Posted on

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.”

Posted on

Real Estate News 2.27.14

Here’s where home prices are about to take off

“FORTUNE — “The time to buy is when there’s blood in the streets.” That quote, attributed to 18th-century financier Baron Rothschild, means that buying when everyone else is panicking is a great idea, as that’s when prices are at their lowest.”

It’s still a lot cheaper to buy than rentIt’s still a lot cheaper to buy than rent

“FORTUNE — Home prices have been rising steadily for more than year, with the most recent Case-Shiller index reading showing the biggest year-over-year increase in nearly a decade. But that doesn’t mean that it is a bad time to buy.”

Freddie Mac profit moves U.S. housing bailout further into black

“(Reuters) – Freddie Mac (FMCC.OB) said on Thursday it will soon send the U.S. Treasury a $10.4 billion dividend after posting a ninth straight quarterly profit, putting taxpayers further into the black on their bailout of the mortgage giant.”

Realtors® Oppose Tax Plan to Limit Mortgage Interest Deduction, Real Estate Provisions

“WASHINGTON (February 26, 2014) – The following is a statement by National Association of Realtors® President Steve Brown…”

Durable goods orders mixed, jobless claims rise

“(Reuters) – Orders for long-lasting U.S. manufactured goods excluding transportation unexpectedly rose last month as did a gauge of business spending plans, but that will probably not change views that factory activity is slowing.”

Foreclosures Climaxing in New York-New Jersey Market: Mortgages

“Feb. 26 (Bloomberg) — The epicenter of the U.S. foreclosure crisis is shifting to New Jersey and New York, threatening a housing rebound in one of the country’s most densely populated areas.”

Camp to Cap Mortgage Benefit While Ending State Tax Break

“A tax plan from House Ways and Means Committee Chairman Dave Camp would further limit the mortgage-interest break and end the deduction for state and local taxes, according to a nonpartisan congressional summary.”

BofA under probe over US housing program, forex

“Bank of America may have a new mortgage problem on its plate, saying on Tuesday that federal investigators are looking into whether the bank violated requirements of a U.S. government housing program.”

WellFargo cuts 700 mortgage jobs

“Wells Fargo & Co. said Wednesday that it is cutting 700 employees, including 203 in the Twin Cities, as demand for mortgages continues to shrink.”

Potential Conflicts Cited For Mortgage Servicer

“New York State’s top banking regulator said he had new concerns about Ocwen Financial, one of the nation’s largest mortgage servicing companies, creating another regulatory headache for the company.”

Senate committee advances repeal of mortgage registration fees

“A bill that would repeal mortgage registration fees moved forward from a Senate committee Wednesday.”

Morgan Stanley offers $275M to absolve bad mortgage bonds

“Morgan Stanley is finalizing a $275 million agreement with the U.S. Securities and Exchange Commission to settle the SEC probe into the bank’s toxic subprime mortgage bond trades going back to 2007.”

Bank earnings are booming, but there’s a big problem

“Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. posted the 17th quarterly increase since 2009 due to an $8.1 billion decline in loan-loss provisions in the fourth quarter of 2013.”

Federal judge sides with Fannie, Freddie shareholders

“Court of Federal Claims Judge Margaret Sweeney granted the Fairholme Funds motion for discovery against America.”

Institutional investor home buys hit 22-month low

“Institutional investor home sales continue to decline as a portion of all home sales, hitting a 22-month low.”

The key to successfully growing your mortgage lending operation

“The mortgage market is quickly drying up and lender competition is heightening in order attract the remaining drops of business thus making lender relationships more important than ever.”

4 game changers for selling homes this tax season

“New-homes sales reached a five-year high Wednesday morning, showing that buyers are still jumping into the market.”

Lansner: Time to sell real estate?

“If the local real estate market is taking a breather this winter after a fast rebound, should you be thinking of selling?”

Index: L.A.-O.C. home prices up 20.3%, but market is leveling off

“Home prices in the Los Angeles-Orange County area jumped 20.3 percent in December compared with a year earlier, the 18th consecutive month of annual gains, housing figures released Tuesday show.”

Los Angeles Real Estate Heats Up With Mogul Money

“Numbers don’t lie. Like box office grosses, home sales reflect economic reality. Per real estate news firm Data Quick, year-over-year residential real estate sales prices are up 18.4% across the Los Angeles area in early 2014 and the inventory of homes and condos for sale remains low. At the upscale end of the market, often in those Los Angeles neighborhoods favored by showbizzers, demand is the strongest, resulting in multiple offers over asking price for contempo properties and select empty lots.’

HUD AND CENSUS BUREAU REPORT NEW RESIDENTIAL SALES IN JANUARY

“WASHINGTON – Sales of new single-family houses in January 2014 were at a seasonally adjusted annual rate of 468,000, according to estimates released jointly today by the U.S. Department of Housing and Urban Development and the Census Bureau.”

The myth of real estate and economic mobility: Americans face lowest geographic mobility in over two generations. Is staying put the new American Dream?

“Americans like to believe that they are movers and shakers and will follow the opportunity wherever it may be. The idea of selling your home and moving across the country for a great new job opportunity seems to be a common notion of how things happen. However the data shows us a very different reality. Americans are largely staying put. We can blame this on negative equity but this trend actually goes back to the 1980s. In fact, American mobility is at all-time record lows. What this means is people are staying put like our golden handcuffed baby boomers. I was thinking about this carefully and I think one major reason for this is the massive subsidies given to homebuyers creates incentives for staying put. Think of California with Prop 13 and the ability to write-off many housing items including interest when being a homeowner. The system is setup to keep people locked in. For a young person in a high cost of living area the best economic option may be to move and start in another state. However the facts point to a very different picture.”

Freddie Mac Prices $1 Billion Reopening of .875% Three-Year Reference Notes® Security

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it auctioned a $1 billion reopening of its .875% three-year USD Reference Notes® security that matures on February 22, 2017. The stop yield for the issue, CUSIP 3137EADT3, was .724%, priced at 100.442508. The bid-to-cover ratio was 4.8 to 1.”

Fixed Mortgage Rates Continue Gradual Climb Higher

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates mixed with the fixed-rate products moving higher for the fourth consecutive week, while adjustable rate mortgages eased.”

Freddie Mac Announces $1 Billion Reopening of .875% Three-Year Reference Notes® Security

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) announced today that it plans to launch a $1 billion reopening of its .875% three-year USD Reference Notes® security that matures on February 22, 2017. The issue will price today, Thursday, February 27, 2014, and will settle on Monday, March 3, 2014.”

Freddie Mac Reports Fourth Quarter and Full-Year 2013 Financial Results

“MCLEAN, VA–(Marketwired – Feb 27, 2014) – Freddie Mac (OTCQB: FMCC) today reported its fourth quarter and full-year 2013 financial results and filed its annual Form 10-K with the U.S. Securities and Exchange Commission.”

CFPB Director Calls for Increased Financial Literacy

“For Richard Cordray, the equation is simple: In the Land of the Free and the home of the free market, American citizens should be as informed about and capable of self-governance in their personal finances as they are in the democratic process, especially when it comes to borrowing for a mortgage.”

Posted on

Real Estate News 2.21.14

Spotlight on economy: More home sales blues?
“Severely cold weather in January stopped many construction projects from breaking ground and slowed work on existing sites. The cold snap probably kept more house hunters indoors instead of making the rounds at open houses.”

$187B bailout now profitable. Surprised?
“U.S. taxpayers have recouped all of the $187 billion they gave mortgage giants Fannie Mae and Freddie Mac in one of the most expensive bailouts of the financial crisis.”

Housing: Top 10 most affordable small cities
“Latest from the Housing Opportunity Index from the National Association of Home Builders and Wells Fargo.”

Tech workers squeezing out renters in San Francisco, Seattle
“Low- and middle-income residents of San Francisco, Oakland, Seattle and other metro areas, are getting pushed out of their homes as an influx of deep pocketed tech workers drive up rents.”

Regulators fear more bad mortgage practices
“You may have gotten a mortgage through the local branch of one of the megabanks, but did you know there’s a good chance your bank turned around and sold the rights to service your loan to somebody else?”

Wall Street Landlords Buy Bad Loans for Cheaper Homes
“Wall Street-backed landlords are showing a greater appetite for bad mortgages as a source for cheap property as the supply of foreclosed homes declines while housing prices continue to climb.”

MBA CEO David Stevens: CFPB’s Antonakes ‘went just a bit too far’
“Steven Antonakes, deputy director of the Consumer Financial Protection Bureau, walked away from a silent, shocked audience after his speech Wednesday morning at the Mortgage Bankers Association’s National Mortgage Servicing Conference & Expo in Orlando.”

Foreclosure Starts Fall to 2006 Level as Home Prices Rise
“The rate of new foreclosures in the U.S. dropped to the lowest level in eight years as rising property prices erased negative equity and allowed more delinquent homeowners to sell without losing money.”

Another ‘Subprime’ Adventure? Behind Wells Fargo’s Move To Ease Mortgage Lending
“Wells Fargo & Co. announced this month it would reduce minimum credit scores for certain mortgages eligible for government backing, prompting some declarations that subprime mortgages were making a comeback.”

Is Homeownership a Fleeting American Dream?
“Opinion: People of color are also disproportionately impacted by an overly restrictive housing market; between 2007 and 2012, loans to African Americans and Latinos have fallen by 73 percent and 66 percent respectively.”

Leading data signal ‘resilient’ economy in 2014
“WASHINGTON (MarketWatch) — The economy will likely “remain resilient” in the first half of 2014, with underlying conditions improving, the Conference Board said Thursday as it reported monthly growth and stable trends for its gauge of leading economic indicators.”

Apartment Sector Healthy, But Fundamentals Moderate
“The multifamily sector continues to perform well four-plus years after its recovery began, two analysts reported.”

NFIP reformists fire warning shot at Congress
“It may be just a rumor of war they’re hearing, but Taxpayers for Common Sense and SmarterSafer.org are firing a warning shot across the Capitol about plans they say are in the works for yet another vote on the Biggert-Waters Flood Insurance Reform Act of 2012.”

Wingspan CEO: 3 keys to success for servicers
“Dallas-based Wingspan Portfolio Advisors finished this past year with several key profile acquisitions that significantly increased the company’s size and revenue, but that’s not where the storybook ends.”

Asia investors bullish about private real estate
“Private real estate investors headquartered in Asia look set to be very active in the asset class over the next 12 months, according to an investor survey by Preqin, a leading alternative asset data and intelligence analysis firm.”

The real estate 1% and the S&P 500 are secretly connected
“Analyst Sam Khater at CoreLogic (CLGX) walks through a look comparing ultra high-end home sales versus homes sales on the lower end of the pricing segment.”

Apollo charts new course for loan strategy in 2014
“Apollo Residential Mortgage is preparing to provide loans to third parties that are purchasing residential properties with plans to resell the properties, and will then probably finance purchases by next buyers, CEO Michael Commaroto said on a conference call today.”

Student loans pinching home sales? Real Estate Open House
“This is the inaugural Front Porch open house, a weekly roundup of real estate news and information for home buyers and sellers. I’ll be checking the comments throughout the day Friday, so leave your real estate questions or links to real estate news stories I missed.”

How to hunt for the right real estate agent before hunting for a home
“If you’re planning to purchase a home in the Washington area this spring, you may face competition from other buyers for the still-limited inventory in the market.”

Serfdom nation: First time where a six year period of household formation of renters outpaced that of homeowners. Purchase applications back to levels last seen 20 years ago.
“I think it is safe to say that investor activity in the housing market has changed the face of real estate buying.  Back when the crisis hit in 2007, some analysts were cheerleading the hedge fund crowd as a tiny blip in the market.  It is hard to call it a blip when 30 to 40 percent of all purchases are going to investors for close to half a decade.  A recent analysis from RealtyTrac found that the estimated monthly home payment for a regular three bedroom home (costs include mortgage, insurance, taxes, maintenance, and subtracting the income tax benefit) rose an average of 21 percent from a year ago in 325 US counties.  What about household incomes?  That is another story.  So it is no surprise that we are largely becoming a nation of renters.  It is also no shocker that young households are largely unable to begin household formation via buying a home.  Many are living with parents well into “young” adulthood.  For the first time in history, we had a six year stretch where we added more renter households than that of actual homeowners.”

Fewer Prospective Homeowners to Clash Over Homes
“Home buying competition rose over the month of January but was down from last January, according to national real estate brokerage Redfin, which took the year-over-year decline as a sign that low inventory and rising prices are thwarting demand in the housing market.”

Posted on

Real Estate News 2.20.14

Priceline for landlords may determine your next rent
“Your next rent hike may be determined by a sort of Priceline.com for landlords.”

Is the housing recovery losing steam?
http://finance.fortune.cnn.com/2014/02/19/is-the-housing-recovery-losing-steam/
“FORTUNE — 2014 was supposed to be the year that the construction industry finally took off.”

Jobless claims fall in February payrolls survey week
“(Reuters) – The number of Americans filing new claims for unemployment benefits fell last week, pointing to steadily improving labor market conditions, despite two straight months of weak hiring.”

Stevens: Give National Servicing Standards a Chance to Work
“Mortgage Bankers Association (MBA) President David H. Stevens congratulated mortgage servicers attending MBA’s National Mortgage Servicing Conference on Wednesday for surviving the past few years with the ‘staggering amount of change’ from new rules and regulations and the ‘intense scrutiny of policymakers, regulators, and the news media.'”

Can servicers bridge the trust gap with homeowners?
“It is hard to characterize the entire mortgage servicing industry, but the zeitgeist at the Mortgage Bankers Association’s National Mortgage Servicing Conference & Expo is that things are better now than they were two years ago.”

New U.S. housing regulator hears concerns on tight credit
“Feb 19 (Reuters) – The new regulator of Fannie Mae and Freddie Mac has made it a priority to meet with housing and real estate trade groups, the latest signal that he is taking their concerns about credit availability on board.”

Obama Officials Quiet on Refi Expansion
“Remarks by a top Obama administration official muddied the waters last week over whether the administration supports a key technical change to its signature home-refinancing program.”

Citigroup launches RMBS
“Citigroup (C) is releasing details of its second residential mortgage backed securitization since the housing recovery began.”

Waning Mortgage Refinancings Make New Deals Safer, Moody’s Says
“A trend of fewer homeowners refinancing their mortgages as interest rates climb is helping to curb sales of home-loan bonds without government backing. It’s also making new notes being issued safer, according to Moody’s Investors Service.”

Lawmaker Urges U.S. Regulators to Scrutinize Mortgage Servicers
“Representative Maxine Waters of California is urging federal banking regulators to scrutinize the sale of billions of dollars of mortgage-servicing rights to a fleet of specialty firms, a move that comes amid mounting concerns that some of the most vulnerable homeowners are facing fresh abuses in battles to save their homes.”

BofA $8.5 Billion Mortgage Settlement Delay Bid Rejected
“Feb. 19 (Bloomberg) — Bank of America Corp.’s $8.5 billion settlement with mortgage-bond investors won’t be delayed after American International Group Inc. and other objectors asked for a hearing to address loan modifications excluded from the accord, a state judge ruled.”

Average monthly house payments jump 21% in fourth quarter
“The estimated monthly house payment for a median-priced three-bedroom home purchased in the fourth quarter of 2013 — and that includes mortgage, insurance, taxes, maintenance, and subtracting the estimated income tax benefit — increased an average of 21% from a year ago in the 325 U.S. counties included in an analysis by RealtyTrac.”

Who says poor construction numbers won’t bend positive trajectory?
“U.S. home construction just cratered in January, dropping 16%, according to the U.S. Census Bureau.”

What did the Fed say that matters to the housing market?
“The big takeaway from the minutes of the Federal Open Markets Committee January meeting for the housing industry is that tapering is likely to continue apace, and that the Federal Reserve is throwing out its previous goal post of 6.5% unemployment in favor of an ill-defined mandate for continued quantitative guidance.”

What could boost the credit quality of Jumbo RMBS?
“Moody’s Investors Service’s exclusive client report “Slowdown in Mortgage Refinancing is Credit Positive for New Jumbo RMBS” charges that lower mortgage refinancing volume could lead to a higher proportion of purchase loans in new jumbo residential mortgage-backed securities, boosting the credit quality of the pools because purchase loans typically have lower default rates.”

Is HomeStreet getting back into jumbo mortgages?
“The residential mortgage side of the business for HomeStreet Bank is stalling.”

Why is the Miami real estate market burning so hot?
“Strong demand for real estate in the city styled the “Capital of Latin America” resulted in a third consecutive record sales year and two years of double-digit price appreciation.”

Are the states going to come after servicers again?
“The weather didn’t stop them – or maybe it drove them—but more than 1,200 attendees made it to this year’s Mortgage Bankers Association’s National Mortgage Servicing Conference in Orlando. That’s roughly the same as last year, according to Dawn Williams, who organizes the conference for the MBA.”

REAL ESTATE: It’s getting tougher to buy a house
“Inland Southern California has pushed past the affordability level that allows median income households to buy a house, a new report from RealtyTrac suggests.”

Online Real Estate Service Trulia Relaunches Its Mobile Apps
“Just ahead of the spring house hunting season, the online real estate service Trulia today launched a major redesign of its flagship mobile apps for iOS and Android.”

Boise’s newest real estate boom tops the nation
“BOISE – Boise real estate agents are currently reporting the biggest housing boom in the nation.”

HUD AND CENSUS BUREAU ANNOUNCE NEW RESIDENTIAL CONSTRUCTION ACTIVITY IN JANUARY
“WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau today announced the following new residential construction statistics for January 2014…”

Fixed Mortgage Rates Tick Up
“MCLEAN, VA–(Marketwired – Feb 20, 2014) – Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates up slightly for the second week in a row.”

10 Secrets to Landing a Foreclosure Bargain in 2014
“At the risk of sounding self-serving, we here at RealtyTrac earnestly contend that 2014 will represent one of the best years in recent memory for a low-risk, high-reward foreclosure purchase.”

Auction.com and NAHREP Partner to Advance Homeownership
“Auction.com and the National Association of Hispanic Real Estate Professionals (NAHREP) are joining forces to advance sustainable Hispanic homeownership.”

Increased Inventory Slows Home Value Growth
“In a report released by Zillow, national home values rose just .2 percent in January from December. Inventory rose in 22 of the nation’s 35 largest metros, and helped slow down the rising value of homes.”

Posted on

Real Estate News 1.28.2014

Plan to downsize your home? Don’t wait
“Moving to a smaller home in later life is a lot like starting a diet: It sounds like a good idea – but one that can always wait until tomorrow. In most cases, though, retirees can benefit from downsizing sooner rather than later.”

New-home sales fade in December after best year in five
“WASHINGTON (MarketWatch) — Sales of new single-family homes fell in December, but the whole of 2013 saw the highest sales level in five years, the government reported Monday.”

How spending has fallen under Obama
“It’s unlikely that President Obama will ever shake his reputation among Republicans as a big spender. But a key fact counters that rap.”

African-Americans squeezed out of the housing market
“More African-Americans are being squeezed out of the housing market.”

Will Real Estate Investing Slow In 2014?
“There’s little doubt that the real estate marketplace is in the midst of change. The huge price run-up seen during the past year or so is plainly cooling, interest rates have risen from the record lows seen in 2012 and higher prices may be causing some institutional investors to slow their purchases.”

Will Mortgage Tax Relief Die In 2014?
“An important law which has eased the financial fall-out from the mortgage crisis has ended. The Mortgage Forgiveness Tax Relief Act expired on New Year’s Eve and unless the legislation is extended large numbers of troubled borrowers will suddenly face huge new taxes.”

Rental house owners can profit from a professional manager
“It’s one thing to manage a rental house when it’s nearby. But it’s another process entirely when the rental is in a distant vacation retreat. Unfortunately, many second-home buyers find that out the hard way.”

Home prices show signs of topping out
“Home prices are showing signs of topping out: The S&P/Case-Shiller index posted its first month-over-month decline in 10 months on Tuesday.”

Home prices: Your local forecast
“After 2013’s big gains, home prices are expected to moderate this year. CoreLogic Case-Shiller expects prices to increase by the mid-single digit percentages for the 12 months through September. See how your market is expected to fare.”

Many renters just say no to buying homes
“(Reuters) – With a wife and a 10-year-old daughter, Matthew Amster-Burton appears to be one of the likelier people to buy a house, but the Seattle food writer says he has no interest in doing so.”

What business expects in the State of the Union
“President Barack Obama will likely talk about improving the broad U.S. economy as well as bolstering specific sectors when he gives his State of the Union speech on Tuesday night. Trade groups around Washington are hoping for a coveted mention, and some are confident the president will talk about working with their industry.”

Yellen Faces Test Bernanke Failed: Ease Bubbles
“Janet Yellen probably will confront a test during her tenure as Federal Reserve chairman that both of her predecessors flunked: defusing asset bubbles without doing damage to the economy.”

Wall Street Bond Dealers Predict Plunging Treasury Sales
“The U.S. will borrow less money this year than at any time since 2008, validating the nation’s decision to go deeper into debt to combat the financial crisis as faster growth shrinks the deficit, Wall Street’s biggest bond dealers say.”

Banks ‘Chase’ Mortgage Loans With Mobile Apps for Home Buyers
“Not long ago, a financial institution couldn’t easily target consumers who were shopping for a new home. But with new online and mobile tools available today, banks and credit unions can be on the front edge of the mortgage application process.”

How QM fails to deliver
“Although the Qualified Mortgage and ability-to-repay rules are designed to halt excessively risky lending, the new guidelines are likely to fall short on risk restraint when comparing their reality to the expectations of the Consumer Financial Protection Bureau, said Ed Pinto, resident fellow and co-director of the American Enterprise Institute’s International Center on Housing Risk.”

FHA Turns to Residual Income Test to Qualify Borrowers
“The Federal Housing Administration has elected to use the Department of Veterans Affairs’ residual income test as a new compensating factor to qualify borrowers with high debt-to-income ratios.”

New home sales fall, but private sector expands
“(Reuters) – Sales of new U.S. single-family homes fell more than expected in December, but lean inventories and steady price gains suggested the housing market recovery remained intact.”

Is this what’s holding back the RMBS market?
“What is the state of the residential mortgage-backed securities market going into 2014?”

Fixed-rate mortgages tumble in popularity
“Adjustable-rate mortgages are gaining in popularity with interest rates on 30-year, fixed-rate mortgages trending higher these days.”

We couldn’t believe which states have the most late mortgages
“Black Knight Financial Services says December was a good month for foreclosures in its latest report.”

JPMorgan reportedly selling $373M prime new issue RMBS
“JPMorgan Chase (JPM) told HousingWire.com the bank will decline comment on a Bloomberg news item suggesting the lender is about to sell $373 million prime new issue residential mortgage-backed securities.”

This Detroit Neighborhood Is So Bad That $1 Homes Could Be A Rip-Off
“Downtown Detroit is seeing a revitalization of sorts sparked by Dan Gilbert’s $1 billion investment in the area. Since 2010, Gilbert’s investment has created an estimated 6,500 jobs in downtown, and, as a result, it’s nearly impossible to find a vacant apartment as residential occupancy rates reached as high as 99.4% for the downtown area.”

Latest Real Estate Numbers Give Reason to Hope
“Housing price data for November, fresh out of the oven, shows dazzling year-over-year gains but a slowing in month-to-month prices. The S&P/Case-Shiller Housing Price Index that’s a composite of 20 metro areas jumped 13.7% year-over-year, beating even the past two month’s 13.3% and 13.6%. The continued march upward will certainly hearten housing bulls, as prices are currently only 20% off their bubble peaks of Spring/Summer 2006. Separately, last week the National Association of Realtors reported that volume was good, with 5.09 million homes sold in all of 2013. In addition to crossing the psychological barrier of the 5 million mark, that’s a 9.1% jump from the year before.”

Tax Geek Tuesday: Why You Should Never Hold Real Estate In A Corporation?
“Sometimes in life, when faced with a given situation, we say things simply as a matter of reflex. For example:”

Sold! The 2013 real estate year in review
“Historically low interest rates and limited inventory in 2013 fueled some of the greatest housing appreciation in San Diego County since the early 2000s.”

Living at home generation: a modern day feudalism awaits young Americans as the prospect of homeownership falls out of grasp.
“The prospect of homeownership for many young Americans seems so far out of reach that many are resigned to be renters for the rest of their lives.  In places like San Francisco and New York even those with decent paying jobs will find it hard to own a piece of real estate.  Obviously many investors with easy money from the Fed realized this end-game and dove into the landlord business with all the gusto in the world.  Wages are weak for the children of baby boomers.  Many in fact are back living at home.  Homeownership seems like a massive pipedream when many don’t even have the income to support a rental.  Of course in California, you have odd inter-family dynamics where some kids are just waiting until the parents keel over so they can inherit the Prop 13 protected World War II built property.  What more do people expect from a narrow focus on the present while ignoring the challenges facing a new generation of Americans?  This structural change has also created a big hit on new home sales.  Unfortunately for many a modern day system of debt serfdom awaits.  For those that have the chance to buy, it may require a massive leap into debt on top of the student debt many already carry.”

Delinquencies Down Nearly 10% in 2013
“Delinquencies picked up slightly in December, according to early data released by Black Knight Financial Services (BKFS)—but overall trends indicate 2013 was a year of improvement.”

FDIC Marks Second Bank Collapse of 2014
“FDIC announced the closure of an Oklahoma bank over the weekend, marking the first insured collapse in the Sooner State in more than a year and a half.”

Federal To Taper Stimulus Again
“The Federal Reserve is scheduled to announce the second cut in its bond-buying program in six weeks as a lackluster December jobs report failed to diminish the central bank’s expectations for solid U.S. economic growth, according to The Wall Street Journal.”

Posted on

Real Estate News 1.13.2014

Out-of-state investors zero in on Twin Cities real estate
“Out-of-state real estate investors from Malaysia to Miami are spending billions on Twin Cities apartment complexes and commercial buildings, including some of the most iconic office towers on the downtown Minneapolis skyline.”

Darden Split Plan May Hinder Real Estate Deal, Activist Says
“Darden Restaurants Inc. (DRI)’s plan to split off Red Lobster could prevent the company from unlocking the $4 billion of value trapped in its real estate holdings, according to Barington Capital Group LP.”

The American Real Estate Investors Academy Now Offers Unsecured Lines Of Credit
“The American Real Estate Investors Academy is working with Aurelian Capital to bring unsecured credit lines to real estate investors. Membership in the Academy is not required.”

10 tips for homebuyers and sellers in 2014
“Goodness, is it 2006 again? At the dawn of 2014, it feels like it.”

A watchdog grows up: The inside story of the Consumer Financial Protection Bureau
“In late 2011, a quiet revolution took place at the corner of 17th and G streets NW.

About 500 federal workers were vacating the drab, 1970s-era headquarters of the Office of Thrift Supervision. The agency had just been scrapped for its role in the financial crisis, which in retrospect seemed almost inevitable: Its primary mission had been to keep banks solvent, and its budget depended on how many of them chose it as their regulator, leading to almost criminal complacence.”

Rising community association fees are squeezing homeowners on tight budgets
“When Brenda Batts purchased her condominium near the U Street corridor in 2006, she was planning to retire at age 65. Now 62, Batts, an office manager, fears she may not meet that goal, thanks to a nagging worry from when she purchased the unit, which assesses a monthly fee for common charges on top of her mortgage and property taxes.”

As mortgage banking industry dwindles, bidding wars over quality housing become common
“This is generally a slow time of year in the residential housing market, but according to Re/Max broker Rosalie Daniels, of Hamilton, bidding wars over housing are increasingly common.”

America’s Big Bank Earnings Announcements Will Be Highlighted By Tumbling Revenue
“Three of the four biggest commercial banks in the US are expected to report falling revenue in the week ahead as loan activity falls.”

Two lawsuits that could harm RMBS investors
“Investors in residential mortgage-backed securities are far from out of the woods when it comes to resolving financial risk from RMBS investments.”

3 ways the coming rate hikes can sink the housing market
“With few exceptions most are projecting interest rates will be edging up over the next 12 months, as the Federal Reserve tapers off its four-year-plus policy of printing $1 trillion a year to buy MBS and Treasurys.”

A calm picture of the economy emerges, but will it last?
“After months of clouded economic data in the wake of financial and congressional uncertainty, the economy is expected to see clearer skies ahead, analysts claim in a new report.”

Total Mortgage Services doubles over next 5 years
“Connecticut Governor Dannel Malloy and the state Department of Economic and Community Development will provide Total Mortgage Services with a $3.5 million loan to help the company establish its national headquarters with a new facility in Milford.”

Freddie Mac: Short Sales More Attainable Than Homeowners Think
“When a homeowner is unable to make their mortgage payments or owes more on the home than it’s worth, a short sale can be a viable option that avoids the negative implications of a foreclosure for both the homeowner and the mortgage-holder.”

Treasury Releases November Making Home Affordable Report
“Nearly 23,000 permanent loan modifications were completed under the Home Affordable Modification Program (HAMP) in November, according to a new report from the U.S. Treasury.”

Unemployment Down: Is The Fed In Trouble?
“The latest news on the unemployment front is good for just about everyone: The  government says 203,000 jobs were added to the economy in November and that the unemployment rate is down from 7.0 percent to 6.7 percent.”

The bubble that is California: A flood of rentals in lower priced markets, inventory creeping back up, and investors appetites waning.
“California can be viewed as a microcosm of what is occurring across the United States.  Few markets are propped up by a smaller affluent population while most, are pushed outward or to rentals as incomes go stagnant.  People for the most part only pay attention to what is immediately around them.  When the crisis hit in 2007 many were caught off guard although the warning signs were all over the place.  As 2014 starts, we are now seeing a definite slowdown in housing even in higher priced areas.  Inventory appears to be coming back online but sales are very weak since people are asking for peak prices and drinking the housing Kool-Aid with gusto.  The median sales price in SoCal has stayed put since June but sales have fallen steadily.  Across the state, with more rentals from investors prices are soft and unlikely to rise given that many Californians have not seen any real income gains over the last decade.  For the most part, many are stuck in a bubble thinking things will remain the way they are simply by sheer momentum.”

2014: Private Forces Move to the Fore
“Waning Fiscal Drag and Easing Policy Concerns Expected to Boost Economic Growth this Year”

Posted on

Today’s Real Estate News 11.26.2013

GSEs Update Short Sale Policies

“Fannie Mae and Freddie Mac announced changes to their Servicing Guides Monday aimed at helping more borrowers avoid foreclosure through short sales and deeds-in-lieu of foreclosure (DILs).”

Report: October Cool Down in Temperature Only

“Cooler temperatures didn’t necessarily mean a cool down in October activity, according to recent data. Despite a seasonal slowdown in activity, the housing market continued to post some positive metrics in October, reports the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, which aggregates approximately 2,000 real estate agents nationwide each month and provides up-to-date intelligence on home sales and mortgage usage patterns.”

Negative Equity: A New Way of Life in the Recovery

“Fast-paced price increases have helped bring many underwater homeowners afloat. In the third quarter, 1.4 million homeowners rose to the surface as their home values once again outranked their equity, according to the Zillow Negative Equity Report released Thursday.”

Pending Sales Slip to Lowest Reading in Nearly a Year

“Pending home sales slipped a bit further in October, reflecting an overall declining trend amid mixed regional numbers.”

Top 25 Hipster Zips for Returns on Rental Properties

“While the precise definition of hipsters is elusive — which is likely just how they want it — there’s no doubt the culture surrounding the hipster lifestyle has a major impact on local real estate markets, and mostly in a positive way.”

Signs Point to Economic Volatility in the Near Term

“WASHINGTON, DC – The temporary government shutdown and debt ceiling negotiations dealt a blow to consumers in October, and foreshadows likely continued market volatility during the next few months, according to Fannie Mae’s (FNMA/OTC) Economic & Strategic Research Group. In line with previous forecasts, the Group expects modest economic growth of approximately 2.0 percent for 2013 as a number of unresolved fiscal and monetary policy decisions weigh on consumer confidence. Factors including the appointment of a new Federal Reserve chair in January and the budget and debt ceiling issues that will remain until the first few months of next year are expected to suppress consumer spending – a key driver of economic growth. However, growth still is expected to pick up to 2.5 percent for 2014 once the fiscal drags wane and as labor market conditions improve further.”

Freddie Mac Multifamily Prices 19th Securities Offering This Year, K-035

“MCLEAN, VA–(Marketwired – Nov 25, 2013) – Freddie Mac (OTCQB: FMCC) recently priced a new offering of Structured Pass-Through Certificates (“K Certificates”), which are multifamily mortgage-backed securities. The approximately $1.3 billion issuance of K Certificates (“K-035 Certificates”) is expected to settle on or about December 5, 2013.”

Home prices rise 11%

“Home prices continued to climb in third quarter, rising 11% from a year earlier.”

Realtors® Applaud DeMarco for Heeding Warnings, Leaving GSE Loan Limits As Is

“WASHINGTON (November 26, 2013) – The following is a statement by National Association of Realtors® President Steve Brown: “Realtors® welcome today’s announcement from the Federal Housing Finance Agency that the current limits on conforming loans will remain in effect until further notice. As the leading voice for homeownership, NAR opposes lowering the ceiling on loans eligible for backing by the government-sponsored enterprises. Lower loan limits would increase costs for consumers and reduce their access to conventional mortgages.”

Insight: A new wave of U.S. mortgage trouble threatens

“(Reuters) – U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country’s biggest banks.”

U.S. residential building permits reach 1 million, a 5-year high

“The number of U.S. residential building permits issued in October surpassed 1 million, the highest level in five years, the Commerce Department reported Tuesday.”

FDIC reports positive trend in loan balances, failed banks

“The bad news about banks in the third quarter is that their net income declined 3.9% from the same quarter last year, according to the latest Quarterly Banking Profile released today from the Federal Deposit Insurance Corporation (FDIC).”

Colony American Homes to launch rental securitization

“Securitization deals backed by rental income continue to attract market interest as more families turn to rentals over homeownership amid tighter lending standards.”

FHA mortgage loans no longer best option after rule change

“The most popular type of mortgage for buyers with low down payments keeps getting pricier and less appealing as more buyers question whether it’s still worth getting an FHA loan.”

Wells Fargo’s Lofrano Was ‘Critical’ to Fraud, U.S. Says

“Wells Fargo & Co. (WFC) Vice President Kurt Lofrano played a “critical role” in helping the bank hide fraudulent home loans that cost the U.S. $189 million, the U.S. government claimed in a filing in Manhattan federal court.”

Some call on city to explore eminent domain to combat blight

“A California city’s controversial plan to use eminent domain to help its residents burdened with mortgages worth more than their homes has caught the eye of some Baltimore leaders, who say the city might benefit from the program.”

What Have Mortgage Settlements Done For Homeowners Lately?

“This week, JPMorgan Chase agreed to a $13 billion settlement with the Justice Department over the sale of faulty mortgage securities that led to the financial crisis. It’s the largest settlement with a single company in U.S. history.”

Chinese buying up California housing

“At a brand new housing development in Irvine, Calif., some of America’s largest home builders are back at work after a crippling housing crash. Lennar, Pulte, K Hovnanian, Ryland to name a few. It’s a rebirth for U.S. construction, while the customers are largely Chinese.”

3 Mortgage Stocks to Buy Now

“This week, three mortgage stocks are improving their overall rating on Portfolio Grader. Each of these rates an “A” (“strong buy”) or “B” overall (“buy”).”

Housing inventory disappears in California for the fall: Number of homes for sale reverses steady increase from February lows. Where did the housing inventory go?

“For most of the year, housing inventory was steadily increasing across the nation. In California, it appeared that inventory hit a bottom in February of this year. At that point, there were 109,000 homes available for sale. The latest figures going out to October showed 127,000 homes available for sale and this was down from 134,000 reached in August. There has also been a steady decline of homes available for rent. The cash investor crowd is still out buying in large numbers. The drop in inventory is typical for the fall and winter selling seasons in normal markets. However this drop in inventory is likely being brought on by other factors including the jump in interest rates and also, the perception that the market may be softening. The number of listings with price cuts was 17 percent earlier this year. Today it is up to 28 percent. Where did the inventory go?”

Troubled hedge fund sitting on real estate gold

“Hedge fund manager Steve Cohen has at least one easy way to make up some of the $1.2 billion he recently agreed to pay the government: Cash in on SAC Capital Advisors’ sprawling real estate holdings that stretch across three continents.”

Chinese real estate influence extends to the Big Apple

“Chinese buyers are fast becoming players in the cutthroat world of Manhattan real estate, and that keeps high-end real estate broker Dolly Lenz busy.”

What Homebuyers Can Be Thankful for in 2013

“Homebuyers have had it tough lately, suddenly finding themselves in a sellers market as summer came along. And mortgages suddenly cost more too — when you could even get one. But of course Thanksgiving isn’t about looking at negatives. So, if you can, look past that elephant-in-the-room that is the credit crunch and take stock of what’s now on the table for those homebuyers with the capital.”

Why Is High-End Real Estate So Hot Right Now? (VIDEO)

“Nov. 25 (Bloomberg) — Ziel Feldman, founder of HFZ Capital Group, and Kevin Maloney, co-founder of Property Markets Group, discuss luxury property market trends with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)”

Posted on

Today’s Real Estate News 11.6.2013

Home prices show smallest gain since January
“September home prices showed the smallest monthly increase since January, according to real estate data firm CoreLogic.”

Freddie Mac Prices Transaction to Share Residential Mortgage Credit Risk With Private Investors
“MCLEAN, VA–(Marketwired – Nov 5, 2013) – Freddie Mac (OTCQB: FMCC) today priced a $630 million offering of the Freddie Mac Structured Agency Credit Risk (STACR®) debt notes. This offering represents the company’s second STACR offering in which private sources, and not taxpayers, predominately take the credit risk.”

Freddie Mac Receives CMBS Master and Special Servicer Ratings From Fitch
“MCLEAN, VA–(Marketwired – Nov 5, 2013) – Fitch Ratings today gave Freddie Mac (OTCQB: FMCC) Multifamily an initial commercial mortgage-backed securities (CMBS) master servicer rating of CMS2 and affirmed the existing special servicer rating of CSS2-. The CMS2 rating is the highest initial rating ever assigned by Fitch for a master servicer.”

Does Q3 Uptick in Homeownership Reveal Good News or False Hope?
“The Census Bureau’s announcement Tuesday that the national homeownership rate ticked up slightly in the third quarter of this year has some analysts wondering if this is a turning point for homeownership and others labeling slow household formation as a persistent hindrance to a full housing market recovery.”

September Bucks Forebodings of Decelerating Price Gains
“With recent predictions forecasting a falloff in home price increases over the next year, gains nevertheless continued at a strong pace in September, CoreLogic reported Tuesday in its monthly Home Price Index (HPI) report.”

Housing Market Recovery Rate Indicates Less Volatility than Ever
“Renewed profitability in the real estate market lacks the troublesome “irrational exuberance” that caused problems in the past, according to Wade Micoley, president and CEO of WM Enterprises, Inc., and the online auction house Micoley.com.”

Fannie Mae’s Portfolio Continues to Shrink
“Fannie Mae has released its September book of business, revealing further declines as new business acquisitions came to their lowest level in more than a year.

The mortgage behemoth’s book of business totaled $3.163 trillion as of the end of September, shrinking at a compound annual rate of 1.3 percent.”

FHFA Prohibits Servicer Reimbursement
“The Federal Housing Finance Agency (FHFA) announced Tuesday that it has directed the GSEs to prohibit servicers from being reimbursed for expenses associated with captive reinsurance arrangements. The announcement follows a notice that FHFA published in the Federal Register last March regarding its views on these lender-placed insurance practices and accepting public input. The notice also cited concerns that the practices expose Fannie Mae and Freddie Mac to potential losses as well as litigation and reputation risks.”

Rich investors sitting on a pile of cash
“Some of the richest people around the world think the stock market will continue to go up. So why are they sitting on a big pile of cash?”

Most Metro Areas Show Strong Annual Home-Price Growth
“WASHINGTON (Nov. 6, 2013) – The majority of metropolitan areas in the third quarter experienced robust year-over-year price gains, with the national median price showing the strongest annual growth in nearly eight years, according to the latest quarterly report by the National Association of Realtors®.”

Exclusive: EU to levy record fines on Libor banks: source
“(Reuters) – EU antitrust regulators will levy a record fine of at least 1.5 billion euros on six financial institutions, including Barclays (BARC.L) and Royal Bank of Scotland (RBS.L), for rigging the yen Libor interest rate benchmark, a banking industry source said on Wednesday.”

MBA’s Cosgrove Testifies on Housing Finance Reform
“WASHINGTON, D.C. (November 5, 2013) – Bill Cosgrove, CEO of Union Home Mortgage Corp. and Chairman-Elect of the Mortgage Bankers Association (MBA), testified today before the U.S. Senate Committee on Banking, Housing and Urban Affairs at a hearing titled, ‘Housing Finance Reform: Protecting Small Lenders Access to the Secondary Market.'”

Ally Profit Drops as Lender Absorbs Cost of Mortgage Accord (3)
“Ally Financial Inc. (ALLY:US), the auto finance firm majority-owned by U.S. taxpayers, said third-quarter profit fell 76 percent as the company settled U.S. claims for soured mortgages and stopped making new home loans.”

Bernanke Giving Homebuyers Second Chance With Pledge: Mortgages
“This was supposed to be the year that Herb Harrison found a newer, bigger home to replace his current house in Framingham, Massachusetts. Then, in May, mortgage rates began to rise and he put his hunt on hold.”

Fannie, Freddie Ordered to End Reimbursements for Force-Placed Insurance
“The Federal Housing Finance Agency told Fannie Mae and Freddie Mac to end reimbursements to mortgage servicers for expenses related to captive reinsurance arrangements.”

As US Economy Plods and Pay Lags, Companies Profit
” Look at the U.S. economy and you’ll notice an unusual disconnect.

The economy is being slowed by a tight job market, scant pay raises and weak business investment. Yet corporate profits are reaching record highs and fueling record stock prices.”

US planned layoffs rise in October: Challenger report
“The number of planned layoffs at U.S. firms rose 13.5 percent in October on cuts in the pharmaceutical and financial sectors, a report on Wednesday showed.”

Regions Discloses HUD Subpoena Related to Mortgages
“Regions Financial Corp. (RF), Alabama’s biggest bank, received a subpoena from the U.S. Department of Housing and Urban Development tied to the origination of mortgages backed by the Federal Housing Administration.”

Two heavyweight Fed papers argue for stronger policy action
“Nov 5 (Reuters) – Two of the Federal Reserve’s top staff economists make the case in new research papers for more aggressive action by the U.S. central bank to drive down unemployment by promising to hold interest rates lower for longer.”

BofA CEO: Housing Market ‘Fairly Stable’
“Bank of America Corp.BAC +0.22% Chief Executive Brian Moynihan said the U.S. housing market is “fairly stable” at a Wall Street Journal event in New York Wednesday.”

CORONA: Realtors’ home, a decoy for Nigerian rental scam
“Rental scams are mounting in the Inland region, as Heather Stevenson, a real estate broker and team leader for Prudential California Realty, can attest.”

How Federal Reserve and banking policy is accelerating income disparity: Financial obligations ratio soars for renters while declining for homeowners. Problem is, we have less homeowners.
“Current housing policy has been a major windfall for large institutions and investors.  Banks enjoyed a continuous stream of good years as rates slowly dragged down and people became serial refinancers.  Good way for banks to earn fees courtesy of the Fed’s QE maneuvering.  However the results have been negative for the large number of working and middle class Americans.  Many of you have encountered investors bidding prices up on properties here in your own backyard but this trend is nationwide.  In some areas the bidding has been more aggressive (i.e., San Francisco) but overall, the nation has seen a big jump in home values.  However new data continues to highlight how this current policy is really benefitting a small group of Americans.  While rental vacancy rates reach decade lows, homeownership rates are also reaching multi-decade lows.  Not hard to do when a large portion of the market is coming from the investor crowd.”

Posted on

Rental Vacancy Rate Lowest in More Than a Decade

“The U.S. apartment vacancy rate fell to its lowest level in more than a decade during the third quarter, according to a new report by real estate research firm Reis Inc. It was down to 4.2 percent, the lowest vacancy rate since the third quarter of 2001, when it stood at 3.9 percent.”

Read More

Share/Bookmark