Refinances Decline as Rates Stabilize The latest
weekly survey from the showed a decrease of 6.3% in mortgage loan
applications. Application volume compared to the previous year increased
by 16%. The interesting aspect of the latest weekly numbers is the
decline of 10.9% in the number of mortgage refinances. The percentage of
refinances to total mortgage applications declined by 2.9% to 53% of
total ...
CALABASAS HILLS, Calif., July 30 /PRNewswire-FirstCall/
-- PennyMac Mortgage Investment Trust , a newly-formed mortgage real
estate investment trust, today announced the pricing of the initial
public offering of 16,000,000 common shares at $20.00 per share.
PennyMac Mortgage Investment Trust has also granted the underwriters a
30-day option to purchase up to an additional 15% of the common shares
sold ...
Capstead's earnings for the second quarter of
2009 were higher than earnings for the first quarter as net interest
margins on the Company's interest-earning assets improved.
Interest-earning assets consist principally of a core portfolio of
residential adjustable-rate mortgage, or ARM, securities issued and
guaranteed by government-sponsored entities, either Fannie Mae or
Freddie Mac, or by an agency ...
This week, the Obama administration summoned
mortgage company executives to Washington to demand they move faster to
lower payments for homeowners sliding toward foreclosure. Treasury
officials called on the companies to hire and train more people quickly
to field applications for relief. But industry insiders and legal
experts say the limited capacity of mortgage companies is not the
primary factor ...
BOSTON _ Time was when everyone retired debt
free, or at least without a mortgage. Now many people retire while still
paying that monthly home-loan bill. But should you? The short answer,
according to a new Boston College Center for Retirement Research report,
is no, no, no. It's better to pay down your mortgage than to carry it
into retirement. Or at least it is if you have the money set ...
First-time homebuyers and those thinking about
refinancing are in a sweet place. Mortgage rates just fell for the third
straight week, according to mortgage finance firm Freddie Mac. 'The
credit markets are still tight, but they have loosened up significantly
from 90 days ago,' said Scott Norman, vice president of the Texas
Mortgage Bankers Association. So is this a good time to enter a mortgage
transaction? ...
(Linda Stern is a freelance writer. Any opinions
in the column are hers. You can follow Linda Stern's financial notes on
Twitter at www.twitter.com/lindastern) WASHINGTON (Reuters) - Not
everyone can get the special 'VIP' deal on a mortgage that Senate
Banking Committee Chairman Christopher Dodd, D-Connecticut, and Sen.
Kent Conrad, D-North Dakota, allegedly received. They got below-market
rates on ...
It was announced today that Gregg Marcus'
Somerset Mortgage Lenders were named #1 Bank on Twitter by Computer
Weekly! This article polled the top 10 banks actively participating in
twitter and chose the winner in relation to number of followers on the
popular social networking service. For Immediate Release: Melville, Long
Island's (NY) Melville/New York/USA (July 29, 2009) It was announced
today that ...
The theme of the week continues. Mortgage rates
move down, then move up, then down, then up again! Are you pulling your
hair out? Mortgage backed securities were again unable to hold onto
early morning gains following a less than expected read on Durable Goods
orders. A very disappointing Treasury auction is to blame for the
turnaround which moved MBS much lower on the day and sparked reprices
for ...
2009-07-30
16:17:06 MortgageNewsDaily
Positive Signs in West Point to U.S. Recovery
Jul 27, 2009
If you were drawing a real estate market trend line, you’d start in the west and go east, according to real estate commentator Marc Roth of Business Week.
Roth says the decline in the real estate market began in the West in 2007 with a 20 percent drop in transactions. The South, Midwest, and Northeast had milder declines of 13 percent, 11 percent, and 7 percent respectively that year.
In 2008, the South, Midwest, and Northeast were dropping 15 percent to 16 percent, with the West down only 1 percent, he pointed out.
Today, in mid-2009, the number of properties sold in the West is up 7 percent, while declines in the other regions have shrunk to between 3.5 percent and 7 percent.
Roth argues that since industry trends have historically moved from the west to the northeast, these numbers are evidence that the housing decline is about to be history in nearly every part of the country.
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Roth, who is president of Home Warranty of America, says, “I am putting my money where my opinions rest. … I believe these trends send a strong enough signal that I am adding staff to both my sales force and call center.”
Source: Business Week, Marc Roth (07/24/2009)
Economist Sees Signs of Housing Stabilization
Jul 25, 2009
Independent housing economist Tom Lawler, who has pointed out frequently that his dog Kita could have qualified for a mortgage at the height of the boom — despite having a low “Fido Score” — is arguing now that prices for low- and mid-range homes are stabilizing.
He says they will continue to do so as the foreclosure rate declines for middle-income home owners. Lawler attributes that to the “stickiness” of home prices, which he defines as slow to adjust downward because stable home owners don’t need or want to sell immediately.
In previous downturns, driven by regional unemployment, home prices fell slowly, Lawler says. This time he argues that things happened a lot faster because banks that owned foreclosed properties sold them aggressively. That forced prices down much faster than they fell in previous downturns.
Source: The Wall Street Journal, James R. Hagerty (07/22/2009)
Jul 21, 2009
Housing Experts: Now Is a Perfect Time to Buy
Don’t forget to remind potential buyers of something that is obvious to real estate professionals: Now is the time to buy, but that opportunity may be slipping away.
For people who have a job and money, a dream house is within reach, writes Marc Roth, founder of Home Warranty of America and a columnist for BusinessWeek.
He points out that mortgage rates remain low, prices are still at historic lows, and the government is offering incentives for first-time homebuyers.
He also adds that the inventory of homes to buy is still large, but it is shrinking. According to the NATIONAL ASSOCIATION OF REALTORS®, the housing inventory peaked in November 2008 at an 11-month supply. At the end of May 2009, it had fallen to a 9.6-month supply.
Roth says anyone who dallies will miss a good opportunity to buy a first home at a terrific price or go shopping for a move-up property that is a great buy.
Source: BusinessWeek.com, Marc Roth (11/17/2009)
First-Time Buyers: Hurry for $8,000 Tax Credit
Jul 15, 2009
It’s time to remind first-time home buyers that in order to qualify for the government’s $8,000 gift in the form of a tax credit, the deal must close by Dec. 1.
Buyers should have a purchase contract signed by early October, so they have 45 to 60 days to arrange financing and safely close the deal.
"There's not as much sand in the hourglass as we may think," said Jim Merrion, regional director at RE/MAX Northern Illinois.
Source: Chicago Tribune, Mary Ellen Podmolik (07/11/2009)
Tips for Parents Buying Homes for Children
Jul 06, 2009
With home prices low, now could be a good time for parents to give their children a home or even an investment property.
Here are some suggestions for managing the tax consequences from Mark Luscombe, tax analyst with Wolters Kluwer.
Give a cash gift. Individuals are allowed to gift up to $13,000 per person in a given year without incurring gift tax. That means a couple could give their offspring and spouse $52,000 in a single year to go toward a down payment.
Lend money. The government requires that family members meet or exceed minimum loan rates to avoid having the loan be considered a gift. The rates are currently low. One way to handle this is for parent to use the $52,000 gift exclusion to forgive both interest and principal.
Use a trust. Set up a qualified personal residence trust, or QPRT. You’ll need an attorney to handle this transaction, but in a nutshell, parents put the home they want to give their children into a trust. At the end of a pre-set term, the home passes to the children with no taxes due.
Source: The Wall Street Journal, Shelly Banjo (06/25/2009)
