The Norris Group Real Estate News Roundup 7/27/11

Today’s News Synopsis:

The FHFA reported that mortgage rates decreased to 4.62% in June, marking the third month in a row mortgage rates have been down.  On a weekly basis, mortgage applications decreased 5% from a week ago.  NAHB reported that the sale of new homes has only decreased 1%, thereby remaining consistently low.   Elizabeth Warren of the Consumer Financial Protection Bureau will be replaced by Raj Date.

In The News:

Housing Wire – “FHFA: Mortgage rates down for third straight month” (7-27-11)

“The national average mortgage rate charged for purchasing previously owned homes dropped 12 basis points to 4.62% in June, according to the Federal Housing Finance Agency.”

Mortgage Bankers Association “Mortgage Applications Decrease in Latest MBA Weekly Survey” (7-27-11)

“Mortgage applications decreased 5.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July 22, 2011.”

Bloomberg – “BofA Donates Then Demolishes Houses to Cut Glut” (7-27-11)

“Bank of America Corp. (BAC), faced with a glut of foreclosed and abandoned houses it can’t sell, has a new tool to get rid of the most decrepit ones: a bulldozer.  The biggest U.S. mortgage servicer will donate 100 foreclosed houses in the Cleveland area and in some cases contribute to their demolition in partnership with a local agency that manages blighted property.”

NAHB – “New Home Sales Remain Relatively Flat in June” (7-27-11)

“Sales of newly built, single-family homes declined 1 percent to a seasonally adjusted annual rate of 312,000 units in June, according to figures released today by the U.S. Commerce Department today.”

Housing Wire“Potential US downgrade may not disrupt REIT MBS investments” (7-27-11)

“Even if lawmakers fail to reach a compromise on the debt ceiling, leading to a sovereign rating downgrade, the agency mortgage-backed securities real estate investment trust model is likely to remain stable and viable, according to analysts at Keefe, Bruyette & Woods.”

DS News “Trepp Estimates Declines in Delinquency Rates” (7-27-11)

“Trepp, LLC estimates decreases in all types of bank loan delinquencies in the second quarter of 2011. Delinquencies are expected to decline among residential mortgages, commercial mortgages, construction loans, and commercial and industrial loans, according to Trepp’s estimates.”

Los Angeles Times “S&P chief says firm’s analysts don’t believe U.S. will default” (7-27-11)

“The head of Standard & Poor’s told lawmakers Wednesday the credit rating firm’s analysts don’t believe the U.S. will default on its obligations but are waiting for a “credible” plan to increase the debt ceiling by the Aug. 2 deadline that also will reduce the long-term budget deficit.”

San Francisco Chronicle – “Home prices tumble 4.5% in 20 U.S. cities” (7-27-11)

“Home prices in 20 U.S. cities dropped in the year ending in May by the most in 18 months, adding to evidence the housing market is struggling.  The S&P/Case-Shiller index of property values in 20 cities fell 4.5 percent from May 2010, the group said Tuesday. The decline matched the median forecast of 32 economists surveyed by Bloomberg News.”

DS News – “Elizabeth Warrent to Depart Consumer Financial Protection Bureau” (7-27-11)

“Raj Date will replace Elizabeth Warren as special advisor to the secretary of the Treasury on the Consumer Financial Protection Bureau (CFPB) when Warren departs from the agency at the end of this month, Treasury said in a statement Tuesday.”

Looking Back:

The S&P home price index suggested that prices increased by 1.3 percent from April to May 2010. 91 of the top 100 homebuying zip codes were in California. The vacancy rate for rental housing  remained flat at 10.6 percent for 2010. MPF Research reported the number of occupied apartments grew by 215,000 in the 64 largest U.S. markets in the first half of 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.

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