Today’s News Synopsis:
The NAHB reported an increase in confidence for homebuilding for the third month in a row. However, mortgage rates are down to a new low according to the latest survey released by the Mortgage Bankers Association. The number of existing homes increased again last month by 4% according to NAR, and shadow inventory is continuing to remain steady.
In The News:
Mortgage Bankers Association – “Mortgage Rates Drop to Another 2011 Low in Latest MBA Weekly Survey” (12-21-11)
“Mortgage applications decreased 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 16, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6 percent on a seasonally adjusted basis from one week earlier.”
Realty Times - “Builder Confidence Rises in December” (12-21-11)
“Builder confidence rose in December according to the National Association of Home Builders. This is the third straight month of improved confidence. The National Association of Home Builders/Wells Fargo Housing Market Index (HMI) indicates this is the highest level the market has seen since May 2010.”
Housing Wire – “Shadow inventory remains unchanged at 1.6 million” (12-21-11)
“National home prices continue to be pressured by a stream of distressed properties that threaten to push prices even lower, a CoreLogic (CLGX: 12.53 -1.88%) report said Wednesday.“
DS News - “Existing-Home Sales Rise in November” (12-21-11)
“Existing-home sales rose again last month, according to data released Wednesday by the National Association of Realtors (NAR). That assessment, however, is coming off of lower sales numbers than previously thought, reflecting revisions to NAR’s data going back to 2007.”
Bloomberg - “KB Home Fourth-Quarter Profit Beats Analysts’ Estimates on Higher Revenue” (12-21-11)
“KB Home (KBH), the Los Angeles-based homebuilder that targets first-time buyers, reported a quarterly profit that beat analysts’ estimates as sales and orders rose.”
CNN Money - “Unemployment benefits extension: What’s at stake” (12-21-11)
“The long-term unemployed are running out of time. In 11 days, a provision will expire that could cause millions of jobless Americans to lose a critical lifeline next year. At issue is the extension of emergency federal unemployment benefits, which allow the jobless to collect benefits for up to 99 weeks. Also at stake are the extension of a payroll tax cut, and the “doc fix,” which would prevent a scheduled pay cut to Medicare physicians.”
San Francisco Chronicle - “Bernanke Money Policy Seen Successful as Savers Become Consumers” (12-21-11)
“Federal Reserve Chairman Ben S. Bernanke finally may be catching a break: His easy-money policies are showing signs of speeding up the economic rebound three years after he cut interest rates to zero.”
Housing Wire – “Fannie nixes ‘ability to pay’ wall to HARP refinancing” (12-21-11)
“Lenders are no longer required to determine a borrower’s ability to repay a loan when underwriting mortgages for inclusion in Fannie Mae’s HARP 2.0 refinancing channel.”
The Wall Street Journal - “Demand for Rentals Drives Big Rise in Home Building” (12-21-11)
“Residential construction surged in November, sparking cautious hope that the U.S. housing market is gaining traction. Housing starts hit a seasonally adjusted annual rate of 685,000 units, the highest level in 19 months, the Commerce Department said Tuesday.”
Hard Money Loan Closed
Riverside, California hard money loan closed by The Norris Group private lending. Real estate investor received loan for $70,000 on a 3 bedroom, 1.5 bathroom home appraised for $117,000.
The Norris Group posted a new event. Bruce Norris will be speaking at the Real Estate Rewind at IRCA Los Angeles on January 3, 2012.
The Norris Group will be at the Real Estate Investor Rewind at CVREIA on January 10, 2011.
Modifications to foreclosures on Freddie Mac and Fannie Mae mortgages increased more than twice as much in the third quarter of 2010, according to Housing Wire. Shaun Donovan said he and Secretary of Energy Steven Chu were discussing plans of creating an energy scoring system for houses. Standard and Poor’s reported levels of securities backed by mortgages were the slowest they had been since 2007, both for commercial and residential property. NAHB stated that the driving force for the housing market were actually the smaller businesses. CBIA announced that construction on new homes increased 21% in December 2010.
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.
Tags: Barclays Capital, Ben Bernanke, bruce norris, Commerce Department, CoreLogic, fannie mae, Federal Reserve, KB Home, Market Composite Index, mortgage bankers association, National Association of Home Builders, national association of realtors, the norris group, Weekly Mortgage Applications Survey