Category: Housing Headlines
The housing market continues to make steady strides to a healthier state and is doing so from every angle. Whether it is mortgages or getting rid of pesky shadow inventory, the data coming in is looking promising. Here are a few of the big stories this week to give a bit further insight.
Even with rising home prices, real estate investors are still planning on buying just as many properties in the coming year, according to a Bigger Pockets survey. This is even, as Realtor.com points out, amidst the lowering number of foreclosures. The survey revealed 39% of investors hoping to increase their property purchases, with another 26% planning on purchases just as many as they have in past years.
Housing Wire cites JPMorgan Chase who has claimed trimming 1.2 million mortgages and foreclosures in shadow inventory between January and June of 2012. Housing Wire suspects this number may double by the end of the year ? missing the 2010 peak of 6 million trimmed. This, Housing Wire also anticipates, is a reaction to the raise in short sales after the $25 billion foreclosure settlement with the five largest mortgage services.
Refinancing has gone up by 3%, making it the highest level in the past 6 weeks ? according to Calculated Risk. Likewise, mortgages have decreased by 3.63% in the history of the MBA history of their survey.
With election fever running rampant throughout the country, there is bound to be debates and disputes. One argument that doesn?t need to be made is the subject that needs no argument ? at least in California. Zillow details out legislation which allows tenants in rentals to display their signage and political ideals as long as they stay within certain guidelines. Check out the link above for more details.
While some may have been hoping for lower standards in mortgage applications, HSH points out that this is unlikely to happen. Even with mortgage rates at lows and the housing market picking up, standards will probably stay the same. This is in part to act as a failsafe in case the market turns for the worse, and also in order to keep mortgages regulated properly. Standards also need to be in compliance with FHA credit standards. So even with an improving market, bad credit is still likely to hold back some potential owners.
By Dusty Henry
This week’s housing headlines range from urgent issues to, less urgent but equally baffling, “Kardashian issues.” As usual there is so much to cover and so much to keep track of, but here are a few of the weeks highlights. Spoiler alert: mortgages are still having their praise worthy day in the sun.
In a recent Realty Times report, Broderick Perkins explores the spike in affordable, low income housing (up 20% from 2007) and its direct correlation to the rise in homelessness. Perkins also attributes this to a lack of raising federal housing vouchers and lack of project based housing developments.
Real estate searching website Trulia went public today and CBS reports the website say share prices jump up 30%. Shares opened at $22.10. CBS makes many’comparisons to Trulia’s public opening to Facebook’s, citing the modest introduction and lack of hype may benefit the real estate resource in contrast to the overwhelming expectations Facebook found itself faced with. Hopefully Trulia buys the rights to a potential Oscar-worthy movie about their rise before it’s too late (could be a great chance for Nicolas Cage to make his comeback).
In a report from the National Association of Homebuilders (NAHB), builder confidence is on the rise. For the fifth week in a row there has been a rise in confidence for newly built single family homes. Marcie Geffner reports that beside this, Barry Rutenberg (NAHB chairman) and David Crowe (NAHB chief economist) still have some concerns that could cause confidence to fall; these points mostly revolve on the cost to build, shortage of buildable lots, financing, etc.
Calculated Risk reports that not only mortgage rates are in decline (as we’ve mentioned in the past couple housing headline updates) but so are mortgage applications. Contract interest rate for 30 year mortgages have dropped down to a record low of 3.72 percent.
In harmony with the Calculated Risk article, HSH’s Tim Manni reports that along with the drop in rates that home prices and sales are also going up. This is another pleasant sign of a reviving market. HSH attributes this to an increase of volume and a lack of need for aggressive pricing to garner business.
Here’s a bit of light and face-palm-worthy news to end on. Reality TV stars Kim and Kourtney Kardashian, in a daring move of excess, are looking to purchase a $5.8 million waterfront Miami home for their three month jaunt filming a new reality show. Kim, Kourtney; if you’re looking to turn this into an investment property, we may know a few people. Hit us up.
By Dusty Henry
Last week saw mortgage rates getting close to record lows and this week delivered. But with all of this week’s great news comes harsh reminders of the importance of the Fair Housing Act, the weight of the housing crisis’ long term effects, and enforcing new legislation.
In a report from HSH, Peter Miller compares figures from the Federal Reserve to discover a massive fall in debt. In 2008 mortgage debt was at $11.075 trillion and now is at $10.178 trillion. HSH attributes this to home prices, mortgage rates, refinancing, and loan modifications. It will be interesting to see within the next year how the mortgage debt will flow.
In an effort to prevent companies like Fannie Mae and Freddie Mac from offering up loans in areas with underwater loans seized by eminent domain, Rep. John Campbell has presented federal legislation for a new bill to take action against this. The bill will keep companies like this from lending in these areas in hopes to focus on restoration. More updates to come as the bill makes it’s way through the legislative system.
A gay couple in Boston is suing the Roman Catholic Diocese of Worcester on allegations of discrimination, according to Curbed. James Fairbanks and Alain Beret, the couple, were hoping to purchase a former Catholic retreat to renovate but after Fairbanks and Beret lowered their offer (upon the results of a troublesome inspection) the diocesan chancellor refused to make the deal about the “potentiality of gay marriages” on the premises. This is a contemptuous issue that has yet to be resolved, but stresses the importance of compliance with the Fair Housing Act and the repercussions that can follow if you do not.
Housingwire reports on analytics from Interthinx that the total amount of loses of the housing crisis (including taxpayer bailouts, mortgage-backed securities litigation, and loses from lawsuits) totals to about $13 trillion dollars. Compare this to the nation’s U.S. Gross Domestic Product (GDP), which is $15 trillion, the number is staggering.
Again, this week mortgage rates dropped .3% to 3.4% – a record low for the past 15 years. This is another pleasant sign of things picking up in the housing market. Hopefully this rate will stay consistent within the next few weeks as well.