Freddie delinquencies tick up for first time in 10 months
Increased mortgage delinquencies could adversely affect RMBS: S&P
July Pending Home Sales
Ben Bernanke Provides No Relief
C.A.R sends letters to top lenders re: short sales
Gov. Jerry Brown proposes job creation plan for California
Today’s News Synopsis:
In this week’s video, Aaron Norris gives the news of the week in the world of real estate and other big events. Bloomberg reported Ben Bernanke has still not provided any good news for the economy. Zillow recenlty estimated that the prices of homes declined over 4% last June. Delinquencies are still on the rise, however, foreclosures and distressed sales are decreasing. Banks are expeted to do more short sales with houses as these are expected to sell more quickly.
In The News:
“Gross domestic product — or output of all goods and services — grew at an annual rate of 1% in the second quarter, compared to growth of 0.4% in the first quarter, the Commerce Department said Friday.”
Realty Times - “Foreclosures Slow but Delinquencies Rise” (8-26-11)
“A new report indicates that the number of delinquent mortgage borrowers climbed in the second quarter. That’s people who have missed at least one payment, according to the Mortgage Bankers Association (MBA).”
DS News - “California Distressed Sales Decline, Realtors Push for Streamlined Shorts” (8-26-11)
“California’s pending home sales dipped in July, as did the share of distressed property sales, according to a report released by the state’s Realtor group this week.”
Bloomberg - “New York Buildings Face Storm Damage as Property Managers Plan for Irene” (8-26-11)
“Hurricane Irene may cause seriousdamage to some New York City buildings as it threatens to bring surging floodwaters and strong winds that may spur flying debris, property managers said as they prepared for the storm.”
Housing Wire – “August consumer sentiment drops to 3-year low” (8-26-11)
“Consumer sentiment in the U.S. plunged to the lowest level in three years and to one of the lowest level recorded by the Thomson Reuters/University of Michigan survey.”
Realty Times - “Mortgage Rates Follow Bond Yields Higher for the Week” (8-26-11)
“Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing mortgage rates moving higher from the previous week’s record lows as Treasury bond yields moved higher and other housing data showed improvement. However, the 5-year ARM did decline to 3.07 percent thereby setting a new all-time record low.
Realtor Magazine – “Banks Agree to More Short Sales” (8-26-11)
“Banks are agreeing to more short sale transactions, and short sales are taking less time to sell, which is helping to clear large inventories of distressed properties more efficiently, says James J. Saccacio, RealtyTrac CEO, in releasing new housing data this week.”
Housing Wire - “Zillow estimates 4.3% decline in home prices” (8-26-11)
“Standard & Poor’s is likely to report a 4.3% decline in June home prices year-over-year and a 1.2% increase from the previous month when it releases its June Case-Shiller Home Price Indices study next Tuesday, Zillow said Friday.”
Los Angeles Times - “Corporate profits increase as GDP remains sluggish” (8-26-11)
“The nation’s gross domestic product may be growing at just a crawl, but corporations aren’t doing so badly in this economy, according to data released from the Bureau of Economic Analysis. Corporate profits increased in the second quarter, as did the amount of cash businesses had available for investments, as taxes decreased.”
DS News - “Radar Logic to Propose Plan to Address Government REOs” (8-26-11)
“Radar Logic plans to publish a response to the government’s proposal to sell pools of foreclosed homes to investors to rent.”
Bloomberg – “Bernanke Doesn’t Signal More Stimulus” (8-26-11)
“Federal Reserve Chairman Ben S. Bernanke said the central bank still has tools to stimulate a recovery that has been weaker than forecast while sticking to his view that growth will pick up.”
The MBA’s second quarter survey showed the delinquency rate for mortgage loans on residential properties dropped to 9.85 percent. Freddie Mac reported that interest rates dropped AGAIN to 4.36%. According to CoreLogic, 23 percent of residential homes with mortgages were in negative equity at the end of the 2nd quarter of 2010. Barclays Capital claims existing home sales decreased 30% in July 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.