The Commerce Department reports new home sales increased 11% in March. A study shows that short sales and foreclosures equally damage FICO scores. A survey from Pew shows 81% of adults believe purchasing a home is the best long-term investment a person can make. Morgan Stanley believes home prices will fall 6-11% this year.
The NAR said vacation home sales accounted for 10% of all transactions in 2010. A new proposal may force lenders to allow short sales for delinquent homeowners. The House voted 252 to 170 end funding for HAMP. CoreLogic estimates there are 1.8 million homes in the shadow inventory.
Results from an NAHB survey show builders expect homes to average 2,152 square feet by 2015. Lockhart, from the Atlanta Fed, expects the economy to grow up to 4% over the next 2 years. FNC Inc said over 25% of foreclosed properties liquidated in 2008 and 2009 sold at more than a 40% discount. Bank regulators are attempted to push new rules that would require lenders to offer borrowers more principal write-downs.
The FDIC’s problematic bank list grew by 31 in the 3rd quarter. New home sales decreased 8.1% in September, according to the Commerce Department. Statistics from the FHA show home prices fell 3.2% year over year. LPS reports foreclosures fell 4.4% in October.
Some evicted homeowners are breaking into their previously owned homes, and claiming that they were wrongfully foreclosed on. Bernanke is giving signs that the Federal Reserve will continue its strategy of quantitative easing. As a percentage of gross domestic product, the national deficit decreased 1.1% in 2010.
Mortgage application volume increased 14.6% this week. All 50 state attorney generals are now involved in an investigation into lenders that filed faulty foreclosure affidavits. The FHFA is urging GSEs to accelerate the foreclosure process once the AG reviews are over. Foreign investors are planning to purchase large amounts of commercial property.
According to Capital Economics, business investment rose 17% during the second quarter. Multiple forecasters suspect the housing market and the economy are in a double dip. Zillow reports that 18.2% of all O.C. homes sold for a loss. The Case-Shiller 20-city home price index shows prices increased 1% from May to June.
The MBA’s weekly survey shows that mortgage loan application volume increased by 4.9%. The Commerce Department reported new homes sales decreased 12.4% in July. According to Zillow, most Western states experienced a decrease in 20-year mortgage rates last week. California’s 30-year rate decreased to 4.30%.
According to the NAHB, builder confidence fell for the 3rd straight month. The California Homebuilding Foundation reports the housing industry’s economic output has decreased by nearly 80% since 2005. New rules were released which restrict an originator from receiving compensation based on the interest rate or other loan terms of the mortgage. Michael Carliner of Harvard University believes that the decrease in mortgage rates will not offset the effect of decreasing home values on home buyer pessimism.