By Dennis Norman, on February 4th, 2010 Dennis Norman
Bank of America announced that it is the first mortgage servicer to sign an agreement formally committing to participation in the pending second-lien component of the federal government’s Home Affordable Modification Program (HAMP).
Bank of America has systems in place to begin implementing the Second Lien Modification Program (2MP) with the release of final program policies and guidelines by federal regulatory agencies, which is expected soon. 2MP will require modifications that reduce the monthly payments on qualifying home equity loans and lines of credit under certain conditions, including completion of a HAMP modification on the first Continue Reading →
By Robert Fishel, on February 3rd, 2010
FHA loans gained in popularity for borrowers as applications for FHA-guaranteed mortgages exceeded an annual rate of 3 million in October; nearly triple the level in 2007. In 2006, when subprime and other Wall Street programs were at full speed, the annual rate for applications was less than 600,000.
As a result the Federal Housing Administration (FHA) Commissioner David Stevens recently announced a set of policy changes to strengthen the FHA’s capital reserves. The changes announced are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk Continue Reading →
By Dennis Norman, on February 2nd, 2010 Dennis Norman
Today the National Association of REALTORS released it’s December Pending Home Sales Index showing an increase of 1.0 percent in the index from November (seasonally adjusted) and a 10.9 percent increase from last year.
Here are highlights from the report:
December”s pending home sales index (seasonally adjusted) was 96.6 (the index is based upon 100.0 being equal to the average level of sales activity in 2001 which we could call the last “normal” year) which was a 1.0% increase in the index from November and an increase of 10.9 percent from the year before. December”s Continue Reading →
By Dennis Norman, on February 1st, 2010 Dennis Norman
The U.S. Department of Commerce released a report showing the sale of New Homes in December were at a seasonally adjusted annual rate of 342,000, a 7.6 percent decrease from the revised November rate of 370,000 and is 8.6 percent below a year ago.
My Mantra
As has been my long-running mantra, I don’t like “seasonally adjusted” numbers and “rate” of sales. Why, for one I can’t figure out how in the world they compute the numbers. Second, I just don’t think discussing the “rate” of new home sales paints a realistic picture of the market. I Continue Reading →
By Dennis Norman, on January 28th, 2010 Dennis Norman
This week the Treasury Department issed a report which included stats on the Home Affordable Modification Program (HAMP) which is part of the Obama administrations’ Making Home Affordable Program and “is a loan modification program designed to reduce delinquent and at-risk borrowers’ monthly mortgage payments”. The HAMP program got underway around March of this year and is set to expire December 31, 2012. According to the government website HAMP is intended to help keep “3 to 4 million Americans in their homes by preventing avoidable foreclosures.”
Permanent modifications triple in December from November:
According to the Continue Reading →
By Dennis Norman, on January 27th, 2010 Even in Tough Times, 77 Percent of Americans View Homeownership as a Part of Their Own Personal American Dream
A national survey released yesterday by Trulia shows that many Americans feel that President Barack Obama has not lived up to the hope he created during his campaign and his first 30 days in office. In Trulia’s latest American Dream survey conducted online on its behalf by Harris Interactive from January 19-21, 2009 President Barack Obama scored considerably lower marks on the topic of restoring the American dream of home ownership compared to a survey conducted February 20-24, 2009 after his Continue Reading →
By Robert Fishel, on January 27th, 2010 The mortgage market will be besieged this week by a wave of worry…demand concerns related to Treasury auctions to the question about what happens if Fed Chairman Bernanke is not confirmed for another term… uncertainty seldom pushes rates lower.
St. Louis Mortgage Rates – January 27, 2009 *
30-year fixed-rate mortgage 5.00% no points 15-year fixed-rate mortgage 4.375% no points 5/1 adjustable rate mortgage 3.875% no points 3/1 adjustable rate mortgage 3.750% no points
For more information or if you have questions on mortgage rates in St. Louis you may contact me by phone at my direct line, (314) 372-4319, Continue Reading →
By Dennis Norman, on January 26th, 2010 Dennis Norman
For the St. Louis area 2009 marked another year of “bad” records for the housing market; record numbers of foreclosures, mortgage delinquencies as well as sales numbers and prices lower than we have seen in several years. However, as I compiled St. Louis area home sales data for 2009 and compared it to the prior two years I realized this is some positive news. It appears we are perhaps seeing the bottom of the market and a flattening of the downward trends.
Unfortunately as our national debt balloons out of control, we continue to see double-digit Continue Reading →
By Dennis Norman, on January 25th, 2010 Dennis Norman
NAR’s “seasonally-adjusted” numbers show sales down 16.7 percent for the month…2009 finishes with 5,156,000 homes sold…My projection for the year was 5,143,000 homes….missed it by 13,000 (2/10 of 1 percent) hmm..not bad for a “non-economist” :)
According to the latest report from the National Association of REALTORS(R), existing home sales in December decreased 16.7 percent to a seasonally adjusted-annual rate of 5.45 million units in December from a revised level of 6.54 million units in November, and are 14.9 percent higher than the 4.74 million-unit pace in December 2008.
NAR’s Chief Economist, Lawrence Yun, said “It’s Continue Reading →
By Dennis Norman, on January 22nd, 2010 Dennis Norman
FHA Announces Policy Changes to Address Risk and Strengthen Finances
This week FHA announced policy changes that are going to help them shore up their finances but will make it more difficult and/or costly for your clients to purchase a home.
The FHA policy changes include: Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending The upfront mortgage insurance fee to the borrower will be increased to 2.25% from 1.75%. This will go into effect this spring. Update the combination of FICO scores and down payments for new Continue Reading →
By Dennis Norman, on January 20th, 2010 Dennis Norman
We are long overdue for some good news on the St. Louis housing market and data from December home sales brought just that. Based upon my comparision of homes sold in December 2009 with the year prior, it appears to me the St. Louis housing market may have found it’s bottom and now be starting to level off.
There are still disturbing aspects of the data, like the fact that for the St. Louis metro area there were almost 8 percent fewer homes sold in December 2009 than in December 2008 but there is light at Continue Reading →
By Dennis Norman, on January 18th, 2010 Dennis Norman
MortgageDaily.Com tracks mortgage company failures on it’s website The Mortgage Graveyard. According to The Mortgage Graveyard 225 mortgage-related firms in the U.S. ended operations or failed in 2009, higher than any year since they began tracking data in 1998. This was an increase of over 80% from 2008 which saw 124 firms fail.
The annual surge was fueled by a spike in bank failures — which increased more than 400 percent. Banks account for most of the country’s residential originations. Credit union failures, including corporate and state-regulated institutions, were up by more than a third.
Here in Continue Reading →
By Dennis Norman, on January 15th, 2010 Dennis Norman
If you are one of the million-plus homebuyers that was fortunate enough to qualify for the Home Buyer tax credit, read on for information on how to claim your credit.
Today the Internal Revenue Service released a new form that eligible homebuyers must need to use to claim the first-time homebuyer credit this tax season, along with instructions and guidelines for other documentation that must accompany your tax return.
The new form and instructions follow major changes in November to the homebuyer credit by the Worker, Homeownership, and Business Assistance Act of 2009. The new law Continue Reading →
By Dennis Norman, on January 14th, 2010 Dennis Norman
I would say it’s say to say that the Obama administrations efforts to curtail the foreclosure rate is not working as the foreclosure rate in St. Louis increased again in November according to a report released today by First American CoreLogic.The report showed the St. Louis metro area to have a foreclosure rate of 1.35 percent in November, up just slightly from October’s rate of 1.31 percent and increase of 68.75 percent from a year ago when the rate was 0.80percent.
The national foreclosure rate for November was again over double the rate of St. Continue Reading →
By Dennis Norman, on January 13th, 2010 St. Louis mortgage rates this week remain unchanged on fixed rate loans this week but dropped slightly on ARM’s according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – January 13, 2009 *
30-year fixed-rate mortgage 5.125% no points 15-year fixed-rate mortgage 5.00% no points 3/1 adjustable rate mortgage 3.875% no points 5/1 adjustable rate mortgage 4.000% no points
For more information or if you have questions on mortgage rates in St. Louis you may Continue Reading →
By Dennis Norman, on January 11th, 2010 Dennis Norman
Depending on which estimate you believe, somewhere between one-third and one-half of the homeowners with a mortgage in the U.S. owe more on their homes than their homes are currently worth. This has lead to an unprecedented amount of short-sales and in many cases, a lender “forgiving” you of the short-fall (the amount of your loan your sale proceeds were not adequate to pay) which, in the past could have left you owing taxes on the “forgiven debt”.
For some of those underwater homeowners that are not fortunate enough to do a short sale they may Continue Reading →
By Dennis Norman, on January 7th, 2010 St. Louis mortgage rates this week bounced around a bit with 30 year fixed rate mortgages and ARM’s decreasing slightly while 15 year fixed rate mortgage rates increased according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – January 6, 2009 *
30-year fixed-rate mortgage 5.125% no points 15-year fixed-rate mortgage 5.00% no points 3/1 adjustable rate mortgage 4.00% no points 5/1 adjustable rate mortgage 4.125% no points
For more information or if you have Continue Reading →
By Dennis Norman, on January 6th, 2010 Dennis Norman
In the past I think closing costs associated with the purchase of a home were pretty much a mystery to many, if not most, home buyers with many not even being sure what they were paying for. Most buyers simply went through the process, paying for closing fees, notary fees, title examination, title insurance, survey, flood letters, courier fees, recording fees, etc. without ever realizing that these fees and costs may vary with other vendors.
January 1st changes went into effect in the RESPA (Real Estate Settlement Procedures Act) which will require lenders to fully disclose all Continue Reading →
By Dennis Norman, on January 6th, 2010 Dennis Norman
Or should I say “It’s all in the headline”?
So what am I talking about? The pending home sales data that was released by the National Association of REALTORS today, of course. Actually I could be referring to any data on the housing market whether new home sales, foreclosure rates, interest rates, existing home sales or inventories of homes for sale.
There only major housing report that was released today was the Pending Home Sales Index for November by NAR. Being a report based upon data you would think the numbers speak for Continue Reading →
By Dennis Norman, on December 30th, 2009 St. Louis mortgage rates inreased again this week bringing 30 year rates above 5 percent according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – December 30, 2009 *
30-year fixed-rate mortgage 5.25% no points 15-year fixed-rate mortgage 4.75% no points 3/1 adjustable rate mortgage 4.25% no points 5/1 adjustable rate mortgage 4.50% no points
For more information or if you have questions on mortgage rates in St. Louis you may contact John Frank by Continue Reading →
By Dennis Norman, on December 28th, 2009 Dennis Norman
In a just a few days we will say goodbye to 2009; a year that has been brutal to the housing market. So as the new year comes in, what will 2010 hold in store for the housing market?
To answer this question I turned to the housing forecast just released by Fannie Mae to see what their economists were predicting. Here are the highlights from the report, showing actual numbers for the 3rd quarter of this year as well as Fannie Mae’s projection for 4th quarter of this year as well as 4th quarter of 2010:
Continue Reading →
By Dennis Norman, on December 25th, 2009
By Dennis Norman, on December 24th, 2009 Dennis Norman
NAR’s “seasonally-adjusted” numbers show sales up 7.4 percent for the month…”actual” numbers show a 5.2 percent decrease….Sales up 44 percent from last year, lest we not forgot last year was the worst in over 10 years…
According to the latest report from the National Association of REALTORS(R), existing home sales in November increased 7.4 percent to a seasonally adjusted-annual rate of 6.54 million units in November from a revised level of 6.09 million units in October, and are 44.1 percent higher than the 4.44 million-unit pace in November 2008. Existing home sales are now at the highest Continue Reading →
By Dennis Norman, on December 23rd, 2009
Dennis Norman
New homes were started in November at an annual rate of 482,000 homes and I asked why in my post last week since new home construction was already outpacing sales….well, today the gap got worse..
This morning the U.S. Department of Commerce released a report showing the sale of New Homes in November were at a seasonally adjusted annual rate of 355,000, an 11.3 percent decrease from the revised October rate of 400,000 and is 9.0 percent below a year ago.
My Mantra
As has been my long-running mantra, I don’t like “seasonally Continue Reading →
By Dennis Norman, on December 22nd, 2009 According to NAR 51 percent of recent homebuyers are first-time buyers and 39 percent of recent home sales have relied on an FHA loan
Dennis Norman
The National Association of REALTORS just released a report showing that 51 percent of the homes sold recently have been to first-time home buyers and that 39 percent of all recent buyers have turned to an FHA loan for financing for their home purchase.
I think this clearly illustrates that the first-time home buyer tax credit, coupled with record low interest rates and drastically reduced home prices, is giving buyers, at least Continue Reading →
By Dennis Norman, on December 21st, 2009 Dennis Norman
Foreclosure rates in St. Louis increased for the month of October over the same period last year according to a report released by First American CoreLogic. The report showed the St. Louis metro area to have a foreclosure rate of 1.31 percent in October, up just slightly from September’s rate of 1.25 percent, but up 61.7 percent from a year ago when the rate was 0.81 percent.
The national foreclosure rate for October was over double the rate of St. Louis at 3.02 percent and was an increase of 77.6 percent from a year ago Continue Reading →
By Dennis Norman, on December 18th, 2009 Dennis Norman
UPDATE June 7, 1010 – Here are links to the Forms from MHDC to claim the tax credit as well as some sample forms they have provided showing how to fill them in:
Program ApplicationHome Purchase AffidavitPromissory NoteHope Program Information and InstructionsSample Forms
******
Just moments ago, the Missouri Housing Development Commission passed at $35 million economic development initiative. Part of this initiative (to the tune of $20 million worth) is aimed toward helping stimulate home sales in Missouri.
The initiative includes:
$15 million to pay the first year of property taxes for qualified homebuyers who Continue Reading →
By Dennis Norman, on December 17th, 2009 Dennis Norman
Last week I did a post about the Obama Administrations’ Home Affordable Modification Program (HAMP) and showed how it really has not been effective in helping keep families in their homes and avoid foreclosure as was the intention by the administration. When my kids tell me they don’t like the way I want them to do something I usually challenge them with “if you don’t like my way, tell me a better way to do it“. So with this in mind I went looking for an answer to this question.
In my search I ran accross a Continue Reading →
By Dennis Norman, on December 16th, 2009
New home construction is on the rise in November…. WHY??? They aren’t selling as fast as they are being built…didn’t we learn our lesson?
The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for November 2009 showing an increase in new home construction activity from October.
The report shows the following:
Building permits issued for single-family residences in November were at an annual rate of 473,000 which is 5.3 percent above the revised October rate of 449,000 and down 12.1 percent from a year ago. For the Continue Reading →
By Dennis Norman, on December 15th, 2009 St. Louis mortgage rates inched up slightly this week but remained at near record-lows according to St. Louis-based Paramount Mortgage Company.
Lower interest rates, low prices and the extension and expansion of the home-buyer tax credit should be pretty tempting to buyers out there.
St. Louis Mortgage Rates – December 15, 2009 *
30-year fixed-rate mortgage 5.00% no points 15-year fixed-rate mortgage 4.75% no points 3/1 adjustable rate mortgage 3.75% no points 5/1 adjustable rate mortgage 3.875% no points
For more information or if you have questions on mortgage rates in St. Louis you may contact John Frank by phone Continue Reading →
|
Recent Articles
Helpful Real Estate Resources
|
