Fixed Rates Soar to Highest Level in a Year

Fixed Rates Soar to Highest Level in a Year

Freddie Mac: Encouraging economic data helped lift fixed mortgage rates to their highest level in the past year this week, according to surveys from Freddie Mac and Bankrate.com.

“Fixed mortgage rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” said Frank Nothaft, VP and chief economist at Freddie Mac.

“Improving economic data may have encouraged those views,” he added, referencing the week’s reports of increased consumer confidence and strong home price gains. Short Sales Losing Favor with Lenders?

Lenders may be less inclined to approve short sales due to rising home prices, according to a new report.

House Flippers Re-Emerge,

House Flippers Re-Emerge,

Looking to Cash In: With rising home prices, investors are eyeing house flipping again as a way to make a profit in real estate.  

Much of the house flipping is centered in California, where prices are on the rise by some of the highest amounts. For example, the number of homes sold in California recently that have been bought and resold within six months has reached its highest level since late 2005, according to PropertyRadar research. About 5 percent of all homes in the state have been flipped this year through April, according to the data.  ‘Flippers’ Get a Break From FHA

Short Sales Replacing Mods as New Norm

Short Sales Replacing Mods as New Norm

Among the available foreclosure prevention tools, short sales are becoming the weapon of choice for servicers while the use of loan modifications has slowed, data from Fitch Ratings revealed.

For example, among bank servicers, the percentage of resolutions in the loan modification category decreased to 26 percent in the last half of 2012 from 57 percent in the first half of 2010, according to Fitch’s latest quarterly index.

Meanwhile, short sales showed significant increases over the last couple of years. In 2012, short sales represented 51 percent of resolutions for bank servicers, up from a low of 20 percent in 2010. For nonbank servicers, short sales grew to 16 percent in 2012, up from 11 percent in 2010. Foreclosure Plummets

67% Of Buyers Believe Market Shifted Toward Seller

67% Of Buyers Believe Market Shifted Toward Seller

Report Finds: As sellers hold their grip on the market, buyers are starting to understand what it’s going to take to stay in the game, according to responses in Redfin’s second-quarter Real-Time Home-Buyer Report.

After speaking at length with the buyers, it was determined that although their understandable frustration concerning the low amount of inventory continues to rise, there is an equal elevation in their individuals awareness and recognition of the seller’s market, as well as an overall willingness to actually pay more out of pocket for purchasing real estate.
The report goes on to predict that the prices of property will only continue to escalate, yet likewise finds that the majority consensus of the concern when it comes to an overall stability in the nation’s economy are actually lessening as times goes on. Read More ....

New-Home Prices Soar, Creating Urgency

New-Home Prices Soar, Creating Urgency

Last month the median price for new homes hit a record high and home sales soared, boosting the new-home sector’s recovery, according to figures released from the U.S. Census Bureau Thursday. The median price of a new home sold in April was $271,600, which was 8.3 percent higher than the previous month and 13.1 percent higher than one year ago, the Census Bureau reported.

May Utah Housing Market Statistics

More Buyers Willing to Make Higher Offers

More Buyers Willing to Make Higher Offers

Home buyers are saying they’re willing to pay more for a residential property due to concerns over low inventory. 

In the second quarter of 2013, 41 percent of buyers said they’re willing to offer more, up from 34 percent in the first quarter, according to a survey of more than 1,300 home buyers in 22 major markets by the real estate brokerage Redfin. 

The number of buyers who say they’re concerned about rising home prices has more than doubled in the past year, according to the survey. Seventy-nine percent of home buyers say they believe prices will increase in the next 12 months—with 23 percent of that group saying by “a lot.”  Read more ..

Fixed Rates Rise Again

Fixed Rates Rise Again

Fixed mortgage rates trended higher for the third consecutive week, according to reports from Freddie Mac and Bankrate.com. 

According to Freddie Mac’s Primary Mortgage Market Survey, the

“Fixed-rates moved up for the third consecutive week, with the average 30-year fixed-rate mortgage about a quarter-percentage point higher than three weeks ago. While this may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high, which should further aid home sales and construction in coming weeks,” See Rates ...

Existing-Home Sales, Prices Jump to Multiyear High

Existing-Home Sales, Prices Jump to Multiyear High

Existing-home sales rose 0.6 percent in April to an annual sales rate of 4.97 million, the highest level since November 2009, the National Association of Realtors reported Wednesday. Economists had expected a 1.6 percent increase to 5.0 million from March’s original report of 4.92 million sales. March sales were adjusted upward to 4.94 million.

The median price of an existing single-family home jumped $8,900 in the month to $192,800, the highest since August 2008.
The inventory of homes for sale rose to 2.16 million—its highest level since last September. The supply of homes for sale rose to 5.2 months, the highest since October. Inventory has been a persistent concern to NAR, which says the low supply of homes for sale has reduced the number of transactions.

Recently, though, inventory has edged up, consistent with the increase in the median price of an existing-home, which has risen in five of the last six months. The number and months supply of home for sale has gone up for three straight months. See video ....

High Sold-to-List Price Ratio

High Sold-to-List Price Ratio Confirms Bidding War Activity 
Last year, some analysts were speculating the large supply of REOs and shadow inventory would keep the market depressed, but instead, the market is dealing with a lack of inventory available for sale, ProTeck Valuation Services noted in its May Home Value Forecast (HVF). 

“[I]n reality the shortage of housing inventory has led buyers to bid more competitively against one another leading to significant home price increases and tighter housing conditions,” said Tom O’Grady, CEO of Pro Teck. “Aside from anecdotal stories, Home Value Forecast shows that one of the most reliable leading indicators to support this theory is the Sold-To- List Price ratio.” Read more ....

Foreclosure Sales Halt

Foreclosure Sales Halt

Wells Fargo and Citigroup have temporarily halted foreclosure sales in several states, taking precautions after a federal regulator released new guidance on minimum standards for foreclosure sales. 

The Office of the Comptroller of the Currency (OCC) recently released the new standards. The OCC’s directive mostly consists of 13 questions banks need to ask themselves before selling a home in foreclosure, such as whether the borrower is protected from foreclosure by bankruptcy or if the borrower is in an active loan modification plan. Read more ...

Case-Shiller Forecasts Waning Price Appreciation

Case-Shiller Forecasts Waning Price Appreciation

With housing prices on the rise across the nation, and double-digit increases in some markets, CoreLogic quashes any fears of another housing bubble forming any time soon. In fact, according to the CoreLogic Case-Shiller Home Price Indexes released Thursday, the rapid gains are not expected to last.

After a 7.3 percent price gain in 2012, the nation’s housing prices will continue to rise over the next five years but at a slower pace, according to Case-Shiller. The indexes forecast a 3.9 percent annual increase through 2017.
Many of the markets that underwent the greatest price depreciation during the housing crisis are now experiencing the greatest price appreciation. For example, home prices in Phoenix rose almost 24 percent year over year as of the fourth quarter of 2012. Read more ....

Builders More Upbeat About New-Home Sales

Builders More Upbeat About New-Home Sales
Builders are feeling more confident about new-home sales, sales expectations for the next six months, and prospective buyer traffic, according to the May reading on the National Association of Home Builders/Wells Fargo Housing Market Index. 

The index—which gauges builders’ sentiment on those three indicators—rose three points to 44 in May. Still, it takes a number over 50 on the index to indicate that more builders view conditions as good rather than poor.

All three indicators posed gains in May, with expectations for future sales reaching 53 on the index—the highest level since February 2007, NAHB reports.  Mortgage Rates Inch Up for Second Week  See Rates...

Buying Beats Renting in 64% of Metros After 3 Year

Buying Beats Renting in 64% of Metros After 3 Year

Zillow:Buying a home is more affordable than renting in nearly two-thirds of metros after three years of paying for a mortgage, according 

For its calculation, Zillow considered costs associated with buying and renting, such as upfront payments, closing costs, insurance, utilities, and maintenance. Then, the online marketplace looked at historic and anticipated home value appreciation rates, rental prices, and rental appreciation rates to determine how many years would need to pass before buying becomes less expensive than renting. Read more....

Price Improvements by Region

Price Improvements by Region

Report Examines:  The recent rebound in residential real estate investment and housing prices is proving the old adage, “Real estate is local.

” While national indexes paint a picture of a recovering housing market, a closer look reveals quite a wide range of activity across the country.

In general, those markets that fared worst during the housing downturn are the ones gaining the most from the recovery, according to CoreLogic’s MarketPulse report released Tuesday. Read more ....

Inventories, Asking Prices Get a Boost

Inventories, Asking Prices Get a Boost
Inventories of homes for sale nationwide increased 4 percent in April, but remain 13.5 percent lower than last year’s inventory levels, according to realtor.com^®’s latest report. 

Listings have dropped over the past two years as banks have slowed down foreclosures, investors have converted homes into the rental market, and would-be sellers have held out for higher prices. Demand has jumped as low mortgage rates have made housing extremely affordable. Read more ....

Freddie Releases New Loan Program Early

Freddie Releases New Loan Program Early

Mortgage giant Freddie Mac announced that it will make a new streamlined loan modification program for delinquent borrowers available now, instead of holding off the launch date to July 1 as originally planned. 

FREDDIE MAC STANDARD MODIFICATION REQUIREMENTS 

Mortgage servicers will be able to offer a streamlined modification to borrowers who are at least 90 days late on their Freddie-owned or guaranteed mortgage. Borrowers cannot be more than 720 days delinquent on their loan, however, to qualify. Also, the loan must be at least a year old. Read More....

Home Prices Jump

Home Prices Jump But Affordability Remains in Buyers 'Favor'

Low mortgage rates and stabilizing incomes are keeping home affordability high and giving home buyers “ample buying power,” according to the National Association of REALTORS®.

The Wall Street Journal highlights the following example on just how affordable housing has become: “Assuming a 5 percent down payment, a 3.5 percent mortgage rate, and 25 percent of a gross income devoted to mortgage payments, a buyer would only need an income of $36,500 to buy a house at the median price. With a 10 percent down payment, the required salary falls to $34,600, and with a 20 percent down payment, it falls to $30,700.”

In the first quarter, the median family income nationwide was $62,200. Read more ....

Sellers: Make a Better Offer, Without Contingencie

Sellers: Make a Better Offer, Without Contingencie

As the inventory of for-sale homes remains at low levels, sellers are getting more comfortable at the bargaining table and telling buyers to cool it with the contingencies. In competitive situations that attract multiple bids, some sellers are even telling buyers they want an offer without mortgage contingencies. 

A mortgage contingency, often included in sales contracts, provides buyers with a safety net of being able to get out of the deal without forfeiting their down payment in case they are unable to obtain financing within a certain timeframe. 

Some sellers are telling buyers they want non-contingent offers — and better yet, make it all-cash too. Read more ...

Mortgage Rates Reverse Course

Mortgage Rates Reverse Course

For the first time in six weeks, fixed-rate mortgages reversed course and climbed higher this week, Freddie Mac reports in its weekly market survey.

'Fixed mortgage rates edged up following a solid employment report for April,” says Frank Nothaft, Freddie Mac’s chief economist. “The economy gained 165,000 new jobs on net last month, more than the market consensus forecast and the largest monthly increase this year.” 

Freddie Mac reports the following national averages with mortgage rates for the week ending May 9:

 See Rates ...

Foreclosure Filings Drop to 74-Month Low

Foreclosure Filings Drop to 74-Month Low

Judicial State Auctions Rise: Foreclosure activity in April fell to a 74-month low across the country, but many judicial states are experiencing rising foreclosures. Furthermore, judicial foreclosure auctions reached a 30-month high, according to RealtyTrac’s April U.S. Foreclosure Market Report.

One in every 905 homes in the country had a foreclosure filing in April, while the total number of filings, which include default notices, scheduled auctions, and bank repossessions, declined 5 percent from March and 23 percent from April 2012.
April’s scheduled judicial foreclosure auctions, which reached their highest level in 30 months, demonstrated a 22 percent monthly increase and a 31 percent yearly increase.
In contrast, non-judicial foreclosure auctions reached an 88-month low, having fallen 43 percent from last April. Read more ....

Home Prices on Path to Stabilization This Year

Home Prices on Path to Stabilization This Year

After coming to a “turning point” last year, the housing market is now stabilizing, according to Clear Capital’smonthly Home Data Index,. This year, Clear Capital expects price gains to slow.

“2013’s forecasted trajectory is one of moderation and stabilization,” according to Clear Capital.
Home prices rose 7.2 percent on an annual basis in April. Last April’s annual price change was a decline of 1.4 percent year-over-year.
However, “market observers shouldn’t be fooled by the large headline numbers,” said Alex Villacorta, director of research and analytics at Clear Capital. Read more ....

Improving Market List Drops Slightly in May

Improving Market List Drops Slightly in May

The Improving Markets Index fell to 258 metros in May from 273 in April, but continues to reflect metros from every state as well as the District of Columbia, according to the National Association of Home Builders and First American. 

The Improving Markets Index identifies the metro areas that have shown improvement in housing permits, employment, and housing prices for at least six consecutive months.

Nineteen metros dropped from May’s index, but NAHB Chief Economist David Crowe says that this is similar to what happened with the index last year, as softer prices are usually seen in the winter months. As this generation begins to plant their roots, numbers show that new construction must increase to supply their future demand for homes. Read more ...

One Fifth of New Homes Are Green

One Fifth of New Homes Are Green
McGraw Hill Construction says 20 percent of homes built last year were green, and that figure is slated to rise to between 29 percent and 38 percent by 2016. 
Most large builders have made energy-efficient home construction a standard practice, and federal tax credits for such components as insulation and geothermal heat pumps have helped green housing go mainstream.
Garbett Homes in Utah Green + Fresh
Nexus Energy Homes COO Bruce McIntosh says green homes generally cost 5 to 10 percent more than conventional dwellings, but material and construction costs are on the decline.  Low-energy homes are gaining in popularity as a way to cut utility bills, address concerns about future energy costs, and become independent from the power grid.  Learn more ...

March Pending Home Sales Improve but Overall Pace

March Pending Home Sales Improve but Overall Pace
WASHINGTON (April 29, 2013) - Pending home sales increased in March and remain above year-ago levels, but contract activity in recent months shows only modest movement, according to the National Association of Realtors^®.
The Pending Home Sales Index,^* a forward-looking indicator based on contract signings, rose 1.5 percent to 105.7 in March from a downwardly revised 104.1 in February, and is 7.0 percent above March 2012 when it was 98.8. Pending sales have been above year-ago levels for the past 23 months; the data reflect contracts but not closings.
Lawrence Yun , NAR chief economist, said the market appears to be leveling off. 'Contract activity has been in a narrow range in recent months, not from a pause in demand but because of limited supply. Little movement is expected in near-term sales closings, but they should edge up modestly as the year progresses,' he said. 'Job additions and rising household wealth will continue to support housing demand.' Read more ...

Homes Near Open Spaces Command Big Bucks

Homes Near Open Spaces Command Big Bucks
The research shows that home buyers are willing to pay a premium to live near such open, undeveloped tracts. Sarah Reed, co-author of the study, and her colleagues compared 2,222 home sales in five counties throughout Colorado between 1998 to 2011.

"You can walk out your back door and start jogging on a trail that takes you through miles and miles of forest preserves,"

The conservation developments designated an average 64 percent of land as open space, while traditional rural subdivisions allocated just 4.9 percent. The study found that homes in conservation developments sold for 29 percent more than properties located in conventional residential projects.
Furthermore, increasing lot size in an undesignated conservation development hiked the market price by 38 cents per square foot, the report found. In nonconservation developments, a larger lot size translated to just 9 cents per square foot. The study was funded by the National Association of REALTORS® and CSU's School of Global Environmental Sustainability. Watch the Video ...

Housing Price Surge

Housing Price Surge
'Simply Supply and Demand' Home prices are rising at the fastest rate in years, with some areas even seeing double-digit increases.
'Nobody that I'm aware of anticipated the kind of price growth that we've had,' says Budge Huskey, chief executive of Coldwell Banker Real Estate LLC. 'It's simple supply and demand.'
“Supplies have dwindled as banks have pushed fewer homes through foreclosure and because many home owners are either unable or unwilling to sell due to a variety of factors related to the housing-crash hangover,” Mortgage Rates Keep Pushing Lower

Completed Foreclosures Rise in March

Completed Foreclosures Rise in March
Foreclosure Inventory Falls: The number of residential properties lost to foreclosure increased from February to March, while foreclosure inventory was down from month and year ago levels, according to data from CoreLogic. 

In its most recent foreclosure report, the data provider reported 55,000 homes were lost to foreclosure in March, up 6 percent from 52,000 completed foreclosures in February. Still, completed foreclosures stood 16 percent lower compared to the year ago level when 66,000 homes were lost to the process.
“In March, completed foreclosures were down 52 percent from the peak in 2010, and almost all of the top 100 major metropolitan areas have declining foreclosure rates,” said Dr. Mark Fleming, chief economist. Read more ....

HUD-Owned Homes Expected to Surge

HUD-Owned Homes Expected to Surge
The U.S. Department of Housing and Urban Development is reportedly going to be releasing more of its homes to the market, which could be welcome news to buyers who have faced slim pickings in for-sale inventories. 

Over the next two years, experts predict that HUD homes on the market will increase significantly as lenders work through the backlogs of foreclosures and foreclosure reviews.
“The inventory is there, [it’s] just not being released during the banks/servicers review of the loan/mortgage documents,” says Nat Genis, a HUD listing broker in Riverside County, Calif., which is already seeing an increase in HUD-owned homes.Read more ....