Thursday, February 27, 2014

Intrest Rate Update



Interest Rate Update



Conventional Loans to $417,000

30 Year Fixed 4.25% -0- Points

15 Year Fixed 3.375% -0- Points

Conventional Loans to $625,500

30 Year Fixed 4.5% -0- Points

15 Year Fixed 3.5% -0- Points

FHA/VA Loans to $417,000

30 Year Fixed 3.75% -0- Points

15 Year Fixed 3.375% -0- Points

FHA/VA Loans to $625,500

30 Year Fixed 3.875% -0- Points

15 Year Fixed 3.625% -0- Points


Thursday, February 20, 2014

Market Matters

our student loan is tanking the mortgage market
Source: HousingWire  

During 2013, the percentage of student loans classified as delinquent rose by 13 percent, which stands in sharp contrast to payment improvements for other credit types. Particularly troubling is the fact the government is backing much of this debt in a manner akin to its support of the housing market back in 2006 and 2007.
Read the full story
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Are High Housing Costs Killing the American Dream?
Source: Moyers & Company
 
Interstate migration in America has remained at a mere 1.7 percent, which is far lower than the 3.5 percent mobility rate the country experienced in the 1950s. Data suggests that Americans are no longer migrating from places with low wages to places with higher wages because the reverse is happening. Some experts contend the primary cause for this trend is that housing costs have significantly outstripped household incomes.
Read the full story
 
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Who will feel the credit squeeze in 2014?
Source: HousingWire
The availability of credit for mortgage borrowers has been a pressing question for the recovery of the housing market, and in 2014, whether credit is too tight or too loose will be a lingering question due to a variety of market conditions that will present challenges for buyers. Economists from CoreLogic have released their analysis in the January MarketPulse report, and they anticipate the overall size of the mortgage market to be smaller than in 2013.
Making sense of the story
  • Credit availability is particularly tight for low credit-score borrowers, those unable to fully document their loans, and those who would like an adjustable-rate mortgage (ARM) product.
  • According to the report, high-LTV (loan-to-value) lending remains modestly loose relative to normal, and high-DTI (debt-to-income) lending is modestly tight relative to normal.
  • Since many subprime ARM loan products are no longer available, the share of ARM loans originated is much more restricted than normal.
  • Simply put, the report notes that underwriting eligibility in the current market requires borrowers to possess good credit and the ability to document their loans fully.
  • Cash sales comprised 37.4 percent of total home sales in September 2013, which is a decrease from a high in January 2011 when cash sales made up 46.1 percent of total home sales.
  • According to CoreLogic, assessing the state of access to credit is difficult to determine because no single measure of credit availability exists.
Read the full story

Monday, February 17, 2014

Interest Rate Update



30 Year Fixed up to $417,000 4.125% to 4.50%
30 Year Fixed "Agency" up to $625,500 4.375% to 4.625%
30 Year Fixed FHA up to $417,000 3.75% to 4.25%
30 Year Fixed FHA "Jumbo" up to $729,500 3.875% to 4.25%



Interest Rate Update

Interest rates have eased down a tiny bit over the last few weeks. Some "experts" say rates could dip down again for a short period of time to keep the housing market moving.

Orange County Register

The Orange County Register is back singing the praises of real estate. In the Business Section of the January 15th paper is a front page article titled "Housing Marches Upward". In the arti-cle it states that the median priced home in Orange County has rebounded nicely and is now at $570,000. The article goes on to say the 2013 saw a 21.4 jump in appreciation. We are all well aware of the lack of inventory also. Positive articles like this will only help motivate buyers and sellers which is good news for all of us.

How Does This Affect You ?

I keep hearing that the next 7 to 10 years will be very good for real estate. Based on the historic cycles I would tend to agree. Rates are below normal and should remain fairly low for most of this year at least. So make sure to have some articles and information available for clients that show the medias continued positive tone towards buying a home. Some people I have spoken to seem to want to wait for prices to stabilize. That could be a mistake if prices keep going up and we all know that at some point interest rates will ease up also.

Monday, February 10, 2014

Market Matters

Aging Boomers to Boost Demand for Apartments, Condos and Townhouses
Source: Wall Street Journal  

Aging baby boomers could reshape the U.S. housing market if many move out of the houses where they raised families in order to move into cozier multifamily units, such as apartments, condominiums and townhouses. This could present a huge shift in the country’s housing demand.
Read the full story
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Watt delays fee increase for Fannie, Freddie
Source: The Hill
 
Rep. Mel Watt took the reins on Monday as regulator of mortgage giants Fannie Mae and Freddie Mac, and Watt stuck to his plan to delay an increase on fees charged by the government-sponsored enterprises. Watt has stated he is concerned about the impact of a fee increase on the availability of mortgage credit.
Read the full story
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 Mortgage credit loosens a bit 
Source: HousingWire
 
A new report from the Mortgage Bankers Association indicates that mortgage credit availability has improved slightly. The index rating rose 0.6 percent from 110.2 in November to 110.9 in December.
Read the full story
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The Decline in Geographic Mobility
Source: The Federal Reserve
During the past three decades, geographic mobility within the United States has declined steadily. A combination of factors is cited as the reason for the decline in a study from the Federal Reserve, including an aging population, rising homeownership rates, and a decrease in labor market transitions. These labor transitions are defined as a decline in the fraction of workers moving from job to job, changing industry, and changing occupation.  The study notes, “Declines in internal migration since the mid-2000s have attracted the attention of researchers and the public because they coincided with a dramatic housing market contraction and deep economic recession.”
Making sense of the story
  • Between 1984 and 1985, 20.2 percent or one out of every five Americans over the age of 1 year moved. In the most recent period, between 2012 and 2013, the mover rate was only 11.7 percent.
  • According to the Census Bureau, 23.2 percent of those 25 to 29 years moved between 2012 and 2013. After 30, the share declines with age and for those 65 years and older only 3.7 percent moved between 2012 and 2013.
  • As the population ages, measures of geographic mobility are unlikely to return to levels seen in the mid-1980s. After all, by 2030 it is predicted that there will be 72.1 million seniors.
  • Particularly important to the housing industry is the mobility of individuals between the ages of 25 to 29 years, as they represent future first-time homebuyers.
  • For the second straight period, the share of movers doing so to own rather than rent a home increased. Between 2012 and 2013, 5.2 percent of all movers in the younger age group did so to own rather than rent, whereas between 2011 and 2010, 4.4 percent did so to own rather than rent.
  • The most common reason for people in this younger age group to move between 2012 and 2013 was to establish their own household at roughly 14.2 percent.
Read the full story

Thursday, February 6, 2014

Newsline


Foreclosure Inventory Down From Year Ago

CoreLogic recently released its November National Foreclosure Report, which said there were 46,000 completed foreclosures nationwide in November 2013, down from 64,000 in November 2012, a year-over-year decrease of 29 percent. On a month-over-month basis, completed foreclosures decreased 8.3 percent, from 50,000 in October 2013.
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Completed foreclosures are an indication of the total number of homes actually lost to foreclosure. As a basis of comparison to the 46,000 completed foreclosures reported for November 2013, completed foreclosures averaged 21,000 per month nationwide between 2000 and 2006 before the decline in the housing market in 2007. Since the financial crisis began in September 2008, there have been approximately 4.7 million completed foreclosures across the country.
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    As of November 2013, approximately 812,000 homes in the United States were in some stage of foreclosure, known as the foreclosure inventory, compared to 1.2 million in November 2012, a year-over-year decrease of 34 percent. Month over month, the foreclosure inventory was down 4.6 percent from October 2013 to November 2013. The foreclosure inventory as of November 2013 represented 2.1 percent of all homes with a mortgage compared to 3 percent in November 2012.
    More info
      
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    MBA Lowers 2014 Mortgage Originations Forecast
    The Mortgage Bankers Association (MBA) lowered its forecast for mortgage originations in 2014 by $57 billion to $1.12 trillion for the year, based on declining mortgage application activity and increasing interest rates.
     
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    “Despite an economic outlook of steady growth and a recovering job market, mortgage applications have been decreasing – likely due to a combination of rising rates and regulatory implementation, specifically the new Qualified Mortgage Rule,” said Mike Fratantoni, chief economist for MBA.  “As a result, we have lowered our expectations for both purchase and refinance originations in the first half of 2014.  Purchase originations are now expected to be $677 billion for 2014, compared to $711 billion forecast previously.  Compared to 2013, purchase originations are expected to increase by 3.8 percent.”
    Refinance originations were revised lower as well and are now expected to be $440 billion in 2014, compared to $463 billion estimated previously.  The updated refinance total is around 60 percent lower than 2013 refinance originations. 
    More info
    “Understanding California's Home Sellers” Webinar
    C.A.R. is offering its members a free webinar about the findings of its 2013 Home Seller Survey. The survey takes a look at sellers in greater detail, and gathers insights on home seller demographics, the types of homes sold, the details of the selling experience from the owners’ perspective, and many aspects about client and real estate agent interaction. Attendees also will learn how to communicate more effectively with clients, understand how consumers choose their agent, improve the agent’s value proposition, and maximize social networking and Internet profiles.

    The one-hour webinar will take place Thursday, Jan. 30, at 2 p.m. Register today.
    Two California Neighborhoods Top List of Hottest Neighborhoods in 2014
    Redfin has compiled a list of neighborhoods with the greatest growth in popularity over the last four months, and two California neighborhoods top the list – Bernal Heights North Slope in San Francisco, and Eagle Rock in Los Angeles County. 

    According to Redfin, highly ranked schools and scenic community parks appear to be the common thread among the top neighborhoods. However, Redfin agents have found that the real trend in 2014 neighborhood popularity is a short commute at an affordable price. The trending neighborhoods offer a short drive to or easy access to a commuter rail line at prices that are not the most expensive in the city.

    “After a year in which prices popped 13 percent, Americans are checking out still-close-in but often-overlooked neighborhoods in search of affordability, even if means less-fashionable restaurants or a home that needs a little more work,” said Redfin CEO Glenn Kelman. 
    More info

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