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Real Estate News 2.11.14

Scary 1929 market chart gains traction
“CHAPEL HILL, N.C. (MarketWatch) — There are eerie parallels between the stock market’s recent behavior and how it behaved right before the 1929 crash.”

Metro Areas See Solid Home-Price Growth, Some Markets Facing Affordability Issues
“WASHINGTON (February 11, 2014) – The lion’s share of metropolitan areas continued to experience strong year-over-year price growth in the fourth quarter, according to the latest quarterly report by the National Association of Realtors®. A companion metro area annual affordability report shows less favorable conditions, particularly in the West.”

Construction Equipment Rentals Boom
“MOLINE, IL—As reported yesterday in GlobeSt.com, panelists at the recent Mortgage Bankers Association’s Commercial Real Estate Finance/Multifamily Housing Convention & Expo said that construction lending has increased to levels not seen in decades. And in another sign of a US economic rebound, construction and industrial equipment rentals have also soared, according to data just published in the American Rental Association’s ARA Rental Market Monitor™.”

NAR: Rising home prices infringe affordability
“The vast majority of metropolitan areas continued to experience strong year-over-year price growth in the fourth quarter, the latest quarterly report by the National Association of Realtors revealed.”

NAR’s chief economist said what about the housing market?
“Lawrence Yun, chief economist at the National Association of Realtors, caught HousingWire’s eye with his recent remarks at the Alabama Commercial Real Estate conference.”

MBA: Credit loosens as lenders adjust to QM
“The mortgage credit availability index ticked slightly higher in January and increased 1.85% from 110.9 in December to 113.0 in January, the latest Mortgage Bankers Association report said.”

How community banks will reign in 2014
“Despite some small lenders choosing to shut the door on originating mortgages, community banks could have just the right kind of leverage to succeed in 2014’s lending environment.”

2014 predictions: Redfin goes public and more
“Monday marked the one-month anniversary of the implementation of the Consumer Financial Protection Bureau’s Qualified Mortgage rule.”

Boehner backs down, says House to vote on ‘clean’ debt-limit hike
“WASHINGTON –  House Speaker John Boehner, in an abrupt shift, announced Tuesday that the House would vote on an increase in the nation’s borrowing cap without any strings attached.”

Fed’s Plosser ‘worried’ about not raising rates
“Charles Plosser, president of the Federal Reserve Bank of Philadelphia, said Tuesday history is not on the side of the central bank when it comes to raising interest rates in a timely manner, and the risk is financial markets will force its hand.”

Former foreclosure attorney in jail
“VISTA — A former attorney who pleaded guilty to stalking, trespassing and other charges related to his work for clients facing foreclosure admitted Monday that he violated his probation.”

Your Homeowner’s Insurance Is Soaring Thanks to Hail From 5 Years Ago
“Brutal storms—including some that hit quite a few years ago—are causing rates on homeowner’s and flood insurance policies to skyrocket.”

U.S. Economic Confidence at Lowest Level Since December
“WASHINGTON, D.C. — The Gallup Economic Confidence Index dipped to -18 for the week ending Feb. 9 — the lowest weekly reading so far in 2014. The index is similar to the -17 measured during the prior two weeks and January’s monthly average of -16. Americans’ confidence in the economy has been falling since it reached this year’s weekly high of -13 in early January. The index was 10 points more positive in early February 2013 than it is now.”

‘Nonpracticing entity’ or ‘patent troll’? Property Disclosure Technologies sues 13 real estate companies
“More than a dozen real estate companies — including Re/Max, Century 21 and Keller Williams — have been hit with patent infringement lawsuits by a company that does not maintain a website or offer any products or services but holds patents on a ‘real estate disclosure reporting method.'”

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Real Estate News 1.14.2014

9 ways real estate will change this year
“Each year, HSH.com details the important factors most likely to influence the mortgage and real estate markets in the coming year. While it seems we have made our way out of the turbulent times that have bounced the market around for the last few years, there is still plenty of uncertainty ahead.”

Minimum wage hike could mean a raise for all
“When New Jersey increased its minimum wage this year, Dolores Riley gave raises to all 16 employees at her childcare center. But it wasn’t because they were all making $7.25 an hour.”

Wells Fargo profit beats estimates; mortgage loans slump
“(Reuters) – Wells Fargo & Co (WFC.N) reported a better-than-expected 11 percent jump in fourth-quarter profit, though mortgage financing was at its slowest in five years, and the bank’s shares fell in morning trading.”

Lenders fear squeeze from mortgage rules
“Financial institutions are pressing Congress and federal regulators to scale back sweeping new mortgage rules for fear they could impede the housing market’s recovery.”

5 ways the jumbo mortgage market will change in 2014
” Big changes are coming to jumbo mortgages.

Wealthy home buyers signed up for these loans in droves last year because of their low rates and flexible repayment options. The total dollar amount of originated private jumbo mortgages—which exceed $417,000 in most parts of the country and $625,500 in pricey housing markets such as New York and San Francisco—was on track to be the highest since 2007.”

Friend or Foe? Mortgage Rules Show 2 Faces
“The home loan industry now has to adapt to new mortgage rules that offer borrowers much needed protection against lender abuses and reckless lending standards. But the changes may not please all borrowers.”

U.S. Posts Record December Surplus on Fannie Mae Payments
“The U.S. posted a record December budget surplus as higher payroll taxes, payments from Fannie Mae and Freddie Mac, and a declining unemployment rate helped improve the government’s finances.”

Credit standards going easy on jumbo mortgages
“Despite overall originations hitting the lowest level since 2010, the past year witnessed a significant increase in the volume of home equity loans and lines of credit, in addition to originating the best-performing mortgages on record, the first report from Black Knight Financial Services, previously known as Lender Processing Services, found. For jumbo mortgages, however, it’s a completely different story.”

Fannie Mae launches second risk-sharing transaction
“Fitch Ratings released a pre-sale report expecting to rate the risk-sharing portion of the Fannie Mae Connecticut Avenue Securities at triple-B.”

Investors in PennyMac gain larger stake
“A group of investors acquired enough of a stake in PennyMac Financial Services (PFSI) to prompt a series of new filings with the Securities and Exchange Commission.”

Slump in retail sales and more economic predictions coming this week
“The Commerce Department will release its retail sales report for December at 8:30 a.m. ET Tuesday, but early warning signs show that it’s likely to show a holiday slump.”

How bad will QM hurt homeowners and home buyers?
“The House Financial Services Committee will hold Tuesday morning the second in a series of meetings on the effects of the Consumer Financial Protection Board’s Qualified Mortgage rule, a rule that only went into effect two business days prior to the scheduled hearing.”

Report: Delinquencies Dip, Lines of Credit Rise
“Home equity loans and lines of credit are on the rise, as delinquencies continue to plummet across the nation, according to recent research from Black Knight Financial Services. The data and analytics division of the company—formerly the LPS data and analytics division—released its November Mortgage Monitor Report, which found that total delinquencies are at extremely low levels in every product category.”

Wells Fargo Economists’ Outlook at Odds with Recent Home Price Data
“What’s ahead for housing in 2014? The economics team at Wells Fargo Securities is forecasting a pull-back in investor activity, and with the fundamentals underlying housing demand, job and income growth, and household formations making only modest strides in a relatively thin market, they say to look for modest gains in home sales and residential construction with price appreciation decelerating back into the mid to low single digits.”

GSE Forecasts ‘Continued but Measured Housing Recovery’ in 2014
“Recent trends in new home sales suggest the housing sector will double its contributions to the country’s economic growth in 2014—though the outlook for existing-home sales isn’t as bright.”

The Bullish Economic Story May Be On The Verge Of A Change
“The 10-year Treasury yield closed Monday at 2.82%, below the 2.88% level where it closed on Dec. 18, when the Federal Reserve announced it would begin tapering down its quantitative easing program.”

These Skinny Micro Housing Designs Would Let You Live Between Buildings
“With more and more people choosing to live in cities, there is less and less affordable housing available, meaning that some municipalities are trying out things like micro-housing or relaxed zoning laws to meet up with the demand.”

Berkshire County real estate seller using drones
“RICHMOND, Mass. (AP) — A Berkshire County real estate company is using a new tool to market its high-end properties — aerial drones.”

From offices to shopping centers, commercial real estate in high demand
“Coming off one of the strongest years on record, Houston’s commercial real estate market is poised for more growth in 2014, industry experts said today.”

China to Establish System for Tracking Real Estate Ownership
“SHANGHAI—China plans to establish a national system for tracking real-estate ownership and sales transactions, a key step in its effort to tame a property sector that threatens to price many Chinese out of the housing market.”

Progress has been slow in cleaning up mortgage mess
“After multiple enforcement actions, lawsuits and multibillion-dollar settlements, state and federal regulators are making sluggish progress in their efforts to prod banks to help mortgage borrowers.”

Richmond seeks partners for plan to seize mortgages using eminent domain
“After months of trying, members of the Richmond City Council have been unable to muster the supermajority of votes they need to enact a controversial plan to use eminent domain to seize underwater mortgages and slash the amounts that borrowers owe.”