Tuesday , 24 November 2015
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First-time Buyers Lose Again


‘Closed loan credit scores continued tumble, while DTI rose in October’ promised the headline from Ellie Mae this month. Eagerly I scanned through the data, hoping at last to see a relaxation of the squeaky tight lending standards for purchase loans, enough to really mean something to the millions of young buyers trying to maneuver their way through student loan ... Read More »

Home Prices: The Tilting of America


  The chart below from Case-Shiller’s release today of its July data says it all.  Prices now are shifting a lot on a monthly basis.  The range between appreciating and depreciating markets seems to be growing and no longer do the “sand” states, judicial foreclosure states or foreclosure states or cities with the best economies and most jobs. Rather, with ... Read More »

The Truth about Lending Standards


  Perhaps you have heard that it’s getting easier to get approved for a mortgage to buy a home. Yet the first-time buyers you work with don’t seem to be doing any better than they did six, 12 or even 24 months ago. The news reports you’ve been reading are misleading.  They may accurately trends for refi mortgages or mortgages ... Read More »

Private Label Securitization—the Missing Link


Without a return to a robust private label securitization market for pristine borrowers, securitization of riskier loans won’t occur and without a vehicle to finance them, origination of these loans to be fairly limited. That’s the conclusion of “The Rebirth of Securitization,” a white paper by the Urban Institute’s Laurie Goodman published September 10.  Just seven days later CoreLogic’s Faith ... Read More »

Home Prices: Old Peaks and New Pitfalls


In July, the National Association of Realtors announced that by its calculations, the national median existing-home price for all housing types surpassed the record national median sales price of $230,400   set nine years ago. For many, reaching the price peak is a good reason to break out the bubbly and celebrate the official end of the housing recession.  It’s been ... Read More »

Where O Where Have all the Sellers Gone?


Not so long ago, when prices were plummeting and foreclosures pumped up the inventory counts with discounted values, homeowners and real estate professionals would have welcomed one of the chronic problems plaguing markets today; inventories so low that they inflate prices and keep move up buyers in homes they want to leave. The question everyone is asking: “What’s happened to ... Read More »

The Dry Rot in America’s Housing Stock: A Sad Legacy of the Foreclosure Era


  What would an influx of 3.8 million entry-level homes do for housing affordability? Limited inventory and strong demand continue to push home prices higher in America’s hottest housing markets, leading to declining affordability.  Forecasters are raising their predictions as tight inventories of homes, particularly lower priced properties, keep first-time buyers on the sidelines. Those 3.8 million homes, nearly twice ... Read More »

How the Rent Trap is Killing Off First-time Buyers


This is the year when the stars are aligned perfectly for record numbers of tenants to tear up their leases and kiss the renting life good-bye. Historically low mortgage rates won’t last much longer.  Home prices will only rise. New three percent down programs from Fannie and Freddie sweeten the deal for new buyers.  FHA’s mortgage insurance premium cut makes ... Read More »

Why Lending Standards Won’t Get Any Better


Anybody who works with young home buyers today knows the definition of heartbreak.   It’s when young couples with good jobs and dreams of homeownership can’t overcome the barriers to getting financing that have been erected since 2006. Of all the players still on the field today—lenders, politicians, regulators, brokers, GSEs—they are the only innocent ones.  They were in high school ... Read More »

Nascent Demand, Tight Inventories Supercharge April Prices


  Prices took an unexpectedly big leap upward in April as rising demand collided with tight supplies to propel sale prices. With headlines like The Re-Explosion of U.S. House Prices Is Over, most forecasts in January had prices rising 4-5 percent over 2014.  Only the CoreLogic and NAR were on the sunny side, predicting 5/9 and 6 percent respectively. Only ... Read More »

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