Home loans

Freddie Mac Announces New Foreclosure Prevention Program

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Mortgage shopping, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on March 25th, 2017 by Jim – Be the first to comment

Freddie Mac recently announced the Freddie Mac Flex Modification foreclosure prevention program, which is designed to help America’s families by offering significant reductions in their monthly mortgage payments. It replaces Freddie Mac’s version of the Home Affordable Modification Program (HAMP), which is set to expire at the end of this year.

The new program was developed in alignment with Fannie Mae at the direction of the Federal Housing Finance Agency (FHFA).

The Flex Modification is expected to provide a 20 percent payment reduction for eligible borrowers. A high percentage of those who are at least 60 days delinquent would be eligible; the modification could also be an option for those who are current or less than 60 days delinquent in certain situations.

Servicers must implement the new program by Oct.1, 2017. In the interim, while HAMP expires on Dec.30, 2016, Freddie Mac’s Standard and Streamlined Modifications will remain in effect until the new program is implemented.

Most Home Buyers Keep Their Options Open

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on November 18th, 2016 by Jim – Be the first to comment

In today’s competitive housing market, most of those who moved recently considered both buying and renting while looking for a new place to live, according to the Zillow Group Report on Consumer Housing Trends.

It takes more than 10 weeks to find a new home to rent – and more than 12 weeks for those with low incomes or those searching in tight rental markets, according to an analysis of the Zillow Group Report and U.S. Census data. For home buyers, the search is longer – 17 weeks.

More than half — 54 percent — of buyers do not get the first home on which they make an offer. First-time home buyers make up 47 percent of all buyers, so it’s feasible for many potential buyers to keep their options open and return to renting if they aren’t successful purchasing a home.

Banks Rush to Offer 3% Down Payment Loans

Posted in Atascadero, Central Coast Real Estate, Home loans, Paso Robles, Templeton, Time to buy a Home on June 20th, 2016 by Jim – Be the first to comment

As some banks veer from Federal Housing Administration loans, they’re offering their own low down payment mortgages to appeal to home shoppers struggling to save enough to buy a home. Wells Fargo recently made headlines when it debuted its 3 percent down payment loan.

PMorgan Chase also announced its offering called the “Standard Agency 97%” program, a 3 percent down payment loan geared for first-time home buyers and requires a FICO score of 680. Chase also has a loan program called “DreaMaker Mortgage,” which offers a 5 percent down payment – 3 percent of which can come from the borrower as well as flexible funding options for closing costs and reduced mortgage insurance requirements.

Other banks have recently announced their low down payment offerings. Earlier this year, Bank of America began offering a 3 percent down payment loan that did not involve the Federal Housing Administration and does not require mortgage insurance. The bank requires a minimum FICO score of 660.

Mortgage Foreclosures and Delinquencies Continue to Drop

Posted in Atascadero, Central Coast Real Estate, Home loans, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on March 16th, 2016 by Jim – Be the first to comment

The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 4.77 percent of all loans outstanding at the end of the fourth quarter of 2015, according to the Mortgage Bankers Association’s National Delinquency Survey. This was the lowest level since the third quarter of 2006. The delinquency rate decreased 22 basis points from the previous quarter, and 91 basis points from one year ago. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure.

The percentage of loans on which foreclosure actions were started during the fourth quarter was 0.36 percent, a decrease of two basis points from the previous quarter, and down 10 basis points from one year ago. This foreclosure starts rate was at the lowest level since the second quarter of 2003.

The percentage of loans in the foreclosure process at the end of the third quarter was 1.77 percent, down 11 basis points from the third quarter and 50 basis points lower than one year ago. This was the lowest foreclosure inventory rate seen since the third quarter of 2007.

The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 3.44 percent, a decrease of 13 basis points from last quarter, and a decrease of 108 basis points from last year. This was the lowest serious delinquency rate since the third quarter of 2007.

Buying More Affordable than Renting in 58 Percent of U.S. Markets

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on January 30th, 2016 by Jim – Be the first to comment

RealtyTrac released its 2016 Rental Affordability Analysis which shows that buying is still more affordable than renting in 58 percent of U.S. housing markets despite home price appreciation outpacing rent growth in 55 percent of markets. The report also shows that the rise in rents is outpacing weekly wage growth in 57 percent of markets.

Rents on three-bedroom properties will increase an average of 3.5 percent in 2016 compared to 2015 across all 504 counties analyzed, according to the HUD data. Meanwhile, average weekly wages in the second quarter of 2015 (the most recent wage data available) were up an average of 2.6 percent from a year ago and median home prices were up an average of 5 percent in the third quarter of 2015 compared to a year ago across all 504 counties.

Across all 504 counties analyzed, average wage earners will need to spend 37 percent of their income on rents for a three-bedroom property in 2016, slightly less than the 38 percent of income to make monthly house payments — assuming a 3 percent down payment and including mortgage, taxes, insurance and mortgage insurance — on a median priced home on average across all 504 counties.

Renting was more affordable than buying in 213 of the 504 counties analyzed (42 percent), including counties in Los Angeles, Houston, San Diego, New York City (Brooklyn), and Dallas. Buying was more affordable than renting in 291 counties (58 percent) including counties in Chicago, Phoenix, Miami, the Inland Empire of Southern California, Las Vegas, and Detroit.

Mortgage Standards Are Easing

Posted in Atascadero, Central Coast Real Estate, Home loans, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on October 28th, 2015 by Jim – Be the first to comment

Fannie Mae’s third quarter 2015 Mortgage Lender Sentiment Survey reveals that more lenders report easing of mortgage lending standards across all loan types. Conducted in August 2015, the survey asked senior mortgage executives whether their lending organization’s credit standards have eased, tightened, or remained essentially unchanged for GSE eligible, non-GSE eligible, and government loans during the prior three months. Notably, the gap between lenders reporting easing as opposed to tightening over the prior three months jumped to 20 percentage points and 18 percentage points for GSE eligible and non-GSE eligible loans, respectively—reaching new survey highs of “net easing.” In addition, the share of lenders who expect their organizations to ease credit standards over the next three months ticked up this quarter for both GSE eligible and non-GSE eligible loans.

Highlights from the survey include:
•Senior mortgage executives continue to be more optimistic about the economy than general consumers.
•Senior mortgage executives continue to be more optimistic than general consumers about future home prices.
•Senior mortgage executives continue to be less optimistic than general consumers when it comes to the ease of getting a mortgage today.
•The share of lenders reporting increased purchase mortgage demand over the prior three months fell slightly this quarter (Q3 2015) from last quarter (Q2 2015), but overall remains at a high level compared with the 2014 readings.
•For purchase mortgage demand over the next three months, the share of lenders expecting demand to go up fell this quarter from last quarter, likely reflecting seasonal influences, but remains higher than the same period last year (Q3 2014).

California Home Sales Cool in August as Price Gains Temper

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on September 21st, 2015 by Jim – Be the first to comment

Following a hotter than usual summer of homes sales, California’s housing market cooled in August, but still posted higher year over year for the seventh straight month, C.A.R. reported this week.

Home sales remained above the 400,000 mark in August for the fifth consecutive month and rose to the highest level since October 2012. Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 431,800 units in August, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.

The August figure was down 3.8 percent from the revised 448,900 level in July but up 9.3 percent compared with home sales in August 2014 of a revised 395,080. The year-to-year change was higher than the 6-month average increase of 8.6 percent observed from February 2015 to July 2015.

The median price of an existing, single-family detached California home edged up 1 percent in August to $493,420 from a revised $488,470 in July. August’s median price was 2.5 percent higher than the revised $481,240 recorded in August 2014.

Low Mortgage Rates Boost Refinance Activity in Q1

Posted in Atascadero, Central Coast Real Estate, Home loans, Paso Robles, Templeton, Time to buy a Home, Time to sell a home on May 8th, 2015 by Jim – 1 Comment

Freddie Mac released the results of its quarterly refinance analysis for the first quarter of this year, showing that borrowers took advantage of better than expected mortgage rates to lower their monthly mortgage payment and shorten their loan term as refinance activity accounted for 63 percent of all single-family originations. Approximately 27 percent of borrowers increased their loan amount when refinancing, either by cashing out equity or consolidating loans, versus 29 percent from last quarter, 17 percent from the same time last year and well below the peak of 89 percent in 2006.

Highlights from the analysis include:
•Of borrowers who refinanced during the first quarter of 2015, 34 percent shortened their loan term, down slightly from the previous quarter.
•The average interest rate reduction in the first quarter was about 1.2 percentage points – a reduction of about 24 percent.
•About 73 percent of those who refinanced their first-lien home mortgage maintained about the same loan amount or lowered their principal balance by paying in additional money at the closing table, about the same as last quarter.
•More than 95 percent of refinancing borrowers chose a fixed-rate loan.
•For all other (non-HARP) refinances during the fourth quarter, the median property value was up 5 percent between the dates of placement of the old loan and the new refinance loan. The prior loan had a median age of 5.6 years, down from 6.8 years in the fourth quarter of 2014.

Mortgage Credit Availability Increases in March

Posted in Atascadero, Central Coast Real Estate, Home loans, Home Prices, Paso Robles, Templeton, Time to buy a Home on April 29th, 2015 by Jim – Be the first to comment

Mortgage credit availability increased in March according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) which analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool.

The MCAI increased 2.3 percent to 121.4 in March. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of a loosening of credit. The index was benchmarked to 100 in March 2012.

“A number of factors contributed to a loosening of credit in March: Freddie Mac’s introduction of their 97 LTV program (Fannie Mae’s was implemented in December), additional loosening of parameters on jumbo loan programs, an increase in offerings of cash-out refinance loans, and continued expansion of the FHA streamline refinance and VA Interest Rate Reduction Refinance Loan (IRRRL) programs,” according to Mike Fratantoni, MBA’s Chief Economist. “As a result of these changes, all four component indexes of the MCAI increased last month: jumbo, conforming, conventional, and government. Although credit remains tight by historical standards, this increase in availability, coupled with low rates and job market strength, should lead to stronger home purchase activity this spring.”