Pending home sales rose less than expected in May but are still at the highest level since 2006. The National Association of Realtors’ index of pending home sales rose less than expected, by 0.9% to a seasonally-adjusted 112.6. Analysts had expected a 1-1.2% increase.
“The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring,” NAR chief economist Lawrence Yun said.
Last week, the association saw a sharp pickup in existing home sales following a decline in April. Sales of new single-family houses in May 2015 were at a seasonally adjusted annual rate of 546,000, which is up 2.2% from April.
Federal Housing Finance Agency has been working towards a plan to open what many we see as underwriting standards that are too restrictive.
Mortgage giants Fannie Mae and Freddie Mac, their regulator and lenders are close to an agreement that could greatly expand mortgage credit while helping lenders protect themselves from charges of making bad loans, according to people familiar with the matter.
If the agreement is completed, lenders may be more willing to lend to borrowers with lower credit scores and smaller down payments.
Now that lenders are starting to remove some of the credit overlays, it is time to improve the growth of homeownership in the country
We expect FHFA to report the steps to further move and clarify lender liability and support the return of the 97% LTV product at the GSEs, Fannie Mae and Freddie Mac.
Fannie Mae and Freddie Mac have recouped tens of billions of dollars in penalties from lenders in recent years over claims that the lenders made underwriting mistakes on loans they sold to the mortgage giants.
However, Lenders have blamed those penalties for tight credit conditions and for prompting them to make loans only to borrowers with near-pristine credit.
We hope these initiatives will have a meaningful impact on the mortgage market, and we can see positive changes in the direction of the mortgages industry after years of tightening credit issues.
Next Tuesday will see the existing home sales report for September, on Thursday the FHFA purchase-only house price index for August, and Friday the new home sales report.
Highest level of home equity loans since June 2009. A total of 797,865 home equity lines of credit were originated nationwide, up 20.6% from a year ago and the highest level since the 12 months ending June 2009, according to RealtyTrac.
The report also shows HELOC originations accounted for 15.4% of all loan originations nationwide during the first eight months of 2014, the highest percentage since 2008.
“This recent rise in HELOC originations indicates that an increasing number of homeowners are gaining confidence in the strength of the housing recovery and, more importantly, have regained much of their home equity lost during the housing crisis,” said Daren Blomquist.
Among the nation’s 50 largest metropolitan statistical areas with HELOC data available, 49 posted year-over-year increases in HELOC originations in the 12 months ending in June 2014.
Metro areas with the biggest year-over-year increase in HELOC originations were Riverside-San Bernardino in Southern California (87.7% increase), Las Vegas (85.1% increase), Cincinnati (81.0% increase), Sacramento (65.1% increase), and Phoenix (60.1% increase).
Fannie Mae is set to raise the benchmark interest rate for its Standard Modification program. Fannie Mae will raise its required interest rate for standard modifications from 4.375% to 4.5%. The rate was lowered from 4.5% to 4.375% on Sept. 15, but will now rise again in one week. Fannie Mae announced the change on Tuesday in an email sent to its servicers.
When the program began in Jan. 2012, Fannie’s benchmark interest rate was 4.625%. Fannie lowered the interest rate to 4.25% in Sept. 2012, before dropping it to 4% on Dec. 1, 2012.
“Fannie Mae Standard Modification interest rate is not determined on a preset schedule,” Fannie said in the note to its servicers. “The interest rate is subject to periodic adjustments based on an evaluation of prevailing market conditions.”
Fannie also noted that any loan modification requests that were approved at the previous rate are not eligible to be resubmitted for approval under the new modification rule
In addition, the creators of the so-called Wealth Building Home Loan, allows home buyers to build equity at a much faster clip than they would with a standard 30-year loan. Typically, the monthly payment on a 15-year loan is higher than that on a 30-year loan. But the loan amortizes much more quickly, meaning you build wealth — or equity — faster.
According to the latest Federal Reserve Survey of Consumer Finances, an owner’s net worth is 36 times greater than that of a renter. The survey found that the average owner’s net worth is $194,500, whereas a renter’s is $5,400.
La venta de casas nuevas en el mes de Agosto incrementó notablemente resultando en una tasa de 504,000, más que en Julio que fueron de 427,000, la tasa más rápida en 6 años y el salto más grande en ventas desde Enero de 1992.
Las mayores ganancias y en gran medida la razón para el considerable aumento fueron las ventas en la región oeste, uno de los dos mayores mercados de vivienda, junto con la región sur.
La venta de casas nuevas en la región oeste era un 50% en Julio.
La región sur vio un aumento del 8%. El sur es la región más grande de ventas, superando todas las demás regiones combinadas.
El precio mediano de las ventas de viviendas nuevas vendidas en Agosto de 2014 fue $275.600; el precio promedio de venta fue de $347.900.
There has never been a better time to buy a home; the advantage is on the buyer side. Buying is cheaper than renting in most markets. More people want to be homeowners, even younger buyers. A recent Fannie Mae survey of younger renters and buyers finds out that younger renters prefer owning. They don’t want to be renters – 90% would prefer to be homeowners.
Mortgage rates have dropped across all loan types including FHA loans, USDA loans, VA loans, and conventional loans backed by Fannie Mae and Freddie Mac, and 30-year rates are at their best levels of 2014.
Inventory is down but so is the buyer pool. That means prices may be coming down. You may well have less competition for homes right now, especially if you’re in the ultra-competitive first time buyer market. This means that your chances of finding a home—and getting it for the right price—look good.
Credit and affordability issues remain. If you are financially and emotionally prepared, it makes sense to write a check list of what you need to get approved for a mortgage; order your credit reports; get your FICO score; pay stubs and bank statements; shop for the best mortgage rates; cobble together a down payment; meet with your choice of lender, and find out what your monthly payments will be for the home of your dreams, then GO for it!
A new Legislation would open a bigger credit box for millions of homebuyers. The ranking democrat on the House Financial Services Committee wants to fundamentally change the rules on how lenders report consumer payments and debts to the credit bureaus, which could create a new path to homeownership for millions of Americans currently, shut out by mortgage lending restrictions.
These changes are part of a large shift in mortgage finance reform to open the credit box wider for potential homeowners. Some of the changes in this legislation would remove settled debts, remove negative reports after four years instead of seven, and would extend the removal of student debt defaults in private debts after a consumer makes nine consecutive, on-time payments.
Credit reports will no longer be used exclusively by lenders in making a credit decision. According to the Federal Trade Commission, one in five, or roughly 40 million consumers, have had an error on one of their credit reports, and about 10 million consumers have errors that could increase the cost of credit available to them.
The House Financial Services Committee will discuss U.S. Rep. Maxine Waters’ bill, the Fair Credit Reporting Improvement Act of 2014, on Wednesday afternoon at 2 p.m. ET.
Prices should stabilize this year. Lender’s regulation, consumer confidence, investors tapering purchases, local economics, and rising home prices have forced participants to continually adjust to a market that has been anything but stable.
Generally speaking, we see price growth, which should help boost the confidence and purchase activity from buyers on the fence. Looking at home price trends by tier, it’s apparent the impact of investor activity has been concentrated in the low price tier segment. There is a good price growth potential and could motivate enough buyers to sustain an overall rate of home price growth consistent with historical norms.
Credit and affordability issues remain. Mortgage rates have dropped across all loan types including FHA loans, USDA loans, VA loans, and conventional loans backed by Fannie Mae and Freddie Mac, and 30-year rates are at their best levels of 2014.