Recapping the big news in real estate, including home prices and much much more. Plus looking forward at the stuff we need to keep an eye on this week…
Let’s kick the week off by looking back at the big news for real estate, housing and the economy from last week. Then I will highlight some of the upcoming stuff you need to watch.
Loan Officer Survey
An interesting little tidbit from last week was the latest survey of senior loan officers doing business in the US. According to the survey, banks are easing lending standards for business and consumer loans. The bad news is the lending criteria for home loans is more restrictive than other types of loans. The loan officers also said that mortgage lending requirements have eased for low risk mortgage loans. The bad news is anyone with less than perfect credit is going to find it harder to qualify for a mortgage.
Several reports last week saying that US home prices increased!
First up is CoreLogic. They said that home prices increased at their fastest pace since way back in February of 2006. CoreLogic said home prices rose 1.90% in June 2013 and this is a 11.88% year-over-year increase for US home prices.
Next NAR reported median existing single-family home prices are up 12.2%. NAR also said that existing-home sales in the South increased 3.2% in the second quarter and are 15.1% above the second quarter of 2012. The median existing single-family home price in the South was up 11% from a year earlier.
Somewhat related, Trulia reported that Asking Prices Slipped for the First Time Since November 2012. However, it isn’t what someone is asking for a house that is important. It is what it actually sells for that really matters. Just think about all of the overpriced homes you have seen for sale…
As I do every week, I posted the Mortgage Rate Update on Friday. No big changes as some rates increased, some decreased and some stayed the same. The key take away is that mortgage rates are STILL super low.The reason for mortgage rates not changing much was probably because of the reports about unemployment in July being neither really good or really bad.
Weekly Jobless Claims came in higher than the previous week’s numbers. However, the four-week average is considered a less volatile indicator of unemployment trends. The four week rolling average for new jobless claims decreased and was the lowest reading for the four-week rolling average since back in November of 2007.
If you are planning on buying a home with a mortgage you need to read
Eminent Domain Lawsuit
…big banks and mortgage bond investment groups were joining forces in a lawsuit against eminent domain plans in the city of Richmond, Calif.
More or less, Richmond is forcing investors to sell the mortgages at prices that may be below current market values. The city of Richmond thinks that this will help to lower the number of foreclosures in their area. I really do not see how this is going to stand up in court. Especially since the banks and Fannie & Freddie will fight this hard. Read the rest here
Both Fannie and Freddie are reporting their foreclosure inventory is down. Great news but there are plenty of other sources for foreclosed homes as the article points out.
Blah Blah Blah from DC and the NAR®
Not even sure why I am mentioning this but Obama had some kind of PR event that Zillow hosted last week. Well NAR® got all butt hurt about it. Considering how much credibility there is with any politician, Zillow or the NAR®, I really found the ruckus online about this non-event to be amusing.
But there have been several articles recently that you might want to read:
This week we need to keep an eye on:
- Retail Sales and Core Retail Sales Report
- The Producers Price Index (PPI) and Core PPI
- Weekly jobless claims
- The Consumer Price Index (CPI) and Core CPI
- The NAHB Home Builders Housing Market Index
- Housing Starts, Building Permits and Consumer Sentiment for July 2013
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