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The National Association of Realtors released the Pending Home Sales Index today. NAR’s Pending Home Sales Index measures the number of home purchase contracts that were signed in the monthly reporting period. Once “pending” sales contracts are closed, they are considered an existing home sale. Because the Pending Home Sales index tells us how many contracts were signed, it is consider a forward indicator of existing home sales. A signed contract is not counted as an existing home sale until the transaction actually closes. Excerpts from the Release… Following a sharp drop in the months immediately after expiration of the home buyer tax credit, pending home sales have modestly risen. The Pending Home Sales Index, a forward-looking indicator, rose 5.2 percent to 79.4 based on contracts signed…(read more)

Full article: Pending Home Sales Rebound from Record Low. What Might Boost Buyer Demand? ...

Community organizers, state and federal government officials, and representatives from banking, research and educations institutions are currently meeting in Washington at a REO and Vacant Properties Summit sponsored by the Federal Reserve Bank. The two day conference is focused on examining the problems associated with vacant and abandoned property and to explore approaches to neighborhood stabilization. Governor Elizabeth Duke, Board of Governors of the Federal Reserve opened the summit on Wednesday. In her remarks she introduced the types of issues that are faced by communities with high rates of foreclosure and REO and highlighted some of the lessons learned in the last few years about neighborhood stabilization strategies. She pointed out that the impact of each foreclosure goes far beyond…(read more)

Full article: Fed Hosts Neighborhood Stabilization Summit ...

The Census Bureau today released Construction Spending data for July 2010. Residential construction spending includes remodeling, additions, and major replacements to owner occupied properties subsequent to completion of original building. It includes construction of additional housing units in existing residential structures, finishing of basements and attics, modernization of kitchens, bathrooms, etc. Also included are improvements outside of residential structures, such as the addition of swimming pools and garages, and replacement of major equipment items such as water heaters, furnaces and central air-conditioners. Maintenance and repair work is not included. The value of all construction put in place in the U.S. on an annualized basis was $805.2 billion compared to a rate of $813.1 billion…(read more)

Full article: Recap and Charts: July Construction Spending Data ...

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 27, 2010. The MBA’s loan application survey covers over 50% of all U.S. residential mortgage loan applications taken by retail mortgage bankers, commercial banks, and thrifts. The data gives economists a snapshot view of consumer demand for mortgage loans. In a low mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out a lower monthly payment. If consumers are able to reduce their monthly mortgage payment and increase disposable income through refinancing, it can be a positive for the economy as a whole (creates more consumer spending or allows debtors to pay down personal liabilities like credit cards). A falling trend of…(read more)

Full article: Rising Refi Index Indicative of Pickup in Prepay Speeds on Recent Vintage MBS ...

The Standard & Poor’s/Case-Shiller U.S. National Home Price Index was up 4.4 percent in the second quarter of 2010, more than recovering from the 2.9 percent loss that was suffered in the first quarter, but the index committee warned that recent housing indicators “point to more ominous signals as tax incentives have ended and foreclosures continue.” On a month to month basis, the 10-city index improved 1.0 percent to 161.04 and the 20-city index rose 1.0 percent to 147.97. The year over year 10-City and 20 City Composite Indices for June marked the first time in 16 months that the increase in annual returns moderated, pointing to a possible deceleration in home price returns. In May the YoY increase in the 10-City Composite was 5.4 percent, in June it was 5.0 percent. The 20-City figure…(read more)

Full article: S&P/Case-Shiller: Home Prices Rise in June. Tax Credit Hangover Ahead ...

In the wake of a full week full of bad economic news, especially housing indicators, Secretary of Housing and Urban Development (HUD) Shaun Donovan appeared on CNNs Sunday morning news and interview program State of the Union . Host Ed Henry prefaced the interview with July housing numbers - a 27 percent decline in existing home sales and new home sales at their lowest levels since 1963 . “Many analysts,” Henry said, “believe that housing started this whole financial crisis. We saw some pretty grim headlines this week sparking some fears about a double dip recession.” He asked Donovan, what he could say to reassure Americans that this will not happen. Donovan said that the dip in house sales in July was not unexpected because it would mark the end of the homebuyers’ tax credit that had been…(read more)

Full article: HUD Secretary Tiptoes Around Another Tax Credit, Pushes Balanced Housing Policy ...

The first Conservator's Report on the Enterprises' Financial Performance issued by the Federal Housing Finance Agency on Thursday makes an argument that the Government Sponsored Enterprises' role in the housing market was and still is vital. It also paints a picture of their fall prior to being placed in federal conservatorship in the fall of 2008. Some observers are already pointing to it as a map for the eventual reorganization of the two government sponsored enterprises. Another way of viewing the report is that is presents a strong argument for leaving the GSEs in charge. According to the report, in 2003, 62 percent of all mortgages originated in the country were conventional/conforming loans. Another 20 percent or so were FHA or jumbo loans; only 8 percent were subprime and…(read more)

Full article: Conservator’s Report: A Different View of the GSE’s Demise ...

While it reported that most delinquency figures dropped substantially in the second quarter, the Mortgage Bankers Association's National Delinquency Survey also carried some dishearting harbingers of what might lie ahead. The report showed the seasonally adjusted delinquency rate for all loans at 9.85 percent, a drop of 21 basis points from the first quarter but 61 basis points higher than it was during the second quarter of 2009. Delinquency rate figures include all loans that are at least one payment past due, but do not include loans in the process of foreclosure. When those are added into the total the delinquency rate rises to 13.97 percent compared to 14.01 in the first quarter. Foreclosure actions were started on 1.11 percent of loans, down from 1.23 percent in the first quarter…(read more)

Full article: MBA: 30-Day Delinquencies on the Rise Again ...

Federal Reserve Bank of Chicago President Charles Evans pointed directly to a major problem with the economic system in a speech before the Indianapolis Neighborhood Housing Partnership on Wednesday: a serious deficit in the country's financial literacy. His solution, however is aimed less at eliminating that illiteracy than at incentivizing it in appropriate directions. Evans spoke at the Indianapolis Neighborhood Housing Partnership (INHP) Community Breakfast on the roots of the housing crisis and current plans to end it, but his speech differed a bit form the formulaic presentation given over and over by financial and housing officials. While others have pointed to the use of inappropriate mortgage products as one cause of the crisis, rather than vilify these products such as option…(read more)

Full article: Chicago Fed Explores Effectiveness of Home Buyer Counseling ...

FYI: This update was issued to lenders yesterday by the USDA Rural Housing Office….. HERE is the presser issued by the USDA —————————– TO : Participating Lenders FROM : Tammye Trevifio, Administrator, Housing and Community Facilities Programs SUBJECT : Single Family Housing Guaranteed Loan Program Funding Notice Many of you may be aware of recent legislation in which Congress provided USDA with authority to resume operating the Single Family Housing Guaranteed Loan Program (SFHGLP) at no cost to taxpayers. This was done through a combination of authority to: increase the upfront fee up to 3.5 percent of the principal obligation; charge a new annual fee of up to 0.5 percent of the outstanding principal balance; and waive payment of any fees for low and very low income borrowers…(read more)

Full article: USDA Rural Housing Issues Funding Update: Lenders Still in Limbo ...

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending August 20, 2010. The MBA's loan application survey covers over 50% of all U.S. residential mortgage loan applications taken by retail mortgage bankers, commercial banks, and thrifts. The data gives economists a snapshot view of consumer demand for mortgage loans. In a low mortgage rate environment, a trend of increasing refinance applications implies consumers are seeking out a lower monthly payment. If consumers are able to reduce their monthly mortgage payment and increase disposable income through refinancing, it can be a positive for the economy as a whole (creates more consumer spending or allows debtors to pay down personal liabilities like credit cards). A falling trend…(read more)

Full article: Loan Demand Gets Boost from Recently Refinanced Borrowers ...

The Census Bureau and the Department of Housing and Urban Development have released New Residential Home Sales data for July 2010. Surprise! New Home Sales Hit a New Record Low. AGAIN! Excerpts from the Release… Sales of new single-family houses in July 2010 were at a seasonally adjusted annual rate of 276,000. This is 12.4 percent below the revised June rate of 315,000 and is 32.4 percent below the July 2009 estimate of 408,000. The median sales price of new houses sold in July 2010 was $204,000. This is the lowest median price since December 2003. The average sales price was $235,300. The seasonally adjusted estimate of new houses for sale at the end of July was 210,000. This represents a supply of 9.1 months at the current sales rate. Three months after the home buyer tax credit expired…(read more)

Full article: Another Foul Housing Headline. Negative Feedback Loop in Progress ...

The National Association of Realtors today released Existing Home Sales data for July 2010. HERE is the methodology for data collection Excerpts from the release…. Existing-home sales were sharply lower in July following expiration of the home buyer tax credit but home prices continued to gain, according to the National Association of Realtors®. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 27.2 percent to a seasonally adjusted annual rate of 3.83 million units in July from a downwardly revised 5.26 million in June, and are 25.5 percent below the 5.14 million-unit level in July 2009. Total Sales are at the lowest level since the total existing-home sales series launched. Single-family home sales dropped 27…(read more)

Full article: July Existing Home Sales: Recap and Charts ...

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury have released the August edition of the Obama Administration's Housing Scorecard . The August 2010 Scorecard was marked primarily by how few changes were evidenced since the July Report. Housing prices have been relatively flat on a month to month basis since January 2009 when they ended their 30 month decline. Historic low interest rates continued to promote home affordability and refinancing options for the nation's families, but few people were taking advantage of it either to purchase a home or refinance their existing one. Overall, the market remains fragile with foreclosure starts showing a slight increase and serious delinquencies continuing to work through the pipeline. MND has…(read more)

Full article: Monthly Housing Scorecard: Administration Touts Increased Price Stabilization ...

The Federal Housing Finance Agency (FHFA) took a step last week that may effectively end private transfer fees before the end of the year. The agency announced a public comment period on new regulations that would restrict Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (FHLBanks) from investing in mortgages with private transfer fee covenants. The proposed "Guidance" would extend to mortgages and securities purchased by FHLBanks or acquired by them as collateral for advances, and to mortgages and securities purchased or guaranteed by the Enterprises. Transfer fees are enabled by covenants on a deed which require a payment to a third party every time property ownership is transferred and are typically 1 percent of the amount of the sale. For example: a developer of a condominium…(read more)

Full article: FHFA Proposal to Effectively End Private Transfer Fees ...