By Dennis Norman, on February 14th, 2011 This past Friday Federal Reserve Board Governor Sarah Bloom Raskin spoke at the 2011 Midwinter Housing Finance Conference about the powerful impact the housing and mortgage markets have had on the nation’s economy recovery.
Governor Raskin began by point out that, “speaking strictly in an economic sense, the recession that emerged in 2008 is over.” She then followed by saying “I know that the millions of Americans still looking for work, living in cars or motels, or trying to keep their businesses out of bankruptcy would beg to disagree.” Gov Raskin went on to state that our economy is in Continue Reading →
By Joe Plemon, on February 11th, 2011
“It seems like we will be making house payments forever. We owe $140,000 at 6% interest and are paying $1000 a month. How much sooner could we pay it off if we started paying an extra $100 a month?”
The above is a hypothetical question, but it could be you. There are two answers: the quick one and the dig deeper one. By clicking a few buttons on a financial calculator we discover the quick answer is 21 months; paying an extra $100 will reduce the payoff from 20 years to 18 years and 3 months.
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By Dennis Norman, on February 10th, 2011 St. Louis bucks the national foreclosure trend…in the wrong way..
Earlier today I wrote that the U.S. foreclosure rate for January was up 1 percent from December and down 17 percent from the year before….unfortunately the numbers for St. Louis are not that good at all and in fact much worse. According to data released by RealtyTrac, the St. Louis Metro Area foreclosure rate in January 2011 rose almost 9 percent from December (8.76 percent) and was up 14.77 percent from January 2010.
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By Dennis Norman, on February 10th, 2011 According to a survey from Coldwell Banker Real Estate, 87 percent of first-time home buyers want to buy a “move-in-ready” home. First-time buyers have indicated they want to buy a home that is affordable, but they are not looking for the “fixer-uppers” as much as past buyers may have been.
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By Dennis Norman, on February 10th, 2011
RealtyTrac released their foreclosure report for January 2011 showing there were foreclosure filings in January on 261,333 U.S. properties, a 1 percent increase from December but a 17 percent decrease from January 2010.
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By Robert Fishel, on February 9th, 2011
Missouri Housing Development Commission offers first-time home buyers a forgivable 3% Cash Assistance Loan (CAL) for down payment and closing costs. Terms of this program include:
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By Dennis Norman, on February 8th, 2011 Today, CoreLogic released its December Home Price Index (HPI) showing that home prices in the U.S. declined for the fifth-straight month. The report shows home prices declined by 5.46 percent in December 2010 compared with December 2009.
St. Louis home prices fell by 8.74 percent in December 2010 compared with December 2009, a decline of over 60 percent higher than the national home price decline. Home prices for the state of Missouri fell 8.82 percent during the period, slightly higher than St. Louis and high enough to put Missouri at number 5 in the country for home price declines for Continue Reading →
By News Desk, on February 5th, 2011 A federal grand jury indicted a Brookwood man yesterday on wire fraud and false statement charges related to a more than $1 million mortgage fraud scheme in the Birmingham area, announced U.S. Attorney Joyce White Vance.
A 34-count indictment filed in U.S. District Court charges SCOTT ERIC PERRY, 34, with 17 counts of wire fraud and 17 counts of making false statements to lending institutions in connection to real estate transactions between February and December, 2006.
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By Dennis Norman, on February 4th, 2011 Today Richard W. Northcutt, a California real estate investor, pleaded guilty to conspiring with a group of real estate speculators who agreed not to bid against each other at certain public real estate foreclosure auctions in San Joaquin County. According to the court documents the primary purpose of the conspiracy was to suppress and restrain competition and to obtain selected real estate offered at these foreclosure auctions at non-competitive prices.
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By Dennis Norman, on February 3rd, 2011 The Federal Housing Finance Agency (FHFA) back in August, 2010, published proposed “guidance” related to private transfer fee covenants that applied to Fannie Mae, Freddie Mac and Federal Home Loan Banks (the “regulated entities). The message in this guidance was that private transfer fees are bad and those regulated enterprises should stay away from lending on real estate subject to such covenants.
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By Robert Fishel, on February 2nd, 2011 St. Louis MORTGAGE RATES for February 2, 2011:
Conventional 30-Year Fixed 4.875% Conventional 15-Year Fixed 4.250% Conventional 5/1 ARM 3.250% FHA/VA 30 Year Fixed 4.750% Jumbo 5/1 ARM 3.500% Jumbo 15 yr Fixed 4.250% Jumbo 30 yr Fixed 5.375% Continue Reading →
By Dennis Norman, on February 1st, 2011 Yesterday my wife received a letter from the condo association for a complex she owns a rental in with “OWNER ALERT!!!!!!!” (yes, that many exclamation points) at the top of it in big letters. The reason for the “alert” was to let condo owners know that FHA certification for this condominium complex expired December 31, 2010 (as it did for many complexes across the country) and that, in order to be eligible for FHA-insured financing the complex would have to obtain re-certification.
Now, in this particular case, the board is using this as a scare tactic to try to convince Continue Reading →
By Dennis Norman, on February 1st, 2011
RealtyTrac released their foreclosure report for 2010 which showed some mixed results. During 2010 there were 2,871,891 foreclosure filings in the U.S., an increase of 1.67 percent from 2009. However the metro areas with the 10 highest foreclosure rates all saw decreases in foreclosure filings in 2010 from the year before, in fact six of the ten metros even had decreased foreclosure activity from 2008.
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By Dennis Norman, on January 31st, 2011 The Federal Housing Administration (FHA) announced the temporary waiver of the “anti-flipping” rule has been extended through December 31, 2011. In my opinion the “anti-flipping” rule was a bad idea to start with and in the current housing market the last thing we need is anything to discourage investors from buying homes so this is a good move by FHA.
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By Dennis Norman, on January 27th, 2011 Dennis Norman
The National Association of REALTORS Pending Home Sales Index for December shows an increase of 2.0 percent in the index from the month before (seasonally adjusted), and a 4.2 percent decrease from a year ago.
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By Robert Fishel, on January 26th, 2011 Even though over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name”, there are truly benefits to them including:
ARM rates are now more attractive than ever before. Rates have fallen to 3.50% for a 5/1 ARM. ARMs are predictable. Rates are capped so there are no surprises for borrowers. Rates adjust only on the remaining principal of the loan. Rate adjustments could decrease (increases are limited to the prevailing index in which the ARM is based). Lower Monthly Payments – Increases the buying power of borrowers which attracts buyers to new homes. Continue Reading →
By Dennis Norman, on January 26th, 2011 Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for December 2010 showing an increase of 17.5 percent from the month before, but a decrease of 7.6 percent from a year ago.
The seasonally-adjusted new home sales rate for December was 329,000 homes, a 17.5 percent increase from November’s revised rate of 280,000 homes. The supply of new homes on the market decreased from an adjusted 8.4 month supply in November to a 6.9 month supply in December. The median new home price increased for the month to $241,500 whopping 12.0 Continue Reading →
By Dennis Norman, on January 25th, 2011 Dennis Norman
Today the S&P/Case-Shiller Index report for November was released and confirms concerns that I have discussed previously that the housing market is headed for a double dip in home prices.
The report revealed that home prices decreased in 19 or the 20 metro areas covered by the report from their October levels and only four of the metro’s showed a year-over-year price gain in November.Furthermore, nine metros – Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007.
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By Dennis Norman, on January 25th, 2011 Dennis Norman
The St. Louis foreclosure rate shot up 7 percent in November to 1.67 percent, according to a report published by CoreLogic. The report also shows that the rate of serious mortgage delinquencies in St. Louis (90+ days delinquent) increase slightly to 5.18 percent in November from 5.17 percent the month before.
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By Dennis Norman, on January 21st, 2011
A “first-look” report issued by Lender Processing Services, one of the countries largest loan servicers and aggregators of loan performance data, is somewhat encouraging as it shows the U.S. mortgage delinquency rate (not including foreclosures) for December was 8.83 percent which is a decrease of 2.1 percent from November’s rate of 9.02 percent.
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By Dennis Norman, on January 20th, 2011 Today’s existing home sales report from the National Association of REALTORS(R) shows St. Louis area existing home sales for December were 3.1 percent higher than a year ago and St. Louis area home prices in December were 7.8 percent higher than the year before.
Nationally, existing home sales in December were at at a seasonally adjusted-annual rate of 5.28 million units which is an increase of 12.3 percent from November and is a decline of 2.9 percent from a year ago. Preliminary numbers for 2010 show 4,908,000 existing homes sold which is a decrease of 4.8 percent from 2009 when Continue Reading →
By Robert Fishel, on January 19th, 2011
Private Mortgage Insurance, also known as PMI, is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio — the amount of your mortgage loan divided by the value of your home — is greater than 80 percent.
Mortgage Insurance isn’t a bad thing — it allows you to make a lower down payment and still qualify for a mortgage loan. In fact without PMI, many of us would not be able to Continue Reading →
By Dennis Norman, on January 18th, 2011
The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for December 2010 showing a 5.5 percent increase in single-family home building permits from November, but a 9.0 percent decrease in new home starts compared to the month before.
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By Dennis Norman, on January 14th, 2011 You finally reach a deal with a buyer to sell your house, or strike a deal with the seller of your dream home, only to see the deal fall apart later when the house doesn’t appraise for the price that has been agreed upon…what are you to do? This is a plight that has become all too common today for many buyers and sellers. Why? Several reasons….appraisers have, after being blamed by many for causing or contributing to the downfall of the housing market, understandably so become cautious and somewhat conservative when putting a value on a home today. Not Continue Reading →
By Dennis Norman, on January 13th, 2011
A report released by CoreLogic showed that the St. Louis foreclosure rate increased in October marking the fourth-consecutive month of increases. The report shows St. Louis to have a foreclosure rate in October of 1.58 percent, a slight increase from September’s 1.57 percent, however an increase of over 11 percent from a year ago. The foreclosure rate in the U.S. in October was 3.33 percent, an increase of 14 percent from the year before.
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By Robert Fishel, on January 12th, 2011
The FHA 203K rehab program is intended to promote and facilitate the restoration and preservation of existing homes. It enables borrowers to finance the acquisition and rehab of a property in one step; the loan value is based on the projected value of the home at the completion of the rehab.
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By Dennis Norman, on January 11th, 2011 Today, CoreLogic released its November Home Price Index (HPI) showing that home prices in the U.S. declined for the fourth-straight month. The report shows home prices declined by 5.07 percent in November 2010 compared with November 2009.
St. Louis home prices fell by 7.57 percent in November 2010 compared with November 2009, right at 50 percent more than the national home price decline.
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By Dennis Norman, on January 7th, 2011 The real estate market has not been very nice to us over the past 3 years or so and we are all anxious to see the light at the end of the tunnel. With that in mind, and 2011 in front of us, where is the real estate market headed in 2011? Before I take my humble stab at answering this question I need to remind you I am not an economist nor do I have a PhD behind my name, in fact I have nothing behind my name. All I can offer is a whole lot of experience “in Continue Reading →
By Robert Fishel, on January 5th, 2011
The President has signed the bill extending Mortgage Insurance tax deductibility through December 31, 2011. Borrowers can use Mortgage Insurance (MI) to buy a home sooner and enjoy predictable payments, while benefiting by deducting the premiums from their income taxes. And MI can be canceled once the home buyer builds enough equity. MI is required on all mortgage loans that exceed an 80% loan to value.
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By Dennis Norman, on January 1st, 2011
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