Today’s News Synopsis:
Mortgage rates increased to 4.35 percent after weeks of record-breaking lows. Jobless claims fell 5.6% last wek, according to the Labor Department. Callahan & Associates reports credit unions originated $31.4 billion in mortgages during the first 2 quarters. Statistics from Real Capital Analytics show hotel purchases increased 136% during the first two quarters.
In The News:
Mercury News – “Mortgage rates edge up this week from decades low” (9-9-10)
“Mortgage buyer Freddie Mac says the average rate for a 30-year fixed loan was 4.35 percent, up from 4.32 percent the week before. It was only the second rise in the past 12 weeks. Last week’s was the lowest number since Freddie Mac began tracking rates in 1971.”
Orange County Register - “Real estate licenses fall for 30th month” (9-9-10)
“California real estate licenses dropped to 479,518 as of July, down by nearly 70,000 from an all-time high of 549,244 in November 2007.”
Housing Wire – “Weekly jobless claims fall 5.6% to 451,000″ (9-9-10)
“Initial jobless claims fell 5.6% for the week ended Sept. 4, coming in well below analysts’ estimates and marking the third-consecutive week of declines in the number of people filing for unemployment. The Labor Department said seasonally adjusted initial claims decreased by 27,000 to 451,000 from the previous week’s revised figure.”
Housing Wire – “Credit union mortgage originations down 43% from last year” (9-9-10)
“Credit unions originated $31.4 billion in mortgages through the first half of 2010, down 43% from the $55.3 billion completed in the same time last year, according to data compiled for HousingWire from research firm Callahan & Associates.”
Housing Wire – “Despite popular belief, research finds the US is not in double dip recession” (9-9-10)
“An expected decline in housing prices notwithstanding, academics are now arguing that the U.S. economy is not seeing another downturn, although that is the way it feels since recovery is so slow. During the latest recession, the U.S. shed 4.1% of gross domestic product from peak to trough. The unemployment rate more than doubled, rising to 10.% in October from 5% in December 2007, according to statistics from the Federal Reserve Bank of Cleveland.”
Bloomberg - “Hotels Lure Investors as Lodging Surpasses U.S. Offices, Retail” (9-9-10)
“Sales of hotels jumped 136 percent in the first half of 2010 from a year earlier, the biggest gain among five commercial real estate categories tracked by New York-based Real Capital Analytics Inc. Those deals were based on transactions of at least $5 million and exclude hotels attached to casinos.”
Looking Back:
One year ago, mortgage loan application volume increased 17% in one week. Mortgages with 30+ days of delinquency increased to 3.89% in the 2nd quarter. Fitch Ratings estimated that 70 percent of the option ARMs would reset by 2011. Bankruptcy declarations from wealthy families increased 73% from 2008 to 2009.