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Mortgage Rates Down This Week Amid Concerns Over Labor Market

2009-07-10T08:11:00.001-04:00

The 30-year fixed-rate mortgage (FRM)averaged 5.20 percent with an average 0.7 point for the week ending July 9, 2009, down from last week when it averaged 5.32 percent. Last year at this time, the 30-year FRM averaged 6.37 percent.

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Citizens Property Insurance board approves 10% rate hike

2009-07-09T08:39:00.001-04:00

Ending a three-year rate freeze, the board of state-run Citizens Property Insurance approved raising rates for most policyholders by 10 percent next year. After a heated debate Wednesday, Citizens also agreed to cap any rate cuts at 10 percent as well, rejecting a committee recommendation that rates remain frozen for those customers. Only about 80,000 of Citizen's 1 million policies, including some in Pinellas County, would qualify for rate cuts based on computer models used by the insurer.

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New Chinese drywall worry: Radiation

2009-07-08T08:58:00.002-04:00

The latest concerns about Chinese drywall focus on reports that radioactive substances may have been included in the imported product. The Los Angeles Times ran an investigative story Tuesday, revealing that phosphogypsum, a radioactive byproduct of phosphate fertilizer production, is commonly used in some Chinese-made drywall. Phosphogypsum is found in abundance in Florida, where the bulk of Chinese drywall complaints have been logged. A white powdery substance, it is piled along the highways of Central Florida’s Bone Valley-Fort Meade area, where fertilizer is made. It is different from normal gypsum, a mineral-like substance that can come from mines or as a residue from coal-fired power plant air pollution scrubbers. But, phosphogypsum is banned as a building product in drywall in the U.S. So far, limited tests by state and federal authorities have not found it in any problem drywall.

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Lenders Avoid Loan Modifications

2009-07-08T08:54:00.001-04:00

The Obama administration's $75 billion foreclosure prevention effort is unlikely to succeed because mortgage lenders cannot turn a profit on modified loans, concludes a new report by the Federal Reserve Bank of Boston. Analyzing 665,410 loans originated between 2005 and 2007 that subsequently became seriously delinquent, the Boston Fed found that only 3 percent of borrowers had their loans modified to lower monthly payments, and about 5.5 percent received workouts that did not result in lower payments. Also, up to 45 percent of approximately 150,000 borrowers who received some kind of aid ended up in arrears again, but about 30 percent of delinquent borrowers were able to fix their problems without help from their lenders.

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Tampa Ranks No. 5 On List Of Cities Most Likely To See Home Prices Drop

2009-07-08T08:52:00.002-04:00

Mortgage insurer PMI Group predicts that home prices will fall through the first quarter of 2011 in about 30 of the country’s 50 largest metropolitan areas. “The housing market has been hit by a demand shock of high unemployment and a supply shock of distressed foreclosure sales,” LaVaughn Henry, senior economist at PMI. The areas PMI says have the highest probability of lower prices in 2011 are:

* Miami
* Fort Lauderdale
* West Palm Beach, Fla.
* Orlando
* Tampa, Fla.
* Jacksonville, Fla.
* Riverside, Calif.
* Los Angeles
* Santa Ana, Calif.
* Sacramento
* San Diego
* Las Vegas
* Phoenix
* Providence, R.I.
* Detroit

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Another Rash of Foreclosures Coming Soon

2009-07-06T17:51:00.000-04:00

Some economic observers are predicting another wave of foreclosures later this summer or in the fall. That’s because lenders that have held off on foreclosures as part of President Obama’s plan will now move forward aggressively to clear the backlog of troubled mortgages. Rising foreclosures will further depress home values, says Mark Zandi of Moody's Economy.com, who calculates that 15.4 million homeowners—one in five of those with first mortgages—will be underwater. Seth Wheeler, a senior adviser to Treasury Secretary Timothy Geithner, says the government is “unlikely to implement another moratorium.” But Wheeler said the government plans to put in place some programs that encourage lenders to try some alternatives to foreclosure.

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Lowball appraisals used as comps distort property values

2009-07-05T09:55:00.000-04:00

It's by far the hottest controversy in real estate this summer, and it could directly affect the value of your house — probably negatively — by tens of thousands of dollars. The issue concerns lowballed valuations and the new rules guiding appraisers in both price-depressed and rebounding markets. Complaints about lowballed appraisals — from builders, realty agents, consumers and mortgage companies — have erupted since May 1, when government-sponsored Fannie Mae and Freddie Mac put their new appraisal rules into effect nationwide. Critics charge the new system is fostering the use of appraisers willing to work for low fees — sometimes 50 percent below previous standards — and who are willing to conduct home appraisals far outside their typical areas of activity.

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Obama's Housing Rescue Expands: 6 Things to Know

2009-07-05T09:29:00.000-04:00

In a move that suggests its initial rescue plan was insufficient, the Obama administration yesterday announced plans to widen the eligibility parameters of a key housing initiative. The change would allow borrowers with mortgages valued at 125 percent of their home's worth to refinance into more affordable loans. Previously, only borrowers with so-called loan-to-value ratios of 105 percent or less could do so. The mortgage refinancing program is part of the president's two-pronged plan to pull the nation out of its worst housing slump since the Great Depression. Coupled with efforts to modify troubled mortgages, the government believes its Making Home Affordable initiative can reach up to 9 million American homeowners. "The president's Making Home Affordable plan is already helping far more families than any previous foreclosure initiative, and with today's announcement we will extend its reach still further," Housing and Urban Development Secretary Shaun Donovan said. Here are six things you need to know about the expanded rescue:

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Long Term Mortgage Rates Drop In Latest Weekly Survey

2009-07-03T14:25:00.001-04:00

The 30-year fixed-rate mortgage (FRM) averaged 5.32 percent with an average 0.7 point for the week ending July 2, 2009, down from last week when it averaged 5.42 percent. Last year at this time, the 30-year FRM averaged 6.35 percent.

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Tampa Ranks No. 9 For Sweatiest Cities

2009-07-02T08:06:00.001-04:00

Tampa is one of the 10 sweatiest cities in the United States, not just in 2009 but for “all time,” says Old Spice, a division of Proctor & Gamble. Old Spice named Tampa no. 9 on its Top-20 All-Time Sweatiest Cities list. Tampa came in at No. 8 in 2008. Tampa is sweatier than No. 10 Orlando but drier than No. 7 Miami and No. 8 West Palm Beach, the ranking shows. Florida is home to 25 percent of the Top-20 All-Time Sweatiest Cities, the list showed. Phoenix, which was named the sweatiest city in 2008, was crowned the "Undisputed Sweatiest City."

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Pending Home Sales Rise Again

2009-07-02T08:04:00.000-04:00

Pending home sales show a sustained uptrend, rising for four consecutive months with very favorable housing affordability and a first-time buyer tax credit boosting activity, according to the National Association of REALTORS®. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April, and is 6.7 percent higher than May 2008 when it was 85.0. The last time there were four consecutive monthly gains was in October 2004.

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Florida’s Quality of Life Means ‘Home Sweet Home,’ Says Florida Association of Realtors®

2009-07-02T08:03:00.001-04:00

What does Florida have to offer? Pick up a travel brochure and some benefits are clear: Beautiful beaches. Miles of scenic parks and nature preserves. Oceans, rivers and lakes offering boating, fishing, swimming and other water recreation. A rich and varied history, which includes the city of St. Augustine, the oldest permanent European settlement in the mainland United States. Unique entertainment parks and other family-friendly attractions. Cultural activities that offer residents and visitors fine theater, music, dance and arts events. Then there is Florida’s climate featuring an average annual high of 81 degrees Fahrenheit and an average annual low of 60 degrees, giving the Sunshine State its well-known nickname and reputation.

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New loan rules will allow more homeowners to refinance mortgages

2009-07-02T07:58:00.000-04:00

The Obama administration eased eligibility rules Wednesday for its Home Affordable Refinance program, lifting the maximum loan-to-value ratio to 125% from 105%. The shift, which regulators had hinted was coming, is aimed at making refinancing available to more people whose homes are worth less than their mortgages. HARP is open to homeowners whose loans are owned or guaranteed by Fannie Mae or Freddie Mac, the mortgage finance giants now under government control. It covers first mortgages only. The refinance program, launched this year, has gotten off to a slow start, in part because the maximum 105% loan-to-value ratio was too low to include many homes that have fallen sharply in value. The new 125% maximum means an eligible homeowner with a $375,000 mortgage can refinance if his or her house is worth at least $300,000. But the borrower still must be able to afford the new loan. Income requirements are an increasing problem as unemployment soars and many workers are dealt pay cuts.

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Bill Seeks to Suspend Appraisal Code

2009-07-01T08:52:00.001-04:00

U.S. Reps. Travis Childers (D-Miss.) and Gary Miller (R-Calif.) have teamed up to champion a bill that would put a moratorium on the new Home Mortgage Valuation Code of Conduct. HVCC is an agreement between Fannie Mae, Freddie Mac, and the New York State Attorney General that went into effect earlier this year with the aim of improving the accuracy of appraisals, although it's come under criticism in the real estate industry for causing its own problems. Although the agreement involves the New York AG, it's being applied nationwide to all the mortgages handled by Fannie Mae and Freddie Mac. The bipartisan legislation directs the Federal Housing Finance Agency, which is the conservator of the two secondary mortgage market companies, to suspend the code for 18 months. Among other things, the code has been criticized by the National Association of Mortgage Brokers for delaying residential property closings and costing its members business at a critical time. Group members also are up in arms about having to pay high fees to appraisal management firms.

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US home prices post 18.1 percent annual drop in April

2009-06-30T09:59:00.001-04:00

There is a clear trend home prices declines are moderating — another sign the beleaguered housing market is stabilizing, according to data released Tuesday. While the Standard & Poor's/Case-Shiller index of 20 major cities tumbled by 18.1 percent, it marked the third straight month the decline was not a record. And yearly losses in 13 metros improved compared to March. "The stock market bottomed in March and measures of consumer confidence have turned upward. This report shows that these better spirits are also appearing in the housing market," said David M. Blitzer, chairman of the S&P index committee. Eight of the 20 metro posted price gains from March, with Dallas recording the largest increase at 1.7 percent. And every city except Charlotte showed some kind of improvement month-over-month.

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Data suggest more moving out of Fla.

2009-06-29T15:15:00.002-04:00

Once the dream of many a retiree and young person seeking to live in paradise, the prospect of living in Florida seems to be less attractive in the current economic downturn. Data from moving companies and the Florida Department of Motor Vehicles suggest that fewer people are moving to the state and, at the very least, an equal number of residents are moving out. Atlas Van Lines moved a total of 5,277 households into the state in 2008, but moved out 6,367 households, according to the moving company’s migration study. Those numbers compare with the 9,069 households moving into Florida and the 7,180 moving out in 2004, when the state’s real estate market was just heating up.

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Meltdown 101: Where do home prices really stand?

2009-06-29T10:46:00.001-04:00

Is the historic U.S. housing market crash close to being over, or is the end still far, far away? While sales finally seem to be stabilizing, prices are still are likely to keep sinking well into next year and maybe longer. Prices have been cut in half in Las Vegas and Phoenix, according to one popular home price measurement. But statistics like these mask the many complexities involved in trying to measure U.S. home prices. Every home price gauge captures a somewhat different slice of the housing market, even when they all depict the same general trend. Also, all real estate is local — some neighborhoods have largely escaped the housing bust, and price declines can vary sharply within a single metro area. In many parts of the country, faraway suburbs, where many buyers moved into new subdivisions and stretched to qualify for mortgages, have been hit harder than established, wealthy enclaves.

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State Farm clients needn't panic yet

2009-06-26T08:37:00.002-04:00

When Gov. Charlie Crist rejected a bill Wednesday that would have let national companies charge whatever they wish for property insurance in Florida, he said that it lacked enough consumer protections. That veto, however, ensures that State Farm Florida will abandon the state's property insurance market, company officials said. What happens now for State Farm's policyholders? Nothing - yet. Early this year, after Insurance Commissioner Kevin McCarty rejected the company's request to raise its rates 47 percent, State Farm announced its decision to leave. The company submitted an exit plan, which McCarty rejected, calling it "hazardous" for policyholders. The insurer then filed an appeal with the state Department of Administrative Hearings and still is negotiating with McCarty on a withdrawal strategy. Until the litigation or negotiations conclude, the company cannot take any action to withdraw.

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US New-Home Sales Nearly Flat in May

2009-06-26T08:31:00.002-04:00

Sales of new homes were virtually flat in May, compared to April, but down about one-third from the number of sales during the same period a year ago, the Commerce Department reported Wednesday. Home sales slid .6 percent to a seasonally adjusted annual rate of 342,000. The number of new homes for sale declined 2.3 percent to 292,000, a 10.2-month supply. The decline in new-home sales was entirely focused on the South, where sales fell 8.5 percent for the month. Meanwhile, sales of new homes gained 1.3 percent in the West and posted double-digit gains of 28.6 percent and 18.6 percent in the Northeast and Midwest, respectively.

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Mortgage Rates Mostly Flat Amid Mixed Economic News

2009-06-26T08:11:00.001-04:00

The 30-year fixed-rate mortgage (FRM) averaged 5.42 percent with an average 0.7 point for the week ending June 25, 2009, up from last week when it averaged 5.38 percent. Last year at this time, the 30-year FRM averaged 6.45 percent.

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US Existing-Home Sales Continue to Rise

2009-06-24T12:32:00.002-04:00

Sales of existing homes showed another gain in May, benefiting from favorable affordability conditions and a first-time buyer tax credit, according to the NATIONAL ASSOCIATION OF REALTORS ®. May’s increase was the first back-to-back monthly gain since September 2005. Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.4 percent to a seasonally adjusted annual rate of 4.77 million units in May from a downwardly revised level of 4.66 million units in April. Sales remained 3.6 percent below the 4.95 million-unit pace in May 2008. However, the increase in sales is less than expected because poor appraisals are stalling transactions. Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan. Total housing inventory at the end of May fell 3.5 percent to 3.80 million existing homes available for sale, which represents a 9.6-month supply at the current sales pace, down from a 10.1-month supply in April.

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Tampa Area May Home Sales Down 1%, Prices Down 20%

2009-06-24T10:44:00.005-04:00

The Tampa-St. Petersburg-Clearwater MSA reported a total of 2,243 homes sold in April compared to 2,270 homes a year ago for a 1 percent decrease. The existing home median sales price was $141,100; a year ago, it was $159,800 for a 20 percent decrease. The average home price is up 15% from the low point in January 2009 of $122,400. In the year-to-year comparison for the existing condo market, a total of 596 units sold in the MSA last month, up 17% from a year ago when 511 condos sold. The market’s existing condo median price was $107,500; a year ago, it was $159,800 for a 33 percent decrease.

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Home Buyer Tax Credit Could Expand

2009-06-23T08:59:00.002-04:00

A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it. A number of bills have been introduced in the House and the Senate that lobby for an expansion of the measure. Among the proposed changes:

* Setting a new cap of $15,000.

* Extending the tax break into mid-2010.

* Making the benefit available to all home buyers, not just first-timers.

* Offering a separate tax credit to $3,000 for borrowers who refinance.

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Fannie Mae Continues Tightening Lending Rules

2009-06-20T09:02:00.002-04:00

Reversing a long-standing policy, Fannie no longer will permit mortgage applicants to count the income of so-called "trailing spouses" toward the household income needed to qualify for a loan. A trailing spouse is one who joins his or her spouse or partner in a job-related move, but who has yet to obtain employment in the new location. As part of its June 8 tightening of underwriting rules, Fannie Mae also announced that it plans to discount the values of all borrowers' stock, bond, mutual fund and retirement fund holdings that are claimed toward the applicants' financial reserves needed to qualify for a mortgage. While Fannie previously counted 100 percent of the claimed or documented value of stocks, bonds and mutual funds toward reserves, under its revised policy it will discount them by 30 percent. For retirement accounts, it will count only 60 percent of the value toward reserves. To illustrate: If your mutual funds and stocks are worth $100,000 according to your investment manager or broker, Fannie will credit only $70,000 toward reserves. If your retirement account is worth $500,000, Fannie will give you credit toward reserves of only $300,000.

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Million-dollar homes hard to move in down economy

2009-06-20T08:55:00.001-04:00

Sales of million-dollar-plus homes in Hillsborough and Pinellas counties plunged 42 percent from 2006 to 2008, from 554 to 321. This year, million-dollar transactions are even harder to find. As of early June, the two counties had recorded about 70 sales in the million-plus category, the slowest pace in more than a decade. Sometimes the homes have sold, but price chopping knocked them out of the million-dollar club.

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