As Mortgage Rates Climb, Home Sales Slip

As Mortgage Rates Climb, Home Sales Slip

Rising mortgage rates are biting into home sales. The Wall Street Journal reports that this will likely continue as interest rates readjust in the new year and as the Federal Reserve winds down its bond-buying stimulus program.

The relationship between rates and home sales is most evident so far with new homes: As interest rates have risen, demand for new homes has also fallen. Housing's Best Buys for 2014: Home prices and mortgage rates are on the rise, and some investors are retreating from the market. However, Forbes believes there are still plenty of housing deals left for home buyers in the new year, and with possibly less competition.

Where to Invest in Housing 2014 'Salt Lake City'

Where to Invest in Housing 2014 'Salt Lake City'
Best Buy Cities: Buying a home can be a great investment, as investors gobbling up properties over the last few years–when prices and mortgage rates were at the bottom–well know. Now, with homes prices and rates ticking steadily back up, investors are backing away from the market, leaving more room for the rest of us. Perhaps you fear you’ve missed the best time for buying housing. Prices were low last year, but there are still deals to be had. The good news is that less competition for housing and an overall less-crazed market than in 2013. Best Buy Cities–the top 20 housing markets to invest in for 2014. This makes them fairly low-risk investment opportunities for buyers who are smart and know not to overpay. Read more...

Ring in the New Year at EVE, Salt Lake City's

Ring in the New Year at EVE, Salt Lake City's
Salt Lake City's three day celebration: Catch live music by beyond5 and Smallpools, DJs, performances, museums, and a Jazz game – nine downtown venues are included! Jump in bounce town and play in the ballroom at the Salt Palace. Don't miss fire dancers, a Native American PowWow and of course – fireworks! See What's in Store for #Housing in 2014. Watch video to see the events schedule....

Fannie, Freddie Fee Hikes Delayed for Review

Fannie, Freddie Fee Hikes Delayed for Review

The incoming director of the Federal Housing Finance Agency says that he will delay Fannie Mae and Freddie Mac's planned increases on mortgage fees until he has time to review the reasoning behind it.

Fannie Mae and Freddie Mac said earlier this month that they intend to charge more to lenders who guarantee loans for borrowers with mid-range-or-below credit scores, as well as borrowers who don't meet certain down payment guidelines. 

#Mortgage fees were set to take effect in March & April on #Home borrowers. Fannie Mae and Freddie Mac said earlier this month that they intend to charge more to lenders who guarantee loans for borrowers with mid-range-or-below credit scores, as well as borrowers who don't meet certain down payment guidelines. Watch our video to lean more.

Equity Has Returned

Equity Has Returned

For Those Who Held On: Home prices surged 11.3 percent this year compared to 2012, the latest housing data shows. 

A rise in home prices has pulled more home owners out from underwater with the return of equity this year, NAR notes.
 

On NAR’s Economists’ Outlook blog, researchers explain that a borrower who bought a median-priced home in 2004 and held it for nine years – the average tenure in a home – would now have $28,114 in equity (includes combined price appreciation and paying down mortgage principle). read more at Affordable Utah Housing...

“How Will Housing Recovery Fare In 2014?”

“How Will Housing Recovery Fare In 2014?”

In fact, job growth likely will be one key to driving housing growth in the new year. 

As employment picks up, greater demand for housing is expected to occur and a surge in homebuilding activity. Celia Chen, housing economist at Moody's Analytic, predicts a “homebuilding boom” in 2014.The housing recovery is expected to continue on its path in the new year with home prices continuing to rise (although at a slower pace); sales to rise slightly; and the foreclosure crisis expected to finally draw to an end. 

10 States Facing the Highest Foreclosure Rates

10 States Facing the Highest Foreclosure Rates
The industry’s foreclosure inventory contracted again in November upon continued improvements on the housing and economic fronts.
Although on a monthly basis, the inventory of homes in foreclosure fell slightly by 1.72 percent, year-over-year, it was down 28.81 percent.
The data and analytics firm released a preview of its November 2013 month-end mortgage performance statistics, showing there are now 1,256,000 mortgage loans in foreclosure, or 2.5 percent of all outstanding mortgages nationwide. Foreclosures are falling, but they still remain a problem in some pockets across the country. #Home Foreclosure activity in November was found to be the highest in the following states. See states

New-Home Construction Hits Fastest Pace in 5 Years

New-Home Construction Hits Fastest Pace in 5 Years

30-Year Rates on the rise 'This Week'. 

Homebuilders are ramping up new-home construction at the fastest pace in more than five years, the Commerce Department reported Wednesday. 

Construction of single-family homes and apartments in November rose to a seasonally adjusted annual rate of 1.09 million, a 23 percent increase over October’s pace. It marks the fastest pace since February 2008. Housing inventories remain tight, with inventories of homes under construction hovering at a four-and-a-half-year low.  See Housing Now 

Rents rising an average of 3.3% in 2014

Rents rising an average of 3.3% in 2014

Tight supply and rising demand are still the key drivers. 

Higher rents are ahead next year for the nation's apartment dwellers, but some cities will see smaller bumps than in recent years, market researchers say.
Rents will increase 3.1% nationally next year, about the same as this year, apartment market researcher says. Meanwhile, researcher Reis sees rents rising an average of 3.3% in 2014. Any slowdown in rent increases will be good news for renters. See Video 

Salt Lake again among Best Performing Cities 2013

Salt Lake again among Best Performing Cities 2013

Salt Lake City is among a trio of Utah cities on Forbes magazine’s 2013 list of the top 25 places for business and careers. 

For yet another year, Utah cities have outperformed most of the rest of America.

According to the Milken Institute’s 2013 rankings, the Provo-Orem area was the second best-performing city in the U.S., just behind the Austin metro area. Salt Lake City wasn’t far behind, taking the fifth spot on the list. San Francisco and San Jose round out the top five. Both of the Utah cities on the list also rose in 2013; Provo moved up an impressive five spots, while Salt Lake City jump up one spot.

Multigenerational Households a Lasting Trend?

Multigenerational Households a Lasting Trend?

Together Again: The recession set off a new wave of multigenerational households, which began to increase in late 2007.

Fewer new households were created as more people doubled up to ride through economic hard times. College grads moved back home, and aging parents moved in with family. 
#Homes are being reconfigured to make room for more people living under one roof. For example, some #builders are debuting floor plans that include semi-independent suites with separate entrances, bathrooms, and kitchens to reflect the growth in multigenerational households. More buyers are also saying that they’d pay extra for a home with an in-law suite.

Utah 3rd 'Lowest Energy Bills' in the U.S.

Utah 3rd 'Lowest Energy Bills' in the U.S.

The U.S. Energy Information Administration’s 2012 “Electric Sales, Revenue, and Average Price” report brings to light (see what we did there?) the rise of average monthly electricity bills in the past 10 years. 

This increases the incentive for home buyers and renters to opt for energy-efficient options when choosing a place to live, although EcoBuilding Pulse points out that residential customers in some states are bigger targets than others.

Conversely, the places where homeowners paid the least to burn the midnight oil were the following states and in some states, homeowners are paying nearly twice as much as the national average for electricity. See which states

Utah 'Winter Wonderlands' and Healthiest State

Utah 'Winter Wonderlands' and Healthiest State

Top 10 'Winter Wonderlands': Park City, Utah With neighbors including U.S. Ski Team Olympians, Park City residents know how to take advantage of all the fun that comes with cold weather.

Park City is a winter sports enthusiast’s heaven, receiving more than 500 inches of powdery snow each winter. Adventure a bounds on over 100 slopes and trails.

Healthiest States Are ...  Americans are getting healthier, but where you live may make you even more likely to adopt healthier behaviors

Fannie Mae won’t be a Grinch over the holidays.

Fannie Mae won’t be a Grinch over the holidays.

Home for the Holidays Thanks to Fannie Mae. The company announced that it will issue an eviction moratorium for the holidays, as it has done in previous years. 

The GSE will suspend evictions of foreclosed single-family and 2-4 unit properties from December 18, 2013 through and including January 3, 2014. During this period, legal and administrative proceedings for evictions may continue, but families living in foreclosed properties will be allowed to remain in the home.Home for the Holidays Thanks to Fannie Mae. The company announced that it will issue an eviction moratorium for the holidays, as it has done in previous years. Also HUD Issues Final ‘Qualified Mortgage’ Ruling effective Jan 10, 2014 Learn more on this at our website.

Salt Lake City Hottest Housing Markets in 2014’s

Salt Lake City Hottest Housing Markets in 2014

Salt Lake City, the burst housing bubble of yesteryear is looking more and more like a distant memory.

That’s good news for people looking to sell; it means home values should rise in 2014 as demand swells. Among other things, they also predicts home values will rise across the Nation and Mortgage rates will hit 5 percent by the end of 2014.

If that happens, it would be the first time rates went that high since 2010.

The good news for home buyers is that mortgages should be easier to get, though overall homeownership rates will sink to their lowest point in nearly two decades.The news of Salt Lake City’s booming market comes after earlier reports indicated a strong real estate recovery in the region. See more predictions for 2014 and median home prices for Salt Lake County.

Rents Hit 'Crisis' Levels

Rents Hit 'Crisis' Levels

U.S. in 'Worst Rental Affordability Crisis' Ever: As rental demand grows, soaring rents are taking a bigger bite out of households’ pocketbooks. 

About half of renters spend more than 30 percent of their income on rent, up from 18 percent a decade ago, according to newly released research by Harvard’s Joint Center for Housing Studies. Twenty-seven percent of renters are paying more than half of their income on rent. 

Rising rents mixed with a stunted wage growth has created an affordability problem, the study notes. Between 2000 and 2012, real median rents rose nationwide by 6 percent.However, over that same time period, the real median income of renters fell by 13 percent. Many have plans for home ownership one day: Nineteen out of 20 people under the age of 30 say they intend to buy a home in the future.

New FHA loan limit Effective Jan. 1

New FHA loan limit Effective Jan. 1

The Federal Housing Administration will be reducing the amount it’ll insure on high-cost mortgages starting in the new year. 

Ceiling for loans in high-cost areas falls to $625,500

Beginning on Jan. 1, all FHA loans will be capped in high-cost areas at $625,500, reduced from the current cap of $729,750. 

FHA will keep its current loan limits in place in areas where housing costs are lower than $271,050. Watch the video at our website on Fannie, Freddie Retain Higher-Priced Mortgage Limits 

Estimated Time to Clear Distressed Inventory Rises

Estimated Time to Clear Distressed Inventory Rises

Distressed inventory is on the decline, but the number of months it will take to clear that distressed inventory from the market is on the rise.

Distressed inventory among non-agency residential mortgage-backed securities (RMBS) dropped 20 percent year-over-year and 5 percent quarter-over-quarter in the third quarter of this year.

While distressed inventory is declining, the time estimated to clear these distressed homes from the market is rising, up five months from the second quarter of this year and 11 months from September 2012,
See inventory by state...

Real Estate Stories From 2013,Predictions for 2014

Real Estate Stories From 2013,Predictions for 2014
A Look Back and a A Look Ahead: Real estate had a big year in 2013 as the housing recovery strengthened, and the public showed an increasing appetite for real estate-related news. 
As 2013 comes to a close and real estate experts predict where the housing market is headed in 2014, a look back reveals several trends.

While no one can predict with certainty what the housing market holds in store for 2014, a constant in real estate is always that local markets vary widely in their performance. 

National numbers can tell a story about the economy in general, but home prices, inventory and foreclosure activity depend on local market conditions. Contact a Realtor® in your community for the most up-to-date  information about your market.

Built-to-Rent New Homes on the Rise

Built-to-Rent New Homes on the Rise

Thousands of single-family homes are being built to rent rather than sell. More #home builders and investors see it as an income-generating investment at a time when the pool of first-time home buyers is shrinking and #Mortgage rates see Sharp increases this week.

The percentage of homes built specifically as rentals was 6.2 percent in 2012 — a record high, according to Census Bureau figures. For example, in the Atlanta area, a five-bedroom, three-bathroom new home that may have sold for less than $200,000 can fetch $1,300 a month in rent. “New homes still command a premium with renters,”   See rates at our website

Nearly Half of States Within Reach

Nearly Half of States Within Reach

Peak Home Prices: Twenty-three states are within 10 percent of their 2006 home price peaks,.  

Home prices have increased 12.5 percent year-over-year. However, prices had a more modest month-over-month gain of 0.2 percent from September to October. #Home prices have increased 12.5 percent year-over-year. However, prices had a more modest month-over-month gain of 0.2 percent from September to October. “The slowdown in appreciation is positive for the #housing market as almost half the states are now within 10 percent of their respective historical price peaks,” Is your state one?

Investors Target ‘Hipster’ ZIPs

Investors Target ‘Hipster’ ZIPs

For Rental Returns, 

The hipster lifestyle can have a “major impact on local real estate markets, and mostly in a positive way,” 

Neighborhoods that are branded as “hipster” often offer trendy restaurants, coffee shops, and other amenities — and that's likely to see property values and rental rates rise, 

Savvy real estate investors are even targeting hipster markets to purchase rental properties, betting that they will offer up steady cash flow and strong appreciation. Take a look at their effects on #housing.

Foreclosed Owners Get Second Chance Sooner

Foreclosed Owners Get Second Chance Sooner

Those who lost their home due to financial hardships may get another shot at being home owners again soon.

The Federal Housing Administration recently announced that they would shorten the waiting period for qualified borrowers who’ve had a bankruptcy, foreclosure, deed in lieu of foreclosure, or short sale who want to buy a home again.

Those who lost their home due to financial hardships may get another shot at being #home owners again soon. The Federal Housing Administration recently announced that they would shorten the waiting period for qualified borrowers who’ve had a bankruptcy, foreclosure, deed in lieu of #foreclosure, or short sale who want to buy a home again. Under the FHA'sBack-to-Work program, learn more at our website.

Asking Prices Surging in These Markets

Asking Prices Surging in These Markets

Median list prices are up 7.57 percent over the last year, according to a Median Home Prices Report, which reflects October data for 146 metro markets. 

“Monthly prices fell slightly in October (down 0.25 percent month-over-month), but remained resilient against the usual seasonal patterns of stabilizing inventory,” noted in its report. 

 Only 19 markets posted price declines, led by Akron, Ohio, which posted a 7.93 percent year-over-year loss, and South Bend, Ind., with a 7.79 percent decrease in median asking prices.  Median list price at our website.

Foreclosure Auction and REO Sales Picked up Pace

Foreclosure Auction and REO Sales Picked up Pace In October, U.S. Residential and Foreclosure Sales Report, which shows that U.S. residential properties, including single-family homes, condominiums and townhomes, sold at an estimated annualized pace of 5,649,965—a 2 percent increase from the previous month and up 13 percent from October 2012.

The national median sales price of all residential properties—including both distressed and non-distressed sales—was $170,000, unchanged from September but up 6 percent from October 2012. It was the 18th consecutive month median home prices have increased on an annualized basis.
Read more: Experts Say, Principal reductions perform better than rate decreases: When helping struggling home owners, principal reductions on mortgages tend to help them avoid foreclosure more than reducing the interest rates on the loans.

New-Home Market Posts Big Gains as Permits Surge

New-Home Market Posts Big Gains as Permits Surge
Housing permits for home construction reached a five-and-a-half-year high in October, signaling a strong uprise in new-home construction, the Census Bureau reports. 

Led by a big jump in multifamily permits, overall building permits surged 6.2 percent in October to a seasonally adjusted annual rate of 1.03 million units. That marks the highest level since June 2008. Permits typically lead housing starts by at least a month.

Housing permits in the West and South posted some of the strongest gains. Go West: Utah - Life Elevated - Powder Skiing. Click the link to watch the video of Utah Greatest Snow on Earth® - let us show you.

Go West

Go West
For Real Estate Predictions, Housing analysts are closely watching the Western region’s housing market for signs of what may be to come for the rest of the country. After all, the West was the first region to crash in the mid-2000s, and the first region to start recovering. 

Existing-home sales nationwide dropped 3.2 percent in October. But the drop in sales in the West was largely due to a shortage of homes for sale. 'In the West region, there is a significant shortage of inventory, so you have buyers who are looking for the right home unable to find it and unwilling to commit,' 

'But because of the inventory shortage, one is still seeing strong price increases in the West.' To Learn more about the market watch our video.

Short sales falling out of favor with lenders

Short sales falling out of favor with lenders

As prices surge, Short sales were all the rage in late 2011 and early 2012, but surging demand has loan servicers with distressed properties on their hands going back to traditional foreclosure auction sales and bank-owned sales, where cash is often king, 

“The combination of rapidly rising home prices, along with strong demand from institutional investors and other cash buyers able to buy at the public foreclosure auction or an as-is REO home, means short sales are becoming less favorable for lenders,” said RealtyTrac Vice President Daren Blomquist in a statement. 

GSEs Update Short Sale Policies:  EFFECTIVE  DATE  The changes announced in this Bulletin are effective January 10, 2014.  

Mortgage rates shifted down this week,

Mortgage rates shifted down this week,
According to reports from Freddie Mac and finance Security National Mortgage.

After two consecutive weeks moving to the upside, mortgage rates reversed course following. Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaging  (0.7 point) for the week ending November 21, a decrease from last week. A year ago at this time 30-year FRM averaged 3.31 percent. Click on link to see current #Mortgage Rates and #Homes on the Market.

Home Buyers Plan to Make a Move This Winter

Home Buyers Plan to Make a Move This Winter

Home buyers who weren’t successful this summer at finding a home due to limited inventories and competition from all-cash offers are looking to retry their luck in the winter, 

“This summer and spring, home-buying season was particularly challenging for buyers, especially first-time home buyers trying to compete with all-cash offers and bidding wars because of reduced inventory,”   “In fact, a quarter of the winter home buyers revealed they are in the market now. 

Demand for Residential #Rental Properties Still Strong With potential #home owners finding it tough to buy their first home, there is still strong demand for rental units, judging by rental price trends.

Foreclosure Inventory Plunges Nearly 30%

Foreclosure Inventory Plunges Nearly 30%

The nation’s foreclosure inventory has contracted for 18 consecutive months and is now at its lowest point since the end of 2008, totaling 2.54 percent of today’s active mortgages,

The company’s latest report assessing loan-level data on the performance of mortgage assets through the end of October shows the industry’s foreclosure inventory rate is down 29.61 percent from last year. Through the first 10 months of 2013, the foreclosure inventory rate has plummeted 26 percent. 
With Tight Inventory, Prices Only Going Up From Here: A low number of homes for sale is pushing home prices up to double-digit gains year-over-year,

Is Tighter Credit for the Better?

Is Tighter Credit for the Better?

It’s no secret underwriting standards have tightened in recent years, and while many decry the heightened standards for making homeownership less accessible to some Americans, 

CoreLogic economist Sam Khater pointed out in a report released Wednesday that heightened standards are undoubtedly impacting delinquency rates for the better.“While there has been much consternation about underwriting being too tight in the context of forthcoming mortgage regulations, one underappreciated outcome has been the very good performance of mortgages during the last few years. ResurgentHousing Sector' to Lead 2014: Despite rising #interesting rates and #home values.

Home Repossessions Fall

Home Repossessions Fall

As Investors Step in: The number of foreclosures and repossessions by banks is dropping, and investors may be the ones driving the decrease. Investors are increasingly buying up properties when they go on sale at public auction, 

With an improving housing market, “investors are back in the game,”

The percentage of homes completing the foreclosure process fell 29 percent in October compared to year ago levels, according to RealtyTrac data. Foreclosure starts have been dropping nationwide for 15 consecutive months. Repossessions have decreased for 11 consecutive months. 
Highest activity in foreclosures in October:

Home Prices Continue Rising, Sales Steady

Home Prices Continue Rising, Sales Steady
Home sales continue to seesaw—while levels increased from the previous year, they dipped from previous month. 

Following historic seasonal trends, October home sales edged 2.8 percent lower than September, but still pushed 2.2 percent higher than sales in October 2012. Median home prices were 11.9 percent above prices seen last October.

“What we’re seeing now are predictable seasonal cycles, which is just another sign that the #housing recovery is bringing us back to a more normal market,”  #Home Sales are expected to slow during Holidays and Winter months next growth in spring contact us for a FREE Market Analysis

Buying Frenzy Starting to Cool?

Bidding wars in recent months have fueled large gains in home values in some parts of the country, particularly states like California, Arizona, and Nevada. 

But bidding wars and the buying frenzy from a few months ago are showing signs of cooling, at a time when housing affordability has been reduced due to higher mortgage rates and home prices, Bloomberg reports. 

“The bidding wars were creating a false market,” homebuyer Mike Imgarten told Bloomberg about his two-month house hunt in Sacramento, Calif., area. “Now is a good time to jump back in and see where we’re at.”  read more.

Homes Selling Faster Than Previous Year

Homes Selling Faster Than Previous Year
Nationwide, homes listed for sale on Zillow were selling at a rapid clip, to the tune of a month faster in September than a year ago, according to a new analysis. 

“The declining inventory of for-sale homes over the past year naturally creates pressure for buyers to more quickly snap up the inventory that is on the market. This demand has been fueled by huge resets in home prices since market peak, historically low mortgage rates and a slowly improving broader economic climate,” #Home shoppers in today’s environment need to be prepared to move quickly, with pre-approvals in place and an established sense of what they’re willing to pay for a home,” We do expect that this need for speed will abate in the near-term as mortgage rates rise and more inventory becomes available because of new construction and declining negative equity.” #Mortgage Rates Move HigherAgain See rates.

Payday for Borrowers After Foreclosure?

Payday for Borrowers After Foreclosure?

More than 1,000 home owners who lost their homes to foreclosure in the Phoenix metro area may be eligible to recoup thousands of dollars in cash due to rising home prices. Many foreclosures are selling for more because of the general uptick in home prices, and some are even fetching more than what the original borrowers owed on their mortgages.  

Typically in a foreclosure sale, the amount owed to the lender gets paid from the proceeds first. Then the remaining money goes to the county’s treasury office, where it remains for three years. Another Sign Foreclosure Crisis Is Evaporating?

A First-Ever Flip in Mortgage Affordability

A First-Ever Flip in Mortgage Affordability
Jumbo Mortgages Get Cheaper Than Other Mortgages: 

In an unusual move, jumbo mortgages are becoming a bigger bargain over conforming loans. 

Lenders are offering jumbo mortgages at lower rates -- more than a quarter of a percentage point -- than conforming loans that are backed by Fannie Mae and Freddie Mac, Generally, banks charge higher rates on jumbo mortgages, typically about a quarter of a percentage point more than conforming loans, according to the Mortgage Bankers Association. 
But recently that has reversed. 

Agent, Appraiser: How Much Can We Talk?

Agent, Appraiser: How Much Can We Talk?

One big misunderstanding between real estate agents and appraisers centers on how, when, and what they can communicate about the valuation process, 

While federal laws dictate those communications, appraisers and agents don’t have to be estranged during a transaction.

“There’s a window of opportunity when agents and appraisers can talk, but once the appraisal has been developed and sent to the client, that window is closed,” said Vic Knight, appraiser at Chapel Hill Appraisals in Raleigh, N.C. Another issue: 

Price Gains, Not Sales, to Drive Housing Growth

Price Gains, Not Sales, to Drive Housing Growth

 The dollar volume of home sales will rise modestly next year, but that growth will stem entirely from increased home prices,

Continuing tight underwriting by lenders, low inventories in many markets, and rising interest rates are holding back growth in sales volume, said Yun, leading him to predict home sales of about 5.12 million for 2014, virtually the same level forecast for 2013. But home prices will rise by 6 percent.

Lenders, Not Vendors, Responsible for Accurate Appraisals

How Men, Women Differ on Home Buying

How Men, Women Differ on Home Buying
Men are from Mars, women are from Venus — and that couldn't be more true when it comes to home buying. According to Prudential Real Estate's third-quarter Consumer Outlook Survey, men and women are quite different when it comes to what they value most about home ownership and the process of buying and selling.Women enjoy the home search more than men, with 87 percent of women versus 77 percent of men saying they like looking at homes, the survey finds. More women associate home ownership with 'pride,' 'accomplishment,' or 'independence,' while men tend to associate it with 'control over living space' and 'more space for my family.'
'As the real estate market strengthens and household formation grows, men and women approach the buying-selling process from different angles,' says Earl Lee, president of Prudential Real Estate. 'What's most interesting is the dynamic that exists among couples and the role that agents play in balancing couples' real estate objectives.' read more..

6 Reasons Why This Winter Is a Great Time to Sell

6 Reasons Why This Winter Is a Great Time to Sell

Forget the myth that winter is a bad time to sell real estate.

While sales usually inch lower in the cooler months, some real estate pros are saying this winter in particular may be a great time to sell a home. Here’s why: 

1. Mortgage rates are near record-breaking lows. 

2. Home prices are starting to rebound in many markets across the country. The National Association of REALTORS® reported that home prices in December were 11.5 percent higher than a year earlier.  Prices are rising but remain mostly below 2007 highs, and in many areas, the cost of buying is cheaper than renting

Investors Try Out New Approach

Investors Try Out New Approach
Build to Rent: As the number of foreclosed homes dries up in some markets, some investors are looking elsewhere for properties to turn into rentals. With the rental market still strong, some investors are either buying finished single-family homes that they can use as rentals or even developing vacant lots to turn into rentals from the ground up, Apartment rents have been on the rise, increasing 11.3 percent since 2009, according to Reis Inc. Investors have turned a high number of single-family homes into rentals. As of last year, about 15 million single-family homes nationwide were rentals -- up from 10.8 million in 2005. See Mortgage Rates Reverse Trend, Heading Higher

Singles and First-Timers Squeezed Out

Singles and First-Timers Squeezed Out
The latest research on home buyers from the National Association of REALTORS® shows the effects of tight mortgage lending standards on the market.
The association says that these conditions are keeping qualified buyers, especially singles and first-time buyers, from reaching their dreams.
“Single home buyers have been suppressed for the past three years by restrictive mortgage lending standards, which favor dual-income households who are more likely to have higher credit scores,” says Lawrence Yun, NAR chief economist. He added that “historically, first-time buyers are instrumental in housing recoveries because they help existing home owners sell and make a trade 
See the 10 Best Cities for the Young: Salt Lake City on this list.....

Fannie,Freddie Retain HigherPriced Mortgage Limits

Fannie,Freddie Retain HigherPriced Mortgage Limits
Mortgage giants Fannie Mae and Freddie Mac will continue to fund higher-priced mortgages at current limits at least through the middle of next year, federal regulators announced. 

The Federal Housing Finance Agency, which oversees Fannie and Freddie, was planning to lower limits by the end of the year in a move designed to decrease its role in the market and bring more private capital to the mortgage business. But Ed DeMarco, FHFA acting director, says: 'We are not making a change there in the immediate term.”

In 2008, government-backed mortgage limits were increased from $417,000 to up to $729,750 in some high-cost areas. In 2011, limits were reduced to $625,500 in high-cost areas, but FHA’s limits remain at $729,750. The limits were scheduled to decrease at the end of this year.  iFHFA to Stop 'Forced' Homeowner's Insurance learn more...

New Wave of Delinquencies from ARM Resets Unlikely

New Wave of Delinquencies from ARM Resets Unlikely

Concerns of a new wave of problem loans caused by unsustainable rate resets on adjustable-rate mortgages (ARMs) are largely unfounded, according to Lender Processing Services (LPS).

LPS conducted an in-depth analysis of the outstanding hybrid ARM population and found that the majority—63 percent—have already reset from their initial rates.
Of the remaining 37 percent that have yet to reset, three-fourths were originated in post-crisis years when lending criteria was tighter and most new loans went to borrowers with credit scores of 760 or above—an attribute that LPSsays suggests they are less likely to default in any type of scenario. Learn more ...

Fannie Mae reduces its max LTV to 95

Fannie Mae reduces its max LTV to 95

Does the data support the move? As of November 1, 

Fannie Mae is no longer purchasing loans without minimum down payments of at least 5 percent. Industry experts with the Urban Institute’sHousing Finance Policy Center argue this move is arbitrary and likely to provide little benefit to the GSE or to taxpayers.

Fannie Mae’s decision to lower its maximum threshold for loan-to-value (LTV) ratios from 97 percent to 95 percent follows a similar decision by Freddie Mac a few years ago.
See new rules at our website.

A nation of renters? Not so, Say delinquent borrow

A nation of renters? Not so, Say delinquent borrow

Report after report suggests that Americans have become wary of homeownership and prefer the lack of commitment that often accompanies renting.

But one group who should be rather wary of homeownership says this just isn't the case.

When asked if renting or homeownership is better for building up wealth, 74% of delinquent borrowers sided with owning. Seventy-percent said it was better in terms of their overall tax situation, while 73% said ownership is better than renting when it comes overall financial health. Delinquent borrowers also want to save their homes, but where they are not succeeding is when it comes to refinancing. But aside from that, homeownership remains a dream for most of them even if they are facing a few dark hours in the process of keeping the dream alive. See Mortgage Rates Fallto Lowest Levels Since June:

Home Price Increases Widen in September

Home Price Increases Widen in September
Sales Weaken: After taking a break in the summer, home price growth got back up to strength in September,

DataQuick, a specialist in property information and decisioning solutions, reported price growth “resumed at a rapid rate in September and spread to all” of its 42 reporting counties on a monthly, quarterly, and yearly basis.
Other consequences to look out for: “[C]ontinued single-family rental demand driven by decreases in home affordability, sustained risk of home price corrections and stringent mortgage credit standards, and an increase in purchases by investors” driven by the two preceding factors.
See: 10 Turnaround Towns Leading the Recovery:

Where Are Mortgage Rates Heading in 2014?

Where Are Mortgage Rates Heading in 2014?
Mortgage rates will likely rise above 5 percent in 2014 and average 5.3 percent by the end of 2015, according to the Mortgage Bankers Association’s forecast. 

That would mark a big jump over where mortgage rates stand now. The MBA reported this week that the 30-year fixed-rate mortgage averaged 4.33 percent, the lowest average since June. 

“We are projecting home purchase originations will increase in 2014 due largely to gains in home sales and home prices,” says Brinkmann. “We expect to see a decline in the share of sales paid for with cash, and higher average LTVs on purchase mortgages, due to the rise in home prices.” Investors Still Flooding the National Housing Market: