Archive for January 2014

Number of Underwater Homeowners Falls 47.5%

January 14, 2014 Housing Market Comments Off on Number of Underwater Homeowners Falls 47.5%

The number of homeowners who owe more on their mortgage than their home is worth has fallen 47.5 percent since the beginning of 2012. According to the federal government’s most recent Housing Scorecard, released by the U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury, nearly 6 million underwater homeowners have been lifted above water as home prices increased from post-crash lows over the past two years. The improvement has pushed homeowner equity up 55 percent since the end of 2011. In fact, by the third quarter of 2013, homeowner equity was slightly higher than it was at the end of 2003. Despite the progress, officials caution that there is more work to do. Edward J. Szymanoski, HUD’s associate deputy assistant secretary for economic affairs, said there are encouraging signs that the housing market recovery is providing millions of American homeowners with more economic security but there remains work to do in order to address the remaining underwater borrowers. More here.

Mortgage Credit Availability Rises In December

January 13, 2014 Housing Market Comments Off on Mortgage Credit Availability Rises In December

The Mortgage Credit Availability Index is a report from the Mortgage Bankers Association that calculates the availability of mortgage credit based on factors related to borrower eligibility, including credit score and loan type. In December, the index increased slightly, moving up 0.6 percent to 110.9 from 110.2 the month before. A decrease in the index indicates lending standards are tightening, while any increase indicates that credit is becoming more available. Benchmarked in March 2012 at 100, the index would have been at nearly 800 if it had been tracked in 2007, before the housing crisis when credit was much more readily available. The Mortgage Credit Availability Index is the only standardized quantitative index focused solely on mortgage credit. More here.

Post-Crash Rebound Fuels 2013 Price Gains

January 10, 2014 Housing Market Comments Off on Post-Crash Rebound Fuels 2013 Price Gains

Home prices surged last year but, according to Trulia’s Price Monitor, the increases were a reaction to the housing crash more than the effects of an improved job market and economy. A recent analysis from Jed Kolko, Trulia’s chief economist, explains how the price gains seen throughout 2013 were a direct response to the housing crash. For example, the individual markets that experienced the highest price increases last year were also those that suffered the most severe price declines during the crash. In other words, the markets that had the most ground to make up were the ones with the most significant increases. Now that most areas have largely recovered the losses suffered during the housing crash, price gains should begin to slow. Kolko says – as the housing market continues to recover – factors such as job growth, rather than this recent rebound effect, will lead to more sustainable, and slower, price increases. Trulia’s Price and Rent Monitors measure how asking prices and rents are trending on both a national and local level. In December, home prices were up 11.9 percent over last year and 0.4 percent above the month before. More here.

Mortgage Rates Hold Steady, Demand Rises

January 9, 2014 Housing Market Comments Off on Mortgage Rates Hold Steady, Demand Rises

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages was unchanged last week from the week before. Mortgage rates held steady for loans with both conforming and jumbo balances, while 15-year rates increased. Demand for loan applications, on the other hand, was up – rising 2.6 percent from the previous week. The Refinance Index spiked 5 percent – after falling 9 percent a week earlier – and the seasonally adjusted Purchase Index fell 1 percent. The results were adjusted to account for the New Year’s Day holiday. Also in the report, the refinance share of total mortgage activity remained at 63 percent from the week before. The Mortgage Bankers Association’s Weekly Applications Survey covers more than 75 percent of all U.S. retail residential mortgage applications and has been conducted since 1990. More here.

Americans Increasingly Positive About Housing

January 7, 2014 Housing Market Comments Off on Americans Increasingly Positive About Housing

The number of Americans who have a positive perception of the current housing market has improved significantly from a year earlier, according to Fannie Mae’s December National Housing Survey. The year-over-year gains reflect an increasingly strong recovery, despite a dip in sentiment during the fall. For example, the percentage of respondents who feel it’s a good time to sell a house rose from 21 percent to 33 percent over the last year. The percentage of participants who said they felt it would be easy to obtain a home mortgage also increased over the past 12 months, from 45 percent last year to 50 percent in the most recent survey. Doug Duncan, senior vice president and chief economist at Fannie Mae, said consumer attitudes about the ease of getting a mortgage today are at their highest level in the survey’s three-and-a-half-year history. According to Duncan, that improvement should help offset the effects of higher mortgage rates and support a continued but measured housing recovery as we move through 2014. Also, the number of Americans who believe now is a good time to buy a home jumped to 67 percent and the percentage of respondents who feel their personal financial situation will get better in the next year was up four points to 42 percent. More here.

Realtor Report Finds Optimistic Outlook

January 7, 2014 Housing Market Comments Off on Realtor Report Finds Optimistic Outlook

According to a monthly survey of Realtors, market conditions are still good, though not as strong as before. The survey – which measures confidence in the current market and expectations for the future – provides monthly information about buyer/seller traffic, price trends, buyer profiles, and issues affecting the real-estate market. Despite little change in overall perception from October to November, Realtor confidence in the market for single-family homes over the next six months jumped four points, rising to 64 from 60 in October. The survey is scored so that any number above 50 indicates moderate market conditions. According to respondents, buyer traffic slowed in late autumn but is expected to pick up now that the holidays are over and the spring-selling season is only a few months away. Also in the report, a seasonal slowdown in home prices combined with steady mortgage rates and rising incomes has lead to a slight boost in affordability, though the overall trend remains down. More here.

Job Growth To Drive Housing Market In 2014

January 6, 2014 Housing Market Comments Off on Job Growth To Drive Housing Market In 2014

Industry experts and market analysts expect housing to continue to build on last year’s gains in 2014. Home prices – which rose 11 percent last year – will continue to rise, though at a slower rate. And those price increases will lead to fewer underwater homeowners and, as more homes are put up for sale, improved inventory levels. In addition to rising home values, analysts expect higher mortgage rates in the new year, though they believe it’ll have little effect on buyer demand, which is expected to remain at a healthy level. Celia Chen, an economist at Moody’s Analytics, predicts job growth will spur a surge in new residential construction this year. Chen believes the economy will add about 200,000 jobs a month, leading to greater housing demand and increased homebuilding activity. The spike in new residential construction will lead to even more jobs and support a stronger, growing economy in 2014, according to Chen. More here.

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