Foreclosure Rates Slow In First Half of 2011

July 28, 2011 (Chris Moore)

Foreclosure rates decreased on a year-over-year basis in the first half of 2011 according to RealtyTrac’s Midyear 2011 Metropolitan Foreclosure Market Report with 84 percent of the metropolitan areas posting improved foreclosure rates.

Cities in California, Nevada, and Arizona accounted for the top 10 foreclosure rates and 15 out of the top 20. All top 10 metro areas did, however, post decreasing foreclosure rates compared to the first half of 2010.

Unfortunately, the decrease in foreclosure activity was not attributed to an improvement in the housing market, but because of continued delays in the foreclosure process due to paperwork problems.

“Foreclosure activity continued to slow in the first half of 2011, especially in the most foreclosure-saturated markets and in markets where the judicial foreclosure process is used,” said James J. Saccacio, chief executive officer of RealtyTrac. “The 20 metro areas with the biggest year-over-year decreases in foreclosure activity were all in states with judicial foreclosure processes — New York, Maryland, Florida, New Jersey, Connecticut, Massachusetts, and Illinois.

“These dramatic decreases indicate the foreclosure pipeline continues to be clogged in many local markets across the country, sometimes by a glut of already-foreclosed properties that are not selling quickly, sometimes by a mountain of improperly filed foreclosures that are blocking the inflow of new foreclosure filings — and sometimes by both.”

The Las Vegas-Paradise metro area continued to post the nation’s highest foreclosure rate in the first half of 2011, with one in every 19 housing units (5.36%) receiving a foreclosure filing, followed by the Phoenix-Mesa-Scottsdale (3.51%) at No. 2; Modesto at No. 3 (3.32%); Stockton at No. 4 (3.24%); Riverside-San Bernardino-Ontario at No. 5 (3.21%); Vallejo-Fairfield at No. 6 (3.09%); Reno Sparks at No. 7 (2.96%); Bakersfield at No. 8 (2.78%); Merced at No. 9 (2.78%); and Sacramento-Arden-Arcade-Roseville at No. 10 (2.53%).

Out of the nation’s 20 most populated areas, only Seattle posted an increase in foreclosure activity in the first half of 2010 of 10 percent. That earned Seattle the biggest jump out of the 211 metro areas in the rankings, jumping from No. 97 to No. 57.

Baltimore had the biggest drop in the ratings among the nation’s 20 largest metro areas with a 74 percent drop in foreclosure activity. Baltimore’s ranking went from No. 83 to No. 182.

Foreclosure activity declined on a year-over-year basis in 178 out of the 211 metropolitan areas with a population over 200,000 or more in the first half of 2011.

Top 20 Metro Foreclosure Rates — 2011 Midyear

Rate Rank	Metro Name	Properties with Filings	%HU	1/every X HU	%Chg from Jul-Dec 10	%Chg from Jan-Jun 10	Rate Rank Jan-Jun 10
--	U.S. Total	1,170,402	0.90	111	-25.49	-29.27
1	Las Vegas-Paradise, NV	43,944	5.36	19	-18.10	-17.90	1
2	Phoenix-Mesa-Scottsdale,AZ	60,985	3.51	28	-8.41	-16.86	7
3	Modesto,CA	5,824	3.32	30	-20.90	-27.51	3
4	Stockton,CA	7,422	3.24	31	-18.21	-25.77	6
5	Riverside-San Bernardino-Ontario, CA	46,959	3.21	31	-16.19	-26.30	5
6	Vallejo-Fairfield,CA	4,655	3.09	32	-14.60	-20.90	9
7	Reno-Sparks,NV	5,413	2.96	34	-14.54	-20.44	11
8	Bakersfield,CA	7,633	2.78	36	-20.65	-23.75	12
9	Merced,CA	2,334	2.78	36	-26.35	-37.63	4
10	Sacramento--Arden-Arcade--Roseville,CA	21,721	2.53	39	-17.39	-20.36	14
11	Fresno,CA	7,431	2.40	42	-8.87	-10.80	21
12	CapeCoral-FortMyers, FL	8,699	2.38	42	-44.35	-52.15	2
13	Prescott,AZ	2,475	2.32	43	2.53	-8.60	27
14	Visalia-Porterville,CA	3,199	2.30	43	-14.51	-14.72	19
15	Boise City-Nampa, ID	5,336	2.20	45	-20.43	-16.88	22
16	Atlanta-Sandy Springs-Marietta, GA	44,160	2.04	49	-18.02	-15.69	30
17	Greeley,CO	1,925	2.04	49	-28.25	-17.52	29
18	Oxnard-Thousand Oaks-Ventura, CA	5,192	1.89	53	-13.02	-16.85	32
19	Tucson,AZ	7,939	1.85	54	1.44	-5.16	39
20	Salt Lake City,UT	7,417	1.85	54	-17.30	-10.38	36

Tags: RealtyTrac, Metropolitan Foreclosure Market Report, foreclosure rates, metropolitan areas, foreclosure activity, housing market, paperwork problems

Source:
RealtyTrac

FHA Loan Originations Down 22% From Last Year

July 28, 2011 (Shirley Allen)

Mortgage loan applications to the Federal Housing Administration (FHA) were 22 percent lower in June than they were a year ago due to a nearly 50 percent drop in refinance applications according to the agency’s Single-Family Outlook report.

The FHA had a total of 131,796 loan applications in June of this year compared to 168,915 in June of 2010, a decrease of 22 percent. June’s loan applications still out paced May’s, which recorded a total of 118,784 applications.

The drop in loan applications is directly attributed to a 50 percent drop in year-over-year refinance applications. In June of last year, the FHA recorded 69,876 refinance loan applications, while in June of this year, there were only 35,367 refinance applications, a decrease of 34,509 applications.

Year-over-year, purchase loan applications were down 2.5 percent, with June 2011 registering 87,674 purchase applications compared to 89,951 purchase loan applications in June 2010.

The number of completed FHA insured loans also dropped in June, nearly 33 percent compared to last year. In June 2010, the FHA insured 150,911 loans, while in June of this year, the FHA insured 101,469 mortgages.

Completed purchase money mortgages were down nearly 36 percent from 115,831 in June 2010 to 74,370 in June 2011. Similarly, refinance transactions dropped nearly 29 percent from 29,776 in June of last year to 21,242 in June 2011.

The average FICO score for a homebuyer securing a FHA loan in June was 699. The average FICO score a year ago was 698. For refinanced transactions, the average FICO score in June was 698, while the average score a year earlier was 694.

At the end of June, the FHA had 7,151,199 insured single-family mortgages in its portfolio with an amortized balance of $994.6 billion.

The serious delinquency rate, homes that were 90 days or more past due, was 8.2 percent, down from 8.6 percent in June 2010.

Tags: FHA, Single-family Outlook report, loan originations, purchase loans, refinance loans, FICO score, serious delinquency rate

Source:
HUD

VA Launches Initiative to Assist Veterans

July 28, 2011 (Chris Moore)

The Department of Veterans Affairs (VA) has launched a new program to provide financial assistance and support services to help bring an end to Veteran homelessness and to promote housing stability for at-risk Veteran families to prevent them from becoming homeless.

As part of the Supportive Services for Veteran Families (SSVF) program, the initial $60 million grant will serve 22,000 Veterans and Veteran families at 85 non-profit community agencies in 40 states and the District of Columbia.

Agencies will have the ability on behalf of Veterans to provide financial assistance for such purposes as housing/rent payments, utility payments, security deposits and moving costs. Support services are also provided and include outreach, case management, assistance in obtaining VA benefits, and assistance in obtaining and coordinating other public benefits.

“This new homeless prevention program will provide additional comprehensive support to Veterans who have served honorably, and now find themselves in a downward spiral toward despair and homelessness,” said VA Secretary Eric K. Shinseki. “This program expands our capacity to act before a Veteran becomes homeless and to target the problem of family homelessness. These grants would not have been possible without the extraordinary partnerships forged with community organizers who are firmly committed to making a positive difference in lives of Veterans and their families.”

The SSVF Program, a critical element of VA’s plan to prevent and end homelessness among Veterans, was developed to promote housing stability among homeless and at-risk Veterans and their families. The VA awards grants to private non-profit organizations and consumer cooperatives that can provide a range of supportive services to eligible very low-income Veteran families.

Veterans who would like more information about SSVF, or who would like to get a list of award recipients and additional details, can visit http://www.va.gov/homeless or http://www1.va.gov/homeless/ssvf.asp.

Tags: veterans, homeless, at-risk, SSVF, grants, homeless prevention, financial assistance, housing assistance

Source:
VA

FHFA Reports Mortgage Interest Rates Declined in June

July 27, 2011 (Brian Michael)

Mortgage interest rates declined from 4.92 percent in May to 4.79 percent in June according to the Federal Housing Finance Agency’s (FHFA) Monthly Interest Rate Survey of purchase-money mortgages.

The results of the survey reflect loans closed during the June 24-30 period from 31 lenders and data from 6008 mortgage loans. Since mortgage loans typically take 30-45 to close, the reported rates reflect market conditions in mid to late May.

The average interest rate of all mortgage loans, fixed and adjustable-rate, was 4.61 percent in June, down from 4.75 percent in May.

The effective mortgage interest rate, including initial fees and charges, was 4.74 percent in June, down from 4.87 percent in May.

Purchase-money mortgage loans that were originated without points remained popular, with 28 percent of all mortgages being no-point loans. It was the third straight month that no-point purchase-money mortgage loans remained at that level.

Initial fees and charges averaged 0.94 percent of the loan balance in June, up from 0.85 percent in May.

The average loan amount declined in June to $219,000 from $222,900 in May, with the average loan-to-price ratio declining from 76.4 percent in May to 76.3 percent in June.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Home by Combined Lenders, used to index some ARM contracts, decreased from 4.74 percent in May to 4.62 percent in June.

Tags: FHFA, mortgage interest rates, purchase money mortgages, initial fees and charges, points, mortgage loan, ARM, no-points mortgage

Source:
FHFA

Mortgage Interest Rates Decline Slightly From Last Week

July 27, 2011 (Shirley Allen)

According to the data collected on July 26, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders were 4.74 percent (5.01% APR) for 30-year fixed mortgages, which is down from 4.77 percent reported the previous week, 3.89 percent (4.33% APR) for 15-year fixed mortgages, which is down from 4.00 percent reported the previous week, and 3.37 percent (3.58% APR) for 5/1 adjustable rate mortgages (ARM), which was down from 3.56 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 rate offered last week, 3.375 percent (3.61% APR) for a 15-year fixed mortgage, which is the same rate offered last week, and 2.75 percent (3.04% APR) for a 5/1 ARM, which is also the same rate that was offered the week before.

"With the nation's debt ceiling deadline less than a week away, there's a possibility for homeowners to face higher borrowing costs," says Mona Marimow, Senior Vice President at LendingTree. "The effects of the upcoming decision could ripple through our economy and ultimately impact homeowners if the government's credit rating were to drop. The good news is that current rates remain at historical lows and there's still time to act before borrowers feel the impact."

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 7/27/11 *Updated Quarterly
STATE	LOWEST MORTGAGE RATE	LOAN-TO-VALUE RATIO*	NEGATIVE EQUITY*
US Average	4.38% (4.51% APR)	69.7%	33.1%
Alabama	4.38% (4.50 APR)	67.4%	27.9%
Alaska	4.38% (4.51% APR)	65.9%	17.6%
Arizona	4.38% (4.51% APR)	93.6%	38.9%
Arkansas	4.38% (4.49% APR)	72.2%	41.7%
California	4.38% (4.50% APR)	70.1%	34.6%
Colorado	4.38% (4.51% APR)	71.8%	21.9%
Connecticut	4.25% (4.36% APR)	59.5%	43.9%
Delaware	4.25% (4.36% APR)	66.4%	37.9%
District of Columbia	4.38% (4.61% APR)	58.7%	26.1%
Florida	4.25% (4.36% APR)	88.8%	39.1%
Georgia	4.38% (4.50% APR)	80.8%	25.7%
Hawaii	4.38% (4.50% APR)	54.0%	26.3%
Idaho	4.38% (4.51% APR)	72.6%	29.5%
Illinois	4.38% (4.50% APR)	72.2%	31.7%
Indiana	4.38% (4.56% APR)	69.3%	27.8%
Iowa	4.38% (4.51% APR)	66.9%	42.1%
Kansas	4.38% (4.51% APR)	70.2%	30.9%
Kentucky	4.38% (4.50% APR)	67.7%	51.9%
Louisiana	4.38% (4.51% APR)	74.7%	79.6%
Maine	4.38% (4.49% APR)	58.4%	29.7%
Maryland	4.38% (4.50% APR)	70.1%	25.5%
Massachusetts	4.38% (4.49% APR)	60.9%	45.4%
Michigan	4.38% (4.50% APR)	84.2%	32.6%
Minnesota	4.25% (4.36% APR)	66.2%	21.8%
Mississippi	4.38% (4.51% APR)	78.5%	29.5%
Missouri	4.38% (4.50% APR)	71.7%	31.0%
Montana	4.38% (4.51% APR)	60.5%	32.5%
Nebraska	4.38% (4.51% APR)	72.7%	44.1%
Nevada	4.25% (4.40% APR)	114.7%	54.0%
New Hampshire	4.38% (4.49% APR)	70.7%	25.4%
New Jersey	4.25% (4.36% APR)	62.3%	29.3%
New Mexico	4.38% (4.51% APR)	67.3%	41.3%
New York	4.38% (4.49% APR)	48.4%	35.1%
North Carolina	4.38% (4.51% APR)	71.1%	32.0%
North Dakota	4.38% (4.51% APR)	60.6%	35.3%
Ohio	4.38% (4.50% APR)	75.4%	27.0%
Oklahoma	4.38% (4.49% APR)	75.5%	53.5%
Oregon	4.38% (4.54% APR)	69.7%	19.5%
Pennsylvania	4.25% (4.34% APR)	60.6%	42.3%
Rhode Island	4.38% (4.51% APR)	62.8%	36.8%
South Carolina	4.38% (4.50% APR)	70.9%	28.1%
South Dakota	4.38% (4.49% APR)	N/A	N/A
Tennessee	4.38% (4.50% APR)	71.3%	29.5%
Texas	4.25% (4.37% APR)	68.4%	30.5%
Utah	4.38% (4.62% APR)	73.3%	22.3%
Vermont	4.38% (4.51% APR)	N/A	N/A
Virginia	4.25% (4.36% APR)	70.8%	24.6%
Washington	4.38% (4.50% APR)	68.0%	21.3%
West Virginia	4.38% (4.51% APR)	66.5%	57.6%
Wisconsin	4.38% (4.51% APR)	68.5%	34.4%
Wyoming	4.38% (4.51% APR)	63.5%	22.7%

Home loan rates above are reflective of actual rates offered to borrowers by lenders on the LendingTree network. Lowest rates shown reflect the payment of one discount point. Rates will vary based on the borrower's loan details and credit profile.

More information is available here:



Tags: lendingtree, mortgage rates, mortgage loans, average home rates, 30 year fixed, 15 year fixed, 5/1 arm, adjustable rate mortgage, fixed mortgage, lenders

Mortgage Applications Lose Momentum

July 27, 2011 (Chris Moore)

The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending July 22, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 5.0 percent as both purchase applications and refinance applications lost momentum from the previous week.

On an unadjusted basis, the Index decreased 4.9 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 0.3 percent.

Purchase Applications:

The seasonally adjusted Purchase Index decreased 3.8 percent from one week earlier. The four week moving average is down 0.5 percent for the seasonally adjusted Purchase Index.

The unadjusted Purchase Index decreased 3.4 percent compared with the previous week, and is 2.2 percent higher than the same week one year ago.

Refinance Activity:

The Refinance Index decreased 5.5 percent from the previous week. The four week moving average is down 0.3 percent.

The refinance share of mortgage activity decreased to 69.6 percent of total applications from 70.1 percent last week.

Mortgage Interest Rates:

The average contract interest rate for 30-year fixed rate mortgages increased to 4.57 percent from 4.54 percent last week, with points increasing to 1.14 from 0.98 (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 3.67 percent from 3.66 percent last week, with points increasing to 1.08 from 0.97 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

ARMs:

The adjustable-rate mortgage (ARM) share of activity increased to 6.1 percent from 5.8 percent the previous week.


Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate

Sources:
MBA

Freddie Mac Averaging 11k Loan Mods per Month in 2011

July 27, 2011 (Brian Michael)

Freddie Mac has completed 66,207 loan modifications, an average of 11,305 per month, in the first half of 2011 according to the recently released Monthly Volume Summary for June 2011. The government sponsored enterprise (GSE) completed 10,809 loan modifications in June, up from 8,891 in May.

The delinquency rate for single-family homes in Freddie Mac’s portfolio decreased to 3.50 percent from 3.57 percent in May. A year ago the delinquency rate for single-family homes was 3.96 percent.

Delinquency rates for multi-family dwellings also decreased to 0.31 percent in June. The delinquency rate in May was 0.38 percent and the rate in June of last year was 0.22 percent.

Single-family delinquencies are based on the number of mortgages 90 days or more delinquent or in foreclosure as of period end while multifamily delinquencies are based on the unpaid principal balance of mortgages 60 days or more delinquent or in foreclosure as of period end.

Freddie Mac’s total mortgage portfolio decreased at an annualized rate of 1.7 percent from May to June as their total holdings decreased from $2.132 trillion to $2.129 trillion.

Single-family refinance loan purchase and guarantee volume was $14.0 billion in June, reflecting 53 percent of total mortgage purchases and issuances.

Tags: Freddie Mac, Monthly Volume Report, single-family homes, delinquency rates, multi-family dwellings, mortgage portfolio, loan modifications

Source:
Freddie Mac

June Home Sales Robust in Las Vegas

July 27, 2011 (Shirley Allen)

Sales of new and resale homes in Las Vegas jumped up 15 percent from May to June, but home prices continued to slide downward as distressed properties accounted for 68.5 percent of all sales according to the latest data released from DataQuick.

A total of 5,262 new and resale houses and condos closed escrow in the Las Vegas-Paradise metro area in June. Sales were 15.1 percent higher than May, but 5.1 percent lower than June of 2010.

Home sales in the region typically increase 9.5 percent between May and June. Re-sales last month were 35.7 percent above average for June but new home sales were so low, the second-lowest on record for a June, that total sales fell 1.3 percent below the average number of sales for June.

Cash buyers were responsible for 50.6 percent of the purchases in June, which was down from 53 percent in May, but up from 41.9 percent a year earlier. The record for cash purchases was in February 2011, when 56.7 percent of the sales were for cash.

The price that cash buyers are paying continues to decline as the median price paid by a cash buyer in June was $83,000, which is down from $89,000 in May, and down from $106,000 in June 2010.

Absentee buyers, usually investors and vacation home buyers, accounted for 45.9 percent of all homes sold in June. The prices they paid were also less than previous months with the median price paid in June being $94,000, which was down from $98,900 in May and down from $115,000 in June of 2010.

The overall median price paid for new and resale homes and condos in June was $115,000, which was down from $117,000 in May, and down from $139,000 in June of last year. Cash buyers and investors accounted for 41.1 percent of the sales for homes under $100,000. A year ago, they accounted for 28.2 percent of those same sales.

The current median price is at its lowest level since October of 1995 when the median home price was $113,000, and it’s 63.1 percent below the peak median price of $312,000 in November 2006.

Distressed sales represented 68.5 percent of the resale market in June as foreclosures accounted for 57.5 percent of the distressed sales and short sales accounted for 11.0 percent of the distressed sales.

Foreclosures continued at a high rate in June with lenders foreclosing on 3,673 single-family homes and condos, down from 3,818 foreclosures in May, the most ever recorded in a single month.

Tags: DataQuick, existing home sales, Las Vegas, distressed properties, resale homes, condos, cash buyers, investors, median price

Source:
DataQuick

Seasonal Factors Behind Housing Price Gains

July 26, 2011 (Chris Moore)

Home prices increased for a second consecutive month according to the S&P/Case-Shiller Home Price Indices (HPI) as both the 10- and 20-City Composites showed improvement in home prices due to seasonal sales factors.

Home prices for the 10-City composite increased 1.1 percent from April to May while prices for the 20-City Composite increased 1.0 percent.

Positive monthly increases were registered in 16 of the 20 metropolitan statistical areas (MSA) with only Detroit, Las Vegas, and Tampa experiencing declines and Phoenix was unchanged.

In addition, Detroit, Las Vegas, and Tampa all posted new index lows in May with home prices in the three cities now 51.2 percent, 59.3 percent, and 47.5 percent below their 2005-2006 peak price levels, respectively.

Compared to home prices a year ago, only Washington D.C. registered an increase, up 1.3 percent. Minneapolis had the worse showing with a decline in prices of 11.7 percent.

“We see some seasonal improvements with May’s data,” says David M. Blitzer, Chairman of the Index Committee at S&P Indices. “This is a seasonal period of stronger demand for houses, so monthly price increases are to be expected and were seen in 16 of the 20 cities. The exceptions where prices fell were Detroit, Las Vegas and Tampa. However, 19 of 20 cities saw prices drop over the last 12 months. The concern is that much of the monthly gains are only seasonal.”

Data from both the 10- and 20-City Composites shows that as of May 2011, average home prices across the United States are back to the levels they were in the summer of 2003.

From market peak in June/July through May 2011, the 10-City Composite has declined 32.1 percent while the 20 City Composite has dropped 32.3 percent.

From peak to its trough in April 2009, the 10-City Composite has declined 33.5 percent while the 20-City Composite, which reached its trough in March 2011, has declined 33.3 percent.

“While the monthly data were encouraging, most MSAs and both Composites fared poorly in annual terms. Nineteen of the 20 MSAs and the two Composites posted negative annual growth rates in May 2011. The 10-City Composite was down 3.6% and the 20-City Composite was down 4.5% in May 2011 versus May 2010. Minneapolis posted a double-digit decline in annual rate of 11.7%. The only beacon of hope was Washington D.C. with a +1.3% annual growth rate and a +2.4% monthly increase. We have now seen two consecutive months of generally improving prices; however, we might have a long way to go before we see a real recovery. Sustained increases in home prices over several months and better annual results need to be seen before we can confirm real estate market recovery,” Blitzer added.

Tags: S&P, Case-Shiller Home Price Indices, 10-City Composite, 20-City Composite, home prices, positive gains, seasonal improvements

Source:
S&P

New Single-Family Home Sales Decline 1.0 Percent in June

July 26, 2011 (Chris Moore)

Sales of new single-family homes declined 1.0 percent from May to June at a seasonally adjusted rate of 312,000, the second straight month of declines, according to the latest data from the U.S. Census Bureau.

New single-family home sales had fallen to an all-time low of 279,000 in February and were followed by gains in March and April, but dipped again in May. Sales in June were still 1.6 percent higher than the estimated 307,000 units sold in June of 2010.

The median sales price of the new homes sold in June was $235,200, which was up from $222,000 in May. The average sales price in June was $269,000, which was also up from $266,400 in May.

Two of the four regions experienced a gain in new home sales from May to June, while three of the regions experienced year-over-year sales gains.

New single-family home sales in the South increased 3.4 percent, while in the Midwest, sales increased 9.5 percent from May to June. The West reported a sales decline of 12.7 percent, while sales in the Northeast dropped 15.8 percent.

In year-over-year sales, only the Northeast suffered a decline. The Midwest reported a sales increase of 2.2 percent, the South saw an increase of 4.6 percent and the West reported a 23.2 percent increase in new single-family home sales. Year-over-year new home sales in the Northeast declined 51.5 percent.

Inventory of new single-family homes remained relatively balanced by historic standards with a seasonally adjusted 164,000 homes available for sale, which translates into a 6.3 months supply of inventory.

Tags: Census Bureau, new home sales, single-family homes, median sales price, average sales price

Source:
Census Bureau

Pre-Housing Bust Loans Account for Almost Two-Thirds of Delinquencies

July 26, 2011 (Brian Michael)

Mortgage loans that were originated in 2005 to 2007 account for nearly two-thirds of past due balances according to Equifax. And although 30+ day delinquencies have been on the decline, roll rates for 60+ and 90+ day delinquencies continue to rise.

Lender loan write-offs for first mortgages, home equity installment loans, and home equity revolving accounts reached $304.6 billion in 2010. Equifax’s analysis suggests that number will continue to climb in the future with no signs of when it will peak.

By comparison, the combined amount of loan write-offs in 2006 and 2007 totaled only $126.7 billion.

Equifax estimates that as of May 2011, there are approximately $319.7 billion in first mortgages in the initial stages of the foreclosure process that were originated in 2006 and 2007. Not surprising considering the amount of sub-prime lending activity that occurred at that time.

Eventually, many of these homes will enter into the shadow inventory and depending on the state, will begin entering the housing market as real estate owned (REO) properties in one to three years.

At the end of May 2011, REO properties were three percent of all first mortgages totaling $21.8 billion.

Equifax says REO properties represent a major roadblock to economic recovery as REO rates remain high while lenders struggle to divest themselves of properties through auctions and short sales.

Foreclosure completion rates are at 1.45 percent, almost at the same level as bankruptcies which are currently at a rate of 1.6 percent. Equifax says that the similar rates suggest that the majority of REO properties are a result of bankruptcy proceedings.

"Shadow inventory and real estate owned properties are still playing a dominant role in today's mortgage market and slowing the pace of economic recovery. While we are seeing stabilization across multiple sectors of lending, there remains a significant volume of delinquent first mortgage loans, which has slowed the foreclosure process. Until these foreclosures are processed, the mortgage market will continue to impact economic growth," said Craig Crabtree, senior vice president and general manager, Equifax Mortgage Services

Tags: Equifax, pre-housing bust, loan delinquencies, first mortgages, home quity installment loans, home equity revolving accounts, loan write-offs, REO, mortgage market

Source:
Equifax

Misery Index Continues to Climb

July 26, 2011 (Shirley Allen)

The U.S. Misery Index increased from 12.67 in May to 12.76 in June, with the poor unemployment numbers observed in June being the major contributing factor to the increase. Unemployment increased from 9.1 percent in May to 9.2 percent in June, while inflation remained at 3.6 percent. A year ago the Misery Index was 10.74.

The Misery Index tends to reappear during times of economic hardship and is most associated with the economic times during the Jimmy Carter Administration. The Carter Administration has the dubious honor of claiming the highest Misery Index reading of almost 22 percent in June of 1980.

Ironically, during his run for the Presidency in the summer of 1976 when the Misery Index was at 13.57, Carter stated that no man responsible for a country with a Misery Index that high had the right to even ask to be President. Those words would come back to haunt him in 1980.

After the economic recovery in the 1980’s, the Index lived in relative obscurity, with the exception of a brief spike in the last year of the first Bush Administration, then falling into the single digits in the early 1990’s before making a reappearance into the double digits in 2008.

The Misery Index was created by Economist Arthur Okun and was launched in the 1970s in an attempt to gauge economic hardship by adding the unemployment rate to the inflation as a measurement of American’s misery.

The index is at a 28 year high and doesn’t look to get better anytime soon. Although the Federal Reserve predicts the inflation rate in the second half of 2011 should decrease due to easing oil prices, July has seen the return of several mass lay-offs and first time unemployment claims have been over 400,000 for 15 weeks in a row.

Tags: Misery Index, unemployment, inflation, economic hardship, Jimmy Carter, Ronald Reagan, George Bush, Federal Reserve

Source:
Misery Index

EHLP Deadline Extended to Wednesday July 27th

July 25, 2011 (Brian Michael)

The Department of Housing and Urban Development (HUD) has announced that it is extending the deadline for accepting pre-applications for the Emergency Homeowners Loan Program (EHLP) to Wednesday July 27, 2011, to give at-risk homeowners more time to apply for the program.

The program was designed to assist homeowners who have experienced a reduction in income and are at risk of foreclosure due to involuntary unemployment or underemployment caused by economic conditions or a medical condition.

Under EHLP guidelines, eligible homeowners can qualify for an interest free loan which pays a portion of their monthly mortgage for up to two years, or up to $50,000, whichever comes first.

The program was launched in June by the Department of Housing and Urban Development (HUD) in conjunction with NeighborWorks America and is expected to aid up to 30,000 distressed borrowers with an average loan of approximately $35,000.

Homeowners in the following states are eligible for EHLP if they meet certain requirements: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming and Puerto Rico.

Only participating agencies found on www.FindEHLP.org are approved to accept Pre-Applicant Screening Worksheets. There is no fee to submit a worksheet or to get assistance for filling out the worksheet. You can also call toll free at 855-346-3345 for assistance.

Tags: HUD, NeighborWorks America, EHLP, Pre-Applicant Screening Worksheets, homeowners, interest free loan, mortgage assistance, unemployment, economic conditions

Source:
HUD

Fannie Mae Downgrades Housing Market Outlook

July 25, 2011 (Chris Moore)

Fannie Mae says that a tepid housing recovery that has yet to make any contribution to economic growth should continue for the remaining of 2011, with declines in home prices and mortgage originations leading to an overall downgrade in the housing market.

According to Fannie Mae’s July Housing Forecast, although housing is on a slow track, some positive signs are emerging, but not yet at a level that can contribute to an economic expansion. Typically at this point in an economic recovery, housing has generally added significant growth, usually about one point to gross domestic product (GDP). However, since the end of the recession in 2009, the housing market has yet to make a contribution.

Data for home sales continues to be mixed. Existing home sales in May fell to their lowest level since November of 2010, however, pending home sales jumped up 8.2 percent in May after falling by more than that the previous month. This could partially explain May’s poor existing home sales report and could indicate a rebound in existing home sales may be coming in August.

New home sales remain at depressed levels and dropped in May, following two months of gains. Housing starts climbed in May, but that only partially offset the drop from the previous month. Building permits for single-family homes have been relatively flat, but permits for multi-family dwellings have been elevated for the last two months.

The percentage of distressed property sales has been lower, relieving pressure on home prices for the time being. However, Fannie Mae doesn’t think home prices have bottomed out yet, as the slight seasonal improvements we’ve seen recently will likely fade by the end of the year.

New home market supply-demand conditions have improved with the inventory falling to a 6.2 months supply of homes, matching its long term average.

Existing home inventory continues to have an excess supply with over nine months worth of inventory currently on the market. Foreclosure inventories also remain elevated as a result of the “robo-signing” controversy which has halted or slowed down the foreclosure process in some states. This has resulted in prolonging the time it takes to absorb these properties, which inevitably will continue delaying the recovery of the housing market.

Mortgage rates are expected to move up slightly from their current levels to about 4.8 percent by the end of the year.

Single-family housing starts are expected to decline about seven percent from last year, while new home sales are expected to remain flat. Existing home sales are expected to rise about four percent from 2010 levels with the multi-family market expected to remain at elevated levels. Multi-family housing starts are expected to be 30 percent higher than 2010.

Mortgage originations are projected to decline to $1.07 trillion in 2011 from an estimated $1.51 trillion in 2010. Refinance activity is expected to account for about 54 percent of that share.

Tags: Fannie Mae, July Housing Report, housing recovery, positive signs, existing home sales, housing starts, new home sales, multi-family housing

Source:
Fannie Mae

Home Prices Increase in June, Plateau Expected in 4Q

July 25, 2011 (Brian Michael)

Home prices and inventory increased in June according to Altos Research, with leading market indicators showing a positive trend through at least the end of September and the possibility that prices may plateau in the fourth quarter of 2011.

List prices from homes in the 26 cities surveyed by Altos reported a modest increase in list prices of 1.37 percent in June over May and an increase in inventory of 0.35 percent.

Over the three month period from April to June, listing prices have increased 2.31 percent and inventory has increased by 3.52 percent.

The national index reports that the median price for a home was $450,358 in June, up from $444,273 in May. The biggest gainers in price were Detroit (2.78%), San Francisco (2.34%), and Washington D.C. (2.28%).

Altos Research’s weekly sample (7 day) for June shows a slight flattening of home prices which may indicate the end of the seasonal spike in prices and could be the first indication of the coming autumn housing market.

The only city to report a month-over-month price decrease was Las Vegas, which recorded a decline of 0.86 percent from May to June. Over the three month period from April to June, only Las Vegas (-1.61%) and New York (-2.20%) reported price declines.

Housing supply increased in 12 of the 26 markets with the largest increase in housing inventory reported in Boston (5.60%), Minneapolis (3.03%), and San Diego (2.25%), while the largest decline in housing inventory occurred in Phoenix (-7.93%), San Francisco (-5.01%), and Atlanta (-4.55%).

Tags: Altos Research, housing prices, housing inventory, median price, positive trend, seasonal spike, 26 markets

Source:
Altos Research

FHFA House Price Index Shows Slight Increase in May

July 22, 2011 (Shirley Allen)

Home prices increased 0.4 percent from April to May but were still 6.3 percent below year ago levels according to the Federal Housing Finance Agency’s monthly House Price Index (HPI). This was the second consecutive month that the HPI has shown an increase.

Consumer Default Rates Decline in June

July 22, 2011 (Brian Michael)

Consumers continued to exhibit financial fortitude in spite of high unemployment and fuel prices as default rates continued to decline across the major consumer credit categories according to the latest S&P/Experian Consumer Credit Default Indices.

Radar Logic Predicts Housing Price Decline in Fall

July 21, 2011 (Chris Moore)

Radar Logic’s RPX Composite Price Index (CPI) for May declined 5.9 percent compared to May of 2010, continuing a pattern of year-over-year price declines that has accelerated since June of 2010 and was the fastest rate of decline in home prices since September 2009.

Mortgage Rates Virtually Unchanged From Last Week

July 21, 2011 (Shirley Allen)

Uninspiring economic data and continuing low Treasury yields left mortgage rates virtually unchanged from the previous week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS).

Existing Home Sales Get Cancelled

July 21, 2011 (Chris Moore)

Two days ago we cheered the good news sparked by the strong showing in housing starts and yesterday it was anything from crickets to gasps when the National Association of Realtors (NAR) released its June Existing Home Sales report.

Strong Refinance Activity Pushes Up Mortgage Applications

July 21, 2011 (Chris Moore)

The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending July 15, 2011. The Market Composite Index, a measure of mortgage loan application volume increased 15.5 percent in response to a 23 percent surge in refinance activity following four straight weeks of declines.

Mortgage Interest Rates Show Little Movement from Last Week

July 20, 2011 (Shirley Allen)

According to the data collected on July 19, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.77 percent (4.94% APR) for 30-year fixed mortgages, which is same rate as reported the previous week, 4.00 percent (4.25% APR) for 15-year fixed mortgages, which is down from 4.03 percent reported the previous week, and 3.56 percent (3.67% APR) for 5/1 adjustable rate mortgages (ARM), which was up from 3.51 percent reported last week.

Mortgage Delinquency Rates Climb in June

July 20, 2011 (Shirley Allen)

Mortgage delinquency rates jumped up 2.4 percent from May to June and foreclosure inventories inched up slightly 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.

Confidence in Home Values Rising Reaches an All-Time Low

July 20, 2011 (Brian Michael)

American’s confidence in seeing the value of their homes going up in the next year fell to the lowest level ever as just 11 percent now believe that their homes will increase in value over the next 12 months according to the latest Rasmussen Reports poll.

California Defaults at a Four Year Low

July 20, 2011 (Shirley Allen)

California housing defaults fell dramatically to a four year low in the second quarter of 2011 and is now less than half the record amount recorded just over two years ago according to real estate information provider DataQuick.

Fewer Homes For Sale in June

July 20, 2011 (Chris Moore)

The number of homes for sale in June decreased slightly from May, but was almost 16 percent less than the number of homes for sale a year ago, and the prices sellers asked for those homes remained relatively flat according to data released by Realtor.com

Housing Starts Get a Big Boost in June

July 19, 2011 (Chris Moore)

New residential housing starts made solid gains in June as both single-family and multi-family dwellings experienced large boosts, but housing completions remain far below the rates experienced a year ago, according to the latest data released by the Census Bureau.

Freddie Mac Delinquency Rate Low, May Still Lose Top Credit Rating

July 19, 2011 (Chris Moore)

Freddie Mac continues to maintain a serious delinquency rate of less than half that of the mortgage lending industry, but could still lose its top credit rating if lawmakers fail to raise the debt ceiling to avoid default.

Builder Confidence Up in July but Still at Historic Lows

July 19, 2011 (Brian Michael)

Confidence among the nation’s new single-family home builders increased two points to a reading of 15 according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for July, partially making up for the three point dip recorded in June's survey. The HMI has been holding steady within the same three point range nine out of the last ten months.

HUD Provides $46 Million to Help Homeless Vets

July 18, 2011 (Shirley Allen)

The Department of Housing and Urban Development (HUD) and the Department of Veterans Affairs (VA) announced that they are teaming up to provide $46.2 million to public housing agencies to supply permanent housing and case management for 6,790 homeless American veterans.

RE/MAX: Improved Home Sales and Prices Following Seasonal Trends

July 18, 2011 (Brian Moore)

Home sales and home prices continued their more normal seasonal trends as home prices edged up for the fourth month in a row by 4.5 percent in June and closed transactions increased by 7.4 percent compared to May according to RE/MAX’s National Housing Report (NHR).

Bay Area Home Sales and Prices Post Solid Gains in June

July 18, 2011 (Brian Michael)

Bay Area home sales and prices posted solid gains in June compared to May and were at their highest levels since June of last year according to data collected by real estate information provider DataQuick.

Bay Area Home Sales and Prices Post Solid Gains in June

July 18, 2011 (Brian Michael)

Bay Area home sales and prices posted solid gains in June compared to May and were at their highest levels since June of last year according to data collected by real estate information provider DataQuick.

Housing Disaster Relief Available to Counties in Ohio and Pennsylvania

July 18, 2011 (Shirley Allen)

The Department of Housing and Urban Development (HUD) has announced they will speed disaster relief assistance to areas of Ohio and Pennsylvania, providing support to homeowners and low-income renters who have been forced from their homes following severe storms and flooding in April and May.

Mortgage Interest Rates Climb Up After QE2

July 8, 2011 (Shirley Allen)

Both long and short-term mortgage rates increased last week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) as Treasury yields ended the week higher following the end of the Federal Reserve’s monetary easing policies.

Fixed Rate Mortgages (FRM):

Thirty year and the 15 year FRMs increased from the previous week with the 30 year FRM averaging 4.60 percent with an average of 0.7 points, up from 4.51 percent reported the previous week. The 30 year FRM averaged 4.58 percent a year earlier.

The 15 year FRM increased to 3.75 percent this week with an average 0.7 points, from 3.69 percent reported the previous week, and down from 4.07 percent a year ago.

Adjustable Rate Mortgages (ARM):

ARM interest rates also increased in the last week as the 5-year Treasury-indexed hybrid ARM averaged 3.30 percent, with an average of 0.6 points, which is up from 3.22 percent the previous week. The 5 year ARM averaged 3.75 percent a year earlier.

The 1-year Treasury-indexed ARM averaged 3.01 percent this week with an average of 0.6 points, up from 2.97 percent the previous week. A year ago, the 1 year ARM averaged 3.75 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, "Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards. For instance, interest rates on all mortgages outstanding in the first quarter of this year averaged just under 6 percent. With today's rates, these homeowners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year fixed mortgage."

30-Year Fixed Rate Mortgages	US	NE	SE	NC	SW	W
Average	4.60	4.62	4.62	4.64	4.65	4.53
Fees & Points	0.7	0.7	0.9	0.6	0.6	0.8

15-Year Fixed Rate Mortgages	US	NE	SE	NC	SW	W
Average	3.75	3.76	3.76	3.77	3.81	3.69
Fees & Points	0.7	0.6	0.8	0.5	0.6	0.7

5/1-Year Adjustable Rate Mortgages	US	NE	SE	NC	SW	W
Average	3.30	3.41	3.19	3.42	3.33	3.16
Fees & Points	0.6	0.6	0.8	0.4	0.6	0.6
Margin	2.74	2.75	2.75	2.72	2.76	2.74

1-Year Adjustable Rate Mortgages	US	NE	SE	NC	SW	W
Average	3.01	3.26	2.83	3.18	2.94	2.78
Fees & Points	0.6	0.6	0.5	0.4	0.8	0.5
Margin	2.76	2.80	2.75	2.73	2.77	2.75

The National Mortgage Rate Snapshot	One Year Ago				One Week Ago
	30-YR	15-YR	5/1-YR	1-YR ARM	30-YR	15-YR	5/1-YR	1-YR ARM
Average	4.57	4.07	3.75	3.75	4.51	3.69	3.22	2.97
Fees & Points	0.7	0.7	0.7	0.7	0.7	0.7	0.6	0.6
Margin	N/A	N/A	2.74	2.77	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

Unemployed Get a Break on FHA Loans

July 8, 2011 (Shirley Allen)

Recognizing that the current economic hardships have made current forbearance programs inadequate, the Obama Administration announced adjustments to the Federal Housing Administration's (FHA) Special Forbearance Program that will require mortgage servicers to extend the forbearance for FHA borrowers who qualify from four to 12 months.

In addition, all mortgage servicers participating in the Making Home Affordable Program's (MHA) Unemployment Program (UP) will be required to extend the minimum forbearance program from three to 12 months for all eligible unemployed homeowners, whenever possible, subject to investor and regulator guidance for each mortgage loan. Forbearance under UP will also now be available to borrowers who are seriously delinquent.

"The current unemployment forbearance programs have mandatory periods that are inadequate for the majority of unemployed borrowers," U.S. Housing and Urban Development Secretary Shaun Donovan said. "Today, 60 percent of the unemployed have been out of work for more than three months and 45 percent have been out of work for more than six. Providing the option for a year of forbearance will give struggling homeowners a substantially greater chance of finding employment before they lose their home."

The FHA also reemphasized its requirement that servicers conduct a review at the end of the forbearance period to evaluate the borrower for all additional, applicable foreclosure assistance programs and notify the borrower in writing whether or not he/she qualifies for any other available option.

If the borrower does not qualify for any foreclosure assistance option, the servicer must provide the borrower with the reason for denial and allow the borrower at least seven calendar days to submit additional information that may impact the servicer’s evaluation.

The new forbearance guidelines become effective on August 1st, 2011, and expire two years from the effective date. Servicers will have 60 days from August 1st to implement the new guidelines.

Tags: HUD, unemployed, forbearance, FHA, mortgage servicers, Special Forbearance Program, Unemployment Program, seriously delinquent

Source:
HUD

Clear Capital Says Housing Prices Expected to Drop

July 8, 2011 (Brian Michael)

Clear Capital expects home prices to drop another 2.4 percent in the second half of 2011, despite a 0.9 percent price increase in the second quarter, as a lack of consumer demand needed to produce sustained price increases has yet to materialize. Clear Capital also says prices have begun to level off and are no longer exhibiting the same volatility that had been experienced since the beginning of the housing downturn.

“At the mid-point of the year, it’s promising to see the overall market shake off the string of declines observed since late last year, especially in light of significant challenges for the industry,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital. “However, we have yet to see the burst in consumer demand to avoid posting a net loss in national prices for the year.
Overall home prices for the first half of 2011 have dropped 3.2 percent as the first quarter price drop of 4.1 percent overshadowed the second quarter’s price gains. The Midwest was hit particularly hard with Detroit experiencing a price decrease of nearly 20 percent in the first half of 2011.

The Real Estate Owned (REO) saturation rate declined to 31.4 percent at the end of the second quarter compared to 33.1 percent at the end of the first quarter.

The four major regions, the West, Midwest, Northeast, and South, are all expected to remain in negative territory for the second half of the year with home prices in some metropolitan areas expected to show more stability.

Ten of the highest performing metropolitan areas in the first half of 2011 are forecasted to improve their performance with Washington D.C, New York, Orlando, Dallas, and San Francisco likely to turn modest gains.

California, which has been one of the hardest hit states in the housing downturn, shows potential for improvement with the second half forecast expecting a decline of less than two percent.

Metropolitan areas expected to show worsening market conditions are Virginia Beach, Cleveland, Minneapolis, Chicago, and Fresno, CA.

Clear Capital says that although price movements in the first half of the year were largely negative, the moderation of the projected price changes generally reflects a flattening market.

Tags: Clear Capital, housing prices, price declines, flattening market, stabilize, REO, saturation rate, consumer demand, metropolitan areas

Source:
Clear Capital

Mortgage Interest Rates Jump Up Over the Past Week

July 7, 2011 (Shirley Allen)

According to the data collected on July 5, 2011, for LendingTree’s Weekly Mortgage Rate Pulse, average home loan rates offered by network lenders was 4.83 percent (5.03% APR) for 30-year fixed mortgages, which is up from 4.69 percent reported the previous week, 4.01 percent (4.32% APR) for 15-year fixed mortgages, which is up from 3.93 percent reported the previous week, and 3.59 percent (3.69% APR) for 5/1 adjustable rate mortgages (ARM), which was up from 3.39 percent reported last week.

The lowest mortgage rates offered on the same day by lenders on the LendingTree network were 4.25 percent (4.39% APR) for a 30-year fixed mortgage, which is the same as the lowest rate offered last week, 3.375 percent (3.61% APR) for a 15-year fixed mortgage, which is the same as the lowest rate offered last week, and 2.75 percent (3.04% APR) for a 5/1 ARM, which is also the same as the lowest rate offered the week before.

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 7/6/11 *Updated Quarterly
STATE	LOWEST MORTGAGE RATE	LOAN-TO-VALUE RATIO*	NEGATIVE EQUITY*
US Average	4.25% (4.39% 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	4.25% (4.37% APR)	94.6%	39.4%
Arkansas	4.25% (4.37% APR)	72.6%	43.9%
California	4.25% (4.38% APR)	70.6%	34.8%
Colorado	4.25% (4.42% 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% (4.39% APR)	90.8%	41.1%
Georgia	4.25% (4.39% 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	4.25% (4.37% APR)	72.4%	31.7%
Indiana	4.25% (4.38% 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	4.25% (4.37% APR)	58.6%	30.1%
Maryland	4.25% (4.39% APR)	70.4%	25.6%
Massachusetts	4.25% (4.37% APR)	60.7%	46.0%
Michigan	4.38% (4.52% 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% (4.39% 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	4.25% (4.36% APR)	50.1%	42.1%
North Carolina	4.25% (4.39% 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% (4.37% APR)	62.5%	75.7%
Rhode Island	4.63% (4.82% APR)	62.6%	36.6%
South Carolina	4.25% (4.39% APR)	71.0%	29.0%
South Dakota	4.25% (4.37% APR)	N/A	N/A
Tennessee	4.25% (4.39% APR)	71.2%	30.7%
Texas	4.25% (4.38% APR)	68.8%	30.6%
Utah	4.25% (4.49% APR)	73.7%	22.2%
Vermont	4.63% (4.82% APR)	N/A	N/A
Virginia	4.25% (4.39% APR)	71.7%	25.0%
Washington	4.25% (4.40% 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	4.25% (4.36% APR)	64.2%	23.0%

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

Refinance Applications Plummet as Interest Rates Jump Up

July 6, 2011 (Chris Moore)

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 1, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 5.2 percent as refinance activity plummeted due to rising interest rates.

On an unadjusted basis, the Index decreased 5.1 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 0.5 percent.

The seasonally adjusted Purchase Index increased 4.8 percent from one week earlier. The four week moving average is up 0.8 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index increased 4.4 percent compared with the previous week, and is 11.7 percent higher than the same week one year ago.

“Stronger economic data towards the end of the week coupled with the end of the Fed’s second round of quantitative easing helped bring mortgage rates to their highest level in over a month,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Refinance activity, already constrained by a smaller pool of eligible borrowers, declined in response to the higher rates, but purchase applications picked up appreciably in the week before the July 4th holiday.”

The Refinance Index decreased 9.2 percent from the previous week. The four week moving average is down 1.1 percent.

The refinance share of mortgage activity decreased to 66.4 percent of total applications from 69.5 percent last week.

The adjustable-rate mortgage (ARM) share of activity increased to 6.1 percent from 5.8 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.69 percent from 4.46 percent last week, with points decreasing to 0.90 from 1.19 (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 3.79 percent from 3.64 percent last week, with points decreasing to 0.88 from 1.11 (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

Consumer Confidence Index Falls to New 2011 Low

July 6, 2011 (Brian Michael)

The Rasmussen Consumer Index fell to a new low in 2011 of 69.8, down 16 points from a month ago and down nine points from three months ago. Only 21 percent of those polled now believe the economy is getting better while 58 percent believe it’s getting worse.

Households also had a negative view of their personal finances with only 18 percent of those polled saying their personal finances are getting better while 56 percent reported their finances are getting worse.

Rasmussen uses a baseline of 100.0 established in October 2001. Readings above 100.0 indicate that confidence is higher than the baseline month.

Concern about the economy was also expressed in Rasmussen’s poll of likely voters who were asked if they felt the country was heading in the right direction. Only 24 percent of the likely voters believed that the country was headed in the right direction, while 68 percent of the voters believed the country was headed in the wrong direction.

Since January 2009, doubt about the direction that the country was headed in ranged from 57 percent to 72 percent.

And Americans overall view of the economy wasn’t much better as only 8 percent rated the economy as good or excellent while 61 percent sat it’s in poor shape.

Despite the gloom, 47 percent of American adults still feel that buying a home is the best investment a family can make. Although this was the lowest level ever recorded, it was still higher than the 32 percent who felt that purchasing a home was not a good investment choice. Twenty-two percent were not sure.

But when it came to selling a home, only 11 percent of all adults said it was a good time to sell a home. Seventy-two percent of the adults said it was not a good time to sell a home and 16 percent were not sure.

Tags: Rasmussen Reports, polls, surveys, consumer confidence, personal finances, economy, buying a home

Resource:
Rasmussen Reports

Bank of America Donating Vacant Properties to Help Fight Blight

July 6, 2011 (Chris Moore)

Bank of America has announced that it is donating up to 100 vacant foreclosed properties to the Cuyahoga County Land Reutilization Corporation (Cuyahoga Land Bank) for reuse, redevelopment and neighborhood revitalization, reducing urban blight.

Foreclosed properties in the Cleveland area, that have been abandoned and are uninhabitable, and are identified as low-value by Bank of America, will be donated to the Cuyahoga Land Bank for future development or for other productive uses.

Bank of America will contribute towards the cost of demolishing or deconstructing any deteriorating buildings. Similar plans have been previously announced in Detroit and Chicago as Bank of America addresses the problems caused by a growing inventory of abandoned and uninhabitable properties.

"Unfortunately, many homeowners faced with unemployment, underemployment and other economic hardships have transitioned to alternative housing situations, and in many cases have walked away from their homes, leaving behind vacant and deteriorating properties that can cause neighborhood blight," said Rebecca Mairone, national mortgage outreach executive for Bank of America Home Loans.

Gus Frangos, president and general counsel for the Cuyahoga Land Bank viewed the partnership with Bank of America as having a positive impact on the community by eliminating blight and allowing Cuyahoga County the opportunity to put returned properties to productive use.

Tags: Bank of America, Cuyahoga Land Bank, vacant foreclosed properties, reuse, redevelopment, neighborhood revitalization, abandoned, uninhabitable

Source:
Bank of America