Housing Situation Improving, Affordability May Be Set To Switch Directions

The residential housing situation in the United States could be making significant strides, as industry experts think the market won't, or can't, get any more affordable than it is at the current moment, according to CNN Money.

Home prices are still 30 percent lower than the peak reached in 2006, and mortgage rates recently reached record low levels. However, many economists think that a home price bottom is on its way, which could not only mean that the effects from the recession have receded, but home prices may become more competitive.

"People can now see the light at the end of the tunnel," Doug Lebda, CEO of LendingTree, told the news source. "And that can be enough to get them off the fence."

Not only will rising home prices improve growth, but foreclosure drops may play a significant role, the news source noted. While distressed properties plagued the market in the early parts of the recession - especially after the housing bubble burst - figures show that delinquencies have declined markedly.

The report added that more Americans could be looking to get involved in the residential housing market, as purchasing a home is less expensive than renting.

Housing Market Looks To Have A Positive Future, Says NAHB

The National Association of Home Builders noted that the residential housing market has moved in a positive direction so far this year, and this should continue in the coming months.

There have been many mixed messages in the housing market in the past month, but some experts think this is purely due to the differences that can occur month-to-month, and shouldn't panic any industry members.

"No one is anticipating that an upward path for housing will run in a straight-line trajectory," said

David Crowe, chief economist for NAHB. "The economy is in an uneven recovery and we can expect some corresponding ups-and-downs in the housing market in the months ahead."

Home sales have been improving significantly, and housing starts are expected to trend up as the industry progresses into 2013, the report said. In addition, the commercial real estate industry is expected to continue its improvement into 2013, as well. Specifically, multifamily starts are projected to jump significantly from 2011 to 2013.

The report added that improving payrolls, along with further housing improvements, will be key to continued economic expansion and recovery.

Marketing Tips For Lenders When Attracting First-Time Homebuyers

A recent article from residential mortgage industry member Karen Deis noted that there are some tactics that lenders should use in order to pull first time homebuyers in when it comes to marketing.

Deis noted that it is important to get these consumers' attention to encourage them to make the plunge into the residential housing market.

Reminding consumers that their lease is not permanent is important, she said. At any point, a person can find out that their lease is not going to be renewed. Purchasing a home isn't difficult, and a person who buys a home would only need to put down approximately one month's rent and a security deposit to obtain a mortgage. Also, if a person starts now, instead of wasting cash on a rental property, they can end up owning their home much more quickly.

The National Association of Realtors recently released a report which noted that first-time homebuyers made up nearly one-third of all home purchases during February. While this is down slightly month-over-month and year-over-year, it is a large group of the market, and encouraging this section to buy could help improve sales significantly.

Explaining Plan B: HARP 2.0

HARP 1.0 was introduced in April 2009 by The Federal Housing Finance Agency (FHFA) and the Department of the Treasury. It was part of the Obama Administration’s Making Home Affordable program. It provided an option to borrowers who might not qualify for refinancing due to declining home values or reduced access to mortgage rates. In some cases, borrowers could refinance up to 125% of their mortgage into a lower interest rate and/or more stable mortgage product.

Borrowers who are underwater, and owe more than their home is worth, can utilize FHA Streamline or HARP to take advantage of low interest rates and other refinancing benefits. Nearly 894,000 borrowers had refinanced through HARP as of August 11, 2011. However, there are still many more homeowners that need help.

HARP 2.0 is designed to increase the number of homeowners who are able to refinance through this program. With the enhanced HARP 2.0, borrowers must meet the following criteria:

·         The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to:

http://www.FannieMae.com/loanlookup/ or calling 800-7FANNIE (8 a.m. to 8 p.m. ET)

https://ww3.FreddieMac.com/corporate/ or 800-FREDDIE (8 a.m. to 8 p.m. ET)

·         The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.

·         The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.

·         The current loan-to-value (LTV) ratio must be greater than 80%.

·         The borrower must be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months.

Based on these criteria, the FHFA estimates that there are 4 million loans that are eligible for refinance through the revised program. It is estimated that HARP 2.0 will be available by mortgage lenders in the first quarter of 2012.

Experts Positive About Improving Residential Housing Market with Early Warm Weather

Many industry members are increasing their hopes for a much-improved spring season when it comes to residential housing transaction volume, according to USA Today.

With the warm weather breaking out in most parts of the country, there may be an extension of the spring season, and this could translate to a larger number of homes sold. February home sales were up nearly 10 percent year-over-year, while confidence is up for industry members, the news source reported.

Home prices are projected to continue their decline, while some areas are expected to begin their climb back for the first time since the housing bubble burst.

"This spring will be the litmus test for housing demand," Steven Ricchiuto, chief economist for
Mizuho Securities USA, told the news source.

Not only are experts optimistic about the improving residential housing market, but many consumers feel the same way as well. According to Fannie Mae's latest edition of the Quarterly National Housing Survey, most of American renters are interested in purchasing a home at some point in the future. In addition, a majority of consumers think that the present is a good time to purchase a property.

NAR says February Home Sales Are Big Improvement From 2011

The National Association of Realtors noted that residential existing-home sales may have declined during February, but they are still higher than they were in 2011.

Existing-home sales dropped 0.9 percent during the month of February, according to the report. However, numbers were also up almost 9 percent from the same point in 2011. Low prices are bringing people into the market.

"The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market," said Lawrence Yun, chief economist for the NAR. "Although relatively unusual, there will be rising demand for both rental space and homeownership this year."

The median price for these homes was $156,600 during February, which was an increase of 0.3 percent year-over-year, the report said. When examining sales, distressed properties made up 34 percent of all homes sold during the month. This was lower than both January's and February 2011's figures.

The report echoes sentiments laid out in the most recent Housing Scorecard from the federal government. It noted that the market is making gradual improvements, overall. In addition, more refinance activity is occurring, which could help stop any increases in inventory.

St. Patrick’s Day Fun Facts

St. Patrick's Day is tomorrow and with it will come food, drink and merriment!  We are spreading the luck of the Irish with a few fun facts you may not have known.  No blarney-just the facts!  You're sure to impress everyone at the pub with these little treasures!

• The very first St. Patrick's Day parade was not in Ireland. It was in Boston in 1737.
• The actual color of St. Patrick is blue. Green became associated with St. Patrick's Day during the 19th century. Green, in Irish legends, was worn by fairies and immortals, and also by people to encourage their crops to grow.
• According to the Guinness Book of World Records, the highest number of leaves found on a clover is 14.
• One estimate suggests that there are about 10,000 regular three-leaf clovers for every lucky four-leaf clover.
• Chicago is famous for dyeing the Chicago River green on St. Patrick's Day. The tradition began in 1962, when a pipe fitters union—with the permission of the mayor—poured a hundred pounds (45 kilograms) of green vegetable dye into the river.
• In Seattle, there is a ceremony where a green stripe is painted down the roads.
• At one time, there were more Irish living in New York City, than in Dublin, Ireland.
• Over 94 million people plan to wear green on St. Patrick's Day.
• The original Guinness Brewery in Dublin has a 9,000 year lease.
• According to the U.S. Census Bureau, 34 million United States residents claim Irish ancestry, or nearly ten times the entire population of Ireland today, which stands at 3.9 million.

 We would like to wish you all a shamrockin day!  However you choose to spend it, remember to celebrate responsibly, be safe, and don’t drink and drive!