By Les Christie, staff writerNovember 22, 2010: 10:47 AM ET
NEW YORK (CNNMoney.com) -- There's a large number of homes, either already repossessed by lenders or very seriously delinquent, that are poised to be added to the already glutted regular supply of homes on the market.
This "shadow inventory" jumped 10% during the past year, to an eight-month supply at the current rate of home sales, according to a report issued Monday.
According to CoreLogic, a financial information provider, there were 2.1 million homes in this uncounted inventory as of the end of August, up from 1.9 million units 12 months earlier.
Adding the shadow inventory to the visible supply of homes on the market boosted the total housing-market supply to 6.3 million units from 6.1 million in August 2009. At the current sales rate, it would take 23 months to go through the entire visible and shadow inventory of homes -- more than three times the normal rate of six to seven months.
Continue reading here
Monday, November 29, 2010
Monday, November 15, 2010
Mortgage rates fall to fresh lows this week
by JANNA HERRON - Nov. 11, 2010 08:57 AM
AP Real Estate Writer
NEW YORK - Rates on fixed mortgages dropped to their lowest levels in decades this week after the Federal Reserve unveiled a massive bond-buying program to help spur economic growth.
Mortgage buyer Freddie Mac said Tuesday the average rate for 30-year fixed loans fell to 4.17 percent from 4.24 percent last week. That's the lowest on records dating back to 1971.
The average rate on 15-year fixed loans fell to 3.57 percent from 3.63 percent. That's the lowest since the survey began in 1991.
The Fed detailed plans last week to buy $600 billion in Treasury bonds. On Wednesday, the central bank gave more details, saying it plans to purchase $105 billion in Treasurys over the next month. The extra demand means Treasurys will produce lower yields for investors. Mortgage rates tend to track those yields.
Mortgage rates have been at or near historic lows since April as investors, concerned about the health of the global economy, shift their money into Treasurys, pushing down rates on the bonds and consumer and business loans.
Read more here
AP Real Estate Writer
NEW YORK - Rates on fixed mortgages dropped to their lowest levels in decades this week after the Federal Reserve unveiled a massive bond-buying program to help spur economic growth.
Mortgage buyer Freddie Mac said Tuesday the average rate for 30-year fixed loans fell to 4.17 percent from 4.24 percent last week. That's the lowest on records dating back to 1971.
The average rate on 15-year fixed loans fell to 3.57 percent from 3.63 percent. That's the lowest since the survey began in 1991.
The Fed detailed plans last week to buy $600 billion in Treasury bonds. On Wednesday, the central bank gave more details, saying it plans to purchase $105 billion in Treasurys over the next month. The extra demand means Treasurys will produce lower yields for investors. Mortgage rates tend to track those yields.
Mortgage rates have been at or near historic lows since April as investors, concerned about the health of the global economy, shift their money into Treasurys, pushing down rates on the bonds and consumer and business loans.
Read more here
Wednesday, November 10, 2010
Phoenix housing index fell for 2nd month
by Betty Beard - Nov. 5, 2010 12:00 AM
The Arizona Republic
Phoenix housing values have fallen for the second month in a row, a sign that the housing recovery could be retreating.
Arizona State University's Repeat Sales Index, which is considered one of the more reliable measures of housing values, estimates that prices fell another 4 percent in September compared with a year earlier.
That is on top of a 2 percent decline in over-the-year prices in August.
Karl Guntermann, an ASU real-estate professor, said it's still too early to call that the start of a new trend. But if the index shows a third decline next month, that would indicate a trend has begun. And it doesn't look good.
"Continuing weakness in the Phoenix economy, the flow of foreclosures into the market and the seasonal slowdown that occurs in housing toward the end of the year are reasons to be pessimistic about house prices," he said.
Continue reading here
The Arizona Republic
Phoenix housing values have fallen for the second month in a row, a sign that the housing recovery could be retreating.
Arizona State University's Repeat Sales Index, which is considered one of the more reliable measures of housing values, estimates that prices fell another 4 percent in September compared with a year earlier.
That is on top of a 2 percent decline in over-the-year prices in August.
Karl Guntermann, an ASU real-estate professor, said it's still too early to call that the start of a new trend. But if the index shows a third decline next month, that would indicate a trend has begun. And it doesn't look good.
"Continuing weakness in the Phoenix economy, the flow of foreclosures into the market and the seasonal slowdown that occurs in housing toward the end of the year are reasons to be pessimistic about house prices," he said.
Continue reading here
Wednesday, November 3, 2010
Banks ease up on foreclosures amid increased scrutiny
By Stephanie Armour and Julie Schmit, USA TODAY
In the Florida courtroom of Chief Judge Victor Tobin, there's been a marked change the past month in the pace of foreclosures that mortgage companies ask him to approve.
Tobin had been handling up to 200 cases a day in which delinquent borrowers weren't contesting mortgage servicers' motions seeking court approval to repossess their homes. Now, it's about 50 a day.
That's not the only difference the state judge has noticed in the wake of revelations since September that some mortgage servicers did not follow legal procedures in tens of thousands of foreclosures. In contested cases now, servicers are filing new affidavits stating that they or their lawyers have reviewed supporting documents — language missing in prior affidavits, says Tobin, chief judge of the Broward County Circuit Court.
METRO AREAS: Foreclosures rise in large U.S. cities.
INTERACTIVE MAP: Foreclosures by state.
He expects the case load to rise again in eight to 10 weeks, but for now, the mortgage industry's foreclosure machinery in Broward and other jurisdictions around the nation has slipped into a slower gear. Amid state and federal investigations into how homes are being taken away from delinquent borrowers, some judges are turning more critical eyes on foreclosure cases in the roughly 23 states where court approval is required, and some states such as New York and Maryland have adopted new rules to ensure they get a closer look. Meanwhile, heavy media coverage about foreclosure errors is encouraging more homeowners to hire lawyers to challenge foreclosure actions.
With more than 1 million homes in some stage of foreclosure, the pace of completed foreclosures could be slowed for months.
There's little question that the controversy has had an impact. It is at least partly responsible for a 6% drop in scheduled foreclosure auctions, to about 114,000, in the first 25 days of October compared with Sept. 1-25, according to RealtyTrac, a firm that collects data on foreclosure activity around the country.
"We're seeing a dramatic decrease in the number of (new) cases being scheduled and an increase in the number of foreclosure sales being canceled," says Circuit Court Judge Sandra Taylor, who handles cases in Tampa and in Key West, Fla.
Continue reading here.
In the Florida courtroom of Chief Judge Victor Tobin, there's been a marked change the past month in the pace of foreclosures that mortgage companies ask him to approve.
Tobin had been handling up to 200 cases a day in which delinquent borrowers weren't contesting mortgage servicers' motions seeking court approval to repossess their homes. Now, it's about 50 a day.
That's not the only difference the state judge has noticed in the wake of revelations since September that some mortgage servicers did not follow legal procedures in tens of thousands of foreclosures. In contested cases now, servicers are filing new affidavits stating that they or their lawyers have reviewed supporting documents — language missing in prior affidavits, says Tobin, chief judge of the Broward County Circuit Court.
METRO AREAS: Foreclosures rise in large U.S. cities.
INTERACTIVE MAP: Foreclosures by state.
He expects the case load to rise again in eight to 10 weeks, but for now, the mortgage industry's foreclosure machinery in Broward and other jurisdictions around the nation has slipped into a slower gear. Amid state and federal investigations into how homes are being taken away from delinquent borrowers, some judges are turning more critical eyes on foreclosure cases in the roughly 23 states where court approval is required, and some states such as New York and Maryland have adopted new rules to ensure they get a closer look. Meanwhile, heavy media coverage about foreclosure errors is encouraging more homeowners to hire lawyers to challenge foreclosure actions.
With more than 1 million homes in some stage of foreclosure, the pace of completed foreclosures could be slowed for months.
There's little question that the controversy has had an impact. It is at least partly responsible for a 6% drop in scheduled foreclosure auctions, to about 114,000, in the first 25 days of October compared with Sept. 1-25, according to RealtyTrac, a firm that collects data on foreclosure activity around the country.
"We're seeing a dramatic decrease in the number of (new) cases being scheduled and an increase in the number of foreclosure sales being canceled," says Circuit Court Judge Sandra Taylor, who handles cases in Tampa and in Key West, Fla.
Continue reading here.
Tuesday, November 2, 2010
Foreclosure Crisis: Stealth Stimulus for Defaulters
Real estate news and analysis from The Wall Street Journal
While delays in the foreclosure process are costing bond holders and mortgage servicers, defaulting homeowners living in–or even renting out–their homes are getting a pretty tidy subsidy, writes the WSJ’s Mark Whitehouse in today’s paper. That subsidy is worth about $2.6 billion a month, according to a WSJ analysis. That’s .25% of U.S. personal income, roughly equivalent to the benefit top earners receive from Bush-era tax breaks.
Will any of that money find its way back into the economy, as a stealth stimulus? It’s hard to say, writes Mr. Whitehouse. Some defaulters save their mortgage payments in the hopes that a mortgage modification will finally come through, others who have lost their jobs just need the money to keep on going–for food, car payments and the like.
Some defaulters are cashing in by renting out their homes. Joe Mayol, a real-estate agent in Palmdale, Calif., estimates that in his area about two-thirds of houses with defaulted mortgages are occupied, and half of those by renters. “People are getting money out of these houses,” he said.
Continue reading here.
While delays in the foreclosure process are costing bond holders and mortgage servicers, defaulting homeowners living in–or even renting out–their homes are getting a pretty tidy subsidy, writes the WSJ’s Mark Whitehouse in today’s paper. That subsidy is worth about $2.6 billion a month, according to a WSJ analysis. That’s .25% of U.S. personal income, roughly equivalent to the benefit top earners receive from Bush-era tax breaks.
Will any of that money find its way back into the economy, as a stealth stimulus? It’s hard to say, writes Mr. Whitehouse. Some defaulters save their mortgage payments in the hopes that a mortgage modification will finally come through, others who have lost their jobs just need the money to keep on going–for food, car payments and the like.
Some defaulters are cashing in by renting out their homes. Joe Mayol, a real-estate agent in Palmdale, Calif., estimates that in his area about two-thirds of houses with defaulted mortgages are occupied, and half of those by renters. “People are getting money out of these houses,” he said.
Continue reading here.
Homeownership Rate at Lowest Level in a Decade
Real estate news and analysis from The Wall Street Journal
The nation’s homeownership rate remained at its lowest in more than a decade, the AP’s Alan Zwibel reports, hampered by a rise in foreclosures and weak demand for housing.
The percentage of households that owned their homes was unchanged at 66.9% in the July-September quarter, the Census Bureau said Tuesday. That’s the same as the April-June quarter. The last time the rate was lower was in 1999, when the rate was 66.7%. The homeownership rate was around 64% from 1985 through 1995. It then rose dramatically during the Clinton and Bush administrations, hitting a peak of more than 69% in 2004 at the height of the housing boom.
Continue reading here.
The nation’s homeownership rate remained at its lowest in more than a decade, the AP’s Alan Zwibel reports, hampered by a rise in foreclosures and weak demand for housing.
The percentage of households that owned their homes was unchanged at 66.9% in the July-September quarter, the Census Bureau said Tuesday. That’s the same as the April-June quarter. The last time the rate was lower was in 1999, when the rate was 66.7%. The homeownership rate was around 64% from 1985 through 1995. It then rose dramatically during the Clinton and Bush administrations, hitting a peak of more than 69% in 2004 at the height of the housing boom.
Continue reading here.
Obama administration sings new tune on foreclosures
By Tami Luhby, senior writerNovember 2, 2010: 9:21 AM ET
NEW YORK (CNNMoney) -- The Obama administration is singing a different tune about foreclosures.
A year ago, officials focused on stemming the foreclosure tide. Now they are touting the need for foreclosures to rebuild the housing market.
Last week Phyllis Caldwell, head of the Treasury Department's Homeownership Preservation Office, told a congressional panel that "an important part of ensuring longer-term stability in the market is to enable properties to be resold to families who can afford to purchase them."
And White House Press Secretary Robert Gibbs last month told reporters that without sales of homes in distressed areas the "recovery in the housing market stops. It's frozen."
"That obviously can have -- we believe and others believe -- a very negative and detrimental impact to our economic recovery efforts and the housing markets in states that have been hardest hit," Gibbs said.
Continue reading here.
NEW YORK (CNNMoney) -- The Obama administration is singing a different tune about foreclosures.
A year ago, officials focused on stemming the foreclosure tide. Now they are touting the need for foreclosures to rebuild the housing market.
Last week Phyllis Caldwell, head of the Treasury Department's Homeownership Preservation Office, told a congressional panel that "an important part of ensuring longer-term stability in the market is to enable properties to be resold to families who can afford to purchase them."
And White House Press Secretary Robert Gibbs last month told reporters that without sales of homes in distressed areas the "recovery in the housing market stops. It's frozen."
"That obviously can have -- we believe and others believe -- a very negative and detrimental impact to our economic recovery efforts and the housing markets in states that have been hardest hit," Gibbs said.
Continue reading here.
Subscribe to:
Posts (Atom)
