June 23, 2011 (Chris Moore)
Sales of new single-family homes declined 2.1 percent in May at a seasonally adjusted rate of 319,000 following two months of modest gains according to the latest data from the U.S. Census Bureau.
Sales had fallen to an all-time low of 279,000 in February and were followed by gains in March and April. Sales were 13.5 percent higher than the estimated 281,000 units sold in May of 2010.
The median sales price of the new homes sold in May was $222,600, which was up from 217,000 in April. The average sales price in May was $266,400, which was also up from 265,400 in April.
Only one of the four regions experienced a gain in new home sales from April to May, while two regions experienced declines and one was unchanged.
New single-family home sales in the South increased 2.4 percent, while the Midwest remained unchanged from April to May. The West reported a sales decline of 3.5 percent, while sales in the Northeast dropped 26.7 percent.
New home sales were up in 3 of the 4 regions from May of 2010, with only the Northeast suffering a decline. The Midwest reported a sales increase of 5.0 percent, the South saw an increase of 13.9 percent and the West reported a whopping 31.7 percent increase in new single-family home sales. Year-over-year new home sales in the Northeast declined 18.5 percent.
Tags: Census Bureau, new home sales, single-family homes, median sales price, average sales price
Source:
Census Bureau
Thursday, June 23, 2011
Mortgage Interest Rates Little Changed From Last Week
June 23, 2011 (Shirley Allen)
Mortgage interest rates again remained virtually unchanged from last week with the 30 year fixed rate at 4.50 percent and the 15 year fixed rate nudging up to 3.69 percent according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).
Fixed Rate Mortgages (FRM):
Thirty year and the 15 year FRMs again barely budged from the previous week with the 30 year FRM remaining unchanged at an average of 4.50 percent with an average 0.8 points, however, the effective rate was higher as last weeks rate was based on 0.7 points. Rates were down from 4.69 percent a year earlier.
The 15 year FRM averaged 3.69 this week with an average 0.7 points, up from an average of 3.67 last week and down from 4.13 percent a year ago.
Adjustable Rate Mortgages (ARM):
ARMs were also again mixed and barely moved in the last week as the 5-year Treasury-indexed hybrid ARM slid to 3.25 percent, which is down from 3.27 percent the previous week, with an average of 0.6 points. The 5 year ARM averaged 3.84 percent a year earlier.
The 1-year Treasury-indexed ARM increased this week to 2.99 percent, with an average of 0.5 points, from 2.97 percent the previous week. A year ago, the 1 year ARM averaged 3.77 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates were virtually unchanged this week amid further indications of a soft housing market. Although new construction on single-family homes ticked up in May from April, it was still below the overall pace set in 2010. Moreover, existing home sales fell 3.8 percent in May to the fewest since November 2010.”
"The Federal Reserve also reiterated that the housing sector continues to be depressed in its June 22nd policy committee statement. The S&P/Case-Shiller® National Home Price Index fell 2.1 percent between the fourth quarter of 2010 and first quarter 2011. Based on a recent survey by MarcoMarkets of 108 professional forecasters taken in early June, the index is predicted to decline another 1.5 percent by the fourth quarter of this year," Nothaft added.
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury
Source:
Freddie Mac
Mortgage interest rates again remained virtually unchanged from last week with the 30 year fixed rate at 4.50 percent and the 15 year fixed rate nudging up to 3.69 percent according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).
Fixed Rate Mortgages (FRM):
Thirty year and the 15 year FRMs again barely budged from the previous week with the 30 year FRM remaining unchanged at an average of 4.50 percent with an average 0.8 points, however, the effective rate was higher as last weeks rate was based on 0.7 points. Rates were down from 4.69 percent a year earlier.
The 15 year FRM averaged 3.69 this week with an average 0.7 points, up from an average of 3.67 last week and down from 4.13 percent a year ago.
Adjustable Rate Mortgages (ARM):
ARMs were also again mixed and barely moved in the last week as the 5-year Treasury-indexed hybrid ARM slid to 3.25 percent, which is down from 3.27 percent the previous week, with an average of 0.6 points. The 5 year ARM averaged 3.84 percent a year earlier.
The 1-year Treasury-indexed ARM increased this week to 2.99 percent, with an average of 0.5 points, from 2.97 percent the previous week. A year ago, the 1 year ARM averaged 3.77 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates were virtually unchanged this week amid further indications of a soft housing market. Although new construction on single-family homes ticked up in May from April, it was still below the overall pace set in 2010. Moreover, existing home sales fell 3.8 percent in May to the fewest since November 2010.”
"The Federal Reserve also reiterated that the housing sector continues to be depressed in its June 22nd policy committee statement. The S&P/Case-Shiller® National Home Price Index fell 2.1 percent between the fourth quarter of 2010 and first quarter 2011. Based on a recent survey by MarcoMarkets of 108 professional forecasters taken in early June, the index is predicted to decline another 1.5 percent by the fourth quarter of this year," Nothaft added.
| 30-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 4.50 | 4.51 | 4.52 | 4.53 | 4.52 | 4.46 |
| Fees & Points | 0.8 | 0.7 | 0.9 | 0.7 | 0.7 | 0.8 |
| 15-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.69 | 3.69 | 3.72 | 3.71 | 3.79 | 3.64 |
| Fees & Points | 0.7 | 0.7 | 1.0 | 0.6 | 0.7 | 0.8 |
| 5/1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.25 | 3.41 | 3.13 | 3.31 | 3.32 | 3.08 |
| Fees & Points | 0.6 | 0.5 | 0.8 | 0.4 | 0.5 | 0.6 |
| Margin | 2.74 | 2.75 | 2.75 | 2.73 | 2.76 | 2.73 |
| 1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 2.99 | 3.20 | 2.83 | 3.16 | 2.94 | 2.80 |
| Fees & Points | 0.5 | 0.5 | 0.5 | 0.3 | 0.8 | 0.5 |
| Margin | 2.76 | 2.79 | 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 | 4.69 | 4.13 | 3.84 | 3.77 | 4.50 | 3.67 | 3.27 | 2.97 |
| Fees & Points | 0.7 | 0.6 | 0.7 | 0.7 | 0.7 | 0.7 | 0.6 | 0.5 |
| Margin | N/A | N/A | 2.74 | 2.74 | N/A | N/A | 2.74 | 2.76 |
Source:
Freddie Mac
FHFA: Housing Prices at January 2004 Levels
June 23, 2011 (Brian Michael)
The Federal Housing Finance Agency (FHFA) reports that home prices rose 0.8 percent from March to April according to the agency’s June House Price Index (HPI). Since the market’s peak in April 2007, the HPI has dropped 19.3 percent leaving prices at roughly January 2004 levels.
FHFA gathers its data by calculating purchase prices of houses backed by mortgages sold to our guaranteed by Fannie Mae and Freddie Mac. The data is then broken down into nine geographic Census Divisions.
Month-over-month, six of the nine Census Divisions experienced price gains and three experienced price declines. The Mountain Division had the worse price decline of 1.3 percent, while the New England Division experienced the largest price gain of 2.2 percent.
None of the nine Divisions experienced year-over-year price gains. The worse performing division was the Mountain division which saw prices drop 10.9 percent. The West South Central Division saw the smallest year-over-year price decline with a 0.7 percent drop.
Census Divisions:
Pacific: Hawaii, Alaska, Washington, Oregon, California
Mountain: Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, New Mexico
West North Central: North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Kansas, Missouri
West South Central: Oklahoma, Arkansas, Texas, Louisiana
East North Central: Michigan, Wisconsin, Illinois, Indiana, Ohio
East South Central: Kentucky, Tennessee, Mississippi, Alabama
New England: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut
Middle Atlantic: New York, New Jersey, Pennsylvania
South Atlantic: Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida
Tags: FHFA, home prices, HPI, census divisions, price gains, price declines
Source:
FHFA
The Federal Housing Finance Agency (FHFA) reports that home prices rose 0.8 percent from March to April according to the agency’s June House Price Index (HPI). Since the market’s peak in April 2007, the HPI has dropped 19.3 percent leaving prices at roughly January 2004 levels.
FHFA gathers its data by calculating purchase prices of houses backed by mortgages sold to our guaranteed by Fannie Mae and Freddie Mac. The data is then broken down into nine geographic Census Divisions.
Month-over-month, six of the nine Census Divisions experienced price gains and three experienced price declines. The Mountain Division had the worse price decline of 1.3 percent, while the New England Division experienced the largest price gain of 2.2 percent.
None of the nine Divisions experienced year-over-year price gains. The worse performing division was the Mountain division which saw prices drop 10.9 percent. The West South Central Division saw the smallest year-over-year price decline with a 0.7 percent drop.
Census Divisions:
Pacific: Hawaii, Alaska, Washington, Oregon, California
Mountain: Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, New Mexico
West North Central: North Dakota, South Dakota, Minnesota, Nebraska, Iowa, Kansas, Missouri
West South Central: Oklahoma, Arkansas, Texas, Louisiana
East North Central: Michigan, Wisconsin, Illinois, Indiana, Ohio
East South Central: Kentucky, Tennessee, Mississippi, Alabama
New England: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut
Middle Atlantic: New York, New Jersey, Pennsylvania
South Atlantic: Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida
Tags: FHFA, home prices, HPI, census divisions, price gains, price declines
Source:
FHFA
State of Montana Eligible for Disaster Relief Assistance
June 23, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to the state of Montana, providing support to homeowners and low-income renters who have been forced from their homes due to the recent severe weather and flooding that swept through the state in late April.
The counties of Big Horn, Blaine, Broadwater, Carbon, Carter, Cascade, Chouteau, Custer, Dawson, Fallon, Fergus, Garfield, Golden Valley, Hill, Judith Basin, McCone, Meagher, Musselshell, Petroleum, Phillips, Powder River, Prairie, Roosevelt, Rosebud, Stillwater, Sweet Grass, Treasure, Valley, Wheatland, Wibaux, and Yellowstone are eligible for assistance along with the Crow, Fort Belknap and Rocky Boy’s Indian Reservations.
“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 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.
More information about disaster assistance is available on HUD’s website.
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 the state of Montana, providing support to homeowners and low-income renters who have been forced from their homes due to the recent severe weather and flooding that swept through the state in late April.
The counties of Big Horn, Blaine, Broadwater, Carbon, Carter, Cascade, Chouteau, Custer, Dawson, Fallon, Fergus, Garfield, Golden Valley, Hill, Judith Basin, McCone, Meagher, Musselshell, Petroleum, Phillips, Powder River, Prairie, Roosevelt, Rosebud, Stillwater, Sweet Grass, Treasure, Valley, Wheatland, Wibaux, and Yellowstone are eligible for assistance along with the Crow, Fort Belknap and Rocky Boy’s Indian Reservations.
“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 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.
More information about disaster assistance is available on HUD’s website.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
Shadow Inventory Gets a Little Smaller
June 23, 2011 (Chris Moore)
The current residential shadow inventory declined to 1.7 millions units in April 2011 from 1.9 million units reported in April 2010 according to real estate information provider CoreLogic. The decline was attributed to fewer new delinquencies and a higher level of distressed property sales.
CoreLogic estimates the total shadow inventory and visible inventory to be 5.8 million units in April 2011. That amount is down from an estimated 6.2 million units in April 2010. Shadow inventory are properties that are in some stage of foreclosure but are not yet listed for sale.
Although CoreLogic’s estimates of foreclosure inventories are less than those released yesterday by Lender Processing Service (LPS), data from both real estate information providers shows a downward trend in foreclosure inventories.
The current shadow inventory consists of 790,000 units that are seriously delinquent, 90 days of more behind in payments, 440,000 units that are in some stage of foreclosure and 440,000 units that are already in REO.
CoreLogic estimates that the shadow inventory peaked at 2 million units in January 2010.
Mark Fleming, chief economist for CoreLogic, stated, “The shadow inventory has declined by nearly one-fifth since it peaked in early 2010, in large part due to a reduced flow of newly delinquent loans in recent months. However, it will probably take several years for the shadow inventory to be absorbed given the long timelines in processing and completing foreclosures.”
The report also notes that an estimated 2 million units currently have underwater loans which are at increased risk of entering the shadow inventory if the owners’ ability to pay is impaired.
Tags: CoreLogic, shadow inventory, delinquencies, distress property, visible inventory, REO, underwater loans
Source:
CoreLogic
The current residential shadow inventory declined to 1.7 millions units in April 2011 from 1.9 million units reported in April 2010 according to real estate information provider CoreLogic. The decline was attributed to fewer new delinquencies and a higher level of distressed property sales.
CoreLogic estimates the total shadow inventory and visible inventory to be 5.8 million units in April 2011. That amount is down from an estimated 6.2 million units in April 2010. Shadow inventory are properties that are in some stage of foreclosure but are not yet listed for sale.
Although CoreLogic’s estimates of foreclosure inventories are less than those released yesterday by Lender Processing Service (LPS), data from both real estate information providers shows a downward trend in foreclosure inventories.
The current shadow inventory consists of 790,000 units that are seriously delinquent, 90 days of more behind in payments, 440,000 units that are in some stage of foreclosure and 440,000 units that are already in REO.
CoreLogic estimates that the shadow inventory peaked at 2 million units in January 2010.
Mark Fleming, chief economist for CoreLogic, stated, “The shadow inventory has declined by nearly one-fifth since it peaked in early 2010, in large part due to a reduced flow of newly delinquent loans in recent months. However, it will probably take several years for the shadow inventory to be absorbed given the long timelines in processing and completing foreclosures.”
The report also notes that an estimated 2 million units currently have underwater loans which are at increased risk of entering the shadow inventory if the owners’ ability to pay is impaired.
Tags: CoreLogic, shadow inventory, delinquencies, distress property, visible inventory, REO, underwater loans
Source:
CoreLogic
LendingTree Mortgage Rate Pulse: Fixed Rate Mortgages Move Higher
June 22, 2011 (Shirley Allen)
According to the data collected on June 21, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.70 percent (4.92% APR) for 30-year fixed mortgages, which is up from 4.67 percent reported the previous week, 3.95 percent (4.30% APR) for 15-year fixed mortgages, which is up from 3.88 percent reported the previous week, and 3.27 percent (3.42% APR) for 5/1 adjustable rate mortgages (ARM), which was down from 3.31 percent reported last week.
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 last week, 3.50 percent (3.74% APR) for a 15-year fixed mortgage, which was up from 3.375 percent offered last week, and 2.75 percent (3.12% APR) for a 5/1 ARM, which is the same rate offered the week before..
"Over the past several months, we've seen a surge of borrowers refinancing to shorten their loan term," said Chad Smith, senior vice president of mortgage services at LendingTree.com. "With 15-year rates hovering below 4 percent, many homeowners are jumping at the opportunity to save on interest with a shorter loan term and pay off their mortgage faster. For borrowers with flexibility around their monthly payment, this can be a great strategy and yield significant savings over the long term."
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.
Why do we use LendingTree’s Weekly Mortgage Rate Pulse? LendingTree is one the largest providers of mortgages on the internet who utilizes a large network of lenders that provide a more realistic snapshot of current market 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, freddie mac, lenders
According to the data collected on June 21, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.70 percent (4.92% APR) for 30-year fixed mortgages, which is up from 4.67 percent reported the previous week, 3.95 percent (4.30% APR) for 15-year fixed mortgages, which is up from 3.88 percent reported the previous week, and 3.27 percent (3.42% APR) for 5/1 adjustable rate mortgages (ARM), which was down from 3.31 percent reported last week.
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 last week, 3.50 percent (3.74% APR) for a 15-year fixed mortgage, which was up from 3.375 percent offered last week, and 2.75 percent (3.12% APR) for a 5/1 ARM, which is the same rate offered the week before..
"Over the past several months, we've seen a surge of borrowers refinancing to shorten their loan term," said Chad Smith, senior vice president of mortgage services at LendingTree.com. "With 15-year rates hovering below 4 percent, many homeowners are jumping at the opportunity to save on interest with a shorter loan term and pay off their mortgage faster. For borrowers with flexibility around their monthly payment, this can be a great strategy and yield significant savings over the long term."
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.
Why do we use LendingTree’s Weekly Mortgage Rate Pulse? LendingTree is one the largest providers of mortgages on the internet who utilizes a large network of lenders that provide a more realistic snapshot of current market 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 6/22/11 *Updated Quarterly |
|||
| STATE | LOWEST MORTGAGE RATE | LOAN-TO-VALUE RATIO* | NEGATIVE EQUITY* |
| US Average | 4.38% (4.51% APR) | 70.2% | 35.0% |
| Alabama | 4.25% (4.39% APR) | 67.0% | 28.9% |
| Alaska | 4.75% (4.95% APR) | 66.3% | 17.3% |
| Arizona | 4.38% (4.51% APR) | 94.6% | 39.4% |
| Arkansas | 4.38% (4.49% APR) | 72.6% | 43.9% |
| California | 4.38% (4.51% APR) | 70.6% | 34.8% |
| Colorado | 4.38% (4.51% APR) | 71.9% | 22.2% |
| Connecticut | 4.25% (4.36% APR) | 59.5% | 43.3% |
| Delaware | 4.25% (4.36% APR) | 67.6% | 50.3% |
| District of Columbia | 4.25% (4.48% APR) | 58.3% | 25.5% |
| Florida | 4.25% (4.36% APR) | 90.8% | 41.1% |
| Georgia | 4.38% (4.51% APR) | 80.9% | 25.8% |
| Hawaii | 4.38% (4.50% APR) | 54.2% | 25.4% |
| Idaho | 4.38% (4.51% APR) | 73.4% | 29.8% |
| Illinois | 4.38% (4.51% APR) | 72.4% | 31.7% |
| Indiana | 4.25% (4.44% 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 | 4.25% (4.39% APR) | 67.6% | 53.1% |
| Louisiana | 4.63% (4.82% APR) | 78.5% | 75.5% |
| Maine | 4.38% (4.49% APR) | 58.6% | 30.1% |
| Maryland | 4.25% (4.48% APR) | 70.4% | 25.6% |
| Massachusetts | 4.38% (4.49% APR) | 60.7% | 46.0% |
| Michigan | 4.38% (4.50% APR) | 84.3% | 32.2% |
| Minnesota | 4.25% (4.36% APR) | 65.6% | 22.2% |
| Mississippi | 4.63% (4.82% APR) | 78.4% | 30.1% |
| Missouri | 4.38% (4.51% 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 | 4.38% (4.49% APR) | 69.8% | 25.2% |
| New Jersey | 4.25% (4.36% APR) | 62.2% | 29.0% |
| New Mexico | 4.38% (4.51% APR) | 66.4% | 45.8% |
| New York | 4.38% (4.48% APR) | 50.1% | 42.1% |
| North Carolina | 4.38% (4.51% APR) | 71.2% | 33.2% |
| North Dakota | 4.63% (4.82% APR) | 60.1% | 37.7% |
| Ohio | 4.38% (4.50% APR) | 75.4% | 27.0% |
| Oklahoma | 4.38% (4.49% APR) | 71.0% | 52.4% |
| Oregon | 4.38% (4.54% APR) | 69.6% | 19.6% |
| Pennsylvania | 4.25% (4.36% APR) | 62.5% | 75.7% |
| Rhode Island | 4.63% (4.82% APR) | 62.6% | 36.6% |
| South Carolina | 4.38% (4.50% APR) | 71.0% | 29.0% |
| South Dakota | 4.25% (4.37% APR) | N/A | N/A |
| Tennessee | 4.38% (4.50% APR) | 71.2% | 30.7% |
| Texas | 4.25% (4.38% APR) | 68.8% | 30.6% |
| Utah | 4.38% (4.62% APR) | 73.7% | 22.2% |
| Vermont | 4.63% (4.82% APR) | N/A | N/A |
| Virginia | 4.25% (4.36% APR) | 71.7% | 25.0% |
| Washington | 4.38% (4.53% 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 | 4.38% (4.51% 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, freddie mac, lenders
Mortgage Applications Decline as Interest Rates Increase
June 22, 2011(Chris Moore)
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending June 17, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 5.9 percent from the previous week as a rise in interest rates causes mortgage applications to lose steam.
On an unadjusted basis, the Index decreased 6.2 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 0.4 percent.
The seasonally adjusted Purchase Index decreased 2.8 percent from one week earlier. The four week moving average is down 0.7 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index decreased 3.9 percent compared with the previous week and was 4.4 percent higher than the same week one year ago.
The Refinance Index decreased 7.2 percent from the previous week. The four week moving average is up 0.8 percent.
The refinance share of mortgage activity increased to 69.2 percent of total applications from 70.0 percent last week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.9 percent from 6.1 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.57 percent from 4.51 percent last week, with points decreasing to 0.91 from 1.05 (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 increased to 3.70 percent from 3.67 percent last week, with points decreasing to 1.05 from 1.06 (including the origination fee) for 80 percent LTV loans. The effective rate increased 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 June 17, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 5.9 percent from the previous week as a rise in interest rates causes mortgage applications to lose steam.
On an unadjusted basis, the Index decreased 6.2 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is up 0.4 percent.
The seasonally adjusted Purchase Index decreased 2.8 percent from one week earlier. The four week moving average is down 0.7 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index decreased 3.9 percent compared with the previous week and was 4.4 percent higher than the same week one year ago.
The Refinance Index decreased 7.2 percent from the previous week. The four week moving average is up 0.8 percent.
The refinance share of mortgage activity increased to 69.2 percent of total applications from 70.0 percent last week.
The adjustable-rate mortgage (ARM) share of activity decreased to 5.9 percent from 6.1 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.57 percent from 4.51 percent last week, with points decreasing to 0.91 from 1.05 (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 increased to 3.70 percent from 3.67 percent last week, with points decreasing to 1.05 from 1.06 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Sources:
MBA
Bay Area Home Sales and Prices Post Modest Gains
June 22, 2011 (Brian Michael)
Bay Area home sales and prices posted modest gains in May compared to April, but were sharply below the levels experienced in May 2010, which were inflated due to the surge in sales caused by the end of the first-time homebuyers tax credit, according to information collected by DataQuick.
A total of 6,988 new and resale homes were sold in the nine county Bay Area, which includes Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma Counties, in May 2011. That was an increase of 2.9 percent from April’s 6,789 sales, but down 15.4 percent from May of 2010 which recorded 8,264 sales.
As a further sign of this year’s weak spring selling season, the Bay Area historically see’s a sales increase of 6.6 percent between April and May. May’s sales were the third lowest on record for that month since DataQuick started tracking sales in 1988, with only 1995 and 2008 being worse. Typically the Bay Area averages 9,693 sales in the month of May.
Sales of newly built homes were at a record low for the month of May with only 370 sales recorded.
“Given the sluggish start to this spring’s home-buying season, with sales 20 to 30 percent below average, it’s no surprise we’re logging sharper declines from 2010. Sales got a big shot in the arm a year ago, when people rushed to take advantage of expiring homebuyer tax credits. Today the market must stand on its own, and it’s having a hard time doing that in the absence of stronger job growth and consumer confidence. So far, low mortgage rates and lower home prices aren’t enough to overcome the concern some potential buyers have that prices could fall more. Other would-be buyers are unemployed or underemployed, or can’t qualify for a loan. Scores of would-be move-up buyers owe more than their homes are worth; so they’re stuck,” said John Walsh, DataQuick president.
The median price for new and re-sale homes and condos was up 3.3 percent to $372,000 in May compared to April. The median price was still down 9.3 percent from $410,000 in May of 2010. Year-over-year prices have fallen 8 months in row. The fall in year-over-year sales and prices is attributed to the sales surge caused by the end of the first-time homebuyers tax credit last year.
Distressed home sales made up about 45 percent of the Bay Area’s resale market last month, with foreclosure sales accounting for 26.9 percent of re-sales in May, while short sales made up about 18.3 percent of Bay Area re-sales last month.
Tags: Bay Area, DataQuick, home sales, home prices, spring selling season, median sales price, new homes, re-sale homes
Source:
DataQuick
Bay Area home sales and prices posted modest gains in May compared to April, but were sharply below the levels experienced in May 2010, which were inflated due to the surge in sales caused by the end of the first-time homebuyers tax credit, according to information collected by DataQuick.
A total of 6,988 new and resale homes were sold in the nine county Bay Area, which includes Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma Counties, in May 2011. That was an increase of 2.9 percent from April’s 6,789 sales, but down 15.4 percent from May of 2010 which recorded 8,264 sales.
As a further sign of this year’s weak spring selling season, the Bay Area historically see’s a sales increase of 6.6 percent between April and May. May’s sales were the third lowest on record for that month since DataQuick started tracking sales in 1988, with only 1995 and 2008 being worse. Typically the Bay Area averages 9,693 sales in the month of May.
Sales of newly built homes were at a record low for the month of May with only 370 sales recorded.
“Given the sluggish start to this spring’s home-buying season, with sales 20 to 30 percent below average, it’s no surprise we’re logging sharper declines from 2010. Sales got a big shot in the arm a year ago, when people rushed to take advantage of expiring homebuyer tax credits. Today the market must stand on its own, and it’s having a hard time doing that in the absence of stronger job growth and consumer confidence. So far, low mortgage rates and lower home prices aren’t enough to overcome the concern some potential buyers have that prices could fall more. Other would-be buyers are unemployed or underemployed, or can’t qualify for a loan. Scores of would-be move-up buyers owe more than their homes are worth; so they’re stuck,” said John Walsh, DataQuick president.
The median price for new and re-sale homes and condos was up 3.3 percent to $372,000 in May compared to April. The median price was still down 9.3 percent from $410,000 in May of 2010. Year-over-year prices have fallen 8 months in row. The fall in year-over-year sales and prices is attributed to the sales surge caused by the end of the first-time homebuyers tax credit last year.
Distressed home sales made up about 45 percent of the Bay Area’s resale market last month, with foreclosure sales accounting for 26.9 percent of re-sales in May, while short sales made up about 18.3 percent of Bay Area re-sales last month.
Tags: Bay Area, DataQuick, home sales, home prices, spring selling season, median sales price, new homes, re-sale homes
Source:
DataQuick
Delinquency Rates and Foreclosure Inventory Decreases in May
June 22, 2011 (Shirley Allen)
Mortgage delinquency rates and foreclosure inventories continued to show signs of stabilization in May as both categories experienced slight declines from April to May according to the latest “First Look” Mortgage Report released by Lender Processing Service (LPS), which is derived from its loan-level database of nearly 40 million loans.
The total number of loans that are 30 days or more past due, but not yet in foreclosure, fell from 7.98 percent in April to 7.96 percent in May, a decline of 0.1 percent. However, compared to May of 2010, the decline was significant, with a year-over-year decline of 18.3 percent.
The number of properties in foreclosure also decreased from 2,184,000 in April to 2,164,000 in May.
The “First Look” report contains highlights of the company’s forthcoming Mortgage Monitor report which will provide a more in-depth review including an analysis of data supplemented by in-depth charts and graphs that reflect trend and point-in-time observations.
Early highlights of the report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 7.96% compared to 7.98% in April 2011
Month-over-month change in delinquency rate: -0.1% compared to 2.4% in April 2011
Year-over-year change in delinquency rate: -18.3% compared to -16.3% in April 2011
Total U.S foreclosure pre-sale inventory rate: 4.11% compared to 4.14% in April 2011
Month-over-month change in foreclosure presale inventory rate: -0.7% compared to -1.6% in April 2011
Year-over-year change in foreclosure presale inventory rate: 12.3% compared to 12.7% in April 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,187,000 compared to 4,204,000 in April 2011
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,921,000 compared to 1,961,000 in April 2011
Number of properties in foreclosure pre-sale inventory: (B) 2,164,000 compared to 2,184,000 in April 2011
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,350,000 compared to 6,388,000 in April 2011
States with highest percentage of non-current* loans: FL, NV, MS, NJ, IL (FL, NV, MS, NJ, GA in April 2011)
States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND (MT, WY, AK, SD, ND in April 2011)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans
Source:
LPS
Mortgage delinquency rates and foreclosure inventories continued to show signs of stabilization in May as both categories experienced slight declines from April to May according to the latest “First Look” Mortgage Report released by Lender Processing Service (LPS), which is derived from its loan-level database of nearly 40 million loans.
The total number of loans that are 30 days or more past due, but not yet in foreclosure, fell from 7.98 percent in April to 7.96 percent in May, a decline of 0.1 percent. However, compared to May of 2010, the decline was significant, with a year-over-year decline of 18.3 percent.
The number of properties in foreclosure also decreased from 2,184,000 in April to 2,164,000 in May.
The “First Look” report contains highlights of the company’s forthcoming Mortgage Monitor report which will provide a more in-depth review including an analysis of data supplemented by in-depth charts and graphs that reflect trend and point-in-time observations.
Early highlights of the report include:
Total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure): 7.96% compared to 7.98% in April 2011
Month-over-month change in delinquency rate: -0.1% compared to 2.4% in April 2011
Year-over-year change in delinquency rate: -18.3% compared to -16.3% in April 2011
Total U.S foreclosure pre-sale inventory rate: 4.11% compared to 4.14% in April 2011
Month-over-month change in foreclosure presale inventory rate: -0.7% compared to -1.6% in April 2011
Year-over-year change in foreclosure presale inventory rate: 12.3% compared to 12.7% in April 2011
Number of properties that are 30 or more days past due, but not in foreclosure: (A) 4,187,000 compared to 4,204,000 in April 2011
Number of properties that are 90 or more days delinquent, but not in foreclosure: 1,921,000 compared to 1,961,000 in April 2011
Number of properties in foreclosure pre-sale inventory: (B) 2,164,000 compared to 2,184,000 in April 2011
Number of properties that are 30 or more days delinquent or in foreclosure: (A+B) 6,350,000 compared to 6,388,000 in April 2011
States with highest percentage of non-current* loans: FL, NV, MS, NJ, IL (FL, NV, MS, NJ, GA in April 2011)
States with the lowest percentage of non-current* loans: MT, WY, AK, SD, ND (MT, WY, AK, SD, ND in April 2011)
*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
(1) Totals are extrapolated based on LPS Applied Analytics’ loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.
Tags: LPS, mortgage delinquency rate, foreclosure inventory, non-current loans
Source:
LPS
Eight Counties in Vermont Eligible for Disaster Relief Assistance
June 22, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to eight counties in Vermont, providing support to homeowners and low-income renters who have been forced from their homes due to the recent severe weather and flooding that swept through the area in late April and early May.
The counties eligible for assistance are Addison, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orleans and Washington.
“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.
More information about disaster assistance is available on HUD’s website.
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 eight counties in Vermont, providing support to homeowners and low-income renters who have been forced from their homes due to the recent severe weather and flooding that swept through the area in late April and early May.
The counties eligible for assistance are Addison, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orleans and Washington.
“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.
More information about disaster assistance is available on HUD’s website.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
Existing Home Sales Decline in May
June 21, 2011 (Chris Moore)
Existing home sales declined in May according to the latest report released by the National Association of Realtors (NAR). Completed transactions that include single-family homes, townhomes, condominiums, and co-ops declined 3.8 percent from April to May 2011.
Lawrence Yun, chief economist at NAR, blamed the decline on temporary factors such as spiking fuel prices and widespread severe weather, but felt that current housing market activity indicates a very slow pace of broader economic activity and as the temporary factors dissipate, a much stronger second half of the year was anticipated.
Yun also continued to reiterate his belief that the lending community is being overly restrictive on loan underwriting standards which he feels is clearly holding back the recovery.
“Even with recent economic softness, this is a disappointing performance with home sales being held back by overly restrictive loan underwriting standards,” he said. “There’s been a pendulum swing from very loose standards which led to the housing boom to unnecessarily restrictive practices as an overreaction to the housing correction – this overreaction is clearly holding back the recovery.”
Year-over-year prices continued to drop as the national median price for all housing types was $166,500 in May, down 4.6 percent from May 2010.
Distressed homes accounted for 31 percent of all sales in May, which was down 37 percent from April, and was the same amount as a year ago. All cash transactions accounted for 30 percent of the sales in May, down from 31 percent in April, but up from 25 percent in May 2010.
Regionally, existing home sales in the Northeast declined 2.5 percent to an annual level of 770,000 in May and are 13.5 percent below May 2010 and in the Midwest existing home sales dropped 6.4 percent in May to a pace of 1.02 million and are 22.7 percent below a year ago.
In the South, existing home sales fell 5.1 percent to an annual level of 1.85 million in May and are 14.4 percent below May 2010 and in the West existing home sales were unchanged at an annual pace of 1.17 million in May but are 10.0 percent lower than a year ago.
The median price in the Northeast was $241,500, up 6.1 percent from a year ago and in the Midwest the median price was $136,400, which is 8.5 percent below May 2010.
The median price in the South was $149,200, down 3.1 percent from a year ago and in the West the median price was $192,300, which is 12.6 percent below May 2010.
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 declined in May according to the latest report released by the National Association of Realtors (NAR). Completed transactions that include single-family homes, townhomes, condominiums, and co-ops declined 3.8 percent from April to May 2011.
Lawrence Yun, chief economist at NAR, blamed the decline on temporary factors such as spiking fuel prices and widespread severe weather, but felt that current housing market activity indicates a very slow pace of broader economic activity and as the temporary factors dissipate, a much stronger second half of the year was anticipated.
Yun also continued to reiterate his belief that the lending community is being overly restrictive on loan underwriting standards which he feels is clearly holding back the recovery.
“Even with recent economic softness, this is a disappointing performance with home sales being held back by overly restrictive loan underwriting standards,” he said. “There’s been a pendulum swing from very loose standards which led to the housing boom to unnecessarily restrictive practices as an overreaction to the housing correction – this overreaction is clearly holding back the recovery.”
Year-over-year prices continued to drop as the national median price for all housing types was $166,500 in May, down 4.6 percent from May 2010.
Distressed homes accounted for 31 percent of all sales in May, which was down 37 percent from April, and was the same amount as a year ago. All cash transactions accounted for 30 percent of the sales in May, down from 31 percent in April, but up from 25 percent in May 2010.
Regionally, existing home sales in the Northeast declined 2.5 percent to an annual level of 770,000 in May and are 13.5 percent below May 2010 and in the Midwest existing home sales dropped 6.4 percent in May to a pace of 1.02 million and are 22.7 percent below a year ago.
In the South, existing home sales fell 5.1 percent to an annual level of 1.85 million in May and are 14.4 percent below May 2010 and in the West existing home sales were unchanged at an annual pace of 1.17 million in May but are 10.0 percent lower than a year ago.
The median price in the Northeast was $241,500, up 6.1 percent from a year ago and in the Midwest the median price was $136,400, which is 8.5 percent below May 2010.
The median price in the South was $149,200, down 3.1 percent from a year ago and in the West the median price was $192,300, which is 12.6 percent below May 2010.
Tags: NAR, existing home sales, underperforming market, affordable conditions, low mortgage rates, declining prices, low appraisals, cancelled contracts, median home price
Source:
NAR
HUD Announces Emergency Homeowner Loan Program
June 21, 2011 (Shirley Allen)
Homeowners who have experienced a reduction in income and are at risk of foreclosure due to unemployment or underemployment as a result of economic or medical conditions may now qualify for a new emergency homeowner loan program introduced by the Department of Housing and Urban Development (HUD).
As part of the Dodd-Frank Reform Bill and the Consumer Protection Act, HUD, in conjunction with NeighborWorks America, announced the launch of the Emergency Homeowners’ Loan Program (EHLP) as a complement to the Hardest Hit Fund that was previously available to 18 states and the District of Columbia.
The new program now provides mortgage assistance in all 50 states for the unemployed and the underemployed.
Eligible homeowners can qualify for an interest free loan which helps to pay a portion of their monthly mortgage payment for up to two years or up to $50,000, whichever comes first.
"Through the Emergency Homeowners’ Loan Program the Obama Administration is continung our strong commitment to help keep families in their homes during tough economic times," said HUD Secretary Shaun Donovan. "Working with our community partners across the nation through NeighborWorks® America, we are pleased to launch this program today in 27 states and Puerto Rico to help families keep their homes while looking for work or recovering from illness."
The goal of EHLP is to provide assistance for up to 30,000 distressed homeowners with an average loan of approximately $35,000.
Contact information for participating agencies, the Pre-Applicant Screening Worksheet and more information on the EHLP program and its eligibility requirements can be found at www.FindEHLP.org or by calling toll free at 855-FIND-EHLP (346-3345).
Tags: HUD, mortgage assistance, unemployed, underemployed, interest free loan, EHLP, foreclosure, hardest hit fund, distressed homeowners
Source:
HUD
Homeowners who have experienced a reduction in income and are at risk of foreclosure due to unemployment or underemployment as a result of economic or medical conditions may now qualify for a new emergency homeowner loan program introduced by the Department of Housing and Urban Development (HUD).
As part of the Dodd-Frank Reform Bill and the Consumer Protection Act, HUD, in conjunction with NeighborWorks America, announced the launch of the Emergency Homeowners’ Loan Program (EHLP) as a complement to the Hardest Hit Fund that was previously available to 18 states and the District of Columbia.
The new program now provides mortgage assistance in all 50 states for the unemployed and the underemployed.
Eligible homeowners can qualify for an interest free loan which helps to pay a portion of their monthly mortgage payment for up to two years or up to $50,000, whichever comes first.
"Through the Emergency Homeowners’ Loan Program the Obama Administration is continung our strong commitment to help keep families in their homes during tough economic times," said HUD Secretary Shaun Donovan. "Working with our community partners across the nation through NeighborWorks® America, we are pleased to launch this program today in 27 states and Puerto Rico to help families keep their homes while looking for work or recovering from illness."
The goal of EHLP is to provide assistance for up to 30,000 distressed homeowners with an average loan of approximately $35,000.
Contact information for participating agencies, the Pre-Applicant Screening Worksheet and more information on the EHLP program and its eligibility requirements can be found at www.FindEHLP.org or by calling toll free at 855-FIND-EHLP (346-3345).
Tags: HUD, mortgage assistance, unemployed, underemployed, interest free loan, EHLP, foreclosure, hardest hit fund, distressed homeowners
Source:
HUD
Fannie Mae’s Sunny Spring Gives Way to Cloudy Skies
June 21, 2011 (Brian Michael)
Fannie Mae has re-forecast their prediction for economic growth in 2011 as weakness in manufacturing, consumer spending, jobs and housing has resulted in a downgrade in projected growth for the second half of the year according to the June 2011 Economic Outlook.
Fannie Mae now projects economic growth of 2.5 percent for the year, which is down from 2.9 percent projected in the previous quarter, and more than a full percentage point lower than what was forecast at the beginning of the year.
Part of the re-forecast was due to a revision in first quarter economic growth as consumer spending was much weaker than initially believed in the first quarter of 2011 and the fourth quarter of 2010. Declining auto output reduced the forecast by one half of a percentage point from second quarter growth due to the effects of supply chain interruptions.
Consumers continued to be financially wary as consumer spending only increased 0.1 percent for the fourth time in the last 5 months with real purchasing power diminished due to higher gasoline prices.
Employment remains the key to the outlook for the economy and the housing market. The labor markets have lost momentum as unemployment has inched back up over 9 percent and new claims for unemployment have jumped back over the 400,000 per week mark since the beginning of April.
Housing construction is expected to grow by 3.5 percent this year, however, Fannie Mae notes the jump in activity is primarily due to multi-family construction as single-family construction remains at depressed levels.
Housing affordability has improved due to a combination of historically low interest rates and declining home prices. Fannie Mae predicts that the slow economic growth will keep interest rates under 5 percent until at least early 2012.
Overall home sales for 2011 are now expected to increase 4.3 percent, which is up from 4.5 percent projected at the beginning of the year, Ironically, just last month, Fannie Mae had increased the projected sales rate for 2011 to 6 percent.
Fannie Mae is predicting a robust housing recovery in 2012, with new home sales projected to increase by 35 percent, existing home sales projected to increase by 8.6 percent and total home sales projected to increase by 10.2 percent.
Although Fannie Mae feels the likelihood of the economy slipping into another economic downturn is low, the risk has risen slightly as the possibilities of a faltering labor market and a slowdown in consumer demand could jeopardize the chances of the projected economic rebound later this year.
They have been wrong before.
Tags: Fannie Mae, economic weakness, manufacturing, consumer spending, jobs, housing
Source:
Fannie Mae
Fannie Mae has re-forecast their prediction for economic growth in 2011 as weakness in manufacturing, consumer spending, jobs and housing has resulted in a downgrade in projected growth for the second half of the year according to the June 2011 Economic Outlook.
Fannie Mae now projects economic growth of 2.5 percent for the year, which is down from 2.9 percent projected in the previous quarter, and more than a full percentage point lower than what was forecast at the beginning of the year.
Part of the re-forecast was due to a revision in first quarter economic growth as consumer spending was much weaker than initially believed in the first quarter of 2011 and the fourth quarter of 2010. Declining auto output reduced the forecast by one half of a percentage point from second quarter growth due to the effects of supply chain interruptions.
Consumers continued to be financially wary as consumer spending only increased 0.1 percent for the fourth time in the last 5 months with real purchasing power diminished due to higher gasoline prices.
Employment remains the key to the outlook for the economy and the housing market. The labor markets have lost momentum as unemployment has inched back up over 9 percent and new claims for unemployment have jumped back over the 400,000 per week mark since the beginning of April.
Housing construction is expected to grow by 3.5 percent this year, however, Fannie Mae notes the jump in activity is primarily due to multi-family construction as single-family construction remains at depressed levels.
Housing affordability has improved due to a combination of historically low interest rates and declining home prices. Fannie Mae predicts that the slow economic growth will keep interest rates under 5 percent until at least early 2012.
Overall home sales for 2011 are now expected to increase 4.3 percent, which is up from 4.5 percent projected at the beginning of the year, Ironically, just last month, Fannie Mae had increased the projected sales rate for 2011 to 6 percent.
Fannie Mae is predicting a robust housing recovery in 2012, with new home sales projected to increase by 35 percent, existing home sales projected to increase by 8.6 percent and total home sales projected to increase by 10.2 percent.
Although Fannie Mae feels the likelihood of the economy slipping into another economic downturn is low, the risk has risen slightly as the possibilities of a faltering labor market and a slowdown in consumer demand could jeopardize the chances of the projected economic rebound later this year.
They have been wrong before.
Tags: Fannie Mae, economic weakness, manufacturing, consumer spending, jobs, housing
Source:
Fannie Mae
Homeowner Confidence in Housing Values Lowest in Two Years
June 21, 2011 (Chris Moore)
The number of homeowners who say their home is worth more than what they owe is at the lowest level in more than 2 years as overall confidence in housing values plummeted in May according to the latest Rasmussen Reports poll.
Only 45 percent of the homeowners in the survey thought their home is worth more than what they owed on their mortgage in May. Since late 2008, the monthly poll has ranged from a previous low of 49 percent to a high of 61 percent.
Just over one-third, thirty-six percent, thought that their home’s value was less than what they owed and 20 percent were not sure.
Over the next year, the poll showed an increasing pessimism among homeowners as the number of homeowners who thought their home will be worth less in a year than it is today spiked 10 percent from April’s poll to 37 percent in May, which was the highest level ever reported.
And the level of pessimism didn’t diminish much with time, as 26 percent of the homeowners thought the value of their home will still be less in five years than it is today, also a 10 percent leap from April’s poll.
Meanwhile, just 16 percent of the homeowners thought their homes will be worth more in a year and 44 percent thought their homes will be worth the same as they are today. Only 35 percent of the homeowners thought their home would be worth more in 5 years, while 29 percent said their homes would be worth the same that they are today.
Almost half of the homeowners surveyed, fifty-one percent, said their home was worth more than when they originally bought it, even though 75 percent said they had bought their current home more than five years ago.
Twenty percent thought their home was worth about the same amount that they bought it for and 26 percent said their home is worth less now than when they bought it.
Tags: Rasmussen Reports, homeowner confidence, housing values, homeowners, pessimism
Source:
Rasmussen Reports
The number of homeowners who say their home is worth more than what they owe is at the lowest level in more than 2 years as overall confidence in housing values plummeted in May according to the latest Rasmussen Reports poll.
Only 45 percent of the homeowners in the survey thought their home is worth more than what they owed on their mortgage in May. Since late 2008, the monthly poll has ranged from a previous low of 49 percent to a high of 61 percent.
Just over one-third, thirty-six percent, thought that their home’s value was less than what they owed and 20 percent were not sure.
Over the next year, the poll showed an increasing pessimism among homeowners as the number of homeowners who thought their home will be worth less in a year than it is today spiked 10 percent from April’s poll to 37 percent in May, which was the highest level ever reported.
And the level of pessimism didn’t diminish much with time, as 26 percent of the homeowners thought the value of their home will still be less in five years than it is today, also a 10 percent leap from April’s poll.
Meanwhile, just 16 percent of the homeowners thought their homes will be worth more in a year and 44 percent thought their homes will be worth the same as they are today. Only 35 percent of the homeowners thought their home would be worth more in 5 years, while 29 percent said their homes would be worth the same that they are today.
Almost half of the homeowners surveyed, fifty-one percent, said their home was worth more than when they originally bought it, even though 75 percent said they had bought their current home more than five years ago.
Twenty percent thought their home was worth about the same amount that they bought it for and 26 percent said their home is worth less now than when they bought it.
Tags: Rasmussen Reports, homeowner confidence, housing values, homeowners, pessimism
Source:
Rasmussen Reports
Spring/Summer Selling Season Not Looking Good
June 21, 2011 (Chris Moore)
The Spring/Summer selling season, which has already gotten off to a sputtering start, may take a downward turn in the coming months according to the latest Campbell/Inside Finance HousingPulse Tracking Survey as homebuyer traffic tumbled in May.
Data from the survey shows that the index for first-time homebuyer traffic dropped to 45.3 in May from 51.7 in April. In addition, the traffic index for current homeowners dropped to 44.8 in May from 51.6 in April.
An index value of less than 50 indicates a decrease in traffic. In the prior three months, the index for both first-time homebuyers and current homeowners had been above 50, indicating an increase in homebuyer traffic.
The proportion of first-time homebuyers increased from 35.7 percent in April to 37.3 percent in May, while investors accounted for 21.6 percent of the housing market in May, which was down from 23.0 percent in April.
The Survey’s Distressed Property Index (DPI) fell to 46.7 percent in April, although distress property sales still accounted for nearly half of the homes on the market.
The gap between first-time homebuyers and the distressed property supply declined to 9.4 percentage points in May compared to 12.0 percentage points in April. The difference in the gap is important because unlike current home owners who are move up and move down buyers and thus don’t absorb any housing, they’re just trading a house for a house, first-time homeowners absorb housing supply and when the supply of distressed properties exceeds the demand from those first-time homebuyers, investors will step into the market and purchase the excess housing inventory at discount prices, which puts further downward pressure on home prices.
“The fall in homebuyer traffic indexes and other data show that this spring-summer home-buying season will be significantly below last year’s,” said Thomas Popik, research director for Campbell Surveys. “First-time homebuyers have difficulty getting mortgage financing and current homeowners are often locked into properties with negative home equity. That leaves investors to take up the slack.”
The survey found that 74 percent of the purchases made by investors were made by cash, but as more investors move away from flipping their properties to a hold-and-rent strategy, their sources of personal funding that are used to purchase homes for cash was drying up, which will force them to rely on bank financing that many have limited access to.
Tags: Campbell/Inside Mortgage Finance, HousingPulse Tracking Survey, Distressed Property Index, distressed properties, first-time homebuyers, distressed properties, investors, bargain basement prices
Source:
Campbell/Inside Mortgage Finance
The Spring/Summer selling season, which has already gotten off to a sputtering start, may take a downward turn in the coming months according to the latest Campbell/Inside Finance HousingPulse Tracking Survey as homebuyer traffic tumbled in May.
Data from the survey shows that the index for first-time homebuyer traffic dropped to 45.3 in May from 51.7 in April. In addition, the traffic index for current homeowners dropped to 44.8 in May from 51.6 in April.
An index value of less than 50 indicates a decrease in traffic. In the prior three months, the index for both first-time homebuyers and current homeowners had been above 50, indicating an increase in homebuyer traffic.
The proportion of first-time homebuyers increased from 35.7 percent in April to 37.3 percent in May, while investors accounted for 21.6 percent of the housing market in May, which was down from 23.0 percent in April.
The Survey’s Distressed Property Index (DPI) fell to 46.7 percent in April, although distress property sales still accounted for nearly half of the homes on the market.
The gap between first-time homebuyers and the distressed property supply declined to 9.4 percentage points in May compared to 12.0 percentage points in April. The difference in the gap is important because unlike current home owners who are move up and move down buyers and thus don’t absorb any housing, they’re just trading a house for a house, first-time homeowners absorb housing supply and when the supply of distressed properties exceeds the demand from those first-time homebuyers, investors will step into the market and purchase the excess housing inventory at discount prices, which puts further downward pressure on home prices.
“The fall in homebuyer traffic indexes and other data show that this spring-summer home-buying season will be significantly below last year’s,” said Thomas Popik, research director for Campbell Surveys. “First-time homebuyers have difficulty getting mortgage financing and current homeowners are often locked into properties with negative home equity. That leaves investors to take up the slack.”
The survey found that 74 percent of the purchases made by investors were made by cash, but as more investors move away from flipping their properties to a hold-and-rent strategy, their sources of personal funding that are used to purchase homes for cash was drying up, which will force them to rely on bank financing that many have limited access to.
Tags: Campbell/Inside Mortgage Finance, HousingPulse Tracking Survey, Distressed Property Index, distressed properties, first-time homebuyers, distressed properties, investors, bargain basement prices
Source:
Campbell/Inside Mortgage Finance
HUD Announces $26.7 Million for Affordable Housing
June 20, 2011 (Shirley Allen)
Four non-profit organizations will receive $26.7 million in “sweat equity” grants from the Department of Housing and Urban Development (HUD) to produce at least 1,500 affordable homes for low-income individuals and families.
As part of HUD’s Self-Help Homeownership Opportunity Program (SHOP), these grants are used to purchase land and install or improve infrastructure and requires homebuyers to contribute a minimum of 100 hours of “sweat equity” on the construction of their homes and/or the construction of homes of other buyers participating in the local self-help programs.
The “sweat equity” involves the homebuyers participation in the construction of the house they are purchasing (or another buyers house) which can include such activities as assisting in the painting, carpentry, trim work, drywall, roofing, and siding for the house.
The “sweat equity” and the labor contributed by the homebuyer and volunteers, who contribute their time and labor, significantly reduces the cost of the housing.
The four non-profit organizations who received funds were Habitat for Humanity, $15,369,750, Community Frameworks, $7,361,863, Housing Assistance Council, $3,131,489, and Tierra Del Sol Corporation, $866,898.
Congress first appropriated SHOP funds in 1996 and has provided over $360 million to create more than 23,000 units of affordable housing.
Tags: HUD, SHOP, affordable homes, sweat equity, low-income, home construction
Source:
HUD
Four non-profit organizations will receive $26.7 million in “sweat equity” grants from the Department of Housing and Urban Development (HUD) to produce at least 1,500 affordable homes for low-income individuals and families.
As part of HUD’s Self-Help Homeownership Opportunity Program (SHOP), these grants are used to purchase land and install or improve infrastructure and requires homebuyers to contribute a minimum of 100 hours of “sweat equity” on the construction of their homes and/or the construction of homes of other buyers participating in the local self-help programs.
The “sweat equity” involves the homebuyers participation in the construction of the house they are purchasing (or another buyers house) which can include such activities as assisting in the painting, carpentry, trim work, drywall, roofing, and siding for the house.
The “sweat equity” and the labor contributed by the homebuyer and volunteers, who contribute their time and labor, significantly reduces the cost of the housing.
The four non-profit organizations who received funds were Habitat for Humanity, $15,369,750, Community Frameworks, $7,361,863, Housing Assistance Council, $3,131,489, and Tierra Del Sol Corporation, $866,898.
Congress first appropriated SHOP funds in 1996 and has provided over $360 million to create more than 23,000 units of affordable housing.
Tags: HUD, SHOP, affordable homes, sweat equity, low-income, home construction
Source:
HUD
Number of Homes For Sale Grows In May; Prices Drop
June 20, 2011 (Brian Michael)
As should be expected for this time of the year, the number of homes listed for sale in May increased by 3.5 percent compared to April to a total of 2.3 million listings, however, what wouldn't be expected during the normally busy spring selling season is a 1.6 percent month-over-month price drop, but according to the latest data released by Realtor.com that's exactly what happened.
With home prices finally starting to show a little resiliency and strength the last two months, and with some recent indices actually showing price increases, this month’s data definitely shows that these are not normal times and that we should expect an up and down housing market for some time to come.
The median sales price for a home in May 2011 was $188,900, which is down from the median price of $191,900 in April, and was 2 percent lower than the median price of $192,900 in May of 2010.
The area with the largest drop in median home prices was the Santa Barbara-Santa Maria-Lompoc, CA area where median prices dropped 26.9 percent in May compared to April.
The area with the largest increase in the median price was the Fort Myers-Cape Coral, FL area where the median price increased 27.3 percent from April to May.
The average list price for a home in May was $312,189, which was 4 percent lower than April, and 2.2 percent lower than May 2010.
Although overall housing inventory showed a month-over-month increase, the number of homes listed for sale was 14.3 percent lower than in May of last year.
The number of days that a home spent on the market was down to 92, which was a 3.2 percent drop from April, but was still 4.6 percent higher than a year ago.
Realtor.com is the official website for the National Association of Realtors (NAR) and they will be releasing their Existing Home Sales report tomorrow. It should be interesting to see what they have to say!
Tags: Realtor.com, housing inventory, listed homes, home prices, median sales price, average list price
Source:
Realtor.com
As should be expected for this time of the year, the number of homes listed for sale in May increased by 3.5 percent compared to April to a total of 2.3 million listings, however, what wouldn't be expected during the normally busy spring selling season is a 1.6 percent month-over-month price drop, but according to the latest data released by Realtor.com that's exactly what happened.
With home prices finally starting to show a little resiliency and strength the last two months, and with some recent indices actually showing price increases, this month’s data definitely shows that these are not normal times and that we should expect an up and down housing market for some time to come.
The median sales price for a home in May 2011 was $188,900, which is down from the median price of $191,900 in April, and was 2 percent lower than the median price of $192,900 in May of 2010.
The area with the largest drop in median home prices was the Santa Barbara-Santa Maria-Lompoc, CA area where median prices dropped 26.9 percent in May compared to April.
The area with the largest increase in the median price was the Fort Myers-Cape Coral, FL area where the median price increased 27.3 percent from April to May.
The average list price for a home in May was $312,189, which was 4 percent lower than April, and 2.2 percent lower than May 2010.
Although overall housing inventory showed a month-over-month increase, the number of homes listed for sale was 14.3 percent lower than in May of last year.
The number of days that a home spent on the market was down to 92, which was a 3.2 percent drop from April, but was still 4.6 percent higher than a year ago.
Realtor.com is the official website for the National Association of Realtors (NAR) and they will be releasing their Existing Home Sales report tomorrow. It should be interesting to see what they have to say!
Tags: Realtor.com, housing inventory, listed homes, home prices, median sales price, average list price
Source:
Realtor.com
Massachusetts Storm Victims Offered HUD Disaster Assistance
June 20, 2011 (Shirley Allen)
The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to two counties in Massachusetts, providing support to homeowners and low-income renters who have been forced from their homes due to the recent severe weather and tornadoes that swept through the area two weeks ago.
The counties eligible for assistance are Hampden and Worcester.
“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.
More information about disaster assistance is available on HUD’s website.
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 two counties in Massachusetts, providing support to homeowners and low-income renters who have been forced from their homes due to the recent severe weather and tornadoes that swept through the area two weeks ago.
The counties eligible for assistance are Hampden and Worcester.
“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.
More information about disaster assistance is available on HUD’s website.
Tags: HUD, disaster relief assistance, homeowners, low-income renters, foreclosure relief, mortgage insurance, loan guarantee assistance
Friday, June 17, 2011
Foreclosure Inventories Increase Even as Defaults Decline
June 17, 2011 (Brian Michael)
The inventory of unsold bank Real Estate Owned (REO) properties continues to increase even as year-over-year foreclosure activity continues to decline according to the latest data from RealtyTrac’s Foreclosure Market Report, which cites weak buyer demand as the main culprit.
Foreclosure filings, which consist of default notices, scheduled auctions and bank repossessions, decreased by 2 percent from April to May 2011, as 214,927 U.S. properties received a foreclosure filing in May. Compared to May 2010, that’s a whopping 33 percent decline.
“The inventory of properties in the foreclosure process has declined steadily over the past six months — thanks in large part to16 consecutive months of year-over-year declines in new default notices — the inventory of unsold bank-owned REOs increased in April and May even as new REO activity slowed in both of those months,” Saccacio continued. “That points to continued weak demand from buyers, making it tough for lenders to unload their REO inventory. Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”
States that use non-judicial foreclosure proceedings continued to dominate the amount of foreclosure activity, accounting for two-thirds of the national total. A total of 141,328 properties in non-judicial states received a foreclosure filing in May compared to 73,579 in states that utilize judicial foreclosure proceedings.
Nevada, Arizona, and California continued to lead the country in foreclosure filings. Nevada has held the number one rank for 53 straight months with one in every 103 housing units receiving a foreclosure filing in May. Arizona was second with one in every 210, followed by California (one in every 259), Michigan (one in every 311), and Utah (one in every 365).
In sheer numbers, five states accounted for a total of 51 percent of all foreclosure filings led by California with 51,906, Florida with 19,192, Michigan with 14,614, Arizona with 13,122, and Nevada with 11,039 properties receiving foreclosure filings in the month of May.
Based on foreclosure type, 58,797 properties received default notices, 89,251 properties were scheduled for auction, and 66,879 properties were repossessed by lenders in May.
Tags: RealtyTrac, foreclosure filings, default notices, scheduled auctions, repossessions, foreclosure process, weak buyer demand, non-judicial, judicial
Source:
RealtyTrac
The inventory of unsold bank Real Estate Owned (REO) properties continues to increase even as year-over-year foreclosure activity continues to decline according to the latest data from RealtyTrac’s Foreclosure Market Report, which cites weak buyer demand as the main culprit.
Foreclosure filings, which consist of default notices, scheduled auctions and bank repossessions, decreased by 2 percent from April to May 2011, as 214,927 U.S. properties received a foreclosure filing in May. Compared to May 2010, that’s a whopping 33 percent decline.
“The inventory of properties in the foreclosure process has declined steadily over the past six months — thanks in large part to16 consecutive months of year-over-year declines in new default notices — the inventory of unsold bank-owned REOs increased in April and May even as new REO activity slowed in both of those months,” Saccacio continued. “That points to continued weak demand from buyers, making it tough for lenders to unload their REO inventory. Even at a significantly lower level than a year ago, the new supply of REOs exceeds the amount being sold each month.”
States that use non-judicial foreclosure proceedings continued to dominate the amount of foreclosure activity, accounting for two-thirds of the national total. A total of 141,328 properties in non-judicial states received a foreclosure filing in May compared to 73,579 in states that utilize judicial foreclosure proceedings.
Nevada, Arizona, and California continued to lead the country in foreclosure filings. Nevada has held the number one rank for 53 straight months with one in every 103 housing units receiving a foreclosure filing in May. Arizona was second with one in every 210, followed by California (one in every 259), Michigan (one in every 311), and Utah (one in every 365).
In sheer numbers, five states accounted for a total of 51 percent of all foreclosure filings led by California with 51,906, Florida with 19,192, Michigan with 14,614, Arizona with 13,122, and Nevada with 11,039 properties receiving foreclosure filings in the month of May.
Based on foreclosure type, 58,797 properties received default notices, 89,251 properties were scheduled for auction, and 66,879 properties were repossessed by lenders in May.
Tags: RealtyTrac, foreclosure filings, default notices, scheduled auctions, repossessions, foreclosure process, weak buyer demand, non-judicial, judicial
Source:
RealtyTrac
California Home Sales Remain Flat in May
June 17, 2011 (Shirley Allen)
Sales of new and re-sale homes and condos in California remained flat in May 2011 as an estimated 35,536 properties were sold, up 0.9 percent from April’s 35,202 sales, according to the real estate experts at DataQuick.
Year-over-year sales were down 13.3 percent from 40,965 sales in May 2010. Historically, California averages 46,840 sales in the month of May.
The median price for a home in May remained unchanged at $249,000 compared to April and is down 10.4% from a median price of $278,000 in May of 2010. The statewide current cycle peak price was $484,000 in early 2007.
Distressed properties continued to dominate the California market as 53 percent of all re-sales in May were distressed sales.
Properties that had been foreclosed on in the previous twelve months made up 35.5 percent of the existing home sales in May. That was virtually unchanged from the 35.4 percent observed in May of last year and was down from the 36.4 percent observed in the previous month of April 2011.
Short sales increased to 17.9 percent of re-sales last month compared to 16.9 percent in April and down from 18.9 percent in May of 2010.
Falling home prices and interest rates helped bring the typical mortgage payment down to $1,025 in May, slightly lower than April’s typical payment of $1,050, but significantly lower than the $1,178 observed in May 2010. May’s typical mortgage payment is 61.5 percent lower than it was during the current cycle’s peak in June 2006.
“Indicators of market distress continue to move in different directions. Foreclosure activity has declined somewhat but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying has eased a bit this spring but remains relatively high,” DataQuick reported.
Tags: DataQuick, new and re-sale homes, condos, sales, median home prices, distressed properties, short sales, typical mortgage payment
Source:
DataQuick
Sales of new and re-sale homes and condos in California remained flat in May 2011 as an estimated 35,536 properties were sold, up 0.9 percent from April’s 35,202 sales, according to the real estate experts at DataQuick.
Year-over-year sales were down 13.3 percent from 40,965 sales in May 2010. Historically, California averages 46,840 sales in the month of May.
The median price for a home in May remained unchanged at $249,000 compared to April and is down 10.4% from a median price of $278,000 in May of 2010. The statewide current cycle peak price was $484,000 in early 2007.
Distressed properties continued to dominate the California market as 53 percent of all re-sales in May were distressed sales.
Properties that had been foreclosed on in the previous twelve months made up 35.5 percent of the existing home sales in May. That was virtually unchanged from the 35.4 percent observed in May of last year and was down from the 36.4 percent observed in the previous month of April 2011.
Short sales increased to 17.9 percent of re-sales last month compared to 16.9 percent in April and down from 18.9 percent in May of 2010.
Falling home prices and interest rates helped bring the typical mortgage payment down to $1,025 in May, slightly lower than April’s typical payment of $1,050, but significantly lower than the $1,178 observed in May 2010. May’s typical mortgage payment is 61.5 percent lower than it was during the current cycle’s peak in June 2006.
“Indicators of market distress continue to move in different directions. Foreclosure activity has declined somewhat but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying has eased a bit this spring but remains relatively high,” DataQuick reported.
Tags: DataQuick, new and re-sale homes, condos, sales, median home prices, distressed properties, short sales, typical mortgage payment
Source:
DataQuick
Why Aren’t Home Sales More Vigorous?
June 17, 2011 (Chris Moore)
With mortgage rates near record lows and sinking home prices in the first quarter of this year combining to make home buying the most affordable in years, why aren’t home sales more vigorous? According to Freddie Mac’s June 2011 Economic Outlook report, the reasons are many, but a brighter future is on its way.
Part of the reason cited by Freddie Mac is that consumers are currently a worried group. The waning economic situation and the bombardment of bad economic news has worn on consumers and has caused them to be cautious when considering big ticket items, like cars and homes.
Another reason is the concern from small businesses about the vitality of future economic demand for their products. When small businesses loose confidence in the economy they become hesitant to add workers to their payrolls.
One measurement of businesses' view of future economic confidence is the National Federation of Independent Businesses’ economic confidence index, which declined for the third consecutive month in May and remains at levels reflecting a bearish near-term outlook.
Unemployment is near the top of any list of what concerns consumers the most. Net job creation in May tumbled to 54,000 after several months of encouraging gains and the unemployment rate has increased for the last two months.
First time unemployment claims have been back over the 400,000 level since the beginning of April and for most economists that’s a sign of economic contraction. Yesterday’s report was no exception as 414,000 new jobless claims were filed the previous week.
Falling prices in the first quarter gave potential home buyers a reason NOT to buy a home as they sat on the sidelines waiting for clearer signs that home values had reached bottom before jumping into the market.
And severe weather, earthquakes and tsunami’s caused supply chain interruptions reducing employment gains, though Freddie Mac feels there should be a reversal of this trend in the coming months.
But there is a brighter future down the road according to Freddie Mac, as signs of a recovery in the housing market begin to emerge.
More robust economic growth is expected during the second half of the year supported by the Federal Reserve's accommodative economic policies which should translate into continued low mortgage interest rates and with home prices showing signs of stabilizing over the last couple months, the result should translate into more home sales.
Existing home sales during the first four months of the year were up about 5 percent, which is inline with the projected increase in 2011 home sales over 2010, and delinquencies have been dropping though foreclosure inventories are swollen.
The rental sector has performed well as the National Multi Housing Council reported that property managers in most local markets have found a tightening in rental markets and greater availability of equity and debt financing, and released a relatively upbeat Market Tightness Index of 90.
Frank Nothaft, chief economist of Freddie Mac, stated, “Even though near-term concerns over income and sales growth are restraining consumer spending, business hiring, and new building, there have been a number of positive signs in the economy that growth will continue and is likely to accelerate in the second half of this year. And while parts of the housing industry remain weak, the rental market has clearly strengthened and homes sales are above last year’s pace. Look for a gradual but substantive improvement in housing activity in the coming year.”
Tags: Freddie Mac, home sales, economic outlook, worried consumers, small businesses, economic confidence, unemployment, falling home prices, jobless claims, economic growth
Source:
Freddie Mac
With mortgage rates near record lows and sinking home prices in the first quarter of this year combining to make home buying the most affordable in years, why aren’t home sales more vigorous? According to Freddie Mac’s June 2011 Economic Outlook report, the reasons are many, but a brighter future is on its way.
Part of the reason cited by Freddie Mac is that consumers are currently a worried group. The waning economic situation and the bombardment of bad economic news has worn on consumers and has caused them to be cautious when considering big ticket items, like cars and homes.
Another reason is the concern from small businesses about the vitality of future economic demand for their products. When small businesses loose confidence in the economy they become hesitant to add workers to their payrolls.
One measurement of businesses' view of future economic confidence is the National Federation of Independent Businesses’ economic confidence index, which declined for the third consecutive month in May and remains at levels reflecting a bearish near-term outlook.
Unemployment is near the top of any list of what concerns consumers the most. Net job creation in May tumbled to 54,000 after several months of encouraging gains and the unemployment rate has increased for the last two months.
First time unemployment claims have been back over the 400,000 level since the beginning of April and for most economists that’s a sign of economic contraction. Yesterday’s report was no exception as 414,000 new jobless claims were filed the previous week.
Falling prices in the first quarter gave potential home buyers a reason NOT to buy a home as they sat on the sidelines waiting for clearer signs that home values had reached bottom before jumping into the market.
And severe weather, earthquakes and tsunami’s caused supply chain interruptions reducing employment gains, though Freddie Mac feels there should be a reversal of this trend in the coming months.
But there is a brighter future down the road according to Freddie Mac, as signs of a recovery in the housing market begin to emerge.
More robust economic growth is expected during the second half of the year supported by the Federal Reserve's accommodative economic policies which should translate into continued low mortgage interest rates and with home prices showing signs of stabilizing over the last couple months, the result should translate into more home sales.
Existing home sales during the first four months of the year were up about 5 percent, which is inline with the projected increase in 2011 home sales over 2010, and delinquencies have been dropping though foreclosure inventories are swollen.
The rental sector has performed well as the National Multi Housing Council reported that property managers in most local markets have found a tightening in rental markets and greater availability of equity and debt financing, and released a relatively upbeat Market Tightness Index of 90.
Frank Nothaft, chief economist of Freddie Mac, stated, “Even though near-term concerns over income and sales growth are restraining consumer spending, business hiring, and new building, there have been a number of positive signs in the economy that growth will continue and is likely to accelerate in the second half of this year. And while parts of the housing industry remain weak, the rental market has clearly strengthened and homes sales are above last year’s pace. Look for a gradual but substantive improvement in housing activity in the coming year.”
Tags: Freddie Mac, home sales, economic outlook, worried consumers, small businesses, economic confidence, unemployment, falling home prices, jobless claims, economic growth
Source:
Freddie Mac
Wells Fargo Home Preservation Workshop Coming to Irvine CA
June 17, 2011 (Brian Michael)
Wells Fargo is holding another Home Preservation Workshop in Irvine, California, on June 22 and 23, 2011. The event is being held at the Hyatt Regency Irvine and will be open from 9:00 a.m. until 7:00 p.m. each day. The last day to register for this event is Monday, June 20th.
You can register online at www.wfhmevents.com/leadingthewayhome or call 1-800-405-8067. If you can’t make the event but would like more information on your options if you’re having difficulty making your mortgage payments, call 1-800-678-7986.
The address for this event is:
Hyatt Regency Irvine
Salon A-B
17900 Jamboree Road
Irvine,CA 92614
To prepare for your discussion with a Wells Fargo mortgage representative, please bring the following materials with you to the Home Preservation Workshop:
- Most recently filed and signed federal tax return with all schedules, including Schedule E-Supplemental Income and Loss
- Most recent statement for every savings, Money Market, CD, bond, stock IRA, and 401 (k) account
- Most recent statement for every credit card or department store card, auto loan or student loan, and other mortgages or liens
For each salaried borrower:
- Recent pay stubs covering a period of one month
- Most recent W-2s
For each self-employed borrower:
- Most recent quarterly or year-to-date profit/loss statement
- Recent bank statements covering a period of 90 days
For each borrower with income such as Social Security, disability or death benefits, pension, adoption assistance, public assistance, or unemployment:
- Benefits statement or letter from provider stating amount, frequency, and duration of the benefit
- Two most recent bank statements showing receipt of the benefit payments
For each borrower relying on alimony or child support as qualifying income*:
- Divorce or other court decree, or separation agreement or other written agreement filed with the court, stating the amount of the payments and the period of time they will be received
- Two most recent bank statements showing receipt of the payments
For borrowers relying on rental income:
- Lease agreements
Tags: Wells Fargo, Home Preservation Workshop, Irvine, mortgage help, homeowners, payment challenges, options
Wells Fargo is holding another Home Preservation Workshop in Irvine, California, on June 22 and 23, 2011. The event is being held at the Hyatt Regency Irvine and will be open from 9:00 a.m. until 7:00 p.m. each day. The last day to register for this event is Monday, June 20th.
You can register online at www.wfhmevents.com/leadingthewayhome or call 1-800-405-8067. If you can’t make the event but would like more information on your options if you’re having difficulty making your mortgage payments, call 1-800-678-7986.
The address for this event is:
Hyatt Regency Irvine
Salon A-B
17900 Jamboree Road
Irvine,CA 92614
To prepare for your discussion with a Wells Fargo mortgage representative, please bring the following materials with you to the Home Preservation Workshop:
- Most recently filed and signed federal tax return with all schedules, including Schedule E-Supplemental Income and Loss
- Most recent statement for every savings, Money Market, CD, bond, stock IRA, and 401 (k) account
- Most recent statement for every credit card or department store card, auto loan or student loan, and other mortgages or liens
For each salaried borrower:
- Recent pay stubs covering a period of one month
- Most recent W-2s
For each self-employed borrower:
- Most recent quarterly or year-to-date profit/loss statement
- Recent bank statements covering a period of 90 days
For each borrower with income such as Social Security, disability or death benefits, pension, adoption assistance, public assistance, or unemployment:
- Benefits statement or letter from provider stating amount, frequency, and duration of the benefit
- Two most recent bank statements showing receipt of the benefit payments
For each borrower relying on alimony or child support as qualifying income*:
- Divorce or other court decree, or separation agreement or other written agreement filed with the court, stating the amount of the payments and the period of time they will be received
- Two most recent bank statements showing receipt of the payments
For borrowers relying on rental income:
- Lease agreements
Tags: Wells Fargo, Home Preservation Workshop, Irvine, mortgage help, homeowners, payment challenges, options
New Housing Construction Activity Increases in May
June 16, 2011 (Chris Moore)
New residential construction received a boost in May as building permits, housing starts, and housing completions all experienced gains according to the latest data released by the Census Bureau.
Privately owned housing starts increased by 3.5 percent in May, 2011, compared to April with a seasonally adjusted annual rate of 560,000 starts reported in May compared to April’s revised estimate of 541,000 housing starts. Housing starts are still below May of 2010’s rates which were at a seasonally adjusted rate of 580,000.
Single-family housing starts in May increased from April’s figure of 404,000 to 419,000, an increase of 3.7 percent, and multi-family dwellings increased from 114,000 starts in April to 134,000 in May.
Building permits in May were also more robust than April as builders were authorized a seasonally adjusted annual rate of 612,000 permits compared to 563,000 in April. It was also an increase from May of last year, which had an estimated 582,000 permits authorized.
Single-family building permit authorizations were 2.5 percent higher in May than April with 405,000 permits authorized compared to 395,000 in April. Multi-family dwelling permits in May soared to 190,000 authorizations compared to 143,000 in April.
Housing completions experienced a small increase in May compared to April with a seasonally adjusted annual rate of 544,000 completions reported. That was just above April’s 542,000 completions but far below the May 2010 rate of 702,000.
Single-family completions in May were at a rate of 431,000 compared to April’s 419,000. Multi-family completions in May were at a rate of 108,000 completions compared to April’s count of 118,000.
Regionally, housing starts increased in two of the four regions with the Northeast and the Midwest experiencing declines (-3.3% and -4.1%, respectively) and the South and West experiencing gains (1.5% and 18.1%, respectively). All regions experienced declines compared to the same month last year.
Building permits soared in May for multi-family dwellings in the Northeast as permit authorizations increased 35.6 percent. Single-family permits in the same region declined 5.3 percent. The other three regions reported gains in both single-family and multi-family dwelling permits with the exception of the Midwest which saw a slight, 1.1%, decline in multi-family dwelling permit authorizations.
Tags: housing starts, single-family homes, multi-family dwellings, building permits, housing completions
Source:
Census Bureau
New residential construction received a boost in May as building permits, housing starts, and housing completions all experienced gains according to the latest data released by the Census Bureau.
Privately owned housing starts increased by 3.5 percent in May, 2011, compared to April with a seasonally adjusted annual rate of 560,000 starts reported in May compared to April’s revised estimate of 541,000 housing starts. Housing starts are still below May of 2010’s rates which were at a seasonally adjusted rate of 580,000.
Single-family housing starts in May increased from April’s figure of 404,000 to 419,000, an increase of 3.7 percent, and multi-family dwellings increased from 114,000 starts in April to 134,000 in May.
Building permits in May were also more robust than April as builders were authorized a seasonally adjusted annual rate of 612,000 permits compared to 563,000 in April. It was also an increase from May of last year, which had an estimated 582,000 permits authorized.
Single-family building permit authorizations were 2.5 percent higher in May than April with 405,000 permits authorized compared to 395,000 in April. Multi-family dwelling permits in May soared to 190,000 authorizations compared to 143,000 in April.
Housing completions experienced a small increase in May compared to April with a seasonally adjusted annual rate of 544,000 completions reported. That was just above April’s 542,000 completions but far below the May 2010 rate of 702,000.
Single-family completions in May were at a rate of 431,000 compared to April’s 419,000. Multi-family completions in May were at a rate of 108,000 completions compared to April’s count of 118,000.
Regionally, housing starts increased in two of the four regions with the Northeast and the Midwest experiencing declines (-3.3% and -4.1%, respectively) and the South and West experiencing gains (1.5% and 18.1%, respectively). All regions experienced declines compared to the same month last year.
Building permits soared in May for multi-family dwellings in the Northeast as permit authorizations increased 35.6 percent. Single-family permits in the same region declined 5.3 percent. The other three regions reported gains in both single-family and multi-family dwelling permits with the exception of the Midwest which saw a slight, 1.1%, decline in multi-family dwelling permit authorizations.
Tags: housing starts, single-family homes, multi-family dwellings, building permits, housing completions
Source:
Census Bureau
Freddie Mac: Mortgage Interest Rates Little Changed From Last Week
June 16, 2011 (Shirley Allen)
Mortgage interest rates remained virtually unchanged from last week as both fixed rate and adjustable rate mortgages were mixed according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).
Fixed Rate Mortgages (FRM):
Thirty year and the 15 year FRMs barely budged from the previous week with the 30 year FRM reaching an average of 4.50 percent with an average 0.7 points, up from an average of 4.49 percent last week and down from 4.75 percent a year earlier.
The 15 year FRM averaged 3.67 this week with an average 0.7 points, down from an average of 3.68 last week and down from 4.20 percent a year ago
Adjustable Rate Mortgages (ARM):
ARMs were also mixed and barely moved in the last week as the 5-year Treasury-indexed hybrid ARM slid to 3.27 percent, which is down from 3.28 percent the previous week, with an average of 0.6 points. The 5 year ARM averaged 3.89 percent a year earlier.
The 1-year Treasury-indexed ARM increased this week to 2.97 percent, with an average of 0.5 points, from 2.95 percent the previous week. A year ago, the 1 year ARM averaged 3.82 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, "Mortgage rates were little changed this week as financial market participants shrugged off the recent inflation reports. The core producer price index rose just 0.2 percent in May while the core consumer price index increased 0.3 percent, both near the market consensus forecast.”
"Much of the run down in home mortgage debt so far has been through second mortgages, according to the Federal Reserve Board. Household mortgage balances fell by more than $930 billion between the peak set at the end of March 2008 and March of this year, of which, second mortgages accounted for $820 billion of the decline," Nothaft added.
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury
Source:
Freddie Mac
Mortgage interest rates remained virtually unchanged from last week as both fixed rate and adjustable rate mortgages were mixed according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).
Fixed Rate Mortgages (FRM):
Thirty year and the 15 year FRMs barely budged from the previous week with the 30 year FRM reaching an average of 4.50 percent with an average 0.7 points, up from an average of 4.49 percent last week and down from 4.75 percent a year earlier.
The 15 year FRM averaged 3.67 this week with an average 0.7 points, down from an average of 3.68 last week and down from 4.20 percent a year ago
Adjustable Rate Mortgages (ARM):
ARMs were also mixed and barely moved in the last week as the 5-year Treasury-indexed hybrid ARM slid to 3.27 percent, which is down from 3.28 percent the previous week, with an average of 0.6 points. The 5 year ARM averaged 3.89 percent a year earlier.
The 1-year Treasury-indexed ARM increased this week to 2.97 percent, with an average of 0.5 points, from 2.95 percent the previous week. A year ago, the 1 year ARM averaged 3.82 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, "Mortgage rates were little changed this week as financial market participants shrugged off the recent inflation reports. The core producer price index rose just 0.2 percent in May while the core consumer price index increased 0.3 percent, both near the market consensus forecast.”
"Much of the run down in home mortgage debt so far has been through second mortgages, according to the Federal Reserve Board. Household mortgage balances fell by more than $930 billion between the peak set at the end of March 2008 and March of this year, of which, second mortgages accounted for $820 billion of the decline," Nothaft added.
| 30-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 4.50 | 4.52 | 4.53 | 4.52 | 4.53 | 4.46 |
| Fees & Points | 0.7 | 0.7 | 0.9 | 0.7 | 0.6 | 0.8 |
| 15-Year Fixed Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.67 | 3.66 | 3.68 | 3.68 | 3.74 | 3.63 |
| Fees & Points | 0.7 | 0.7 | 0.8 | 0.6 | 0.6 | 0.8 |
| 5/1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 3.27 | 3.38 | 3.18 | 3.39 | 3.32 | 3.11 |
| Fees & Points | 0.6 | 0.5 | 0.7 | 0.4 | 0.5 | 0.6 |
| Margin | 2.74 | 2.75 | 2.75 | 2.71 | 2.76 | 2.73 |
| 1-Year Adjustable Rate Mortgages | US | NE | SE | NC | SW | W |
|---|---|---|---|---|---|---|
| Average | 2.97 | 3.15 | 2.78 | 3.20 | 2.92 | 2.77 |
| Fees & Points | 0.5 | 0.5 | 0.5 | 0.4 | 0.8 | 0.5 |
| Margin | 2.76 | 2.79 | 2.75 | 2.72 | 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 | 4.75 | 4.20 | 3.89 | 3.82 | 4.49 | 3.68 | 3.28 | 2.95 |
| Fees & Points | 0.7 | 0.7 | 0.7 | 0.6 | 0.7 | 0.7 | 0.5 | 0.5 |
| Margin | N/A | N/A | 2.75 | 2.75 | N/A | N/A | 2.74 | 2.76 |
Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury
Source:
Freddie Mac
New Home Builders Not Seeing a Bright Future
June 16, 2011 (Brian Michael)
Confidence among the nation’s new single-family home builders declined three points in June to a reading of 13 according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI had been holding steady, albeit at a low level, but this months rating was the lowest since September 2010.
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.
For June, every component of the HMI fell. The largest drop was reported in the component gauging sales expectations over the next six months, which dropped 4 points to a new record low of 15 that has only been matched in February and March of 2009.
The component gauging current sales conditions and the component gauging traffic of prospective buyers each fell two points, to 13 and 12, respectively.
All regions, but the Northeast, experienced declines in this month’s HMI. The Midwest dropped three points to 11, the South dropped two points to 14 and the West dropped four points to 12. The Northeast gained two points, bringing its HMI score to 17 for the month.
"Builders are being squeezed by the continuing weakness in existing-home prices – against which they must compete -- as well as rising material costs," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "In addition to the ongoing impacts of distressed property sales on home prices, appraisal values and consumer confidence, rising costs for materials such as roofing, copper, wallboard, vinyl siding and other components have made it extremely difficult to construct a new home and sell it at a price that covers the costs."
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
Confidence among the nation’s new single-family home builders declined three points in June to a reading of 13 according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI had been holding steady, albeit at a low level, but this months rating was the lowest since September 2010.
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.
For June, every component of the HMI fell. The largest drop was reported in the component gauging sales expectations over the next six months, which dropped 4 points to a new record low of 15 that has only been matched in February and March of 2009.
The component gauging current sales conditions and the component gauging traffic of prospective buyers each fell two points, to 13 and 12, respectively.
All regions, but the Northeast, experienced declines in this month’s HMI. The Midwest dropped three points to 11, the South dropped two points to 14 and the West dropped four points to 12. The Northeast gained two points, bringing its HMI score to 17 for the month.
"Builders are being squeezed by the continuing weakness in existing-home prices – against which they must compete -- as well as rising material costs," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "In addition to the ongoing impacts of distressed property sales on home prices, appraisal values and consumer confidence, rising costs for materials such as roofing, copper, wallboard, vinyl siding and other components have made it extremely difficult to construct a new home and sell it at a price that covers the costs."
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
LendingTree Mortgage Rate Pulse: Fixed Rate Mortgages Continue Declines
June 16, 2011 (Shirley Allen)
According to the data collected on June 14, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.67 percent (4.81% APR) for 30-year fixed mortgages, which is down from 4.71 percent reported the previous week, 3.88 percent (4.12% APR) for 15-year fixed mortgages, which is down from 3.99 percent reported the previous week, and 3.31 percent (3.36% APR) for 5/1 adjustable rate mortgages (ARM), which was up from 3.27 percent reported last week.
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 last week, 3.375 percent (3.61% APR) for a 15-year fixed mortgage, which was also the same offered last week, and 2.75 percent (3.12% APR) for a 5/1 ARM, which is the same rate offered the week before.
"Rates are continuing their free fall, spurring refinancing activity," said Cameron Findlay, chief economist of LendingTree.com. "Home purchase activity, however, hasn't seen the same spike – and homeownership is currently down to 1998 levels. Yet if we do a cost comparison from 1998 to today, we see the impact low mortgage rates have on home affordability. For example, in 1998, the average rate for a 30-year mortgage was 6.94%. Today, the average is just 4.71%. How does that translate? In 1998, for a $250,000 loan, a homebuyer's monthly payment would have been $1654 versus just $1298 today. That's a savings of $356 a month and a significant boost to what today's buyers can afford."
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, freddie mac, lenders
According to the data collected on June 14, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.67 percent (4.81% APR) for 30-year fixed mortgages, which is down from 4.71 percent reported the previous week, 3.88 percent (4.12% APR) for 15-year fixed mortgages, which is down from 3.99 percent reported the previous week, and 3.31 percent (3.36% APR) for 5/1 adjustable rate mortgages (ARM), which was up from 3.27 percent reported last week.
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 last week, 3.375 percent (3.61% APR) for a 15-year fixed mortgage, which was also the same offered last week, and 2.75 percent (3.12% APR) for a 5/1 ARM, which is the same rate offered the week before.
"Rates are continuing their free fall, spurring refinancing activity," said Cameron Findlay, chief economist of LendingTree.com. "Home purchase activity, however, hasn't seen the same spike – and homeownership is currently down to 1998 levels. Yet if we do a cost comparison from 1998 to today, we see the impact low mortgage rates have on home affordability. For example, in 1998, the average rate for a 30-year mortgage was 6.94%. Today, the average is just 4.71%. How does that translate? In 1998, for a $250,000 loan, a homebuyer's monthly payment would have been $1654 versus just $1298 today. That's a savings of $356 a month and a significant boost to what today's buyers can afford."
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 6/15/11 *Updated Quarterly |
|||
| STATE | LOWEST MORTGAGE RATE | LOAN-TO-VALUE RATIO* | NEGATIVE EQUITY* |
| US Average | 4.38% (4.51% APR) | 70.2% | 35.0% |
| Alabama | 4.25% (4.39% APR) | 67.0% | 28.9% |
| Alaska | 4.75% (4.95% APR) | 66.3% | 17.3% |
| Arizona | 4.38% (4.51% APR) | 94.6% | 39.4% |
| Arkansas | 4.38% (4.49% APR) | 72.6% | 43.9% |
| California | 4.38% (4.51% APR) | 70.6% | 34.8% |
| Colorado | 4.38% (4.55% APR) | 71.9% | 22.2% |
| Connecticut | 4.25% (4.36% APR) | 59.5% | 43.3% |
| Delaware | 4.25% (4.36% APR) | 67.6% | 50.3% |
| District of Columbia | 4.25% (4.48% APR) | 58.3% | 25.5% |
| Florida | 4.25% (4.36% APR) | 90.8% | 41.1% |
| Georgia | 4.38% (4.50% APR) | 80.9% | 25.8% |
| Hawaii | 4.38% (4.50% APR) | 54.2% | 25.4% |
| Idaho | 4.25% (4.39% APR) | 73.4% | 29.8% |
| Illinois | 4.38% (4.51% APR) | 72.4% | 31.7% |
| Indiana | 4.25% (4.44% 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 | 4.25% (4.39% APR) | 67.6% | 53.1% |
| Louisiana | 4.63% (4.82% APR) | 78.5% | 75.5% |
| Maine | 4.38% (4.49% APR) | 58.6% | 30.1% |
| Maryland | 4.25% (4.48% APR) | 70.4% | 25.6% |
| Massachusetts | 4.38% (4.49% APR) | 60.7% | 46.0% |
| Michigan | 4.38% (4.50% APR) | 84.3% | 32.2% |
| Minnesota | 4.25% (4.36% APR) | 65.6% | 22.2% |
| Mississippi | 4.63% (4.82% APR) | 78.4% | 30.1% |
| Missouri | 4.25% (4.37% 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 | 4.38% (4.49% APR) | 69.8% | 25.2% |
| New Jersey | 4.25% (4.36% APR) | 62.2% | 29.0% |
| New Mexico | 4.25% (4.40% APR) | 66.4% | 45.8% |
| New York | 4.38% (4.38% APR) | 50.1% | 42.1% |
| North Carolina | 4.38% (4.51% APR) | 71.2% | 33.2% |
| North Dakota | 4.63% (4.82% APR) | 60.1% | 37.7% |
| Ohio | 4.38% (4.50% APR) | 75.4% | 27.0% |
| Oklahoma | 4.25% (4.37% APR) | 71.0% | 52.4% |
| Oregon | 4.25% (4.41% APR) | 69.6% | 19.6% |
| Pennsylvania | 4.25% (4.36% APR) | 62.5% | 75.7% |
| Rhode Island | 4.63% (4.82% APR) | 62.6% | 36.6% |
| South Carolina | 4.38% (4.50% APR) | 71.0% | 29.0% |
| South Dakota | 4.25% (4.37% APR) | N/A | N/A |
| Tennessee | 4.38% (4.50% APR) | 71.2% | 30.7% |
| Texas | 4.25% (4.38% APR) | 68.8% | 30.6% |
| Utah | 4.38% (4.62% APR) | 73.7% | 22.2% |
| Vermont | 4.63% (4.82% APR) | N/A | N/A |
| Virginia | 4.25% (4.36% APR) | 71.7% | 25.0% |
| Washington | 4.38% (4.51% 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 | 4.38% (4.51% 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, freddie mac, lenders
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