September 2nd, 2014 9:38 AM by Korene L Clopine-Seaman
MARKET UPDATE SEPTEMBER
BORROWERS MONEY IN THE FOLLOWING STATES:
Colorado, Florida, Idaho, Indiana, Montana, Nevada, New Mexico,
Oregon, South Dakota, Texas, Utah, & Washington, Georgia, Illinois, Nebraska, North Carolina
SHOWS LIFE IN THE SPRING
national median home price jumped 6.2% over the spring this year per the
S&P / Case-Shiller home price index. New homes sales did drop, while
existing homes sales grew. Las Vegas showed the strongest gains in June with a
15.2% increase. (cnnfn.com)
national median existing-home price is projected to grow between 5% and 6% this
year and between 4% and 5% next year.” (housingwire.com)
latest Freddie Mac housing report shows that the housing market is returning to
“normal” housing fundamentals.
economic growth and labor market gains we saw in the second quarter of this
year are projected to continue, strengthening household formations and the housing
sector. A recovering housing sector will sustain the rally in homebuilding
despite likely increases in long-term interest rates,” Frank
Nothaft, Freddie Mac vice president and chief economist, said.
“Increased construction activity will further accelerate the improvement in
labor markets and fuel even more household formations and more housing demand.
The result is an economy that gradually recovers back towards its
potential," he continued.
The Labor Market
labor market is steadily picking back up, adding 230,000 new jobs on average
for the first seven months of this year. According to the most recent jobs
report, full-time jobs rebounded modestly, rising by 285,000 in July following
June's 523,000 collapse, which was only made up for by part-time job growth of
to Freddie Mac, the U.S. Census Bureau reported that over the
past four quarters, net household formations totaled only 458,000, compared
with long-term projections by the Joint Center for Housing Studies of
1.2 to 1.3 million per year.
monthly mortgage payment-to-rent ratio for the U.S. is near the lowest it has
been in more than 35 years. Despite some increases in house prices and interest
rates, the ratio is projected to remain relatively low.
forecast has economic growth averaging 3.3% in 2015 and the unemployment rate
continuing to gradually decline. (housingwire.com)
FACES A HOUSING BUBBLE
new report out in August shows that home prices in practically every city in
China fell in July. Asia economist Shen Jian-Guang stated that ““The key issue
is the mortgages, despite all types of local government easings. The high rate
is damping sentiment of owner occupiers.”
times for China’s real estate sector are still ahead, wrote Standard Chartered
Plc economists led by Lan Shen in an Aug. 6 report, after
surveying managers of 30 Chinese developers in six cities. Developers are
offering “moderate discounts,” while buyers are still very cautious regardless
of how much developers cut prices, Standard Chartered found.
Nationwide home sales fell 28% in July. (Bloomberg.com)
interest rates and massive over development may lead to not only a housing
slowdown in the world’s second largest economy, but also to housing bubble. And
why should this matter to home owners in the United States? Remember, it is a
global economy. Keep an eye on China as it may affect us here at home.
OF AMERICA GETS WACKED AGAIN
of America gets tagged with another huge settlement. Bank of America agreed to
pay a $16.65 billion dollar settlement, the largest in U.S. history, because of
misleading buyers of mortgage backed bonds regarding the actual quality of
those bonds. Bank of America has now paid out almost $74 billion due to
unlawful and/or unethical practices in relationship to the financial crisis.
2010, it paid $2.8 billion to Fannie Mae and Freddie Mac over mortgages.
2011, it paid trustee Bank of New York $8.6 billion and bond insurer Assured
Guaranty $1.6 billion after they filed lawsuits over bond deals that went sour.
2012, it paid nearly $12 billion to help settle lawsuits over wrongful
foreclosures and more than $2 billion in a class-action suit it inherited from
year, it paid Fannie Mae $10 billion more for mortgages and forked over nearly
$3 billion more for foreclosures.
this year, it paid the Federal Housing Finance Authority more than $9 billion
and settled for $1.3 billion with the U.S. Attorney in New York's southern
district. And those are just the big ones. (cnnfn.com)
Anticipate an increase to bank fees in the future. Banks are
very good at not losing money.
July, foreclosure filings ticked up 2% over June of this year. However,
foreclosure filings in July were still down 16% over July of 2013; according to
RealtyTrac. 109,434 foreclosures were filed in July 2014; one in every 1,203
homes in the United States.
was the 46th consecutive month where U.S. foreclosure activity was down on a
year-over-year basis,” said Daren Blomquist, vice president at RealtyTrac.
“After nearly four years of falling foreclosures, we are starting to see
the annual decrease nationally, foreclosure starts increased from a year ago in
14 states, including Nevada (up 128%), Texas (up 29%), New York (up 17%),
Massachusetts (up 12%), and Michigan (up 6%).
total of 51,595 U.S. properties were scheduled for foreclosure auction in July,
up 10% from the previous month but still down 3% from a year ago. Non-judicial
foreclosure auctions increased 26% from June to July, but were still down 7% on
a year-over-year basis.
Despite the annual decrease nationally, scheduled foreclosure auctions
increased from a year ago in 20 states, including New Jersey (up 105%), Oregon
(up 50%), Louisiana (up 32%), Utah (up 30%), Connecticut (up 18%), and New York
(up 16%). (housingwire.com)
NUMBERS FOR EXISTING HOME SALES
the highest increase of the year, existing home sales jumped 2.4% month over
month in July. Numbers are good, but down by 4.3% from July of 2013. Median
home prices are up 4.9% from this time last year; at $222,900.
Yun, NAR chief economist, says sales momentum is slowly building behind
stronger job growth and improving inventory conditions. “The number of houses
for sale is higher than a year ago and tamer price increases are giving
prospective buyers less hesitation about entering the market,” he said. “More
people are buying homes compared to earlier in the year and this trend should
continue with interest rates remaining low and apartment rents on the rise.” (housingwire.com)
IS STILL GIVING AWAY MONEY TO UNDERWATER HOMEOWNERS
State of Arizona currently has more than $100 million to contribute to
homeowners that are underwater and qualify for HARP,
FHA, or VA. The Arizona Department of Housing will offer up to $100K per homeowner(s) that owes more than
their home is worth in principle reduction.
State assistance is not a 2nd mortgage, does not require repayment,
and is forgivable after five years and may now be combined with Second Mortgage
Extinguishment up to $60,000! If you or someone you know, owes more than your
home is worth, and obtained the mortgage prior to June 1st, 2009, call or email
me to see if you qualify for a principle reduction. Borrowers that have already
completed a HARP refinance do not qualify.
HOME OWNERSHIP BENEFITS PROGRAM
the last several years, Geneva Financial, LLC has been offering free home
ownership mini seminars for local companies and organizations. Seminars are
generally 60 minutes in length and are on one of several topics (i.e. First
Time Home Buyers, Real Estate Investment, Home Owners in Distress, and The
Importance of Home Ownership); and can be catered to an individual company’s or
organization’s needs. Seminars are free to both company and employees. If your
company or organization is interested in learning more about our free corporate
mini seminars, please contact Korene Clopine-Seaman at 623-340-0934 or email@example.com
30 YEAR FIXED
15 YEAR FIXED
APPLY ONLINE: www.klcsloanteam.com/application
as of 08/30/2014. Conforming interest rates. Interest rates and APR based on
loan amounts not to exceed $417,000. Loan to value not to exceed 80%. 740+
credit score. Owner occupied only. Purchase and rate in term refinances. Not all applicants will qualify. Call today for your
individual scenario rate quote. Published rates do not apply to HARP loans.