Indicators pointing to housing recovery
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.