Tag Archives: Housing Affordability

More homeowners continue to reap benefits from the newly modified Home Affordable Refinance Program, with 79 percent of homeowners with government-backed mortgages either keeping the same level of mortgage debt as before or reducing it over the first quarter. Of those homeowners, Freddie Mac found recently, 79 percent held onto the same level of debt for first-lien home mortgages, while 21 percent of homeowners shaved off dollars from their principal balance. The share of borrowers keeping their original loan amounts hovered at the highest level in the 26-year history of the survey.

The Obama administration made another push Friday to expand refinancing opportunities for homeowners, with HUD Secretary Shaun Donovan behind the effort to adopt any one of three bills currently in Congress. Officials told reporters in a teleconference Friday that President Barack Obama would appear with a family in Nevada later that day to tout the need for a wider refinance net. The HUD secretary outlined three bills before Congress that seek to streamline the refinance application process and increase servicer competition by reducing barriers.

Jittery investors retreated to U.S. Treasury debt this week after upsets in French and Greek elections, a movement that yet again drove mortgage rates to all-time lows. Freddie Mac found Thursday that the 30-year fixed-rate mortgage broke records by falling to 3.83 percent, down from 3.84 percent last week. Finance Web site Bankrate.com, which releases a survey at the same as Freddie each week, found similar results, with the 15-year fixed-rate mortgage hitting 3.2 percent and the jumbo 30-year loan falling to 4.54 percent, both new lows.

Home prices rose by a seasonally adjusted 0.2 percent in February, the first increase since March last year, according to Lender Processing Services. The analytics and data provider said that several other indicators posted solid gains in February. Home prices averaged $195,000, the same as seen in June 2003. LPS also projected a 0.3 percent increase in national home prices on the whole come March. Of 26 metro areas surveyed by LPS and the Labor Department, only cities in California ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô Los Angeles, San Diego, and San Francisco ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô observed price declines.

Noting some recent strengthening in demand in the housing market, Capital Economics suggests housing prices "are close to, or already through, their trough," and recovery will continue through the coming months. While acknowledging the decline in home sales in March, Capital Economics├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ó analysts remain optimistic due to the recent increases in pending home sales. The National Association of Realtors' latest Pending Home Sales Index in March reached 101.4, its highest level since April 2010. Recent data on mortgage applications also point toward a strengthening market.

Solvency issues re-emerged for the Federal Housing Administration in a hearing convened Tuesday by the Senate Banking Committee, with HUD Secretary Shaun Donovan calling for lower loan-to-value thresholds and more servicer competition to expand refinance opportunities. The hearing follows a bill by Sens. Barbara Boxer and Robert Menendez to roll back refinancing barriers for homeowners with GSE-held mortgages and featured the legislation as lawmakers discussed solutions to the housing crisis. The hearing quickly turned to servicer competition.

Home prices declined by 0.6 percent on an annual basis in March, according to CoreLogic's latest Home Price Index, released Tuesday. However, when distressed sales ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô foreclosure sales and short sales ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô are taken out of the equation, the nation actually experienced a rise in home sales from March 2011 to March 2012 ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô an increase of 0.9 percent. Also notable: Overall home prices ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô including distressed sales ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô rose on a monthly basis in March for the first time since July 2011. Accounting for all transactions, prices are now 33.7 percent below their April 2006 peak.

Interest rates for 30-year fixed-rate mortgages slid this week to 3.65 percent, a four-year low made feasible by turmoil in French and Greek elections, real estate Web site Zillow said Tuesday. The 30-year loan fell from 3.69 percent last week and represents the lowest recorded by Zillow since the Web site began tracking mortgage rates in April 2008. Interest rates for the 30-year also zigzagged across the country, falling most steeply in places like Colorado and Illinois. Rates for the 15-year fixed-rate loan averaged 2.91 percent, alongside 2.52 percent for 5-year and 1-year adjustable-rate mortgages.

The U.S. housing market continues to trudge down the slow, bumpy road to recovery with a few positive indicators lighting the way. However, a full recovery continues to linger listlessly on the horizon. Obama's Housing Scorecard for April, released jointly by HUD and the Treasury Department, reveals some positive movement in home sales, though prices continue to languish in many markets. Another piece of good news for the market: Housing inventory is now at a sustainable level. The market currently holds a 5.3-month supply of new homes.

The Mortgage Bankers Association released a report Friday that ranked mortgage giant Wells Fargo last year's top commercial and multifamily mortgage originator. The trade group offered a set of comprehensive listings responsible for tracking originations by different investor groups. Wells Fargo snagged mentions in several listings, including those for commercial banks, savings institutions, Fannie Mae, Ginnie Mae, the Federal Housing Administration, Real Estate Investment Trusts, and other investors.