Why it may be best to buy or sell by year-end

Why it may be best to buy or sell by year-end
Is Buyer Demand Slipping? Home buyer demand is showing signs of cooling this fall, fueled by growing uncertainty in the economy, according to a new report by brokerage Redfin, which analyzes housing market demand based on the brokerage’s home tour and offer data. 

Offers slid 12 percent in September compared to August, reflecting a typical fall season slowdown but also concern over the government shutdown, according to the report. The number of offers made by clients posted its largest monthly drop this year, according to the report. 

The decline in offers from home buyers is in stark contrast to the 4.5 percent increase seen last year during this time, when the housing market was just beginning to gain momentum, the report notes. 

Why it may be best to buy or sell by year-end: On Jan. 1, 2014, a new provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act goes into effect. The “qualified residential mortgage,” or QRM, may have far-reaching effects that will lessen the number of people who ultimately can obtain home loans. Read more...

Home Price Gains to Decelerate in Winter

Home Price Gains to Decelerate in Winter

August marks the 18th consecutive month of rising home prices, according to FNC’s Residential Price Indexreleased Tuesday, indicating an indisputable recovery. However, FNC, a mortgage industry technology provider, is detecting some deceleration in the recovery and declares, “It is clear that the recovery remains uneven across the nation.”

On a monthly basis, prices rose 0.6 percent in August, according to FNC’s composite of 100 large metropolitan areas. On a yearly basis, the increase is 5.3 percent. The monthly gain in August was smaller than the gains accrued over the two previous months.Strategic Defaulters in Fannie and Freddie's Crosshairs: Fannie Mae and Freddie Mac are looking to collect unpaid mortgage debt from “strategic defaulters,” those underwater home owners who skipped out on their mortgages even though they had the ability to pay. If a home is sold at foreclosure but the proceeds don't cover the outstanding balance of the home owner's loan, the mortgage giants can pursue judgments against the home owner forcing him or her to pay the deficiency. Read More...

Shadow Inventory Falls to Lowest Level

Shadow Inventory Falls to Lowest Level

Since August 2008: Overall residential shadow inventory, as of July 2013, was 1.9 million homes, according to CoreLogic. That’s the lowest shadow inventory tally reported since August 2008.

The industry’s current shadow inventory carries a value of $293 billion by CoreLogic’s assessment, down from $380 billion in July 2012.
It represents 3.7 months’ of supply and accounts for 85 percent of the 2.2 million properties that were seriously delinquent, in foreclosure, or bank-owned at July month-end. Overall residential shadow inventory, as of July 2013, was 1.9 million #homes, See the Cheapest Places to Retire:

Mortgage Rates Rise for First Time in 5 Weeks

Mortgage Rates Rise for First Time in 5 Weeks

Mortgage rates were on the rise slightly this week, following more than a month of declines after the Federal Reserve announced it would delay tapering its $85 billion per month bond purchasing program. 

Freddie Mac reports the following national averages with mortgae rates for the week ending Oct. 10. 

NAR on FHFA’s Loan Limits: Don't Drop Them: The National Association of REALTORS® is garnering media attention for its call urging the Federal Housing Finance Agency to delay reducing the loan limits. The Wall Street Journal recently spotlighted NAR’s position on the issue.  Read more...

Buy a Home Now or Pay More Later?

Buy a Home Now or Pay More Later?

Mortgage rates are nearing the 5 percent mark, prompting many home buyers to rush to take advantage of rates while they’re still low. 

“Most people agree it is only a matter of time before rates hit 5 percent,”
“The housing market has clearly turned the corner in most areas. I think a year from now, people will look back and realize that this was a great buying opportunity.”

Some forecasts show rates could edge even higher to 5.5 percent or even 6 percent in 2014. The Federal Reserve has announced that it will soon start tapering its $85 billion monthly bond-purchasing program, which is expected to send mortgage rates rising from recent record lows.  Read more....

Freddie Mac's Plan to Stall Impact of Shutdown

Freddie Mac's Plan to Stall Impact of Shutdown
Second week shutdown, Freddie Mac has issued intermediate guidelines to lending institutions for approving home loans and modifications to keep the housing market from grinding to a halt.

Freddie Mac is allowing lenders to approve mortgages for those borrowers — even in the absence of steady income — assuming they meet other loan requirements and plan to return to work once the government reopens.  

Housing Market Running at 85% of Normal, Pre-Recession Activity: A new index from National Association of Home Builders (NAHB) suggests that about one in seven housing markets have returned to or surpassed their pre-recessionary levels of activity. Read more....

Delinquencies Plummet & Foreclosure Inventory Down

Delinquencies Plummet & Foreclosure Inventory Down

Delinquent mortgages dropped to their lowest level since November 2008 according to recent research.

At the end of August, the company found there were approximately 2.1 million mortgages, or 5.3 percent of all outstanding home loans, in serious delinquency (defined as 90 days or more past due, including those loans in foreclosure or REO). The rate of seriously delinquent mortgages is at its lowest level since December 2008.
Also reported a drop in completed foreclosures in August of 34 percent year-over-year. Foreclosures were only 1.3 percent higher from the previous month. The data shows 48,000 foreclosures were completed in August. Foreclosure Inventory Down 33%