Markets & Finance
-----------------------------------------------------In June, housing demand is high, inventory is low, credit is still tight and home prices are up. Median days on the market is 46. Median home price reached $192,800.
| Mortgage rates | 30-year fixed | 15-year fixed | 5/1 ARM | 30-year jumbo |
|---|---|---|---|---|
| 6/12/2013 | 4.14 | 3.32 | 3.0 | 4.32 |
| 6/5/2013 | 4.1 | 3.28 | 2.93 | 4.27 |
| 5/29/2013 | 3.99 | 3.21 | 2.97 | 4.2 |
| 5/22/2013 | 3.74 | 2.97 | 2.7 | 3.99 |
| 5/15/2013 | 3.71 | 2.92 | 2.68 | 3.99 |
| 5/8/2013 | 3.6 | 2.82 | 2.64 | 4.0 |
| 5/1/2013 | 3.52 | 2.75 | 2.63 | 3.93 |
| 4/24/2013 | 3.57 | 2.8 | 2.65 | 3.98 |
| 4/17/2013 | 3.61 | 2.85 | 2.66 | 3.98 |
| 4/10/2013 | 3.64 | 2.89 | 2.7 | 4.03 |
| 4/3/2013 | 3.73 | 2.95 | 2.72 | 4.07 |
Read more: http://www.bankrate.com/finance/mortgages/current-interest-rates.aspx#ixzz2WDFi13CR
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Atlanta needs developed lots for builders. Know any? Not having developed lots will slow down construction and therefore housing inventory.
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Nat'l Real Estate Post:
It's Friday which means for the overachieving producers it's another day of work tomorrow. For everyone else, enjoy the weekend.
Foreclosures are up because now banks think they can get a decent price for the property and it may not last. Foreclosure activity is up 11% from last month. N. Carolina is up 60%, Oregon up 47%, Washington and Illinois up 44%, Colorado 23% and Michigan up 19%.
The US Senate is trying to pass a bill which would cap lending to 15% of the bank's assets. Currently, Wells Fargo is at 17.8%. They can reduce their lending to 15% by stopping lending or raising rates or only taking the very best buyers.
FHA has paid back $55.1 million of the $187 million they owe. However, the Treasury is taking all the profits to pay the dividends on the stocks owned by consumers, so the debt stays intact. Sounds like Tony Soprano.
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Though overall new home sales are expected to continue rising in future months, rising input costs are a concern. Building material and labor costs are expected to inflate. As housing starts accelerate, both labor and construction material costs would continue to experience upward pricing pressure, curbing profitability of homebuilders. Moreover, difficulty in obtaining construction loans and tightened lending standards are making it tough for homebuilders, especially the smaller ones, to effectively respond to increasing demand. -- Zach's Equity Research
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The mortgage bond investor community is highly opposed to the proposed use of eminent domain to seize mortgages. Nonetheless, the concept is spreading and three Congressmen went on the record to say they agree with investors.
"We are concerned that the proposed use of eminent domain would slow the return of private capital to the housing finance system, and threaten our fragile housing recovery," write California House Republicans John Campbell, Gary G. Miller and Ed Royce in a letter to Housing and Urban Development Secretary Shaun Donovan. --
By Jacob Gaffney in HousingWire
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Nat'l Real Estate Post:
New York Fed Reserve chairman Robert Hawkit wants eminent domain. He says local municipalities should seize the mortgages and restructure the loans to purchase the late mortgages at market value and restructure the loan with the home owner. But in three months, 1/10 of the underwater homes rose out of the water. So maybe inaction is the best course of action. What are the unforeseen consequences? This would be the seizure of thousands of individual mortgages and at who's value? Who determines the value? Would the mortgage holder be able to rebut it? This might have been a good idea two or three years ago, but right now with rising home prices, it is outdated.
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