Today’s News Synopsis:
Freddie Mac announced the average rate for 30-year fixed loans sank to 4.58 percent this week. According to the NAR, pending home sales decreased 30 percent from April. President Obama is expected to sign the extension to the home buyer tax credit. RealtyTrac reports that foreclosure sales took up 31% of all home sales in the US through Q110.
In The News:
Associated Press – “Mortgage rates drop to another low, 4.58 pct.” (7-1-10)
“Mortgage company Freddie Mac said Thursday the average rate for 30-year fixed loans sank to 4.58 percent this week. That’s down from the previous record of 4.69 percent set last week and the lowest since the mortgage company began keeping records in 1971. The last time they were cheaper was the 1950s, when most long-term home loans lasted just 20 or 25 years.”
NAR - “Pending Home Sales Drop as Expected” (7-1-10)
“The Pending Home Sales Index,* a forward-looking indicator, dropped 30.0 percent to 77.6 based on contracts signed in May from a reading of 110.9 in April, and is 15.9 percent below May 2009 when it was 92.3. The falloff comes on the heels of three strong monthly gains as home buyers rushed to take advantage of the tax credit.”
CNN - “Homebuyer credit extension heads to Obama” (7-1-10)
“First-time homebuyers will have until Sept. 30 to close on their purchases and land an $8,000 tax credit under a bill passed by the Senate late Wednesday. President Obama is expected to sign the bill, which was overwhelmingly approved by the House on Tuesday. The deadline had been June 30.”
Housing Wire – “Short Sale Discounts Vary Widely from State to State” (7-1-10)
“This week, RealtyTrac released a report that foreclosure sales took up 31% of all home sales in the US through Q110. According to the report, there were 88,000 pre-foreclosure sales, often short sales, in Q110, for an average discount from retail home prices of 14.7%. By comparison, REO discounts in the US averaged 34%.”
Housing Wire – “CoreLogic’s Mark Fleming: The Recovery Looks Like a ‘U’, Not a ‘W’” (7-1-10)
“Our economists have been more concerned about a U-shaped recovery, rather than a double dip. What they see as more likely is a long bottom drifting up slowly, following the same ‘U’ shape as the 2000 recession, only with a longer, more pronounced bottom.”
Housing Wire – “Fannie Updates Appraisal Policies” (7-1-10)
“Fannie will now require interior photographs of specific rooms and areas of the house in the appraisal report. The GSE provided guidance on when an appraisal is considered deficient and when a lender can make changes to the opinion of market value based on underwriter judgment, automated valuation models or other methodology. The policy changes take effect for all mortgage loan applications dated on or after Sept. 1, 2010.”
Orange County Register - “12,300 O.C. building jobs lost in year” (7-1-10)
“O.C. building trades shed 12,300 jobs in the past year, according to a recent analysis of federal employment data by the Associated General Contractors of America. In all, Orange County construction employment fell by 16% from May 2009 to May 2010.”
Realty Times – “Should You Buy A Condo?” (7-1-10)
“Maintenance. Most condominiums require very little maintenance from their tenants. Yard work and the like are done and paid for through your monthly dues. Reserve funds are saved up by the condo association for larger periodic repairs, such as roof replacement and painting. Amenities. In many condominium communities you’ll find you have access to a clubhouse, pool, exercise facilities, concierge, or even door security. These great perks cost you nothing extra and are quite the draw for many buyers.”
Looking Back:
One year ago, the NAR reported that pending home sales remained relatively flat from April to May. Mortgage application volume decreased 18.9 percent within one week. Kenneth Rosen, an economist from the University of California, predicted that as many as one in five U.S. hotel might default by the end of 2010.
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