Sandy Slinkard

WELLS FARGO WILL MODIFY SECOND MORTGAGES

Sandy Slinkard — Thu, 18 Mar 2010 18:43:00 GMT

Daily Real Estate News | March 18, 2010 |

Wells Fargo & Co. has joined Bank of America Corp. as the first two banks to sign onto the federal government’s program to modify second mortgages.

Under the government’s plan, borrowers who have been extended loan modifications on first mortgages can now apply to reduce their second mortgages.

Analysts say banks have been reluctant to adopt this part of the government’s loan modification program because they continue to hold most second mortgages and forgiving them will be costly.

Source: The Associated Press (03/17/2010)

FANNIE MAE: RECOVERY IS MOVING FORWARD

Sandy Slinkard — Thu, 18 Mar 2010 18:41:00 GMT

Daily Real Estate News | March 18, 2010 |

The decline in home sales in February was a disappointment to the housing industry, but Fannie Mae’s analysts say it is temporary and a sustainable turnaround is likely by the end of the year.

Fannie Mae Chief Economist Doug Duncan points to evidence that a recovery is on its way, including an increase in consumer spending, an improving service sector, and the likelihood that employers will begin hiring soon.

"More favorable financial conditions overall keep us optimistic that we are moving forward with the recovery, albeit at a lower trajectory than previously forecast," Duncan said in a statement.

Source: Fannie Mae (03/17/2010

MORTGAGE VOLUME FALLS DESPITE FAVORABLE RATES

Sandy Slinkard — Thu, 18 Mar 2010 15:27:00 GMT

Daily Real Estate News | March 17, 2010 |

addthis_pub = 'rmostaff'; addthis_logo = 'http://www.addthis.com/images/yourlogo.png'; addthis_logo_background = 'EFEFFF'; addthis_logo_color = '666699'; addthis_brand = ''; addthis_options = 'delicious, digg, favorites, facebook, fark, google, reddit, magnoliacom, newsvine, furl, yahoo, technorati, twitter, icerocket'; document.write(' Share');Mortgage applications declined last week, despite the lowest interest rates in three months, the Mortgage Bankers Association reported.

Mortgage loan volume slipped 1.9 percent on a seasonally adjusted basis compared to the previous week. On an unadjusted basis, the index decreased 1.7 percent.

The seasonally adjusted purchase index decreased 2.3 percent compared to the previous week, while the unadjusted purchase index declined 1.8 percent. The purchase index was 13.9 percent lower than the same week a year ago.

The best fixed-rate mortgages were below 5 percent:

30-year fixed-rate mortgages decreased to 4.91 percent from 5.01 percent.
15-year fixed-rate mortgages decreased to 4.24 percent from 4.32 percent.
1-year ARMs decreased to 6.75 percent from 6.80 percent.

Source: Mortgage Bankers Association (03/17/2010)

Analysts Say Rates Should Remain Low

Sandy Slinkard — Tue, 16 Mar 2010 18:17:00 GMT

Daily Real Estate News | March 16, 2010

Projections about where credit rates will go in the next year vary widely, but most mortgage analysts think the effect of the Federal Reserve’s move away from the market won’t be dramatic.

Analysts at Credit Suisse and FTN Financial Capital Markets predict that mortgage rates will stay between 5 percent and 5.25 percent for the rest of the year. Moody's Economy.com projects about 5.7 percent, and Barclays Capital says 6 percent.

“There is a lot of private money on the sidelines waiting to buy mortgage securities once the Fed stops gobbling most of them up,” says Laurie Goodman, senior managing director at mortgage-bond trader Amherst Securities Group.

Source: The Wall Street Journal, James R. Hagerty (03/13/2010)

HOUSING EXPERTS SAY REAL ESTATE IS RECOVERING

Sandy Slinkard — Mon, 15 Mar 2010 18:50:00 GMT

Daily Real Estate News | March 15, 2010 |

addthis_pub = 'rmostaff'; addthis_logo = 'http://www.addthis.com/images/yourlogo.png'; addthis_logo_background = 'EFEFFF'; addthis_logo_color = '666699'; addthis_brand = ''; addthis_options = 'delicious, digg, favorites, facebook, fark, google, reddit, magnoliacom, newsvine, furl, yahoo, technorati, twitter, icerocket'; document.write(' Share');Some of the nation’s top economists believe the housing market has turned and better days are on the way for the housing industry.

Increases in jobs, credit, and affordable homes will overcome impediments such as rising interest rates, and the expiration of the Federal stimulus program to push the housing market toward recovery, says Dean Maki, chief U.S. economist for Barclays Capital.

“I would bet even odds that we’re at a bottom and that we’re going to see improvement in the coming months,” says Karl Case, co-creator of the S&P/Case-Shiller Home Price Index and a professor of economics at Wellesley College.

“The underlying trend is turning positive,” says Bruce Kasman, chief economist at JPMorgan Chase & Co.

Source: Bloomberg, Kathleen M. Howley and Rich Miller (03/15/2010)

FHA HEAD: DON'T RAISE DOWN PAYMENTS

Sandy Slinkard — Sat, 13 Mar 2010 14:41:00 GMT

Daily Real Estate News | March 12, 2010

Now is not the time to raise the downpayment requirement on a Federal Housing Administration loan, warns FHA Commissioner David Stevens.

Stevens, testifying before a committee of the U.S. House, said his agency would probably insure 300,000 fewer home loans per year if the mandatory down payment was raised from 3.5 percent to 5 percent — a 40 percent increase.

Congress has been considering various ways to put FHA on a sounder financial footing. Besides increasing the downpayment requirement, another suggestion under discussion is raising the upfront mortgage insurance premium to 2.25 percent of the loan amount, up from 1.75 percent currently.

The National Association of REALTORS® also opposes the proposal to raise the mandatory down payment for an FHA loan. The FHA remains financially strong because it has taken steps to ensure solid underwriting standards and responsible lending practices, said Charles McMillan, NAR immediate past president, in testimony before the House Subcommittee on Housing and Community Opportunity.

“As the leading advocate for housing issues, NAR believes that one of the best ways Congress can help strengthen FHA is to quickly consider and pass legislation that would make current loan limits permanent,” McMillan said. “It’s important to note that higher balance FHA loans perform better than lower balance ones. While some argue that higher balance loans put taxpayers at risk, such loans actually strengthen the program and reduce risk to the fund.”

Explaining that FHA has played an important role in the recent housing and economic crisis by filing the gap left by private lenders, McMillan said FHA insured almost 30 percent of single-family mortgages in 2009 and more than 50 percent of first-time buyer loans. “Historically, FHA’s market share has hovered between 10 and 15 percent of all loans. And when the private market is strong enough to return, we welcome a reduced FHA market share,” he said.

McMillan said NAR was also concerned that FHA wanted to decrease seller concessions to 3 percent. Reducing seller concessions could put homeownership out of reach for many buyers, he said, because it could require buyers to pay more at closing.

Source: Associated Press, Alan Zibel, and NAR (03/11/2010

VACATION HOME INTEREST ON THE RISE

Sandy Slinkard — Tue, 09 Mar 2010 18:18:00 GMT

Daily Real Estate News | March 9, 2010

The market for second homes is improving, but prices are still as much as 40 percent off the peak, Barron’s magazine observes.

Potential buyers include not only families but also investors, says Jan Reuter, who heads residential real estate at U.S. Trust Bank of America Private Wealth Management.

To entice its readers, Barron’s identified 10 locales with beautiful views, challenging golf, good fishing, fine restaurants and lots of good shopping.

Barron’s editors did warn its readers not to count on a quick flip. “Serious appreciation will require a better economy and, quite possibly, another big rally in stocks,” the magazine said.

Here are their favorites:

Maui
Kiawah Island, S.C.
The Hamptons
Park City, Utah
Aspen, Colo.
Pebble Beach, Calif.
Palm Beach
Captiva/Sanibel Island, Fla.
Asheville, N.C.
Gasparilla Island, Fla.

Source: Barron’s, Steven M. Sears (03/08/2010)

ZIPREALTY FINDS INVENTORY UP SLIGHTLY

Sandy Slinkard — Tue, 09 Mar 2010 18:15:00 GMT

Daily Real Estate News | March 9, 2010

The inventory of homes for sale was up 4.2 percent at the end of February, compared to the prior month in the 27 major metropolitan markets covered by ZipRealty Inc.

On average, over the last 27 years, the increase of houses on the market in February has been 3.4 percent, according to Ivy Zelman, CEO of Zelman & Associates research firm.

Zip’s data includes all the residential properties listed on the local multiple-listing services where it does business. Compared with January 2009 in the Zip markets, inventory was down about 19 percent.

Source: The Wall Street Journal, James R. Hagerty (03/08/2010

FEDERAL PROGRAM TO ENCOURAGE SHORT SALES

Sandy Slinkard — Mon, 08 Mar 2010 21:52:00 GMT

Daily Real Estate News | March 8, 2010 |

addthis_pub = 'rmostaff'; addthis_logo = 'http://www.addthis.com/images/yourlogo.png'; addthis_logo_background = 'EFEFFF'; addthis_logo_color = '666699'; addthis_brand = ''; addthis_options = 'delicious, digg, favorites, facebook, fark, google, reddit, magnoliacom, newsvine, furl, yahoo, technorati, twitter, icerocket'; document.write(' Share');Beginning April 5, the Obama administration will encourage delinquent borrowers to avoid foreclosure and instead give up their homes in short sales by streamlining the process.

The program will offer a cash payment to the home owner, as well as to the servicer and second-lien holder; and protect borrowers from future lender lawsuits for the unpaid mortgage balance.

To curtail fraud, lenders will have to consult real estate practitioners to assess home value and minimum acceptable offer; they then must accept any offer that is equal to or higher than that.

Source: The New York Times, David Streitfeld (03/08/10)

HOME OWNERS FIGHT PROPERTY TAX INCREASES

Sandy Slinkard — Mon, 08 Mar 2010 21:49:00 GMT

Daily Real Estate News | March 8, 2010 |

addthis_pub = 'rmostaff'; addthis_logo = 'http://www.addthis.com/images/yourlogo.png'; addthis_logo_background = 'EFEFFF'; addthis_logo_color = '666699'; addthis_brand = ''; addthis_options = 'delicious, digg, favorites, facebook, fark, google, reddit, magnoliacom, newsvine, furl, yahoo, technorati, twitter, icerocket'; document.write(' Share');Taxpayers in high property-tax states all over the country are fighting back, including packing up and moving to states where the property tax burdens are lower.

They find it particularly galling that tax bills continue to rise as home values decline, a common phenomenon. A recent survey by the National League of Cities reported that 25 percent of municipalities raised property taxes in 2009 to replace declining revenues.

In New Jersey and New York, voters threw incumbents they viewed as tax-and-spend officials out of office. In Michigan, there have been so many tax appeals that the tax court has 24,000 pending cases.

Some observers like Ted Lanzaro, a certified public accountant who handles taxes for clients in Connecticut, predict that people are running out of savings and some are simply going to stop paying taxes.

Source: The Wall Street Journal, M.P. McQueen (03/06/2010

FORCLOSED BORROWERS MAY GET LOANS AGAIN

Sandy Slinkard — Sun, 07 Mar 2010 16:10:00 GMT

Daily Real Estate News | March 5, 2010

Will people who currently face foreclosure or short sales or who walk away from their underwater properties ever be able to get financing to buy another home down the road?

Banks haven’t been very forthcoming on this issue. However, knowledgeable observers of the situation say that while it may take some time, the situation will right itself for most people.

Because bankrupt borrowers have eliminated their debts, they should "constitute attractive fodder for mortgage lenders," says University of Michigan law professor John Pottow, whose specialty is bankruptcy.

As home prices and the mortgage market stabilize, lenders will be motivated to lend to people who previously had financial troubles if they look like they can pay the next time around, says Alan Riegler, a consultant with CCG Catalyst, which advises banks.

"The lender who figures out how to do more of this case-by-case stuff cost-effectively is going to end up ahead of the pack," Riegler says.

Source: Inman News, Matt Carter (03/05/2010)

30-YEAR RATES DIP BACK BELOW 5 PERCENT

Sandy Slinkard — Sun, 07 Mar 2010 16:06:00 GMT

Daily Real Estate News | March 5, 2010

Freddie Mac documented a decline in mortgage rates during the week ended March 4, with 30-year fixed home loans slipping to 4.97 percent from 5.05 percent and 15-year interest averaging 4.33 percent.

Also, the Mortgage Bankers Association reported that its index of home loan applications jumped 15 percent during the week ended Feb. 26. Refinancing activity was up 17 percent, and purchase demand rose 9 percent.

Source: Kansas City Star (03/05/10

BUYERS WHO WAIT MAY LOSE A LOT

Sandy Slinkard — Tue, 02 Mar 2010 22:16:00 GMT

Daily Real Estate News | March 2, 2010

Potential home buyers who delay have a lot to lose.

First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.

Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).

Source: Money Magazine, Beth Braverman (03/02/2010)

BUYERS SHOULD CONSIDER PREPAYING MORTGAGE

Sandy Slinkard — Tue, 02 Mar 2010 14:02:00 GMT

Daily Real Estate News | March 1, 2010

Should home buyers with sufficient cash pay down their mortgages or put the extra money in investments or savings?

Financial experts say the choice depends on the home buyer's employment prospects, current savings, and investable assets.

If life looks a little uncertain, they advise putting the money in a safe place, like a savings account. But for people with more stable financial situations, paying down the mortgage can be a great investment, often providing a better return than a savings account.

Source: Washington Post, Ilyce R. Glink and Samuel J. Tamkin (02/27/2010)

FED: INTEREST RATES TO REMAIN LOW

Sandy Slinkard — Mon, 01 Mar 2010 16:30:00 GMT

Daily Real Estate News | February 25, 2010

Investors breathed a sigh of relief Wednesday when Federal Reserve Chair Ben Bernanke told Congress that interest rates are likely to remain low for an extended period. The economy, he said, "still requires support for recovery."

Investors see these low rates as a boon to a recovery of employment and business.

Bernanke’s announcement also took the edge off the news Wednesday that housing sales hit a new low in January.

"Even though nothing he said was particularly new, it was just enough to calm the ruffled feathers that were out there," said Jim McDonald, chief investment strategist at Northern Trust in Chicago.

Source: Associated Press, Tim Paradis (02/24/2010)