The California Senate passed a new bill requiring mortgage servicers to notify borrowers of a right to seek options that would avoid foreclosure. Freddie Mac reports the average interest rate for 30-year FRMs increased by 0.01 percent from last week.Total U.S. non-farm payrolls grew by 431,000 in May. According to SNL Financial, the total value of foreclosed properties held by US banks reached $41.5bn in Q110.
Stats from Freddie Mac show the average rate for 30-year FRMs increased to 4.79 percent. Moody’s Investor Service reports commercial property values are down 42% from the peak in 2007. According to Trulia, many areas in the United States are now becoming cheaper to rent than own in. The US Department of Labor (DOL) received 10,000 fewer initial unemployment claims in the week ending May 29 than the previous week.
Of the homeowners receiving foreclosure counseling through the National Foreclosure Mitigation Counseling (NFMC) program, 58% listed unemployment as the main reason for default.According to MDA DataQuick, Sales of both new and resale houses and condominiums were down 1.3 percent year-over-year. Weekly claims for unemployment insurance have now failed to improve for five straight months. Web searches for rental properties haveincreased by 45 percent from April 2009.
California Senator Roy Ashburn has proposed new legislation to extend the home buying tax credit. According to CAR, 64 percent of households can afford to buy an entry-level home in California. The Federal Reserve reports that the total U.S. equity increased by nearly $1 trillion from the recession’s nadir in the first quarter of 2009. Statistics from NAR show that existing home sales increased by 13.9% in Q4 of 2009.
Altera Real Estate foresees significant improvement in the Orange County real estate market. According to IAS, national home prices have returned to 2004 levels. Forecasters from iEmergent expect approximately $580 billion in mortgage refinancing during 2010.
Mark Greene of FICO forecasts that credit-card and mortgage defaults will increase during the next six months. Former director of the FHFA James B. Lockhart III, claims that the housing downturn may not be finished. Statistics from both Moody’s Investors Service and Fitch Ratings show that the default rate for CMBS increased during November.
The unemployment rate declined to 10 percent during November. As of September, less than 0.3 percent of all trial modifications have become permanent. The FDIC announced plans that may require some lenders to make principal reductions on mortgages, rather than forbearing payment and reducing interest rates.
Fannie Mae increased its minimum borrower credit score to 620. According to Lender Processing Services, loans are deteriorating 3 times faster than they are being approved. The average interest rate for 30-year, fixed rate mortgages declined to 4.7%