Inventories Rising Faster Than Usual

Inventories Rising Faster Than Usual

The number of homes for sale rose 4.3 percent in June to 1.9 million—the highest level in the past year. These gains are also higher than usual for this time of year, according to newly-released housing data from realtor.com®. 

Following two years of declines, housing inventory is finally reversing course. More home owners are seeing rising prices and may be more apt to try to sell their homes. Where Housing Bargains May Still Lurk
In some states, a glut of foreclosures remain, and foreclosures tend to sell at discounts. Many of these properties will likely enter the market in the next six to 12 months

Administration Warns Delinquencies Remain High

Administration Warns Delinquencies Remain High

Despite Decreases: Foreclosures and mortgage delinquencies may be declining, but that doesn’t mean the industry should let its guard down. In the Obama Administration’s latest housingscorecard, which provides an overview of the housing market based on private and public sector data, officials continued to warn of a “fragile” recovery despite improvements.

Recently, Lender Processing Services reporteddelinquencies have fallen 43 percent from their 2010 peak, while RealtyTrac found foreclosure starts decreased 45 percent year-over-year in June.
“Foreclosure starts and completions are down significantly from one year ago; and since January 2012, rising home values have lifted 2.4 million homeowners back above water. That said, we remain cautious because although mortgage delinquencies are trending down, they still remain quite high compared to historic norms,” said Kurt Usowski, assistant secretary for economic affairs at HUD. Learn more ....

7 Best Midsize Cities for Job Growth

7 Best Midsize Cities for Job Growth

Provo-Orem, Utah comes in second on best Midsize Cities,

Economists often say where jobs pick up, the housing market will soon follow. Forbes recently ranked metro areas to find which midsize cities are posting some of the largest job gains. Forbes reviewed employment data from 2001 through January 2013 for its rankings. The midsize cities that topped its list:

Report Suggests Intentional Underbuilding 
A few years ago, during the housing bubble, homebuilding outpaced population growth. 

Younger Buyers More Likely to Consider Foreclosed

Younger Buyers More Likely to Consider Foreclosed

Younger homebuyers are far more open to the idea of buying a foreclosure compared to older buyers, a National Association of Realtors’ (NAR) survey on buyer and seller trends revealed.

Overall, 44 percent of surveyed buyers said they did not consider a home in foreclosure. When broken down by age group, however, only 31 percent of Millennials (32 and younger) said they did not consider purchasing a home in foreclosure compared to 65 percent for buyers aged 67 to 87.
The share of buyers who did not consider a foreclosure increased with age, the NAR found. For example, among Generation X buyers (aged 33 to 47), 43 percent did not consider a foreclosure, while 53 percent of those aged 58 to 66 were in the same category. Tax Reform CFA: Do No Harm

Will Rising Mortgage Rates Cool the Market?

Will Rising Mortgage Rates Cool the Market?

A big jump in mortgage rates over the past two months may start to cool the rapid rise of home prices in the second half of the year, The Wall Street Journal reports. 

Mortgage rates have shot up from lows of 3.59 percent in the beginning of May, to 4.58 percent during the last week of June, according to the Mortgage Bankers Association. Rates are at their highest levels in two years. 

“A rule of thumb holds that every one percentage point increase in interest rates reduces affordability by 10 percent, so the recent move in rates just made homes about 10 percent more expensive to buyers who need to finance their purchase,” The Wall Street Journal reports.Foreclosures Down 29% From Year Ago

47% of Bankers Expect Delinquencies to Decrease

47% of Bankers Expect Delinquencies to Decrease

More bank professionals expect mortgage delinquencies to decline over the second half of this year than to than to stay the same, according to an industry survey released Tuesday by FICO, a San Jose, California-based analytics software provider.

This is the first time in the quarterly survey’s history the number of professionals expecting mortgage delinquencies to decline outpaced those who expect it to remain the same.
Shadow Inventory Falls 34% from 2010 Peak serious delinquencies, or mortgages past due by 90 days or more, are trending downward,

Don't Let Credit Checks Derail Buyers

Don't Let Credit Checks Derail Buyers
uyers may want to purchase furniture to outfit their new home prior to closing. But if they’re not careful, they could cause delays in closing or even lose their home loan.
Since 2010, mortgage giant Fannie Mae has mandated that lenders recheck a borrower’s credit prior to closing on a mortgage. If anything new arises in the credit re-check, lenders may want to delay the closing to verify the borrower can still afford the mortgage. In some cases, the lenders may even cancel the mortgage prior to closing, which could mean a higher interest rate on a new loan. 
“We tell our clients about this upfront, and keep reminding them through the entire process not to go buy a new bed or a refrigerator,” says Michael Daversa, president and founder of Atlantic Residential Mortgage. “What you’re supposed to do is keep everything status quo.” July State of Market, Where Cost Per Square Foot