Californians have a brief window of opportunity to receive up to $18,000 in combined federal and state homebuyer tax credits. To take advantage of both tax credits, a first-time homebuyer must enter into a purchase contract for a principal residence before May 1, 2010, and close escrow between May 1, 2010 and June 30, 2010, inclusive. Buyers who are not first-time homebuyers may use the same timeframes to receive up to $16,500 in combined tax credits if they are long-time residents of their existing homes as permitted under federal law, and they purchase properties that have never been previously occupied as provided under California law.
Under the federal law slated to soon expire, a first-time homebuyer may receive up to $8,000 in tax credits, and a long-time resident may receive up to $6,500, for certain purchase contracts entered into by April 30, 2010 that close escrow by June 30, 2010. Additionally, under a newly enacted California law, a homebuyer may receive up to $10,000 in tax credits as a first-time homebuyer or buyer of a property that has never been occupied. The new California law applies to certain purchases that close escrow on or after May 1, 2010 (see Cal. Rev. & Tax Code section 17059.1(a)(4)). California law generally allows buyers of never-occupied properties to reserve their credits before closing escrow, but buyers seeking to combine the federal and state tax credits will not be able to satisfy the timing requirements for such reservations (see Cal. Rev. & Tax Code section 17059.1(c)(1)(A)). Other terms and restrictions apply to both tax credits.
For more information, C.A.R. offers a Homebuyer Tax Credit Chart with a side-by-side summary of the federal and California laws. C.A.R. also offers a legal article entitled Homebuyer Tax Credit Update.
Wednesday, March 31, 2010
Tuesday, March 30, 2010
Housing real-estate recovery signaled as Fed unwinds
The U.S. housing market is poised to withstand the removal of government and Federal Reserve stimulus programs and rebound later in the year, contributing to annual economic growth for the first time since 2006.
To read the full story, please click here
To read the full story, please click here
Market Commentary - Weekend of March 26, 2010
This week, interest rates rose slightly due to worries about the extent of government borrowing, and signs of a quicker recovery continue to create mixed reactions throughout the market. No surprises there.Focusing on positive news, home prices are extremely attractive, rates remain at historical lows, and tax incentives are still in place. It’s important to lock in your deal by April 30th to take advantage of these tax incentives. Overall, it’s an outstanding buyers market.It’s also worth mentioning that home values are on the rise, homeowners are once again upgrading kitchens, baths and patios, and there’s more help for first-time buyers than ever before. Bright minds are continuing to work at solutions to spread out or stop pending foreclosures, and loan modifications are steadily increasing. Bank of America is taking a bold, strategic move reducing principal on a significant number of loans. This should forestall a number of foreclosures and offers B of A much needed public relations value. Short sales are also getting a boost in the form of government incentives which is good news for our real estate partners.Want to hear more positive news? Give me a call. It’s a great time to buy a house and we expect to have a very busy Spring and Summer
Friday, March 26, 2010
Thursday, March 25, 2010
Before They Were Titans, Moguls and Newsmakers, These People Were...Rejected
Both Warren Buffett and "Today" show host Meredith Vieira say that while being rejected by the school of their dreams was devastating, it launched them on a path to meeting life-changing mentors. Harold Varmus, winner of the Nobel Prize in medicine, says getting rejected twice by Harvard Medical School, where a dean advised him to enlist in the military, was soon forgotten as he plunged into his studies at Columbia University's med school. For other college rejects, from Sun Microsystems co-founder Scott McNealy and entrepreneur Ted Turner to broadcast journalist Tom Brokaw, the turndowns were minor footnotes, just ones they still remember and will talk about.
"The truth is, everything that has happened in my life...that I thought was a crushing event at the time, has turned out for the better," Mr. Buffett says. With the exception of health problems, he says, setbacks teach "lessons that carry you along. You learn that a temporary defeat is not a permanent one. In the end, it can be an opportunity."
Mr. Buffett regards his rejection at age 19 by Harvard Business School as a pivotal episode in his life. Looking back, he says Harvard wouldn't have been a good fit. But at the time, he "had this feeling of dread" after being rejected in an admissions interview in Chicago, and a fear of disappointing his father.
As it turned out, his father responded with "only this unconditional love...an unconditional belief in me," Mr. Buffett says. Exploring other options, he realized that two investing experts he admired, Benjamin Graham and David Dodd, were teaching at Columbia's graduate business school. He dashed off a late application, where by a stroke of luck it was fielded and accepted by Mr. Dodd. From these mentors, Mr. Buffett says he learned core principles that guided his investing. The Harvard rejection also benefited his alma mater; the family gave more than $12 million to Columbia in 2008 through the Susan Thompson Buffett Foundation, based on tax filings.
The lesson of negatives becoming positive has proved true repeatedly, Mr. Buffett says. He was terrified of public speaking—so much so that when he was young he sometimes threw up before giving an address. So he enrolled in a Dale Carnegie public speaking course and says the skills he learned there enabled him to woo his future wife, Susan Thompson, a "champion debater," he says. "I even proposed to my wife during the course," he says. "If I had been only a mediocre speaker I might not have taken it."
Others who received Harvard rejections include "Today" show host Meredith Vieira, who was turned down in 1971 as a high-school senior. At the time, she was crushed. "In fact, I was so devastated that when I went to Tufts [University] my freshman year, every Saturday I'd hitchhike to Harvard," she says in an email. But Ms. Vieira went on to meet a mentor at Tufts who sparked her interest in journalism by offering her an internship. Had she not been rejected, she doubts that she would have entered the field, she says.
And broadcast journalist Tom Brokaw, also rejected as a teenager by Harvard, says it was one of a series of setbacks that eventually led him to settle down, stop partying and commit to finishing college and working in broadcast journalism. "The initial stumble was critical in getting me launched," he says.
Time puts rejection letters in perspective, says Ted Turner. He received dual rejections as a teenager, by Princeton and Harvard, he says in an interview. The future America's Cup winner attended Brown University, where he became captain of the sailing team. He left college after his father cut off financial support, and joined his father's billboard company, which he built into the media empire that spawned CNN. Brown has since awarded him a bachelor's degree.
Tragedies later had a greater impact on his life, he says, including the loss of his father to suicide and his teenage sister to illness. "A rejection letter doesn't even come close to losing loved ones in your family. That is the hard stuff to survive," Mr. Turner says. "I want to be sure to make this point: I did everything I did without a college degree," he says. While it is better to have one, "you can be successful without it."
"The truth is, everything that has happened in my life...that I thought was a crushing event at the time, has turned out for the better," Mr. Buffett says. With the exception of health problems, he says, setbacks teach "lessons that carry you along. You learn that a temporary defeat is not a permanent one. In the end, it can be an opportunity."
Mr. Buffett regards his rejection at age 19 by Harvard Business School as a pivotal episode in his life. Looking back, he says Harvard wouldn't have been a good fit. But at the time, he "had this feeling of dread" after being rejected in an admissions interview in Chicago, and a fear of disappointing his father.
As it turned out, his father responded with "only this unconditional love...an unconditional belief in me," Mr. Buffett says. Exploring other options, he realized that two investing experts he admired, Benjamin Graham and David Dodd, were teaching at Columbia's graduate business school. He dashed off a late application, where by a stroke of luck it was fielded and accepted by Mr. Dodd. From these mentors, Mr. Buffett says he learned core principles that guided his investing. The Harvard rejection also benefited his alma mater; the family gave more than $12 million to Columbia in 2008 through the Susan Thompson Buffett Foundation, based on tax filings.
The lesson of negatives becoming positive has proved true repeatedly, Mr. Buffett says. He was terrified of public speaking—so much so that when he was young he sometimes threw up before giving an address. So he enrolled in a Dale Carnegie public speaking course and says the skills he learned there enabled him to woo his future wife, Susan Thompson, a "champion debater," he says. "I even proposed to my wife during the course," he says. "If I had been only a mediocre speaker I might not have taken it."
Others who received Harvard rejections include "Today" show host Meredith Vieira, who was turned down in 1971 as a high-school senior. At the time, she was crushed. "In fact, I was so devastated that when I went to Tufts [University] my freshman year, every Saturday I'd hitchhike to Harvard," she says in an email. But Ms. Vieira went on to meet a mentor at Tufts who sparked her interest in journalism by offering her an internship. Had she not been rejected, she doubts that she would have entered the field, she says.
And broadcast journalist Tom Brokaw, also rejected as a teenager by Harvard, says it was one of a series of setbacks that eventually led him to settle down, stop partying and commit to finishing college and working in broadcast journalism. "The initial stumble was critical in getting me launched," he says.
Time puts rejection letters in perspective, says Ted Turner. He received dual rejections as a teenager, by Princeton and Harvard, he says in an interview. The future America's Cup winner attended Brown University, where he became captain of the sailing team. He left college after his father cut off financial support, and joined his father's billboard company, which he built into the media empire that spawned CNN. Brown has since awarded him a bachelor's degree.
Tragedies later had a greater impact on his life, he says, including the loss of his father to suicide and his teenage sister to illness. "A rejection letter doesn't even come close to losing loved ones in your family. That is the hard stuff to survive," Mr. Turner says. "I want to be sure to make this point: I did everything I did without a college degree," he says. While it is better to have one, "you can be successful without it."
Bank Launches Big Plan to Cut Mortgage Debt
Under pressure by Massachusetts prosecutors, Bank of America Corp. said Wednesday it would reduce mortgage-loan balances as much as 30% for thousands of troubled borrowers, in what could presage a wider government effort to encourage banks to offer debt reduction to ease the mortgage crisis.
The plan is one of the boldest moves yet to address the plight of millions of U.S. homeowners who are "under water," owing more on their homes than they're worth. It could make it easier for the Obama administration to move in a similar direction with its existing loan-modification program, although senior government officials and many bankers remain very wary of offering to cut loan balances as the main way of helping distressed borrowers.
So far, most modifications, including those under the government-subsidized Home Affordable Modification Program, involve reducing interest rates. Some also extend terms to 40 years, to shrink monthly payments.
But banks are finding that some borrowers aren't willing to keep making even reduced payments, believing they have little hope of ever having equity in their homes and might be better off renting, and perhaps buying a less-expensive home later.
"Severely under-water homeowners are reluctant to accept a solution that does not offer some reduction in principal," said Barbara Desoer, president of Bank of America Home Loans. "The whole purpose of the program is to get more customers to return phone calls" and make payments for trial modifications so workouts can be made permanent, she added.
The Obama administration is discussing with banks how to adjust its existing loan-modification program to encourage forgiveness of principal, people familiar with the matter say. An official declined to discuss such efforts but said the administration was encouraged by Bank of America's initiative, calling it "consistent with our own housing policy principles."
Howard Glaser, a housing-industry consultant, said, "The fact that private institutions are moving in this direction makes it more palatable for the Obama administration to face criticism from homeowners who think there's unfairness" in reducing principal for only some people.
The action by Bank of America is notable because it is the largest mortgage servicer, collecting loan payments on one of every five home loans in the U.S. At the end of last year, 14.76% of them were at least 30 days past due or in foreclosure, versus an industry average of 12.31%, according to Inside Mortgage Finance.
Some housing advocates were skeptical. Kevin Stein, associate director of the California Reinvestment Coalition, which works on access to credit, said "Everyone, including us, is looking for something positive to point to, but we are concerned this is going to be more P.R. than substance."
The bank's program is limited to Countrywide borrowers whose loan balance is at least 120% of the estimated home value, who are at least 60 days overdue, and who can show that financial hardship makes them unable to meet current payments. The bank estimated that 45,000 customers will qualify for principal reductions averaging more than $60,000.
Only the riskiest loans will be eligible. They include subprime loans; "option adjustable-rate" mortgages entailing minimal payments now but big increases later; and certain loans that have a fixed rate for two years and then adjust annually.
The bank's move is part of an agreement to settle claims over certain high-risk loans made by Countrywide Financial, which the bank acquired in mid-2008. The Massachusetts Attorney General's office, which was negotiating with the bank, said it was prepared to file suit had the agreement not included principal reductions.
Other banks have selectively reduced balances on certain loans. Wells Fargo & Co. said it modified loans for 52,600 borrowers with "option-ARM" loans last year, totaling $2.6 billion in principal write-downs.
Citigroup Inc. reduces principal on a case-by-case basis after other options to address affordability are exhausted, a spokesman said.
Banks and policy makers have long worried that reducing loan balances for some could spur others to default in hopes of a similar deal. Bank of America said it believed it would limit that risk by requiring borrowers to "earn" the lower balances in stages over five years by keeping up on their new, lowered payments. After the third year, the bank could halt principal forgiveness if home values have stabilized enough to provide borrowers with equity.
Bank of America has come under fire for not doing enough to rework troubled loans. Through February, it had 240,550 borrowers—or 24% of potentially eligible homeowners—in trial or permanent modifications, according to the Treasury Department, lower than most competitors. The bank had completed modifications for 20,666 borrowers, with 22,303 pending.
The plan is one of the boldest moves yet to address the plight of millions of U.S. homeowners who are "under water," owing more on their homes than they're worth. It could make it easier for the Obama administration to move in a similar direction with its existing loan-modification program, although senior government officials and many bankers remain very wary of offering to cut loan balances as the main way of helping distressed borrowers.
So far, most modifications, including those under the government-subsidized Home Affordable Modification Program, involve reducing interest rates. Some also extend terms to 40 years, to shrink monthly payments.
But banks are finding that some borrowers aren't willing to keep making even reduced payments, believing they have little hope of ever having equity in their homes and might be better off renting, and perhaps buying a less-expensive home later.
"Severely under-water homeowners are reluctant to accept a solution that does not offer some reduction in principal," said Barbara Desoer, president of Bank of America Home Loans. "The whole purpose of the program is to get more customers to return phone calls" and make payments for trial modifications so workouts can be made permanent, she added.
The Obama administration is discussing with banks how to adjust its existing loan-modification program to encourage forgiveness of principal, people familiar with the matter say. An official declined to discuss such efforts but said the administration was encouraged by Bank of America's initiative, calling it "consistent with our own housing policy principles."
Howard Glaser, a housing-industry consultant, said, "The fact that private institutions are moving in this direction makes it more palatable for the Obama administration to face criticism from homeowners who think there's unfairness" in reducing principal for only some people.
The action by Bank of America is notable because it is the largest mortgage servicer, collecting loan payments on one of every five home loans in the U.S. At the end of last year, 14.76% of them were at least 30 days past due or in foreclosure, versus an industry average of 12.31%, according to Inside Mortgage Finance.
Some housing advocates were skeptical. Kevin Stein, associate director of the California Reinvestment Coalition, which works on access to credit, said "Everyone, including us, is looking for something positive to point to, but we are concerned this is going to be more P.R. than substance."
The bank's program is limited to Countrywide borrowers whose loan balance is at least 120% of the estimated home value, who are at least 60 days overdue, and who can show that financial hardship makes them unable to meet current payments. The bank estimated that 45,000 customers will qualify for principal reductions averaging more than $60,000.
Only the riskiest loans will be eligible. They include subprime loans; "option adjustable-rate" mortgages entailing minimal payments now but big increases later; and certain loans that have a fixed rate for two years and then adjust annually.
The bank's move is part of an agreement to settle claims over certain high-risk loans made by Countrywide Financial, which the bank acquired in mid-2008. The Massachusetts Attorney General's office, which was negotiating with the bank, said it was prepared to file suit had the agreement not included principal reductions.
Other banks have selectively reduced balances on certain loans. Wells Fargo & Co. said it modified loans for 52,600 borrowers with "option-ARM" loans last year, totaling $2.6 billion in principal write-downs.
Citigroup Inc. reduces principal on a case-by-case basis after other options to address affordability are exhausted, a spokesman said.
Banks and policy makers have long worried that reducing loan balances for some could spur others to default in hopes of a similar deal. Bank of America said it believed it would limit that risk by requiring borrowers to "earn" the lower balances in stages over five years by keeping up on their new, lowered payments. After the third year, the bank could halt principal forgiveness if home values have stabilized enough to provide borrowers with equity.
Bank of America has come under fire for not doing enough to rework troubled loans. Through February, it had 240,550 borrowers—or 24% of potentially eligible homeowners—in trial or permanent modifications, according to the Treasury Department, lower than most competitors. The bank had completed modifications for 20,666 borrowers, with 22,303 pending.
Sunday, March 21, 2010
Nabbing a bargain-basement mortgage before rates rise
The Federal Reserve has been purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac since early last year. The purchase program has helped maintain low interest rates for borrowers. As planned, the Fed this week announced it will stop purchasing these securities at the end of this month. Many analysts anticipate this will result in a slight rise in rates by year’s end.
MAKING SENSE OF THE STORY FOR CONSUMERS
Interest rates have hovered at or near historic lows for much of the past 18 months, resulting in lower payments for many borrowers. With the Fed discontinuing its purchase program, some analysts believe a rise in interest rates could range from 0.25 percent to as much as 1 percent by the end of 2010.
The federal tax credit for home buyers also is scheduled to end April 30. The tax credit combined with the expectation interest rates will increase has created a sense of urgency for many home buyers. In fact, 23 percent of California home buyers purchased a home in 2009 due to the perception that interest rates will rise and they would be priced out of the market, according to C.A.R.’s 2009 Survey of California Home Buyers.
Rising interest rates will have an effect on home buyers. For example, a qualified couple with a combined pretax income of $100,000 per year and debt obligations (excluding mortgage) of $500 who receive a mortgage rate of 5 percent could qualify for a loan of up to $590,000, assuming a 20 percent down payment. If the interest rate were to rise to 6 percent, as analysts at Barclays Capital predict, the same couple could only qualify for a mortgage of $540,000.
MAKING SENSE OF THE STORY FOR CONSUMERS
Interest rates have hovered at or near historic lows for much of the past 18 months, resulting in lower payments for many borrowers. With the Fed discontinuing its purchase program, some analysts believe a rise in interest rates could range from 0.25 percent to as much as 1 percent by the end of 2010.
The federal tax credit for home buyers also is scheduled to end April 30. The tax credit combined with the expectation interest rates will increase has created a sense of urgency for many home buyers. In fact, 23 percent of California home buyers purchased a home in 2009 due to the perception that interest rates will rise and they would be priced out of the market, according to C.A.R.’s 2009 Survey of California Home Buyers.
Rising interest rates will have an effect on home buyers. For example, a qualified couple with a combined pretax income of $100,000 per year and debt obligations (excluding mortgage) of $500 who receive a mortgage rate of 5 percent could qualify for a loan of up to $590,000, assuming a 20 percent down payment. If the interest rate were to rise to 6 percent, as analysts at Barclays Capital predict, the same couple could only qualify for a mortgage of $540,000.
Is California’s high-end housing market in trouble?
From the WSJ on 3/12/2010
While sales of low-priced foreclosed homes are sparking bidding wars in some areas and there’s talk of healing in California, a huge storm cloud hovers over the Golden state: the high-end real estate market.
In California, delinquencies on jumbo mortgages, which are too large for government backing (and start at anywhere from $417,000 to $729,750) rose for the 33rd consecutive month in February, according to a report out from Fitch Ratings on Thursday. Fitch says that 11.6% of prime jumbo loans in the state are 60 days or more delinquent.
Congress tried to help two years ago by increasing the limit for jumbo loans to as high as $729,750, and some borrowers have likely been able to take advantage of those higher government limits by refinancing. But borrowers who owe more than their homes are worth are out of luck.
While rates on jumbo loans are still around one percentage point higher than on conforming loans, it’s not really the rate that’s the problem–after all, jumbo rates below 6% are pretty good. The bigger problem is that it’s tough to qualify for a jumbo loan. Banks require at least 20% down, and often more in shakier housing markets. Many borrowers looking to refinance don’t have much equity and aren’t too excited about sinking more money into their home to refinance.
California’s high-priced real estate has always had a large share of the jumbo market. “California is driving the national performance for this sector since it has the largest concentration of prime jumbo loans,” says Fitch managing director Vincent Barberio in a release. California’s share of the market is 44%, the state with the next highest share is New York (7%) and then Florida (6%).
Now, even though home prices have fallen by more than 30% in the state, most of these high end homes still are too costly to fall out of their jumbo status.
The question now: will these jumbo delinquencies wind up tumbling into foreclosure? Many think it’s more likely that the banks will want to keep yet more property off its books and arrange short-sales, in which the property goes for less than is owed on the mortgage.
So, for rich folks with cash the “deals,” are out there. Today the Journal reported that Hilton CEO and president Christopher Nassetta just sold his Los Angeles home for $18 million–35% less than what the 2007 purchase price and nearly $10 million off its list price.
While sales of low-priced foreclosed homes are sparking bidding wars in some areas and there’s talk of healing in California, a huge storm cloud hovers over the Golden state: the high-end real estate market.
In California, delinquencies on jumbo mortgages, which are too large for government backing (and start at anywhere from $417,000 to $729,750) rose for the 33rd consecutive month in February, according to a report out from Fitch Ratings on Thursday. Fitch says that 11.6% of prime jumbo loans in the state are 60 days or more delinquent.
Congress tried to help two years ago by increasing the limit for jumbo loans to as high as $729,750, and some borrowers have likely been able to take advantage of those higher government limits by refinancing. But borrowers who owe more than their homes are worth are out of luck.
While rates on jumbo loans are still around one percentage point higher than on conforming loans, it’s not really the rate that’s the problem–after all, jumbo rates below 6% are pretty good. The bigger problem is that it’s tough to qualify for a jumbo loan. Banks require at least 20% down, and often more in shakier housing markets. Many borrowers looking to refinance don’t have much equity and aren’t too excited about sinking more money into their home to refinance.
California’s high-priced real estate has always had a large share of the jumbo market. “California is driving the national performance for this sector since it has the largest concentration of prime jumbo loans,” says Fitch managing director Vincent Barberio in a release. California’s share of the market is 44%, the state with the next highest share is New York (7%) and then Florida (6%).
Now, even though home prices have fallen by more than 30% in the state, most of these high end homes still are too costly to fall out of their jumbo status.
The question now: will these jumbo delinquencies wind up tumbling into foreclosure? Many think it’s more likely that the banks will want to keep yet more property off its books and arrange short-sales, in which the property goes for less than is owed on the mortgage.
So, for rich folks with cash the “deals,” are out there. Today the Journal reported that Hilton CEO and president Christopher Nassetta just sold his Los Angeles home for $18 million–35% less than what the 2007 purchase price and nearly $10 million off its list price.
Thursday, March 18, 2010
Best time to buy is before April 30th
As we move into spring...
Despite all the glum news about the economy there is one bright spot: Conditions for buying a home are truly excellent. A number of factors make this an ideal environment, including low prices, great mortgage rates, and the $8,000 first-time homebuyer incentive. But now that incentive is scheduled to end.
The administration decided to extend the successful 2009 tax credit into the middle of this year: June 30th, to be exact. The details of the program aren’t especially complicated; but one facet is noteworthy: The deadline to get a home under binding contract is April 30.
That's less than two months away.
With 30-year rates still hovering at historic lows and prices still far off the highs of a few years ago, it’s in every way a great time to buy. Inventory abounds, and there are some real gems out there at rock-bottom prices. Add the $8,000 tax credit—or $6,500 for repeat buyers—and it’s all there for you to make the deal of a lifetime.
The Obama Tax Credit will put a fire under home sales.
Perhaps the beginning of the year has passed you by… but now it’s crunch time. There won’t be another extension, so April 30 is it. The tax credit can even be applied to your 2008 or 2009 tax returns. Please give me a call at your earliest convenience and let’s get you into that dream home.
Despite all the glum news about the economy there is one bright spot: Conditions for buying a home are truly excellent. A number of factors make this an ideal environment, including low prices, great mortgage rates, and the $8,000 first-time homebuyer incentive. But now that incentive is scheduled to end.
The administration decided to extend the successful 2009 tax credit into the middle of this year: June 30th, to be exact. The details of the program aren’t especially complicated; but one facet is noteworthy: The deadline to get a home under binding contract is April 30.
That's less than two months away.
With 30-year rates still hovering at historic lows and prices still far off the highs of a few years ago, it’s in every way a great time to buy. Inventory abounds, and there are some real gems out there at rock-bottom prices. Add the $8,000 tax credit—or $6,500 for repeat buyers—and it’s all there for you to make the deal of a lifetime.
The Obama Tax Credit will put a fire under home sales.
Perhaps the beginning of the year has passed you by… but now it’s crunch time. There won’t be another extension, so April 30 is it. The tax credit can even be applied to your 2008 or 2009 tax returns. Please give me a call at your earliest convenience and let’s get you into that dream home.
Wednesday, March 17, 2010
Foreclosure activity decreases 2 percent in February
Foreclosures decreased 2 percent in February compared with January, according to RealtyTrac®’s monthly foreclosure market report. Foreclosure filings were reported on 308,524 U.S. properties in February, a 2-percent decrease compared with January, but up 6 percent compared with February 2009. The report also found nearly one in every 418 U.S. housing units received a foreclosure filing in February.
Foreclosure activity in California decreased nearly 5 percent in February compared with January and was down 15 percent compared with February 2009. One in every 195 housing units in California received a foreclosure filing, according to the report.
More info
Foreclosure activity in California decreased nearly 5 percent in February compared with January and was down 15 percent compared with February 2009. One in every 195 housing units in California received a foreclosure filing, according to the report.
More info
Federal reserve leaves interest rates unchanged
The Federal Reserve announced yesterday it will maintain its target for the federal funds rate in the 0 percent to 0.25 percent range, and expects economic conditions to warrant exceptionally low levels of the federal funds rate for an extended period of time. “Information ... suggests that economic activity continues to strengthen and that the labor market is stabilizing," the Fed said in a prepared statement.
“Household spending is expanding at a moderate rate, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly,” the Fed said. “However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls.
“While bank lending continues to contract, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability,” the Fed said.
The Fed also said it would end its program of purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help keep home loan rates low. That program will conclude at the end of this month when the Fed's mortgage bond holdings reach the $1.25-trillion limit it set last year.
More info
“Household spending is expanding at a moderate rate, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly,” the Fed said. “However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls.
“While bank lending continues to contract, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability,” the Fed said.
The Fed also said it would end its program of purchasing mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac to help keep home loan rates low. That program will conclude at the end of this month when the Fed's mortgage bond holdings reach the $1.25-trillion limit it set last year.
More info
Wednesday, March 10, 2010
Friday, March 5, 2010
Fast Facts
Calif. median home price: January 2010: $287,440 (Source: C.A.R.)Calif. highest median home price by C.A.R. region January 2010: Santa Barbara So. Coast $760,000(Source: C.A.R.)Calif. lowest median home price by C.A.R. region January 2010: High Desert $124,480 (Source: C.A.R.)Calif. First-time Buyer Affordability Index - Fourth Quarter 2009: 64 percent (Source: C.A.R.)Mortgage rates - week ending 2/25/10 30-yr. fixed: 5.05 Fees/points: 0.7% 15-yr. fixed: 4.40% Fees/points: 0.7% 1-yr. adjustable: 4.15% Fees/points: 0.6% (Source: Freddie Mac)
New Web site launched to prevent loan mod scams
The U.S. Dept. of Housing and Urban Development, in partnership with the Loan Modification Scam Prevention Network, launched PreventLoanScams.org, a new Web site to prevent loan modification scams.
The Loan Modification Scam Prevention Network developed the Web site to provide homeowners with a single destination to report alleged scammers. Complaints filed online are added to a national complaint database and forwarded to the appropriate law enforcement agencies for review. The Network estimates that the Web site will assist approximately 50,000 homeowners affected by scams. Additionally, HUD has directed its local fair housing and housing counseling grantees to begin reporting alleged loan modification scams via the Web site.
More info.
The Loan Modification Scam Prevention Network developed the Web site to provide homeowners with a single destination to report alleged scammers. Complaints filed online are added to a national complaint database and forwarded to the appropriate law enforcement agencies for review. The Network estimates that the Web site will assist approximately 50,000 homeowners affected by scams. Additionally, HUD has directed its local fair housing and housing counseling grantees to begin reporting alleged loan modification scams via the Web site.
More info.
Home prices decline by 1.2%, smallest drop in 2 years.
U.S. home prices fell 1.2 percent in the fourth quarter from a year earlier, the smallest loss in two years, as a federal tax credit for home buyers boosted demand.
To read the full story, please click here:
http://www.bloomberg.com/apps/news?pid=email_en&sid=aAyeLAKZ9DuU
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