Archives for May 2010

Mortgage Rates Drop to Lowest Level of the Year

(DSnews.com) Mortgage interest rates have fallen to their lowest level of the year. Economists say homebuyers have the financial turmoil in Europe to thank for that, as overseas investors have put their dollars instead towards what they see as safer U.S. securities.

The mortgage industry has been bracing for a rise in interest rates now that the Federal Reserve has ceased buying mortgage-backed securities. But with international money being poured into U.S. Treasury bonds, which are closely tied to rates for home loans, that rise has yet to come about – a definite plus for the residential real estate market here in the states as it confronts an expected drop in sales activity now that the homebuyer tax credit has expired.

According to Freddie Mac’s rate report released Thursday, interest rates on 30-year fixed-rate mortgages (FRM) averaged 4.78 percent (0.7 point) this week, down from last week when the average rate was 4.84 percent. According to the GSE’s study, the 30-year FRM has not been lower since the week ending December 3, 2009, when it averaged 4.71 percent.

The 15-year FRM this week averaged 4.21 percent (0.7 point), Freddie Mac reported. That’s a slight drop from last week when it was 4.24 percent. Freddie says the 15-year FRM has not been lower since it started tracking 15-year rates in August of 1991.

“These low rates will help to elevate homebuyer affordability and soften the effects of the sunset of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac’s VP and chief economist. “The latest information from Freddie Mac’s repeat-transactions home-price indexes also show some encouraging signs, with national metrics either slowing their descent or showing a modest rise, suggesting that the sharp downturn in national indexes since 2006 may be nearing an end.”

A separate study from Bankrate Thursday also puts mortgage rates at 2010 lows. Bankrate’s survey is based on data provided by the top 10 banks and thrifts in the top 10 markets.

Thirty-year fixed mortgage rates dropped to 4.92 percent (0.42 point) – a record low in Bankrate’s weekly survey. Last week, the 30-year rate came in at 4.96 percent.

The average 15-year fixed mortgage was unchanged from last week in Bankrate’s study at 4.34 percent, as was the larger jumbo 30-year fixed rate at 5.75 percent.

“The angst of investors around the globe about European debt, slower growth in China, and saber-rattling on the Korean Peninsula all feed into what is known as the ‘fear trade,’” Bankrate said in its report. “That fear trade has helped bring yields on U.S. Treasury securities considerably lower and mortgage shoppers have been direct beneficiaries.”

The Happy Valley Strawberry Festival in Anderson

The festival takes place on Saturday of Memorial Day Weekend May 29th, from 9 a.m. to 5 p.m. Admission is free, and so is parking in the area. The festivities start off at 7 a.m with a pancake breakfast hosted by Happy Valley 4-h club .

Starting at 10:00 am they will be serving the famous Strawberry Short Cake for $6.00. They will also be serving grilled Tri-Tip later in the day.

There will be lots of live entertainment. Past festivals have featured a senior dance group, the “Belles and Beaus,” and a barbershop quartet named Vintage Sounds. A magician, horse and train rides, classic cars on display and craft fair vendor booths have been among other attractions.

The festival is put on by The Happy Valley Community Foundation. Proceeds from the festival go toward next year’s festival and for funding events that enrich Happy Valley schools.

For more information about the Happy Valley Strawberry Festival call 357-7449. or visit their website https://happyvalleystrawberryfestival.com/

Map to Strawberry Festival

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Negative Sentiment Towards Buying Foreclosed Properties Decreasing

A recent survey conducted by Trulia and RealtTrac found that the negative sentiment towards buying foreclosed properties has decreased compared to one year ago. With 78 percent of U.S. adults believing there are downsides to buying foreclosed properties compared to 85 percent in May 2009. Among those who think there are negative aspects to purchasing a foreclosed home, the top concerns about purchasing a foreclosed property between May 2010 and May 2009 include:

Negative Sentiment	May 2010	May 2009
Hidden Costs	68 percent	71 percent
Process is risky	49 percent	46 percent
Home will lose value	35 percent	31 percent

“Although fewer consumers expressed interest in buying a foreclosed home than a year ago, the actual sales of bank-owned properties (REOs), along with sales of properties in the foreclosure process, continue to increase — accounting for more than 30 percent of total sales in the first quarter of 2010 according to our data,” said Rick Sharga, senior vice president for RealtyTrac. “We anticipate that there will be an increased number of both REO purchases and short sales throughout the rest of the year as the most active buying segments – first time home buyers and investors – continue to look for bargains.”

“It appears that potential homebuyers are taking a more realistic view of foreclosure purchasing,” Sharga continued. “Buying a foreclosure property still provides an opportunity for dramatic savings on a home, but the time and effort involved in executing a short sale, bidding against other buyers for an REO, or the need to do renovations may be issues for buyers not as focused on getting the best price.”

The Bank-Owned Discount

The survey also found that 18 percent of U.S. adults expect bank-owned homes to offer a realistic price discount of less than 25 percent off the value of a similar home that was not in foreclosure. However, not all consumers have realistic expectations, with 36 percent saying that they expect to receive a discount of 50 percent or more when purchasing a bank-owned property. Most consumers (95 percent) would expect to pay less for a foreclosed home than for a similar home for sale that is not in foreclosure.

The survey also found some interesting demographics of who is buying the foreclosed homes.

Renters are showing strong interest in buying foreclosed properties, with 57 percent at least somewhat likely to purchase a foreclosed home in the future. In comparison, only 40 percent of current homeowners would consider buying a foreclosure in the future. Additionally, the likelihood to consider purchasing a foreclosure decreases with age: 65 percent of renters ages 18-34, 63 percent of renters between the ages of 35-44, and 54 percent of renters ages 45-54 are at least somewhat likely to consider purchasing a foreclosure, compared to only 31 percent of renters 55 years and older.

April 2010 Nationwide Foreclosure Report

RealtyTrac®, an online marketplace for foreclosure properties, released its U.S. Foreclosure Market Report™ for April 2010, which shows that foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 333,837 properties in April, a 9 percent decrease from the previous month and a 2 percent decrease from April 2009. One in every 387 U.S. housing units received a foreclosure filing during the month.

“There were two important milestones in the April numbers that show foreclosure activity has begun to plateau — but at a very high level that will not drop off in the near future,” said James J. Saccacio, chief executive officer of RealtyTrac. “April was the first month in the history of our report with an annual decrease in U.S. foreclosure activity. Secondly, bank repossessions, or REOs, hit a record monthly high for the report even while default notices dropped substantially on a monthly and annual basis. We expect a similar pattern to continue for most of this year, with the overall numbers staying at a high level and ripples of activity hitting the various stages of the foreclosure process as lenders systematically work through the backlog of distressed properties.”

Foreclosure Activity by Type

During the month a total of 103,762 properties received default notices (NOD, LIS), a decrease of 12 percent from the previous month and a decrease of 27 percent from April 2009 — when default activity peaked at more than 142,000.

Foreclosure auctions (NTS, NFS) were scheduled for the first time on a total of 137,643 properties during the month, a decrease of 13 percent from the previous month — when auction activity peaked with more than 158,000 properties scheduled for auction for the first time. Auction activity was up 1 percent from April 2009.

Bank repossessions (REOs) hit a record monthly high for the report in April, with a total of 92,432 properties repossessed by lenders during the month — an increase of 1 percent from the previous month and an increase of 45 percent from April 2009. Bank repossessions were less than 1 percent above their previous peak of 92,182 in December 2009.

Five states account for more than 50 percent of national total

California, Florida, Michigan, Illinois and Nevada accounted for 52 percent of the national total. California led the way, with 69,725 properties receiving a foreclosure filing — although that total was down 25 percent from the previous month and down nearly 28 percent from April 2009.

California posted the nation’s fourth highest foreclosure rate, with one in every 192 housing units receiving a foreclosure filing, and Utah posted the nation’s fifth highest foreclosure rate, with one in every 221 housing units receiving a foreclosure filing.

Foreclosure activity in Modesto, Calif., decreased 32 percent from April 2009, but the metro still posted the nation’s second highest foreclosure rate, with one in every 101 housing units receiving a foreclosure filing during the month. Other California cities in the top 10 were Merced at No. 3 (one in every 104 housing units); Stockton at No. 5 (one in 108); Riverside-San Bernardino-Ontario at No. 6 (one in 110); Vallejo-Fairfield at No. 8 (one in 117); and Bakersfield at No. 9 (one in 120).

Read RealtyTrac’s full report

Zillow Reports Redding Home Values Up Slightly

According to Zillow’s Real Estate Market Reports for March 2010, Redding home values were Up 0.23% compared to February 2010 and down 13.97% compared to March 2009.

I am not sure how accurate the numbers from Zillow are, but it is interesting to track.

April 2010 California & Shasta County Foreclosure Report

ForeclosureRadar.com just released its April 2010 California Foreclosure Report. Their report is statewide and broken down by county. Here are some of the stats from Shasta County.

Notice of Defaults, the start of the foreclosure process, increased by only one notice. April 2010 had a total of 150 NOD’s filed compared to last month’s 149.

The number of homes in Shasta County that had a Notice of Trustee’s sale filed, stayed exactly the same at 129 notices.

There were a total of 81 trustee’s sales down from last month’s 98. The banks took back 76 homes as REO’s and only 5 homes sold to a 3^rd party investor.

There are currently 167 REO / Bank owned properties for sale on the Shasta County MLS with 68 REO / Bank owned homes selling last month.

Highlights from the statewide report:

Foreclosure filings were down in April for the first time since the beginning of the year.
Despite the decline in filings, the inventory of properties in preforeclosure or scheduled for sale only dipped slightly as the drop in filings were offset by an increase in the time to foreclose.
Cancellations continue to climb, up more than 32 percent from the beginning of the year.
The number of properties sold to 3rd parties also continues to climb, helped again this month by slightly better discounts.

Download the full report at Foreclosure Radars website.

Archives for May 2010

Mortgage Rates Drop to Lowest Level of the Year

The Happy Valley Strawberry Festival in Anderson

Map to Strawberry Festival

Negative Sentiment Towards Buying Foreclosed Properties Decreasing

April 2010 Nationwide Foreclosure Report

Zillow Reports Redding Home Values Up Slightly

April 2010 California & Shasta County Foreclosure Report

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Archives for May 2010

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