The financial landscape is taking a heavy toll on consumer confidence — particularly when it comes to buying a home, according to a report from research website FindLaw.com. Almost two-thirds of U.S. residents say they’re less likely to buy a home in the near future because of the economic climate, while only 8 percent of Americans say that they’re more likely to buy a home due to the current financial situation. Stephanie Rahifs, an editor with FindLaw.com, said that the low mortgage rates haven’t proven enough to move buyers into the market. “Stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures,” Rahifs said. “These factors are causing many people to shy away from the idea of buying a house.” Lower-income families, in particular, are moving out of the housing market, the report shows, with those whose annual income is less than $50,000 much more likely to say they are less inclined to buy a home. TRD
Posts Tagged ‘home loans’
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So-called distressed debt vultures have been circling troubled mortgage-holders in the post-housing bubble era — and, in some cases, saving them, according to the Wall Street Journal. Investment funds, like Selene Residential Mortgage Opportunity, run by famed mortgage bond trader Lewis Ranieri, are often more nimble than large financial institutions, experts say, allowing them to buy up troubled home loans and cut deals with the mortgage-holders. With banks eager to unload tenuous mortgages in the shaky market, Ranieri said he’s able to acquire the loans for far less than the remaining balance due, giving him more flexibility to work with troubled homeowners. “Every case is individual,” Ranieri said. “There’s no template.” [WSJ]
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After showing virtually no momentum earlier this month, U.S. mortgage activity perked up during the week ending Aug. 13, according to the Mortgage Bankers Association, following a decline in mortgage rates. The weekly mortgage application index climbed 13 percent from the previous week, spurred by a significant uptick in refinancings, the report shows. Refis increased 17 percent on the MBA’s index, while mortgage purchases dropped 3.4 percent. The recent drop in fixed mortgage rates likely influenced this activity — last week Freddie Mac reported that the average 30-year mortgage fixed rate had plummeted to 4.44 percent, while the 15-year rate hit a record low of around 3.92. TRD
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As the residential sales market shows a summer slow-down, the rate of loan applications is also showing some sluggishness nationwide. Mortgage activity remained relatively flat through the week ending Aug. 6, according to the Mortgage Bankers Association’s weekly mortgage application survey. Total loan application volume increased .6 percent week-over-week on a seasonally adjusted basis, while the refinance index and the purchase index showed increases of .6 percent and .3 percent respectively, during the same time period. The average interest rate on a 30-year fixed-rate mortgage also stayed flat week-over-week, declining just .03 percent to 4.57 percent. TRD
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The age-old debate of government involvement in the mortgage market was rehashed in this CNBC video, in which commentators Rick Santelli and Steve Liesman duke it out. While Liesman questioned the effect that higher mortgage rates might have on the suburban housing market, Santelli seemed to think that U.S. homebuyers need to get “tougher.” -
The age-old debate of government involvement in the mortgage market was rehashed in this CNBC video, in which commentators Rick Santelli and Steve Liesman duke it out. While Liesman questioned the effect that higher mortgage rates might have on the suburban housing market, Santelli seemed to think that U.S. homebuyers need to get “tougher.” -
Call it the great real estate disconnect of 2010: Mortgage rates have been at half-century lows and home prices have stabilized, but applications for mortgages to buy houses have declined most weeks during the past three months, as measured by the [more]
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The U.S. first mortgage default rate was 3.3 percent in June, down 5 percent month-over-month and 45.2 percent year-over-year, according to a report from Standard & Poor’s and Experian, released today. Second mortgage defaults also declined to 2.4 percent, down .03 percent from May and 44.5 percent from June 2009. Overall, consumer credit defaults, which include defaults on bank card loans and auto loans in addition to mortgages, dropped to 3.44 percent in June, a 4.5 percent month-over-month dip and a 40 percent decline year-over-year, according to the report. Miami, with a 8.53 percent default rate, saw consumer credit defaults drop 8.1 percent month-over-month and 53.6 percent year-over-year. TRD
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With tougher mortgage underwriting rules a virtual certainty under Congress’ new financial reform legislation, lenders have begun confronting still another vexing issue: Can homebuyers who have high credit scores really be trusted not to pull the plug — strategically default — [more]
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On June 1, government-sponsored Fannie Mae started requiring lenders to recheck a
borrower’s finances shortly before closing the loan, the New York
Times reported. If a broker or lender finds significant changes, the
loan could be delayed or denied. The new policy reflects the
organization’s focus on “sustainability,” Janis Smith, a spokesperson
for Fannie Mae, told the Times. Industry executives say the change in policyshould not have a drastic effect on borrowing, unless the borrower is
prone to running up huge credit card bills. [NYT]
