Posts Tagged ‘low mortgage’

Fannie and Freddie Repaying Taxpayers

August 9th, 2013 Comments off

Taxpayers may yet see a profit from the $187 billion bailout by the federal government of Fannie Mae and Freddie Mac in 2008. To date, Fannie Mae has seen $105 billion of the $116 billion it borrowed from Treasury repaid, including $10 billion from the most recent quarter. Of the $71 billion Freddie Mac received, as of Wednesday it has repaid $41 billion, and expects to earn $29 billion later this year. During the housing bubble years the two firms had become the main source of funding for home loans, and hardly anyone expected a payback, according to CNNMoney. The housing market improvement during the past year is the main reason for their return to profitability. As MHProNews has learned, the record low mortgage rates spurred refinancings, increasing the pairs’ fees.

(Photo credit: Jonathan Ernst/Yahoo!Reuters–Fannie Mae headquarters)

Iowa Climbing Back from Low Manufactured Home Sales

August 5th, 2013 Comments off

While the manufactured housing industry continues to recover, it still has a long way to go, according to Troy Hames of Hames Homes in Marion, Iowa. Noting the company has sold manufactured homes for 44 years in east central Iowa, Hames says new home sales in the state were 2,200 in 1996 but only 220 in 2012 and are expected to rise to 280 this year. The company also owns five manufactured home communities with a 90 percent occupancy rate, about 1,200 families, but 80 percent of sales are for previously-owned homes, thegazette informs MHProNews. Joe Kelly, executive vice president of the Iowa Manufactured Housing Association (IMHA), states financing has always been tough for manufactured home buyers, but the economic downturn combined with consumers taking advantage of low mortgage rates to buy site-built homes has made matters worse. Kelly says while there is pending legislation in Congress to ease lending for manufactured homes, he does not expect matters to change anytime soon.

(Photo credit: Adam Wesley/thegazette–Troy Hames entering a manufactured home)

Housing Market Continues to Heat Up

June 20th, 2013 Comments off

Noting the median home price jumped eight percent from April to May to $208,000, and sales of homes rose four percent for the same period, chief economist Lawrence Yun of the National Association of Realtors (NAR) says, “The home price growth is too fast, and only additional supply from new home building can moderate future price growth.” He says there needs to be a 50 percent increase in home building to stave off another potential housing bubble. Distressed sales have dropped from 25 percent of overall sales one year ago to 18 percent, which accounts for some of the rise in rices. Sales are up 13 percent from one year ago to an average annual rate of 5.18 million homes for the month. As CNNMoney informs MHProNews, the low mortgage rates and improved housing market are attracting buyers faster than sellers are putting homes on the market. Buyer traffic has increased 29 percent from a year ago, but the inventory of homes for sale has fallen ten percent.

(Image credit: HousingWire –housing prices rising)

Housing Market not Strong, but Stable

October 3rd, 2012 Comments off

Encouraged by a variety of signs, fourteen economists surveyed by CNNMoney believe the housing market has finally turned the corner on its way back to health. Only three months ago half of those surveyed did not believe the turnaround would come until next year, or later. The economists cite three consecutive months of increases in the Case-Shiller home price index, gains in sales of existing homes and home construction, a rise in the price of new home sales and continuing record low mortgage rates. “We’re seeing the signs of a pulse in a sector that has been flat-lined for a number of years,” said Sean Snaith, economics professor at the University of Central Florida. Housing was a drain on the nation’s gross domestic product through early 2011, but beginning in Q4 2011, housing has been adding to growth. While lacking the robustness it exhibited pre-downturn, MHProNews has learned the housing market is at least providing some stability to the economy.

(Image credit: mortgageorb)

Refis Jump Through HARP

August 8th, 2012 Comments off

Thirty-three percent of mortgages refinanced through Fannie Mae and Freddie Mac were closed through the Home Affordable Refinance Program (HARP), the most since the program began in March 2009. For the first six months of this year, Fannie Mae and Freddie Mac processed 422,969 loans through HARP, more than the total of 400,024 for all of 2011. According to the Federal Housing Finance Agency (FHFA), record-low mortgage rates, removal of the loan-to-value (LTV) ceiling for borrowers who refinance into FRMs (fixed rate mortgages), and reduced fees for some borrowers stimulated the increase in HARP volume. As HousingWire tells MHProNews, 1.4 million mortgages have been refinanced through HARP since it began.

(Image credit: Realtor)

Pending Home Resales Fall

May 30th, 2012 Comments off

Bloomberg reports the National Association of Realtors (NAR) says the index of pending sales of previously-owned homes fell 5.5% in April, the highest rate in a year, on the heels of a 3.8 % gain in March 2012. Record low mortgage rates have failed to sustain the pace of demand as tight credit and nagging foreclosures continue to weigh down a full housing recovery. Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, says, “The pattern of demand is sluggish and volatile. Until the supply issue is resolved, we could see further declines in prices and the housing market will continue to hover around the bottom. It’ll be a gradual improvement, we don’t expect anything stronger than that.” Meanwhile, a positive sign, as reported earlier, is that new home sales rose 3.3 percent in April.

(Photo credit: WenatcheeWorld/Mike Irwin)