UCLA economists expect unemployment to remain above 10% until the end of 2012. TransUnion predicts the national mortgage delinquency rate could fall below 5% in 2011. A survey from RealtyTrac shows 60% of Americans believe housing will not recover for another 2 years. According to HOPE NOW, 1.54 million permanent mortgage modifications were completed in the first 3 quarters of this year.
New Federal regulations on real estate appraisals have been released. FHA has chosen to leave the loan limit at $729,750 for 2011. Some builders are experiencing a 15 to 25 percent decrease in construction costs. The Bureau of Labor Statistics reports the unemployment rate increased to 9.8%.
The serious delinquency rate on Fannie Mae’s single-family mortgages decreased to 4.56% in September. The average loan in foreclosure has been in foreclosure for 492 days. Fannie Mae and Freddie Mac are encouraging real estate agents to continue selling foreclosures. According to Real Capital, the commercial mortgage default rate fell to 4.36 percent.
The NAR reports FHA, Fannie Mae and Freddie Mac account for over 90% of the mortgage market. New California building codes, known as CALGreen, will be enforced on January 1st. Richard Fisher of the Dallas Federal Reserve believes the low interest rates are doing little to stimulate the economy. Fannie Mae acquired 85,340 REO properties in the 3rd quarter.
The NAR reports pending home sales decreased 1.8% in September. Statistics from the Labor Department show the overall economy added 151,000 jobs last month. According to Fitch Ratings, CMBS delinquencies decreased to 7.7%. Fannie Mae lost $1.3 billion in the 3rd quarter.
Homeownership rates remained unchanged at 66.9% in the 3rd quarter, according to the Census Bureau. The 30 day delinquency rate on Fannie Mae mortgages fell to 4.7% in August. Zillow claims the 30-year mortgage rate remained at 4.14% last week.
Credit Suisse estimates Fannie Mae and Freddie Mac will have cumulative losses of $321 billion. Private mortgage servicers modified 119,585 loans in September, over 4 times as many modifications performed through HAMP. Statistics from the Federal Reserve show home equity accounted for 16.2% of net worth in the 2nd quarter.
The National League of Cities expects city property-tax revenues to decrease 1.8% in 2010. The IMF still believes a double-dip in real estate is possible. A new program from HUD allows delinquent borrowers, who are unemployed or suffering from a severe medical condition, to receive up to $50,000 at a 0% interest rate. The monthly ADP National Employment Report shows the private sector lost 39,000 jobs in September.
Property values in 20 U.S. cities increased 3.2% from last year, according to the S&P index. FHFA reports 30-year, fixed mortgage rates decreased to 4.7% in August. The House of Representatives has proposed a new bill which may allow 30 million homeowners to refinance at current interest rates.