Image by Getty Images via @daylife

The mortgage delinquency rate across the United States (measured by the # borrowers 60 or more days past due) decreased for the 6th consecutive quarter.

The delinquency rate dropped at 5.82 percent at the end quarter 2 and the 2nd quarter also shows mortgage delinquency rates improved quarter over last quarter at 5.98 percent. This marks the best improvement since the recession officially ended two years ago.

While relatively low home prices and high unemployment continue to exert upward pressure on delinquency rates, they are more than offset by the impact of more conservative lending policies reflecting consumers with higher credit scores,” says Tim Martin, group vice president of the U.S. Housing Market in TransUnion’s financial services business unit. “Not only are these consumers less likely to default if house prices continue to edge downward throughout the year, but their willingness to repay their debt obligations in the face of high unemployment rates is greater. It is because of these dynamics that lenders today take a much closer look at the borrower’s income history and overall debt situation than before the recession began in 2007.

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The increase in overall median price is attributable in part to an increase in the number of “normal” home sales, which have higher selling prices than foreclosures or short sales. The number of normal sales in March (733) is 28.15 percent higher than in February (572).

“Short sales and foreclosures continue to dominate and account for 70.50 percent of sales in March,” says ORRA Chairman of the Board Mike McGraw, McGraw Real Estate Services, PL. “A consistently high percentage of these sales types is something that we want to see; the sooner they flush through the system the sooner we can get back to a market based on normal sales.”

The key will be to see if we can keep this going over a sustained amount of time as it is great news. Lets hope it continues.

http://realtrends.com/products/updates/view?uid=23&pid=173&page=4

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Image by Getty Images via @daylife

This is the biggest drop ever in history!

Meanwhile New home sales is driving much of the current home sales and helping to end the housing slump.

“Existing home sales produce some economic activity but it pales in comparison with new home sales,” said David Crowe, the chief economist for the national Association of Home Builders. “We calculate that for every 100,000 homes built, it creates 150,000 construction jobs but another 150,000 manufacturing jobs building refrigerators, furniture and other products.”

http://money.cnn.com/2011/03/10/real_estate/february_foreclosure_realtytrac/index.htm

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Two news stories that point to an improving housing market.

Refinancings through the Home Affordable Refinance Program (HARP) increased 26% in the third quarter of 2010.

Loan Modifications Fannie Mae and Freddie Mac loan modifications through the Home Affordable Modification Program (HAMP) increased 16% in the quarter. Loans modified in the last 3 quarters are performing substantially better 3 months after modification, compared to loans modified in earlier periods. 35,400 HAMP trial loan mods mods transitioned to permanent loans during the 3rd quarter.

Lower Defaults-60 plus-days delinquent declined for the 3rd  consecutive quarter. The 60-plus-days delinquent loans decreased.

Home Sales are up- HUD-U.S. Department of Housing and Urban Development & the U.S. Department of the Treasury released the December  Housing Scorecard. Home affordability in the housing market is better with interest rates near record lows.

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“The Obama Administration’s broad set of programs have helped promote stability for the housing market, neighborhoods, and the nation’s homeowners, but there is much more work to be done,” said HUD Assistant Secretary Raphael Bostic. “Since taking office in 2009, the Administration’s efforts have helped millions families stay in their homes and helped millions more refinance, but the data clearly show that the market remains extremely fragile. That’s why we’re continuing to focus on successfully implementing the programs we’ve put in place – such as additional refinancing assistance and emergency loans to help unemployed homeowners – and ensuring that help is available to homeowners as early as possible.”

“While much work remains to be done to help families that have been hurt by this crisis, the Administration’s programs have benefitted many homeowners directly while setting standards for the entire industry,” said acting Assistant Secretary for Financial Stability Tim Massad. “This is a major reason why there have been more than twice as many modifications and other foreclosure alternatives as foreclosure completions since April 2009.”

The December Housing Scorecard features key data on the health of the housing market including:

•          Foreclosure starts and completions dropped significantly in November. As lenders review internal procedures related to foreclosure processing, many foreclosure actions have been delayed leading to a 21 percent drop in foreclosure activity in November. While this is the biggest month over month decrease since 2005, the decline is likely to be temporary as lenders eventually revise and resubmit foreclosure paperwork in the coming months.

•          As expected with the expiration of the Homebuyer Tax Credit, new and existing home sales have remained below levels seen in the first half of 2010. However, this month’s report also shows that home prices and home equity declined moderately, as prices remain unsettled at this fragile stage of the recovery.

•          More than 3.9 million mortgage aid offers were initiated between April 2009 and the end of October 2010 —more than double the number of foreclosure completions during that time. These actions included over  1.4 million Home Affordable Modification Program (HAMP) trial modification starts, more than 600,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and nearly 1.8 million proprietary modifications under HOPE Now. While some homeowners may have received help from more than one program, the number of agreements offered were more than double the number of foreclosure completions for the same period (1.7 million). To view the November HAMP Servicer Performance Report, visit:  http://www.financialstability.gov/docs/Nov%202010%20MHA%20Report.pdf.

Data in the scorecard also show that the recovery in the housing market continues to remain fragile. While the recovery will take place over time, the Administration remains committed to its efforts to prevent avoidable foreclosures and stabilize the housing market.

Each month, the Housing Scorecard incorporates key housing market indicators and highlights the impact of the Administration’s unprecedented housing recovery efforts, including assistance to homeowners through the FHA and HAMP. The Obama Administration’s complete Housing Scorecard is available HERE.

REPORTING NOTE: Beginning in 2011, the HAMP Monthly Servicer Performance Report will be released at the beginning of each month to align all program reporting.  The next Housing Scorecard and HAMP Report will be issued jointly on or about February 1, 2011.

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A 50-state attorney general task force that is investigating lender foreclosure practices has begun meeting with banks and loans servicers, but working around the state-specific laws makes a global settlement difficult.

A member of the task force’s executive committee, Washington Attorney General Rob McKenna, said,

“Loan modifications may be a significant part of the solution. If you keep homes out of foreclosure, they don’t depress real estate values.”

Bloomberg, Margaret Cronin Fisk (10/28/2010)

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An estimated 43,964 new and resale houses and condos were sold statewide last month. That was up 7.3% from 40,965 in May, and down 0.5% from 44,167 for June 2009, according to MDA DataQuick.

California sales for the month of June have varied from a low of 35,202 in 2008 to a peak of 76,669 in 2004, while the average is 50,405. MDA DataQuick’s statistics go back to 1988.

The median price paid for a home last month was $270,000, down 2.9% from $278,000 in May, and up 9.8% from $246,000 for June a year ago. The year-over-year increase was the eighth in a row, following 27 months of year-over-year decline. The bottom of the current cycle was $221,000 in April 2009, the peak was at $484,000 in early 2007.

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The banks, the government, and realtors: they have all seen their share of blame for the collapse of the housing market. Yet Dale Robyn Siegel, author of The New Rules for Mortgages, is convinced homebuyers must also acknowledge their share of the responsibility to avoid a repeat of their mistakes for future buyers. Certainly there are those who have found themselves in extenuating circumstances. However, Siegel explains the reality is buyers walk into this significant investment with hardly the preparation they need.

“If you put me in front of congress to report how to mitigate a future housing crisis, I would say there is one solution,” Siegel claims. “That’s education.  There is now mandatory education for mortgage loan officers, which is great. However, every home owner must also be educated about the process, benefits and risks of owning a home.”

With lures of tax credits and “fire sale prices,” many are taking the bait to make the same significant investment 2.8 million people were foreclosed on in 2009. “One positive short term affect of the global financial chaos we are experiencing today is lower interest rates,” Siegel points out. However, the dazzle does not change the fact that buying a home is a major long term financial commitment requiring preparation. For the financial health and sanity of homebuyers, as well as that of the nation, Siegel stresses mandatory education, diligence and patience.
Here are steps she advises become standard procedure for all potential or current homeowners:

•Learn the business behind buying a home – Attend a real estate course or seminar to understand the process of buying and financing a home •Understand the fine print- Know what every signature line represents including associated fees, penalties, and deadlines •Know the costs- Beyond the price of the home, consider monthly expenses and taxes that will increase over the years. Compare these increases to future changes in income.
•Note responsibility of others- From agents to inspectors, know what is needed and can be expected from every person involved •Be patient- Allow time to make informed decisions and do research, respect the processes in place and don’t just jump in •Ask the hard questions- Address hypothetical scenarios, such as job loss, and questions that will challenge the ability and desire to make such a substantial commitment

With a little education, homebuyers can alleviate some of the risks and can confidently and intelligently proceed. A knowledgeable consumer base will also help keep the nation from simply setting up for another collapse in coming years. Ms. Siegel’s book, The New Rules for Mortgages, has been recognized with multiple awards, including one from the National Association of Real Estate Editors.

To speak with Dale Robyn Siegel or for a review copy of The New Rules for Mortgages, please contact Abby Dittmer, 708-434-5006, Abby@Wilkspr.com

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St. Louis-area home sales rocketed up 22% in March there were 2,620 single-family homes sold in the 11-county region, according to data compiled by the Post-Dispatch from local real estate services. Sales grew in every county from last March, and the median price increased across much of the region.

The gains echo national figures released this morning by the National Association of Realtors, which reported a 16.1 percent bump in sales nationwide from last March, and a 6.8 percent increase from February.

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