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Lower “Jumbo” Loan Limits Coming People buying homes in the country's most expensive housing markets likely will face pricier mortgages starting in the fall. Read More
Are you getting your money’s worth with appraisal? Despite Federal Reserve regulations that took effect April 1 requiring lenders to pay appraisers fair fees, many appraisers say they are still offered $200 to $250 by lenders for work billed to consumers at $450 or more. Read More Price reductions increase year over year in December The number of listings nationwide with at least one price reduction increased 4 percentage points in December 2010 compared with December 2009, Trulia.com recently reported. Meanwhile, average reductions remained flat at 11 percent in a year-over-year comparison, although they have risen by 10 percent since last month. Read More December 16, 2010 Some condo owners may lose FHA financing Tens of thousands of condominium unit owners around the country may not know it, but their ability to sell or refinance could be jeopardized by a rolling series of federal government deadlines. Read More
Numerous FHA condominium project approval dates extended The Federal Housing Agency (FHA) recently announced extensions to the approval dates for condominium projects that were previously set to expire Dec. 7, 2010. The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time, while recognizing current housing market conditions. Read More December 9, 2010 Housing recovery after 2012, consumers says Nearly 60 percent of Americans believe the housing market won’t recover until 2013 or later, according to a survey released Tuesday by Trulia.com and RealtyTrac. Read More December 8, 2010 Americans uncertain housing market has bottomed A new survey by Fannie Mae finds that Americans are less certain that the housing market has bottomed and continue to be wary of buying a home. Read More December 2, 2010 F.H.A. rule changes for mortgage borrowers Home buyers with sketchy credit who are unable to qualify for conventional mortgages may now find it more costly and difficult to obtain loans insured by the Federal Housing Administration. Read More December 1, 2010 New home sales decline in October Sales of new single-family houses declined 8.1 percent in October compared with September to a seasonally adjusted annual rate of 283,000 units, according to the U.S. Census Bureau and the Dept. of Housing and Urban Development. The annual rate decreased 28.5 percent compared with October 2009. Read More November 25, 2010 New lending guidelines from Fannie Mae New lending guidelines being rolled out by Fannie Mae will make securing a mortgage a lot easier for some borrowers, but harder for others. The rules, effective on Dec. 13, will allow buyers to use gifts and grants from nonprofit groups for their minimum 5 percent down payment, which is the threshold set by Fannie Mae, the government-owned company that sets lending standards and buys mortgages from lenders. Read More November 18, 2010 November 17, 2010 November 11, 2010 November 10, 2010 November 4, 2010 November 3, 2010 October 28, 2010 The price of a “no-cost” loan Some home buyers who may be concerned about paying high closing costs might be tempted by a “zero-cost” or “no-cost” loan option, which requires no cash outlay, but typically adds a half percentage point to the rate. However, some financial consultants say these loans tend to be most beneficial to buyers planning to have the loan for less than five years. Read More October 27, 2010 Price reductions continue to increase Trulia.com recently announced that price reductions for homes currently listed for sale have increased for the fourth consecutive month to an all-time high of 27 percent and account for a total reduction of more than $30.7 billion nationwide. Read More October 21, 2010 A little-known loan program for fixer-uppers Home buyers thinking of purchasing a distressed property in need of repair, but who are concerned that the cost of the repairs could drain their savings account may qualify for the Federal Housing Administration’s (FHA) 203(k) rehabilitation program. Read More October 20, 2010 Multifamily borrowing declines 40 percent In 2009, multifamily lenders provided a total of $52.5 billion in new financing for apartment buildings with five or more units, representing a 40 percent decline from 2008, according to the Mortgage Bankers Association’s Annual Report on Multifamily Lending for 2009. Read More October 14, 2010 Unemployed? Get a federal loan to pay your mortgage Unemployed and can’t pay your mortgage? You soon can apply for a no-interest government loan for up to $50,000 to pay your mortgage and cover your arrears. The loan, which can offer assistance for up to two years, will be forgiven if the homeowner stays in the house for five years. Read More October 13, 2010 HUD proposes new regulations on lenders for reimbursement The U.S. Department of Housing and Urban Development (HUD) recently proposed new regulations to strengthen its authority to force certain lenders to indemnify or reimburse the Federal Housing Administration (FHA) for insurance claims paid on mortgages that are found not to meet the agency's guidelines. Additionally, HUD's proposed rule would require all new and existing lenders with the ability to insure mortgages on HUD's behalf to meet stricter performance standards to gain and maintain their approval status. Read More September 22, 2010 California home sales and price edge up from July California home sales edged up 1.8 percent in August compared with July, but were down 14.9 percent from August 2009, C.A.R. reported today. The statewide median home price also increased 1.2 percent from July and was up 8.6 percent from a year ago. “Buyers who are holding out should consider the opportunities in today’s market,” said C.A.R. President Steve Goddard. “Favorable home prices and interest rates at or near historic lows make housing affordability the best in recent memory. Anyone who is in a position to buy a home should do so before either of these key factors rise.” Read More
Construction spending rises in June Construction spending rose 0.1 percent in June compared with May to a seasonally adjusted annual rate of $836 billion, according to a report released Monday by the U.S. Census Bureau and the Dept. of Commerce. The June figure is 7.9 percent below the June 2009 estimate of $907.7 billion.Read More
Home prices nationwide improve in May The 10-City and 20-City Composites tracked as part of the S&P/Case-Shiller Home Price Indices rose in May. The 10-City Composite rose 5.4 percent in May compared with a year ago, and the 20-City Composite increased 4.6 percent compared with May 2009. Nineteen of the 20 metro areas and both Composites showed an improvement in May compared with April, but only 12 of the metro areas reported better month-over-month growth rates in May than those reported in April. Read More July 22, 2010 After ducking the bubble, Asian buyers seize upon lower prices A substantial number of Asians and Asian-Americans dodged the housing crunch, and now they’re taking advantage of low home prices and low mortgage rates in California, say local real estate agents and a survey from a REALTORS® group. Read More July 22, 2010 Lender's data mining goes deep Mortgage makers are going beyond tax returns and bank statements to determine whether you’re a good risk. They’re checking such things as where you have pizza delivered and where you shop online. Read More
Foreclosure sales account for 31 percent of Q1 sales Sales of foreclosure properties accounted for 31 percent of all residential sales nationwide in the first quarter, according to a foreclosure sales report published by RealtyTrac®. The report also showed that the average sales price of properties that sold while in the foreclosure process was nearly 27 percent less than the average sales price of properties not in the foreclosure process. Read More July 8, 2010 30-year mortgage rates down to new low Another week, another record low mortgage rate. Just barely. July 7, 2010 Closing deadline extended for federal tax credit President Obama signed a bill Friday extending the closing deadline for the federal home buyer tax credit to Sept. 30, 2010. The bill is retroactive and covers from June 30, 2010 to the date of enactment of the extension. To qualify for the extension, home buyers must have entered into a contract prior to May 1, 2010. Read More
Deeds-in-lieu gain favor Short sales have been the hot solution for financially stressed homeowners and their lenders for the last year, but there’s another potent foreclosure alternative that’s about to take center stage: Deeds-in-lieu. Read More
New home sales decline 32.7 percent in May Sales of new homes declined 32.7 percent in May compared with April to a seasonally adjusted annual rate of 300,000 units, the U.S. Census Bureau and U.S. Dept. of Housing and Urban Development (HUD) announced today. On a year-over-year basis, new home sales declined 18.3 percent. Read More
Home shortages could develop as recovery unfolds Sooner or later, the economy will rebound, jobs will return and new households will form. When that time comes, however, there might not be enough housing to accommodate all the new family formations. Read More
Freddie Mac: Mortgage rates hit low for year Rates on 30-year fixed mortgages fell this week to the lowest level of the year and were barely shy of the all-time low. Mortgage finance company Freddie Mac says the average rate sank to 4.72 percent, down from 4.79 percent last week. It was just above the record of 4.71 set last December. The average rate on a 15-year fixed-rate mortgage hit 4.17 percent, down from 4.2 percent last week and the lowest on records dating back to August 1991. Read More
After shopping for a home, tired buyers often make poor mortgage choices New research suggests buyers applying for mortgage loans immediately after house hunting often make poor choices—sometimes selecting the first loan option presented, regardless of the terms with which it is associated. Read More
Pending home sales rise 6% in April NAR’s Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in April, rose 6 percent to 110.9 from an upwardly revised 104.6 in March, and is 22.4 percent higher than April 2009, when it was 90.6. Pending home sales currently are at the highest level since October, when the index reached 112.4 as first-time buyers rushed to beat the initial deadline for the federal home buyer’s tax credit. Read More
Construction spending rises 2.7 percent in April Construction spending rose 2.7 percent in April compared with March to a seasonally adjusted annual rate of $869 billion, according to a report released yesterday by the U.S. Census Bureau of the Dept. of Commerce. The April figure is 10.5 percent less than the April 2009 estimate of $971 billion.Read More
California’s median home price up 21 percent in April from a year ago California’s median home price—the point at which half of homes sold for more and half for less—rose 21 percent in April compared with a year earlier, but sales of existing, single-family homes declined 8.1 percent, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) April sales and price report. Read More
Nationwide home prices rise in March The 10-City and 20-City Composites tracked as part of the S&P/Case-Shiller Home Price Indices rose in March. The 10-City Composite rose 3.1 percent in March compared with a year ago, and the 20-City Composite increased 2.3 percent compared with March 2009. Eighteen of the 20 metro areas and both Composites showed an improvement in March compared with February. Read More
Lenders likely to order second, last-minute credit report before closing on mortgage If you’re thinking about applying for a home mortgage this year, here’s some important news: Beginning June 1, your lender is likely to order a second full credit screening immediately before closing. Read More
California first-time home buyer tax credit update The California Franchise Tax Board (FTB) recently released an update on the California home buyers’ tax credit alerting borrowers to fax delays it is experiencing. Due to the high volume of faxes, borrowers may experience delays or difficulties in connecting to the fax number during the FTB’s normal business hours. It may take several minutes or possibly up to an hour to connect and transmit the faxed application. Read More
How to buy a foreclosure Many buyers, especially first-timers, hope to purchase a foreclosed property at a bargain price. While purchasing a foreclosed home can be a wise choice for some buyers, it is important that buyers understand the differences in buying at different stages of foreclosure and be prepared to take on the challenges typically associated with each. Read More
May 5, 2010 RESPA changes cause borrower confusion, increased application time New RESPA regulations, which took effect Jan. 1 and require lenders and brokers to provide borrowers with a standard Good Faith Estimate (GFE) form, have caused confusion for many borrowers, according to a new survey conducted by Work Number of its mortgage and banking customers. Under the new RESPA regulations, closing agents are required to provide borrowers with a newly revised HUD-1 Settlement Statement that clearly compares consumers' final closing costs with the originally quoted costs. The final price for certain services, including the credit report, must be within 10 percent of the quoted price or lenders may face penalties. Read More
April 22, 2010 Why it may be time to refinance your loan With the Federal Reserve out of the mortgage market and the economy gaining strength, some economists are warning that mortgage rates, still near historic lows, will soon start to rise. Read More
April 15, 2010 Mortgage Rate Jump Mortgage rates have shot up in the past few weeks, and may climb even higher, raising concerns about the recovery of the fragile housing market. Read More
April 7, 2010 Pending Home Sales Rise 8.2% in February NAR’s Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in February, rose 8.2 percent to 97.6 from a downwardly revised 90.2 in January, and remains 17.3 percent above February 2009 when it was 83.2. Read More
March 25, 2010 California Passes Home Buyer Tax Credit Bill Governor Schwarzenegger today signed AB 183 providing $200 million for home buyer tax credits. The bill allocates $100 million for qualified first-time home buyers who purchase existing homes and $100 million for purchasers of new, or previously unoccupied, homes. Read More
March 17, 2010 Federal Reserve Leaves Interest Rate Unchanged The Federal Reserve announced yesterday it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information ... suggests that economic activity continues to strengthen and that the labor market is stabilizing," the Fed said in a prepared statement. Read More
March 4, 2010 Home prices decline 1.2 percent, smallest drop in two years U.S. home prices fell 1.2 percent in the fourth quarter from a year earlier, the smallest loss in two years, as a federal tax credit for home buyers boosted demand. Read More
March 3, 2010 FHFA extends HARP for one year The Federal Housing Finance Agency (FHFA) this week announced the extension of the Home Affordable Refinance Program (HARP) to June 30, 2011. HARP is a refinancing program administered by Fannie Mae and Freddie Mac and expands access to refinancing for qualified individuals and families whose homes have lost value. The program was originally set to expire June 10, 2010. In 2009, Fannie Mae and Freddie Mac purchased or guaranteed more than 4 million refinanced mortgages. Homeowners can visit www.MakingHomeAffordable.gov for additional information on the program. Read More
February 17, 2010 Entry-level housing affordability remains at 64 percent The minimum household income needed to purchase an entry-level home at $257,940 in California in the fourth quarter of 2009 was $44,100, based on an adjustable interest rate of 4.5 percent and assuming a 10 percent down payment. First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,470 for the fourth quarter of 2009. At $44,100, the minimum qualifying income was 4 percent lower than a year earlier when households needed $45,900 to qualify for a loan on an entry-level home. Home prices remained below peak levels, resulting in an improvement in housing affordability compared with the previous year. Read More
February 12, 2010 Fannie Mae offers 3.5 percent seller assistance
February 5, 2010
Housing momentum builds but perils persist
February 3, 2010
January 27, 2010 Fed leaves key rate unchanged Consumer Confidence Index rises in January
January 21, 2010 Home loan applications jump 9 percent as interest rates fall |