AOL Real Estate - Blog http://realestate.aol.com/blog AOL Real Estate - Blog http://realestate.aol.com/blog/media/feedlogo.gif AOL Real Estate - Blog http://realestate.aol.com/blog en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Home Prices May Withstand Foreclosure Wavehttp://realestate.aol.com/blog/2012/03/30/home-prices-may-withstand-foreclosure-wave/http://realestate.aol.com/blog/2012/03/30/home-prices-may-withstand-foreclosure-wave/http://realestate.aol.com/blog/2012/03/30/home-prices-may-withstand-foreclosure-wave/#commentsFiled under: ,

At best, an increase in foreclosures takes a double-edged sword to the housing market. On the one hand, it means we may be inching toward stabilization, as shadow inventory begins to move through the pipeline. On the other, it spells more stress for beleaguered homeowners and puts downward pressure on home prices.

Housing economists predict that the next wave of foreclosures is about to hit, following the recent settlement between government and lenders in the "robo-signing" scandal. No doubt it will still cause pain to hard-pressed borrowers. But in a break from the past, it may avoid depressing home prices. "There are countervailing strengths," said Mark Fleming, chief economist at CoreLogic, an analytics firm. "We could very well see increasing prices in some markets this year, even though they have significant shadow inventories." The "shadow inventory" is the overhang of homes expected to move through foreclosure that are not yet listed on the market.

A report from CoreLogic released today said that completed foreclosures edged down from 71,000 in January to 65,000 in February, and that the number of homes in a state of foreclosure has shrunk by 115,000 homes from February 2011 to 1.4 million homes in February 2012.

Despite the slight month-over-month drop, foreclosure activity has remained relatively steady recently, but economists predict that it will rise in the coming months because of the resolution of an investigation into illegal foreclosures between the government and major mortgage servicers.

Fleming told AOL Real Estate that the housing market may feel the impact of the robo-signing settlement during the summer, after the five banks involved in the settlement implement government-approved foreclosure practices.

"All of this will result in more foreclosure pain in the short term as some of the foreclosures that should have happened last year instead happen this year," Daren Blomquist, vice president of online foreclosure marketplace RealtyTrac, said in February. The economist predicts that completed foreclosures will jump by 25 percent in 2012, totaling 1 million.

But since the market must eventually absorb the excess supply of foreclosed homes, breaking the foreclosure logjam isn't necessarily a bad thing. "I would like to see the pace increase, because that means we'll be able to work off the inventory faster," Fleming said. And the downward pressure on prices that's caused by an increase in foreclosures may be mitigated by improvements observed lately in other sectors of the market, as well as the economy as a whole, he says.

Home sales have risen by 13 percent in the previous six months, according to Capital Economics, while the delinquency rate saw a year-over-year 14 percent drop as of February, according to Lender Processing Services. Homebuilder optimism is measured at a five-year high, and real estate agents' optimism reportedly more than doubled in the first quarter of 2012, against the backdrop of positive market indicators.

If the positive trends continue, Fleming said, the market could begin to stabilize as early as this year.

%Gallery-150807%
A recent report provided one of the most hopeful signs of recovery for the housing market yet. John Burns Real Estate Consulting found that home prices actually have risen marginally since January. The company says that its gauge of the market, the Burns Home Value Index, eliminates a three-month lag time that distorts other indices by recording contract signings of home purchases, not closings.

Its finding conflicts with most other indices, though, such as the Standard & Poor's/Case-Shiller home-price index, which showed a drop in home prices in January.

Follow Teke Wiggin on Twitter (@tkwiggin), follow @AOLRealEstate, or connect with AOL Real Estate on Facebook.

See also:
HARP 2.0: Do You Now Qualify for Mortgage Relief?
Netizens Deride Foreclosure Settlement


Foreclosures Rise Only Slightly, More Expected

 

Permalink | Email this | Comments

]]>Burns Home Value IndexCase Shiller Home Price IndexDaren Blomquistforclosures risingforeclosureforeclosure waveforeclosures increaseforeclosures risehome prices foreclosureMark Fleming CoreLogicmore foreclosures after mortgage settlementwhen is next foreclosure waveTeke Wiggin2012-03-30T13:00:00+00:00Home Prices Fell in January in Most U.S. Citieshttp://realestate.aol.com/blog/2012/03/27/home-prices-fell-in-january-in-most-u-s-cities/http://realestate.aol.com/blog/2012/03/27/home-prices-fell-in-january-in-most-u-s-cities/http://realestate.aol.com/blog/2012/03/27/home-prices-fell-in-january-in-most-u-s-cities/#commentsFiled under: ,

WASHINGTON -- The Standard & Poor's/Case-Shiller home-price index released Tuesday showed that prices dropped in January from December in 16 of 19 cities tracked.

The steepest declines were in San Francisco, Atlanta and Portland. Prices increased in Miami, Phoenix and Washington. Price information for Charlotte was delayed and therefore not included in the report.

The declines partly reflect typical offseason sales. The month-over-month data are not adjusted for seasonal factors.

Still, prices fell in 17 of the 20 cities in January compared to the same month in 2011. The group's nationwide index of prices has fallen 34 percent since the housing bust and is now at 2002 levels.

The continued drop in prices suggests the housing market remains weak, even after the best winter for home sales in five years and steady improvement in the job market.

"Despite some positive economic signs, home prices continued to drop," said David M. Blitzer, chairman of S&P's index committee.

Eight cities -- Atlanta, Chicago, Cleveland, Las Vegas, New York, Portland, Seattle and Tampa, Fla. -- are now back at 2000 levels or earlier. Only Denver, Detroit and Phoenix posted year-over-year increases.

Analysts were quick to note that prices are expected to rise modestly throughout much of 2012.

%Gallery-150807%
"It's going to be tempting to look at home price declines and see a still-faltering housing recovery, but that's just not the case," said Stan Humphries, chief economist for housing website Zillow.com. "The reality is that home prices and home sales will be moving" higher.

The Case-Shiller monthly index covers half of all U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The January data are the latest available.

Some economists say sales increases could stop prices from falling further by early spring. Home prices tend to follow sales by about six months. When sales rise, prices rise, too, and an increase in prices would likely create a positive cycle.

Homes are the most affordable they've been in decades. And mortgage rates are just above record lows.

The job market is also getting stronger. The economy has added an average of 245,000 jobs per month from December through February. The unemployment rate has fallen to 8.3 percent, the lowest in three years.

Conditions are improving for those in position to buy a home. Still, many people can't afford to buy or are unable to qualify for mortgage. Some people in position to buy are holding off, worried that prices could fall even further.

The biggest reason why prices are still falling is foreclosures, which are still high across the country. Foreclosures and short sales -- when a lender accepts less for a home than what is owed on a mortgage -- are selling at an average discount of 20 percent.

Foreclosure activity surged in February across half of U.S. states. The pace of foreclosures is increasing after all 50 U.S. states reached a $25 billion settlement last month with the nation's five biggest mortgage lenders over foreclosure abuses. Many foreclosures had been stuck in limbo as the 16-month government investigation into foreclosure paperwork problems dragged on.

Copyright 2012 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

See also:
First-Time Homebuyer's Guide
How to Shop for Your First Home
How to Price a Home to Sell Fas

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.


U.S Home Prices Hit All New Shocking Low

 

Permalink | Email this | Comments

]]>home priceshome prices declinehome prices fall januaryhome prices fellhome prices us citieshousing pricesreal estate pricesThe Associated Press2012-03-27T12:50:00+00:00Why Your Next Home Should Be Prefabhttp://realestate.aol.com/blog/2012/03/21/why-your-next-home-should-be-prefab/http://realestate.aol.com/blog/2012/03/21/why-your-next-home-should-be-prefab/http://realestate.aol.com/blog/2012/03/21/why-your-next-home-should-be-prefab/#commentsFiled under: , ,



While picking up some prescriptions recently, my local pharmacist, who knows I write about home construction, asked me if I had any suggestions for how he should build his new house. Since I'm a big advocate for prefab, I suggested that he consider building his house modular. His response shocked me: "I wouldn't want to build modular -- it would upset my neighbors and bring down the neighborhood." I thought that type of thinking about prefab was ancient history, but his response was clear evidence that it is not.

After having written several books on the subject -- filled with evidence of the beauty and diversity of prefab -- I thought we had moved past the bias that prefab is synonymous with double-wides.

%Gallery-150887%
Prefab Options

Prefabricated construction includes all types of buildings that are either partially or completely built in a factory. Modular construction is one of the most common types of prefab. Large boxes are built in a factory and then taken by flatbed truck to a site and lifted with a crane into place. A house can be built with one box or 36 boxes.

Another common type of prefab is panelized construction. Large exterior wall sections of the house are built in the factory and put together on site like a jigsaw puzzle. A similar method is building with structural insulated panels, known as SIPs, which are like sandwiches of oriented strand board, or OSB, fused together with insulation in between. Other types of prefab include concrete panels, prefabricated timber frames and even some log cabins. The savings varies with prefab, depending on the size of the house, location and type of construction.

With all that I've learned over the years, I would never consider building a house on-site. The feedback that I get from my readers, when they have acquired some knowledge of prefab, is that they've become believers -- and wouldn't consider the on-site option either.

Environmental Impact

My preference for prefab comes from years of investigating the best ways to build a house.

As an environmentalist, there are many reasons to prefer prefab. Much of the on-site construction debris goes into a dumpster -- the homeowner is paying for the debris, dumper and tipping charges.

In a factory, wood cutoffs are sorted and used for other houses. Many of the cutoffs from materials, such as drywall and metal, are returned to the manufacturer for recycling. Materials are shipped in bulk to the factories, so they cost less and shipping charges are reduced.

Prefab houses are built in an environment where the wood is protected from the elements and has less chance of developing mold and rot. And it and won't twist and buckle, creating thermal bridges where air will infiltrate. Furthermore, prefab houses are built by professionals under the watchful eyes of supervisors who are checking the work all along the process.

These advantages are all in addition to the shorter construction time and financial savings associated with building prefab.

Prefab Homes



















Cost Advantages

Several years ago the Structural Building Components Industry compared the construction of a site-built house to a panelized one in a study called "Framing the American Dream." The panelized house took substantially fewer hours to build, used less lumber, created far less scrap and cost 16 percent less in labor and materials. Another study from a coalition of Philadelphia building experts, titled "Going Mod," found a $32 savings per square foot using modular rather than site-built construction.

Over the years that I have been writing books on prefab, I have became more and more conscious of the importance of building houses with healthier environments and increased energy efficiency. Heating and cooling houses currently accounts for about 40 percent of the energy used in this country. With the environmental and political ramifications of acquiring energy from fossil fuel, I thought there must be a way to build houses that require less.

I have also been influenced by the recent power outages in the Northeast. Twice in the last six months, it took Connecticut Light and Power almost a week to restore power to my neighborhood. I began to consider how wonderful it would have been to be somewhat independent of the grid (the power utility) and be able to sustain at least some of the energy in our house during those outages. Through my research I've found numerous ways of limiting the need for energy in the home and several ways to create energy without the need for fossil fuel.

These options would make the house more comfortable and save on energy costs. According to a report last week by McGraw-Hill Construction, the green housing market is growing rapidly, having tripled since 2008. Green homes, which comprised 17 percent of new residential construction last year, are expected to increase by 29 percent to 38 percent of the market by 2016.

Prefab to Prefabulous

About a year ago I decided to write a book profiling prefabricated houses that require minimal energy. I thought it would probably be difficult to find enough of these houses in this country. To my delight, I found more than I could possibly include in one book.

The houses I found are varied in style, location and method of construction -- but they are all smaller, very energy and water efficient, with healthy environments, and with a more sustainable use of materials. The result of this search is "Prefabulous + Almost Off the Grid: Your Path to Building an Energy-Independent Home." (It's scheduled for released by Abrams in October and is available for pre-order this week.)

I hope you will send in your questions and follow this blog to learn more about the advantages of prefab and environmentally friendly and energy efficient home construction.

Sheri Koones is an award-winning author of five books on home construction, with the last several focusing on prefabricated construction. Her most recent book is "Prefabulous + Sustainable." Her latest work, "Prefabulous + Almost Off the Grid," will be released in October 2012 by Abrams.

See also:
WATCH: The Pros and Cons of Buying a New-Construction Home
Don't Be Surprised by Costs of Homeownership
Homebuyer's Remorse: How to Avoid and Cure

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

 

Permalink | Email this | Comments

]]>building with prefabgreen homesmodern architecturemodular homesmodular housingnew prefab homesprefab architetureprefab homeprefab housingprefabricated housingPrefabulousPrefabulous + Almost Off the Gridsustainable architecturesustainable homesSheri Koones2012-03-21T09:00:00+00:00Pending Homes Sales: Outlook Brightest in Nearly 2 Yearshttp://realestate.aol.com/blog/2012/02/27/pending-homes-sales-outlook-brightest-in-nearly-2-years/http://realestate.aol.com/blog/2012/02/27/pending-homes-sales-outlook-brightest-in-nearly-2-years/http://realestate.aol.com/blog/2012/02/27/pending-homes-sales-outlook-brightest-in-nearly-2-years/#commentsFiled under: , ,



WASHINGTON -- The number of Americans who signed contracts to buy homes rose in January to the highest level in nearly two years, supporting the view that the housing market is gradually coming back.

The National Association of Realtors said Monday that its index of sales agreements rose 2 percent last month to a reading of 97. That's the highest reading since April 2010, the last month that buyers could qualify for a federal home-buying tax credit and the last time the reading was above 100.

A reading of 100 is considered healthy.

The Realtors' group also released revised data for 2011. That lowered November's initial 19-month high of 100.1 to 96.9. But contracts have been markedly up since the summer when some feared a second recession loomed.

Find Local Homes for Sale
Browse through photos of millions of home listings on AOL Real Estate
See Homes for Sale
Search Foreclosures for Sale
Contract signings typically indicate where the housing market is headed. There's a one- to two-month lag between a signed contract and a completed deal.

A sale isn't final until a mortgage is closed. One-third of Realtors complain that they've had at least one contract scuttled in January, December, November and October, according to the Realtors' group. That's up from 18 percent of Realtors in September.

Nonetheless, the gain in signed contracts supports other evidence of improvement in the housing market.

Pierre Ellis, an economist at Decision Economics, said home sales and building is in the midst of "ongoing general, but gentle, progress."

%Gallery-147919%
Builders are growing more optimistic after seeing more people express interest in buying this year. Sales of previously occupied homes are at their highest level since May 2010. More first-time buyers are making purchases. And the supply of homes fell last month to its lowest point in nearly seven years, which could push home prices higher.

Homes are the most affordable they've been in decades. And mortgage rates have never been cheaper.

Much of the optimism has come because hiring has picked up. More jobs are critical to a housing rebound.

"Easier mortgage lending criteria, very low rates and the improving labor market are all contributing to the beginnings of a real upturn in home sales, if not yet prices," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

Sales may also be rising because of an April deadline for higher mortgage application fees for Fannie Mae and Freddie Mac-backed home loans. The government-controlled mortgage buyers own or guarantee about half of all U.S. mortgages and 90 percent of new loans, and have been telling customers to submit their applications now.

Analysts caution that the damage from the housing bust is deep and the industry is years away from fully recovering.

Potential buyers are holding off for a number of reasons. High unemployment and weak job growth have deterred many potential buyers. Loans are harder to come by. Lenders are requiring bigger down payments and strong credit scores to qualify.

Even those with good credit and stable finances are hesitant to buy out of concern home prices will keep falling.

Also see:
New Home Sales Dip, But Beat Expectations
30-Year Mortgage Rate Up, But Still Under 4%


US Stocks Pare Weakness and Pending Home Sales Data Improves

 

Permalink | Email this | Comments

]]>2 year high in home salesHomeBuildersNAR home sales reportNAR pending home salesNational Association of Realtorsupbeat housing dataUS pending home salesThe Associated Press2012-02-27T13:00:00+00:001 in 4 Spend More Than Half of Income on Housing, Study Sayshttp://realestate.aol.com/blog/2012/02/27/1-in-4-spend-more-than-half-their-income-on-housing-study/http://realestate.aol.com/blog/2012/02/27/1-in-4-spend-more-than-half-their-income-on-housing-study/http://realestate.aol.com/blog/2012/02/27/1-in-4-spend-more-than-half-their-income-on-housing-study/#commentsFiled under: ,

home affordabilityIn the wake of the housing bust, almost 1 in 4 working families spend more than half their income on housing costs, according to a new study.

The study by the Center for Housing Policy found that both homeowners and renters continue to struggle with housing costs since the market tanked in 2008. Between 2008 and 2010, renters saw their median income decline even as housing costs rose, while homeowners' loss of income outpaced a modest drop in housing costs. Experts typically warn against using more than 30 percent of pretax income toward housing costs. (Read more about debt-to-income ratio here.)

In 2010, the latest year in which data was available, there were 10.6 million households with more than half their income going toward housing, including utilities. A total of 23.6 percent of working households fell into that precarious category -- up 1.8 percentage points from 2008. (The study defines working households as those that make less than 120 percent of an area's median income and work at least 20 hours a week.)

With prospective buyers finding it harder to qualify for a mortgage and job security remaining a top concern for many families, rental demand has surged in past years, driving up costs. For homebuyers who purchased risky loans with little equity at stake during the boom years, high interest and sliding home values have pushed thousands underwater, with insufficient savings to escape the cycle.

%Gallery-139166%
"The data show that homeowners have been hit hard by the housing crisis in more ways than just lost equity," said Jeffrey Lubell, executive director at the Center for Housing Policy, in a statement. "Many working homeowners have been laid off or had their hours cut."

Homeowners felt the pinch of diminishing salaries more acutely than renters, dropping to a median of $41,413 in 2010, down from $43,570 in 2008. Working renters, on the other hand, typically make less, with a median income of $30,229 in 2010.

Unsurprisingly, the groups that were most at risk of having a severe housing cost burden made less than 80 percent of their area's median income, whereas wealthier households held steady over the 2-year period.

Where Housing Hurts Most

Between 2008 and 2010, affordability has significantly declined in 24 states. The five states with the highest share of households spending more than half their incomes on housing were California (34 percent), Florida (33 percent), New Jersey (32 percent), Hawaii (30 percent) and Nevada (29 percent).

With several experts predicting that the $25 billion mortgage settlement with the nation's largest banks will lead to more foreclosures at the start of 2012, both renters and owners should brace for more price fluctuation in their local markets, at least in the short term.

That said, the group most affected by the price confusion are those who bought during the height of the housing bubble, prior to 2008. For those entering the market today, however, sinking prices and near-record low mortgage rates places home affordability at a 20-year high.

Also see:
Black Borrowers Face Higher Hurdles in Lending, Study Shows
How the Foreclosure Settlement Could Affect You

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.


How to Estimate the Cost of Buying a House

 

Permalink | Email this | Comments

]]>affordable housingCenter for Housing Policydebt+to+income+ratiodebttoincomeratiohome affordabilityhousing costshousing working familieshousing working householdsworking class housingStefanos Chen2012-02-27T11:40:00+00:00Billboard House Advertises a Way Out of the Housing Crisishttp://realestate.aol.com/blog/2012/02/13/billboard-house-advertises-a-way-out-of-the-housing-crisis/http://realestate.aol.com/blog/2012/02/13/billboard-house-advertises-a-way-out-of-the-housing-crisis/http://realestate.aol.com/blog/2012/02/13/billboard-house-advertises-a-way-out-of-the-housing-crisis/#commentsFiled under: ,



Scott Hostetler didn't bother to tell his family that he'd applied online to have their house in Buena Park, Calif., turned into an advertising billboard for the price of their monthly mortgage payment. He figured that it was like taking a chance on the lottery -- and who ever expects to win the lottery? Then, about three weeks ago, he got the call from Romeo Mendoza, head of the advertising company that made the offer, Brainiacs From Mars.

Mendoza delivered the shocking news: The Hostetlers' home had been selected out of some 38,000 applications to be the first to be branded with a very special custom paint job, a deal that would cover the monthly mortgage payment of $2,000 for at least three months and perhaps up to a year -- depending on when either the homeowners or the ad company wants to end the contract. At the end of that time, the company promised to restore the home's exterior to its original appearance.

%Gallery-147246%
Until then, though, it would display the bright orange and green colors of Brainiacs From Mars (formerly known as Adzookie). The company signage in the photo above is just temporary; while Buena Park is OK with the paint job, city zoning laws prohibit permanent advertising signs on residences.

Hostetler and his wife, both of whom are deaf, have lived in the home for about 18 years. They both work for Goodwill Industries -- he's an information technology manager and she's a rehabilitation counselor. Their 17-year-old daughter (pictured with her parents) lives at home; they also have a son who is a freshman at Rochester Institute of Technology in New York.

The Hostetlers say that they plan to use the extra money sent directly to them monthly from Brainiacs to pay down some bills, replace Scott's old Chevrolet Suburban, and maybe go on vacation.

Getting Help Into the Hands of the People Who Need It Most

The idea for the Billboard House came to Mendoza, the company's chief executive, as he picked up his 7-year-old from school. Every day they would pass a sign that advertised a bank-owned property. And when he visited his mother in Las Vegas, there were areas so hard hit by the housing crisis that, he says, they seemed to him like ghost towns. Government can only do so much, he says, while corporations have the money, and this seemed to him like a promising way to get some of that into the hands of people who needed it the most.

While Mendoza figures that about 10 percent of those who applied to have homes turned into billboards "wanted to have a good time" with it and were attracted to the novelty, he insists that "we're here to help the homeowners." Applications "have come from literally everywhere," he says, though he has noticed a higher amount from the "foreclosure states" -- Florida, Nevada, and California. Applications have also come from Japan, Spain, Russia, the Czech Republic and many other countries. One city councilman reportedly invited Brainiacs From Mars to paint an entire row of homes in his town.

The advertising company has plans for 100 such homes, Mendoza says, but a goal of 1,000 if they can attract the advertisers. In areas like Buena Park that prohibit advertising signage, they'll stick to the brand's colors, but where community zoning allows more, signs would go on the homes.

What Will the Neighbors Think?

While there is no set of particular qualities that Brainiacs is looking for in a homeowner, Mendoza says the Hostetlers are the kind of close-knit family that "felt right" to help debut the promotion. As for official requirements, the applicants must own the home, and local zoning laws must allow the paint job. Selected homeowners also have to be prepared for neighbors' reactions.

You might think the company would be looking for homes in high-traffic areas, but the Hostetlers' 1960s house is inside a quiet development of tract houses, at least a block away from main streets and within view of a neighborhood park. You might get a glimpse of the back of the home from nearby Knott's Berry Farm, though, as you prepare to plunge from the top of its Xcelerator or another towering thrill ride. The house is practically in the shadow of the amusement park, one of Southern California's top tourist attractions, whose roller coasters serve as a backdrop for the neighborhood.

After its official unveiling today, the house could become its own neighborhood attraction -- along the lines of a elaborate Christmas display, the Hostetlers say. While AOL Real Estate was there on Sunday, members of a motorcycle club that was gathered at a house across the street were taking pictures, and a quartet of teens on skateboards stopped to take a look.

As for the neighbors, they found out last week, on the first day of painting, when Brainiacs From Mars went door-to-door to the closest houses to explain why the olive green and chocolate brown color scheme that the Hostetlers say had earned them compliments and admiring inquiries was dramatically changing. The neighbors were shocked at first, the Hostetlers say, but "that went away, and now they understand." One neighbor even wanted to have his house turned into a billboard, too. Though another walked by and said, "Your house was so pretty before. What did you do to it?"

Vivian Largent, who lives across the street and a few doors down, says that she thinks the new paint is fine as long as it's temporary. She would have some concerns about property values if it stayed up for the long term, though.

Largent said that she knows people who could really use some help on their mortgage right now, and had asked Brainiacs how those she knows could apply. (You can find the application on the Brainiacs website.)

She also wondered why the advertising sign that the roofers has posted in her front yard, as they'd worked on her home, was allowed, while the signage that Brainiacs From Mars attached to the Hostetlers house for media photographs had to be taken down.

Before:


After:


Correction: An earlier version of this story incorrectly identified the college that Scott and Elizabeth Hotstetlers' son attends.

Also see:
How the Foreclosure Settlement Could Affect You
Home Swap: Exchange More Than Affection on Valentine's Day

%Gallery-128242%
More on AOL Real Estate:
Find vacation homes for rent.
Find vacation homes for sale.
Find out how to calculate mortgage payments.
Find homes for sale in your area.

 

Permalink | Email this | Comments

]]>AdzookieAdzookie billboard housebillboard homebillboard houseBrainiacs from MarsBrainiacs From Mars billboard housebrainiacs+from+mars+billboardbrainiacsfrommarsbillboardBuena Park billboard housebuena+park+home+adzookiebuenaparkhomeadzookieRomeo MendozaScott Hostetler Buena ParkKent Zelas2012-02-13T15:15:00+00:0030-Year Mortgage Rate Falls to 9th Record Low in a Yearhttp://realestate.aol.com/blog/2012/02/03/30-year-mortgage-rate-falls-to-ninth-record-low-in-last-year/http://realestate.aol.com/blog/2012/02/03/30-year-mortgage-rate-falls-to-ninth-record-low-in-last-year/http://realestate.aol.com/blog/2012/02/03/30-year-mortgage-rate-falls-to-ninth-record-low-in-last-year/#commentsFiled under: , ,

mortgage ratesWASHINGTON -- The average rate on the 30-year-fixed mortgage fell this week to a record low, the ninth time that has happened in the last year. But even with the cheapest rates in history, the housing market remains depressed.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan dropped to 3.87 percent this week. That is below the previous record of 3.88 hit two weeks ago.

The average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s.

Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.


Rates have been low for more than a year, and the average rate on the 30-year loan has hovered near 4 percent for more than three months. Yet few people can afford to buy a home or qualify for a loan. Many of those who can have already done so.

High unemployment and scant wage gains have made it harder for many others to qualify for loans. Still others don't want to sink money into a home that they fear could lose value over the next few years.

Sales of previously occupied homes were dismal last year. New-home sales in 2011 were the worst on records going back half a century.

Builders are hopeful that the low rates could boost sales next year. But so far, they have had a minimal impact.

Mortgage applications have risen slightly over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year loan rose to 0.8 from 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.

For the five-year adjustable loan, the average rate fell to 2.80 percent from 2.85 percent. The average on the one-year adjustable loan rose to 2.76 percent from 2.74 percent.

The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.

Copyright 2012 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.


How to Lock Your Mortgage Rate Before Lender Hikes It

Also see:
Open Houses of the Week: Super Bowl Weekend
Distressed Sales Undercut Home Prices in 2011, Study Says

 

Permalink | Email this | Comments

]]>30 year fixed mortgage30 year fixed rate mortgage30 year loan rateFreddie Maclow interest ratesMortgage Bankers Associationmortgage interest ratesmortgage ratesrecord low interest ratesThe Associated Press2012-02-03T11:50:00+00:0010 States With the Most Mortgage Debthttp://realestate.aol.com/blog/2012/01/27/10-states-with-the-most-mortgage-debt/http://realestate.aol.com/blog/2012/01/27/10-states-with-the-most-mortgage-debt/http://realestate.aol.com/blog/2012/01/27/10-states-with-the-most-mortgage-debt/#commentsFiled under: ,

foreclosure signHow much residents of each state owe on their mortgages is an interesting statistic. For the most part, residents of the states with the highest average mortgage debt are not in trouble. While the average home price in these states dropped in value during the recession, the foreclosure rates in these states are among the lowest in the country. The reason: Residents of these states can generally afford to lose and owe more money than their counterparts in other states. (Click the gallery below to see the full list.)

%Gallery-145835%
24/7 Wall St. examined a recent report by Credit Karma to find the 10 states with the highest average mortgage debt. Most of the states on our list have extremely high mortgage debt because of the size of their initial mortgages. States like Connecticut and Massachusetts, which have among the highest median home values in the U.S., also have among the highest mortgage debt. Hawaii, which has the second-highest average mortgage debt per person, has the highest median home value of $525,400.

Many of the states on the list also experienced the steepest declines in home value during the recession. Home prices in seven of the states with the highest mortgage debt declined during the recession. In states like California and Nevada, properties lost more than 30 percent of their value. Even in states like New Jersey and Maryland, which fared relatively well during the recession, homes lost between 7 percent and 10 percent of their value.

Sharp declines in home values, coupled with high mortgage debt, should translate to financial disaster. However, while home values dropped more than 7 percent in Maryland, Massachusetts and New Jersey -- states where mortgage debt is the highest -- foreclosure rates stayed low.

Meanwhile, states with the lowest median home value and relatively high mortgage debt tend to have the highest foreclosure rates. Illinois, Michigan and Florida all have median home values below the national average and relatively high mortgage debt compared to housing prices in the state. These states also have among the highest foreclosure rates in the country.

More from 24/7 Wall St.:
10 Cities Crushed by the Global Recession
Americans Want Federal Aid for Housing, But Lack Ideas
Worst Cities for Retirees to Find Work

Also see:
Report: Foreclosures Down, But Discounts Abound
New Home Sales 2011: Worst Year on Record

%Gallery-143099%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.

 

Permalink | Email this | Comments

]]>Credit Karma mortgage debthighest mortgage debtlowest mortgage debtmortgage debtmortgage debt statesreport Credit Karmastates with least mortgage debtstates with most mortgage debt24/7 Wall St.2012-01-27T16:00:00+00:002011 in Real Estate: The Top 11 News Storieshttp://realestate.aol.com/blog/2011/12/26/2011-in-real-estate-the-top-11-news-stories/http://realestate.aol.com/blog/2011/12/26/2011-in-real-estate-the-top-11-news-stories/http://realestate.aol.com/blog/2011/12/26/2011-in-real-estate-the-top-11-news-stories/#commentsFiled under: ,



It seemed like a race to the bottom this year: Along with continued declines in property values, every season seemed to see another record low in interest rates -- though fewer-than-expected buyers were inclined to take advantage. Also on the way down or stuck in the cellar: the number of Americans who expected to buy their own home and their chances of qualifying to own one -- though some scaled down their aspirations by looking into building smaller, more economical houses.

But perhaps the most significant decline came in the realization of the American dream. U.S. Census figures put the rate of homeownship at its lowest level since the Great Depression -- 65.1 percent, with some analysts saying that the U.S. might never return to its mid-decade housing boom peak, when about 70 percent of occupied households were owned by their residents.

And though some analysts were still predicting even lower housing prices, and still more foreclosures, there were hopeful signs. A rise in home construction inspired more optimism among homebuilders. And some of the cities that have suffered most during the housing crisis finally saw significant movement in their real estate markets.

(Pictured above: An eviction team removes a family's possessions from a foreclosed home in Longmont, Colo., in September.)

%Gallery-142375%
Also see:
Celebrity Real Estate Trends of 2011
Most Controversial HOA Moves of the Year
Homes Lose $700 Billion in Value in 2011, Report Says

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Finds homes for rent in your area.

 

Permalink | Email this | Comments

]]>2011+real+estate2011realestatefannie maefreddie macFinanceFlorida real estate marketforeclosure crisisForeclosureshome valueshomebuildinghomeownership ratehousing recoverylas vegas real estate marketoccupy movement housingproperty valuesreal estate marketreal estate news 2011real+estate+2011realestate2011rentingUnited States CensusKent Zelas2011-12-26T09:00:00+00:00Mortgage Delinquency to Drop Sharply in 2012, Report Sayshttp://realestate.aol.com/blog/2011/12/07/mortgage-delinquency-to-drop-sharply-in-2012-report-says/http://realestate.aol.com/blog/2011/12/07/mortgage-delinquency-to-drop-sharply-in-2012-report-says/http://realestate.aol.com/blog/2011/12/07/mortgage-delinquency-to-drop-sharply-in-2012-report-says/#commentsFiled under: , ,

mortgage delinquencyNEW YORK -- If the U.S. economy does not suffer more setbacks, the rate of mortgage holders behind on their payments should decline significantly by the end of next year, according to credit reporting agency TransUnion.

Mortgage delinquency rates -- the ratio of borrowers 60 or more days behind on their payments -- will likely tick up to about 6 percent through the first three months of 2012, TransUnion said in its annual delinquency forecast issued Wednesday.

But by the end of next year, it could drop to 5 percent, TransUnion said. That's well off the peak of 6.89 percent seen in the fourth quarter of 2009.

Chicago-based TransUnion's forecast takes into consideration several factors, including expectations that consumer confidence and the economy will improve next year.

Also, banks are expected to get a good portion of pending foreclosures off their books next year, said Charlie Wise, TransUnion director of research and consulting.

Slowed by Foreclosures

Banks are still working through a backlog of foreclosures created by issues including the robo-signing scandal, in which bank officials signed mortgage documents without verifying the information they contained. The issue surfaced last year in areas with large numbers of foreclosures, and banks had to backtrack and review foreclosures across the country to make sure their paperwork was in order.

That slowed down the process, Wise said, and left mortgages listed as delinquent for longer than they otherwise might have been, temporarily boosting delinquency rates.

Economic uncertainty has also contributed. In the third quarter of 2011, mortgage delinquencies saw their first uptick in six quarters, largely fueled by concerns over the economy as lawmakers were debating the U.S. debt ceiling and Europe's debt crisis was unfolding.

Helping to cut the mortgage delinquency rate are a slowly improving job market and a stabilizing housing market.

While the drop will be significant, the rate will remain well above the pre-recession average of 1.5 to 2 percent.

"We have a long way to go to get back," said Steven Chaouki, a TransUnion vice president.

The situation with credit cards is much stronger. Card delinquencies -- payments late by 90 days or more -- dropped to their lowest levels in 17 years during the spring, then saw a slight increase in the third quarter, but still remained near historic lows.

TransUnion expects further edging up in the current quarter and the first three months of 2012, but then late payments on bank-issued cards should fall again.

Credit Still Tight

One reason card delinquencies are expected to remain so low is that credit is much tighter than it was before the recession. TransUnion data showed that nearly a quarter million new card accounts were opened by people with less-than-stellar credit scores during the third quarter, which contributed to the slight increase in late payments during the summer months. But banks are mainly still going after consumers with top-tier credit histories.

"Lenders are willing to lend, but are still pursuing the best customers," said Chaouki.

TransUnion predicts by the end of 2012, just 0.69 percent of cards will be considered delinquent, down from a predicted 0.74 percent in the current quarter. The rate has wobbled in the last few years, peaking at 1.36 percent in the fourth quarter of 2007, then dropping and bouncing back up to 1.32 percent in the first quarter of 2009.

The figures reflect a shift in which debt payments consumers consider most important, largely because home prices fell so far.

Chaouki said the conventional wisdom before the Great Recession was that homeowners would put their mortgages first because of concern about their reputation and the emotional attachment involved in owning a home. But what has become clear as housing prices have continued to fall, he said, is that bill payment is far more practical.

"People were protecting their home equity," he said. Credit cards were relatively easy to come by in years past, he said, so when money got tight, it was an easy decision to default on cards and maintain house payments. Now it's common to owe more on a mortgage than a house is actually worth, but credit cards are harder to get. So consumers are being practical and protecting what is more valuable to them.

He said he expects the equation will shift again if housing prices rebound and people go back to building home equity.

Copyright 2011 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

%Gallery-139870%
See also:
Detroit Mom Trades $96,000 House for Used Minivan
Fannie and Freddie Freeze Foreclosures for the Holidays
Viewpoint: Is the Housing Crisis Just a State of Mind?

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Finds homes for rent in your area.

 

Permalink | Email this | Comments

]]>foreclosure crisishousing markethousing market 2012housing outlookmortgage defaultmortgage delinquenciesmortgagestransunionTransUnion delinquency forecastThe Associated Press2011-12-07T10:15:00+00:00Viewpoint: Is Housing Crisis Just a State of Mind?http://realestate.aol.com/blog/2011/11/30/viewpoint-is-housing-crisis-just-a-state-of-mind/http://realestate.aol.com/blog/2011/11/30/viewpoint-is-housing-crisis-just-a-state-of-mind/http://realestate.aol.com/blog/2011/11/30/viewpoint-is-housing-crisis-just-a-state-of-mind/#commentsFiled under: , , , , , ,

Is it possible that the housing crisis is really just a problem caused by our state of mind, not the state of the economy? Is the thing stopping people from buying houses nothing more than their perceptions? Apparently, to some extent, yes.

We are having what, if economists talked like this, could be described as an irrational fear of commitment.

The facts: The recession is considered over, the country's gross domestic product is growing, unemployment is down and consumer spending is up. Yet, the housing market remains comatose. The only explanation is that we are either all still unemployed and not being counted or we're scared out of our boots.

Want some more evidence that we're just one giant anti-anxiety pill away from fixing what ails the housing market?

1. The number of applications for mortgages is down.

It's becoming a broken record: Interest rates are at all-time lows yet nobody is applying for loans. Yes, lending standards are tighter now -- tight enough to put the kibosh on almost 16 percent of all home deals that open escrow -- but the bigger problem is that potential buyers are afraid to even try to get a loan. Loan applications for home purchases were down 10 percent in a week, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey.

Buyers are just plain scared that banks won't approve their loan. This is the grownup equivalent of hiding in the playground bushes during recess because you think the cool kids won't pick you for their team.

2. People don't believe the worst is over.

They are afraid that home prices might fall further. They are afraid that they could lose their jobs tomorrow. They are afraid of looking like a chump, buying when nobody else is buying.

Without question, the days of house-flipping are over. If you are buying, you are buying for the long haul. Remember this: Rents will most certainly go up -- that's why investors are buying properties like mad nowadays; but mortgages that are locked into the current record-low rates will not. If you are planning on staying put, doesn't it make sense to buy?

As for losing your job tomorrow, ask yourself this: Really? Do you really think that's likely? While new jobs aren't being created with anything close to wanton abandon, neither are they being eliminated with the gusto of three years ago. Do you really want to put your life on hold while you wait to see if The Man sneezes in your direction?

Looking like a chump is a tough one. No one wants to be the last soldier killed before the war ends and no one wants to be a homebuyer who bought when prices were still falling. But that gets back to the long-term strategy. You aren't buying for now, you are buying for the many years to come.

Fear can be paralyzing, but so can group-think. If you read how nobody is buying, you figure all those nobodies must know something. Yeah, they know how to be lemmings.

3. Consumer confidence has plunged, yet we are spending again -- just not on houses.

A recent Nielsen poll found that nine of 10 Americans think the country is still in a recession. The memo went out a while ago that the recession officially ended in June of 2009. Pain and misery have clearly lingered and depressed consumers don't spend money. But if we're all so depressed, how do you explain why consumer spending rose in the third quarter by 2 percent. We're even back to our old ways regarding charging and not saving: Consumer credit is back up to 2009 levels and our savings rate has dropped to 3.6 percent, the lowest level in four years. I see our old ways creeping back, don't you?

We may not be happy, but we're spending again. I have but one question: If you are willing to hit Macy's with enthusiasm, why not the housing market?

%Gallery-139870%
Also see:
Survey: Most Boomers Would Cover Kids' Down Payment
Will FHA Be the Go-To Source for High-Cost Mortgages?
When It Comes to Mortgages, Women Don't Shop Enough

 

Permalink | Email this | Comments

]]>consumer spendingconsumer spending patternsAnn Brenoff2011-11-30T11:00:00+00:00House of the Day: Malibu Short Sale With a Steep Price Drophttp://realestate.aol.com/blog/2011/11/30/house-of-the-day-malibu-short-sale-with-a-steep-price-drop/http://realestate.aol.com/blog/2011/11/30/house-of-the-day-malibu-short-sale-with-a-steep-price-drop/http://realestate.aol.com/blog/2011/11/30/house-of-the-day-malibu-short-sale-with-a-steep-price-drop/#commentsFiled under: , , , ,



Think the high-end of the market hasn't been felled by the economic downturn? Guess again. Here's a lovely four-bedroom contemporary home in Malibu, Calif., that is now being offered as a short sale with a recent price drop of $1 million. Ouch.

The 5,000-square-foot home is now listed at $2.85 million, subject to the lender's short sale approval. So what does this really mean? It means the lender could say no to that price or it could mean someone is going to pick up a bargain. The home has been listed at $4.2 million.

The home has whitewater ocean views, top-of-the-line finishes that include Viking and Miele appliances, granite counter tops, Brazilian walnut floors and high wood-beamed ceilings. There is a fossil stone wine cellar and an 1,800-square-foot balcony made of Chinese slate stone. The property is an easy walk to the beach and membership in a private tennis club is included.

Click on the images below to see other premium homes for sale in Malibu, Calif.:



See more Houses of the Day and more homes for sale in Malibu, Calif. on AOL Real Estate.

Got a tip for House of the Day? Know of an exceptional or unusual property currently listed for sale? Please email ann.brenoff@huffingtonpost.com with your suggestions and be sure to include links to listing details and photos. (Due to the volume of response, we unfortunately are unable to respond to each submission.)

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.

 

Permalink | Email this | Comments

]]>high-end luxury markethome of the dayHouse of the Dayluxury real estateMalibuMalibu real estateshort salesAnn Brenoff2011-11-30T06:00:00+00:00FHA Mortgage Loan Limits To Rise Againhttp://realestate.aol.com/blog/2011/11/16/fha-mortgage-loan-limits-to-rise-again/http://realestate.aol.com/blog/2011/11/16/fha-mortgage-loan-limits-to-rise-again/http://realestate.aol.com/blog/2011/11/16/fha-mortgage-loan-limits-to-rise-again/#commentsFiled under: , ,

WASHINGTON -- Congressional bargainers have agreed to increase the size of mortgages insured by the Federal Housing Administration in a compromise being hailed by the housing industry but criticized by conservatives.

Under the deal by House and Senate negotiators, the FHA would be able to insure mortgages worth up to $729,750 in the most expensive regions of the U.S. for the next two years. The ceiling had been raised to that level during the financial crisis, but by law it dipped down to $625,500 on Oct. 1.

However, in a bow to conservatives, the bargainers would not increase the current $625,500 limit on mortgages that can be backed in expensive communities by Fannie Mae and Freddie Mac, the government-controlled mortgage giants, and by the Veterans Affairs Department.

Realtors and home builders had lobbied hard to raise the loan limits for all four entities, arguing that the last thing the country's stubbornly weak housing market needs is stricter limits on government-backed mortgages. They were backed by members of Congress of both parties from areas where housing costs are high, like Southern California and New York.

"We'd have liked broader language, but the FHA is still an important part of the puzzle," Jamie Gregory, a lobbyist with the National Association of Realtors, said Tuesday.

'Beyond Ridiculous'

Conservatives and a majority of House Republicans oppose the increase, saying the government should reduce its involvement in subsidizing housing in hopes that the private market would step up.

In a written statement, the president of the conservative Club for Growth called increasing FHA's loan limits "beyond ridiculous" and said his group would note how lawmakers vote on the issue when they rate members of Congress seeking re-election. He said raising the limits does the opposite of reducing the federal role in housing markets -- something that many conservatives and the Obama administration say they want to strengthen the private market and protect federal taxpayers.

It has so far cost the government about $170 billion to rescue Fannie and Freddie, which nearly collapsed in 2008 because of risky loans in their portfolios.

The size of loans that federal agencies can back is based on a formula that includes a region's median housing cost. More than a fifth of the country's roughly 3,100 counties would be affected by the higher FHA loan limits.

Helping Buyers With Small Down Payments

FHA insurance is often used by buyers who put down small down payments. The agency has insured more than 40 million homes since it was established in 1934, and last year three quarters of those it insured were first-time buyers.

"It's good news for the more than 600 counties that faced loan limit decline," said Robert Dietz, an economist for the National Association of Home Builders. "FHA is important for first-time homebuyers, so that will help support housing demand."

The provision was included in a bill financing the departments of Housing and Urban Affairs, Commerce, Justice, Transportation and several other agencies for the rest of the government's fiscal year, which began Oct. 1. It would also keep all other federal agencies functioning through Dec. 16 as lawmakers continue working on permanent spending bills.

The Democratic-run Senate had voted to increase the loan limits in its housing bill, but the version approved by the Republican-led House left the ceilings alone.

The House and Senate are expected to approve the overall compromise legislation later this week.

Also see:
Fannie, Freddie Execs Score $100 Million in Bonuses
Community Rescues Vet From Foreclosure After TV Story Airs

%Gallery-139176%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.

 

Permalink | Email this | Comments

]]>fannie maeFHA loansFHA mortgagesfreddie macva loansThe Associated Press2011-11-16T10:49:00+00:00Candidates Put Housing Crisis at Fannie and Freddie's Doorstephttp://realestate.aol.com/blog/2011/11/10/candidates-put-housing-crisis-on-fannie-and-freddies-doorstep/http://realestate.aol.com/blog/2011/11/10/candidates-put-housing-crisis-on-fannie-and-freddies-doorstep/http://realestate.aol.com/blog/2011/11/10/candidates-put-housing-crisis-on-fannie-and-freddies-doorstep/#commentsFiled under: ,





Discussion of the housing crisis took up a significant chunk of Wednesday's GOP primary debate, with candidates expressing their views on the sluggish market and how they aim to fix it.

Until Wednesday, housing had been something of a ghost issue this primary season. But with 4 million homeowners delinquent on their loans and about 23 percent of them underwater, candidates were bound to confront the issue sooner or later. CNBC's "Your Money, Your Vote" debate nudged them into doing just that Wednesday.

While detailed proposals were mostly absent from discussion, many of the candidates said that Fannie and Freddie, government-sponsored mortgage-holders who own or guarantee a majority of the country's mortgages, must go.

"I would find a way to unwind Fannie and Freddie Mac such that the marketplace can determine the future of the housing market," said businessman Herman Cain.

"We need to put them back into bankruptcy," added Minnesota Congresswoman Michele Bachmann later in the debate.

During the debate, candidates claimed that the government's hand in the housing market, extended in the form of the two mortgage giants, disrupts natural market forces and leads to doomed-to-fail loans.

Former Massachusetts Gov. Mitt Romney (pictured above right, with Newt Gingrich) reasserted his strong opposition to any government action aimed at fixing the housing crisis, asking rhetorically, should the "federal government go out and buy all the homes in the country?"

"You'll see home prices come back up if we allow this market to work," he said.

Bachmann was particularly critical of Fannie and Freddie, railing against them for continually requesting bailouts that have already run far over $100 billion and could ultimately exceed $200 billion. She also attacked Fannie and Freddie for paying million-dollar bonuses to their executives, calling it "crony capitalism."

Asked about his role as a consultant to Freddie in 2006, when his company was paid $300,000, former Speaker of the House Newt Gingrich said, "I offered them advice on precisely what they didn't do." Gingrich, who said there was a "good case for breaking up" Fannie Mae and Freddie Mac, also denied ever lobbying for them.

While the candidates almost uniformly said that they would halt mainstream mortgage assistance to homeowners, they provided little insight into how they would accomplish the task. For his part, Cain outlined a general plan, saying that he would reduce the scope of Fannie and Freddie and then turn them into private companies.

Republicans have already proposed legislation designed to weaken Fannie and Freddie's dominance in the mortgage market by forcing the organizations, which currently guarantee mortgages at reduced rates in order to foster homeownership, to charge the same guarantee rates as private investors.

Also see:
Republican Candidates: Short on Housing Policy, Long on Houses
Viewpoint: Housing Is Ghost Issue in Presidential Race
132 Rms, Riv Vu: What If You Could Rent the White House?

%Gallery-137417%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find homes for rent in your area.

 

Permalink | Email this | Comments

]]>Fannie MaeFreddie Macgop debate housingHerman Cain housinghousing gop debatehousing republican debateMichele Bachmann housingMitt Romney housingNewt Gingrich Fannie MaeNewt Gingrich housingrepublican debate housingTeke Wiggin2011-11-10T13:00:00+00:00Home Prices Drop in Nearly 3/4 of U.S. Citieshttp://realestate.aol.com/blog/2011/11/10/home-prices-drop-in-nearly-3-4-of-u-s-cities/http://realestate.aol.com/blog/2011/11/10/home-prices-drop-in-nearly-3-4-of-u-s-cities/http://realestate.aol.com/blog/2011/11/10/home-prices-drop-in-nearly-3-4-of-u-s-cities/#commentsFiled under: , , ,

home valuesWASHINGTON -- Home prices dropped in nearly three quarters of U.S. cities over the summer, dragged down by a decline in buyer interest and a high number of foreclosures.

The National Association of Realtors said Wednesday that the median price for previously occupied homes fell in the July-September quarter in 111 out of 150 metropolitan areas tracked by the group. Prices are compared with the same quarter from the previous year.

Fourteen cities had double-digit declines. The median price in Mobile, Ala. dropped 17.7 percent, the largest of all declines. Phoenix and Allentown, Pa., Atlanta, Las Vegas and Miami also experienced steep declines.

Eight cities saw double-digit price increases. The largest was in Grand Rapids, Mich., where the median price rose 23.7 percent. South Bend, Ind., Palm Bay, Fla., and Youngstown, Ohio, also saw large price increases.


The national median home price was $169,500 in the third quarter, down 4.7 percent from the same period last year.

Most analysts say that prices will sink further because unemployment remains high and millions of foreclosures are expected to come onto the market over the next few years.

Sales of previously occupied homes dropped to a seasonally adjusted annual rate of 4.88 million in the third quarter, slightly ahead of last year's pace for the same period. Sales were lower than usual for the summer season last year because a federal tax credit inspired more buying in the spring.

This year, sales are on pace to finish behind last year's total, which was the lowest in 13 years.

Sales are low even though the average rate on the 30-year fixed mortgages is hovering near 4 percent.

Regionally, the median home price in the Midwest fell 2.2 percent to $142,300 in the quarter from the year before, even as sales activity jumped 25 percent. In the South, the median price also slid 2.2 percent to $153,200 and home sales increased 15.5 percent.

The Northeast's median home price dipped 6.5 percent during the period to $236,700, as sales rose from the previous year by 11.6 percent. The median home price in the West dropped by 9 percent to $205,700 in the third quarter from a year ago. Sales there increased 16.7 percent.

Copyright 2011 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

Also see:
Where Are the Real Home Bargains? Not Where You Think!
Mortgage Rates Stay Low, But Homebuyers Aren't Budging
Top 10 Cities For Military Retirement

%Gallery-138464%

 

Permalink | Email this | Comments

]]>home prices drophome valueshousing markethousing outlookmetro home pricesNAR home pricesNational Association of RealtorsThe Associated Press2011-11-10T07:00:00+00:00Mortgage Rates Stay Low, But Homebuyers Aren't Budginghttp://realestate.aol.com/blog/2011/11/04/mortgage-rates-stay-low-but-buyers-arent-budging/http://realestate.aol.com/blog/2011/11/04/mortgage-rates-stay-low-but-buyers-arent-budging/http://realestate.aol.com/blog/2011/11/04/mortgage-rates-stay-low-but-buyers-arent-budging/#commentsFiled under: , , ,

mortgage ratesWASHINGTON -- The average rate on the 30-year fixed mortgage fell to 4 percent this week, nearly matching the all-time low hit just one month ago.

Freddie Mac said Thursday that the rate on the 30-year loan dropped from 4.10 percent last week. Four weeks ago, it dropped to 3.94 percent -- the lowest rate ever, according to the National Bureau of Economic Research.

The average rate on the 15-year fixed mortgage fell to 3.31 percent from 3.38 percent. Four weeks ago, it too hit a record low of 3.26 percent.

Mortgage rates tend to track the yield on the 10-year Treasury note. They yield fell this week after investors shifted money out of stocks and into the safety of Treasurys on fears that Europe's debt crisis could worsen.

The Federal Reserve is also shifting more money into longer-term Treasurys to try to force mortgage rates lower. Treasury yields fall when buying activity increases.

Less Home Buying Than Expected

Federal Reserve Chairman Ben Bernanke said Wednesday that low rates have failed to spur the increase in home buying or mortgage refinancing that government officials had expected.

High unemployment and declining wages have made it harder for many people to qualify for loans. Many Americans don't want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have.

%Gallery-137999%
The number of Americans who bought previously occupied homes fell in September and is on pace to match last year's dismal figures -- the worst in 13 years.

Sales of new homes rose last month after four straight monthly declines. But the increase was largely because builders cut their prices. And it followed a peak buying season that was the worst on records going back nearly 50 years.

A Run on Refinancing

The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent.

Rates have been below 5 percent for all but two weeks in the past year. Just five years ago they were closer to 6.5 percent. Ten years ago, they were above 8 percent.

The average rate on the five-year adjustable loan fell to 2.96 percent from 3.08 percent. That matches a record low hit four weeks ago.

The average rate on the one-year adjustable loan declined to 2.88 percent from 2.90 percent. It fell last month to 2.81 percent, the lowest on records dating to 1984.

The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year fixed mortgage fell from 0.8 to 0.7. The average fee on the 15-year fixed loan was unchanged at 0.7. The average fees on the five-year adjustable loan one-year adjustable loan were also unchanged at 0.6.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

Copyright 2011 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

Also see:
Open Houses of the Week: Hobnob With the 1 Percent
Where Are the Real Home Bargains? Not Where You Think!
Mortgage Giant Asks Taxpayers for Another $6 Billion

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.

 

Permalink | Email this | Comments

]]>Ben Bernanke mortgage ratesFreddie Maclow mortgage rates housing marketmorgage rates home buyingmortgage ratesMortgage Rates Stay Lowmortgage rates treasury notesyield on the 10-year Treasury noteThe Associated Press2011-11-04T09:45:00+00:00Mortgage Giant Asks Taxpayers for Another $6 Billionhttp://realestate.aol.com/blog/2011/11/03/freddie-mac-asks-taxpayers-for-another-6-billion/http://realestate.aol.com/blog/2011/11/03/freddie-mac-asks-taxpayers-for-another-6-billion/http://realestate.aol.com/blog/2011/11/03/freddie-mac-asks-taxpayers-for-another-6-billion/#commentsFiled under: , ,

WASHINGTON -- Government-controlled mortgage giant Freddie Mac has requested $6 billion in additional aid after posting a wider loss in the third quarter.

Freddie Mac said Thursday that it lost $6 billion, or $1.86 per share, in the July-September quarter. That compares with a loss of $4.1 billion, or $1.25 a share, in the same quarter of 2010.

The government rescued McLean, Va.-based Freddie Mac and sibling company Fannie Mae in September 2008 after massive losses on risky mortgages threatened to topple them. Since then, a federal regulator has controlled their financial decisions.

Taxpayers have spent about $169 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates that it will cost at least $51 billion more to support the companies through 2014, and as much as $142 billion in the most extreme case.

Freddie and Washington-based Fannie own or guarantee about half of all U.S. mortgages, or nearly 31 million home loans worth more than $5 trillion. Along with other federal agencies, they backed nearly 90 percent of new mortgages over the past year.

The two mortgage giants buy home loans from banks and other lenders, package them into bonds with a guarantee against default, and then sell them to investors around the world. When property values drop, homeowners default - either because they are unable to afford the payments or because they owe more than the property is worth. Because of the guarantees, Fannie and Freddie must pay for the losses.

Fewer foreclosures and delays in foreclosure processing because of a yearlong government investigation into mortgage lending practices have reduced the companies' projected losses.

Fannie and Freddie are required to pay 10 percent dividends on the government money they receive. Freddie paid $1.6 billion in dividends to the Treasury Department in the July-September quarter.

Pressure continues on the government to eliminate Fannie and Freddie and reduce taxpayers' exposure to risk. The Treasury Department put forward a plan in February to slowly dissolve Fannie and Freddie, although that process could take years. Abolishing Fannie and Freddie would transform how homes are bought and redefine who can afford them.

Copyright 2011 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

Also see:
Watchdog: Fannie, Freddie Knew of Robo-Signing in 2003
Is 'Occupy' Ready to Move Into Foreclosed Homes?
Victims of Robo-Signing: Fight the Machine!

%Gallery-137999%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.

 

Permalink | Email this | Comments

]]>fannie maefreddie macfreddie mac bailoutmortgage crisisThe Associated Press2011-11-03T10:15:00+00:00Are Low Mortgage Rates Killing the Housing Market?http://realestate.aol.com/blog/2011/10/31/are-low-mortgage-rates-killing-the-housing-market/http://realestate.aol.com/blog/2011/10/31/are-low-mortgage-rates-killing-the-housing-market/http://realestate.aol.com/blog/2011/10/31/are-low-mortgage-rates-killing-the-housing-market/#commentsFiled under: , , , , , ,

This may fall under the category of "too much of a good thing," but there is growing sentiment that the historically low interest rates on mortgages are actually fueling the stagnation of the housing market.

By keeping rates low, the hope was that more people would be motivated to buy homes. And when that didn't happen, fingers of blame were pointed in the direction of more stringent lending standards. People can't qualify for loans, can't avail themselves of the low rates -- so went the bank-bashing.

But along came some numbers that tell a different story. Yes, lending standards are making it tougher to qualify for loans now, but the reality is that fewer people are even trying. The national Mortgage Bankers Association, which tracks new mortgage applications weekly, says those applications were down 14.9 percent last week from one week earlier. The group expects to see mortgage originations fall from an estimated $1.2 trillion in 2011 to $900 billion in 2012.

Could it be that when Federal Reserve Chairman Ben Bernanke announced that the low interest rates would be around through 2013, buyers just plopped back on their couches waiting to see if the housing prices would fall even further?

The 'Luxury of Waiting'

"By keeping rates low for two years, you gave buyers the luxury of waiting to see if the market is at the bottom," says Paul Habibi, professor of real estate at UCLA's Anderson School of Business Management. "Why wouldn't you wait if you were a buyer?" he asks. "There are no expectations of home value appreciation, so all that low interest rates have done is create a big holding pattern in buyer behavior."

So should we be praying for rates to start creeping up?

"Rising rates are absolutely a better motivator than falling ones," says Dan Green, loan officer with Waterstone Mortgage, who runs the award-winning TheMortgageReports.com website. He notes that for the second straight year, low rates sparked a boom in refis, but did little to help the purchase market.

It's kind of maddening for mortgage guys like Green who underscore that a 1 percent mortgage rate drop, like the one we've had since last year, translates into an instant 11 percent increase in purchasing power.

"Falling mortgage rates do more to help home affordability than falling home prices," he says. Yet still no one is buying.

Which leads to the next line of thinking: If lower interest rates immobilized buyers, might not rising rates serve as a cattle prod? A few good pokes in the bellies of reluctant buyers might just get them off the couch and back into the game.

Also see:
Want a Mortgage? Avoid These 8 Mistakes
Upside Down on Your First House? Just Buy a Second One!
Mortgage Mod Hell: Trapped Between Lenders, Collectors

%Gallery-137795%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.

 

Permalink | Email this | Comments

]]>Ben Bernanke mortgage ratesDan Green Waterstone Mortgagehome saleslow mortgage ratesmortgagesrefinance your homerefinancingrising mortgage ratesTheMortgageReports.comAnn Brenoff2011-10-31T11:00:00+00:00Happy End of the Road for RVers: Assisted Living on Wheelshttp://realestate.aol.com/blog/2011/10/28/happy-end-of-the-road-for-rvers-assisted-living-on-wheels/http://realestate.aol.com/blog/2011/10/28/happy-end-of-the-road-for-rvers-assisted-living-on-wheels/http://realestate.aol.com/blog/2011/10/28/happy-end-of-the-road-for-rvers-assisted-living-on-wheels/#commentsFiled under: , , , ,




Pearl and Bud Crispell hit the road in their RV the day after they retired in 1976. And for decades, that's where they stayed, living in their 40-foot motor home and traversing the country at will.

But, as is the eventual story of all road warriors, the day came when they hit the proverbial dead end. Unable to manage some aspects of their life and care, living on fixed incomes and not wanting to become a burden to friends and relatives, the Crispells pulled in to the country's only assisted-living RV Park, the Escapees Care Center in Livingston, Texas. The nonprofit adult day care and residency program, featured in a Columbia University News 21 profile, bills itself as a refuge for RVers whose travels are permanently ended because of age or temporarily interrupted because of an illness.

For a monthly fee of $824 per person, or $1,236 a couple, residents get a spot to park their wheeled homes; three meals a day, every day; two loads of laundry service a week; light housekeeping of their unit; transportation to medical appointments; and access to registered nurses on call 40 hours a week.

The Care Center also functions as a land-based community hub for the residents, providing daily activities, concerts, and a place to socialize. Not to mention a chance to get behind the wheel again: Last Father's Day, residents competed in blind golf cart races. The drivers had to be legally blind or wear a blindfold while their sighted navigators yelled directions around an obstacle course of parking cones.

At 93 and 90, Pearl, a retired nurse, and Bud, a former IBM engineer, are not without age-related health issues. But her mind is "sharper than my husband wishes it was," Pearl says. And she has no desire to trade the small confines of their RV for a bigger "land-based residence," as Escapees call conventional houses. "We didn't retire to entertain our family," she says.

Right now the center's 35 sites are all occupied, by vehicles ranging from minivans to 40-footers. Each unit has its own fresh water supply and a private septic system. While a few residents are in their 90s, most are in the mid- to late 80s, says Robert Brinton, the facility's executive director and on-site manager. The center doesn't have a waiting list or immediate plans to expand. Openings occur and there just always seems to be someone who wants it, he said.

%Gallery-137634%
Brinton himself joined the Escapees RV Club in 2000 precisely because it has the Care Center. The 60,000-member strong club is founded on the "caring and sharing" principle, which appealed to him, Brinton says. Member donations built the Care Center, which has no mortgage and is thus able to keep expenses low.

The trend toward the "village" approach to aging in place is growing, says Nancy Thompson, senior media relations manager for AARP. She defines it as "co-housing" with a self-selected group of people who build a community together. It allows people to stay in their homes by providing easy access to services, especially transportation. Villages like this "are springing up all over the country," she said.

Other co-housing units --also known as affinity communities -- exist based on other shared commonalities. In Burbank, CA., the Burbank Senior Arts Colony is home to retired artists, musicians, actors and writers. The high-end Rainbow Vision in Santa Fe, N.M., is home to gay, lesbian, bisexual and transgender residents. In addition to its assisted living, it has a cabaret, an award-winning restaurant and a spa, reports AARP.

An AARP story notes that "With 3 million GLBT older Americans -- a figure projected to nearly double by 2030 -- and typically no adult children to care for them, such communities are expected to multiply."

To watch a News 21 video featuring the Crispells, click here.

Also see:
Baby Boomers Launch Remodeling Boom
Rent Your Way to Retirement With a 'Rental Mortgage'
Gay Housing Project Slated for Palm Springs

%Gallery-114282%
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Find rentals in your area.

 

Permalink | Email this | Comments

]]>alternative livingassisted livingassisted living homesEscapees Care CenterEscapees RV ClubLivingston Texasretirementretirement homesRV lifeRV livingAnn Brenoff2011-10-28T08:55:00+00:00Gazillionaire Larry Ellison Lists Mansion at a Loss, Ho-Humhttp://realestate.aol.com/blog/2011/10/26/gazillionaire-larry-ellison-lists-mansion-at-a-loss-ho-hum/http://realestate.aol.com/blog/2011/10/26/gazillionaire-larry-ellison-lists-mansion-at-a-loss-ho-hum/http://realestate.aol.com/blog/2011/10/26/gazillionaire-larry-ellison-lists-mansion-at-a-loss-ho-hum/#commentsFiled under: , , , , ,



Don't cry for him Argentina, for the truth is he never visited you anyway. Gazillionaire Larry Ellison has listed his Woodside, Calif., property at $19 million, which is a few million less than he reportedly paid in 2005. Sorry, we're still not crying here; Forbes puts his wealth at about $33 billion, so this is chump change.

Ellison, co-founder and CEO of Oracle, owns multiple homes and while he used this estate to hold his fourth wedding -- a marriage since ended -- he never lived here full time. Nevertheless, it's an awful nice mansion -- if but one of many owned by the flamboyant software king.

The main home on the property is a two-story Colonial with about 5,800 square feet, built in 1968. The gated compound has almost seven acres and loaded with spacious lawns, mighty pretty gardens and lots of equestrian trails. There is a dark-bottom swimming pool rimmed with rock waterfalls and stepping stones across the water. The property has a beach volleyball court, a private guest house and two barns housing nine stalls, each with private turnout. Since Ellison is a major tennis buff -- or at least likes to watch it -- we assume there is a tennis court somewhere here as well.

%Gallery-137618%
The most surprising thing for us about this property was to learn it isn't the most expensive place in Woodside. Maybe that's why Ellison, who owns more properties than any one real estate writer can possibly be expected to keep track of, has put it on the market. We know that he has the best house on Malibu's best beach -- an affair built from five contiguous properties he snapped up for a couple of hundred million -- and we know that last spring he bought a San Francisco neighbor's adjacent home for $40 million (heck, can you really put a price tag on having an unobstructed view?). Ellison also had his Atherton, Calif., estate -- the one that he built to replicate a 16th century Japanese tea house -- listed a few years ago for $16 million. Records show he no longer owns it, but offer no clues what it sold for or to whom. And then of course there was his purchase last January of the Porcupine Creek estate in Rancho Mirage for a reported $42.9 million. Nice golf course and all.

We are sure there are other homes -- not to mention the yachts -- but listing them would only raise the question of just how many homes does one actually need. Perhaps it's time to do a real estate purge.

Brent Gullixson of Alain Pinel Realtors and Mary Gullixsen of Unique Homes share the Woodside listing.

Click on the images below to see other Woodside, Calif., homes for sale.



More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
See celebrity real estate.

 

Permalink | Email this | Comments

]]>Carbon BeachLarry EllisonOracle Corp.Oracle CorporationWoodside Ca.Ann Brenoff2011-10-26T14:55:00+00:00