mortgage economy: Home Affordability Peaked Last Quarter; Purchasing Power Sinks 10% - 03/08/11 12:46 PM
Home affordability reached an all-time high in 2010′s last quarter. Unfortunately for home buyers in California , it’s been a different story since, however.
As mortgage rates cratered, and with home values soft, the Home Opportunity Index reached its highest level in 20 years. The index is published by the National Association of Home Builders. 
Close to 74 percent of the new and existing homes sold between October-December 2010 were affordable to families earning the national median income of $64,400. It’s the 8th straight quarter in which the Home Affordability Index surpassed 70 percent.
Prior to 2009, the HOI rarely topped … (1 comments)

mortgage economy: Military Personnel Can Still Claim The $8,000 Homebuyer Tax Credit - 03/07/11 11:43 AM
For certain members of the military, and for certain federal employees, there’s just 2 months remaining to get use the federal home buyer tax credit.
Eligible persons include members of the uniformed services, members of the Foreign Service, and intelligence community employees who served at least 90 days of qualified, extended duty service outside of the United States between January 1, 2009 and April 30, 2010.
Spouses of persons meeting the above criteria are eligible as well.
The federal home buyer tax credit ranges up to $8,000 for first-time home buyers, and up to $6,500 for existing homeowners. Existing homeowners must … (6 comments)

mortgage economy: Lock In Mortgage Rate BEFORE Friday’s Jobs Report! - 03/03/11 02:29 PM
Mortgage rates could move higher beginning tomorrow morning. The Bureau of Labor Statistics releases its February jobs report at 8:30 AM ET.
Home buyers and rate shoppers in Laguna Beach would be wise to take note. The jobs report is almost always a market-mover.
Consider last month.
Although net job creation fell well-short of expectations in January — just 36,000 jobs were added — the national Unemployment Rate dropped to 9.0%, its lowest level in 2 years. The marked improvement surprised economists and sparked inflationary concerns within the investor community.
This, in turn, caused mortgage rates to rise.
In the days immediately following … (0 comments)

mortgage economy: Forget The Case-Shiller Index! - 03/02/11 02:31 PM
Last week, Standard & Poor’s released its Case-Shiller Index for December 2010. The index is a home valuation tracker, meant to meausure the change in home prices from one period to the next.
December’s Case-Shiller Index showed major devaluations nationwide. As compared to December 2009, on a year-over-year basis, home values fell in 18 of the Case Shiller Index’s 20 tracked markets, and the U.S. National Index dropped 4 percent overall. 
The retreat puts December’s home values at similar levels as compared to early-2003.
That said, buyers and sellers in the Emerald bay area would be wise to take the findings … (3 comments)

mortgage economy: Pending Home Sales Drop Again:-( - 03/01/11 05:23 PM
After a strong run to close out 2010, the market for home resales softened a bit in January.
On a seasonally-adjusted basis, the Pending Home Sales Index dropped 3 percent last month, and December’s figures were revised downward for a loss, too, according to the National Association of REALTORS®.
A “pending home sale” is defined as a home under contract to sell, but not yet closed. 
The forward-looking index is now at a 3-month low on a national level, but still well ahead of its rolling 6-month average.
Unfortunately, national data isn’t overly helpful for buyers and sellers of real estate. … (2 comments)

mortgage economy: I won't press my luck with Mtg Rates!! - 02/28/11 05:56 PM
Mortgage markets improved last week as Wall Street’s concerns about the Middle East trumped its fears of inflation. Conforming and FHA mortgage rates in California fell to a 3-week low.
Last week marked the second straight week in which mortgage rates fell, a streak that follows four straight weeks of climbing mortgage rates.
It’s been a bout of good fortune for rate shoppers and home buyers.
In addition, according to Freddie Mac’s weekly mortgage rate survey, the average spread between conforming 30-year fixed rate mortgages and 5-year ARMs has widened further.
The two benchmark products are now separated by 1.15%. It’s … (2 comments)

mortgage economy: New Home Sales tank In January! - 02/25/11 12:29 PM
Not all housing reports are sunny, it seems.
In its monthly New Home Sales release, the U.S. Department of Commerce showed a 13 percent drop-off in annualized new construction sales between the months of December and January.
It’s the biggest one-month drop in New Home Sales since May 2010.
In addition, the supply of new homes for sale spiked higher to 7.9 months last month.  ”Home supply” is defined as the amount of time it would take to sell the complete “for sale” inventory at the current pace of sales.
In December, the supply measured just 7.0 months,
Don’t fret the … (2 comments)

mortgage economy: Existing Home Supply Down 40%... - 02/24/11 07:50 PM
Home resales rose another 2.7 percent last month, according to the National Association of REALTORS® monthly Existing Home Sales report.
An “existing home” is a home that’s been previously occupied and is not considered new construction.
The number of existing homes sold on a rolling 12-month basis is now at its highest point since May 2010, the month before the federal homebuyer tax credit ended. It’s also up some 40% since July 2010, the month after the tax credit ended.
But that’s not the biggest story in the Existing Home Sales report. The precipitous decline in home inventory deserves more attention.
… (1 comments)

mortgage economy: Cost of Living Reaches An All-Time High! Ouch:-( - 02/23/11 03:21 PM
Mortgage rates are up 0.875% since mid-November, causing home buyer purchasing power across Irvine to fall more than 10 percent since.
Persistent concerns over inflation are a major reason why and this week’s Consumer Price Index did little to quell fears. CPI rose for the third straight month last month.
Wall Street was not surprised.
As the economy has picked up steam since late-2010, the Federal Reserve has held the Fed Funds Rate near zero percent, and kept its $600 billion bond plan moving forward. The Fed believes this is necessary to support the economy in the near-term. 
Over the long-term, however, Wall … (0 comments)

mortgage economy: Mortgage Rates Improve! WOW:-) - 02/22/11 03:16 PM
Mortgage rates improved slightly last week, rebounding from the worst 1-week loss in recent history. The gains were geopolitical, however; the result of instability in the Middle East region. Economic data was overlooked as investors made a broad-based flight-to-quality.
For just the second time in 2011, conforming mortgage rates in Irvine fell on a week-to-week basis.
Rates shouldn’t have dropped, though. Here’s just a sampling of last week’s economic data, all of which can be tied to rising mortgage rates:
Oil prices are soaring on supply concerns The Producer Price Index touched a 2-year high Philadelphia Fed Manufacturing Survey predicted strong … (4 comments)

mortgage economy: Fed Minutes Show Lower Unemployment And Higher Growth For 2011 and 2012 - 02/21/11 04:11 PM
The Federal Reserve released its January 25-26, 2011 meeting minutes Wednesday afternoon. California mortgage rates have been in flux since.
Fed Minutes are comprehensive recaps of Federal Open Market Committee meetings; a detailed look at the debates and discussions that shape our nation’s monetary policy. As such, they’re released 8 times annually; 3 weeks after the most recent FOMC meeting.
Fed Minutes can be viewed as the unabridged version of the succinct, more well-known “Fed Statement” that’s released to markets immediately post-adjournment.
Just how much more lengthy are Fed Minutes?
The January 25-26, 2011 statement contains 395 words The January 25-26, 2011 meeting … (4 comments)

mortgage economy: Fed Minutes Show Lower Unemployment And More Growth For 2011 and 2012 - 02/18/11 02:03 PM
The Federal Reserve released its January 25-26, 2011 meeting minutes Wednesday afternoon. California mortgage rates have been in flux since.
Fed Minutes are comprehensive recaps of Federal Open Market Committee meetings; a detailed look at the debates and discussions that shape our nation’s monetary policy. As such, they’re released 8 times annually; 3 weeks after the most recent FOMC meeting.
Fed Minutes can be viewed as the unabridged version of the succinct, more well-known “Fed Statement” that’s released to markets immediately post-adjournment.
Just how much more lengthy are Fed Minutes?
The January 25-26, 2011 statement contains 395 words The January 25-26, 2011 meeting … (2 comments)

mortgage economy: Single-Family Housing Starts Fell In January, Despite What The Headlines May Have Told You... - 02/17/11 03:54 PM
Annualized Single-Family Housing Starts dropped 1 percent in January to 413,000 units nationwide, it’s lowest reading almost 2 years.
A “Housing Start” is defined as a home on which construction has started. 
Now, if you had only seen the Housing Starts story in the headlines today, you wouldn’t have known that single-family starts fell at all. It’s because of how the story is being reported.
Most commonly, newspaper headlines are reading something similar to “Housing Starts Jump 14.6%” with the lead paragraph making mention that “housing starts are at their highest levels in 4 years”.
It’s a true statement, but it’s misleading, too.
… (1 comments)

mortgage economy: Higher Sales In January for Home Builders! - 02/16/11 03:27 PM
Homebuilder confidence in the market for newly-built, single family homes appears stable as the spring buying season gets underway in Laguna Beach.
The confidence reading is recorded and reported monthly by the National Association of Homebuilders. For the 4th straight month, the group’s Housing Market Index reads 16.
As a market indicator, Housing Market Index has been tracked for more than twenty years and reports on a 1-100 scale. A value of 50 or better indicates “favorable conditions” for home builders.
HMI hasn’t read higher than 50 since April 2006.
Broken down, the Housing Market Index is actually a weighted composite … (1 comments)

mortgage economy: Retail Sales up for the 7th Straight Month! - 02/15/11 03:25 PM
If the measuring stick for the U.S. economic recovery is consumer spending, a full-on rebound is likely underway.
The Census Bureau released its national January Retail Sales figures and, for the seventh straight month, the data surpassed expectations. Last month’s retail figures climbed 0.3 percent as total sales receipts reached an all-time high.
It’s good news for the economy which is struggling back after a prolonged recession, but bad news for people who want a mortgage across the state of California. This includes home buyers and would-be refinancers alike.
Because consumer spending accounts for the majority of the U.S. economy, Retail Sales growth … (4 comments)

mortgage economy: Where will rates go now? - 02/14/11 04:20 PM
Mortgage rates worsened last week. Mostly because of more reports of an improving economy and fears of pending inflation, mortgage rates skyrocketed to their highest levels since April 2010. 
According to Freddie Mac, mortgage rates made their largest 1-week jump in more than a year last week, tacking on 0.24 percent and bringing the average national 30-year fixed mortgage rate up to 5.05%.
In some markets, rates are even higher.
Since bottoming out in Freddie Mac’s November 11 survey, conforming, 30-year fixed mortgage rates are now higher by close to a full percentage point. Home buyers in Newport Coast and across … (8 comments)

mortgage economy: Mortgage Rates Rise To April 2010 Level... - 02/11/11 03:01 PM
Mortgage rates are surging.
Over the last 7 days, conventional, 30-year fixed rate mortgage rates have jumped 24 basis points, or 0.24%, according to Freddie Mac’s weekly Primary Mortgage Market Survey.
It’s the largest 1-week spike in mortgage rates in recent history.
The 30-year fixed rate mortgage now averages 5.05% nationally. This is much, much higher than what we saw last November when mortgage rates were 4.17% and looked headed to the 3s.
That’s not the case today. In fact, it’s the opposite. 
Mortgage rates have risen quickly and fiercely this year. As of this morning, mortgage rates are higher over 9 … (3 comments)

mortgage economy: Foreclosures Rate Drops Throughout The Most Foreclosure-Heavy States! - 02/10/11 01:46 PM
Foreclosure activity is slowing. According to foreclosure-tracker RealtyTrac, the number of foreclosure filings dropped 17 percent on an annual basis last month. Monthly filings ticked higher 1 percent after a combined 23 percent decrease through November and December 2010.
The phrase “foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions. 
January marked the third straight month of sub-300,000 filings after 20 straight months above it.
As compared to January 2010, six of the nation’s 10 most foreclosure-heavy states posted an annual foreclosure filing reduction. The remaining four showed modest worsening.
It’s noteworthy that states like California and … (3 comments)

mortgage economy: Are Mortgage Rates still going up? - 02/07/11 06:37 PM
Mortgage markets worsened last week as Wall Street came to terms with the expanding economy; and realized the Federal Reserve may be trying to induce inflation.
Better-than-expected retail sales and positive job growth buoyed stock markets and sank bonds.
Mortgage rates in California rose for the 4th time in 5 weeks last week, extending a losing streak which dates back 4 months.
Today, fixed, conforming rates are three-quarters of a percent higher as compared to the market’s low point, November 3, 2010. For a $200,000 home loan, that size rate hike equates to an increase in a monthly mortgage payment of … (2 comments)

mortgage economy: Unemployment Rate Drops? - 02/04/11 04:08 PM
Americans are getting back to work. Sort of.
This morning, at 8:30 AM ET, the Bureau of Labor Statistics released its Non-Farm Payrolls report for January 2011. More commonly called “the jobs report”, the government’s data showed a large decrease in the number of working Americans as compared to December, but a sizable drop in the Unemployment Rate.
The job growth figures were much lower than consensus estimates:
Expected job growth in January : +148,000 jobs Actual job growth in January : +36,000 jobs January’s Unemployment Rate surprised analysts, too, but not in a bad way, falling from 9.4 percent in … (8 comments)