The Most Common Delays Toward Closing

DAILY REAL ESTATE NEWS | TUESDAY, JUNE 09, 2015

The majority of contracts – 64 percent -- are settled on time with no delays to closing, but some REALTORS® acknowledge facing delays or even having contracts terminated for numerous reasons, according to the latest REALTORS® Confidence Index Survey, a survey of more than 1,500 REALTORS®. Twenty-six percent of REALTORS® surveyed identified a delay to settlement, while 10 percent said they have even had a contract terminated prior to closing.

Read more: Don't Get Thrown by Doc Overhaul

About 60 percent of REALTORS® reported some type of issue on their contract in April. For example, 12 percent of REALTORS® identified a financing issue; 8 percent had home inspection problems surface; and 7 percent had an appraisal issue. Three percent of REALTORS® also identified issues buying/selling distressed property; titling and deed issues; or with contingencies stated in the contract.

"It is surprising that in a 'tight' and 'difficult' credit environment, only 12 percent of contracts that were reported to have settled or terminated had financing issues," economists at the National Association of REALTORS® report. "One explanation may be that potential home buyers are deciding to sit on the sidelines for now, so these buyers were not captured in the data."

Source:"64 Percent of Contracts Are Settled on Time," National Association of REALTORS® Economists' Outlook Blog (June 8, 2015)

www.KallhoffTeam.com

http://realtormag.realtor.org/daily-news/2015/06/09/most-common-delays-toward-closing

Fannie: Economy Likely to 'Spring Forward'

DAILY REAL ESTATE NEWS | TUESDAY, APRIL 21, 2015

Economic activity weakened in the first quarter of the year, mostly attributed to bad weather conditions across the Northeast and West Coast port disruptions. But the economy will likely gain momentum throughout the spring, which is expected to give a lift to the ongoing housing recovery, according to Fannie Mae’s Economic & Strategic Research Group.

Eye on the Economy

Fed Sets the Stage for Rate Hikes

Top Employment States and Metros

Responding to Buyers: 'What If We Had Another Recession?'

"We have downsized our first-quarter economic growth expectations in light of several transitory factors that weighed on consumption," says Doug Duncan, Fannie Mae's chief economist. "Although some momentum was lost in the first quarter as consumers remained cautious in their spending, perhaps putting an emphasis on repairing their personal balance sheets and replenishing savings, we expect that consumer spending will catch up during the second quarter and continue in subsequent months, supporting our forecast of 2.8 percent growth for the year. We believe this momentum will carry over into the housing market, as well, particularly if strong consumer income growth continues."

However, Fannie Mae economists caution that there could be some volatility, particularly with consumer spending and the financial markets, leading up to the Federal Reserve’s first expected rate hike in the coming months. 

Source: "Q1 Economic Growth Measures Downsized, But Expected to Spring Forward," Fannie Mae (April 20, 2015)

http://realtormag.realtor.org/daily-news/2015/04/21/fannie-economy-likely-spring-forward

www.KallhoffTeam.com

Mortgage Rates Hover Near 2015 Lows

DAILY REAL ESTATE NEWS | FRIDAY, APRIL 17, 2015

Fixed-rate mortgages were mostly unchanged this week, remaining near the lowest averages of the year, Freddie Mac reports in its weekly mortgage market survey.

Freddie Mac reports the following national averages with mortgage rates for the week ending April 16:

• 30-year fixed-rate mortgages: averaged 3.67 percent, with an average 0.7 point, rising slightly from last week's 3.66 percent average. Last year at this time, 30-year rates averaged 4.27 percent.
• 15-year fixed-rate mortgages: averaged 2.94 percent, with an average 0.5 point, rising from last week's 2.93 percent average. A year ago, 15-year rates averaged 3.33 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.88 percent this week, with an average 0.5 point, rising from last week's 2.83 percent average. Last year at this time, 5-year ARMs averaged 3.03 percent.
• 1-year ARMs: averaged 2.46 percent this week, with an average 0.4 point, holding the same average as last week. A year ago, 1-year ARMs averaged 2.44 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2015/04/17/mortgage-rates-hover-near-2015-lows

www.KallhoffTeam.com

Rates Haven’t Been This Low Since 2013

DAILY REAL ESTATE NEWS | FRIDAY, OCTOBER 24, 2014

The 30-year fixed-rate mortgage took another dip this week, staying below the 4 percent threshold and keeping borrowing costs at the lowest rate in more than a year. It marks the fifth consecutive week that mortgage rates decreased.

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 23:

• 30-year fixed-rate mortgages: averaged 3.92 percent, with an average 0.5 point, reaching a new low for the year and dropping from last week’s 3.97 percent. Last year at this time, 30-year rates averaged 4.13 percent.
• 15-year fixed-rate mortgages: averaged 3.08 percent, with an average 0.5 point, dropping from last week’s 3.18 percent average. A year ago, 15-year rates averaged 3.24 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.91 percent, with an average 0.5 point, dropping from last week’s 2.92 percent average. Last year at this time, 5-year ARMs averaged 3 percent.
• 1-year ARMs: averaged 2.41 percent, with an average 0.4 point, rising from last week’s 2.38 percent average. A year ago, 1-year ARMs averaged 2.60 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2014/10/24/rates-haven-t-been-low-2013

www.RebeccaSellsAZ.com

Markets Still Plagued by Inventory Crunch

DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 21, 2014

The number of homes for sale is still low in many markets: Supply nationwide in September was at five and a half months; most economists consider a normal level to be six to seven months. The supply of new homes was even lower, at nearly five months, according to realtor.com®'s September National Housing Trend Report.

Inventories Show Signs of Improvements

• Strengthening Job Market, Rising Inventories Lift Home Sales
• The Real Reason for an Inventory Shortage?
• Shadow Inventories Are Quickly Vanishing, Report Says

"To truly relieve the inventory shortage on a sustained basis, new-home construction needs to rise by at least 50 percent from the current levels," says Lawrence Yun, chief economist for the National Association of REALTORS®. 

The following markets have posted some of the biggest drops in listings year-over-year:

• Las Vegas: -37.9%
• San Jose, Calif.: -36.2%
• Columbus, Ohio: -29%
• Cincinnati: -26.5%
• Houston: -25.2%
• Washington, D.C.: -25%
• San Francisco: -23.4%
• Chicago: -22.8%

Meanwhile, in some markets, home buyers have found more choices in the past year. These markets have seen the biggest growth in inventory levels year-over-year:

• Honolulu: +27.5%
• Orlando, Fla.: +25.8%
• Miami: +22%
• Charleston, W.Va.: +20.1%

Nationwide, the median age of inventory fell slightly year-over-year in September due to the reduced number of homes on the market, according to realtor.com®. Homes spent about 90 days on the market in September, three days less than a year ago.

Also, median listing prices held steady for the fourth consecutive month, maintaining a 7.7 percent gain year-over-year. The median list price in September was $214,900 nationwide.

Source: realtor.com®'s September National Housing Trend Report

http://realtormag.realtor.org/daily-news/2014/10/21/markets-still-plagued-inventory-crunch

www.RebeccaSellsAZ.com

Landscaping Boosts Home Values Up to 12%

DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 14, 2014

You might want to take a closer look at your listing's curb appeal: Upgrading a home's landscape from average to excellent can raise its overall value by 10 percent to 12 percent, according toresearch from Virginia Tech.

Up Your Curb Appeal

• 6 Landscaping Tricks That Wow Buyers
• Landscaping That Sells
• Wintertime Tips to Keep Landscaping Safe

Researcher Alex X. Niemiera with the Department of Horticulture at Virginia Tech found that a $150,000 home with no landscaping could fetch an additional $8,300 to $19,000 by adding a landscape with color and large plants.

The value of landscaping differed greatly from state to state. For example, the change in value from a home with no landscape to well-landscaped ranged from 5.5 percent in Louisiana to 11.4 percent in South Carolina. Michigan homes saw the biggest difference in landscaping appeal, with a home's value being increased by 12.7 percent.

"The most preferred landscape included a sophisticated design with large deciduous, evergreen, and annual color plants and colored hardscape," according to Niemiera. Adding different plant sizes to a front yard, for example, can boost curb appeal, as well as mixing fruit trees and flowers for added color.

The following landscape elements were found to be most important to survey respondents:

• Design sophistication
• Plant size
• Diversity of plant material type

"Survey results showed that relatively large landscape expenditures significantly increase perceived home value and will result in a higher selling price than homes with a minimal landscape," Niemiera writes in the paper. "Design sophistication and plant size were the landscape factors that most affected value. The resulting increase in 'curb appeal' of the property may also help differentiate a home in a subdivision where house styles are similar and thereby attract potential buyers into a home. This advantage is especially important in a competitive housing market."

Source: “Does Landscaping Increase Your Homes Value?” Realty Times (Oct. 13, 2014)

http://realtormag.realtor.org/daily-news/2014/10/14/landscaping-boosts-home-values-up-12

www.RebeccaSellsAZ.com

Wave of Singles to Make Big Impact on Housing

DAILY REAL ESTATE NEWS | MONDAY, OCTOBER 13, 2014

Half of all American adults now live in one-person households, a rapidly growing number, according to the Bureau of Labor Statistics. The singles demographic is likely to reshape multifamily communities and single-family home designs going forward, according to Builder Online.

In 1976, only 37 percent of adults were single. As of August, that percentage has bloomed to 50.2 percent, or about 124.6 million singles. It marks the first time that single Americans make up the majority of the adult population since the government began tracking such data.

Get tips on how real estate pros can best serve this growing group.

“Thanks to the growth of single-adult households, floor plans will go from static to flexible as living arrangements change more frequently,” Susan Yashinsky, vice president of innovation trends for Waterford, Mich.-based Sphere Trending, LLC, predicts on Builder Online. “Analysts project that this group of adults will job hop more often, bring new types of living arrangements into the housing market (think friends buying homes together), and expect their environments to adapt to their frequently changing lifestyles as easily as picking a favorite Keurig coffee flavor.”

Affordability will be key, since single home buyers will have less income per household than dual-earner couples.

Also, “housing developments will need to embed elements of community that address the social aspects singles need, similar to what we have seen in multifamily new builds,” according to Builder. “Builders, developers, and designers who create housing for single consumers need to consider fresh concepts, such as communal sheds for lawnmowers and snow blowers, and even cars that can be rented as needed versus owned. Work/live spaces will evolve to reflect the growing number of entrepreneurs working from home. And, backyard cottages will bring solutions for related and/or unrelated adults sharing a single lot.”

Source: “More Americans Are Going Solo,” Builder Online (Oct. 6, 2014)

http://realtormag.realtor.org/daily-news/2014/10/13/wave-singles-make-big-impact-housing

www.RebeccaSellsAZ.com

Americans' Attitudes Improve on Housing

DAILY REAL ESTATE NEWS | WEDNESDAY, OCTOBER 08, 2014

Consumers’ optimism toward the housing market showed a slight rebound last month, with more people now saying it’s a good time to buy or sell a home, according to Fannie Mae’s September 2014 National Housing Survey, based on about 1,000 Americans’ attitudes on the housing market.

A Hopeful Trend

Consumers Aren't Losing Confidence in Home Prices

Homebuilders Pick Up Pace to Meet Shortages, Demand

Fannie: More Americans Say Buy, Sell Now

The share of consumers who say now is a good time to purchase a home rose to 68 percent in September, a four percentage point increase from August. Also, the share of Americans who said they’d prefer to buy a home on their next move rose to 66 percent, following a three-point drop the previous month. The percentage of those who reported now is a good time to sell grew to 39 percent. Those surveyed also were more upbeat about home prices rising in the next 12 months, with expectations of price gains of 2.2 percent, on average.

Consumers also showed greater optimism toward the overall economy, with 40 percent now saying the economy is on the right track, posting a five percentage point gain from last month.

"The September National Housing Survey shows a slight recovery in consumer housing sentiment after a two-month setback, bringing us back to the modestly positive trend we've seen over the last year," says Doug Duncan, senior vice president and chief economist at Fannie Mae. "It might be too late to save this year's home sales from posting the first decline in five years. However, the return to an upward trend in housing sentiment, combined with this month's positive news on the jobs front, suggests that a broad-based, albeit measured, housing recovery is on track to resume in 2015. The results of the past few months show that consumer optimism remains cautious and somewhat volatile, and we'll likely continue to see bumps on the housing recovery path reflected in our survey results."

Source: Fannie Mae

http://realtormag.realtor.org/daily-news/2014/10/08/americans-attitudes-improve-housing

www.RebeccaSellsAZ.com

Get a Discount on Your Mortgage

DAILY REAL ESTATE NEWS | THURSDAY, SEPTEMBER 18, 2014

Lending giants Bank of America Corp. and Citigroup reportedly will offer mortgages at discounted rates to stir more lending among low-income borrowers and those with subprime credit histories. The loans will be originated through a program by the Neighborhood Assistance Corp. of America, a national nonprofit group that primarily assists low- to moderate-income borrowers.

Credit Standards Easing

• For Some Borrowers, It's Now Easier to Get a Mortgage
• Wells Fargo Relaxes Standards for Jumbo Loans
• Lenders Show Divergence in Standards

Under the new program, the discounts, which will be offered on fixed-rate mortgages, will be greater than what banks usually reserve for borrowers with high credit scores, significant assets, and large down payments. To get the discount in the new loan program, the borrowers will have to pay mortgage points, which are upfront fees that lower the interest rate on a mortgage.

For example, if borrowers pay a mortgage point — which is equal to 1 percent of the total loan amount taken — they typically receive a discount of 0.25 percent on the mortgage interest rate. However, under the new loan assistance program, the banks will offer a 0.5 percent discount for a single mortgage point.

NACA, the originator of loans under the program, doesn't require borrowers to have down payments or to pay closing costs. It also approves borrowers for mortgages as soon as 12 months after a default on a loan. NACA conducts in-depth reviews of applicants' payment histories and requires income and asset documentation, according to CEO Bruce Marks.

The banks' move to work with NACA follows on the heels of a $16.65 billion settlement reached by Bank of America with government regulators in August, as well as a $7 billion settlement Citigroup reached in July. The settlements were reached following accusations that the banks sold risky mortgage securities during the run-up to the housing crisis. Neither bank admits to wrongdoing. But the settlements do require that the banks assist struggling home owners, such as lending to low-income borrowers.

The banks, however, say that their decision to issue NACA loans isn't related to the settlements.

Source: “Citigroup and Bank of America Offer Mortgages with Discounted Rates,” The Wall Street Journal (Sept. 16, 2014)

http://realtormag.realtor.org/daily-news/2014/09/18/get-discount-your-mortgage

www.RebeccaSellsAZ.com

Another Dip in Home Affordability, But...

DAILY REAL ESTATE NEWS | TUESDAY, SEPTEMBER 16, 2014

Housing affordability nationwide creeped lower once again, as home prices continue to outpace incomes, according to the National Association of REALTORS®' Monthly Housing Affordability Index. Nevertheless, price gains are slowing and mortgage rates are hovering near yearly lows, which is helping to keep homes more affordable to the average family.

A Growing Problem

• Most States Face Long-Term Affordability Crisis
• Brown, Castro Discuss Housing Affordability and Access
• Spring Sees Dive in Housing Affordability

The median single-family home price in July was $223,900, rising 5.1 percent year-over-year.

Affordability in July fell from the previous month in all regions, excluding the Midwest. NAR researchers note that the Midwest was the only region to experience a slight gain in affordability because of lower home prices and qualifying incomes.

However, affordability has fallen from year-ago levels in all regions, with the West seeing the largest decline — 4.6 percent.

"The rise in mortgage rates was modest this month, so purchases at this time are still favorable when you compare the locked-in monthly payment of a mortgage to the rise in rents," according to NAR's affordability analysis. "New-home construction and an increase in inventory during a time of low rates could lead to more manageable price growth and more sales."

Source: “The Latest Housing Affordability Index Data,” National Association of REALTORS® Economists’ Outlook Blog (Sept. 15, 2014)

http://realtormag.realtor.org/daily-news/2014/09/16/another-dip-in-home-affordability

www.RebeccaSellsAZ.com

Low Mortgage Rates Are Lingering

DAILY REAL ESTATE NEWS | FRIDAY, SEPTEMBER 12, 2014

The average percentage rates for fixed-rate mortgages inched up slightly this week, but continue to hover near yearly lows.

Mortgage Rates' Impact:

• These Analysts Are Still Bullish on Housing
• Economists Grow More Optimistic About Housing's Outlook
• Understanding and Combatting the Rate Lock-in Threat

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 11:

• 30-year fixed-rate mortgages: averaged 4.12 percent, with an average 0.5 point, up slightly from last week’s 4.10 percent average. Last year at this time, 30-year fixed-rate mortgages averaged 4.57 percent.
• 15-year fixed-rate mortgages: averaged 3.26 percent, with an average 0.5, rising from last week’s 3.24 percent average. A year ago, 15-year fixed-rate mortgages averaged 3.59 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.99 percent, with an average 0.5 point, rising from last week’s 2.97 percent average. Last year at this time, 5-year ARMs averaged 3.22 percent.
• 1-year ARMs: averaged 2.45 percent, with an average 0.4 point, rising from last week’s 2.40 percent average. A year ago, 1-year ARMs averaged 2.67 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2014/09/12/low-mortgage-rates-are-lingering

www.RebeccaSellsAZ.com

FHFA Seeks to Expand Mortgage Access

DAILY REAL ESTATE NEWS | TUESDAY, SEPTEMBER 02, 2014

The Federal Housing Finance Agency announced that it wants housing finance giants Fannie Mae and Freddie Mac to provide greater support to low-income mortgage borrowers and refinancers.

FHFA, which is the regulator for Fannie Mae and Freddie Mac, outlined goals for 2015-2017 aimed at advancing that goal. It wants to ensure that low-income families account for 23 percent of the GSE’s purchases of single-family home mortgages. Also, the agency seeks to ensure that the firms raise the share of their purchases that back mortgages in low-income areas with large minority populations. FHFA has charged the firms with raising the share of their mortgage refinance operations that target low-income Americans, Reuters reports.

Find out why first-time and low-income mortgage borrowersmay have an easier time qualifying for a Federal Housing Administration loan.

More specifically, FHFA has charged Freddie Mac with gradually expanding the number of loans it backs for low-income multifamily buildings, such as apartment buildings. It wants Freddie Mac to expand such loans to 230,000 by 2017; currently it’s target for this year is 200,000.

Some lawmakers may view FHFA’s move as controversial, with critics saying that boosting the support of mortgage access for low-income borrowers is what led to the housing bubble that burst in 2006, Reuters reports.

Source: “U.S. Housing Regulator Seeks More Support for Poor Borrowers,” Reuters (Aug. 29, 2014)

http://realtormag.realtor.org/daily-news/2014/09/02/fhfa-seeks-expand-mortgage-access

www.RebeccaSellsAZ.com

More Households Optimistic About Home Prices, Finances

DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 28, 2014

The majority of households believe home prices will rise within the next 12 months, according to the Federal Reserve’s newly released Report on the Economic Well-Being of U.S. Households. The survey is based on more than 4,000 American responses from 2013 about their household finances, including housing.

Public Perceptions:

• Survey: 70% Say Housing Crisis Isn't Over
• Young Renters Say They Want to Own, But ...
• Consumers More Optimistic About Home Values

“The outlook for the housing market among home owners appeared generally positive, as many home owners expected house prices in their neighborhoods to increase,” the report notes.

Twenty-six percent of home owner respondents say they expect an increase in their home value by 5 percent or less, and 14 percent expect an increase in values of greater than 5 percent. Less than 10 percent of home owners expect home prices in their neighborhoods to decline over the 12 months, according to the survey.

Many home owners are still banking on home prices. After all, 46 percent of households believe the value of their home is lower than the value in 2008, according to the report. On the other hand, 27 percent of households felt their home’s value is higher than in 2008; 20 percent say their home’s value is likely about the same; and 7 percent say they weren’t sure.

Overall, the survey found that while many households are faring well financially, a great deal are still showing signs of financial stress. More than 60 percent of respondents said that their families were either “doing OK” or “living comfortably” financially, while one-fourth of respondents said they were “just getting by” financially and 13 percent said they were struggling. The Great Recession is still being felt by many: 34 percent reported they were somewhat worse off or much worse off financially than they had been five years earlier in 2008.

Many renters expressed an interest in home ownership, but said they are facing several barriers, such as saving for a down payment and the inability to qualify for a mortgage.

For example, 49 percent of renters in the 18-to-29 age group say the biggest reason why they rent rather than own a home is because they cannot afford the down payment; it was the age group that was most likely to report down payment woes. Meanwhile, 45 to 59 year old renters were the largest share of renters to say they could not qualify for a mortgage and that’s why they are renting. 

Source: Federal Reserve

http://realtormag.realtor.org/daily-news/2014/08/28/more-households-optimistic-about-home-prices-finances

www.RebeccaSellsAZ.com

Commercial Sectors Surge on Improved Economy

DAILY REAL ESTATE NEWS | WEDNESDAY, AUGUST 27, 2014

After several false starts, the economy is finally gaining ground, and stronger growth is boosting the outlook for all of the major commercial real estate sectors, according to the National Association of REALTORS®’ quarterly commercial real estate forecast.

A Bright Spot for Commercial

• NAR: Commercial Recovery Slow But Steady
• Big Year Predicted for Commercial Success
• Commercial Market Posts Gains Across the Board

“The job market has been the bright spot of the economy this year, as employers are feeling more confident about their growth prospects and adding to their payrolls,” says Lawrence Yun, NAR’s chief economist. “This gradual turnaround from being overly cautious to more optimistic should slightly boost the demand for leasing and purchase activity as well as new-construction projects in the upcoming year. … The economy can handle the inevitable rise in interest rates as long as commercial rents steadily rise to generate investor returns.”

Here’s an overview of the four major commercial real estate sectors from NAR’s latest quarterly Commercial Real Estate outlook.

Office Markets

Vacancy rates for the office market is expected to remain unchanged at 15.7 percent in the third quarter of 2015. Office rents are forecasted to rise 2.6 percent this year and 3.2 percent next year.

Markets with the lowest office vacancy rates (third quarter 2014): Washington, D.C. (9.3%); New York City (9.6%); Little Rock, Ark. (11.5%); San Francisco (12.4%); and New Orleans (12.7%).

Industrial Markets

The industrial vacancy rate is projected to drop from 8.9 percent in the third quarter of this year to 8.5 percent in the third quarter of 2015. Annual rents are expected to rise 2.4 percent this year and 2.8 percent next year.

Markets with lowest industrial vacancy rates: Orange County, Calif. (3.5%); Los Angeles (3.8%); Seattle (5.9%); Miami (6.1%); and Palm Beach, Fla. (6.6%). 

Retail Markets

The retail vacancy rate is forecasted to fall from 9.8 percent currently to 9.6 percent in the third quarter of 2015. Retail rents are projected to increase 2 percent this year and another 2.4 percent next year.

Markets with the lowest retail vacancy rates: San Francisco (3.5%); Fairfield County, Conn. (3.9%); San Jose, Calif. (4.6%); Long Island, N.Y. (5.2%); and Orange County, Calif. (5.3%).

Multifamily Markets

The apartment rental market is expected to see vacancy rates decline from 4.1 percent today to 4 percent in the third quarter of 2015. (Vacancy rates below 5 percent are considered a landlord’s market, and the high demand often justifies the higher rents.) Average apartment rents are forecasted to increase 4 percent this year as well as in 2015.

“New construction for multifamily housing has picked up in recent months and looks to be alleviating the short supply,” says Yun. “However, the demand for rental housing continues to show strength. As a result, rent growth will outpace broad consumer inflation in upcoming years.”

Markets with lowest multifamily vacancy rates: Orange County, Calif. (2.2%); Providence, R.I. (2.2%); Sacramento, Calif. (2.2%); New Haven, Conn. (2.5%); and Hartford, Conn. (2.5%). 

Source: National Association of REALTORS®

http://realtormag.realtor.org/daily-news/2014/08/27/commercial-sectors-surge-improved-economy

www.RebeccaSellsAZ.com

Wells Fargo Relaxes Standards for Jumbo Loans

DAILY REAL ESTATE NEWS | THURSDAY, AUGUST 07, 2014

Wells Fargo & Co., the nation's largest mortgage lender, is easing some of its lending standards for the high-priced "jumbo mortgages" that it acquires from other banks too large to receive guarantees from government-backed mortgage companies, like Fannie Mae and Freddie Mac, Reuters reports.

Are Banks Loosening Up?

• Lenders Show Divergence in Standards
• Are Mortgages Becoming Easier to Obtain?
• It's Taking Less to Get an FHA Loan

"The purchase market is softer than we thought that it would be," John Shrewsberry, Wells Fargo's chief financial officer, told analysts on a July conference call. "We're not seeing breakout returns to pre-crisis levels of enthusiasm around home ownership."

To make up for the industry-wide drop in mortgage volumes, Wells Fargo began to lower the minimum credit score on fixed-rate jumbo mortgages from 720 to 700 in late July. Wells Fargo also says it's more willing to purchase jumbo loans from other lenders that go toward the purchase of a second home.

On the refinancing front, Wells Fargo officials say they will purchase mortgages where the balance exceeds the size of the borrower's previous loans, also known as "cash-out refinancing," Reuters reports.

The latest loosening of credit comes a few months after the bank announced it would begin to issue home loans to borrowers with credit scores as low as 600 who were eligible for insurance with the Federal Housing Administration. Previously, the bank required a minimum credit score of 640 on FHA-insured loans.

Source: “Wells Fargo Loosens Standards for Jumbo Mortgages,” Reuters (Aug. 6, 2014)

http://realtormag.realtor.org/daily-news/2014/08/07/wells-fargo-relaxes-standards-for-jumbo-loans

www.RebeccaSellsAZ.com

Mortgage Rates Hover Near Yearly Lows

DAILY REAL ESTATE NEWS | FRIDAY, JULY 25, 2014

Fixed-rate mortgages remained mostly unchanged this week, with borrowing costs just slightly above their lows for 2014, Freddie Mac reports in its weekly mortgage market survey.

Are low interest rates spooking your potential move-up buyers? Read this:Understanding and Combatting the Rate Lock-in Threat

Freddie Mac reports the following national averages with mortgage rates for the week ending July 24:

• 30-year fixed-rate mortgages: averaged 4.13 percent, with an average 0.6 point, unchanged from last week. Last year at this time, 30-year rates averaged 4.31 percent.
• 15-year fixed-rate mortgages: averaged 3.26 percent, with an average 0.6 point, rising from last week’s 3.23 percent average. A year ago, 15-year rates averaged 3.39 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.99 percent, with an average 0.5 point, rising from last week’s 2.97 percent average. Last year at this time, 5-year ARMs averaged 3.16 percent.
• 1-year ARMs: averaged 2.39 percent, with an average 0.4 point, unchanged from last week. A year ago, 1-year ARMs averaged 2.65 percent.

Source: Freddie Mac

http://realtormag.realtor.org/daily-news/2014/07/25/mortgage-rates-hover-near-yearly-lows

www.RebeccaSellsAZ.com