A look back at the week that was
As we lead into the final weekend before the elections, here is a look back over the last few days at the housing reports and data:
Prices continue to rise across the nation
The widely-watched S&P/Case-Shiller Index, which reports on sales of homes in 20 U.S. cities, increased 2% in August compared to August 2011. The Case-Shiller index is based on a three-month average, which means the August data were influenced by transactions in June and July.
Foreclosure numbers continue their fall
The San Diego Daily Transcript reported that, according to CoreLogic, the rate of San Diego-Carlsbad-San Marcos area foreclosures among outstanding mortgage loans was 1.75% for the month of August 2012, a decrease of 0.35 percentage points compared to August 2011 when the rate was 2.10 percent. Foreclosure activity in San Diego-Carlsbad-San Marcos was lower than the national foreclosure rate, which was 3.35 percent for August 2012.
CoreLogic also reported that the number of U.S. homes lost to foreclosure droped for the fifth month in September with 57,000 completed foreclosures. This is down 31.3% from a year ago and down 3.4% from August.
New-home sales hit 2-year high
CNNMoney reported that sales of newly constructed homes hit a 2 year high in September, according to the government’s Census Bureau report. Sales were up 5.7% throughout the nation from August. In addition, the pace of home building hit a four-year high in September according to a separate report.
Fannie Mae and Freddie Mac helping with short sales
Fannie Mae and Freddie Mac are introducing a streamlined process for handling short sales for their loans. They are promising quicker response times, quicker decisions, and less paperwork.
In addition, they have worked out arrangements with several private mortgage insurance companies. Private mortgage insurance, or PMI, is required on loans greater than 80% loan to value. For Fannie Mae and Freddie Mac customers trying to work out a short sale, the PMI company will no longer do a separate review. This will greatly speed up the process as well as increase the likelihood of the short sale being approved.
Interest rates continue to stay near record lows
Freddie mac reported that the 30-year loan rate declined this week to 3.39%, down from 3.41% last week.
Comment: seriously??? When I bought my first condo, my rate was 8% and I was happy to get it!!!! If you are even thinking about buying a home, what are you waiting for???
Prudential California Realty
North San Diego County and Carlsbad Real Estate