period (1.9 million).
Homeowners granted permanent modifications realize aggregate reductions in monthly mortgage payments of nearly $5.9 billion, program to date.
And we’re not even at the finish line yet…
Tags: Making Home Affordable Program, HAMP, loan modifications, trial modifications, permanent modifications, mortgage payment reductions, median payment reduction, HOPE NOW
Source:
Treasury Department
After a fast start, the Home Affordable Modification Program (HAMP) has settled into the role as the tortoise in the race to the loan modification finish line. According to the Obama Administrations April Housing Scorecard, 35,432 loans were modified in March under HAMP bringing the total number of permanent loan modifications to 670,186.
In addition, the number of trial modifications that were started in March was at an almost equal amount of 36,827, which exceeded the previous six month average of 29,000 new trial modifications per month.
So far there have been 1,559,023 trial modifications started. Of the 670,186 permanent modifications that have been granted, 83,270 permanent modifications have been canceled, leaving 586,916 permanently modified loans that are still currently being paid. There have been 751,474 trial modifications canceled because the borrower fell behind on the payments during the trial period, was not able to provide required documentation, or was ineligible to participate in the program.
“The housing data in this month’s Scorecard offer continued mixed signals and some signs of weakness in the market – despite growing evidence of progress in the broader economy,” said HUD Assistant Secretary Raphael Bostic. “The Administration has been consistently committed to helping American homeowners and borrowers who have been hit hard by the economic recession and housing crisis, and our efforts have helped millions to avoid foreclosure and gain a more stable footing. That said, we still have more work to do to reach the many households who still face trouble.”
The report also reveals a direct relationship between how the size of the reduction on a borrower’s monthly mortgage payment significantly impacts the performance on the loan.
The report found that after one year, 11.7 percent of borrowers who saw a reduction of 50 percent or more on their mortgage payment were now 60+ days delinquent. Borrowers who saw payment reductions of less than 20% were almost three times more likely to be 60+ days delinquent (32.1%).
Overall, the median payment reduction for a permanent loan modification was 37 percent, or about $500.
"The numbers of homeowners both entering HAMP and converting from trial to permanent modifications each month are a powerful reminder of the role this program is playing in delivering much-needed assistance to families facing a housing market that is still very tough,” said Acting Assistant Secretary for Financial Stability Tim Massad. “And by providing modifications that are sustainable for homeowners over time, HAMP is setting standards for the industry that ultimately mean more options for more families to avoid foreclosure."
California continued to have the highest percent of HAMP loan modifications accounting for 23.8 percent of total activity. California to date has tallied 139,269 total HAMP permanent loan modifications.
Bank of America has had the most loan modifications with 150,449 total active modifications, followed by JPMorgan Chase with 100,661, and Wells Fargo Bank with 95,647 total active modifications.
Including HAMP, more than 4.5 million modification arrangements were started between April 2009 and the end of March 2011, that also included more than 808,000 FHA loss mitigation and early delinquency interventions, and nearly 2.2 million proprietary modifications under HOPE Now.
While some homeowners may have received help from more than one program, the total number of agreements offered more than doubled the number of foreclosure completions for the same period (1.9 million).
Homeowners granted permanent modifications realize aggregate reductions in monthly mortgage payments of nearly $5.9 billion, program to date.
And we’re not even at the finish line yet…
Tags: Making Home Affordable Program, HAMP, loan modifications, trial modifications, permanent modifications, mortgage payment reductions, median payment reduction, HOPE NOW
Source:
Treasury Department
HUD Announces Disaster Relief for Four States
May 11, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of Kentucky, Iowa, Missouri, and Tennessee, providing support to homeowners and low-income renters who have been forced from their homes following the severe storms, tornadoes, and straight-line winds last month.
In Kentucky the counties of Ballard, Boone, Bracken, Campbell, Carlisle, Carroll, Carter, Crittenden, Daviess, Fleming, Fulton, Gallatin, Henderson, Hickman, Kenton, Lawrence, Livingston, McCracken, Morgan, Nicholas, Oldham, Owen, Union and Washington have been declared disaster areas and are eligible for foreclosure relief and other assistance to certain families.
In Missouri, the eligible areas are Butler, Mississippi, New Madrid, Saint Louis and Taney Counties. In Tennessee, the eligible counties are Chester, Davidson, Decatur, Dickson, Henderson, Humphreys, Lake, Shelby, and Sumner, and in Iowa, assistance is available statewide.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
- Offering the State of Tennesse and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD's Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
- Making insurance available for both mortgages and home rehabilitation– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
- Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
For more information, visit www.hud.gov.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of Kentucky, Iowa, Missouri, and Tennessee, providing support to homeowners and low-income renters who have been forced from their homes following the severe storms, tornadoes, and straight-line winds last month.
In Kentucky the counties of Ballard, Boone, Bracken, Campbell, Carlisle, Carroll, Carter, Crittenden, Daviess, Fleming, Fulton, Gallatin, Henderson, Hickman, Kenton, Lawrence, Livingston, McCracken, Morgan, Nicholas, Oldham, Owen, Union and Washington have been declared disaster areas and are eligible for foreclosure relief and other assistance to certain families.
In Missouri, the eligible areas are Butler, Mississippi, New Madrid, Saint Louis and Taney Counties. In Tennessee, the eligible counties are Chester, Davidson, Decatur, Dickson, Henderson, Humphreys, Lake, Shelby, and Sumner, and in Iowa, assistance is available statewide.
“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said HUD Secretary Shaun Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”
Available assistance includes:
- Offering the State of Tennesse and other entitlement communities the ability to re-allocate existing federal resources toward disaster relief– HUD's Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department's CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
- Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
- Making mortgage insurance available– HUD's Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
- Making insurance available for both mortgages and home rehabilitation– HUD's Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
- Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
For more information, visit www.hud.gov.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
Existing Home Sales Increase as Prices Continue to Tumble
May 11, 2011 (Chris Moore)
The spring selling season seems to have finally begun as existing home sales increased by 8.3% in the first quarter of 2011 according to the National Association of Realtors (NAR). Sales gains were experienced in 49 states and the District of Columbia, while median home prices of existing single-family homes continued to decline.
Total existing home sales rose to a seasonally adjusted annual rate of 5.14 million transactions in the first quarter, up from 4.7 million in the fourth quarter of 2010. Sales were only 0.8% below the 5.18 million pace experienced in the same quarter in 2010.
The largest sales increases were recorded in the lower price ranges which have been popular with investors and cash buyers. Selling rates for homes selling for $100,000 or less in the first quarter were 8.9% higher than in the first quarter of 2010. The larger volume of lower priced homes created a downward skew on the overall median price as the national median existing single-family home price fell to $158,700 in the first quarter, down 4.6% from $166,400 from the same quarter a year earlier.
Lawrence Yun, NAR chief economist, said, “The reading of quarterly price data can be volatile because they are based on the types of homes that are sold during the quarter. When buyers principally purchase distressed properties in a given market, the recorded prices will be very low, which is what we’re seeing now in much of the country,” he said. “Annual price data provides a better guide about the direction of the market in those areas.”
Purchases by investors increased to 21 percent of transactions compared to 18 percent a year earlier. Purchases by first time homebuyers decreased to 32 percent of transactions, down from 42 percent the previous year and repeat buyers accounted for 47 percent of purchases, an increase from 40 percent a year earlier. All cash home purchases rose to 33 percent from 27 percent in the first quarter of 2010.
Regionally, existing-home sales in the Northeast increased 0.8 percent in the first quarter to a level of 800,000 but are 7.3 percent below the first quarter of 2010. In the Midwest sales rose 7.9 percent in the first quarter to a pace of 1.09 million but are 5.0 percent below a year ago.
In the South, existing-home sales increased 8.5 percent in the first quarter to an annual rate of 1.96 million and are 2.8 percent higher than the first quarter of 2010 and in the West, sales jumped 13.5 percent in the first quarter to a level of 1.29 million and are 2.1 percent above a year ago.
The median existing single-family home price in the Northeast declined 5.0 percent to $234,100 in the first quarter from a year ago, while in the Midwest, prices fell 5.3 percent to $124,400 in the first quarter from the same period in 2010.
In the South, the median existing single-family home price slipped 0.6 percent to $141,800 in the first quarter from a year earlier and in the West, the median price fell 4.7 percent to $197,400 in the first quarter from the first quarter of 2010.
Tags: National Association of Realtors, NAR, existing home sales, median sales price, single-family home, seasonally adjusted annual rate, investors, first time homebuyers, cash purchases
Source:
NAR
The spring selling season seems to have finally begun as existing home sales increased by 8.3% in the first quarter of 2011 according to the National Association of Realtors (NAR). Sales gains were experienced in 49 states and the District of Columbia, while median home prices of existing single-family homes continued to decline.
Total existing home sales rose to a seasonally adjusted annual rate of 5.14 million transactions in the first quarter, up from 4.7 million in the fourth quarter of 2010. Sales were only 0.8% below the 5.18 million pace experienced in the same quarter in 2010.
The largest sales increases were recorded in the lower price ranges which have been popular with investors and cash buyers. Selling rates for homes selling for $100,000 or less in the first quarter were 8.9% higher than in the first quarter of 2010. The larger volume of lower priced homes created a downward skew on the overall median price as the national median existing single-family home price fell to $158,700 in the first quarter, down 4.6% from $166,400 from the same quarter a year earlier.
Lawrence Yun, NAR chief economist, said, “The reading of quarterly price data can be volatile because they are based on the types of homes that are sold during the quarter. When buyers principally purchase distressed properties in a given market, the recorded prices will be very low, which is what we’re seeing now in much of the country,” he said. “Annual price data provides a better guide about the direction of the market in those areas.”
Purchases by investors increased to 21 percent of transactions compared to 18 percent a year earlier. Purchases by first time homebuyers decreased to 32 percent of transactions, down from 42 percent the previous year and repeat buyers accounted for 47 percent of purchases, an increase from 40 percent a year earlier. All cash home purchases rose to 33 percent from 27 percent in the first quarter of 2010.
Regionally, existing-home sales in the Northeast increased 0.8 percent in the first quarter to a level of 800,000 but are 7.3 percent below the first quarter of 2010. In the Midwest sales rose 7.9 percent in the first quarter to a pace of 1.09 million but are 5.0 percent below a year ago.
In the South, existing-home sales increased 8.5 percent in the first quarter to an annual rate of 1.96 million and are 2.8 percent higher than the first quarter of 2010 and in the West, sales jumped 13.5 percent in the first quarter to a level of 1.29 million and are 2.1 percent above a year ago.
The median existing single-family home price in the Northeast declined 5.0 percent to $234,100 in the first quarter from a year ago, while in the Midwest, prices fell 5.3 percent to $124,400 in the first quarter from the same period in 2010.
In the South, the median existing single-family home price slipped 0.6 percent to $141,800 in the first quarter from a year earlier and in the West, the median price fell 4.7 percent to $197,400 in the first quarter from the first quarter of 2010.
Tags: National Association of Realtors, NAR, existing home sales, median sales price, single-family home, seasonally adjusted annual rate, investors, first time homebuyers, cash purchases
Source:
NAR
CoreLogic Reports Home Prices Drop 8th Consecutive Month
May 11, 2011 (Brian Michael)
CoreLogic reports that year-over-year home prices have dropped for the 8th consecutive month according to data released in its March Home Price Index (HPI). National home prices, including distressed home sales, declined by 7.5 percent in March compared to March 2010, which follows a 5.8* percent decline in February.
The effect of distressed sales on home prices has been huge as the HPI notes that excluding distressed sales, year-over-year prices would have only declined by 0.96 percent in March and 2.0* percent in February.
“Last year the First Time Homebuyer Tax Credit pulled a significant number of sales forward and, to an extent, artificially supported prices. So, absent the tax credit, it is understandable that we see prices continue to decline when compared with last year,” said Mark Fleming, chief economist with CoreLogic. “As we move further away from that support, we will see a leveling of prices and eventually organic improvements in the market.”
In addition, more Core Based Statistical Areas (CBSAs) showed year-over year declines in March with 92 CBSAs recording pricing declines compared to 82 CBSAs showing declines in February.
The peak-to-current price change in the national HPI (from April 2006 to March 2011), including distressed transactions, was -34.8 percent, while the peak-to-current price change, excluding distressed transactions in the HPI for the same period, was -22.5 percent.
Distressed home sales include short sales and Real Estate Owned (REO) transactions.
The five states with the highest appreciation including distressed sales were: West Virginia (+7.7 percent), North Dakota (+4.1 percent), New York (+3.5 percent), Alaska (+2.4 percent) and Maine (+0.4 percent).
The five states with the greatest depreciation including distressed sales were: Idaho (-13.3 percent), Arizona (-12.3 percent), Michigan (-11.9 percent), Florida (-10.6 percent) and Illinois (-10.6 percent).
The five states with the highest appreciation excluding distressed sales were: West Virginia (+11.5 percent), New York (+4.5 percent), Mississippi (+4.4 percent), North Dakota (+4.1 percent) and Alaska (+4.0 percent).
The five states with the greatest depreciation excluding distressed sales were: Nevada (-8.9 percent), Idaho (-8.8 percent), Arizona (-6.6 percent), Maine (-6.6 percent) and Minnesota (-5 percent).
CoreLogic (NYSE: CLGX) is a leading provider of information, analytics and business services. You can get a full copy of the Home Price Index here.
*February data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.
Tags: CoreLogic, home price index, HPI, U.S. home prices, distressed properties, distressed sales, depreciation, appreciation, foreclosures, short sales,REO properties
CoreLogic reports that year-over-year home prices have dropped for the 8th consecutive month according to data released in its March Home Price Index (HPI). National home prices, including distressed home sales, declined by 7.5 percent in March compared to March 2010, which follows a 5.8* percent decline in February.
The effect of distressed sales on home prices has been huge as the HPI notes that excluding distressed sales, year-over-year prices would have only declined by 0.96 percent in March and 2.0* percent in February.
“Last year the First Time Homebuyer Tax Credit pulled a significant number of sales forward and, to an extent, artificially supported prices. So, absent the tax credit, it is understandable that we see prices continue to decline when compared with last year,” said Mark Fleming, chief economist with CoreLogic. “As we move further away from that support, we will see a leveling of prices and eventually organic improvements in the market.”
In addition, more Core Based Statistical Areas (CBSAs) showed year-over year declines in March with 92 CBSAs recording pricing declines compared to 82 CBSAs showing declines in February.
The peak-to-current price change in the national HPI (from April 2006 to March 2011), including distressed transactions, was -34.8 percent, while the peak-to-current price change, excluding distressed transactions in the HPI for the same period, was -22.5 percent.
Distressed home sales include short sales and Real Estate Owned (REO) transactions.
The five states with the highest appreciation including distressed sales were: West Virginia (+7.7 percent), North Dakota (+4.1 percent), New York (+3.5 percent), Alaska (+2.4 percent) and Maine (+0.4 percent).
The five states with the greatest depreciation including distressed sales were: Idaho (-13.3 percent), Arizona (-12.3 percent), Michigan (-11.9 percent), Florida (-10.6 percent) and Illinois (-10.6 percent).
The five states with the highest appreciation excluding distressed sales were: West Virginia (+11.5 percent), New York (+4.5 percent), Mississippi (+4.4 percent), North Dakota (+4.1 percent) and Alaska (+4.0 percent).
The five states with the greatest depreciation excluding distressed sales were: Nevada (-8.9 percent), Idaho (-8.8 percent), Arizona (-6.6 percent), Maine (-6.6 percent) and Minnesota (-5 percent).
CoreLogic (NYSE: CLGX) is a leading provider of information, analytics and business services. You can get a full copy of the Home Price Index here.
*February data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.
Tags: CoreLogic, home price index, HPI, U.S. home prices, distressed properties, distressed sales, depreciation, appreciation, foreclosures, short sales,REO properties
Housing Prices Double Dip; Hitting New Post-Crash Lows
May 9, 2011 (Brian Moore)
Home prices double dipped in April 2011 as home prices dropped nationally 0.7 percent below the prior lows experienced in March 2009 according to the latest Home Data Index (HDI) Market Report released by housing data firm Clear Capital.
Nationally, quarterly home prices have declined 4.9 percent, while year-over-year prices have decreased 5.0 percent. Over the last nine months, home prices have fallen 11.5 percent, a rate of decline not seen since 2008. All the Metropolitan Statistical Areas (MSA) suffered quarter-over-quarter price declines.
REO saturation rates continued to steadily climb, reaching 34.5 percent of all sales, the ninth consecutive month that REO sales have increased.
“The latest data through April shows a continued increase in the proportion of distressed sales that are taking hold in markets nationwide,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “With more than one-third of national home sales being REO, market prices are being weighed down as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales."
Of the four regions, only the Midwest has yet to double dip. Citing the effects of the increased distressed sales activity, Clear Capital declared last month that the Western region was the first to double dip, followed by the South and Northeast this month for the same reason.
All quarterly price changes in the top 15 major markets slid into negative territory as REO saturation climbed among 11 of the 15 of the highest performing markets (led by the 53.7% rate in Las Vegas). Year-over-year price changes in 13 of the 15 markets slid into negative territory.
The MSA’s with the worse quarter-over-quarter price declines were Detroit-Warren-Livonia, Michigan (-13.4%), Hartford-West Hartford-East Hartford, Connecticut (-12.8%), Milwaukee-Waukesha-West Allis, Wisconsin (-12.6%), Cleveland-Elyria-Mentor, Ohio (-11.2%), and Chicago-Naperville-Joliet, Illinois (-9.7%). Seven of the lowest performing MSA’s are from the Midwest with Detroit remaining the worst performing market for the fourth consecutive month.
The highest performing MSA’s were Charlotte-Gastonia-Concord, North Carolina (-1.4%), Washington DC-Arlington-Alexandra, Virginia (-1.6%), Tucson, Arizona (-1.7%), Dallas-Fort Worth-Arlington, Texas (-1.7%), and Philadelphia PA-Camden NJ-Wilmington DE (-2.2%).
Clear Capital remains hopeful of a spring home sales revival following the new lows in home prices this past winter but remains cautious as they note that this will be the first year since 2008 that the home buying season is not accompanied by some type of homebuyer tax assistance program and the last time that happened, home prices fell sharply.
You can read the report in its entirety on Clear Capitals website.
Tags: Clear Capital, Home Data Index, HDI, Market Report, price declines, double dip, REO saturation rates, distressed sales, homebuyer assistance program, housing prices
Home prices double dipped in April 2011 as home prices dropped nationally 0.7 percent below the prior lows experienced in March 2009 according to the latest Home Data Index (HDI) Market Report released by housing data firm Clear Capital.
Nationally, quarterly home prices have declined 4.9 percent, while year-over-year prices have decreased 5.0 percent. Over the last nine months, home prices have fallen 11.5 percent, a rate of decline not seen since 2008. All the Metropolitan Statistical Areas (MSA) suffered quarter-over-quarter price declines.
REO saturation rates continued to steadily climb, reaching 34.5 percent of all sales, the ninth consecutive month that REO sales have increased.
“The latest data through April shows a continued increase in the proportion of distressed sales that are taking hold in markets nationwide,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “With more than one-third of national home sales being REO, market prices are being weighed down as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales."
Of the four regions, only the Midwest has yet to double dip. Citing the effects of the increased distressed sales activity, Clear Capital declared last month that the Western region was the first to double dip, followed by the South and Northeast this month for the same reason.
All quarterly price changes in the top 15 major markets slid into negative territory as REO saturation climbed among 11 of the 15 of the highest performing markets (led by the 53.7% rate in Las Vegas). Year-over-year price changes in 13 of the 15 markets slid into negative territory.
The MSA’s with the worse quarter-over-quarter price declines were Detroit-Warren-Livonia, Michigan (-13.4%), Hartford-West Hartford-East Hartford, Connecticut (-12.8%), Milwaukee-Waukesha-West Allis, Wisconsin (-12.6%), Cleveland-Elyria-Mentor, Ohio (-11.2%), and Chicago-Naperville-Joliet, Illinois (-9.7%). Seven of the lowest performing MSA’s are from the Midwest with Detroit remaining the worst performing market for the fourth consecutive month.
The highest performing MSA’s were Charlotte-Gastonia-Concord, North Carolina (-1.4%), Washington DC-Arlington-Alexandra, Virginia (-1.6%), Tucson, Arizona (-1.7%), Dallas-Fort Worth-Arlington, Texas (-1.7%), and Philadelphia PA-Camden NJ-Wilmington DE (-2.2%).
Clear Capital remains hopeful of a spring home sales revival following the new lows in home prices this past winter but remains cautious as they note that this will be the first year since 2008 that the home buying season is not accompanied by some type of homebuyer tax assistance program and the last time that happened, home prices fell sharply.
You can read the report in its entirety on Clear Capitals website.
Tags: Clear Capital, Home Data Index, HDI, Market Report, price declines, double dip, REO saturation rates, distressed sales, homebuyer assistance program, housing prices
Fannie Mae Opens Homeowner Help Center in Philadelphia
May 9, 2011 (Shirley Allen)
Fannie Mae announced the opening of its ninth help center in Philadelphia, Pennsylvania. The new Philadelphia Mortgage Help Center will provide free education and counseling services to struggling homeowners in the Philadelphia area. The Center was developed in partnership with Consumer Counseling Service of Delaware County, local community and elected officials, and area mortgage servicers
The Center will provide services that have been available at the other eight Help Centers including reviewing mortgage loans with families who are behind on their mortgage or may be at-risk of foreclosure, discussing loan modification and other alternatives to foreclosure, processing their documentation and making timely decisions on any pending loan workout efforts. Services are available in both English and Spanish.
"Families are struggling and many of them are desperate to take action, but don't know where to turn. We are here to help," said Mike Williams, President & CEO, Fannie Mae. "Our Help Centers nationwide have met with more than 6,000 homeowners and we have been able to keep more than sixty percent in their homes. We are bringing our track record of success to help families in this area."
The center can also assist you if you’ve been a victim of fraud by fraudulent groups charging fees for modifications and foreclosure related services, and other mortgage related scams.
Free services are offered to those families who have mortgage owned by Fannie Mae. Find out if your home is owned by Fannie Mae by going to www.fanniemae.com/loanlookup or call 1-800-7FANNIE.
If your loan is not owned by Fannie Mae, contact Consumer Credit Counseling Service of Delaware Valley at Tel: (800) 989-2227 for assistance and advice to avoid foreclosure. You can also visit their website here.
"Partnering with Fannie Mae on the new Mortgage Help Center in Philadelphia allows us to assist and educate more local consumers who are struggling with housing and mortgage issues," said Patty Hasson, President and Executive Director of Consumer Credit Counseling Service of Delaware Valley. "Our shared commitment and combined expertise will be a great resource and benefit for the homeowners and region."
The Mortgage Help Center is available by appointment only and customers wishing to schedule a visit should call 866-442-8570.
Tags: Fannie Mae, CCCS of Delaware Valley, Mortgage Help Centers, mortgage servicers, mortgage modifications, repayment plans, mortgage loans, foreclosure, fraud
Source:
Fannie Mae
Fannie Mae announced the opening of its ninth help center in Philadelphia, Pennsylvania. The new Philadelphia Mortgage Help Center will provide free education and counseling services to struggling homeowners in the Philadelphia area. The Center was developed in partnership with Consumer Counseling Service of Delaware County, local community and elected officials, and area mortgage servicers
The Center will provide services that have been available at the other eight Help Centers including reviewing mortgage loans with families who are behind on their mortgage or may be at-risk of foreclosure, discussing loan modification and other alternatives to foreclosure, processing their documentation and making timely decisions on any pending loan workout efforts. Services are available in both English and Spanish.
"Families are struggling and many of them are desperate to take action, but don't know where to turn. We are here to help," said Mike Williams, President & CEO, Fannie Mae. "Our Help Centers nationwide have met with more than 6,000 homeowners and we have been able to keep more than sixty percent in their homes. We are bringing our track record of success to help families in this area."
The center can also assist you if you’ve been a victim of fraud by fraudulent groups charging fees for modifications and foreclosure related services, and other mortgage related scams.
Free services are offered to those families who have mortgage owned by Fannie Mae. Find out if your home is owned by Fannie Mae by going to www.fanniemae.com/loanlookup or call 1-800-7FANNIE.
If your loan is not owned by Fannie Mae, contact Consumer Credit Counseling Service of Delaware Valley at Tel: (800) 989-2227 for assistance and advice to avoid foreclosure. You can also visit their website here.
"Partnering with Fannie Mae on the new Mortgage Help Center in Philadelphia allows us to assist and educate more local consumers who are struggling with housing and mortgage issues," said Patty Hasson, President and Executive Director of Consumer Credit Counseling Service of Delaware Valley. "Our shared commitment and combined expertise will be a great resource and benefit for the homeowners and region."
The Mortgage Help Center is available by appointment only and customers wishing to schedule a visit should call 866-442-8570.
Tags: Fannie Mae, CCCS of Delaware Valley, Mortgage Help Centers, mortgage servicers, mortgage modifications, repayment plans, mortgage loans, foreclosure, fraud
Source:
Fannie Mae
Wednesday, May 4, 2011
LendingTree Weekly Mortgage Rate Pulse: Mortgage Rates Decline Slightly
May 4, 2011 (Shirley Allen)
According to the data collected on May 3, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.90 percent (5.10% APR) for 30-year fixed mortgages, which is down from 4.97 percent from the previous week, 4.10 percent (4.41% APR) for 15-year fixed mortgages, which is down from 4.15 percent reported in the previous week, and 3.44 percent (3.64% APR) for 5/1 adjustable rate mortgages (ARM), which was down from 3.59 percent reported in the previous weeks survey.
The lowest mortgage rates offered on the same day by lenders on the LendingTree network were 4.50 percent (4.64% APR) for a 30-year fixed mortgage, which was down from 4.625 percent offered the previous week, 3.75 percent (3.99% APR) for a 15-year fixed mortgage, which was the same rate offered the previous week, and 2.88 percent (3.17% APR) for a 5/1 ARM, which was down from 3.00 percent offered last week.
"Rates have been on a continuous decline for the past months, with 5/1 ARMs in particular making a resurgence," said Cameron Findlay, LendingTree Chief Economist. "Rates for 5/1 ARMS are now the lowest they've been in six months, with average rates as low as 3.44 percent. These low initial rates, combined with transparent caps and more conservative underwriting, make 5/1 ARMs an attractive option for some borrowers. Today, the lifetime cap on most 5/1 ARMs is 5%, which translates to a maximum possible rate of 8.44%. Not very intimidating considering 30 year fixed rates have averaged 8.88% over the last 40 years."
The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.
See how your state compares below by comparing mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders on the LendingTree network, average loan-to-value ratio and percentage of consumers with negative equity:
Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile.
More information is available here:
Tags: lendingtree, mortgage rates, mortgage loans, average home rates, 30 year fixed, 15 year fixed, 5/1 arm, adjustable rate mortgage, fixed mortgage, lenders
According to the data collected on May 3, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.90 percent (5.10% APR) for 30-year fixed mortgages, which is down from 4.97 percent from the previous week, 4.10 percent (4.41% APR) for 15-year fixed mortgages, which is down from 4.15 percent reported in the previous week, and 3.44 percent (3.64% APR) for 5/1 adjustable rate mortgages (ARM), which was down from 3.59 percent reported in the previous weeks survey.
The lowest mortgage rates offered on the same day by lenders on the LendingTree network were 4.50 percent (4.64% APR) for a 30-year fixed mortgage, which was down from 4.625 percent offered the previous week, 3.75 percent (3.99% APR) for a 15-year fixed mortgage, which was the same rate offered the previous week, and 2.88 percent (3.17% APR) for a 5/1 ARM, which was down from 3.00 percent offered last week.
"Rates have been on a continuous decline for the past months, with 5/1 ARMs in particular making a resurgence," said Cameron Findlay, LendingTree Chief Economist. "Rates for 5/1 ARMS are now the lowest they've been in six months, with average rates as low as 3.44 percent. These low initial rates, combined with transparent caps and more conservative underwriting, make 5/1 ARMs an attractive option for some borrowers. Today, the lifetime cap on most 5/1 ARMs is 5%, which translates to a maximum possible rate of 8.44%. Not very intimidating considering 30 year fixed rates have averaged 8.88% over the last 40 years."
The LendingTree Weekly Mortgage Rate Pulse is a snapshot of the lowest and average home loan rates available within the LendingTree network of lenders and is compiled every Wednesday from data that is gathered from the previous day to reflect the most up to date information on current mortgage rates.
See how your state compares below by comparing mortgage data including a snapshot of the lowest 30-year fixed rates offered by lenders on the LendingTree network, average loan-to-value ratio and percentage of consumers with negative equity:
STATE-BY-STATE MORTGAGE DATA 5/3/11 *Updated Quarterly |
|||
| STATE | LOWEST MORTGAGE |
LOAN-TO-VALUE RATIO* |
% WITH NEGATIVE EQUITY* |
| US Average | 4.50% (4.64% APR) | 70.2% | 35.0% |
| Alabama | 4.50% (4.63% APR) | 67.0% | 28.9% |
| Alaska | 4.75% (4.95% APR) | 66.3% | 17.3% |
| Arizona | 4.50% (4.64% APR) | 94.6% | 39.4% |
| Arkansas | 4.50% (4.62% APR) | 72.6% | 43.9% |
| California | 4.38% (4.48% APR) | 70.6% | 34.8% |
| Colorado | 4.50% (4.68% APR) | 71.9% | 22.2% |
| Connecticut | 4.38% (4.48% APR) | 59.5% | 43.3% |
| Delaware | 4.38% (4.48% APR) | 67.6% | 50.3% |
| District of Columbia | 4.38% (4.61% APR) | 58.3% | 25.5% |
| Florida | 4.38% (4.48% APR) | 90.8% | 41.1% |
| Georgia | 4.50% (4.63% APR) | 80.9% | 25.8% |
| Hawaii | 4.63% (4.75% APR) | 54.2% | 25.4% |
| Idaho | 4.50% (4.64% APR) | 73.4% | 29.8% |
| Illinois | 4.50% (4.62% APR) | 72.4% | 31.7% |
| Indiana | 4.50% (4.63% APR) | 69.4% | 28.5% |
| Iowa | 4.63% (4.82% APR) | 66.7% | 42.9% |
| Kansas | 4.63% (4.82% APR) | 70.5% | 31.8% |
| Kentucky | 4.38% (4.52% APR) | 67.6% | 53.1% |
| Louisiana | 4.63% (4.82% APR) | 78.5% | 75.5% |
| Maine | 4.50% (4.62% APR) | 58.6% | 30.1% |
| Maryland | 4.38% (4.47% APR) | 70.4% | 25.6% |
| Massachusetts | 4.63% (4.75% APR) | 60.7% | 46.0% |
| Michigan | 4.50% (4.63% APR) | 84.3% | 32.2% |
| Minnesota | 4.38% (4.48% APR) | 65.6% | 22.2% |
| Mississippi | 4.63% (4.82% APR) | 78.4% | 30.1% |
| Missouri | 4.50% (4.63% APR) | 71.6% | 31.0% |
| Montana | 4.75% (4.95% APR) | 60.2% | 33.4% |
| Nebraska | 4.63% (4.82% APR) | 72.3% | 46.5% |
| Nevada | 4.75% (4.95% APR) | 118.0% | 55.3% |
| New Hampshire | 4.50% (4.62% APR) | 69.8% | 25.2% |
| New Jersey | 4.38% (4.48% APR) | 62.2% | 29.0% |
| New Mexico | 4.50% (4.65% APR) | 66.4% | 45.8% |
| New York | 4.50% (4.61% APR) | 50.1% | 42.1% |
| North Carolina | 4.50% (4.64% APR) | 71.2% | 33.2% |
| North Dakota | 4.63% (4.82% APR) | 60.1% | 37.7% |
| Ohio | 4.50% (4.62% APR) | 75.4% | 27.0% |
| Oklahoma | 4.50% (4.62% APR) | 71.0% | 52.4% |
| Oregon | 4.50% (4.66% APR) | 69.6% | 19.6% |
| Pennsylvania | 4.38% (4.48% APR) | 62.5% | 75.7% |
| Rhode Island | 4.63% (4.82% APR) | 62.6% | 36.6% |
| South Carolina | 4.50% (4.63% APR) | 71.0% | 29.0% |
| South Dakota | 4.38% (4.49% APR) | N/A | N/A |
| Tennessee | 4.50% (4.63% APR) | 71.2% | 30.7% |
| Texas | 4.38% (4.50% APR) | 68.8% | 30.6% |
| Utah | 4.50% (4.74% APR) | 73.7% | 22.2% |
| Vermont | 4.63% (4.82% APR) | N/A | N/A |
| Virginia | 4.38% (4.61% APR) | 71.7% | 25.0% |
| Washington | 4.50% (4.63% APR) | 67.9% | 21.4% |
| West Virginia | 4.75% (4.95% APR) | 67.0% | 68.0% |
| Wisconsin | 4.75% (4.95% APR) | 68.3% | 35.6% |
| Wyoming | 4.50% (4.64% APR) | 64.2% | 23.0% |
More information is available here:
Tags: lendingtree, mortgage rates, mortgage loans, average home rates, 30 year fixed, 15 year fixed, 5/1 arm, adjustable rate mortgage, fixed mortgage, lenders
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