Today’s News Synopsis:
As of July, fewer homes are being built, having decreased 1.5%. The Obama Administration is continuing to review policies to help the housing market, including continued involvement by the government. According to recent data released by Trulia, real estate purchases are actually cheaper than rental in most major cities in the U.S.
In The News:
“The U.S. mortgage delinquency rate rose between June and July, while the nation’s foreclosure pre-sale inventory rate edged down slightly. The delinquency rate for U.S. mortgages more than 30 days past due but not in foreclosure hit 8.34% in July, up 2.4% from the previous month, Lender Processing Services (LPS: 18.54 -0.38%) said in its monthly First Look Mortgage Report”
Bloomberg – “Housing Starts in U.S. Weaken as Construction Stagnates; Permits Decline” (8-16-11)
“Builders began work on fewer homes in July, indicating residential real estate is failing to contribute to U.S. growth two years into an economic recovery. Housing starts fell 1.5 percent to a 604,000 annual rate, in line with the median forecast of economists surveyed by Bloomberg News, from June’s 613,000 pace that was less than previously estimated, Commerce Department figures showed today in Washington.”
RisMedia – “Industry Opinions Weigh In On Extended Forecast for Short Sales” (8-16-11)
“Short sales will remain strong for the next several years as foreclosure inventories timelines grow even longer, according to the chief operating officer of Equator, a software platform for default servicers.”
DS News – “Obama Administration Continues to Review Housing Policy Proposals” (8-16-11)
“While the Obama administration continues to consider options for the future of housing finance, two mainstream media outlets reported Tuesday that the administration is looking into a plan that would retain major government involvement in the future housing market.”
“Buying real estate continues to be cheaper than renting in the vast majority of major U.S. cities, according to a quarterly rent vs. buy index from real estate search and marketing site Trulia.”
San Francisco Chronicle – “California home sales slowed from June to July” (8-16-11)
“A real estate tracking firm is reporting that sales of California homes slowed last month. San Diego-based DataQuick said Tuesday that nearly 35,000 new and resale houses and condos were sold statewide in July. That represents an 11 percent decline from June and 1.4 percent decrease from July 2010.”
Los Angeles Times – “Bay Area home sales dip in July” (8-16-11)
“Home prices dipped in July in the Bay Area as potential buyers and sellers took time out to ponder dreary economic reports and a budget standoff in Washington, a real estate information service said. Sales fell more than usual from June -– especially for homes above $500,000 -– but edged higher than July last year, according to DataQuick.”
Bloomberg – “Bank of America Said to Weigh Foreclosure Deal That Allows New York Probe” (8-16-11)
Bank of America Corp. (BAC) may settle a state and federal probe of foreclosure practices in a deal that lets New York proceed with an inquiry into securitizations, said two people with direct knowledge of the talks.”
Housing Wire – “Ally Financial braces for punitive AG settlement” (8-16-11)
“Ally Financial (GJM: 22.1001 -1.69%) warned investors of a probable monetary fine from the 50 state attorneys general foreclosure investigation, but could not nail down when or how large the penalty would be.”
Realtor Magazine – “Freddie Offers Cash Incentives for Buying Condos” (8-16-11)
“Freddie Mac’s HomeSteps unit is offering cash to buyers willing to purchase one of its foreclosed condos that has been lingering on the market. HomeSteps is hoping to unload some of its high inventory of foreclosed condos through the incentive program, known as HomeSteps Condo Cash.”
According to the NAHB, builder confidence fell for the 3rd straight month in August 2010. The California Homebuilding Foundation reported the housing industry’s economic output had decreased by nearly 80% since 2005. New rules were released which restricted an originator from receiving compensation based on the interest rate or other loan terms of the mortgage. Michael Carliner of Harvard University believed that the decrease in mortgage rates would not offset the effect of decreasing home values on home buyer pessimism.
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