Sources:
LPS: Delinquency Rate Suddenly Spikes in September
Three Bank Failures Raise 2012 Tally to 46
Mortgage Applications Decrease in Latest MBA Weekly Survey
U.S. Home Prices Rose 0.7% in August From July, FHFA Says
New-home sales up 27 percent from a year ago
Pending home sales up for 17th consecutive month
Mortgage Rates in U.S. Increase With 30-Year at 3.41%
First-Time Jobless Claims Drop Sharply
Fannie Mae Limiting Loans Helps JPMorgan Mortgage Profits
More Americans delaying retirement until their 80s
Bank of America sued for alleged mortgage fraud
Homebuilders need more land as housing recovery continues
RBS Settles Nevada Subprime Allegations for $42M
Today’s News Synopsis:
This week’s video is a slideshow of a few big news stories of the week. LPS reported home prices increased 2.6% year-over-year in August. GDP also increased 2% in the third quarter, a faster rate than what forecasters predicted. Citigroup is being fined by Massachusetts regulators over leaked information regarding an initial public offering by Facebook.
In The News:
Housing Wire- “Annual home prices rebound and rise 2.6%: LPS” (10-26-12)
“Home prices grew 2.6% over last year in August with the average home price hitting $205,000, according to the latest Home Price Index from Lender Processing Services.”
Bloomberg- “Economy in U.S. Grows at 2%Rate, More Than Forecast” (10-26-12)
“The U.S. economy expanded more than forecast in the third quarter, paced by a pickup in consumer spending, a rebound in government outlays and gains in residential construction.”
DS News – “GDP Up 2% in Q3, Beating Forecasts” (10-26-12)
“Led by increases in personal consumption, government spending, and residential investment, the U.S. economy grew at an annual rate of 2.0 percent in the third quarter, the Bureau of Economic Analysis (BEA) reported Friday, faster than economists expected and a strong rebound from the 1.3 percent growth rate in the second quarter.”
Realty Times- “Mortgage Rates Relatively Unchanged” (10-26-12)
“In Freddie Mac’s results of its Primary Mortgage Market Survey®, fixed mortgage rates moved slightly higher while continuing to remain near their all-time lows helping to support the housing market.”
CNN Money- “Citigroup unit fined $2 million over Facebook disclosures” (10-26-12)
“Massachusetts regulators on Friday fined a Citigroup unit $2 million for failing to prevent analysts from illegally leaking confidential information about Facebook’s initial public offering.”
DS News – “Yearly Price Gains Maintained by Decrease in Distressed Sales” (10-26-12)
“Summer’s end may have led to the close of a strong home-buying season, but a decrease in distressed sales is helping prices maintain their yearly gain and some regions are still experiencing monthly price increases.”
Bloomberg- “Colony Spends $1.5 Billion on Homes as Next REIT Boom: Mortgages” (10-26-12)
“Colony Capital LLC founder Tom Barrack is betting $1.5 billion that single-family homes caught in the U.S. “butcher factory” of foreclosures are the basis for a new class of real estate investment.”
Housing Wire- “Homebuilders need more land as housing recovery continues” (10-26-12)
“While the U.S. housing industry continues to stay positive, obstacles remain in the wake of the next decade, according to Moody’s Investors Service analysts.”
DS News – “FHFA Projects Decreasing Borrowing Costs for GSEs” (10-26-12)
“The projected taxpayer cost to preserve the profitability of Fannie Mae and Freddie Mac is lower now that the GSEs are not expected to draw from Treasury to pay dividends and home prices are increasing, according to a report from the Federal Housing Finance Agency (FHFA).”
Hard Money Loan Closed
Riverside, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $112,000 on a 3 bedroom, 1 bathroom home appraised for $174,000.
Bruce Norris of The Norris Group will be at the OC Investors Club in Tustin today, October 26, 2012.
Bruce Norris of The Norris Group will be at the Cutting-Edge Financial Tactics Brunch at the Mission Inn in Riverside on Saturday, October 27, 2012.
Bruce Norris of The Norris Group will be at the OCRE Forum at the Chinese Cultural Center in Riverside on Wednesday, November 7, 2012.
Looking Back:
New homes increased 5.7% the previous month, the highest they had been in 5 months. According to the latest Mortgage Bankers Association survey, mortgage applications were up almost 5% from last week. According to The Wall Street Journal, both the values and rent for apartments were on the rise.
For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.
About Bruce Norris
Bruce Norris is an active investor, hard money lender, and real estate educator with over 30 years experience. Bruce has been involved in over 2,000 real estate transactions as a buyer, seller, builder and money partner.
Tags: bruce norris, Bureau of Economic Analysis, Citigroup, colony capital, Facebook, fannie mae, FHFA, freddie mac, Lender Processing Services, Moody's Investors Service, Primary Mortgage Market Survey, the norris group, Tom Barrack, treasury