Daily Real Estate News | March 3, 2010 |
It's Getting Easier to Get a Jumbo Loan
The jumbo loan market is starting to ease up, maybe even a thaw, making it easier for move-up buyers to borrow and get their hands on a JUMBO LOAN.
Rates on jumbo loans of more than $729,750 in the highest-priced markets went up during the financial crisis and lending standards tightened and squeezed to the point where borrowers couldn’t refinance or even get a new loan.
In the last couple of weeks, the average interest rate on a 30-year fixed-rate jumbo fell to 5.79 percent, a five-year low, according to rate tracker Informa Research Services. Rates are even lower on hybrid adjustables.
The availability of these loans suggests that banks are feeling more confident since Fannie Mae, Freddie Mac, and the Federal Housing Administration do not insure them.
Source: Los Angeles Times, E. Scott Reckard (02/28/2010)
Daily Real Estate News | March 3, 2010 |
Boomers Ready for Retirement Housing
New news and according to John Migliaccio, director of research for MetLife's Mature Market organization, more than 78 million baby boomers, born between 1946 to 1964, will reach age 55 over the next 10 years.
John and other trend spotters believe this dominant group of home owners will lead the industry out of its slump.
Baby Boomers approaching retirement continue to be interested in buying into active-adult communities, but their moves are slowed due to a decline in the value of both their retirement savings and their current homes. To encourage seniors to find a way, 51 percent of builders of active-adult housing cut prices in the third quarter of 2009 – often as much as 25 percent or more – according to a survey by the National Association of Home Builders.
Practitioners point out that new isn’t always best. Buying an existing home in an active adult community can be a particularly good deal because these communities have extensive amenities, including golf courses and gyms. Some new construction projects on which builders have trimmed prices are not nearly as well equipped.
Source: Investor’s Business Daily, Joe Gose (02/25/2010)
Daily Real Estate News | March 3, 2010 |
The Road to Wealth Is Well Wired
Cities with the most highly educated residents and commensurately high incomes also are the most wired, a factor that is increasingly important as the economy moves online.
Forbes magazine compiled a list of the most-wired cities by considering the percentage of Internet users with high-speed connections, the number of companies providing broadband Internet in the area and the number of public wireless hotspots.
The top-10 cities are:
• Raleigh, N.C.
• Atlanta
• Seattle
• San Francisco
• Washington, D.C.
• Colorado Springs, Colo.
• Denver
• Baltimore
• Orlando
• Portland, Ore.
Source: Forbes, Elizabeth Woyke (03/02/2010)
Daily Real Estate News | March 3, 2010 |
CitiMortgage Tests New Foreclosure Alternative
Major lender CitiMortgage is testing a new way to take back properties that skirts foreclosure and promises to avoid the problems associated with eviction.
In this transaction, known as deed in lieu of foreclosure, the home owner turns over the deed to the bank in exchange for the lender’s promise not to foreclose. Typically, the borrower can remain in the property for a short period of time until they are able to move, but they must leave the home in good condition.
To qualify, Citi borrowers must be 90 days late on their payments and they must have only one lien on the property.
Citi is only expecting about 1,000 borrowers to qualify for the program because most people facing foreclosure have second mortgages.
Source: The New York Times, Bob Tedeschi (02/28/2010)
Daily Real Estate News | March 3, 2010 |
Mortgage Windfall Misses Many
Erosion of home equity, stricter lending criteria, higher fees, and declining incomes have prevented many mortgage borrowers from refinancing.
About 37 percent of borrowers with 30-year conforming fixed loans have rates of 6 percent or higher, but data from the Mortgage Bankers Association and other organizations shows muted refi activity for current rates at near-historic lows of about 5 percent.
Refi activity has been limited to borrowers who need it the least; savings have largely gone to "very, very good credit borrowers and it really isn't going very far down the credit spectrum," says MBA's Michael Fratantoni.
Source: Wall Street Journal Nick Timiraos (03/03/10)
March 3, 2010 By George Ratiu, Research Economist
Daily Forecast Update
• GDP 2010 Q1: +2.4%
• GDP 2010 Q2: +2.1%
• GDP 2010 Q3: +2.5%
• Unemployment rate by mid-2010: 10.1%
• Average 30-year fixed mortgage rate by mid-2010: 5.4%
What does today's data mean for REALTORS® and consumers?
• In a positive development, business activity in service industries is growing. For the second month in a row, purchasing and supply executives indicated that activity and new orders are expanding. In addition, the decline in service employment is slowing.
• Also, a report issued by ADP, a private payroll processing firm, showed that employment declined by fewer jobs than anticipated. A bright spot in the report was provided by manufacturing employment, which expanded in February.
• Spurred by a drop in interest rates below 5.0 percent, mortgage applications posted a noticeable jump last week, driven by strong refinancing activity.
Institute for Supply Management Non-Manufacturing Index (ISM-NMI)
• The ISM-NMI reached 53.0 in February, a second consecutive advance. The index posted a value of 50.5 percent in January. A level of 50 or higher indicates expansion in the services sector. Based on February’s reading, the economy is in a moderate expansion mode.
• The Business Activity index grew 2.6 points to 54.8 percent in February, while the Employment Index advanced four points to 48.6 percent. The New Orders Index also increased, to 55.0 percent, a 0.3-point gain
• Based on industry category, February had nine industries with growth patterns: Information; Arts, Entertainment & Recreation; Transportation & Warehousing; Public Administration; Professional, Scientific & Technical Services; Other Services; Retail Trade; Wholesale Trade; and Finance & Insurance.
• Meanwhile, there were eight industry sectors that contracted month-over-month: Educational Services; Health Care & Social Assistance; Management of Companies & Support Services; Construction; Utilities; Accommodation & Food Services; Real Estate, Rental & Leasing; and Mining.
Mortgage Bankers Association Weekly Mortgage Applications
• Mortgage applications for home purchases and refinances, as measured by the Market Composite Index, increased 14.6 percent in the past week.
• The Refinance Index, tracking applications for refinance, jumped 17.2 percent from the previous week. The Purchase Index advanced 9.0 percent.
• Mortgage refinancing activity comprised 69.1 percent of total applications.
• Mortgage rates (fixed-rate 30-year), according to the survey, declined to 4.95 percent nationally, from 5.03 last week.
ADP Employment
• ADP reported that private nonfarm employment decreased 20,000 from January to February.
• Employment in the service sector gained 17,000 jobs in February. The goods-producing sector lost 37,000 jobs. Notably, within this sector, employment in manufacturing industries added 3,000 jobs.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®
California New-Home Production Rebounds in January, CBIA Announces
February 24, 2010 SACRAMENTO – New-home building in California rebounded in January from a year earlier, but homebuilding officials cautioned against calling it a recovery as the numbers for January 2009 were extremely low, the California Building Industry Association announced today. “It’s great to see some positive activity in the homebuilding industry, but given the fact that we’re comparing this month to one of the lowest months on record doesn’t exactly bring a housing recovery to mind,” said Liz Snow, CBIA’s President and CEO. “Still, it’s nice to see some increase in homebuilding activity.” According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,979 total housing units in January, up 48 percent from the same month a year ago but down 18 percent from December. Permits for single-family homes totaled 1,908, up 50 percent from January 2009 but down 28 percent from the previous month, while multifamily permits totaled 1,071, up 45 percent from a year ago and up 11 percent from December. Ben Bartolotto, Research Director for CIRB, noted that the monthly decreases from December to January were typical as January is usually one of the weakest months for housing starts. He also noted any enthusiasm for the year-over-year increases seen in January should be tempered with the fact that the numbers for January 2009 were extremely low and posted the lowest annual rate on record. CIRB is forecasting a modest recovery for 2010 with permits being pulled for 52,000 total units, up slightly from the record-low 36,289 permits pulled in 2009. Snow added that in order to capitalize on the strong start for 2010, lawmakers should enact the new homebuyer tax credit proposed under Governor Schwarzenegger’s jobs package as soon as possible to keep the positive momentum going. “The tax credit proposal will give a much needed shot in the arm to the housing industry and help build on this momentum by stimulating the housing market, clearing out inventory, and reigniting job-generating home construction,” said Snow. “Recent studies show that a healthy housing industry is a prolific job and economic generator, contributing hundreds of thousands of jobs and billions of dollars to the state’s economy each year. Enacting the credit would go a long way towards putting more people back to work and jumpstarting a recovery in our overall economy.”
###
The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association's Web site, www.cbia.org. The Construction Industry Research Board (CIRB) is a nonprofit research center established in 1974 to provide statistical information on the California building and construction industry. More information is available on the CIRB Web site, www.cirbdata.com.
2010 HOME BUYER'S FAIR
Whether you're a first-time home buyer, or hoping to invest in foreclosures, the Southern California Home Buyer's Fair, sponsored by the Los Angeles Times and the CALIFORNIA ASSOCIATION OF REALTORS®, offers a free, two-day primer on the home-buying process. This must-attend event is packed with more than 50 educational "how-to" seminars and a large exhibit hall, designed to help you navigate today's real estate market with confidence and peace of mind.
The Southern California Homebuyer's Fair
is sponsored by the Los Angeles Times and the CALIFORNIA ASSOCIATION OF REALTORS®.
LOCATION: The Los Angeles Convention Center in downtown Los Angeles; 1201 S. Figueroa St., Los Angeles, CA 90015.
DATE: Saturday, March 13, 2010 Sunday, March 14, 2010
ADMISSION: Free to the public.
EVENTS: More than 50 educational "how-to" seminars designed to help home buyers navigate today's real estate market with confidence and peace of mind.
EXHIBITORS: The Southern California Home Buyer's Fair also will feature more than 65 exhibit booths where visitors can obtain information from industry experts about a vast range of programs pertaining to homeownership and the home-buying process.
It's Getting Easier to Get a Jumbo Loan
The jumbo loan market is starting to ease up, maybe even a thaw, making it easier for move-up buyers to borrow and get their hands on a JUMBO LOAN.
Rates on jumbo loans of more than $729,750 in the highest-priced markets went up during the financial crisis and lending standards tightened and squeezed to the point where borrowers couldn’t refinance or even get a new loan.
In the last couple of weeks, the average interest rate on a 30-year fixed-rate jumbo fell to 5.79 percent, a five-year low, according to rate tracker Informa Research Services. Rates are even lower on hybrid adjustables.
The availability of these loans suggests that banks are feeling more confident since Fannie Mae, Freddie Mac, and the Federal Housing Administration do not insure them.
Source: Los Angeles Times, E. Scott Reckard (02/28/2010)
Daily Real Estate News | March 3, 2010 |
Boomers Ready for Retirement Housing
New news and according to John Migliaccio, director of research for MetLife's Mature Market organization, more than 78 million baby boomers, born between 1946 to 1964, will reach age 55 over the next 10 years.
John and other trend spotters believe this dominant group of home owners will lead the industry out of its slump.
Baby Boomers approaching retirement continue to be interested in buying into active-adult communities, but their moves are slowed due to a decline in the value of both their retirement savings and their current homes. To encourage seniors to find a way, 51 percent of builders of active-adult housing cut prices in the third quarter of 2009 – often as much as 25 percent or more – according to a survey by the National Association of Home Builders.
Practitioners point out that new isn’t always best. Buying an existing home in an active adult community can be a particularly good deal because these communities have extensive amenities, including golf courses and gyms. Some new construction projects on which builders have trimmed prices are not nearly as well equipped.
Source: Investor’s Business Daily, Joe Gose (02/25/2010)
Daily Real Estate News | March 3, 2010 |
The Road to Wealth Is Well Wired
Cities with the most highly educated residents and commensurately high incomes also are the most wired, a factor that is increasingly important as the economy moves online.
Forbes magazine compiled a list of the most-wired cities by considering the percentage of Internet users with high-speed connections, the number of companies providing broadband Internet in the area and the number of public wireless hotspots.
The top-10 cities are:
• Raleigh, N.C.
• Atlanta
• Seattle
• San Francisco
• Washington, D.C.
• Colorado Springs, Colo.
• Denver
• Baltimore
• Orlando
• Portland, Ore.
Source: Forbes, Elizabeth Woyke (03/02/2010)
Daily Real Estate News | March 3, 2010 |
CitiMortgage Tests New Foreclosure Alternative
Major lender CitiMortgage is testing a new way to take back properties that skirts foreclosure and promises to avoid the problems associated with eviction.
In this transaction, known as deed in lieu of foreclosure, the home owner turns over the deed to the bank in exchange for the lender’s promise not to foreclose. Typically, the borrower can remain in the property for a short period of time until they are able to move, but they must leave the home in good condition.
To qualify, Citi borrowers must be 90 days late on their payments and they must have only one lien on the property.
Citi is only expecting about 1,000 borrowers to qualify for the program because most people facing foreclosure have second mortgages.
Source: The New York Times, Bob Tedeschi (02/28/2010)
Daily Real Estate News | March 3, 2010 |
Mortgage Windfall Misses Many
Erosion of home equity, stricter lending criteria, higher fees, and declining incomes have prevented many mortgage borrowers from refinancing.
About 37 percent of borrowers with 30-year conforming fixed loans have rates of 6 percent or higher, but data from the Mortgage Bankers Association and other organizations shows muted refi activity for current rates at near-historic lows of about 5 percent.
Refi activity has been limited to borrowers who need it the least; savings have largely gone to "very, very good credit borrowers and it really isn't going very far down the credit spectrum," says MBA's Michael Fratantoni.
Source: Wall Street Journal Nick Timiraos (03/03/10)
March 3, 2010 By George Ratiu, Research Economist
Daily Forecast Update
• GDP 2010 Q1: +2.4%
• GDP 2010 Q2: +2.1%
• GDP 2010 Q3: +2.5%
• Unemployment rate by mid-2010: 10.1%
• Average 30-year fixed mortgage rate by mid-2010: 5.4%
What does today's data mean for REALTORS® and consumers?
• In a positive development, business activity in service industries is growing. For the second month in a row, purchasing and supply executives indicated that activity and new orders are expanding. In addition, the decline in service employment is slowing.
• Also, a report issued by ADP, a private payroll processing firm, showed that employment declined by fewer jobs than anticipated. A bright spot in the report was provided by manufacturing employment, which expanded in February.
• Spurred by a drop in interest rates below 5.0 percent, mortgage applications posted a noticeable jump last week, driven by strong refinancing activity.
Institute for Supply Management Non-Manufacturing Index (ISM-NMI)
• The ISM-NMI reached 53.0 in February, a second consecutive advance. The index posted a value of 50.5 percent in January. A level of 50 or higher indicates expansion in the services sector. Based on February’s reading, the economy is in a moderate expansion mode.
• The Business Activity index grew 2.6 points to 54.8 percent in February, while the Employment Index advanced four points to 48.6 percent. The New Orders Index also increased, to 55.0 percent, a 0.3-point gain
• Based on industry category, February had nine industries with growth patterns: Information; Arts, Entertainment & Recreation; Transportation & Warehousing; Public Administration; Professional, Scientific & Technical Services; Other Services; Retail Trade; Wholesale Trade; and Finance & Insurance.
• Meanwhile, there were eight industry sectors that contracted month-over-month: Educational Services; Health Care & Social Assistance; Management of Companies & Support Services; Construction; Utilities; Accommodation & Food Services; Real Estate, Rental & Leasing; and Mining.
Mortgage Bankers Association Weekly Mortgage Applications
• Mortgage applications for home purchases and refinances, as measured by the Market Composite Index, increased 14.6 percent in the past week.
• The Refinance Index, tracking applications for refinance, jumped 17.2 percent from the previous week. The Purchase Index advanced 9.0 percent.
• Mortgage refinancing activity comprised 69.1 percent of total applications.
• Mortgage rates (fixed-rate 30-year), according to the survey, declined to 4.95 percent nationally, from 5.03 last week.
ADP Employment
• ADP reported that private nonfarm employment decreased 20,000 from January to February.
• Employment in the service sector gained 17,000 jobs in February. The goods-producing sector lost 37,000 jobs. Notably, within this sector, employment in manufacturing industries added 3,000 jobs.
This is one in a series of commentaries by the Research staff of the National Association of REALTORS®
California New-Home Production Rebounds in January, CBIA Announces
February 24, 2010 SACRAMENTO – New-home building in California rebounded in January from a year earlier, but homebuilding officials cautioned against calling it a recovery as the numbers for January 2009 were extremely low, the California Building Industry Association announced today. “It’s great to see some positive activity in the homebuilding industry, but given the fact that we’re comparing this month to one of the lowest months on record doesn’t exactly bring a housing recovery to mind,” said Liz Snow, CBIA’s President and CEO. “Still, it’s nice to see some increase in homebuilding activity.” According to statistics compiled by the Construction Industry Research Board (CIRB), permits were pulled for 2,979 total housing units in January, up 48 percent from the same month a year ago but down 18 percent from December. Permits for single-family homes totaled 1,908, up 50 percent from January 2009 but down 28 percent from the previous month, while multifamily permits totaled 1,071, up 45 percent from a year ago and up 11 percent from December. Ben Bartolotto, Research Director for CIRB, noted that the monthly decreases from December to January were typical as January is usually one of the weakest months for housing starts. He also noted any enthusiasm for the year-over-year increases seen in January should be tempered with the fact that the numbers for January 2009 were extremely low and posted the lowest annual rate on record. CIRB is forecasting a modest recovery for 2010 with permits being pulled for 52,000 total units, up slightly from the record-low 36,289 permits pulled in 2009. Snow added that in order to capitalize on the strong start for 2010, lawmakers should enact the new homebuyer tax credit proposed under Governor Schwarzenegger’s jobs package as soon as possible to keep the positive momentum going. “The tax credit proposal will give a much needed shot in the arm to the housing industry and help build on this momentum by stimulating the housing market, clearing out inventory, and reigniting job-generating home construction,” said Snow. “Recent studies show that a healthy housing industry is a prolific job and economic generator, contributing hundreds of thousands of jobs and billions of dollars to the state’s economy each year. Enacting the credit would go a long way towards putting more people back to work and jumpstarting a recovery in our overall economy.”
###
The California Building Industry Association is a statewide trade association representing thousands of homebuilders, remodelers, subcontractors, architects, engineers, designers, and other industry professionals. More information is available on the Association's Web site, www.cbia.org. The Construction Industry Research Board (CIRB) is a nonprofit research center established in 1974 to provide statistical information on the California building and construction industry. More information is available on the CIRB Web site, www.cirbdata.com.
2010 HOME BUYER'S FAIR
Whether you're a first-time home buyer, or hoping to invest in foreclosures, the Southern California Home Buyer's Fair, sponsored by the Los Angeles Times and the CALIFORNIA ASSOCIATION OF REALTORS®, offers a free, two-day primer on the home-buying process. This must-attend event is packed with more than 50 educational "how-to" seminars and a large exhibit hall, designed to help you navigate today's real estate market with confidence and peace of mind.
The Southern California Homebuyer's Fair
is sponsored by the Los Angeles Times and the CALIFORNIA ASSOCIATION OF REALTORS®.
LOCATION: The Los Angeles Convention Center in downtown Los Angeles; 1201 S. Figueroa St., Los Angeles, CA 90015.
DATE: Saturday, March 13, 2010 Sunday, March 14, 2010
ADMISSION: Free to the public.
EVENTS: More than 50 educational "how-to" seminars designed to help home buyers navigate today's real estate market with confidence and peace of mind.
EXHIBITORS: The Southern California Home Buyer's Fair also will feature more than 65 exhibit booths where visitors can obtain information from industry experts about a vast range of programs pertaining to homeownership and the home-buying process.
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