Today’s News Synopsis:
A study from NAR shows that realtors are seeing a 13.6 percent decline in their median income. According to the MBA’s weekly survey, the mortgage loan application volume increased 12.8 percent from the previous season. Fed Chairman Ben Bernanke is expected to announce the end of the recession, and plans to keep rates at the record low. A report shows that state foreclosure prevention programs have failed to keep borrowers from losing their homes.
In The News:
NAR – “Realtors® Weather the Commercial Real Estate Market” (9-23-09)
“The study’s results represent Realtors® who practice commercial real estate; these Realtors® comprise more than 81,000 of NAR’s 1.2 million members. The survey shows that the median sales volume in 2008 was down nearly 10 percent since 2006, resulting in a 13.6 percent decline in median income. However; the results also showed a 33 percent increase in commercial leasing volume during the same two-year period.”
Mortgage Bankers Association – “Mortgage Refinance Applications Increase as Rates Drop in Latest MBA Weekly Survey” (9-23-09)
“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September 18, 2009. The Market Composite Index, a measure of mortgage loan application volume, increased 12.8 percent on a seasonally adjusted basis from one week earlier, which was a holiday shortened week. On an unadjusted basis, the Index increased 24.6 percent compared with the previous week and 14.0 percent compared with the same week one year earlier.”
Los Angeles Times – “To foster recovery, Fed likely to leave rates at record-low, economic supports in place” (9-23-09)
“Fed Chairman Ben Bernanke and his colleagues, who resumed meeting Wednesday morning, are expected to announce in the afternoon that the recession is likely over and that America’s economic and financial climate is improving. But they’ll also warn that rising unemployment, and still hard-to-get-credit for many people and companies, will make for a plodding rebound.”
Bloomberg – “Apollo and Colony Mortgage REITs Cut Stock Sales by 50 Percent” (9-23-09)
“Apollo Commercial Real Estate Finance Inc. and Colony Financial Inc., both formed to invest in debt backed by commercial property, halved the size of their initial public offerings.”
Bloomberg – “Marriott to Write Down $760 Million in Timeshares” (9-23-09)
“Marriott International Inc., the largest U.S. hotel chain, plans to take a third-quarter pretax charge of $760 million in its timeshare business as the economic slowdown cuts leisure travel and investing.”
Bloomberg – “State Foreclosure Prevention Programs Ineffective, Study Shows” (9-23-09)
“State foreclosure prevention programs have failed to save borrowers from losing their homes and haven’t improved their chances of modifying loans, a consumer advocacy group’s study found.”‘
Orange County Register – “Calif. renters face nation’s 2nd highest financial strain” (9-23-09)
“No matter how you slice it — well, how the Census Bureau slices it — California is a pricey place to be a renter. And those huge costs are certainly no help when family checkbooks get stretched by a recession.”
Orange County Register – “More south coast homes in escrow over prior months” (9-23-09)
“Laguna Beach saw 27 closed sales in the last 30 days, improving just slightly over the previous report (26 homes sold in that period). Dana Point also saw 27 closed sales in the last 30 days, which is an improvement over the last report’s 25 sold homes.”
Orange County Register – “Help for first time home buyers in Huntington Beach” (9-23-09)
“The home buyers program involves a silent second mortgage with an equity share. Principal payments are deferred and due in the 30th year. The loan term is 45 years.”
Looking Back:
One year ago, the MBA reported that the level of commercial/multifamily mortgage debt had grown to $3.44 trillion. The FHFA announced that home prices had fallen to 2005 levels. Lennar Corp. reported its six straight quarterly loss.