Pending home sales rose 10.4% in October

By Ruth Mantell

WASHINGTON (MarketWatch) -- Pending home sales rose 10.4% in October, hitting 93.3 on an index released Wednesday by the National Association of Realtors. "We hope this indicates more buyers are taking advantage of the excellent affordability conditions," said Lawrence Yun, NAR's chief economist, in a statement. An index reading of 100 is equal to the average level of contract activity during 2001. A sale is listed as pending when the contract has been signed but the transaction has not closed. Not all contracts lead to closings. By region, October pending home sales rose 24.1% in the Midwest, 17.7% in the Northeast and 8.6% in the South. In the West pending sales fell 0.3%. Nationally, pending sales are up 9.2% from last year.

Sales of new single-family U.S. homes rose 1.3% in October

By Jeffry Bartash

WASHINGTON (MarketWatch) - Sales of new single-family U.S. homes rose 1.3% in October to an annual rate of 307,000, the government reported Monday. Sales in September were revised down to 303,000 from an original reading of 313,000, according to data from the Census Bureau and Housing Department. Economists surveyed by MarketWatch had expected new home sales to climb to an annual rate of 320,000 on a seasonally adjusted basis. The median sales price fell $1,000 to $212,300. The supply of new homes on the market dropped slightly to 6.3 months. Sales of new homes are 8.9% higher compared to one year ago, but the housing market remains mired in its worst slump in modern times.

Foreclosure starts rise, delinquencies drop: MBA

Mortgage Bankers Association (MBA) posted their third quarter report on mortgages entering foreclosure and the delinquency rate.  The foreclosure process rose in the third quarter of this year while the seasonally adjusted delinquency rate dropped to its lowest level since 2008.
See the article below. Have a great day! Call me for any of your real estate needs.

Maureen Haney

By Amy Hoak

CHICAGO (MarketWatch) -- The percentage of mortgages entering the foreclosure process rose in the third quarter, while the seasonally adjusted delinquency rate dropped to its lowest level since 2008, according to the Mortgage Bankers Association's National Delinquency Survey, released on Thursday. The foreclosure-start rate rose to 1.08% of all mortgages for one- to four-unit residential properties in the third quarter, up from 0.96% in the second quarter, yet down from 1.34% a year ago, according to the report. Meanwhile, the seasonally adjusted delinquency rate fell to 7.99% in the third quarter, down from 8.44% in the second quarter and 9.13% a year earlier. "While the delinquency picture changed for the better in the third quarter, the foreclosure data indicated that we are not out of the woods yet and that the issues continue to vary by geography," said Michael Fratantoni, MBA's vice president of research and economics, in a news release.

Please Stop by & see us!

   

Village Holiday Stroll

Friday November 18, 2011

6:00 PM to 9:00 PM

Coldwell Banker Millennium

Maureen Haney

134 North Glendora Avenue, Glendora

Please bring a new unwrapped toy to the

Coldwell Banker Millennium office

Some of the Nights Events in the Village:

· The Tree Lighting Ceremony will start at 6:30 PM in the Plaza and will include the Mayor & City Council Members reading the story of Christmas

· Santa will arrive at the Plaza in a vintage Fire Truck at approximately 6:45 to 7:00 PM. and will be available to visit with the children from his “Easy Chair”

· The GHS Choirs-Royal Stewarts & Silhouettes-will entertain in the Plaza from 7:00 to 9:00 PM

· There will be two Dickens’ groups in period attire roaming the street for the entire evening.

Please stop by Coldwell Banker Millennium

Foreclosures jump 7% in October from September Stockton, Calif., has highest rate of foreclosure filings

Nov. 10, 2011, 12:01 a.m. EST

Foreclosures jump 7% in October from September

Stockton, Calif., has highest rate of foreclosure filings

By Amy Hoak, MarketWatch

CHICAGO (MarketWatch) — Foreclosure activity rose 7% in October compared with September, a sign that lenders are picking up the pace after foreclosure processing problems caused delays, RealtyTrac said Thursday.

Last month, foreclosure filings were reported on 230,678 U.S. properties, according to RealtyTrac data. Filings include default notices, scheduled auctions and bank repossessions.

Appraisals derail sales

In the past, appraisals rarely disrupted a home sale. But real-estate agents and housing experts say new requirements and a difficult housing market are doing just that.

Activity is down 31% in October compared with a year ago.

“The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we’ve been in for the past year as lenders corrected foreclosure paperwork and processing problems,” said James Saccacio, chief executive of RealtyTrac, in a news release.

“However, recent state court rulings and new state laws keep changing the rules of the foreclosure game on the fly, creating more uncertainty in the housing market and threatening to prolong the road to a robust real-estate recovery.”

In October, after 22 months in a row as the city with the highest foreclosure rate, Las Vegas finally ceded that standing to Stockton, Calif., according to RealtyTrac’s ranking of metropolitan areas with populations of 200,000 or more.

Default notices up 10%

Nationwide, default notices were filed for the first time on 77,733 properties last month. That’s a 10% increase from the prior month, but a 23% drop from October 2010.

In Florida, Pennsylvania and Indiana, default notices ticked up more than 25% in October, compared with September.

Foreclosure auctions rose 8% in October, compared with the prior month; auctions were scheduled on 85,321 properties. Scheduled auctions were down 38% from a year ago. But again, the number of scheduled auctions was up even more in select states: They increased more than 35% in Florida, Minnesota and Illinois in October, compared with September.

In October, 67,624 properties were repossessed by lenders, a 4% increase from September and a 27% drop from October 2010. In Michigan, Oregon, New Jersey and Indiana, repossessions were up 40% or more in October, compared with the prior month. 

30-year mortgage falls below 4% again Rates on adjustable-rate mortgages up in latest survey: Freddie Mac

Nov. 10, 2011, 10:52 a.m. EST

30-year mortgage falls below 4% again

Rates on adjustable-rate mortgages up in latest survey: Freddie Mac

By Amy Hoak, MarketWatch

CHICAGO (MarketWatch) — Average rates on 30-year fixed-rate mortgages fell below 4% for the second time this year, according to Freddie Mac’s latest survey of conforming mortgage rates.

Rates on the 30-year mortgage averaged 3.99% for the week ending Nov. 10, down from 4% last week and 4.17% a year ago, McLean, Va.-based Freddie Mac said Thursday.

Rates on 15-year fixed-rate mortgages also dropped slightly, averaging 3.3% this week, down from 3.31% last week and 3.57% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.98% this week, up slightly from 2.96% last week. The ARM averaged 3.25% a year ago.

And 1-year Treasury-indexed ARMs averaged 2.95% this week, up from 2.88% last week. The ARM averaged 3.26% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 of a point, the 15-year fixed-rate mortgage required an average 0.8 point and the ARMs required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

“Fixed mortgage rates were little changed this week amid a mix of economic data reports,” said Freddie Mac chief economist Frank Nothaft in a news release.

“The economy added 80,000 net jobs in October, below the market consensus forecast, but employment gains over the prior two months were revised up by 102,000 and the unemployment rate fell to 9%, the lowest in six months. Factory orders improved in September, yet the expansion in the service industry slowed in October,” he said.

Low home prices and mortgage rates have kept affordability high, Nothaft said, adding that the National Association of Realtors’ housing affordability index in September hit its third highest reading on record. 

Nov. 8, 2011, 12:00 a.m. EST

The great $26 billion real estate swindle

Commentary: Pity anyone who took the tax credit to buy a house

By Brett Arends, MarketWatch

BOSTON (MarketWatch) — Call it the Great Rock & Roll Real Estate Swindle. Call it a $26 billion Bait & Switch. Call it the Mother of All Boondoggles.

Call it whatever you want.
But as foreclosures surge again and house prices continue to slide, new data out Monday reveals more of the grim verdict on the $26 billion federal program in 2009 and 2010 to offer tax credits to home buyers.
You may remember that between the spring of 2009 and September 2010 the government handed out credits of up to $8,000 to induce people to buy a new home. It was supposed to gee up the housing market.
How’d that work out?

 Gap between younger and older Americans widening

Mean Street host Evan Newmark leads a discussion with FINS reporter Julie Steinberg and WSJ's Emily Glazer about the wealth gap between the young and old and how younger people can help bridge the gap. Photo: REUTERS/Lee Jae-Won

Zillow.com, the real estate information company, says the average price of an American home fell again last month to $171,500 — the lowest level in eight years. That’s down 4.4% from a year ago, although it’s been about stable over the summer.
Now compare the average prices with those that people paid in 2009 and 2010, when they took advantage of the credits.
According to Zillow, prices during that time averaged about $186,000.
In other words, based at least on average prices, you’ve lost about $14,500 — nearly twice the value of the credit. Stan Humphries, Zillow’s chief economist, says the credits, effectively expired in June 2010, when prices nationwide averaged $182,000. Since then we’re down $10,500.
The biggest losers? Step forward all those who took up Uncle Sam’s $8,000 bribe and rushed out to buy a new home in Santa Barbara, Calif. You have already lost $50,000 of your $440,000 investment. And that’s even counting the $8,000 bribe!
Others who are already down more than $30,000 include home buyers in places like San Francisco, Seattle, Flagstaff, Ariz., and anyone who bought down the road from the underground bunker of MarketWatch’s own Paul “The Road” Farrell in San Luis Obispo, Calif.
Oh, and check out Carson City, Nev. The typical homes only cost about $190,000, and even after counting the $8,000 credit you’re already down $8,000.
The IRS says the entire program cost taxpayers $26 billion (though of course it was put on the national credit card, on which interest rates are very low). That money has vanished. It has, as the saying goes, “gone to money heaven.”
Zillow tracks prices closely in 157 cities and major towns around the country. Humphries says that in 110 of those, prices today are more than $8,000 lower than they were in June 2010.
The picture is even worse when you compare prices today with the average for the entire year-and-a-half that the credits were in place. By that measure, prices have fallen by more than $8,000 in about 130 cities and towns.
But look on the bright side. Home buyers in about two dozen metro areas have kept at least some of the $8,000. And in a few — six, to be precise — the market is actually up overall.
Leading the pack? Three cheers for Honolulu. Average prices have risen about $4,500 since the period when the tax credits were being handed out — meaning potential profits on your new home near Diamond Head of maybe $12,500 overall.
If that doesn’t count as a success, I don’t know what does.

Real Estate Outlook: Pending Sales Decline

There was a glimmer of hope in this article, "The West fared the best in pending sales for September". Have a great day, Maureen Real Estate Outlook: Pending Sales Decline
by Carla Hill

Pending homes sale declined in September, down 4.6 percent from the month prior. Lawrence Yun, NAR chief economist, said the housing market is being excessively constrained. “A combination of weak consumer confidence and continuing tight lending criteria held back home buyers, even though the private sector added nearly 2 million net new jobs in the past 12 months,” he said. The current rate of pending sales is 6.4 percent higher, though, than September of 2010. The largest decline was seen in the Midwest, which fell 6.2 percent for the month. The South and Northeast were a close second and third, falling 5.5 and 4.7, respectively. The West fared the best in pending sales for September, declining only 2.1 percent. Why the declines at all? "America’s monetary policy is contradictory and confusing, where some consumers with the best financial capacity and top-notch credit scores pay higher mortgage interest rates,” Yun said. “The Federal Reserve evidently has been attempting to lower mortgage rates, yet more consumers are faced with taking out jumbo loans that carry higher interest rates.” Yun noted the need for higher loan limits. The numbers aren't helped either by the recent declines in consumer confidence. The Conference Board Consumer Confidence Index® reports that while confidence had risen slightly in September, it declined once again in October. It is now at levels seen during the 2008-2009 recession. Says Lynn Franco, Director of The Conference Board Consumer Research Center, "Consumer expectations, which had improved in September, gave back all of the gain and then some, as concerns about business conditions, the labor market and income prospects increased. Consumers' assessment of present-day conditions did not fare any better. The Present Situation Index posted its sixth consecutive monthly decline, as pessimism about the current economic environment continues to grow." Even more pessimistic was consumer's view of the jobs market. According to the Index, "Those anticipating more jobs in the months ahead edged down to 11.3 percent from 11.9 percent, while those expecting fewer jobs decreased to 27.4 percent from 28.6 percent. The proportion of consumers anticipating an increase in their incomes declined to 10.3 percent from 13.5 percent." The remodeling industry has also seen a decline, according to the most recent National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). "Remodelers report that while many consumers show interest in having remodeling work done, they are slow to commit to projects,” said NAHB Remodelers Chairman Bob Peterson, CGR, CAPS, CGP, a remodeler from Ft. Collins, Colo. “Consumers are in a ‘wait and see’ mode with regard to current economic conditions.” All three components used to access the market decreased in the third quarter, including major additions, minor addition, and maintenance and repair. Regionally, there is a silver lining to this report, as the Midwest and South both posted remodeling gains.

30-Year Fixed-Rate Mortgage Averages 4.00 Percent

30-Year Fixed-Rate Mortgage Averages 4.00 Percent

MCLEAN, Va., -- Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates declining sharply as investors rushed to U.S. Treasury bonds amid concerns over the European debt market. The 30-year fixed at 4.00 percent marks the second lowest reading since it hit a record 3.94 percent in the October 6, 2011 PMMS, the lowest in history. 30-year fixed-rate mortgage (FRM) averaged 4.00 percent with an average 0.7 point for the week ending November 3, 2011, down from last week when it averaged 4.10 percent. Last year at this time, the 30-year FRM averaged 4.24 percent. 15-year FRM this week averaged 3.31 percent with an average 0.7 point, down from last week when it averaged 3.38 percent. A year ago at this time, the 15-year FRM averaged 3.63 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week, with an average 0.6 point, down from last week when it averaged 3.08 percent. A year ago, the 5-year ARM averaged 3.39 percent. 1-year Treasury-indexed ARM averaged 2.88 percent this week with an average 0.6 point, down from last week when it averaged 2.90 percent. At this time last year, the 1-year ARM averaged 3.26 percent. Frank Nothaft, vice president and chief economist at Freddie Mac, "Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates. Meanwhile, on the home front, the U.S. economy continued its gradual recovery. The Bureau of Economic Analysis reported the economy grew 2.5 percent in the third quarter, the strongest pace in a year, led by a surge in consumer expenditures. In addition, consumer spending rose 0.6 percent in September, nearly threefold that of August. Finally, consumer sentiment, as measured by the Thomson Reuters/University of Michigan index, rose for the second month in a row in October to its highest reading since July."

What should Home Buyers consider before looking for a home?

What should Home Buyers consider before looking for a home?

        Before starting the house hunt, there are a few things buyers need to consider.

1.       Credit score: Lenders are generally looking for buyers to have credit scores of at least 620 nowadays.  Although the Federal Housing Administration will extend loans to borrowers with credit scores as low as 580, most banks are imposing higher scores.
2.          Reserves: Even when renting, financial advisers recommend saving four to five months’ worth of expenses in case of job loss or any other unforeseen event.  Homeowners should add an additional two months’ worth to their savings.
3.          Settling down: Buyers should think about if they see themselves living in the same place for five to seven years.  Homeownership is not just a financial decision, it’s also a lifestyle choice.

Thanks, Maureen

Fed holds rates, Twist, pledge by 9-to-1 vote

Fed holds rates, Twist, pledge by 9-to-1 vote

By Steve Goldstein

WASHINGTON (MarketWatch) -- By a 9-to-1 vote, the Federal Reserve voted to keep the target Fed funds rate at a level between 0% and 0.25%, to continue its "Twist" program of shifting $400 billion in its bond portfolio toward longer maturities and continue reinvesting maturing principal payments into mortgage-backed securities. The Fed kept its pledge that "exceptionally low levels" of rates are warranted at least through mid-2013. "Economic growth strengthened somewhat," the Fed statement said, but the unemployment rate will decline only gradually toward levels that the Federal Open Market Committee judges to be consistent with its dual mandate and there are "significant downside risks" to the economic outlook. The three Fed members who dissented from the prior two decisions, Richard Fisher, Narayana Kocherlakota and Charles Plosser, voted with the majority, while Chicago Fed President Charles Evans dissented as he called for additional policy accommodation.