In­di­ca­tors point­ing to hous­ing re­cov­ery

The Palm Beach Post - Residences - - Southern Palm Beach County - Jim Woodard

There are grow­ing in­di­ca­tions that home prices are in an up­ward mode and the hous­ing re­cov­ery is well un­der way. Home prices rose 1.8 per­cent in May com­pared to the pre­vi­ous month, ac­cord­ing to a re­port from CoreLogic. This is the third con­sec­u­tive monthly in­crease.

CoreLogic’s new pend­ing-home-sale study is in­di­cat­ing that prices will rise an­other 1.4 per­cent from May to June, it was re­ported.

“The re­cent up­ward trend in U.S. home prices is an en­cour­ag­ing sig­nal that we may be see­ing a bot­tom­ing of the hous­ing down cy­cle,” said Anand Nal­lathambi, pres­i­dent and chief ex­ec­u­tive of­fi­cer of CoreLogic, as re­ported in Na­tional Mort­gage News.

The CEO also noted that the tight in­ven­tory of homes for sale is con­tribut­ing to mod­est price gains na­tion­wide and that, even in the hard­est-hit mar­kets, home prices are ris­ing.

CoreLogic Chief Econ­o­mist Mark Flem­ing pointed out that price ap­pre­ci­a­tion of lower-priced homes is re­bound­ing more quickly than those of up­per-end homes.

“Home prices be­low 75 per­cent of the na­tional me­dian in­creased 5.7 per­cent from a year ago, com­pared to a 1.8 per­cent in­crease for homes priced 125 per­cent or more above the me­dian,” he said.

Is con­sumer con­fi­dence in the hous­ing mar­ket slip­ping down­ward?

No; it’s ris­ing, ac­cord­ing to a June sur­vey by Fannie Mae’s “Na­tional Hous­ing Sur­vey.” Ac­cord­ing to the sur­vey, the av­er­age home price ex­pec­ta­tion rose to 2 per­cent in June, up 0.6 per­cent from May and the high­est recorded value since the sur­vey be­gan two years ago.

In ad­di­tion, 35 per­cent of re­spon­dents ex­pect that home prices will go up in the next year — the high­est level recorded since the sur­vey’s in­cep­tion.

When will mort­gage rates bot­tom out?

Ex­perts have been say­ing for months that those in­ter­est rates have al­ready reached bot­tom, yet they keep drop­ping to new record low lev­els. Ac­cord­ing to Fred­die Mac’s most re­cent sur­vey, fixed rates are con­tin­u­ing to fall, prob­a­bly due to a slow­down in con­sumer spend­ing and in the man­u­fac­tur­ing in­dus­try.

The 30-year, fixe­drate mort­gage has fallen to 3.62 per­cent at this writ­ing. Dur­ing the pre­vi­ous week, it av­er­aged 3.66 per­cent. The 15-year fixed-rate mort­gage dropped to 2.89 per­cent.

Has the flood­in­sur­ance plan been ex­tended?

Yes, the five-year reau­tho­riza­tion of the Na­tional Flood In­sur­ance Pro­gram (NFIP) was re­cently passed as part of a trans­porta­tion-fund­ing bill. It was signed into law by the pres­i­dent. The leg­is­la­tion ex­tends NFIP author­ity through Sept. 30, 2017.

“We are pleased that Congress has ap­proved a long-term reau­tho­riza­tion of the Na­tional Flood In­sur­ance Pro­gram, which en­sures ac­cess to af­ford­able flood in­sur­ance for mil­lions of home and busi­ness own­ers across the coun­try,” said Mau­rice “Moe” Veissi, pres­i­dent of the Na­tional As­so­ci­a­tion of Real­tors.

“The five-year reau­tho­riza­tion will end the un­cer­tainty of NFIP stop- gap ex­ten­sions and shut­downs and will help bring sta­bil­ity to real es­tate mar­kets.”

What is “dual track­ing” in the mort­gage in­dus­try?

Dual track­ing is a com­mon but

When buy­ing a home, would you know what to do if: Your fi­nanc­ing fell through on the day of clos­ing; your home in­spec­tor found a ter­mite in­fes­ta­tion; or the neigh­bors had, some time ear­lier, built a wall on what is about to be­come your prop­erty?

A 2007 sur­vey by the Na­tional As­so­ci­a­tion of con­tro­ver­sial prac­tice in which a mort­gage lender con­tin­ues to pur­sue fore­clo­sure, even though the home­owner is ap­ply­ing for a mort­gage mod­i­fi­ca­tion.

“Lenders say the prac­tice pro­tects their in­vest­ment if a home­owner doesn’t qual­ify for new loan terms,” re­ported The Los Angeles Times. “Con­sumer ad­vo­cates say it dis­cour­ages Real­tors® re­ported that 98 per­cent of home buy­ers ranked hon­esty and in­tegrity as a “very im­por­tant” fac­tor when choos­ing a real es­tate pro­fes­sional. Also, ac­cord­ing to that sur­vey, 82 per­cent of sell­ers used an agent who pro­vided a broad range of ser­vices and man­aged most as­pects of the sales trans­ac­tion.

A Re­al­tor® is a real es- home­own­ers and leads to un­in­tended fore­clo­sures. A coali­tion of fed­eral reg­u­la­tors has or­dered ma­jor banks and mort­gage ser­vicers to halt fore­clo­sure when home­own­ers qual­ify for loan mod­i­fi­ca­tions.

Sev­eral states are push­ing for state laws that would limit or elim­i­nate the prac­tice. tate agent who be­longs to the Na­tional As­so­ci­a­tion of Real­tors®, who must com­ply with its es­tab­lished Code of Ethics, and who is com­mit­ted to fur­ther­ing his or her knowl­edge of the in­dus­try.

To make sure you are work­ing with a Re­al­tor®, look for the fed­er­ally reg­is­tered mem­ber­ship mark — Re­al­tor® — or call your lo­cal Real­tors® as­so­ci­a­tion.

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