Inventory, Interest Rates, And Opportunities In The Market

Barry Habib, chairman of Mortgage Success Source, says the rush to take advantage of the tax credit has inflated recent housing data but believes low rates provide ongoing opportunities in real estate for buyers looking to stay in a home long-term.

Filed under: Uncategorized, Federal Programs, Foreclosures, Housing Market, Interest Rates, Inventory, Real-Estate, Tax Credit, Video, Views

Foreclosures, Gov’t Action, And The Recovery

Economist Dean Baker, co-director of the Center for Economic and Policy Research, says federal programs have led to an artificial stabilization in the market. In order to deal with the glut of distressed properties, he feels people facing foreclosure should be allowed to stay in their homes as renters until they can renegotiate their mortgage.

Filed under: Uncategorized, Federal Programs, Foreclosures, Housing Market, Prices, Sales, Tax Credit, Video, Views

Experts Differ When Forecasting Housing’s Future

With the spring selling season underway and many of the government programs aiding the ailing housing market expiring, experts and industry insiders have differing opinions on where housing’s headed. Warmer weather typically boosts buyer traffic and, according to the National Association of Realtors spokesman Walter Molony, housing could become self-sustaining with a significant sales surge followed by job creation in the second-half of the year. On the other hand, Robert Shiller, co-founder of the Case-Shiller Home Price Index, argues that, despite recent momentum, there isn’t enough evidence to support the optimism among many economic forecasters. Shiller says, until there is evidence that the fundamental thinking about housing has shifted, the momentum cannot be trusted. Fed Chairman Ben Bernake also questions the evidence of a sustained housing recovery. Still, The Wall Street Journal, points to recent improvements in the overall economy as reason to believe that concern about real-estate’s woes may be outsized. And Scott Simon, managing director and head of Pimco’s mortgage-and asset-backed securities team, doesn’t feel that the Fed’s exit from the market will have a substantial impact on mortgage rates.

Filed under: Uncategorized, Federal Programs, Housing Market, Real-Estate, Sales, Trends, Views

Rising Rates And 5 Other Housing Trends To Watch

The Federal Reserve’s purchases of mortgage-backed securities kept interest rates near historic lows for much of last year. But within a week of the program’s expiration, rates for 30-year fixed-rate mortgages jumped from 5.04 percent to 5.31. Now many analysts are predicting rates will likely rise as high as 6 percent by early next year. Here are five other housing trends to watch

1. Distressed properties will keep prices under pressure.
2. Big homes are lagging small ones in the recovery.
3. Financing for condos, second homes, and jumbo loans are tough to get.
4. Buyers, rushing to beat the tax-credit deadline, will set off a flurry of spring sales.
5. Going green this year can save you more money.

More on housing trends here. More on rates here.

Filed under: Uncategorized, Federal Programs, Foreclosures, Housing Market, Interest Rates, Real-Estate, Tax Credit, Trends

Morici On The Market, Values, And Recovery

Economist Peter Morici says the housing market is five years from recovery and believes government support is only delaying the process.

Filed under: Uncategorized, Federal Programs, Foreclosures, Housing Market, Prices, Real-Estate, Video, Views

Gov’t Housing: A Recap of Federal Efforts

The government launched several programs last year in an effort to support the ailing housing market, including the home-buyer tax credit and the Federal Reserve’s purchases of mortgage-backed securities. But while these programs were credited with keeping interest rates low and spurring sales, others, such as the Home Affordable Modification Program, have had less success. The Wall Street Journal recaps last year’s efforts here. And looks at the recently announced revamp of the Obama administration’s foreclosure-prevention efforts here.

Filed under: Uncategorized, Federal Programs, Foreclosures, Housing Market, Interest Rates, News

New Government Program Hopes To Fight Foreclosures

The Home Affordable Modification Program, announced in 2009, hoped to help 3 to 4 million borrowers stay in their homes, but resulted in only 170,000 permanent loan modifications. Facing criticism and an estimated 11 million potential foreclosures this year, The Obama administration announced a new $14 billion program, which shifts their efforts toward the expanded use of principal write-downs for unemployed homeowners and those in areas where home values have dropped most severely. The plan includes three to six months of temporary assistance for the jobless and incentives for mortgage servicers to write down part of the principal balance. FAQs here and here. More here and here.

Filed under: Uncategorized, Federal Programs, Foreclosures, Housing Market, News

Fannie, Freddie, And The Role Of Government in Housing

Stephen Stanley, chief economist at Pierpont Securities, says the government isn’t likely to propose any major housing industry reform this year because of continued uncertainty in the market.

Filed under: Uncategorized, Federal Programs, Housing Industry, Real-Estate, Views

Tax Credits: What Buyers Need To Know

The home-buyer tax credit offering $8,000 to first-time buyers and $6,500 to repeat buyers is set to expire at the end of April. The program, having already received two extensions in February and December 2009, isn’t expected to be extended past the April 30 deadline, which leaves prospective buyers only a few more weeks to qualify. In order to receive the credit, buyers must have a signed contract on or before April 30 and the purchase must be complete by June 30. Walter Molony, a spokesman with the National Association of Realtors, cautions those getting into the market now to be prepared to make quick decisions. Six things to keep in mind here. Key info here.

Filed under: Uncategorized, Federal Programs, Housing Market, News, Real-Estate, Tax Credit

Rates Fall Despite Looming Fed Exit

According to the Mortgage Bankers Association’s Weekly Applications Survey, rates for 30-year fixed-rate mortgages fell to 4.91 percent last week, down from 5.01 the week before. With the Federal Reserve winding down its purchases of mortgage-backed securities, speculation has been that rates would begin rising. But the program, which has been credited with keeping rates near or below five percent, expires at the end of this month and rates remain near record lows. More here and here.

Filed under: Uncategorized, Federal Programs, Interest Rates, MBA, News