Archives for July 2012

Olympics Trigger Huge Boom, But Little in Home Values

By Ryan Jackson Six cities that hosted the Olympics in the last quarter century have experienced huge construction booms with new projects needed to house the games, but the majority found little appreciation in home values or other property inflation following the games. In fact, three of six Olympic cities, including Los Angeles and Atlanta experienced negative impacts on home values following the Olympics. Calgary also saw its housing … [Read more...]

Mortgage Rates Set New Records 4 Straight Weeks

By Mike Colpitts Mortgage rates have been setting new record lows four straight weeks as nervousness over the U.S. economy and uncertainty over the European debt crisis send rates lower. The 30-year fixed rate loan hit an average of 3.49% last week for the first time in history, according to Freddie Mac. Rates have been under 4.00% on the 30-year fixed loan all but one week this year, and have been on a steady decline since the week of March … [Read more...]

Home Sale Inventory Slashed to 6 Months

By Mike Colpitts The dog days of summer usually bring a frenzy of home sales activity, but a reduced inventory of homes to sell in many regions of the U.S. is slowing sales, despite record low mortgage rates. The inventory has been slashed to just a 6.6 month supply, which would usually be a positive sign for the market. The drop in homes marketed for sale would also usually mean better times for the housing market, but with at least one out … [Read more...]

Cities, States Respond to Foreclosure Crisis

By Mike Colpitts Since the federal government has only tried piece-meal solutions to resolve the housing mess cities and states across the U.S. are making their own changes to get the foreclosure crisis under control. New laws to help consumers have been passed in nearly three dozen states. San Bernardino County, California hard hit by the foreclosure crisis was the first to take up the possibility of using eminent domain to help underwater … [Read more...]

Condo Closes at Record $24.6 Million

A combination of condo units at the St. Regis Bal Harbour condominium development in Miami Beach, Florida has sold to set a record $24.6-million sales prices. It’s the largest transaction to close at the luxury development, which opened just this last January and the second largest deal in Miami history. Considered as one-unit, the deal ranks only second to the $25-million condo purchase made by an Italian buyer in South Beach last May. The … [Read more...]

Effort to Block Bulk Wholesale Home Sales Launched

By Mike Colpitts An effort to block the bulk wholesale home sales of foreclosed property held by Freddie Mac and Fannie Mae to investors at cheaply discounted prices is being launched by an unlikely member of Congress, a Californian Republican. Rep. Gary Miller, a 14-year GOP incumbent in a battle to retain his House seat in November’s upcoming election is launching the fight. Miller has requested that the financial services committee … [Read more...]

Housing Sparks Structural Problems, Despite Record Low Mortgages

By Mike Colpitts Problems with the U.S. housing market are more structural than cyclical in nature, analysts contend as the nation faces another round of quantitative easing in store from the Federal Reserve. Record low mortgage rates and the lowest home prices in years aren't enough to turn around ailing real estate markets. Home values are on an upward move in many cities that were impacted the hardest by the real estate crash, mainly as … [Read more...]

Mortgage Rates Fall to New Record

By Ryan Jackson Driven by falling U.S. Treasuries, mortgage rates fell to their lowest level in U.S. history for the third week in a row as worries over the economy trouble financial markets. The 30-year fixed rate mortgage dropped to average 3.49%, according to Freddie Mac. Rates have been on a one-way move downward since the beginning of summer. The rate on the fixed 15-year loan also fell to a new low to average 2.80% as homeowners … [Read more...]

Mortgage Activity Hits 3 Year High

By Mike Colpitts The lowest mortgage rates in history pushed refinancing to a three year high as consumers cashed in on lower loan payments, according to the Mortgage Bankers  Association survey, which accounts for 75% of all U.S. home loan activity. The bankers’ market composite index, however, rose just 0.9% as purchase money mortgages increased just 3.0% for the week. Refinances rose 2.0% from the previous week on an adjusted basis as … [Read more...]

Higher Prices May Produce Trouble Bubble

By Ryan Jackson Higher home prices being paid in some U.S. cities could lead to troublesome isolated bubbles, according to new research. Strong demand for homes in three of the nation’s hardest hit states are pushing up housing prices more quickly than might be sustainable. Driven by record low mortgage rates, sales are improving at a brisk pace in California, Arizona and Nevada, the monthly Campbell Housing Pulse Tracking survey … [Read more...]