Today’s News Synopsis:
A big story in the news is the latest Case-Shiller Index report showed that home prices continued to increase for the fifth straight month, although for the year they are still down 3.8%. Consumer confidence levels are at their lowest since the end of the Great Recession in 2009 with an almost 40% drop this month. Also, according to Housing Wire more changes are being made to HARP that will benefit borrowers and only allow a small percentage of Fannie Mae and Freddie Mac loans to be refinanced.
In The News:
CNN Money – “Home prices rise for 5th straight month” (10-25-11)
“Home prices continued a winning streak in August, the fifth straight month of price gains, but remain lower on a year-over-year basis. A gauge of home prices featuring 20 major cities, the S&P/Case Shiller index, reported Tuesday that prices rose 0.2% in August but were still down 3.8% year over year.”
Los Angeles Times – “Consumer confidence dips to recession level–Conference Board” (10-25-11)
“Consumer confidence plunged this month to levels not seen since the Great Recession ended in 2009, the Conference Board said Tuesday. After a slight improvement in September, the 100-point index dropped to 39.8 this month, reflecting increased pessimism as the economic recovery stalls.”
Bloomberg – “Fannie’s Squeeze Makes 4% Mortgage Too Good to Be True” (10-25-11)
“Government efforts to make lenders pay for soured mortgages may be keeping potential borrowers from record-low interest rates, slowing home sales and refinancing as banks tighten standards to avoid more demands for refunds.”
Housing Wire – “RBS: HARP 2.0 allows just 17% of GSE mortgages to refinance” (10-25-11)
“The Federal Housing Finance Agency plan to revamp the Home Affordable Refinance Program will result in just 17% of Fannie Mae and Freddie Mac 30-year loans qualifying for refinancing, according to one Royal Bank of Scotland (RBS: 8.05 -0.37%) analyst.”
O.C. Register – “September home sales revenue at four-year low” (10-25-11)
“The California Regional Multiple Listing Service reported that total dollars generated from the sale of all Orange County homes fell last month to the lowest level for a September since 2007.”
DS News – “FHFA’s Home Price Index Break Four-Month Run of Gains” (10-25-11)
“The monthly home price index from the Federal Housing Finance Agency (FHFA) has recorded its first decline since March. FHFA reported Tuesday that home prices in the U.S. fell 0.1 percent on a seasonally adjusted basis from July to August.”
NAHB – “NAHB Honors Building Systems Industry Leaders” (10-25-11)
“The National Building Systems Councils (BSC) of the National Association of Home Builders (NAHB) bestowed 23 achievement awards to leading manufacturers and builders in the systems-built industry with the 2012 Jerry Rouleau Awards for Excellence in Marketing and Home Design.”
Inman – “Regulators move to wind down mortgage insurer” (10-25-11)
“PMI Mortgage Insurance Co. — one of the nation’s top three issuers of private mortgage insurers before it was forced to stop writing new policies in August — has been taken over by regulators, who have slashed claim payments and are seeking to place the company in receivership.”
Rismedia – “Multiple Sings Point to Real Estate Rebound” (10-25-11)
“The past few weeks have showcased numerous singals that the real estate market is on the rise. Recently, we have reported statistics pointing to an industry turnaround, including a 15 percent rise in housing starts in September; a surge in builder confidence in October, an increase in mortgage applications and a slew of regional market improvements across the country.”
Looking Back:
California government agencies got rid of 37,300 jobs in September 2010. NAR reported existing home sales increased 10% the previous month. 47.5% of sales performed by agents in September 2010 were from distressed homes. U.S. home prices decreased 1.5% from 2009, according to CoreLogic.
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California Real Estate Investing News is a post from: The Norris Group