Mortgage Rates to End Soon? Only Time Will Tell The Federal Reserve remains on course to wind down its purchases of mortgage-backed securities at the end of March, but would consider resuming them if mortgage rates shoot up with unintended consequences for the economy, according to a Fed official. http://www.ncrealtors.org/news_display.cfm?nid=1204
Battling Back, Home Builders Cut Prices, Work Faster Home builders have lost half their share of the U.S. housing market in the past two years, largely because of competition from cheap foreclosed houses. In 2009, only 7.6 percent of the homes sold were newly constructed, down from the average of about 16 percent. But now home builders are fighting back, cutting prices, promising to complete homes faster, and warning about the risks of buying foreclosed property. http://online.wsj.com/article/SB1000142405274870 3422904575039691675728982.html?mod=WSJ_Real+Estate_LeftTopNews
Foreclosures Decline for Fourth-Straight Month Foreclosures declined 8 percent in November compared with October, the fourth-straight month that U.S. foreclosures have declined since hitting an all-time high in July, according to online foreclosure marketer RealtyTrac. http://www.realtor.org/RMODaily.nsf/pages/News2009121001?OpenDocument
A Better Forecast on Mortgage, Credit Delinquencies After three straight years of dramatic leaps in mortgage delinquencies, the tide should finally turn next year, according to a new forecast by TransUnion, the credit-reporting company. The company also expects credit-card delinquencies to decline through most of 2010. http://www.philly.com/philly/business/78846777.html
Home Sales Rise to Highest Level in Over Two Years Home sales surged for the second month in a row in October, climbing to the highest level in over two years as first-time buyers rushed to take advantage of what was expected to be an expiring tax credit. Home sales nationwide are now up nearly 36 percent from their bottom in January. http://www.msnbc.msn.com/id/34105403/ns/business-real_estate
Bernanke: Housing in the Coming Year is Going to be a Relative Bright Spot Federal Reserve chairman Ben Bernanke put out a forecast last week that included some important observations on housing. Speaking to the Economic Club of New York, Bernanke predicted housing in the coming year will be a helpful driver of national economic growth. http://realtytimes.com/rtpages/20091124_realestateoutlook.htm
Nine Consecutive Gains for Pending Home Sales Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of REALTORS®. Sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. http://www.realtor.org/RMODaily.nsf/pages/News2009120101?OpenDocument
Guidelines Aim to Ease Short Sales The Obama administration laid out final guidelines earlier this week that should make it easier for some financially troubled borrowers to sell their homes. The guidelines are designed to encourage the use of short sales, as well as make it easier for borrowers to voluntarily transfer ownership of properties through a "deed in lieu of foreclosure." http://online.wsj.com/article/SB125963239592170665.html
Existing-Home Sales Record Another Big Gain in October Driven by the first-time homebuyer tax credit, existing-home sales showed another big gain in October with a strong uptrend established over the past seven months, according to the National Association of REALTORS®. http://www.realtor.org/press_room/news_releases/2009/11/record_big
Commercial Real Estate Forecast Uncertain
The recent deep economic downturn has had a pronounced impact on commercial real estate sectors, but credit availability is the big unknown that will determine how soon commercial markets recover. http://www.realtor.org/press_room/news_releases/2009/11/Nov_Commercial
Obama Signs Homebuyer Tax Credit Extension President Barack Obama last week approved the first-time homebuyer tax credit extension that will extend the tax credit until April 30, 2010. The extension is part of a $24 billion economic stimulus bill that will extend the $8,000 tax credit for first-time homebuyers and expand the program to offer a credit of $6,500 to homeowners who have lived in their current home for at least five years. For details on the extension and expansion, follow the link below. http://tinyurl.com/ycyslj2
Zillow: Fewer Homeowners Underwater The percentage of U.S. homeowners with mortgage debt that exceeds the value of their home declined slightly from the second to third quarters, according to recently released data from Zillow.com. http://www.ncrealtors.org/news_display.cfm?nid=1114
Declining Inventory Sign of Stabilizing Market The reduction in inventory is a primary reason for the stabilization we’re now seeing in the housing market. Current sales and inventories suggest that supply will decline below the pre-2006 levels by the end of 2009. But analysts warn of “shadow inventory,” or, foreclosed homes that banks are temporarily holding off the markets. http://www.realtor.org/RMODaily.nsf/pages/News2009110603?OpenDocument
Fannie to Rent to Owners in Foreclosure Fannie Mae will allow homeowners facing foreclosure to stay in their homes and rent them for as long as a year, as part of the government's latest effort to help troubled borrowers, while keeping more foreclosed properties from hitting the housing market. http://online.wsj.com/article/SB125743289932030933.html
States See Surging Sales, Moderating Prices Most states continued to experience rising existing-home sales in the third quarter, with prices moderating
in many metro areas. In the South, existing-home sales rose 11.3 percent in the third quarter and are 5.9 percent higher than the third quarter of 2008, according to the latest survey by the National Association of REALTORS®. http://www.realtor.org/RMODaily.nsf/pages/News2009111001?OpenDocument
Obama Official: No Decision Yet on Homebuyer Credit
While momentum is building on Capitol Hill to extend the $8,000 first-time homebuyer credit, President Obama's housing secretary said yesterday that the administration has not yet decided whether to support its expansion, as the administration wants more time to better assess the cost of the credit. http://money.cnn.com/2009/10/20/news/economy/ homebuyer_tax_credit/index.htm?postversion=2009102013
Over 50 Percent of Homebuyers Rely on Low Down-Payment Government Mortgages
The new home market is cooling down and government intervention has been a key driver to new home sales, according to a recent monthly survey of home builders. The survey reveals that 59 percent of this year’s sales have been dependent on FHA, VA or USDA financing programs. http://tinyurl.com/ylpzbsg
