DAILY MORTGAGE INTEREST RATE LOCK ADVISORY
This page was updated February 7, 2012, 6:30 AM PST
Lock Advice is Updated Several Times Daily
7 day Mortgage Interest Rate lock or Float Advice: LOCK
Mortgage Points based on 3.5% Mortgage Backed Securities are up 0.21 point. If you have an unlocked loan closing in the next seven days, today would be a good day to lock.
30 Day Mortgage Interest Rate Lock or Float Advice: LOCK
The Mortgage Backed Securities (MBS) market way overbought and in this uncertain market the best long term advice is to lock at historic low rates.
MORTGAGE MARKET INDICATORS
- National Average Fixed Rate Mortgage 3.87%
- MBS (3.5%) - 103.59, High: 104.88, Low: 103.59
- DJI Stocks currently $12,871.80, Up $26.67, Change 0.207%
- Asian & European Stock Market Indexes Down -0.092%
- Nymex Crude Oil Currently $98.64 Up $1.73
- Gold 1 Once - Bid: 1,738.50
MORTGAGE NEWS BRIEFS
Family, Hit Man Receive Hefty Sentences for Fraud
A federal court sentenced three family members to prison Monday for their role in $11 million in mortgage fraud, just as another court upped the sentence for a onetime company executive-turned-hit man currently serving time. » Read More
The Top 30 Brokers in CA by Number Employed: 2011 First Tuesday
Housing Crisis to End in 2012 as Banks Loosen Credit Standards
Bu Krista Franks
Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.Read More DSNews
U.S. Jobless Rate Falls to 8.3 Percent, a 3-Year Low
Joan Barnett Lee
The United States economy gained momentum in January, as employers add 243,000 jobs, the second straight month of better-than-expected gains. Read More New York Times
Politicians and Common Sense is an Oxymoron; Who Works for Peanuts?
Senators Introduce Bill to Pay GSE Execs Federal Salaries
Ryan Schuette
Lawmakers from both sides of the aisle introduced legislation Thursday to curb multibillion-dollar bonuses for senior-level executives with Fannie Mae and Freddie Mac. Read More MReport
Just More Politics or Something Real?
Obama Unveils New Refi Plan, Homeowner 'Bill of Rights'
The Obama administration rolled out an ambitious package of benefits and structural changes Wednesday for homeowners who want to refinance their loans. The plan would cost anywhere from $5 billion to $10 billion and pay for itself with fees exacted from financial institutions. If it makes it into law, the bill would significantly expand refinancing opportunities for underwater borrowers, shift appraisal responsibilities in distressed neighborhoods to an automated system under the GSEs, and offer new servicing reforms. » Read More MReport
As might be expected, the American Bankers Association not thrilled with a new White House plan to tax banks to pay for a new government refinancing program. "The refinancing proposal, unfortunately, includes a tax on banks, which will directly reduce lending capacity and banks' ability to lend up to $100 billion," said ABA president and chief executive Frank Keating.
Keating also noted the "uncoordinated and ever-changing government programs" are creating uncertainty in the marketplace and reducing the availability of mortgage credit.
CitiMortgage Kisses Wholesale Goodbye
CitiMortgage, the nation's sixth largest residential wholesaler, Wednesday afternoon informed its loan brokers that it will cease table funding loans next week as it prepares to exit the wholesale channel.
U.S. Private-Sector Employment Increased by 170,000 Jobs in January,
Private-sector employment increased by 170,000 from December to January on a seasonally adjusted basis, according to the latest ADP National Employment Report(R) released today Read More Wall Street Journal
Home Prices Tumble By Mia Lamar
U.S. home prices fell again in November, according to the Standard & Poor's Case-Shiller indexes, which reported Tuesday that the majority of metropolitan markets posted declines. Read More Wall Street Journal
FHA: Learn About FHA Energy Efficient Mortgages
Energy Efficient Mortgage (EEM) video. This video explains how to obtain the "present value of the energy saved." This training course provides real estate professionals, housing counselors, and lenders with an overview of the EEM process. Click for Video
This Week; is employment week with a lot of key data mixed in. The interest rate markets should start the week with additional improvement after the Fed extended the time that it will keep rates low clear through 2014. The stock market is likely to continue its sag after the Fed comments last week that the economy is uncomfortably weak. The Fed revising its estimates for growth again last week took some of the wind out of the equity market optimism that was gaining momentum. Last week’s intimal report on Q4 GDP was weaker that was thought, adding to the drag for equities and supporting the bond and mortgage markets
FHA Is Considering Reducing Seller Concessions
In a separate Federal Register notice to be published soon, the FHA will propose to reduce the maximum allowable seller concession from its current level to one more in line with industry norms. The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. The revised proposal reflects public comments received on an earlier proposal published in a Federal Register notice on July, 15, 2010. The revised proposal calls for a 30 day comment period. Following an analysis of the public comments received, a final rule will be issued.
Bernanke Stays Easy: Fed To Keep Rates Low Through Late 2014
The Federal Reserve took no action on interest rates or further bond purchases Wednesday, but extended its runway for exceptionally low rates by at least a year to late 2014. Read More Forbes
Five Top Banks offer $25 Billion to Troubled Homeowners.
January 23rd, 2012. The nation's five largest mortgage lenders have offered a draft settlement to pay out as much as $25 billion to cover new terms for homeowners driven out by foreclosure. Read More Fox News
Investors buying with cash pressure home prices
by KERRI PANCHUK Monday, January 23rd, 2012
Investors are gobbling up residential real estate with cash, pushing national home prices lower, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The overall proportion of cash buyers in the housing market soared to a record 33.2%, compared to 29.6% a year earlier. Read More HousingWire
Mortgage Rates Reach New All-Time Lows. Again
Interest rates for mortgage loans plunged to new lows Thursday, as debt crises in Europe continued to weigh heavily on investors. Finance Web site Bankrate.com and mortgage company Freddie Mac released separate surveys signaling all-time lows for mortgage rates. For Freddie, the 30-year fixed-rate loan fell to 3.88 percent, down from 3.89 percent last week. Read More MReport
Will Obama Slam the Mortgage Industry Yet Again?
Paul Muolo
Yesterday news broke from HUD secretary Shaun Donovan that a robosigning deal was imminent. Today, we learn that maybe a deal isn't as close as Donovan portrayed. Then again, the 'State of the Union' address is next week and there is some talk that President Obama wants to mention the robo settlement using the speech as yet another opportunity to bash the mortgage banking industry Read More National Mortgage News
Housing starts fall 4.1% in December
by Jason Philyaw
Housing starts fell 4.1% in December, according to Commerce Department data, following a big increase the prior month. Read More HousingWire
Countrywide VIP mortgage program investigation goes dark
An investigation by Rep. Darrell Issa, R-Calif., into the Countrywide VIP loan program that allegedly gave connected policymakers in Washington sweetened mortgages has become increasingly hushed in recent weeks. The "Friends of Angelo" investigation has been waged over three years now. Previous subpoenaed information from members of [...]Read More HousingWire
Huntsman's Departure Highlights Politics of Housing Finance
By: Ryan Schuette
Not unlike his fellow candidates – or the incumbent himself – Huntsman left out any mention of housing finance reform and homeowners as issues for voters in the 2012 general election. Read More MReport
NAHB: List of Improving Housing Markets Nearly Doubles in January
A complete list of all 76 metropolitan areas currently on the IMI is available at: www.nahb.org/imi. The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for ... Read More Huntington News
Home Sales, Housing Markets Will Lift in 2012: Fannie Mae
The economy will drift upward in 2012 as incremental changes take place in the housing market, with a divisive and uncertain policy environment the darkest cloud on the horizon, Fannie Mae said in an economic outlook Friday. Read More MReport
Mortgage Rates Set Record Lows as Europe Teeters
European debt crises once more pushed interest rates for mortgage loans to new lows across the board, even while the U.S. economy picked up steam around much of the country. » Read More MReport
Foreclosures drop to lowest level since 2007
Banks filed foreclosures on roughly 205,000 homes in December, the lowest monthly total since November 2007, according to RealtyTrac. Read More HousingWire
The morality of strategic default: businesses vs. homeowners
By Kelli Galippo •
This article discusses the purported moral implications of a homeowner’s decision to strategically default and why no such implications exist for a strategically defaulting business. Is a strategic default un-American? Read More in First Tuesday
Zillow Sees New Record Lows for Mortgage Rates
By Ryan Schuette
Interest rates for the benchmark 30-year fixed-rate mortgage smashed new records for Zillow, which reported current rates falling as low as 3.71 percent, the lowest in survey history for the real estate Web site. Read More MReport
Americans Feel More Confident About Housing
Consumer sentiment climbed higher last month despite historically low conditions, with Americans by and large feeling more optimistic about housing, according to Fannie Mae. » Read More MReport
Pending Home Sales Highest in Over a Year-and-a-Half
By: Carrie Bay
Pending home sales continued to rise in November, reaching their highest level in 19 months, the National Association of Realtors (NAR) reported late last week. Read More in Linkedin
Markets flat as Europe woes balanced by recovering US
Overnight, US markets finished flat to marginally higher as investors continued to balance ongoing European issues against US economic data, confirming that the world’s biggest economy is on the slow path to recovery. National Business Review
December employment report was stronger than consensus.
Dec. unemployment expected at 8.7% fell to 8.5%, the lowest level since Feb 2009 when it was 8.3%. Non-farm jobs expected +155K, jumped to 200K; non-farm private jobs thought to be 160K increased 212K. Yesterday ADP reported 325K private jobs. Dec average hourly earnings, as usual, up 0.2%.
LPS reports mortgage delinquencies are going nowhere by Jacob Gaffney
The latest mortgage monitor from Lender Processing Services shows the level of homeowners 90 days or more behind on their house payments stayed essentially flat over the second half of 2011. Read More in Housing Wire
Bernanke calls for nationwide REO rental program
The government should consider helping the nation's vacant, unsold stock of foreclosed properties by supporting initiatives to occupy. Federal Reserve Chairman Ben Bernanke believes that one aspect should be a government support program that allows renters to move into those houses. In a letter Wednesday to ranking members on the House Committee of Financial Services, Reps. Spencer [...]Read More Mortgage Wire
Tax Cut Extension Now Officially Raising Mortgage Rates
They Did It Again: Permanent Rate Increase pays for Temporary Tax Reduction
As part of the temporary resolution to the recent battle over the Tax Cut Extension that took place in the last weeks of December, Congress decided that mortgage borrowers should foot part of the bill. Technically, Congress increased the "Guaranty Fees" that Fannie Mae and Freddie Mac charge to lenders that securitize MBS (Mortgage-Backed-Securities) with the Agencies, but ultimately, this cost must either be absorbed by lenders, passed on to consumers, or some combination of the two. Read More Mortgage News Daily.
Construction Spending Climbed 1.2% in November
Homebuilders spent more on construction in November last year than in any month before August, with figures for new residences climbing by 1.2 percent above October estimates. Fielding the numbers Tuesday, the Commerce Department reported that construction spending overall hovered at around $807.1 billion. Single-family home construction moved forward at a steady clip by rising 1.5 percent, with nonresidential construction staying nearly the same as in October with about $278 billion or so in reported expenditures. » Read More MReport
Mortgage Rates Maintain Record Low Range to Begin 2012
Mortgage Rates are slightly higher to begin the new year, but Best-Execution levels remain intact at 3.875%. That being the case, most loan scenarios quoted last week would have the same interest rate, but simply require slightly higher closing costs. Read More in Mortgage News Daily
Oil prices spike 2% on Iran supply threats
Iran's missile launches have heightened concerns over its threat to close the Strait of Hormuz, leading to a rise in oil prices. Oil prices surged more than 2% for the second time in a week on Tuesday, fueled by continued anxiety over Iran's growing threat to shut down the Strait of Hormuz after the Iranian military launched a missile test. Read More in CNN Money
This week; interest rates are likely to increase a little after two weeks of improvement mostly on safety moves over the holidays. Nothing out of Europe in that time frame, now that the holidays and New year are behind look for renewed comments out of the region. Europe's financial system woes and debt fears still have not been resolved and likely won't be fro many months. The situation has plagued global markets for months; concerns of bank failure contagion and the potential of dragging the US and other economies back into recession have kept US interest rates low and the equity markets quite volatile. Those factors may be lessening, markets have become less fearful of recession and financial system contagion.
The final day of the year; nothing of substance to think about. No news of consequence out of Europe, the various markets in Europe are slightly better today. At 9:00 this morning the US stock indexes traded fractionally lower, the 10 yr note +3/32 and mortgages at 9:00 +5/32 (.15 bp).
No economic data today; trading will be thin, by 1:00 most will have left the area. Markets open all day
Signs show strategic default on the decline
New Survey Finds 59% of Homeowners Would Not Consider Strategic Default
RealtyTrac is calling 2011 the year of foreclosure litigation, strategic default, failing foreclosure law firms and shadow inventory.
It also was a year of infighting between regulators, underwater mortgages and the year when Mortgage Electronic Registration Systems faced suits over everything from its business model to its assignment procedures. Read More Housing Wire
FHA Ant-flip Waiver Extended; Unintended Consequences of G-fee Hike; Tax Deductible MI Ending?
Dec 28 2011, 8:39AM
FHA lenders had reason for cheer and mirth at the end of last week. "In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting FHA Commissioner Carol Galante will extend FHA's temporary waiver of the anti-flipping regulations." With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days, but this rule is waived through December 31, 2012 Read More Mortgage News Daily
The Week Ahead: Low Volume, Limited Data, Light Participation, and Holiday-Shortened
Dec 27 2011, 8:24AM
Last week saw a steep sell-off in bond markets as low volume and a limited amount of participation paved the way for domination by whichever side of the trade showed up in greater numbers. It turned out to be "the sellers" leading up to the Christmas Holiday in the US, but as we said then and will continue to say this week, we can't really read much into trading levels and ostensible directional sentiment based on this year-end, illiquid trading. Read More Mortgage News Daily
3 tips for staging your home to sell- Decluttering has financial upside
By Dian Hymer,
Today's buyers are looking for turnkey homes. That is, they want to move right in without having to do a lot of work. Buyers with busy lifestyles pay a premium for listings that are in prime condition. Staging can make the difference between a listing selling or not, the time it takes to sell, and the ultimate sale price Read More Inman News
Study Shows Enduring Rise in Consumer Sentiment
Consumer sentiment is on the uptick, at least according to a new index released by Thomson Reuters/University of Michigan. During the month of December, U.S. consumers showed a 2.2-point increase in positive economic sentiment, representing the highest recording since June of this year. The index's mid-month evaluation of consumers' attitudes rang in at 69.9, and the current figure demonstrates the fourth consecutive month of growth. » Read More MReport
Report: Home Buyers are In, Sellers are Out
Dec 21 2011
The Mortgage Bankers Association (MBA) has demonstrated again that the public's perception of the real estate market depends on which side of the closing table they plan to sit.
A study entitled "The Great Recession and Attitudes Toward Homebuying" sponsored by MBA's Research Institute for Housing America (RIHA) concluded that prospective homebuyers believe now is a good time to buy, given today's low home prices and low mortgage interest rates, but potential sellers are nearly unanimous in reporting that it is not a good time to sell a home, citing difficulty in finding buyers at desired sales prices Read More in Mortgage News Daily
What's Behind the Upward Trend in Housing Activity?
December 21, 2011 5:53 AM EST
Housing starts rose much more than expected during November, as unseasonably warm weather allowed builders to begin work on more projects than they usually do in November. Read more International Business Times
Housing Starts Strongest in Nearly Two Years
12/20/2011 By: Ryan Schuette
A pickup in job growth and record-low mortgage rates helped fast-track housing starts to their strongest performance in nearly two years in November, with rental property construction ahead of single-family home starts. Read More MReport
7 Things Highly Productive People Do
You have more important things to focus on than, um, focusing. Get back on track with these tips.
You probably don’t want to admit it but you love distractions. In fact, just like monkeys, you get a shot of dopamine every time something pulls you in another direction. Why do you think you check your email so much? Read more in Linkedin
Mortgage Fees Would Rise Under Payroll Tax Cut Deal
Homebuyers, beware.
In exchange for a two-month tax cut, the Senate on Saturday approved a permanent increase in fees attached to mortgages backed by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA).
The fee hike would apply to new mortgages and new refinances, and would last for the life of the loans Read More Linkedin
Next Week Ahead: Housing and More Europe Watching
Written By Dunstan Prial
Housing data will dominate the economic reports released next week ahead of the Christmas holiday.
The National Association of Home Builders’ housing market index is out on Monday and is used as a gauge of home buying sentiment. The index isn’t expected to move from its November level.
The Commerce Department on Tuesday will issue its report on housing starts and permits. That number also isn’t expected to move much from November. On Thursday the Federal Housing Finance Agency releases its home price index.
Reports on existing home sales and new homes sales are due Wednesday and Friday, respectively. Read More Fox Business News
Mortgage Rates Hit Record Lows. Again
Lack of action from the Fed on monetary policy, wrangling in the nation’s Capitol, and ongoing problems overseas helped push mortgage rates to new record lows this week. Finance Web site Bankrate.com recorded an all-time low for the 30-year fixed-rate mortgage, which slammed into 4.19 percent, down from 4.24 percent. Mortgage giant Freddie Mac countered with rates for the benchmark loan that again fell to 3.94 percent, down from 3.99 percent from the week before. » Read More MReport
California Leads U.S. in Mortgage Fraud
California tops a list of states for mortgage fraud activity, as the state’s courts pursue more cases against alleged frausters, MortgageDaily.com found in an index it released Wednesday. The Web site documented activity in FraudBlogger.com, a mortgage fraud blog. While California claimed the top spot, New York and Florida also found themselves perched considerably high on the index, followed shortly by South Carolina and Minnesota. New York ranked second by dollar volume in mortgage fraud at $199,600,000. » Read More HousingWire
Mortgage Applications Top Off at 4.1%: MBA
Mortgage application volume leapt to 4.1 percent from the week before on the strength of a boom in refinance applications, according to the Mortgage Bankers Association. The trade group released its data in a Weekly Mortgage Applications Survey for the week. The MBA’s Market Composite Index noted a 4.2-percent increase on a seasonally unadjusted basis from the week before, with 9.3 percent for the Refinance Index and 8.2 percent in declines for the seasonally adjusted Purchase Index. » Read More HousingWire
The Day Ahead: Light Data and 3rd Auction of the Week
by Matthew Graham Dec 14 2011, 5:36AM PST
After an extremely quiet overnight session, domestic bond markets are beginning the day in generally the same territory as yesterday's close. Fannie 3.5's are unchanged, as are 10yr yields. Stock futures are within a point of their 4pm levels from yesterday as well. We rarely see all 3 of these markets pull this off, and on such occasions, there's a chance that the 3 instances of "unchanged" are merely serendipitous stopping points after a choppy overnight session. Read more in Mortgage News Daily.
Treasuries and MBS Extend Rally Following FOMC Statement
Today's impressive 10yr Treasury Note Auction was the key component in a rally that has taken 10yr yields from one side of their recent range to the other in a matter of hours. The essentially unchanged FOMC Statement was like the 3rd base coach waving in runners (MBS and longer-dated Treasuries) who already had an easy standing triple after the auction. The following video clip from MBS live clearly shows the biggest moves of the day just after the 1pm auction followed by a slight extension of the... Read more in Mortgage News Daily
Broker Market Share Increases; Las Vegas' Foreclosed-upon Property Law; Mortgage AE jobs
Some companies in the industry continue to expand, some larger than others. TMSFunding Wholesale Lending (part of Total Mortgage Services - headquartered in Connecticut) is seeking wholesale AE's in 21 states ranging from California to Maine through North Carolina Read more in Mortgage News Daily
Barclays analyst sees housing rebound coming in 2012
by Kerry Panchuk
Barclays Capital analyst Stephen Kim predicts a housing recovery buoyed by improving jobs numbers and the fact prices for nondistressed homes will have stabilized without government support. Read more in Housing Wire
Home Prices Rise 0.3% Quarterly Amid Market Changes
Home prices dithered quarter-over-quarter, rising only by 0.3 percent as events in the broader economy, nationally and globally, helped shape housing markets. Clear Capital released the Home Data Index Thursday, tracking movement in home prices on both a regional and national basis. Nationally, home prices fluctuated year-over-year by falling 2.2 percent, a marginal improvement over 2.8-percent declines seen over the last 14 consecutive months. » Read More in MReport
EU leaders' latest agreement still leaves unfinished work
By Paul Ames, Special for USA TODAY
BRUSSELS, Belgium–After all the hype about the do-or-die talks to save the euro, there was a strange absence of urgency about the latest summit of European Union leaders.
The two-day meeting that ended Friday produced no silver bullet to end the euro-crisis and left out some critical details that may require future summits to resolve. Read more in USA Today
November Survey Shows Consumer Sentiment Stabilizing
Results from Fannie Mae's November National Housing Survey revealed that consumer sentiment is not rising alongside recent positive economic news. Fannie's study showed that most borrowers are adopting a wait and see approach to 2012, despite accompanying findings that indicated consumers anticipate a future rise in home pricing for the first time in six months. Generally, Fannie's survey demonstrated that consumer sentiment is stabilizing. » Read More at MReport
Mortgage Applications Jump 12.8% on Low Rates
Low interest rates for mortgage loans drove up mortgage application volume 12.8 percent on a seasonally adjusted basis from the week before. The Mortgage Bankers Association reported the latest figures in a weekly survey released Wednesday. Read More at MReport
First American and NAHB add more housing markets to improvement index
by Justin T. Hilley
The number of improving housing markets expanded for a fourth consecutive month, according to the National Association of Home Builders/First American Improving Markets Index. Read More in HousingWire
Stocks May Continue To Show A Lack Of Direction (including MBS)
12/7/11: 6:00 AM With traders continuing to focus on the latest developments in Europe, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to another flat open for the markets, with the Dow futures down by just 4 points. Read more in RTTNews
Rates on ARM loans set new lows
Adjustable-rate mortgage loans hit new lows this week and fixed-rate mortgages remained near historic lows for a fifth consecutive week, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey Read more In InmanNews
Squatters claim more than $8 million worth of Texas properties
While county officials were asleep at the wheel, Tarrant County, TX became a magnet this year for an odd assortment of squatters claiming other people's houses all over the area. Read more in Star Telegram
This Week; it will continue to be on what happens in Europe with the debt issues. It is not going to fall off the front page for out markets for many months; on Friday the leaders in Europe are scheduled to meet. Markets are hoping there will be some kind of plan that emerges to deal with the debts of Spain and Italy but after two years of trying it is a leap of faith to expect anything substantive coming from the meeting. Not much in the way of key economic readings this week; Monday the Nov ISM services sector index and weekly jobless claims on Friday are the only serious data points. David Shirmeryer - Rate Alert.
U.S. unemployment rate falls to 8.6%, country adds 120,000 jobs
by Kerry Panchuk
The United States added 120,000 jobs in the month of November, pushing the unemployment rate down 0.4 percentage points to 8.6%, a government report said Friday. read more in HousingWire
Small Originators Filling Footprint of Rivals
Smaller mortgage originators are stepping up to the plate to make loans as larger lenders - encumbered by mounting litigation and repurchase claims - pull back from the servicing sector, according to a report released Thursday. Paul Miller, a financial analyst with FBR Capital Markets, based conclusions from the report on quarterly shares of market activity. He credited the retreat by larger lenders for reasons why rivals including mortgage brokers have more than doubled their respective footprints in the mortgage market by the third quarter this year.
Things are not as bad as the media claims!
Watch video from BrokerKnowledge
Fed's Beige Report Sees Mixed Results for Housing
By Ryan Schuette | 11/30/2011
The same day it made public a campaign by central banks to shore up global liquidity, the Federal Reserve released the Beige Report Wednesday, describing a stable national economy eclipsed by low consumer confidence and a housing market defined by still-strong interest in rental properties. The central bank releases a Beige Report that tracks anecdotal reports across the nation’s 12 districts. With lending largely on the rise, residential and commercial real estate activity languished in the doldrums. Read More MReport
Negative equity levels dip, California drops out of top five:
by Jacob Gaffney
Fewer Americans were upside down on their homes — owing more on their mortgages than what their homes are worth — in the third quarter than in the second quarter, according to a report released Tuesday by CoreLogic. Read more in HousingWire
Take advantage of expiring tax deductions
By Stephen Fishman,
There are several tax credits and deductions set to expire at the end of the year, and given the federal deficit problem, there's a good chance they won't be extended. If you want to take advantage of them, you need to act before Jan. 1, 2012. read more in Linkedin
October Home Sales Spike by 8.9% From Last Year
New single-family home sales climbed to a seasonally adjusted annual 307,000 over October, 8.9 percent more than those figures estimated over the same time last year. The Commerce Department yielded the data Monday from new residential sales, which it collected and released via the Census Bureau and HUD. Sales for single-family homes meanwhile crawled above revised September rates of 303,000 by 1.3 percent. Data showed that median sales prices for new homes sold over October this year hovered at about $212,300. » Read More MReport
Frank Retires, Leaving Namesake Law With Uncertain Future
Rep. Barney Frank, a liberal icon on Capitol Hill and co-author of the financial reform law that bears his name, announced that he will not seek reelection Monday. A newly redistricted area of Massachusetts - which he represented for 40 years - adds less than half a million new constituents and straddles an area with which he is unfamiliar, according to Frank. He pledged to continue his public advocacy efforts from outside the Beltway and finish his term in office. Analysts say his departure makes repeal more likely for the Dodd-Frank Act. »Read More MReport
The Week Ahead: Month-End, EU Optimism, and Jobs Report
Here's a look at what's moving markets as we begin a new week, as well as a snapshot of MBS and Treasury levels from MBS Live:
MBS and Treasuries Significantly Weaker on Italian Rescue Hopes read more in Mortgage News Daily
Banks chip away at REO inventory
The inventory of foreclosures held by private banks dropped for the fourth straight quarter to $50.4 billion worth of properties at Sept. 30, according to the Federal Deposit Insurance Corp. The REO level at the end of the third quarter is down 1.5% from $51.3 billion the previous quarter and 5% lower than $53.1 Read More in Housing Wire
Existing-Home Sales Rise 13.5% Year-Over-Year: NAR
Low-balling appraisals, job loss, and denials for mortgage applications helped scuttle closed contracts over October, which crept forward by a seasonally adjusted 13.5 percent more than figures seen for the same month last year, according to the National Association of Realtors. The trade group reported closed sales for single-family homes, town homes, and condominiums rising to a seasonally adjusted annual rate of 4.97 million over October, down from revisions for 4.90 million over September. » Read More in MReport
Government’s role in housing finance a difficult balance
It’s a rare area of agreement between Republicans and the Obama administration: The government should reduce its outsize role in making sure that people can buy homes. And yet, in the past three months, these officials and others in Washington have taken steps that expand the government’s support...Read More in Washington Post»
Botched appraisals could torpedo real estate transactions
By Kenneth R. Harney November 20, 2011
Agents, builders and sellers say market conditions, plus changes in federal rules that encourage banks to use in-house or affiliated appraisal management companies, are magnifying disagreements over real estate values.
How do you fight back when an appraiser — often from another city working for a low fee on behalf of a big bank — wrecks your sale, purchase or refinancing with a low-ball valuation? Read More In LA Times
It's Official: the President signed the FHA Loan Limit Hike
President Obama signed the combined Transportation, Housing and Agriculture minibus measure today
Mortgage brokers soon will able to originate Federal Housing Administration loans of up to $729,750 in high cost areas thanks to Congress, which passed a "minibus" appropriations bill Thursday night.
But Fannie Mae and Freddie Mac lenders will be stuck at the lower $625,500 limit.
Europe Debt Crisis Keeps Mortgage Rates at Record Lows
By: Ryan Schuette
Mortgage rates ran a tepid streak started three weeks ago by hovering at around 4 percent this week, according to Freddie Mac, largely because investors continue to flee European sovereign bonds for the safe haven of U.S. Treasury debt Read More in MReport
Homebuilder Confidence Highest Since 2010
By Ryan Schuette
Homebuilder confidence shot up over November, revisiting a high previously seen in May 2010, according to a recent index. The National Association of Home Builders released a monthly housing market index in association with Wells Fargo that tracks homebuilder sentiment about the market by quantifying it on a 100-point index. Read More in MReport
Extended FHA Loan Limits Are Headed to the Floor for Consideration
Last night the House Appropriations Committee posted a Conference Report to fund the Dept. of Housing and Urban Development. Included in this report is a modification of the Amendment added by Senators Menendez and Isakson during Senate debate on this package in October. The original amendment extended the expired loan limits for the GSEs and FHA through the end of 2013. The language now extends the expired loan limits ONLY for the FHA through 2013. It does NOT extend the loan limits for Fannie Mae and Freddie Mac.
Where is the Line?
By Tony Cannon
How would you like to own a Lexus for the price of a Toyota, an Acura for the price of a Honda or a Cadillac for the price of a Chevrolet? That is what we’re talking about, home prices reduced by levels many will never see again in their lifetimes. How about owning a Rolls Royce for what you would pay for a Mercedes? These are the price reductions we’re talking about. Home prices combined with historically low interest rates make this the best time we may ever see to buy a home. Read More at ActiveRain
6 Must-Haves for Mortgage Approval
By Dian Hymer, Note: author is referencing Conventional Loans
Low interest rates increase affordability and should make it easier for buyers to qualify. Yet stories of buyers waiting months to gain loan approval and home purchase transactions not closing on time due to lender's strict underwriting are all too common. Read More at LinkedIn
Condo associations struggle to meet stricter FHA guidelines
by Andrew Scoggin
Time is up for many condo associations to benefit from borrowers using mortgages insured by the Federal Housing Administration. Fewer than 10% of the nation's condominiums received recertification nearly two years after a change in requirements. Read More at HousingWire
Mortgage Rates Fall Below 4% for Second Time: Freddie Mac
Ongoing trouble in Europe meshed with low home prices to keep a heel on mortgage rates this week, with Freddie Mac offering up news that interest rates for loans fell below 4 percent for the second time this year. The GSE released a weekly survey alongside finance Web site Bankrate.com, which disagreed by reporting that mortgage rates climbed this week. For Freddie, rates for the benchmark 30-year loan fell to 3.99 percent, down one percentage point from last week. Bankrate.com said that the fixed-rate mortgage went up to 4.25 percent. » Read More at MReport
NAR Reports Increased Home Sales, but Prices Drop
According to the National Association of Realtors® (NAR) home sales rose in every state during the third quarter compared to the same period one year earlier but prices continued to decline. The median price of a single family home declined from the third quarter of 2010 in 111 of the 150 metropolitan statistical areas (MSAs) tracked by the Association and rose in 39. In the second quarter 41 MSAs had annual price gains. Read More in Mortgage World Daily
Mortgage applications jump 10.3% as interest rates decline
by Kerry Panchuk
The Mortgage Bankers Association said mortgage applications increased 10.3% this past week as more homeowners refinanced existing mortgages or took advantage of lower interest rates to buy homes. Read More in Housing Wire
Furor Mounts Over $13M in GSE Exec Bonuses
Fannie Mae and Freddie Mac remain under scrutiny in the wake of large salaries and bonuses for their executives, as lawmakers from both major parties mount a rare joint effort to criticize the GSEs and their federal regulator. No less than 60 senators a total of 35 Republicans and 25 Democrats crossed the aisle to circulate a letter Friday that denounced the Federal Housing Finance Agency for signing off on $12.79 million in bonuses for ten executives with the GSEs. Furor over the bonuses follows a string of changes for Freddie Mac. » Read More in MReport
BofA pays $1.3 billion to Fannie, Freddie for foreclosure delays
by Jon Prior
Fannie Mae to retroactively charge mortgage servicers for foreclosure delays
Bank of America will spend at least the remainder of 2011 revising affidavit filings in foreclosure cases around the country. Read More in Housing Wire
Mortgage Rates Unchanged to Slightly Improved
Once again, yesterday's Mortgage Rates have improved very slightly. This wasn't necessarily the case Monday morning, but market movements during the day resulted in several lenders offering small improvements. Most of those improvements will be seen in terms of slightly lower closing costs.
Greek Turmoil, G-20 Decisions Target U.S. Lenders
By: Ryan Schuette
Political trouble in Greece sent stocks and shares for major mortgage lenders tumbling Friday, even as the world’s 20 wealthiest nations placed eight U.S. banks on a list that may require systemically risky institutions to shore up their capital reserves » Read More MReport
Credit Unions Vie with Banks for Consumers, Mortgages
Rising debit card fees drove some 650,000 consumers to credit unions over October, with social media movements responsible for galvanizing the exodus, according to a recent survey. The Credit Union National Association laid claim to the figures in a survey for which the trade group polled some 5,000 credit unions nationwide. The ruckus over debit card fees began in September when the nation’s largest lenders floated the idea of an increase in monthly payments for debit-card users. This only marks the latest in a string of public relations problems. » Read More MReport
Senate Banking Committee Wants Answers on GSE Bonus Millions
By Brian Collins A Senate panel wants the chief GSE regulator to explain why Fannie Mae and Freddie Mac executives continue to receive millions of dollars in bonus money for running the giant mortgage companies which continually need government assistance to stay afloat. Read More National Mortgage News
Mortgage Rates Plunge Amid Euro Zone Trouble
After inching forward in the last few weeks, mortgage rates again plummeted on fresh concerns about the euro zone crisis, with rates dropping to 4.00 percent, the second-lowest reading for Freddie Mac. The GSE released a weekly survey alongside finance Web site Bankrate. Freddie reported the 30-year loan falling from 4.24 percent recorded last week, not a far cry from the 10-percentage point plunge to 4.23 percent from 4.33 percent that Bankrate.com recorded. Investor confidence shot up after Europe agreed to bail out Greece. » Read More MReport
Mobsters Indicted for Extorting Texas Mortgage Company
By Evan Nemeroff
FirstPlus Financial Group Inc., a publicly traded mortgage company in Beaumont, Texas, was illegally taken over through extortion by thirteen individuals, two of whom are linked to the Lucchese organized crime family, according to an indictment filed by the U.S. Department of Justice. Read more in National Mortgage News
What We're Hearing: Huh? U.S. Home Ownership Rate Increases?
By Paul Muolo
The U.S. government Wednesday morning reported that surprise; the home ownership rate actually rose last quarter. What? That's correct. Read more at Origination News
Fannie Mae serious delinquencies lowest since 2009
by Jon Prior
The serious delinquency rate on mortgages backed by Fannie Mae dropped to 4%, the lowest level since June 2009. The rate fell every month since the 5.59% peak in February 2009 except for July when it went unchanged. Fannie said the rate fell 3 basis points from August. Read More In Housing Wire
Big Four Banks Release Earnings, Citing Economy, Litigation
Litigation fees, bold restructuring moves, and new regulation helped shape earnings figures over the third quarter for the nation's largest lenders and financial institutions in October. Along with numerous other banking holding companies and investment firms, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo released their reports to the media and investors over the past two weeks. The results: more mortgage lenders continue to exit the business, while financial institutions stepped up the public debate against onerous regulations. » Read More at MReport
This Week; two things dominate. Wednesday Bernanke will hold a press conference at the conclusion of the two day FOMC meeting, and Friday the October employment report. Interest rates have increased from the 21st of Sept FOMC meeting at which the Fed Started Operation Twist, buying long dated treasuries and MBSs with the intent of keeping long term (mortgage rates) low in an effort to help the housing sector. Bernanke said he expected the Twist would push the 10 yr note rte down 50 basis points. It worked for one day but at the moment the 10 yr note is 30 basis points higher than the day the Twist was announced. The Fed has to be concerned, there are no real fiscal efforts in place and lower interest rates have had little positive impact. David Shirmeryer - Rate Alert.
Equity Rally Fizzles
10-28-11: Thursday's stock rally did not sustain today which helped Mortgage Backed Securities gain and mortgage prices improved 0.50 point at market close..
New Home Sales Strike a 5.7% September Stride
By: Ryan Schuette
New single-family home sales snagged a September updraft to crest at their highest perch in nearly half a year, but remain below sales seen during the same period last year. Read More in MReport
Four arrested in Sacramento for allegedly defrauding mortgage lenders
By: Kerry Panchuck
Four California residents face prison time and thousands of dollars in fines for allegedly defrauding lenders out of $900,000 Read More in Housing Wire
Home Prices Remain Flat - Have we hit bottom?
Home prices largely hovered at around the same rates from months before, with some cities seeing relief and others watching gains trickle south, according to two second-quarter indices released Tuesday.
The Federal Housing Finance Agency (FHFA) and Standard & Poor’s/Case-Shiller home price indices numbers for home prices that fell by a few percentage points and rose in a few metropolitan areas, respectively
Bipartisan Bill Targets Foreign Investors for U.S. Housing
On Capitol Hill, the Senate is making moves to help the U.S. housing market capitalize on foreign investors. Sen. Charles E. Schumer (D-New York) and Sen. Mike Lee (R-Utah) proposed legislation recently that would facilitate investments from abroad by easing the acquisition of visas for those participating. The bipartisan plan would give foreigners buying homes on American soil a residential visa for three-years with an investment of $500,000 or more, provided they live in the property for a minimum of 180 days per year. » Read More at MReport
Senate Passes Bill to Raise Conforming Loan Limits
A bill squeaked by the Senate Thursday that would reverse lower limits for conforming loans backed by the federal government and reinstate the $729,750 threshold until 2013. Lawmakers adopted the amendment to a federal spending measure by a count of 60 to 38, giving backers of the bill the supermajority needed to avoid wrangling over the issue. Multiple news outlets reported that Congress had allowed the higher limits for conforming loans to ease in October despite a massive lobbying effort by companies and trade groups. » Read More at MReport
This Week; the headline remains the same, will the European officials actually come up with a plan the takes Greece and the other back from the edge of the cliff? We believe they will have something but we also believe whatever comes from the meeting now scheduled for Wednesday will be just a bandage that will not end the crisis facing Europe's banks and the countries in the region hanging by their finger nails. There are no economic reports on Monday; the rest of the week has something everyday; Thursday markets will get the first report on Q3 GDP, expectations are the economy grew 2.2% in the quarter compared with +1.3% growth in Q2. David Shirmeryer - Rate Alert.
Multifamily Lending Jumps 31% Over 2010
More than 2,000 multifamily lenders financed five-unit apartment buildings to the tune of $68.8 billion over the course of 2010, according to a Mortgage Bankers Association report released Wednesday. The MBA pooled data from the MBA 2010 Commercial Multifamily Annual Origination Volume Rankings, which it said covered $119 billion in commercial and multifamily loans over the course of last year. The trade group found a 31-percent increase in total dollar volume for the multifamily lending industry. » Read More at MReport
Bill Reintroduces Energy Costs to Underwriting Process
Lawmakers from both sides of the aisle introduced a bill in the Senate that would require mortgage lenders to consider energy costs for borrowers when underwriting their federally insured loans. Sen. Michael Bennett and Sen. Johnny Isakson introduced the bill, titled the Sensible Accounting to Value Energy Act, as a way to restore energy cost calculations for government-backed mortgages. Sources in the know tell MReport that the bill could save billions for homeowners and create 83,000 jobs by 2012. A broad coalition backs the legislation. » Read More at MReport
Housing Starts Up
By: Dirk van Dijk, CFA
We got some very nice news on the housing front this morning. Housing starts rose in September to a seasonally adjusted annual rate of 658,000 from 572,000 in August -- an increase of 15.0%. Also, the August numbers were revised slightly higher from 571,000 Read More at ZACKS Investment Research
Homebuilders More Confident Despite Economic Outlook
Homebuilders grew more confident this month than at any time in the past year, a measure of strength in the housing market that nonetheless trails figures seen before the financial crisis. A survey released Tuesday by the National Association of Home Builders showed homebuilder confidence cresting at 18 points, four points up from a score of 14 indexed by the trade group last month. Points below 50 signal a negative outlook about the market. Read More at MReport
Survey: Originators Thriving Despite Rules, Regulations
By Ryan Schuette
Mortgage originations are on their way up despite the onset of new rules and regulations, according to a recent survey by MortgageDaily.com. Also included: how top originators thrive in today’s tough market. The results? Three-quarters of those polled make $250,000 a year, even as many of the same lenders decry mortgage rules and regulations. Much of the survey's findings follow departures from the industry by major mortgage lenders, grim economic outlooks, and more.Read More in MReport
This Week: economic releases beginning Monday and through Thursday will set the tone for financial markets. Recently there has been a renewed view the US economy is better than thought just a few weeks ago, the DJIA has now recovered all losses for the year. Interest rate markets are taking the hit on better outlooks and the belief that Europe's debt mess will be contained----hope is what we live with these days.
Late Friday Stock Rally Pressures MBS Lower
Oct 14 2011, 4:12PM ET
From a recent alert on the MBS Dashboard: "Late day illiquidity and a stock market rally are weighing on MBS this afternoon. Prices are in line with their lows of the day and while the reprice scene has been fairly quiet today, it's not out of the realm of possibility for a lender or two to take some rebate off the table heading into the weekend. Fannie 3.5's are down 12 ticks on the day at 100-22 and 4.0's are down 8 ticks at 103-03" Read More in Mortgage News Daily
Southern California home sales remain steady
by Kerri Panchuck
Southern California home sales grew a slight 0.3% from a year ago in September, suggesting the market remains steady on a year-over-year basis, DataQuick said Thursday. Read More in HousingWire
Lawmakers Press Officials Over Mass Refinance Program
By: Ryan Schuette
Sixteen lawmakers from both parties inked their names to a widely circulated letter Wednesday that called for the implementation of a massive refinance program first proposed by President Barack Obama.Read More in MReport
Mortgage Applications Tick Up 1.3%
Up from a dearth seen two weeks ago, mortgage applications leapt to 1.3 percent on a seasonally adjusted basis last week as numbers tilted toward more government-backed loan purchases and refinancing activity in the category, according to a weekly survey by the Mortgage Bankers Association (MBA) Read More in MReport
The End of The Low Rate Dream?
"The trend is your friend," or "play the range until the range plays you..." Two of the commonly heard phrases during periods like the last 2 months in bond markets. Last week's NFP in conjunction with optimism over the European debt crisis sent yields well out of their reliably-travelled trend channel and we awaited today's trading as confirmation or rejection of that breakout. With zero exceptions, 10yr yields traded inside a trend channel outside which, yields never closed for two days in a row...
Fannie: Consumer Outlook for Prices Sees New Lows
More consumers harbor low expectations for home prices and the economic outlook today than at any time this year, Fannie Mae revealed in a survey it released Monday. According to the GSE, only 18 percent of survey respondents fielded hopes that home prices would increase into 2012 – Read More in MReport
This Week: today the bond and mortgage markets are closed for Columbus Day but the rest of the markets are open. Over the weekend France and Germany announced they would re-capitalize Europe's banks in a major move to fend of Greek default, or at least put it off a while longer. On the news Europe's stock markets rallied and the US stock indexes also improved. Interest rates in Europe are about 3 to 5 basis points higher in yields, if our bond market was open today the 10 yr and mortgages would be starting the day lower in prices and higher in rates. David Shirmeryer - Rate Alert.
Bankruptcy for Countrywide?
By Paul Muolo
As Bank of America continues to lop off mortgage divisions, and lets its retail residential work force wither away there is renewed talk that it may finally throw Countrywide Funding Corp. -- the mortgage banker it bought three years ago -- into bankruptcy. Read More in Origination News
Mortgage Rates Drop Below 4% for First Time
By: Ryan Schuette
Mortgage rates slammed into a new, record-setting low Thursday, with mortgage giant Freddie Mac reporting that figures for the benchmark 30-year fixed-rate mortgage fell below 4 percent for the first time in history. Finance Web site Bankrate.com noted similar albeit less history-making lows Read More in MReport
U.S. Economy Adds 103K Jobs in September
The nation’s unemployment rate held at 9.1 percent during the month of September, as employers added a net of 103,000 new jobs to their payrolls, according to figures just released by the U.S. Department of Labor. Since April, the rate has held in a narrow range from 9.0 to 9.2 percent. Government data shows that there are 14 million people out of work in the United States Read More in DSNews
Big Banks Sued for Allegedly Bilking Veterans, Taxpayers
By: Ryan Schuette
In yet another blow to major mortgage lenders, two brokers unveiled suits Monday against a string of companies alleging the defendants bilked veterans out of millions by hiding illegal fees under other charges for their refinance loans. Quickly emerging as a hot-button topic inside the Beltway, with some pointing fingers at federal agencies, the suit joins a pack of other litigation on the way for the nation’s biggest banks. Read More at MReport
Low Mortgage Rates Sitting Tight After Preliminary Jobs
By: Rosemary Rugnetta
Low mortgage rates are sitting tight after a preliminary jobs report released from ADP showed that 91,000 jobs were added last month by private sector companies. The government’s complete employment data will be reported on Friday. Stocks increased today as investors reacted to this positive news. Read More at FreeRateUdate
B of A Moves to Shut Down Correspondent Lending Unit
An inconclusive search for a buyer will lead Bank of America to shutter the mortgage correspondent unit it had originally hoped to sell. The move means the mortgage giant will wipe its hands of the correspondent business by yearend, with a series of transitions in store for the 1,200 or so employees currently on the payroll. It also tracks a broader strategy deployed by the bank to trim billions in expenses, shore up liquidity, and fend off suits over mortgage-backed securities from federal agencies. » Read More MReport
Market Recap: DJIA Jumps 153 Points, on Eleventh-Hour Rebound
The bears took the reins right out of the gate this morning, but it was the bulls who proved victorious by the closing bell. In early trading, the major market indexes sank to fresh 52-week lows, as lingering concerns about the fiscal fate of Greece set a skeptical tone. Furthermore, both Goldman Sachs and Standard & Poor's dropped the "R" word, calling the euro zone vulnerable to a recession next year. Read more Schaeffers Investment Research
Survey: Most Real Estate Investors Expanding Portfolios
Over eight in 10 U.S. real estate investors are making moves to shore up their portfolios even as talk of a double-dip recession persists, according to a recent survey. More shocking: most of the survey respondents parted ways with Americans at large by agreeing that the economy is headed in a northerly direction. Conducting the survey in early August, Colliers International, a real estate services company, deployed the 2011 Colliers International Global Investor Sentiment Survey as a way to measure investor appetite for risk and optimism. » Read More at MReport
This Week; it is still all about what the stock market does on a daily basis, it isn't rocket science to know that these days if stock indexes increase the bond and mortgage markets get tagged----and the opposite also applies. There are a number of key economic releases this week but the big one hits Friday with the Sept employment report, present estimates that will likely change through the week is for non-farm jobs to increase measly 60K jobs and non-farm private jobs up just 83K, the unemployment rate is expected unchanged. If those estimates prove true, the job growth would suggest the economy is back-sliding toward another recession.
Housing market hit bottom
by Liz Enochs
The U.S. housing market hit bottom this year and will remain flat until 2014, when it will start to slowly recover, said Rick Sharga, an executive vice president with Carrington Mortgage Holdings. Read more in HousingWire
Mortgage fraud investigation snags 20 in $40M scheme
By Kerry Curry
Twenty people in South Florida, including licensed real estate agents and mortgage brokers, were charged in a $40 million bank and mortgage fraud scheme, according to several law enforcement groups involved in the investigation. Read More in Housing Wire
German parliament approves expanded bailout fund
ATHENS — German lawmakers voted Thursday to approve expanded powers for a European bailout fund that Chancellor Angela Merkel has said is critical to ensuring economic stability on the continent. Read More in Washington Post
This is good news for the equities market but could raise rates a little
Freddie Mac outsourcer launches REO rental program
by Jon Prior
Green River Capital plans to operate a national program to rent out previously foreclosed homes, who will oversee the program from its Salt Lake City headquarters, becaming one of three firms handling REO sales and upkeep for Freddie Mac. Green River's investment in a new rental program follows the Obama administration's move seeking new ways to handle the 92,000 properties currently held for sale by the Department of Housing and Urban Development, Fannie Mae and Freddie Mac. Read More at Housing Wire
Home Prices Hold Steady in July Despite Economic Headwinds
Ryan Schuette
The rocky economic landscape could give way to a smoother housing sector if recent home prices signal anything, with a major Standard & Poor’s index revealing Tuesday a marginal uptick in numbers over July. Economists chalked up the gains to a seasonal boost and suggested more stability may be on the way for a troubled housing economy. Read More at MReport
Trulia: More Renters Still Want to Own Homes
Even with new-home sales tanking and recession fears redoubling over August, more renters clung onto the hope of homeownership, with 59 percent still aspiring to pocket a pair of keys and ink their names to mortgages, according to Trulia. The consensus: more than half of all homeowners believe in making the home their most important investment. According to Trulia, 70 percent of survey respondents held firmly to the idea that homeownership is central to the American Dream. »
This Week; Treasury will auction $99B of notes as it normally does the last week of the month. While markets will look at the data, the bigger issue continues to be on Europe's inability to come to some plan to avoid debt defaults in Greece and the other troubled countries in the EU. The essential core of the inability to come up with a plan is that the EU, the ECB do not have enough capital do do it-----pushing on the string. David Shirmeryer - Rate Alert.
Stocks May Show Notable Move To The Upside At The Open - U.S.
Stocks are likely to move to the upside in early trading on Monday amid optimism about the ongoing European debt crisis. The major index futures are currently pointing to a notably higher open, with the Dow futures up by 98 points. Read More at RTTNews
Fed: Lower Jumbo Loan Limits Unlikely to Crimp Markets
Ryan Schuette
Ahead of lower limits for conforming jumbo loans, nearly assured in October as Congress disagrees even over stopgap spending bills, the Federal Reserve offered a revealing look at the market Friday by releasing a report on the health of the housing market. The consensus: falling limits will likely only nudge the jumbo loan market, not tip it over, as some critics claim Read More at MReport
Analysts: Mortgage Rates Stay Low, Likely to Fall Further
Debt crises and stimulus measures stole the mortgage-rates show as more investors flee to U.S. Treasury debt, with mortgage giant Freddie Mac holding that rates dithered by a few percentage rates and finance Web site Bankrate.com finding a fifth-consecutive week for record lows. Read More at MReport
Jobless claims down 2% last week
The Labor Department said the seasonally adjusted figure of actual initial claims for the week ended Sept. 17 decreased by 9,000 to 423,000 from 432,000 the previous week, which was revised upward 4,000. For the same week a year ago, 463,000 initial claims were filed. Read more at Housingwire
Zillow Sees 30-Year Loan Rates Hit 3.94%
By Ryan Schuette
Real estate Web site Zillow differed by few turns over mortgage rates, publicizing a small uptick in real-time mortgage rates. The latest rates arrive amid turmoil in markets at home and record lows for mortgage rates recorded by Bankrate.com and Freddie Mac. Read More at MReport
Mortgage applications tick up slightly as refinancing activity grows
The number of mortgage applications filed this past week edged up a slight 0.6% as more Americans refinanced their mortgages, an industry trade group said Wednesday. Read More at Housing Wire
Defendant Sentenced in Beverly Hills Mortgage Fraud
One of the remaining defendants in the Beverly Hills mortgage fraud story that dates back 10 years and costs Lehman Brothers Bank tens of millions of dollars has been sentenced to prison. Read More California Real Estate Fraud Report
Feds Seen as Able to Weather Crisis if Greece Defaults
By Ryan Schuette
With fears on the rise about a Greek default, stocks for U.S. companies and lenders fell around midday Monday. Speaking with MReport, federal regulatory agencies downplayed the fears despite quarterly numbers that found an expansion in lending volume between wobbly euro zone and U.S. financial institutions over the first quarter. New worries about a spreading debt contagion arose over the weekend when European Union officials reached an impasse in bailout talks.Read More MReport
This Week in Mortgages
This Week; after some increase in rates last week, but technically managing to hold bullish bias; the bond and mortgage markets have the FOMC meeting to think about. Not only the bond market but the stock market as well with many expecting some sort of easing out of the Fed. The economic outlook hasn't improved since Bernanke said in late August he has more tools in his box to help stimulate a recovery. Hard to buy into that however, QE 2 didn't do anything to jump the economy, in fact the recent economic data has been weaker than expected. There is talk the Fed may announce it will begin selling short-dated maturities while increasing the purchases of longer dated noted and bonds. That of course would likely keep long rates from increasing
GREAT NEWS FOR VETERANS
VA IS LOWERING THEIR FUNDING FEE OCTOBER 1st.
In the midst of Fannie and Freddie tightening their guidelines VA is lowering their funding fee by 0.50% across the board. This is great news for thousands of veterans returning from our wars and thousands more from previous wars who are eligible for 100% financing at historically low mortgage rates.Are you as tired as I am of hearing constant stream of bad news from the mainstream media. Last Thursday night, Scott Pelly on the CBS Evening News moaned about how the shortage of money is hurting the real estate market. He was misinformed. Folks, It is not the shortgage of money hurting our economy it is the constant negative bleats from the media. FHA and VA have plenty of money available with basically the same underwriting guidelines we have enjoyed for many years at the lowest rates in over 100 years. Mr. Pelly thought they are the lowest in 60 years. Wrong again.Remember we are talking about 96.5% and 100% financing and while defaults are up in all lending sectors, not so much with FHA and VA because they did not relax their guidelines their default rate is not nearly as high as the conventional sector.There is no denying that our country is facing many problems but… over 90% of Americans are employed, Rates are at a 100 year low and nationally housing prices in some areas are at their 2004 prices. What are you waiting for?Mortgage Applications Jump to Seasonal 6.3%
By: Ryan Schuette
Mortgage application volume jumped from the previous week by 6.3 percent, reflecting the highly attractive plunge by interest rates to record lows, according to the Mortgage Bankers Association (MBA. Read more in MReport
Homes For-sale inventories shrink for fourth month in a row
Realtor.com: List prices holding steady or posting gains in two-thirds of markets.
Inventories of homes, condos, townhouses and co-ops shrank for the fourth month in a row in August, falling 1.9 percent from July and 19 percent from a year ago, to 2.27 million, according to the latest numbers from Realtor.com. Read more in Inman News.
Markets in the US still being driven by lack of events with Europe's debt mess. In early Europe activity this morning there was a report that France and Germany were about to make a statement on Greece's debt, later the French government said that wasn't the case, there is no announcement. Europe's stocks turned lower. German Chancellor Merkel said overnight she won’t let Greece go into an “uncontrolled insolvency” because of the risk of contagion for other countries. Italy sold 3.9 billion euros ($5.3B) of a new five-year benchmark bond as borrowing costs rose and demand fell. A government official said yesterday the nation held talks with China about potential investments in the euro area’s third- largest economy. The rate was 5.6%, compared with 4.93% at the previous auction and demand was 1.28 times the amount on offer, down from 1.93 times earlier
Bank of America nears second phase of restructuring plan
by Kerri Panchuk
Bank of America is close to completing the first phase of a comprehensive reorganization plan that will result in the elimination of 30,000 jobs over the next few years and a $5 billion reduction in annual expenses by 2014, the banking giant said late Monday night.
This Week; the 10 yr note and mortgages will start at historic 60 yr lows; the equity market is likely to continue its volatility with the indexes declining through the week. Obama's jobs plan apparently hasn't gotten any traction with investors, since his speech the indexes were hit hard Friday. Most of this week's economic data comes at the later part of the week. In the meantime Treasury will auction $66B of notes and bonds Monday thru Wednesda
Stocks plunge Friday as worries about Europe intensify
By Daniel Wagner
The problems that weighed down stocks all summer show no sign of letting up.
U.S. stocks plunged Friday, erasing the week's gains, amid rising fears about fallout from Europe's debt crisis. Seeking safer investments, investors sent the yield on the 10-year Treasury note to the lowest level in five decades. Read More at Investors Business Daily
Why Aren't Mortgage Rates Getting Lower as Fast as Treasuries?
Yet again, Mortgage Rates improved today. But the improvements were fairly minor, just as they have been in general despite a healthier rally in Treasury rates. In some cases BestExecution rates may be lower, but in most cases, the improvements will be seen in the form of lower closing costs for the same rates available yesterday. The "current market" and "guidance" sections would be the same as yesterday's, so if those are important to you, read more at Mortgage News Daily
Millions in Mortgage Fraud, Untold Ruin for Victims
By Ryan Schuette
Mortgage fraud cases showed few signs of slowing from last week, with defendants either receiving their sentences or pleading guilty in Alabama, California, Minnesota, and New Jersey. The defendants allegedly scammed lenders and homeowners out of tens of millions of dollars overall. Notably, a judge granted the request of a prosecutor to stay judgment for one alleged scammer in favor of a psychiatric evaluation. An array of newspapers, plus a federal agency, contributed to the roundup.
Technical Support for Treasuries and What it Might Mean for Lock/Float Strategy
Who in the world would talk about SUPPORT (evidence for an intermediate FLOOR for prices) when 10yr yields are around 2% and MBS are near all time highs? We would... But not because we're sure these supportive developments are here for the long haul. We'd just like to point them out to you because we think the current goings-on in 10yr yields and MBS prices are potentially a great way to look at intermediate to longer term lock/float strategy. Read more at Mortgage Daily News
Regulatory reforms suspected in dragging down economic growth
by Kerry Curry
Regulatory reforms stemming from the 2008 financial crisis will add to the headwinds of an already weak global economy, according to the Institute of International Finance.
Unemployment, Mortgages and Hope
By Paul Muolo
I'm not one to spout out Pollyanna hope to readers when there is none. Friday's job figures from Uncle Sam was a blow to the gut, the only good news being that it could've been worse. Here's one ray of hope: the mortgage brokerage segment added jobs for the first time since October 2010. Maybe former NAMB chief Marc Savitt is right – that brokers may have a brighter future than most think.
Read More at National Mortgage News
News Flip, latest report shows 90.9% of Americans are Employed!
Weak Jobs Data Likely To Drag Stocks Sharply Lower -
Stocks are likely to come under considerable selling pressure in early trading on Friday, as traders react to disappointing employment data. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 135 points Read more in ATTNews.
Treasury withholds HAMP funds from BofA, Chase Again
The Treasury Department will withhold payments once again to Bank of America (BAC: 7.92 -3.06%) and JPMorgan Chase (JPM: 36.30 -3.35%) for their poor performance modifying mortgages in the second quarter. Both banks need substantial improvement to their operations within the Home Affordable Modification Program, according to the compliance review conducted by the Treasury. In the first >>
Home Prices Inch Up in July
By: Ryan Schuette
Home prices went up across the country in July, marking the fourth consecutive such month, according to a home price index released Wednesday by CoreLogic. Read more in MReeport
Social-Media Management Or How To Take The Work Out Of Your Network
Organization is the key to reducing the stress – and amount of work – necessary to manage whatever it is you’re overseeing. And that goes for your social-media accounts too. It’s easy to become overwhelmed with maintaining all the email addresses, Facebook pages, blogs, and assorted Internet properties you’ve setup for your business. It’s hard enough to remember your passwords without worrying about updating your sites regularly, maintaining a professional presentation, and responding to comments and questions that come in from your friends, fans, and followers. The good news is there’s a better way. Read More at Ibis Network
S&P/Case-Shiller Home Prices up 3.6% in 2Q
The average price of a single-family home rose 3.6% in the second quarter after dropping 4.1% for the first three months of 2011, according to the Standard & Poor's/Case-Shiller index. The closely watched home price index declined 5.9% for the three months ended June 30 from a year earlier, when the...Read More » Housing Wire
Can the White House Refi Program Actually Fly?
By Brian Collins
The Obama administration is finally realizing that a major refinancing program to help troubled borrowers could help stabilize the housing market and give the economy a jolt—and it would be particularly effective if it reaches an estimated 11 million underwater mortgagors. Read More at National Mortgage News
FDIC: Mortgage delinquency rate drops to lowest level since 2009
by JON PRIOR
The combined delinquency rate on mortgages held by major banks dropped to 6.68% in the second quarter, the lowest level since the third quarter of 2009, according to Federal Deposit Insurance Corp. data. Read More at Housing Wire
This Week; markets will focus on Friday's August employment report as the main event for the week. In the meantime there are key economic data points everyday; July personal income and spending on Monday, consumer confidence on Tuesday, Wednesday has the market-rattling ADP August private jobs estimate and the Chicago purchasing mgrs index, Thursday weekly jobless claims and the August ISM manufacturing index.
Last week Bernanke didn't offer up more stimulus but said the Fed has a lot of tools in its box if needed. He once again reminded that increasing employment required more fiscal stimulus from politicians. He said the world’s biggest economy is gradually recovering, the stock market rallied on that view and the bond market also was a little better on Friday. Monday the US stock market will open better; stock markets around the world rallied Monday onview of Bernanke's US recovery. David Shirmeryer - Rate Alert
Last Week: Mortgage Points based on 3.5% Mortgage Backed Securities closed Friday down 0.16 point and closed up 0.50 point for the week.
Don't you always wonder how much the guys standing at the stoplights take home, tax-free? HowMuchTaxFree?
Thursday, Mortgage Points closed down 0.34 point
Top 52 fastest-growing real estate companies
The lastest Inc. magazine list of the 5,000 fastest-growing private companies in the U.S., released this week, includes 52 companies in its real estate category. >> Read More at Inman News
Short sales surged in second quarter: RealtyTrac
Second-quarter pre-foreclosure sales jumped 19% from the previous quarter, suggesting more banks and distressed borrowers are searching for efficient ways to offload properties that are near foreclosure, RealtyTrac said. Third parties acquired 102,407 pre-foreclosures in the second quarter, while 162,680 bank-owned homes were sold in the same period. Pre-foreclosure sales are generally short sales and properties sold [...]
Wednesday, mortgage points closed up 0.37 point
HECM Limits Will Not Change (Reverse Mortgages)
By Brad Finkelstein
Alleviating fears in some corners of the reverse mortgage community, the Federal Housing Administration has put it in writing that the loan limit and maximum claim amount for the Home Equity Conversion Mortgage program will remain unchanged come Oct. 1. Read More in Origination News
MBA: Mortgage Apps Up On Refi Demand,
U.S. mortgage applications continued to rise last week, boosted by strong refinancing demand, industry data showed Wednesday. However, unusually low interest rates failed to produce much demand for home purchase applications, signaling weakness in the housing market. >> Read More at RTT News
Zillow: Mortgage Rates Fall. Again
Mortgage rates continued falling to new lows, according to real estate Web site Zillow, which released rates in the latest Mortgage Marketplace note Tuesday. According to Zillow, the benchmark 30-year fixed-rate loan jumped four basis points to hit 4.07 percent Saturday, up from 4.09 percent last week. Zillow tracks mortgage rates by pooling anonymous loan quotes submitted by the 1.7 million users that it says follow its Web site on a daily basis. The Zillow rates track ongoing mortgage-rate declines reported by Bankrate and Freddie Mac. » Read More at MReport
Monday, mortgage points closed up 0.31 point.
A Week in Mortgage Fraud, Scams, Schemes
A $50 million mortgage fraud scheme, bank fraud by a title agency, mortgage Ponzi scheme by a former Republican chairwoman, and trouble for an alleged ring of scamming lawyers helped round out a week in mortgage fraud and demonstrate that sham loans are alive and well across the nation. A flurry of lawsuits, indictments, guilty pleas, and sentences awaited alleged and convicted schemers alike. The trouble arrived on the heels of a fresh Federal Bureau of Investigation report that recorded a spike in mortgage fraud activity over 2010. » Read More at MReport
MBA: Loan Volume to Hit $1.1 Trillion in 2011
While the economy at large and market skewer, loan volume origination may ride a wave of refinance applications and low mortgage rates into 2011, according to a forecast by the Mortgage Bankers Association. Amounting to $1.1 trillion in residential mortgages, or about $100 billion more than previous forecasts, the higher volume and low mortgage rates mark a silver lining for a month of chaos for the market at large. Lower forecasts for mortgage rates partly drove MBA'S report. » Read More at MReport
This Week; its still all about what is occurring in Europe with the bank and sovereign debt problems, Treasury auctions and on Friday the opening of the annual Jackson Hole conference where markets are expecting something from Fed chief Bernanke on what, if anything the Fed can do to rev up the economy----not much in our opinion. There are only a couple of economic releases to consider; July new home sales and the second look at Q2 GDP.
The bond and mortgage markets will continue to focus attention on how the stock market trades; stocks up, rates increase, stocks down rates fall-----all in a narrow range. Lenders still have issues with locks they bought; how many will close? Prices for mortgages set by lenders will continue to be conservative. Look for continued volatility in stocks and bonds this week. David Shirmeryer - Rate Alert
Two California MLSs merge to become largest in nation.
Visions of a statewide multiple listing service in California are a step closer to reality today, with the California Regional Multiple Listing Service Inc. (CRMLS) announcing a merger that will double its size and make it the nation's largest, with 68,000 participants and subscribers. Read More at Inman News
US housing starts 'fall less than expected'
The number of housing starts in the US fell by 1.5 per cent in July compared to June, a much smaller drop than analysts had been anticipating. Property Showrooms.com
Thursday The US stock market was down $419.63 based on continued weakness in Europe's bank stocks that are seeing heavy selling.
Housing Bust Provides New Openings for Mortgage Fraud
The housing boom created a rich climate for mortgage fraud and while the bust that followed the boom has changed the nature of the crime, it has provided continued opportunities which the Federal Bureau of Investigation (FBI) is attempting to quantify. The Bureau has released a study that attempts to quantify the breadth and depth of mortgage fraud in 2010 so FBI program managers and the general public can better understand the current threat. Read More at Mortgage News Daily
Obama Administration May Soon Shut Off GSEs
Fannie Mae and Freddie Mac may soon see their federal conservatorship, a controversial fact that keeps some $11 trillion in mortgages dependent on the government, erode as the Obama administration builds a proposal to wean the housing market off Uncle Sam, multiple news outlets report. The White House denied any substantive changes to the GSEs Monday. Read more at MReport
Mortgage application volume up 21.7%
As mortgage interest rates hit their lowest point of 2011, with an average rate of 4.37 percent on a fixed 30-year loan and the Federal Reserve Board did not announce a hike in rates, the volume of mortgage applications rose last week, according to the Mortgage Bankers Association (MBA). Read More at agbeat
Housing, industrial production data give conflicting signals
Economists had been waiting for a series of data releases Tuesday for an indication of where the direction the economy was headed. But so far the numbers have been mixed.
This Week; should continue to see increased volatility in the financial markets as investors and traders sift through the ever changing economic outlook. This week we have a lot of economic food to digest. The bond and mortgage markets remain technically overbought but in this present environment of high volatility and moving to safety, the bond market will likely continue to hold low rates, however not quite as low as it was last week. It all depends on the data this week. Expect to hear more about the possibility of another Fed easing (QE 3); whether or not the Fed goes back to purchasing treasuries or MBSs or anything else, it won't likely have any impact on improving the economy or job growth. This week expect another week of interday market volatility. Adapted from David Shirmeryer - Rate Alert
Week Ending August 12: Mortgage prices based on Mortgage Backed Securities closed Friday down 0.43 point and down 1.91 points for the week.
LinkedIn Is Now The #2 Social Network In The US
if you want Business Contacts go to LinkedIn; If you want to socialize go to Facebook.
Read more in BusinessInsider.com
Weekly jobless claims fall by 7K to 395K, beats analysts' expectations
The number of people in the US who applied for unemployment benefits dropped by 7000 to a seasonally-adjusted 395,000 in the week ended Aug. 6, the Labor Department said Thursday. Economists surveyed by MarketWatch had expected new claims ... >> Read More in New York Post
S&P/Case-Shiller: Home Values Rise
By Brian Collins Home prices rose 1% in May compared to April, and 16 of 20 metropolitan areas tracked by the Standard & Poor's/Case-Shiller house price index registered monthly price gains. >> Read more in Origination News
August 9: Dow soars 430 as Fed sees low rates into 2013
Stocks shot higher, with the Dow soaring 430 points, its 11th-largest point gain, after the Federal Reserve signaled it sees a weak economy for some time to come and will keep interest rates at record lows for at least two more years. >> Read More at MSN Money News
Will Congress Extend Higher Conforming Loan Limit?
A coalition of bipartisan lawmakers, aided by industry and housing groups, faces an uphill battle to extend the increase against unlikely allies: House Republican leadership and the White House. >>Read More National Mortgage News
Making the Most of Seller Contributions: Not Just for Closing Costs Anymore
By Brien McMahon
When it comes to seller contributions, the real estate and mortgage industries are well overdue for a new way of thinking. That’s because the majority of agents (and buyers and loan officers, too) simply think the only use for seller contributions is to cover closing costs, and that means you’re missing out on a tremendous opportunity to help your buyer.
This Week; Late Friday afternoon S&P downgraded US credit rating to AA+, a notch below AAA and put the US on negative credit watch. They waited until after US markets closed to make their move. Monday morning the US stock market will open substantially lower, maybe as much as 200+ points. The US Treasury markets will open better on safe haven moves. Last Friday the rate markets were weaker and likely would have been lower again on Monday had it not been for the decision by S&P. S&P is essentially questioning the will of the people and therefore Congress and this Administration the ability to actually deal with cutting spending; based on the circus we just went through it appears the will or guts are not there. S&P may actually be helping driver home a very serious point. David Shirmeryer - Rate Alert
August 5, 2011: Mortgage Prices based on Mortgage Backed Securities closed Friday up 1.06 point and lender prices worsened midday. For the week, Mortgage Points were down 0.87 point.
August 4th was a good day for many folks inspite 513 DJA Drop.
Stocks took a hugh hit but if your retirement account is in treasuries ,treasuries prices were up and yesterday was a very good day. A barrel of oil dropped around $5.50 and mortgage prices improved significantly. And... if you took my lock advice on any of the past three days your clients are thrilled.
Employment Better Than Expected
August 8 at 8:30 EST the BLS employment report; always a surprise and today no different. The unemployment rate was expected at 9.2%, as reported 9.1%. Non-farm jobs expected up 86K increased 117K; private jobs expected +100K increased 154K. The average hourly earnings up 0.4%, much stronger than expected. Revisions to May and June non-farm jobs; increased to 53K frm 25K in May, June to +46K frm +18K. Factory jobs in July increased 24K, factory jobs in June revised to +11K frm +6K. David Shirmeryer - Rate Alert
Senators submit bill to extend conforming loan limits
Senators Robert Menendez (D-N.J.) and Johnny Isakson (R-Ga.) introduced a bill this week to extend the elevated conforming loan limits through the end of 2013. The bill joins a similar effort in the House, where Rep. John Campbell (R-Calif.) and Rep. Gary Ackerman (D-N.Y.) introduced another bipartisan extension in July. Both bills...>>Read More at Housing Wire
Low Rates Boost Apps
By Brad Finkelstein Lower mortgage rates, driven by the debt ceiling negotiations and bad economic news, led to a 7.1% increase in application volume the week ended July 29, according to the Mortgage Bankers Association. But, an economist with the group pointed out, refinance volume is still 30% lower than it was at this time last year. Read More at Origination News.
Maximum Guaranty Limits – October 1, 2011 through December 31, 2011
The maximum guaranty for VA guaranteed loans closed October 1, 2011 through December 31, 2011 will remain unchanged. The Veterans’ Benefits Improvement Act of 2008 provided a temporary increase in VA loan limits for loans closed January 1, 2009 through December 31, 2011. Because of this legislation, VA loan limits will remain the same for the remainder of the calendar year. Please note that VA does not have a maximum loan amount. Loan limit refers to the maximum loan a lender could make and still receive a 25% guaranty from VA, assuming the veteran has full entitlement.
U.S. Private-Sector Employment Increased by 114,000 Jobs in July.
Employment on large payrolls (500 or more workers) rose a smaller 9000," Prakken added. Additional information about small businesses employment, including charts on monthly job growth and employment levels, along with historical data, is available at ... >> Read More at Market Watch
New FTC Rule Goes After Mortgage Advertisers
A rule recently finalized by the Federal Trade Commission (FTC) will take effect this month, prohibiting mortgage brokers, servicers, and nonbank lenders from advertising 19 practices it calls deceptive. The rule will enable the FTC, newly opened Consumer Financial Protection Bureau (CFPB), and state regulators to issue civil monetary fines and penalties against wayward mortgage advertisers. >> Read more at MRreport
Just a Thought
It is interesting to note that while politicians and the media were claiming the United States was teetering on the edge of Armageddon, foreign money continued to pour into the safest financial haven in the world; driving bond prices up and bond yields down. Sometimes it pays to watch what is happening instead of just listening to the noise.
Last Friday Mortgage Prices dropped the largest amount this year, 0.81 for a single day and down 0.91 point for the week.
This Week; over the weekend, the political soap opera finally ended with a deal to avoid a debt default. Congressional leaders and the President came to a compromise that by now everyone is aware of. What isn't clear yet is will the deal make it through the House after members actually see the plan that early this morning hasn't been seen by most members in the House or Senate. The stock market will open better this morning on the news but the bond market isn't likely to buckle much. So far there has been nothing from the rating agencies whether the deal is sufficient to avoid a downgrade of US credit rating. David Shirmeryer - Rate Alert
"Qualified Residential Mortgage" on the Hot Seat
Early in June we discussed the provisions of QRM (“QRM” stands for “Qualified Residential Mortgage”). The intention of the proposal is good: to limit “risky” loans from being originated and sold to investors and to force companies that securitize loans to “keep skin in the game.” QRM loans are expected to perform better, and therefore be subject to fewer risk requirements, with outliers being labeled as non-QRM. The loans falling outside this definition require the securitizer to hold 5% of the loan as a reserve, this is the risk retention component. Read more at Mortgage News Daily.
To Save Home Values, Bill Asks Banks to Rent Foreclosures
The proposed bill, Neighborhood Preservation Act of 2011 (H.R. 2636), calls on banks and the government-sponsored enterprises--Fannie Mae and Freddie Mac--to start renting out some of their foreclosed properties to reduce REO sales and “stabilize home values and restore confidence in the housing market. Read More at Real Estate Daily News.
Realtors Report Uptick in Sales Contracts
Pending real estate sales had another strong showing in June according to the Pending Home Sales Index (PHSI) released today by the National Association of Realtors® (NAR). The Index, a forward-looking indicator based on home sales contracts, rose 2.4 percent to 90.9 in June, following an 8.2 percent increase to 88.8 in May. Read More in Mortgage News Daily
Weekly Jobless Claims Unexpectedly Drop Below 400,000
New unemployment claims in the U.S. showed a significant decrease in the week ended July 23rd, according to figures released Thursday by the Labor Department, with claims falling below the key 400,000 level. Read more at RTT News
California Mortgage Defaults Drop to Four-Year Low
Mortgage defaults in California reached a four-year low at the end of last quarter, according to DataQuick. Analysts said a more stable housing market and recent policy changes in the mortgage servicing industry are the main reasons for the latest decrease in state foreclosures. Read More at Managing REO
Federal Housing Finance Agency Reports Lower Mortgage Interest Rates
The Federal Housing Finance Agency today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.62 percent based onloans closed in June. This is a decrease of 0.12 percent from the previous month. This Contract Rate series can be found at FHFA
Case-Shiller Index Posts Second Straight Home Price Increase
For the second month since recording an official double-dip in home prices, the S&P/Case-Shiller index has posted an uptick.
Data just released by Standard & Poor’s shows that 16 of the 20 metros included in the study and both composites reported positive monthly in. creases Read More Case Shiller
Companies, Industry Groups Continue QRM Rule Fight
Real estate and relocation servicers provider Realogy Corporation became the latest in a string of companies to file critical commentary with regulatory authorities overseeing the Qualified Residential Mortgage rule, the embattled proposal that industry groups say would crimp housing by forcing homebuyers to front 20 percent in down payments. Realogy joins a host of other critics, including the Coalition for Sensible Housing Policy, 320 members of Congress, and some 44 private organizations. » Read More MReport
This Week; its all about the debt ceiling and the on-going troubles in Europe with potential defaults on debt in Italy, Greece, Spain, Portugal and Ireland.
Mortgages will likely increase today as politicians have not yet come up with a plan that will allow Treasury to avoid default on the 2nd of August.
However, there will be a plan and the US will not default, but now what the deal may look like still begs the question whether the rating agencies will lower the US bond rating from AAA to AA2. There are some that believe even with the very weak deal being hammered out it won't be enough to keep the credit rating to be lowered. Adapted from David Shirmeryer - Rate Alert
Housing Starts Rise
Housing starts rose to an annualized rate of 629K, from 549K. Permits rose from 609K to 624K. Both numbers are at or near multi-month highs. That's good. Neither number is actually meaningfully above (if above at all) last year's peak numbers. In fact, both numbers have been stuck in the same range for three years now. Read more at Seeking Alpha
Mortgage rates steady despite market volatility
Mortgage rates were little changed, keeping borrowing costs close to the lowest level for the year. The average rate for a 30-year fixed loan was 4.52 percent in the week ended Thursday, up from 4.51 percent last week, according to Freddie Mac. .Read More at Washington Post.
Hope Still Alive for Mortgage-Cap Extension.
Lawmakers still have a chance of preserving higher loan limits for mortgage giants Fannie Mae and Freddie Mac given fierce lobbying from the mortgage industry and a weak housing market. Read More at Wall Street Journal
One Year Later, the Consumer Financial Protection Bureau Goes Live
Following months of anticipation among critics and admirers alike, the CFPB formally opened its doors Thursday, taking over rule-writing and enforcement abilities for 18 consumer financial laws, preparing a host of new regulators, and assuming an array of powers provided by the Dodd-Frank Act. The launch notwithstanding, a tied-up confirmation process, scale-up difficulties, and stiff political opposition from the past year hold the CFPB back, making some wonder how the bureau will function. » Read More MReport
FHFA House Price Index Rises 0.4 Percent in May;
Second Consecutive Monthly Increase
U.S. house prices rose 0.4 percent on a seasonally adjusted basis from April to May, according to the Federal Housing Finance Agency’s monthly House Price Index.
Sign of Housing Bottom? Deja Vu All Over Again.
We’ve been here before. Home builders report a spike in activity and hopes build that housing is in recovery. The latest signs of improvement came from a 14.6% jump in June housing starts, a 2.5% gain in building permits and a 2-point rise in the July housing market index. Read more at Wall Street Journal
New Bill May Extend Conforming Loan Limits
On Monday lawmakers introduced a bill that would extend the current conforming loan limits for another two years a deal that could continue federal insurance for homeowners with high conforming jumbo loans. Rep. John Campbell (R-California) and Rep. Gary Ackerman (D-New York) co-sponsored the bill, titled the Conforming Loan Limits Extension Act, which would fix the limit for jumbo loans backed by GSEs Fannie Mae and Freddie Mac and the Federal Housing Administration at $729,750. » Read More MReport
FHA's new rules: more pain for condo market!
Calculated phasedown under way?
Is the Federal Housing Administration taking a back-door exit away from condos -- a key real estate segment in which it's recently built up market shares of 40 percent and higher in many urban areas? Read more: Inman News
June housing starts up 14.6% to 629,000
New construction of U.S. houses jumped in June to their highest level in five months, the Commerce Department estimated Tuesday. Starts rose 14.6% in June to a seasonally adjusted 629,000 annualized units, stronger than the 580,000 pace expected by economists surveyed by MarketWatch > Read More Marketwatch
This Week; like last, there is a lot of focus on the debt issues in Europe and it continues to drive money into US treasuries supporting US rates and mortgage rates. Last week Italy took the stage while Greece remains on life support. Ireland, Portugal and Spain are likely next in line; all those countries are essentially bankrupt being duct taped together with EU and IMF help.
Homebuilder Confidence in U.S. Rose in July
Confidence among U.S. homebuilders improved in July from a nine-month low as executives turned less pessimistic on the outlook for sales.
Jumbo Mortgages are Booming
Low interest rates are driving high-end home buyers to supersized mortgages at a pace unseen since the housing boom. But the deals may have a limited shelf life.
07-15,-2011: Mortgage Points closed Friday down 0.12 point and down 0.31 point the week.
Freddie Reveals Declines in Mortgage Rates
Freddie Mac released a southerly primary mortgage market survey Thursday, revealing downward trends for mortgage rates across the board against a backdrop of anemic job growth and steadily increasing unemployment figures. According to the GSE, 30-year fixed-rate mortgages dipped to 4.51 percent falling from 4.60 percent last week and staying just under the 4.57 percent average it struck last year. The data for 15-year fixed-rate mortgages yielded a fall from 3.75 percent last week to 3.65 percent this week. » Read More
Overall prices dip; consumers pay more for autos, clothes
A key index of consumer prices fell last month because of a steep drop in gas costs. But Americans paid more for autos and clothes last month.
The Labor Department reported the Consumer Price Index fell 0.2% because of the decline in gas.
MI Giant Genworth Makes Undisclosed Payment For FHA Report
Conflicts of interest abound in the world of academic research. Many were highlighted in last year's Academy Award-winning documentary about the financial crisis, "Inside Job." a must see movie.
The latest example of such a conflict comes from George Washington University. In a research report released last month, professor Robert Van Order, chair of the Center for Real Estate and Urban Analysis there, and professor Anthony Yezer, director of the university's Center for Economic Research, make a strong argument for shrinking the role of the FHA in insuring mortgages. But nowhere is it disclosed that the paper was at least partially underwritten by the private mortgage insurance giant Genworth Financial Inc., which stands to benefit from a pull back in the market by FHA.
US Weekly Jobless Claims Drop To Nearly Three-Month Low
In the week ending July 9, the advance figure for seasonally adjusted initial claims was 405,000, a decrease of 22,000 from the previous week's revised figure of 427,000.
U.S. rate markets continue to rally on continuing problems in Europe with debt in 07-13-2011: Greece, Ireland, Spain, Portugal and Italy. Moody’s continues to downgrade the debt in those countries to junk status while the EU, IMF, France and Germany try to work out plans to avoid what increasingly looks like defaults in the making.
U.S. import prices fell 0.5 percent in June.
07-13-2011: The U.S. Bureau of Labor Statistics reported today, the first monthly decline since June 2010. Declining fuel and nonfuel prices both contributed to the overall decrease.
U.S. export prices ticked up 0.1 percent in June after rising 0.2 percent in May.
Mortgage Rates: Better Here, Not Everywhere
07-13-2011: The primary mortgage market has been a roller coaster ride lately. Best Execution* quotes have been all over the place. Just 10 sessions ago, after setting new year-to-date lows, home loan borrowing costs started shifting in an unfavorable direction. Several instances of "spiking" were seen. Things got pretty hair there for a minute. It really looked like rates were about to erase a two-month rally. And then came a bucket of cold water..... The June Employment Situation Report. It was tough to find...>Read More
The Best Housing Markets for the Next Five Years
Here are 15 cities, identified by Fiserv Case Shiller Indexes, where the housing market is growing, and could provide you with some nice returns. Nationally, houses are appreciating on an average of 3.7%, all of these cities have markets appreciating at over 8% > Read More
10 HOT Markets for Real Estate Investors
7 California markets make the list. Editor's note: In compiling the "10 Best Markets for Real Estate Investors" report, Inman News reached out to a range of data providers and online real estate sites that supplied statistics...> Read More
99% FHA Financing!
Grant funds available for FHA buyers! Grants are NOT seconds. They are underwritten like gift funds-no payment calculated in PITI. Works great with FHA!
Grant equals 3% of first loan amount (including MIP)
Grant proceeds can be used for:
- Down Payment
- Closing Costs
- Prepaid Items
FHA May Clamp Down on Debt-to Income Ratios
July 8: The Federal Housing Administration is considering tightening borrowers' debt-to-income ratios, a move that would prevent the most highly leveraged consumers from qualifying to buy a home. >Read More
Weak Monthly Unemployment Report Helps Rate and Hurts Stocks
July 8: The U.S. Bureau of Labor Statistics reported today nonfarm payroll employment was essentially unchanged in June (+18,000), and the unemployment rate was little changed at 9.2 percent, Employment in most major private-sector industries changed little over the month. Government employment continued to trend down.
Weekly Jobs Report Improves
July 7: In the week ending July 2, the advance figure for seasonally adjusted initial unemployment claims was 418,000, a decrease of 14,000 from the previous week's revised figure of 432,000. The 4-week moving average was 424,750, a decrease of 3,000 from the previous week's revised average of 427,750. The Monthly Report is due tomorrow.
Lower Limits for Government Backed Mortgages
July 6: Lower limits for mortgages that can be backed by the federal government take effect Oct. 1, but lenders warn applications for larger loans will be cut off "much sooner" to ensure they are funded before that date. While the limits vary by location, the top limit will drop from $729,750 to $625,500.
HUD Scorecard: Home Sales Rise, Prices Dip
July 6: HUD and the Treasury Department jointly released the June edition of the Obama administration’s Housing Scorecard, offering mixed results as home sales crested on a slight uptick and an oversupply of foreclosed properties remained in place. According to the Scorecard, existing home sales jumped slightly over June, trending from 25,100 to 26,900. Mortgage rates elevated the new home sales by staying low, with a number of borrowers refinancing their mortgages to recoup losses and boost their savings. » Read More
B of A and Mortgages: the Writing is on the Wall
July 5: Over the time span of about a month Bank of America has lost a top residential lending executive (Doug Jones) and its warehouse chief, industry veteran Paul Szymanski. Both were hired away by PennyMac, a tiny (in comparison to B of A, at least) publicly traded REIT. In normal times it would be unheard of to go from a megabank to a small shop but we’re living in anything but normal times > Read More
Study: FHA's New Loan Limit Reduction Affects Very Few
July 5: The Federal Housing Administration’s push to reduce the higher end of FHA’s loan limits may only impact a small number of the market share, according to a new study by George Washington University. The FHA Assessment Report: The Role and Reform of the Federal Housing Administration in a Recovering U.S. Housing Market," reveals that the Federal Housing Administration's (FHA) current loan limits are larger than necessary to serve its targeted market of first-time and low- to moderate-income borrowers. » Read More
Big Banks Once Again Prove They Own Congress
July 5: Congressional approval of a law that favors banks over a Texas company that owns patents for processing digital copies of checks shows how Wall Street banks have tremendous clout in Washington, the Times' Andrew Ross Sorkin writes in a column. The law could even be considered another backdoor bailout for banks, he wrote. Read More
U.S. Home Prices ‘Unlikely’ to Fall Further
July 3: Homes in the U.S. are the most affordable they’ve been in decades and prices may start to climb as soon as the third quarter, Housing and Urban Development Secretary Shaun Donovan said Today. > Read More
Some Banks Easing Terms on Loans Deemed as Risks
July 2: As millions of Americans struggle in foreclosure with little hope of relief, some banks are going to borrowers who are not even in default and cutting their debt or easing the mortgage terms, sometimes with no questions asked. > Read More
Average mortgage rates remained relatively steady in the latest week
July 1: The average rate for the 30-year fixed-rate mortgage rose by a basis point from the previous week to 4.51% while the average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage inched down three bps to another record low at 3.22% tracked by Freddie Mac, which ended June 30.
Mortgage Points closed up 0.15 point Friday and up 1.41 points for the week.
Permits for California Apartments Increased.
July 1: Housing permits rose sharply in May in California to their highest level of the year -- but the gain was entirely in the multifamily sector, with single-family production actually falling in the month.
New Equifax Report Shows Better Payment Behavior
In its latest national, monthly report on consumer credit trends, Equifax reports that U.S. consumer credit continues to show signs of improvement as the recovery progresses, even with strong unemployment and housing headwinds. > Read More
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