Today’s News Synopsis:
The California Housing Finance Agency is offering 4 percent mortgages to low and moderate income homebuyers. The MBA’s weekly survey shows mortgage application volume decreased 1.5% this week. According to CoreLogic, 39.6% of the subprime loans are 60 days delinquent.
In The News:
Inman – “California, FHA offer 4% loans” (9-8-10)
“The California Housing Finance Agency is teaming up with the Federal Housing Administration to offer 30-year fixed-rate loans to low- and moderate-income first-time homebuyers at below-market rates. With mortgage rates already at historic lows, eligible borrowers could lock a CalHFA-FHA loan at around 4 percent.”
Mortgage Bankers Association – “Mortgage Purchase Applications Up, Refinance Applications Fall Slightly in Latest MBA Weekly Survey” (9-8-10)
“The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending September 3, 2010. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.9 percent compared with the previous week.”
Housing Wire – “40% of subprime mortgages stand delinquent, can prime be next?” (9-8-10)
“CoreLogic reports 2,376,120 American subprime mortgages are still active in the market in June, down 12.5% from a year ago. As of June, 39.6% of the subprime loan market is 60 days delinquent — 35% of that is 90 days delinquent, 13% of that are now in foreclosure and 3.8% of mortgages are real estate owned.”
Housing Wire – “Amherst: modified Ginnie Mae loans boost buyouts” (9-8-10)
“The reissuance of modified Ginnie Mae loans will boost transition rates, buyouts, and subsequently increase prepayment speeds on new, lower-coupon pools. Amherst Mortgage Insight analysts said avoiding Ginnie Mae interest-only mortgages is a good idea, as ‘conventionals are a better bet.’ The firm’s MBS strategy group also advises investors to review Ginnie Mae spec pools”
Housing Wire – “Beige Book: economy increasing at slower rate than prior periods” (9-8-10)
“The Fed said home sales continued to slide, hindering construction activity, as well. Most districts reported very weak or declining home sales during the period that were attributed to the expiration of the homebuyer tax credit. Residential construction decreased in most districts during the period because of weak demand, according to the Fed.”
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