Real estate housing and economic news round up for November 8 2016 including the latest on foreclosures, mortgage delinquencies and much more…
Foreclosure Inventory Decreased
CoreLogic today released its September 2016 National Foreclosure Report which shows the foreclosure inventory declined by 31.1 percent and completed foreclosures declined by 7.0 percent compared with September 2015. The number of completed foreclosures nationwide decreased year over year from 39,000 in September 2015 to 36,000 in September 2016, representing a decrease of 69.7 percent from the peak of 118,222 in September 2010.
As of September 2016, the national foreclosure inventory included approximately 340,000, or 0.9 percent, of all homes with a mortgage, compared with 493,000 homes, or 1.3 percent, in September 2015.
Awesome news! It used to be quite depressing to report the foreclosure numbers.
I know home buyers want to get a great deal. Sometimes, a foreclosure can be a great deal.
But you have to think about how every foreclosure means someone lost their home.
I remember showing a foreclosure and noticing the lines drawn on a door jamb to mark a child’s height.
I thought about how this kid didn’t understand why they had to move away from the only home they had ever known.
Balancing Act Keeping Homes Affordable… For Now
As of the end of August, U.S. home prices were within just 0.7% of hitting a new peak
The average home in the U.S. increased by about $13,500 over the last year
Total U.S. loan delinquency rate was 4.27%
Low interest rates have kept the monthly payment needed to buy a median-priced home almost equal to one year ago
Home affordability still remains favorable compared to long-term historic norms
Remember this is talking about the entire US and is NOT the local real estate market information you need.
But it is still great news…
Facebook Helping Discrimination in Housing Ads?
As a die hard Twitter lover and Facebook hater, I am only too happy to share an update from ProPublica:
The federal agency that enforces the nation’s fair housing laws said it is “in discussions” with Facebook to address what it termed “serious concerns” about the social network’s advertising practices.
Heather Fluit, a spokeswoman for the Department of Housing and Urban Development, said in a statement that the department was “aware of published reports that Facebook’s advertising tool may allow users to discriminate in housing advertisements.”
Fluitt said Facebook’s advertising policies will be examined by HUD’s office of Fair Housing and Equal Opportunity.
As a REALTOR that is firmly opposed to stupidity such as racism or discrimination, I hope HUD flexes it’s muscles and fines Facebook to the fullest extent of the law…
Is It Getting Easier to Get a Mortgage?
Regarding loans to households, moderate net fractions of banks reported easing standards on loans eligible for purchase by government-sponsored enterprises (known as GSE-eligible mortgage loans), and modest net fractions of banks reported easing standards on loans categorized as QM jumbo and QM non-jumbo, non-GSE-eligible residential mortgages. The remaining categories of home-purchase loans were little changed on net. Banks also reported that demand for most types of home-purchase loans strengthened over the third quarter on net.
So it does look like mortgages are getting a little easier to get.
I really seriously suggest that anyone thinking about buying a home to take the first step. Get the ball rolling by talking to a real live mortgage professional.
Waiting could mean paying more as we do not know what the Fed may do with their benchmark rate in December!
Fannie Mae Home Purchase Sentiment Index Decreases
From Fannie Mae:
The Fannie Mae Home Purchase Sentiment Index dipped 1.1 points to 81.7 in October, the third decrease in as many months. Four of the six components that comprise the HPSI fell during the month.
The share of consumers reporting significantly higher income over the past year experienced the largest drop, decreasing eight percentage points on net.
The net share of consumers expecting home prices to go up in the next year fell three percentage points, and those who expect mortgage rates to drop and those who are confident about not losing their job each dropped by one percentage point in October.
However, more consumers said they believe now is a good time to buy and a good time to sell a home – increasing two and four points on net, respectively.
Read that last line again…
Housing Recovery Continues
From the latest NAHB/First American Leading Markets Index:
Markets in 162 of about 340 metro areas returned to or exceeded normal levels of economic and housing activity, a year-over-year gain of 73 markets.
I am hoping we will see further improvements once the election is over….
Did Dodd–Frank End Too Big to Fail?
From the Philly Fed (pdf):
During the financial crisis in 2008, the U.S. government bailed out some very large banks for fear the collapse of any bank that large would profoundly harm the U.S. economy and destabilize the global financial system. hat is, they were too big to be allowed to fail. Passage of the Dodd–Frank Act two years later was intended to rule out future bailouts through tighter safety-and-soundness requirements, among other measures.
Yet, some worry that investors may still view certain banks as “too big to fail,” a perception that would confer an arguably unfair and potentially risky funding advantage over smaller banks. If a bank’s uninsured depositors or bondholders expect to be protected against losses, they will accept lower interest rates. So, in principle, we should be able to compare the rates paid by the largest banks with those paid by smaller banks for evidence of whether Dodd–Frank was successful in eliminating markets’ bailout expectations.
You have to download it to read it but a definite must read.
Mortgage Delinquency Rate Declines to Lowest Level Since Q3 2009
TransUnion’s Industry Insights Report found that the mortgage delinquency rate declined 8.4% from 2.50% in Q3 2015 to 2.29% in Q3 2016, the lowest level since Q3 2009.
Overall, mortgage originations increased to 1.99 million in Q2 2016, a 3.7% rise from 1.92 million in Q2 2015.
Excellent news and further indication that we are finally getting closer to a truly healthy housing market.
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