Today’s News Synopsis:
Mortgage loan application volume decreased 2.9 percent, according to the MBA. CoreLogic estimates that 1 in every 200 mortgage applications contain fraudulent information. Barclays believes commercial real estate values will decrease by 25 percent. CoreLogic reports California home prices increased by 7.9 percent in a year.
In The News:
Mortgage Bankers Association – “Mortgage Applications Decrease in Latest MBA Weekly Survey” (7-14-10)
“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 9, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 2.9 percent on a seasonally adjusted basis from one week earlier. This week’s results include an adjustment to account for the Independence Day holiday. On an unadjusted basis, the Index decreased 12.6 percent compared with the previous week.”
Housing Wire – “One in 200 Mortgage Applications May Contain Bad Data: CoreLogic” (7-14-10)
“The risk of mortgage fraud continues to decline, but one in 200 conforming loan applications could still contain misrepresentations in the file that could lead to default, according to projections in the July 2010 edition of the CoreLogic (CLGX: 18.87 -0.68%) Mortgage Fraud Trends Report”
Housing Wire – “Architect Group Sees No Sign of Commercial Construction Recovery Until 2011″ (7-14-10)
“Spending on nonresidential construction, which includes commercial and institutional facilities such as schools and churches, is expected to drop more than 20% this year before rising again in 2011, according to the American Institute of Architects (AIA).”
Housing Wire – “Retail Sales Drop 0.5% in June, More than Forecast; Housing Hit” (7-14-10)
“The U.S. Census Bureau announced today that advance estimates of retail and sales for June were $360.2bn, a decrease of 0.5% from the previous month after plunging 1.1% in May. Economists surveyed by Dow Jones Newswires had forecast a 0.3% decline. Year-on-year, however, the numbers are up 4.8%.”
Bloomberg – “U.S. Insurers Can Endure More Property Declines, Barclays Says” (7-14-10)
“Barclays projects real estate price declines of an additional 25 percent and ‘has actually reached an upbeat conclusion as far as the major life insurers are concerned,’ analyst Eric Berg said in a research note today. U.S. commercial property values in April were down 41 percent from their October 2007 peak, according to Moody’s Investors Service.”
Orange County Register – “Calif. is nation’s hottest home market” (7-14-10)
“CoreLogic put California at the top of the national real estate charts for May, with its home-price report saying Golden State home prices rose 7.9% in a year when all sales are considered (and up 6.1% in the 12 months ended in May when distressed homes are taken out of the math!) Nationally, prices were up 2.9% in a year for all deals and up 0.9% minus distressed deals.”
Orange County Register – “Fed fears weak housing without tax break” (7-14-10)
“Although readings from the housing sector had been strong through mid-spring, participants noted that the strength likely reflected the effects of the temporary tax credits for homebuyers. Indeed, data for the most recent month suggested that, with the expiration of those provisions, home sales and starts had stepped down noticeably and could remain weak in the near term; with lower demand and a continuing supply of foreclosed houses coming to market, participants judged that house prices were likely to remain flat or decline somewhat further in the near term.”
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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.