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Posts Tagged ‘NationalMortgageNews’

Housing Analyst: Balance Coming to Housing Market

December 2nd, 2013 Comments off

According to Bank of the West Chief Economist Scott Anderson, many potential home sellers have been watching prices increase on homes, waiting for the right time to sell. He says, “If they see that softening in home prices, I think you will see more potential sellers jump into the market. That would make for a more balanced market.” Anderson predicts the S&P Case Shiller home price index will rise only 2.8 percent in 2014 as compared to 13 percent this year. Noting the bargains are gone in the foreclosure market, as nationalmortgagenews informs MHProNews, he says investors will not be bidding up prices as before, but that the housing recovery still has momentum.

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Consumer Debt Rises; Foreclosures, Delinquencies Fall

November 15th, 2013 Comments off

Due to rising balances on mortgages, student loans and auto loans, total indebtedness increased by $127 billion, 1.1 percent, over the previous quarter, according to the New York Federal Reserve. A slowdown in foreclosures—the lowest level since the end of 2005—helped offset a drop in mortgage originations, as did a decline in balances on home equity lines of credit. Mortgage debt increased by $56 billion during the third quarter, student loan balances rose by $33 billion over Q3, as nationalmortgagenews reports, and credit card debt increased $4 billion. MHProNews has learned of all the household debt outstanding, 5.3 percent was 90 days or more delinquent in the third quarter, 2013, the lowest rate in five years.

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Thirty-year FRM rises to 4.44 Percent

November 13th, 2013 Comments off

According to Zillow Mortgage Marketplace, the 30-year fixed rate mortgage (FRM) rose 17 basis points in the week ending Nov. 12 to 4.44 percent. The rate moved up due to the government’s strong jobs numbers and better-than-expected growth in the gross domestic product (GDP). The Mortgage Bankers Association (MBA) reports refinance applications fell two percent on the week and purchase applications dropped one percent on a seasonally adjusted basis. For the same week one year ago, purchase apps were down six percent on an unadjusted basis. As nationalmortgagenews informs MHProNews, refis comprised 66 percent of the loan applications during the week. Federal Housing Administration (FHA) insured loans increased nine points to an average contract rate for the week of 4.16 percent. For the 30-year conforming FRM the average contract rate was 4.44 percent, up 12 basis points from the prior week.

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FHA’s Carol Galante: Stable Housing Finance Awaits

October 29th, 2013 Comments off

The members of a panel at the Mortgage Bankers Association (MBA) annual convention say the 30-year fixed rate mortgage (FRM) is so ingrained in the system that removing it would have unintended consequences. William McCue of McCue Mortage says nearly all of his loans are for Federal Housing Administration (FHA)-insured loans, like an enveloping institution that gives consumers comfort, as nationalmortgagenews tells MHProNews. Adding there may be multiple ideas good for the market, he says the mentality of policy makers needs to change after acknowledging the housing industry caused the second worst financial crisis in the nation’s history. FHA Commissioner Carol Galante says there is the opportunity to create a stable housing finance system in the coming year.

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Pending Home Sales Fall in Oct.

October 28th, 2013 Comments off

According to nationalmortgagenews, the National Association of Realtors pending sales index (PSI) dropped more than expected in September, minus six percent, following a two percent drop in August, 2013. The PSI tracks sales contract signings, and is now 1.2 percent below the level of signings last Sept. NAR Chief Economist Lawrence Yun says the drop is due to higher mortgage rates, rising house prices and the uncertainty generated by the 16 days of deadlock in Washington. As MHProNews reported Oct. 25, consumer sentiment has been dropping as well. Regionally, the South saw a drop of half a percentage point month-over-month, while the PSI in the other three regions fell eight to ten percent. The index is based on the number of contracts signed, although not all contracts become actual sales.

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DeMarco will Increase Private Sector Participation

October 25th, 2013 Comments off

Federal Housing Finance Agency (FHFA) Director Edward DeMarco says he plans to reduce the government service enterprise (GSEs) loan limits which will increase private sector participation in the mortgage market, according to nationalmortgagenews. He also intends to gradually increase the guarantee fees that Fannie Mae and Freddie Mac charge lenders. MHProNews has learned DeMarco says its part of his responsibilities to reduce the dominance of the GSEs in the mortgage market, while some members of Congress question whether the FHFA has the authority to reduce loan limits without Congressional approval.

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Foreclosure Inventory and Delinquencies Fall

October 23rd, 2013 Comments off

The national foreclosure inventory continues to fall, decreasing 32 percent since Sept 2012, according to what Lender Processing Services (LPS) tells nationalmortgagenews, with 1.3 million housing units in the foreclosure pre-sale inventory. LPS’ loan-level database covers approximately 70 percent of the market total, MHProNews has learned. While delinquencies have fallen 12.6 percent since last Sept., over 3.2 million loans are delinquent, although not in foreclosure. While the nation’s delinquency rate gained four percent from August to Sept., the delinquency rate for loans 30 or more days past due is 6.5 percent. States with the highest percentage of delinquent loans include Mississippi, Florida, New Jersey, New York and Maine. Those with the lowest are Wyoming, Montana, Alaska and North and South Dakota.

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Sales and Home Prices Slide in Sept.

October 22nd, 2013 Comments off

Home prices and sales dropped in September, according to what the National Association of Realtors (NAR) tells nationalmortgagenews. As mortgage rates hovered around 4.5 percent and inventories remained low, sales of existing single-family homes dropped to a seasonally adjusted annual rate (SAAR) of 5.3 million, down from 5.4 million in August. Although sales have increased 11 percent from a year ago and have remained above the SAAR of five million the past five months, NAR Chief Economist Lawrence Yun does not expect them to improve in the coming months, noting the government shutdown has delayed loan processing. Stephanie Karol and Patrick Newport, IHS Global Insight economists, say, “The government shutdown has had a negative impact on consumers’ sentiment and contributed to an atmosphere of uncertainty, both of which make Americans less comfortable with making such a large purchase.” As MHProNews has learned, the median price of an existing home fell five percent from the prior month to $199,200 in Sept.

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Homeownership Falls, Rentals Rise

October 4th, 2013 Comments off

Economists at Wells Fargo Securities indicate that 857,420 new households were formed in the U. S. during 2012, but the number of homeowners dropped by 237,750, the fifth straight year that figure has dropped, while the number of renters increased by 1.1 million. In 2012 single-family homes accounted for 28.5 percent of renter-occupied homes, a larger share of housing than any other type. In addition, according to nationalmortgagenews, homeownership among households aged 25-34 has dropped by 8.5 percent since 2007, including a two percent drop in 2012. MHProNews has learned the Fannie Mae Housing Insight Report concludes, “The findings related to homeownership rates and single-family rentals are important because they reveal the durability of the demand shift from owning to renting that emerged from the housing crisis and Great Recession.”

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Home Prices Rise expected to Slow

October 2nd, 2013 Comments off

CoreLogic reports house prices rose +0.9 percent in August, which was half of the July pace. Attributing the slowdown to seasonality and the recent rise in mortgage rates, CEO Anand Nallathambi says, “We anticipate moderate gains in home prices over the balance of this year, supported by the recent downward trend in rates and continued tight supplies of homes in many markets.” The property information vendor anticipates home prices will increase 0.2 percent from Aug. to Sept. As nationalmortgagenews informs MHProNews, home prices are up 12.4 percent from Aug. 2012.

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