2011 California Housing Market

Like suffering through a painful New Year’s hangover, California is slumbering through the fallout of the real estate crash after twin tax credits artificially boosted its housing market only to return to a slowdown. As the world’s sixth largest economy on its own, California isn’t exactly falling into economic ruin, but it isn’t making headway into an economic recovery either. The housing market is still pained by a foreclosure crisis … [Read more...]

Saving Financial Markets Fed’s Priority Not Real Estate

By Mike Colpitts Editor Taking its most aggressive action in years, the Federal Reserve is attempting to save the U.S. economy from falling into an economic depression. The infusion of $200-billion into the money markets is intended to theoretically act to help mortgage lenders, banks and other lenders from failing. The credit crunch has sent financial markets reeling and stock prices to new record lows in many cases. But the Fed’s … [Read more...]

Overwhelming Majority Favor Homeownership

By Mike Colpitts An overwhelming majority favor homeownership over renting despite the housing downturn, according to a new study. The results were found as part of a Fannie Mae survey that asked a variety of questions revolving homeownership and the economy. An astonishing 85% of respondants said they favor homeownership over renting based on the fact that owning a home was “financially better” than renting. Home values in more than 100 … [Read more...]

Mortgage Rate Hike Threatens Housing Recovery

By Mike Colpitts For the first time in more than a year, mortgage rates have risen three straight weeks as growing instability over the  U.S.  economy jittered bond markets. U.S. Treasuries rose from a record low of 1.38% on the benchmark 10-year bond to more than 1.85%. The increased yield is good news for investors seeking higher rates of return, but translates to higher interest rates on mortgages, credit cards and business loans since … [Read more...]

Underwater Refinancing Program to Expand

By Ryan Jackson A larger number of underwater homeowners with mortgages hoping to take advantage of all-time record low mortgage rates may be able to refinance under a program that is scheduled to be expanded by the U.S. government. An estimated 1.3 million homeowners have already refinanced through the government’s Relief Refinance Mortgage Program, which includes the Home Affordable Refinance Program (HARP) on mortgages below 80% … [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...]

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...]

15 Year Mortgages Gain Broad Appeal

By Mike Colpitts Fixed 15-year mortgages, once thought to be the impossible for most homeowners to afford, are gaining ground in the current economy at never before seen levels. Homeowners refinancing homes and new home purchases are increasingly opting for the loans. The mortgages cut the number of years it takes to pay off a home loan in half from the customary 30-year fixed rate mortgage, and gives mortgage holders more peace of mind in … [Read more...]

Mortgage Activity Surges on Refinancing

By Mike Colpitts Mortgage rates hit another record low last week, spurring a huge surge in home refinancing as homeowners sought out the lowest loan payments possible. The Mortgage Bankers market composite index jumped 16.9% on a seasonally adjusted basis. Refinancing surged 22% from the prior week and is at the highest level since last June. The refinance share of U.S. mortgage activity increased to make up 80.1% of all home loan … [Read more...]

Home Loans Fall, Despite Record Low Rates

Mortgage applications fell for the third consecutive week, but loans for home purchases increased, indicating pent up demand is starting to show as borrowers sign-up for record low mortgage rates in the midst of the busy summer home buying season. Mortgages for home purchases rose 3%, according to the Mortgage Bankers Association survey. Refinances, however, which make up more than three-quarters of mortgage activity, declined another 3%, … [Read more...]