By Dusty Henry
This week saw many promising signs for the housing industry including, but not limited to: near record low mortgage rates, signs of a steady rise in home prices, and a decline in foreclosures sales. While these all may appear small, they are just steps toward a healthy housing market. We’re interested to see how this data takes off in the coming weeks and see if the predictions analysts are making for a positive outcome will be fulfilled. Check out more details for yourself below.
In a reporting by Housing Wire based on analytics from Clear Capital, foreclosures sales went down by 26% in August. The made for only 20% of home sales foreclosed homes. Clear capitol says this is the lowest rate of home sales being foreclosed homes since April of 2008. There is speculation that this is tied to new legislation which slows the foreclosure process.
In order to maintain compliance with the $25 billion National Mortgage Settlement, which requires the five major banks to offer $17 million worth of homeowner relief; banks are opting to offer short sales to homeowners as their “go-to” service. Between the settlements inception in February 2012 and June 2012, banks have already given borrowers $10.56 million in the form of short sales.
Mortgages rates fell to 3.7% this week, according to HSH.com. This is a .3% drop from the previous week. Their report says that this is the second consecutive week mortgage rates have gone down based off of their mortgage tracking data. While this is not quite a record low, HSH vice president Keith Gumbinger says it’s getting closer.
Fannie Mae and Freddie Mac are set to increase their guarantee fees charged to lenders, as stipulated by their regulator. According to Bloomberg, the increase will be an average of .10%. The new rate will go in to effect on Nov. 1 for cash loans and Dec. 1 for loans exchanged or mortgage-backed securities.
CoreLogic has reported that home prices went up 3.8% in July, making it the largest price jump since August of 2006 – six years ago. In response to the data, CoreLogic Chief Executive said that the data implies the real estate market is clearly seeing the light at the end of the tunnel,as Tiffany Hsu writes. CoreLogic data also says that this is the fifth straight rise in home prices.