Today’s News Synopsis:
The loan limit guaranteed by Fannie Mae, Freddie Mac and the Federal Housing Administration will stay at the current level until the end of 2011. The average rate for 30-year fixed loans fell to 4.32 percent, according to Freddie Mac. The Labor Department’s weekly survey shows jobless claims fell 3.5%. RealtyTrac reports foreclosure sales increased 4.9% in the 2nd quarter.
In The News:
Mortgage Bankers Association – “Commercial/Multifamily Real Estate Fundamentals Show Firmer Stabilization in Second Quarter 2010” (9-30-10)
“The Mortgage Bankers Association (MBA) today released its Commercial Real Estate/Multifamily Finance Quarterly DataBook for the second quarter of 2010. The analysis shows that commercial real estate fundamentals are showing signs of a firmer stabilization as businesses eased job cuts and started to hire, consumers began to re-open their pocketbooks and as households increasingly looked to rent rather than own their homes.”
Mercury News – “Mortgages: Congress holds conforming loan limits at nearly $730,000” (9-30-10)
“Congress has extended a policy that allows homeowners in pricey real estate markets to secure government-backed mortgages of nearly $730,000. Lawmakers have voted to keep the maximum size of loans guaranteed by Fannie Mae and Freddie Mac and the Federal Housing Administration at the current level through the end of 2011.”
Mortgage Bankers Association – “MBA Commends Extension of Loan Limits and Increase in FHA Multifamily Commitment Authority” (9-30-10)
“Extending the existing limits is essential to helping borrowers continue to have access to affordable long-term, fixed-rate mortgage credit in today’s struggling economy. The current limits have been a key component of keeping the mortgage market functioning, helping keep mortgage interest rates low for consumers who want to purchase a home or refinance an existing mortgage.”
San Francisco Chronicle – “Mortgage rates match low of 4.32 percent” (9-30-10)
“Mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans fell to 4.32 percent, the lowest on records dating back to 1971. That’s down from 4.37 percent the previous week and equal to the average rate reached four weeks ago.”
Los Angeles Times – “Prices rise for homes in foreclosure or sold by banks” (9-30-10)
“In the second quarter, 248,534 U.S. properties were sold by banks or by owners who had fallen into foreclosure, RealtyTrac of Irvine said. That was an increase of 4.9% from the previous quarter, but a 20.1% decline from the same quarter last year, when discounted bank-owned homes flooded the market.”
Housing Wire – “Weekly jobless claims down 3.5%” (9-30-10)
“Initial jobless claims fell 3.5% last week to 453,000, which is at the level last seen at the beginning of the month and lower than most analysts’ estimates. The Labor Department said the unadjusted figure of actual initial claims for the week ended Sept. 25 decreased by 16,000 from the previous week’s revised figure of 469,000.”
Housing Wire – “GDP growth softens to 1.7% in 2Q” (9-30-10)
“The U.S. real gross domestic product, which is the output of goods and services by labor and property, increased at an annual rate of 1.7% in the second quarter, according to the third estimate from the Commerce Department.”
Housing Wire – “Senate confirms Yellen as Fed vice chairman” (9-30-10)
“Janet Yellen is the new vice chairman of the Federal Reserve board, as the Senate unanimously confirmed her appointment Wednesday.”
Bloomberg – “JPMorgan Asks Judges to Delay Rulings as It Reviews Foreclosure Documents” (9-30-10)
“JPMorgan Chase & Co., the third- biggest U.S. mortgage servicer, said it’s asking courts to delay judgments in pending foreclosure cases while the bank reviews and possibly resubmits statements. JPMorgan began to ‘systematically re-examine’ foreclosure filings after learning that employees may have signed affidavits without personally reviewing underlying records, relying instead on other personnel”
Looking Back:
One year ago, Experian and Wyman estimated that the number of strategic defaults in 2008 were up to 600,000. Senators were supporting legislation to lend 200 million dollars for the prosecution of mortgage and real estate fraud cases. The MBA reported that the mortgage loan application volume decreased by 2.8 percent on a seasonally adjusted basis. Freddie Mac announced that it would work with Titanium Solutions to do door-to-door loan modifications.
California Real Estate Investing News is a post from: The Norris Group