Today’s News Synopsis:
According to Case-Schiller index, property values increased 0.6% year over year. On the other hand, Freddie Mac reports that home prices decreased 3.1% from the 3rd quarter of 2009. Zillow claims interest rates increased to 4.3% last week.
In The News:
Bloomberg - “Home Prices in U.S. Cities Rose Less Than Forecast” (11-30-10)
“The S&P/Case-Shiller index of property values climbed 0.6 percent from September 2009, the smallest gain since January, the last time prices declined year over year, the group said today in New York. The increase was smaller than the 1 percent median forecast in a Bloomberg News survey of economists.”
San Francisco Chronicle – “Consumer confidence in Nov. hits 5-month high” (11-30-10)
“A monthly survey shows Americans’ confidence in the economy rose in November to the highest level in five months amid more hopeful signs.”
Housing Wire – “Zillow: 30-year mortgage rates trend upward to 4.3%” (11-30-10)
“Reversing last week’s trend, the 30-year, fixed-mortgage rate increased for the week ending Tuesday to 4.3%, according to the Zillow Mortgage Marketplace weekly update. The rate rose from 4.27% the week prior.”
Housing Wire – “MGIC changes underwriting guidelines in response to market conditions” (11-30-10)
“Starting Dec. 1, MGIC will insure mortgages with a debt-to-income ratio up to 45% if the borrower has a credit score equal to or greater then 740. The loan must also be either a fixed-rate product or minimum 5-year adjustable-rate.”
Housing Wire – “Freddie Mac: Home values down 3.1% in 3Q” (11-30-10)
“U.S. home values fell 3.1% in the third quarter from last year, according to the Freddie Mac conventional mortgage home price index.”
Bloomberg - “Banks in U.S. Resisting Calls to Repurchase Fannie Mae, Freddie Mac Loans” (11-30-10)
“The two government-owned mortgage companies are enforcing contracts that require lenders to buy back loans that didn’t meet underwriting standards. At the end of September, the companies reported, banks hadn’t responded to $13 billion in buyback requests. A third of those were at least four months old and Freddie Mac has begun to assess penalties for the delays. ”
Orange County Register – “Late pay on O.C. mortgages stabilizes” (11-30-10)
“According to CoreLogic’s latest late-mortgage report, 7.29% of Orange County home-loan borrowers as of September are 90 days-plus late with their house payments.”
One year ago, Edward Pinto expected 20 percent of FHA’s mortgage loans to default. The Federal Reserve bought $16 billion worth of mortgage-backed securities in one week. According to Michael Barr, Over 650,000 mortgage modifications were being processed, and over 375,000 borrowers would receive permanent modifications by the end of 2009. A survey from Barclay’s showed that as a U.S. citizen’s net worth increases so does the proportion of their wealth invested in real estate.
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 event 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 200 podcasts in our free investor radio archive.