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1. Will this get millennials to buy homes?
“One Wall Street firm has an idea that’s raising eyebrows: forgive some student debt for first-time homebuyers.”

2. Baby Boomers say they aren’t moving out of their homes
“Instead of flocking to sunny beach havens or downsizing to a condo in the city during their retirement years, a majority of Baby Boomers say they’re just going to stay put in their old home.”

3. Homes for the homeless…inside billboards
“Billboard ads are expensive to construct, maintain and rent, but they don’t serve any functional purposes — so Michal Polacek redesigned them to house the homeless.”

4. Here’s why falling home prices is not good news
“As someone who has been in and around the housing and mortgage servicing industries for as long as I have, I am always on the lookout for articles and other information that discuss the condition of the economy in general and the housing market in particular. Not being shy to enter a debate on these subjects, I was interested to read a recent article published in Scotsman’s Guide, “As home values moderate, fears of bubble deflate” — Catchy, if not inaccurate.”

5. Freddie Mac: Homeowner demand for home equity loans doubles
“Homeowners are taping into their home equity at double the pace due to continual home price increases, pulling more borrowers out from underwater, Freddie Mac’s third-quarter refinance report said.”

6. Fannie, Freddie to take on more credit risk
“Proposals to lower the minimum down-payment on Fannie Mae and Freddie Mac-backed mortgages at the same time as reducing banks’ exposure to put-back risk may help accelerate the planned modest loosening in mortgage credit conditions.”

7. Blame the fall in homeownership on Generation X: Why did the homeownership rate fall so dramatically for those 35 to 44?
“We’ve all heard about the broke Millennials living at home with mom and dad unable to move out into a very expensive rental.  For years, we’ve been told that somehow this young group of people would represent some pent up demand to buy homes.  This demand never materialized.  Instead, you have tight inventory in certain markets being fought over by investors and those willing to pay current prices while stretching their budgets.  Yet volume remains incredibly pathetic.  The homeownership rate has fallen dramatically and some point the blame to the Millennials.  But as it turns out, the big drop has come from those 35 to 44.  Generation X overall has been a massive drag on the housing market.  The young are simply not buying homes like they once did and many are opting into the rental market.  So how big of a drag is Generation X on the housing market?”

8. Despite Q3 Decline, Zombie Foreclosure Problem Lingers In Many Areas
“While zombie foreclosures in the U.S. declined overall in the third quarter, they continue to be a problem in some areas, according to RealtyTrac’s Q3 2014 Zombie Foreclosure Report released earlier this week.”

9. Report: Consumer Confidence Recovers in October
“Consumer confidence bounced back in October, thanks to a sharp rebound in Americans’ outlook for the economy.”

10. Freddie Mac 2014 Third Quarter Refinance Report
“MCLEAN, VA–(Marketwired – Oct 31, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its third quarter 2014 quarterly refinance analysis, showing the share of borrowers who are tapping their equity by cashing out at the time of refinance has doubled from the same quarter last year as a result of broad-based house price appreciation. However, the dollar volume remains very low at an estimated $8.0 billion.”

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Real Estate News 10.30.14

1. US economy chugging along at 3.5% growth

“Gross domestic product increased 3.5% between July and September, according to the U.S. Commerce Department. It exceeded analysts’ expectations and offered more proof of an economy gaining momentum.”

2. Rents are soaring — and so are evictions

“In cities across the United States, millions of people will be kicked out of their homes this year.”

3. Fed ends 6-year effort to stimulate economy

“The Federal Reserve announced the end of its bond-buying program Wednesday, marking the close of a six-year effort to stimulate the economy.”

4. Pending Home Sales Hold Steady in September

“WASHINGTON (October 27, 2014) – Pending home sales rose slightly in September and are now above year-over-year levels for the first time in 11 months, according to the National Association of Realtors®.”

5. U.S. jobless claims rise, but underlying labor market trends firming

” (Reuters) – The number of Americans filing new claims for unemployment benefits rose for a second straight week last week, but remained at levels consistent with a firming labor market.”

6. Mortgage rates increase from 2014 low, Freddie Mac says

“Mortgage rates rose this week from their lowest point in 2014, but lenders still offered a 30-year fixed loan below 4%, according to Freddie Mac’s weekly survey.”

7.Apartment developer sets sights on young families of modest means

“While many Southern California apartment builders are racing to attract hip, single urbanites with lots of cash, one Los Angeles developer is taking a different tack and pursuing young families of more modest means.”

8. Home prices flat in Southern California, Case-Shiller Index says

“A key measure of home prices out Tuesday suggests the California housing recovery has stalled, at least for now.”

9. Fed declares economy strong enough for bond-buying stimulus to end

“In the dark days of the 2008 financial crisis, the Federal Reserve began buying tens of billions of dollars in bonds each month in a controversial, last-ditch effort to stimulate the economy.”

10. U.S. loan applications to buy homes lowest since February: MBA

“(Reuters) – U.S. mortgage applications to buy homes fell to their lowest level last week since February as interest rates on 30-year home loans edged up from the previous week’s 16-month trough, an industry group said on Wednesday.”

11. CORRECTED-S&P in settlement talks with regulators over mortgage securities

“Oct 29 (Reuters) – The parent of Standard & Poor’s on Wednesday said it was in “active” settlement talks with federal and state regulators over its ratings on six commercial mortgage-backed securities.”

12. Is the US heading toward another housing bubble?

“New federal mortgage regulations don’t require significant down payments. And that’s only inviting a repeat of the 2008 financial crisis.”

13. Borrowers find refuge in nonbank mortgage loans

“Nonbank lending is growing as homebuyers rejected by big banks turn toward non-QM loan options.”

14. Jobless claims tick up by 3,000 filings

“Although initial jobless claims ticked up by 3,000 filings to 287,000 for the week ended Oct. 25, levels still remain at historic lows, according to the latest jobs report from the U.S. Department of Labor.”

15. Detroit’s ‘Blight Bundle’ of 6,000 Foreclosures Goes to a Casino Developer

“The identity of the sole bidder in the auction to sell more than 6,000 of Detroit’s foreclosures is no longer a mystery. Herb Strather, a local casino and real estate developer, won the lot for just under $3.2 million. “This is more than just an acquisition of parcels. It’s an opportunity to redevelop the city I was born in and I plan to die in,” Strather said in an interview.”

16. Homeownership in America Has Collapsed—Don’t Blame Millennials

“The U.S. homeownership rate has fallen to a 19-year low. Why?”

17. This Has Never Happened Before Without A Massive Bubble Bursting

“Back in June we first observed that “America’s Most Important Housing Market Signals A Red Alert For Housing Bubble Watchers” and showed the following chart…”

18. PROPERTY TAX: Why Inland homeowners might see higher bills

“Chances are, California homeowners are finding they owe more when they get this year’s property tax bill.”

19. Rental rates are outpacing wage growth: What are the implications of rising rents when wages are simply not keeping up?

“There are bigger implications to the economy when rental rates are increasing at a rate faster than wage growth.  This is important because we have added 7 million renting households in the last few years.  For the moment, it simply looks like more money is going to be funneled into the housing market versus other segments of the economy.  If your rent went up by $100, that is $100 that is not being spent on other sectors of the economy.  Amazon already showed some hints that consumers are looking tapped out.  Of course the holiday spending orgy is around the corner so we shall see.  Falling gas prices help a bit but for consumers, housing is the biggest monthly line item expense.  Landlords like home sellers are going to charge as much as they can.  And with many homes now being owned by large investors, we are seeing steady rent increases in many markets.  How far up can rents go?  For rental rates, you are capped by what local area households can pay from actual income.  It might be useful to examine the rate of increase between wages and rents.”

20. Can ‘Lower Wealth Borrowers’ Save Real Estate?

“We’re soon going to help “lower wealth borrowers” by making mortgages available with  just 3 percent down. That’s the word from Mel Watt, director of the Federal Housing Finance  Agency.”

21. Completed Foreclosures, Inventory Way Down in September

“Foreclosure inventory and the number of completed foreclosures nationwide both saw significant year-over-year declines in September, according to CoreLogic’s September 2014 National Foreclosure Report released on Wednesday.”

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Real Estate News 10.09.2014

1. 5 things to consider before tapping your home for cash
“During the housing bust, many homeowners were cut off from a popular source of funds: their homes.”

2. Drop in jobless claims points to labor market strength
“(Reuters) – The number of Americans filing new claims for unemployment benefits fell last week to nearly its lowest level since before the 2007-09 recession, a sign of growing steam in the U.S. labor market.”

3. Southern California office leasing market boosted by job growth
“Job growth in Southern California finally produced a robust quarter of leasing for office landlords, who were able to fill long-vacant space and push up rents.”

4. Suit asks why U.S. bailout of AIG wasn’t more generous
“The trial pitting a fallen financial titan against an array of former high government luminaries provides a through-the-looking-glass view of the financial credit crisis of 2008 — a view that only makes sense on Wall Street.”

5. U.S. Mortgage Application Volume Up
“The average number of mortgage applications for the week ended Friday rose 3.8% from the week earlier, according to the Mortgage Bankers Association weekly survey.”

6. Why Getting a Mortgage Will Remain Hard for at Least 3 More Years
“NEW YORK (TheStreet) — Americans will likely have to wait at least three more years before it becomes any easier to get a mortgage.”

7. Rebirth of housing market calls for moving past Fannie and Freddie
“This fall marks the seventh anniversary of the federal government’s move to take conservatorship of Fannie Mae and Freddie Mac, and the nation should thank the government-sponsored enterprises (GSEs) for restoring confidence and liquidity in mortgage finance during a time of crisis. Without their intervention and involvement, our nation’s housing system would have fared far worse than what we experienced.”

8. Op-Ed: Loan File Size Increasing at ‘Alarming’ Rate
“Lenders are gathering an unprecedented number of required documents to originate mortgage loans and comply with new regulatory requirements. To be sure, the regulatory environment saps efficiency and profitability at the same time that loan volumes are falling.”

9. Real Estate Investment Up; Led by NYC–Again
“New York remains the world’s largest real estate investment market for the fourth consecutive year. Volumes there rose nearly 11 percent to $55.4 billion–7 percent of global market share–in the 12 months leading up to June. Second-place London, which registered $47.3 billion of investment, closed the gap on New York thanks to a 40.5 percent increase in activity over that year, becoming the largest global market for cross-border investors. With $35.5 billion in investment, Tokyo reclaimed the third position from Los Angeles ($33.1 billion), which dropped to fourth while San Francisco ranked fifth with $23.8 billion invested.”

10. Find out why West beats East in home price appreciation
“It used to be gunfighters would brag about being the fastest gun west of the Mississippi River, and now it’s all about home price growth.”

11. Auction.com launches Auction Finance to spur investor activity
“Seeking to expand on its pool of potential real estate buyers, Auction.com has created a new division to help commercial and residential real estate investors obtain financing.”

12. Freddie Mac: Mortgage rates drop near yearly lows
“Mortgage rates slightly fell back down following the Federal Reserve’s latest tapering announcement, dropping down near their yearly lows, Freddie Mac’s Primary Mortgage Market survey results showed.”

13. Mortgage applications for new homes flat in September
“Mortgage applications for new home purchases remained unchanged relative to the previous month, according to the Mortgage Bankers Association Builder Application Survey data for September 2014.”

14. Debt among youngest, oldest shifted dramatically in past decade
“A new TransUnion study found that the consumer loan wallet – the composition of loans that people typically carry – has materially changed for both the youngest and oldest segments of the population during the last decade.”

15. Freddie Mac Expands Into Small Apartment Mortgages
“Freddie Mac is building a business to originate small apartment loans, between $1 million and $5 million, as part of its mandate to support affordable housing.”

16. If Congress Won’t End GSE Conservatorship Soon, FHFA Can
“Last week, a D.C. District Court Judge struck down a lawsuit brought by shareholders in Fannie Mae and Freddie Mac who had been seeking to stop the government from taking the profits from the two agencies. The suit will be appealed, but setting aside the legal disputes for a moment, the U.S. government still has a big issue to confront: what to do about the two government-sponsored enterprises.”

17. Taper Tantrum Erased With Mortgage Yields at 16-Month Low
“In the market for U.S. mortgage bonds, it’s almost as if the turmoil that became known as the taper tantrum never happened.”

18. REGION: Housing boom targets ‘silver tsunami’
“The Inland region’s newest housing boom is being built on its oldest residents.”

19. REAL ESTATE: Slower gains predicted in 2015 for home sales, prices
“Reset, California.

That could be the theme of a real estate forecast that California Association of Realtors chief economist Leslie Appleton-Young delivered Tuesday for 2015, as the real estate industry takes the shape of a more traditional market.”

20. It’s easy to pay someone else’s property tax
“Anybody can pay anyone else’s property tax, and it’s easier than ever with the recently enhanced online system in San Diego County.”

21. Best College Towns for Buying Rentals, Flipping in 2014
“RealtyTrac has ranked the top 10 college towns for buying rental properties, and the top 10 college towns for flipping in 2014. For these rankings, RealtyTrac looked at public four-year universities with a total 2012 enrollment of 20,000 or more based on data from the National Center for Education Statistics and located in counties with an unemployment rate below the national average of 6.2 percent in June 2014.”

22. Boston Broker Sends Agents to Asia to Promote Local Real Estate
“I was interviewing Boston-area broker Tom Truong for an article spotlighting the Boston market for the August issue of RealtyTrac’s Housing News Report when he made this comment that took me a bit by surprise.”

23. L.A. and O.C. least affordable rental markets: Rental market is at odds with weak employment growth and weak income figures.
“It should come as no surprise that the L.A. and O.C. housing markets are the least affordable in the entire nation. That is right, even more unaffordable than San Francisco or New York. Why? Because even though New York and San Francisco have higher rental costs, people make more money. Should be common sense but it should be apparent that people in SoCal like stretching their budgets. It might be the Hollywood allure of “acting” rich instead of actually being wealthy. Fake it till you make it. Hence the broke older homeowners with their boomerang adult-children coming to live back home. Rents are paid by net income. There is no extra mortgage leverage that you can squeeze out of a rental payment. You either make the monthly payment or you don’t. And seeing this data simply confirms that many in SoCal would rather act the role of being rich instead of taking steps to being wealthy.”