Late mortgage payments, foreclosures rise in Texas
12:00 AM CDT on Friday, August 21, 2009
Texans continued to fall behind on their mortgage payments in the second quarter, and more than one in 10 Texas mortgages are late or in foreclosure.
At the end of June, 8.79 percent of residential mortgages in the state had delinquent payments and 1.84 percent went into foreclosure, the Mortgage Bankers Association reported Thursday.
Both figures rose compared with the first quarter.
Nationwide, a record 9.24 percent of residential loans were delinquent in the quarter. The closely watched measure includes all mortgages that are at least one payment behind. Texas ranks 17th nationally among states when ranked by the percentage of late mortgage payments.
The national average foreclosure rate in the second quarter was 3 percent.
Just four states – California, Florida, Arizona and Nevada – accounted for 44 percent of the nation's new home foreclosures during the second quarter, the Washington, D.C.-based trade group said.
"Florida continues to establish itself as the worst state in the union for mortgage performance, closely followed only by Nevada," said Jay Brinkmann, MBA's chief economist.
In Florida, 22.8 percent of mortgages were delinquent or in foreclosure, and in Nevada 21.3 percent of home loans have past-due payments or are in foreclosure.
In Texas, most of the loans facing foreclosure are subprime mortgages. In the second quarter, 28.49 percent of subprime adjustable-rate loans in the state were past due. That compares with an 8.18 percent delinquency rate for prime mortgages statewide.
About 30 percent of Texas mortgage holders are considered nonprime borrowers, compared with only 19 percent nationwide.
In areas where homeowners now owe more than their property is worth, the potential for foreclosure is larger. In the Dallas-Fort Worth area, just over 30 percent of mortgage holders are underwater, the latest reports show.
"In some areas where a number of borrowers have mortgages that are larger than the current value of their homes, any life events such a divorce or loss of a job are likely to translate into foreclosures until prices in those areas recover, not just flatten," Brinkmann said.
"As for the outlook, it is unlikely we will see meaningful reductions in the foreclosure and delinquency rates until the employment situation improves."
Cited from the Dallas Morning News
Showing posts with label Interest rate. Show all posts
Showing posts with label Interest rate. Show all posts
Monday, August 24, 2009
Thursday, January 15, 2009
Mortgage Applications Rise as Refinancing Jumps
Mortgage Applications Rise as Refinancing Jumps
U.S. mortgage applications jumped in the first full week of 2009 as record low interest rates spurred the greatest demand for home refinancing loans in over 5-1/2 years, data from an industry group showed on Wednesday.
Low mortgage rates, however, have yet to fuel demand for loans to purchase homes.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Jan. 9 increased 15.8 percent to 1,324.8, the highest reading since the week ended July 11, 2003, when it reached 1,358.2.
Thirty-year mortgage rates have dropped dramatically since the Federal Reserve unveiled a plan in late November to buy as much as $500 billion of mortgage securities backed by Fannie Mae [FNM 0.66 -0.03 (-5.06%) ], Freddie Mac [FRE 0.65 -0.05 (-6.56%) ] and Ginnie Mae.
The program also entails buying up to $100 billion of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
The refinance share of applications increased to 85.3 percent from 79.8 percent the previous week, the highest level since the MBA started conducting its survey in 1990.
Spencer Rascoff, chief operating officer at Zillow.com, an online real estate service company based in Seattle, said loan requests to his company are up more than 200 percent from just two months ago, with loan requests on pace to hit about 25,000 in January and loan quotes on pace to hit 200,000.
"Many experts agree that rates will stay relatively low for at least the next few months since the federal government is now committed to buying mortgage-backed securities to keep borrowing costs low," Rascoff said on Tuesday.
"But the future of rates isn't certain, so locking in these low rates now is a smart move," he said.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.89 percent, down 0.18 percentage point from the previous week, the lowest level recorded in the MBA's survey's history.
Interest rates were well below year-ago levels of 5.77 percent.
"Our business has definitely increased dramatically in the past few weeks with rates dropping," Melissa Cohn, chairman and chief executive CEO of Manhattan Mortgage Company in New York, said on Tuesday.
Cohn said the telephones at her company have been ringing off the hook and while the company has not hired additional staff, it has retained as many people as possible.
"We are just working twice as hard to handle the increased volume," she said.
Meanwhile, though, the MBA's seasonally adjusted purchase index fell 14.1 percent to 295.8.
The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 10.8 percent.
Weekly Refinancing Activity Surges
The prospect of affordable home financing has provided a glimmer of hope for the U.S. economy with the housing market in the worst downturn since the Great Depression.
Mortgages
30 yr fixed 5.09% 5.25%
30 yr fixed jumbo 6.79% 6.91%
15 yr fixed 4.73% 4.95%
15 yr fixed jumbo 5.73% 5.83%
5/1 ARM 5.71% 5.16%
5/1 jumbo ARM 5.84% 5.10%
The Mortgage Bankers seasonally adjusted index of refinancing applications jumped 25.6 percent to 7,414.1, the highest reading since the week ended June 27, 2003, when it reached 8,599.1.
The adjustable-rate mortgage share of activity increased to 1.1 percent, up from 0.9 percent the previous week.
Fixed 15-year mortgage rates averaged 4.63 percent, down from 4.67 percent the previous week.
Rates on one-year ARMs decreased to 5.89 percent from 5.90 percent.
Copyright 2009 Reuters. Click for restrictions.
U.S. mortgage applications jumped in the first full week of 2009 as record low interest rates spurred the greatest demand for home refinancing loans in over 5-1/2 years, data from an industry group showed on Wednesday.
Low mortgage rates, however, have yet to fuel demand for loans to purchase homes.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Jan. 9 increased 15.8 percent to 1,324.8, the highest reading since the week ended July 11, 2003, when it reached 1,358.2.
Thirty-year mortgage rates have dropped dramatically since the Federal Reserve unveiled a plan in late November to buy as much as $500 billion of mortgage securities backed by Fannie Mae [FNM 0.66 -0.03 (-5.06%) ], Freddie Mac [FRE 0.65 -0.05 (-6.56%) ] and Ginnie Mae.
The program also entails buying up to $100 billion of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
The refinance share of applications increased to 85.3 percent from 79.8 percent the previous week, the highest level since the MBA started conducting its survey in 1990.
Spencer Rascoff, chief operating officer at Zillow.com, an online real estate service company based in Seattle, said loan requests to his company are up more than 200 percent from just two months ago, with loan requests on pace to hit about 25,000 in January and loan quotes on pace to hit 200,000.
"Many experts agree that rates will stay relatively low for at least the next few months since the federal government is now committed to buying mortgage-backed securities to keep borrowing costs low," Rascoff said on Tuesday.
"But the future of rates isn't certain, so locking in these low rates now is a smart move," he said.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.89 percent, down 0.18 percentage point from the previous week, the lowest level recorded in the MBA's survey's history.
Interest rates were well below year-ago levels of 5.77 percent.
"Our business has definitely increased dramatically in the past few weeks with rates dropping," Melissa Cohn, chairman and chief executive CEO of Manhattan Mortgage Company in New York, said on Tuesday.
Cohn said the telephones at her company have been ringing off the hook and while the company has not hired additional staff, it has retained as many people as possible.
"We are just working twice as hard to handle the increased volume," she said.
Meanwhile, though, the MBA's seasonally adjusted purchase index fell 14.1 percent to 295.8.
The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 10.8 percent.
Weekly Refinancing Activity Surges
The prospect of affordable home financing has provided a glimmer of hope for the U.S. economy with the housing market in the worst downturn since the Great Depression.
Mortgages
30 yr fixed 5.09% 5.25%
30 yr fixed jumbo 6.79% 6.91%
15 yr fixed 4.73% 4.95%
15 yr fixed jumbo 5.73% 5.83%
5/1 ARM 5.71% 5.16%
5/1 jumbo ARM 5.84% 5.10%
The Mortgage Bankers seasonally adjusted index of refinancing applications jumped 25.6 percent to 7,414.1, the highest reading since the week ended June 27, 2003, when it reached 8,599.1.
The adjustable-rate mortgage share of activity increased to 1.1 percent, up from 0.9 percent the previous week.
Fixed 15-year mortgage rates averaged 4.63 percent, down from 4.67 percent the previous week.
Rates on one-year ARMs decreased to 5.89 percent from 5.90 percent.
Copyright 2009 Reuters. Click for restrictions.
Monday, January 12, 2009
Local market from my perspective
From Thanksgiving to the end of January, the Real Estate Market has typically been very slow. This year is no exception.
Not to say that I haven't been selling, just selling a lot less than I normally do. The economy overall has been taking a pounding. Enough to shut down car manufacturers for short time periods which I never thought would happen.
When buyers are cautious about buying a sweater, television or even a car, can you imagine their thoughts about buying a house? We are all in this market together so I'm sure you understand where I'm coming from.
The good news for our market is #1. House prices in our market have not taken a beating. Are we down a little in value? Sure. But it is a slight correction and our home prices are stable and sound and have paved the way for #2. We have a strong job market. Business is moving out of high priced areas and coming to places where cost of living is much less. Dallas is the 3rd strongest market right now behind Seattle and Houston. #3. Business relocation will continue to bring new buyers into our market and builders have slowed with oversupply. This should start healing the balance between supply and demand.
Call me and lets talk your real estate needs through. Thanks JJ.
Not to say that I haven't been selling, just selling a lot less than I normally do. The economy overall has been taking a pounding. Enough to shut down car manufacturers for short time periods which I never thought would happen.
When buyers are cautious about buying a sweater, television or even a car, can you imagine their thoughts about buying a house? We are all in this market together so I'm sure you understand where I'm coming from.
The good news for our market is #1. House prices in our market have not taken a beating. Are we down a little in value? Sure. But it is a slight correction and our home prices are stable and sound and have paved the way for #2. We have a strong job market. Business is moving out of high priced areas and coming to places where cost of living is much less. Dallas is the 3rd strongest market right now behind Seattle and Houston. #3. Business relocation will continue to bring new buyers into our market and builders have slowed with oversupply. This should start healing the balance between supply and demand.
Call me and lets talk your real estate needs through. Thanks JJ.
Monday, December 15, 2008
DFW Home Sales Drop
Dallas-Fort Worth home sales drop 33%
11:42 PM CST on Tuesday, December 9, 2008
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Sales of pre-owned homes in North Texas dropped by a stunning 33 percent in November as worries about the national economy kept homebuyers on the sidelines.
The decline in local home sales from last year is the largest since records have been kept and is evidence that the national housing downturn is finally hitting Texas.
The median price of homes sold in North Texas was also down, by 7 percent – more than double the rate so far this year, according to statistics released Tuesday by Texas A&M University's Real Estate Center and North Texas Real Estate Information Systems Inc.
November's drop in home sales compared with last year was almost double the decline in October.
"Not just Realtors but also builders noted that November sales and traffic were extremely weak," said D'Ann Petersen, an economist with the Federal Reserve Bank of Dallas. "There were reports from builders that cancellations were outpacing closings, and some buyers were just walking away leaving deposits.
"With economic and financial worries at the forefront, buying a home is definitely one of the last things on consumers' minds at this point."
And homebuyers haven't been wooed to the market by lower interest rates and bargain pricing.
"A lot of buyers have been spooked by the downturn in the credit and equities markets and just don't have the confidence to close today," said Dallas-based housing analyst Ted Wilson of Residential Strategies Inc.
"Most builders say that the buyers are looking for some good news to give them confidence to purchase, only the news continues to be bad."
The dips keep coming
North Texas real estate agents sold just 4,146 pre-owned homes last month through the industry's Multiple Listing Service. That's the lowest monthly total in more than five years.
And last month's median home sales price of $133,900 is down 15 percent from the peak in the summer of 2007.
The decline in overall home prices is partly due to the large number of sales of foreclosed homes. The National Association of Realtors reports that in the third quarter, more than 40 percent of home sales nationwide were distressed properties.
Ms. Petersen said foreclosed home sales by lenders are also affecting the North Texas market and no doubt contributed to November's larger-than-expected price declines.
"It is unwelcome news for an industry that has been hurting for some time," she said. "Hopefully, though, we will not see the double-digit declines that have been recorded in some other areas of the country, where job losses are steep and foreclosure rates are much higher."
Through the first 11 months of 2008, real estate agents have sold just over 71,000 homes in the 26-county area, a decline of 14 percent from the same period of 2007.
The drop in condominium sales in November was even steeper than in the single-family market – down 44 percent.
On a positive note
The one bit of positive news in the latest local housing report is that there was a significant decline in the number of homes listed for sale.
A total of 39,255 single-family homes are on the market in North Texas. That's a decline of 14 percent from November 2007 and the lowest total in more than three years.
The average time it takes to sell a house was unchanged at 80 days.
Longtime Dallas real estate agent Barry Hoffer said the November sales drop reflects a slowdown that hit when the stock market began to drop in late September.
"Buyers have become apprehensive in making a decision to purchase a new home with the constant bombardment from the news media about layoffs, bailouts and impending bankruptcies," said Mr. Hoffer, who works with Ebby Halliday Realtors. "This too shall pass, and we look forward to an improving local housing market by spring."
Jim Fite, president of Dallas-based Century 21 Judge Fite Realtors, said home sales are traditionally slow before a presidential election, and this year there were added worries about the stock market and the economy.
"It's a really a perfect storm," he said. "Buyers are sitting on the fence."
There's talk in Washington about cutting mortgage rates, which could be holding homebuyers back while they wait for lower rates, he said.
And, Mr. Fite said, November's grim report shouldn't be taken out of context. "As we know, a single month does not make a market."
11:42 PM CST on Tuesday, December 9, 2008
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
Sales of pre-owned homes in North Texas dropped by a stunning 33 percent in November as worries about the national economy kept homebuyers on the sidelines.
The decline in local home sales from last year is the largest since records have been kept and is evidence that the national housing downturn is finally hitting Texas.
The median price of homes sold in North Texas was also down, by 7 percent – more than double the rate so far this year, according to statistics released Tuesday by Texas A&M University's Real Estate Center and North Texas Real Estate Information Systems Inc.
November's drop in home sales compared with last year was almost double the decline in October.
"Not just Realtors but also builders noted that November sales and traffic were extremely weak," said D'Ann Petersen, an economist with the Federal Reserve Bank of Dallas. "There were reports from builders that cancellations were outpacing closings, and some buyers were just walking away leaving deposits.
"With economic and financial worries at the forefront, buying a home is definitely one of the last things on consumers' minds at this point."
And homebuyers haven't been wooed to the market by lower interest rates and bargain pricing.
"A lot of buyers have been spooked by the downturn in the credit and equities markets and just don't have the confidence to close today," said Dallas-based housing analyst Ted Wilson of Residential Strategies Inc.
"Most builders say that the buyers are looking for some good news to give them confidence to purchase, only the news continues to be bad."
The dips keep coming
North Texas real estate agents sold just 4,146 pre-owned homes last month through the industry's Multiple Listing Service. That's the lowest monthly total in more than five years.
And last month's median home sales price of $133,900 is down 15 percent from the peak in the summer of 2007.
The decline in overall home prices is partly due to the large number of sales of foreclosed homes. The National Association of Realtors reports that in the third quarter, more than 40 percent of home sales nationwide were distressed properties.
Ms. Petersen said foreclosed home sales by lenders are also affecting the North Texas market and no doubt contributed to November's larger-than-expected price declines.
"It is unwelcome news for an industry that has been hurting for some time," she said. "Hopefully, though, we will not see the double-digit declines that have been recorded in some other areas of the country, where job losses are steep and foreclosure rates are much higher."
Through the first 11 months of 2008, real estate agents have sold just over 71,000 homes in the 26-county area, a decline of 14 percent from the same period of 2007.
The drop in condominium sales in November was even steeper than in the single-family market – down 44 percent.
On a positive note
The one bit of positive news in the latest local housing report is that there was a significant decline in the number of homes listed for sale.
A total of 39,255 single-family homes are on the market in North Texas. That's a decline of 14 percent from November 2007 and the lowest total in more than three years.
The average time it takes to sell a house was unchanged at 80 days.
Longtime Dallas real estate agent Barry Hoffer said the November sales drop reflects a slowdown that hit when the stock market began to drop in late September.
"Buyers have become apprehensive in making a decision to purchase a new home with the constant bombardment from the news media about layoffs, bailouts and impending bankruptcies," said Mr. Hoffer, who works with Ebby Halliday Realtors. "This too shall pass, and we look forward to an improving local housing market by spring."
Jim Fite, president of Dallas-based Century 21 Judge Fite Realtors, said home sales are traditionally slow before a presidential election, and this year there were added worries about the stock market and the economy.
"It's a really a perfect storm," he said. "Buyers are sitting on the fence."
There's talk in Washington about cutting mortgage rates, which could be holding homebuyers back while they wait for lower rates, he said.
And, Mr. Fite said, November's grim report shouldn't be taken out of context. "As we know, a single month does not make a market."
Tuesday, August 12, 2008
Who do you know?
Sellers are having a hard time getting their listings sold in todays turbulent market. Listings have to be professionally marketed in a troubled market.
My team lists our houses and MARKETS them to over 30 different websites, 2 different print publications, direct mail program and email program.
Who do you know that is struggling to get a home sold? Have them call me and I can look at their current marketing program for their house and advise them; no strings attached!
My team lists our houses and MARKETS them to over 30 different websites, 2 different print publications, direct mail program and email program.
Who do you know that is struggling to get a home sold? Have them call me and I can look at their current marketing program for their house and advise them; no strings attached!
Wednesday, January 30, 2008
Sellers: To make repairs or offer credits...
Sellers who anticipate losing money if they sell their home may wonder why they should spend a dime fixing the place up for sale. Isn't this throwing good money after bad? Even sellers with plenty of equity in their homes often figure the way to get the most out of the sale is to cut sale costs to a minimum.
This attitude is directly contrary to the notion that the way to make the most money on the sale of a home is by pricing the property appropriately for the market, and by making cost-effective improvements that will result in a higher sale price in a shorter time.
Job applicants don't show up for an important interview in tattered old clothes if they want to make a good impression, particularly if there were plenty of other qualified applicants. Likewise, if you wanted to get top dollar from the sale of a car you would have the car detailed so that it looked its best. The same principal applies to selling single-family homes.
Today, many housing markets have plenty of homes for sale and far too few buyers. For years, buyers competed with one another in order to buy a house. Now, in general, sellers are being forced to compete with other sellers in order to get their home sold.
Consider the competitive nature of the market when deciding if you're going to improve your home before selling it, and how much you'll invest. Keep in mind that the point of fixing up a home to sell is to maximize your return from the sale. Don't waste money on improvements that have little or no value to buyers.
This attitude is directly contrary to the notion that the way to make the most money on the sale of a home is by pricing the property appropriately for the market, and by making cost-effective improvements that will result in a higher sale price in a shorter time.
Job applicants don't show up for an important interview in tattered old clothes if they want to make a good impression, particularly if there were plenty of other qualified applicants. Likewise, if you wanted to get top dollar from the sale of a car you would have the car detailed so that it looked its best. The same principal applies to selling single-family homes.
Today, many housing markets have plenty of homes for sale and far too few buyers. For years, buyers competed with one another in order to buy a house. Now, in general, sellers are being forced to compete with other sellers in order to get their home sold.
Consider the competitive nature of the market when deciding if you're going to improve your home before selling it, and how much you'll invest. Keep in mind that the point of fixing up a home to sell is to maximize your return from the sale. Don't waste money on improvements that have little or no value to buyers.
Thursday, January 10, 2008
30-year fixed rate at 5.55%; 10-year Treasury yield at 3.78%
Long-term mortgage interest rates continued to fall Tuesday, and the benchmark 10-year Treasury bond yield dipped to 3.78 percent.
The 30-year fixed-rate average sank to 5.55 percent, and the 15-year fixed rate slid to 5.06 percent. The 1-year adjustable rate, however, was up at 5.34 percent.
The 30-year Treasury bond yield slipped to 4.31 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average tumbled 238.42 points, or 1.86 percent, finishing at 12,589.07. The Nasdaq lost 58.95 points, or 2.36 percent, closing at 2,440.51.
Stock figures are current as of 7:30 p.m. Eastern Standard Time.
Inman News
The 30-year fixed-rate average sank to 5.55 percent, and the 15-year fixed rate slid to 5.06 percent. The 1-year adjustable rate, however, was up at 5.34 percent.
The 30-year Treasury bond yield slipped to 4.31 percent.
Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.
Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states. Points on these mortgages range from zero to 3.5.
In other economic news, the Dow Jones Industrial Average tumbled 238.42 points, or 1.86 percent, finishing at 12,589.07. The Nasdaq lost 58.95 points, or 2.36 percent, closing at 2,440.51.
Stock figures are current as of 7:30 p.m. Eastern Standard Time.
Inman News
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