According to Veros, San Diego home prices will rise 3.5% next year. November saw an increase in home sales since decreasing significantly in July. In other news, fewer people are applying for mortgages most likely due to higher rates. Fannie Mae expects home prices to decline in 2011, although they expect the sale of new homes to decrease and existing sales to increase. The Obama administration believes the recent robo-signing has resulted in a decrease in foreclosures.
Federal Housing Finance Agency
Modifications to foreclosures on Freddie Mac and Fannie Mae mortgages increased more than twice as much in the third quarter, according to Housing Wire. Shaun Donovan said he and Secretary of Energy Steven Chu are discussing plans of creating an energy scoring system for houses. Standard and Poor’s reported levels of securities backed by mortgages are the slowest they have been since 2007, both for commercial and residential property. NAHB stated that the driving force for the housing market are actually the smaller businesses. CBIA announced that construction on new homes increased 21% this month.
HAMP’s permanent loan modifications increased 5.9% by the Bank of America, while the number of applications for mortgages increased 13%. On the same note, according to the Mortgage Bankers Association the number fo refinancings for mortgages increased 17.1% in the previous week. Fannie Mae and Freddie Mac began searching for any bad loans or dishonest loan applications, while in other news Barney Frank believes Fannie Mae and Freddie Mac should no longer be allowed to operate. Also, as the demand on homes decreases, the merging and aquisition of homebuilders may rise. On a similar note, Veri-tax is now owned by Blue Horizon Capital. The Real Estate Book was just released, hopefully making looking for a home easier. In Orange County, the number of homes repossessed decreased 10%, but default notices have increased 9%. Homebuilders are looking to build more smaller homes, as this is what the current generation seems to be interested. Finally, the Fed’s have come up with a plan to prepare for an increasing decline in the economy by using money made from securities to buy Treasuries.
The new FHA short refinancing program will provide additional refinancing options to underwater homeowners starting Sept. 7. According to Integrated Asset Services, nationwide home prices increased 1.1% in the second quarter. Zillow reports California’s current rate on 30-year mortgages is 4.34%. CoreLogic estimates that short sales in Arizona, California, Florida and Texas will cost lenders $310m in unnecessary losses in 2010.
The Federal Housing Finance Agency announced that national home prices increased by .3 percent in July. The FDIC considers borrowing money from banks to protect the insurance fund. ZipRealty reports that 25 markets displayed a reduction in home inventory from July to August.