“The Pending Home Sales Index (PHSI) jumped 5.2 percent in October to 104.8, its highest level since March 2007, the National Association of Realtors (NAR) reported Thursday. Economists had expected a smaller increase to 100.5.
The September index was revised up to 99.6 from the originally reported 99.5.
On Wednesday, the Census Bureau and HUD reported jointly new home sales—the equivalent of the PHSI—had declined an ever-so-slight 0.37 percent in October. Both reports measure contracts for the purchase of a home.
The PHSI and new home sales report usually move in the same direction…”
Read the rest of DSNews.com’s article here: “Pending Home Sales at Highest Level Since March 2007”.
Have you considered strategically defaulting on your mortgage? According to the article below by DSNews.com, there are many homeowners who are now more seriously considering stopping their mortgage payments. What’s changed their mind? The presidential election. Another reason for the proposed future raise in strategic defaults is the soon-to-expire Mortgage Debt Relief Act of 2007. Read more about this topic below:
“A foreclosure agency suggested borrowers may be more encouraged to strategically default due to the expectation that little will change over the next four years surrounding policies on housing and the economy.
Strategic default occurs when a borrower stops making mortgage payments on a property he or she can afford. Typically, strategic defaulters are also underwater. In a recent survey of YouWalkAway.com customers, 47 percent said they believe the Obama administration had no effect on the foreclosure crisis.
About 31 percent believe the administration had a negative effect, and 22 percent of respondents said they think the Obama administration had a positive effect on the foreclosure crisis, the agency reported.
Due to the perception that housing issues are not a priority for the current administration, YouWalkAway said, ‘underwater homeowners who were previously undecided about whether or not they should strategically default are choosing to do so given the election results’…”
Read more of this article by going to DSNews.com.
Are you facing foreclosure? Curious about short selling your home? Please contact me–I would appreciate the opportunity to see if I can help your situation!
“Despite a number of potentially damaging headwinds, the ongoing housing recovery will remain sustainable for the foreseeable future, analysts for Capital Economics say in a recently released report.
The housing industry’s rapid rebound took many experts by surprise-even the researchers who authored the report admit they “have been slightly taken aback” by the recovery’s speed. However, they point to several major indicators that show the current upturn is more than a temporary blip or a false recovery.
Sustained rises in demand, home prices, homebuilding activity, and new and existing-home sales all demonstrate that the market is seeing a lasting recovery, they say. They also forecast further price growth of 5 percent in each of 2013 and 2014.
What’s more, even as prices rise, valuation and affordability-“the cornerstone on which the improvement in housing is being built”-remain very favorable.
The major threats to the market at this juncture, the analysts say, are the potential for a new American recession (brought on by complications from the fiscal cliff and the potential of a partial euro-zone break-up) and the risk that properties in the shadow inventory will flood the market and drive prices down…”
This article is from DSNews.com; read the rest of it here: “Housing Recovery Is Sustainable, According to Market Analysts”.
Zillow issued a released Friday reporting that both national home values and rents rose in the month of April.
According to the April Zillow Real Estate Market Reports, national home values rose 0.7 percent in April to a Zillow Home Value Index of $147,300. This is the largest monthly increase in home values since January 2006, and it makes April the second month in a row in which home values climbed up.
Zillow also reported that rents rose from March to April, increasing by 1.6 percent, according to the Zillow Rent Index. Of the 178 markets covered by Zillow, 78 percent experienced a rise in rents.
The Miami-Fort Lauderdale and Phoenix metro areas saw the biggest increases in home values, rising 1.6 and 1.9 percent, respectively. Values continued to decrease in hard-hit markets like Atlanta, where home values fell 0.7 percent.
“The housing market continues to show positive signs, with home values increasing significantly in April,” said Dr. Stan Humphries, chief economist at Zillow. “The recovery is moving in the right direction, but we caution that negative equity will cast a long shadow over the housing market. With almost one-third of homeowners with mortgages underwater and unable to sell their homes, inventory is having a hard time keeping up with increasing demand in many areas. We’ll continue to watch this signal as increasing home values turn from a blip into a trend.”
Foreclosures also continued to decline in April, with 6.8 out of every 10,000 homes being foreclosed across the U.S. That figure was down from 8 out of every 10,000 in March.
Read the rest of this article by DSNews.com here: “Zillow: Home Values See Highest Monthly Increase Since 2006”.
Just when it seemed like rates could not fall any further, Freddie Mac reported fixed mortgage rates sunk even further for the week ending May 10.
The 30-year fixed-rate mortgage averaged 3.83 percent (0.7 point), down slightly from last week’s average of 3.84 percent. A year ago at this time, the 30-year was 4.63 percent.
The 15-year fixed also moved downward, ending at 3.05 percent (0.7 point) this week. Last week it averaged 3.07 percent, and last year at this time it was 3.82 percent.
The 5-year ARM dropped to 2.81 percent (0.5 point) compared to 2.85 percent last week and 3.41 percent a year ago at this time.
The 1-year ARM moved up to 2.73 percent (0.5 point). Last week the 1-year ARM averaged 2.70 percent and 3.11 percent a year ago…
Read the rest of DSNews.com’s article here: “Rates Continue to Fall Hitting New Lows Amid Economic Concerns”.
On a quarterly basis, foreclosures decreased to 198,000 in the first quarter of 2012 compared to 232,000 through the same quarter a year ago.
Overall, since the start of the financial crisis in September 2008, there have been approximately 3.5 million completed foreclosures.
Overall, growth is expected to continue for the year, but at a modest rate, according to the Fannie Mae February 2012 Economic Outlook report.
Economic growth is projected to be at 2.3 percent for 2012, an increase compared to 1.6 percent last year, according to the report.
For the first time in seven years, the housing market is projected to contribute to gross domestic product (GDP), the report also stated, but by a very modest amount.
“Risks to the forecast are more balanced between the upside and downside since our January forecast,” said Fannie Mae chief economist Doug Duncan. “The economy appears to be more resilient than in previous months, and should be less vulnerable to shocks, including any spillover from the European sovereign debt crisis”…
Read the rest of this article (and photo) by DSNews.com here: “Moderate Growth Projected for 2012.”