Archives for January 2011

Silicon Valley in Recovery

By Mike Colpitts Led by high tech giant Apple, California's Silicon Valley is coming back to life after reaching the slowest real estate downturn in its existence. Apple, the second largest U.S. company based on stock market value, acquired Hewlett Packard’s old commercial office setting in Cupertino, and other large tech corporations are leasing offices in preparations to accommodate a larger work force. Another major San Jose area … [Read more...]

Mortgage Rates Drop Lower

By Mike Colpitts Driven by a spike in Treasury prices, mortgage rates saw a major drop lower as worries over a Greek default and the Federal Reserve’s dim economic outlook rattled financial markets. Rates paid to investors seeking the safest investment in Treasury bonds reached the lowest yield in four months Monday, hitting 1.84% on the 10-year Treasury note. The spike in demand resulted in banks and mortgage companies lending to … [Read more...]

Stung by Losses Banks Call Loans

By Kevin Chiu Stung by huge losses, banks are calling loans on businesses and home mortgages in efforts to protect their businesses and keep regulators at bay. A total of 157 banks failed last year, and were taken over by the FDIC, the most since the U.S. Savings and Loan Crisis ended in 1992. Homeowners say it isn’t fair that bankers have the right to call a mortgage when loan payments are made late or when they have already worked out … [Read more...]

Mortgage Rates Rise, May Go Higher

By Kevin Chiu Mortgage rates rose for the second week in a row on fixed rate loans, and short term rates also increased, according to the Freddie Mac survey. The average rate on a 30-year fixed rate mortgage rose to 4.8%, six basis points higher over the previous week amid concerns that rates for many borrowers are expected to go higher. The rate on a 15-year fixed rate loan also rose to 4.09% from 4.05% the prior week. The Treasury … [Read more...]

Four States Cities Lead Foreclosure Crisis in 2010

By Mike Colpitts Four states cities accounted for 19 of the top 20 metropolitan U.S. foreclosure centers in 2010 as the foreclosure crisis gained momentum in the majority of the nation, despite moratoriums put in place by five major national lenders, according to RealtyTrac. California, Florida, Nevada and Arizona cities accounted for the most foreclosures. Boise, Idaho was the only other city to make it into the top 20 markets. Foreclosure … [Read more...]

Markets Forecast to Rise with Housing Inflation

In a turning point that demonstrates U.S. housing markets are making a recovery, Housing Predictor is forecasting that local markets in seventeen states will experience housing inflation in 2011. The states are dominated by the Mid-west and most Northern regions that were less affected by harmful new mortgage lending products during the real estate bubble, and are experiencing fewer foreclosures as a result of troublesome bank lending … [Read more...]

Mortgage Volume Slows as Applications Decline

By Mike Colpitts Refinancing applications fell to the lowest level in more than a year and mortgage applications for new purchases also declined for the week, demonstrating mixed signals for the housing market, according to the Mortgage Bankers Association. The composite index, a measure of loan application volume showed a decline of 12.9% on a seasonally adjusted basis for the week ending January 21, 2011. Refinances tumbled 15.3% from … [Read more...]

Case for Optimism on Housing Market

By Kevin Chiu The case for optimism in 2011 on the U.S. housing market gained momentum with the latest National Association of Realtors monthly sales report, showing that home sales rose for the fifth time in six months. With pent-up demand, near record low mortgage rates and lower home prices the housing market is poised to produce more sales after a multi-year slowdown in most regions of the U.S. But just how much sales will rise is … [Read more...]

Homeowners Will Walk Away from Home Mortgages

In what may be a harbinger of things to come almost half of those surveyed say they will walk away from home mortgages if home prices continue to drop. The Housing Predictor opinion poll is the most forceful indicator yet of what is likely to happen next as a result of the troubled U.S. economy. Home prices have been declining for at least three years in the majority of U.S. housing markets, and more than five years in the most seriously … [Read more...]

Pent Up Demand to Drive Rebound

Pent up buyer demand that has amassed over the past five years since the downturn in the U.S. housing market, will drive a major rebound in home sales during 2012, according to a new Housing Predictor survey. The increase in sales seems to already be materializing as home buyers that can qualify for a mortgage at historic low rates make home purchases in rising numbers. Almost two out of three respondents to the survey or 64% said they plan … [Read more...]