Unemployment and tight lending practices are among the things that keep housing demand low

Tuesday, February 07, 2012

Mortgage loan applications have increased 23% this last week due to record low rates.

Orlando, FL (MBNews.org) -- Historic record low have encouraged many homeowners to refinance according to the Mortgage Bankers Association.

We have seen refinancing activity climbed 26.4% just this week week ending January 13, to its highest level since early August, the MBA reported. Meanwhile applications for new mortgages climbed 10.3% week-over-week.

Time to buy a house? Home prices have fallen and mortgage interest rates are lower than they have ever been.

Miami (MBNews.org) — Time to buy a house? Home prices have fallen and mortgage interest rates are lower than they have ever been.

A recent report from J.P. Morgan Asset Management, titled “Housing: A time to buy,” written by David Kelly and David Lebovitz, made the case for why a home may be a wise purchase. Read more: Mortgage rates plunge beyond expectations.

Although the U.S. housing market remains extremely depressed, we believe that given current valuations and demographic dynamics, now may be the time to consider an investment in housing,” the report said.

Goldman, Two Firms Agree on Foreclosure-Signing Practice

Goldman Sachs will compensate some home loan borrowers for wrongful foreclosures under an agreement reached with a New York state banking regulator.

The agreement, which New York financial services superintendent Benjamin Lawsky reached with Goldman [GS 112.16 -4.06 (-3.49%) ] and Ocwen Financial [OCN 13.28 -0.52 (-3.77%) ], contains several measures to strengthen the oversight of foreclosure proceedings.

It also will allow Goldman's planned sale of its Litton Loan Servicing LP unit to continue.

U.S. asks Bank of America to report back up plans if conditions worsen

The U.S. Federal Housing Finance Agency plans to sue "more than a dozen" major banks for billions of dollars over alleged misrepresentation of mortgage-backed securities sold before the housing bubble burst, the New York Times reported late Thursday.

U.S. asks Bank of America to report back up plans if conditions worsen

U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation.

U.S. regulators have pushed Bank of America Corp. to show what measures it could take if conditions worsen for the Charlotte, N.C., lender, according to people familiar with the situation. Read more...

More Americans at Risk of Foreclosure

The number of Americans at risk of foreclosure is rising, reflecting the U.S. economy’s continued struggles.

The Mortgage Bankers Association said Monday that 8.44 percent of homeowners missed at least one mortgage payment in the April-June quarter. That figure, which is adjusted for seasonal factors, rose 0.12 percentage point from the January-March period. Read more...

New York AG Kicked Off Foreclosure Probe Panel

Iowa Attorney General Tom Miller said late yesterday that his New York counterpart, Eric Schneiderman, had been removed from the executive committee working on a multistate foreclosure probe – and potential settlement – with U.S. banks.

Unemployment and tight lending practices are among the things that keep housing demand low

Mortgage Crisis

Thursday, 12 August 2010 00:00

Although home loan demand climbed last week, record low mortgage rates failed to light a fire in a market constrained by unemployment and tight lending practices, explained Lynn Adler from Reuters.

The Mortgage Bankers Association reports continue to show a drop in Mortgage rates. A 4.57 percent drop was reported for 30-year loan rates, the lowest in 20 years of record keeping by the MBA. In a similar way, the average 15-year mortgage rate also fell last week, from 4.03 percent to 3.95 percent, the lowest contract rate on record, the MBA said.

Despite this drop in rates, home demand and refinancing applications have not shown a significant increase. This leads us to believe that there are definitely other situations affecting the consumer in the housing market. The U.S. market has recently undergone an adjustment in tax credits, and is still trying to get used to the new life without the $8,000 in tax credits which might have helped fueled spring sales at the expense of mid-year activity. In addition, people are dealing with job losses or wage cuts all around the country. Sellers also face a challenge as a great number of borrowers are unqualified for loans under more strict lending guidelines. According to reports, Refinancing accounts for about 78 percent of all mortgage requests last week, clearly overshadowing demand for loans to purchase homes.

Patrick Lashinsky, president and chief executive of real estate brokerage ZipRealty in Emeryville, California said that "Consumers don't have a sense of urgency right now." "They think that interest rates seem to be continuing to go down, they don't expect home prices to go up, so instead of moving into home buying they're saving money for a down payment, they're trying to improve their credit," he said.

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