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.
According to the CIRB, building permits were pulled for 3,088 housing units in May. Statistics from Freddie Mac show the 30-year fixed-rate mortgage averaged 4.69% last week. Several large banks, such as JP Morgan, are hiring thousands of mortgage officers in preparation to make more loans. TIGTA estimates the IRS awarded $26.7 million to fraudulent home buyer tax credit claims.
A survey from the NFCC shows that only 23 percent of Americans consider strategic default to be acceptable when underwater on a mortgage. Startingtoday, Real Estate Disposition is auctioning more than 350 bank-owned foreclosures in California. According to IAS, national home prices were up 0.9% in April from March. An executive from RealtyTrac believes U.S. foreclosure activity will not stabilize until late 2011.