Housing Market Predictions for 2014

Good news! It is predicted that through 2014, existing-home sales are expected to stay on the up and up! 2013 has been a great year full of healthy gains and that momentum looks like it will continue. According to the National Association of Realtors (NAR), existing-home sales have show a 20% cumulative increase over the past two years! Home prices have gained 18% too! “We’ve come off of record high housing affordability conditions in the past year, and are now at a five-year low, but conditions are still the fifth best in the past 40 years,” said Lawrence Yun, chief economist for the NAR. “While the median-income family in many areas will still be well positioned to buy a home in 2014, income is barely budging given growth in consumer prices.” Other issues include limited housing inventories...

Read More

Issues the Housing Market is Currently Facing

Recently, a group of realtors pinpointed the biggest issues that are currently impacting the housing market. These are issues that could have consequences for homeowners, realtors and mortgage professionals alike! Right now, the biggest issue concerns interest rates. Historically, low interest rates have always driven the economy and in turn the real estate markets. Since the rates have increased recently, capitalization rates could also rise. That refers to the ratio between the income produced by an asset and the cost of it. This could lead to investors and homeowners becoming more and more wary of their purchases. Another concern revolves around healthcare. As the population continues to age, there will eventually be a demand for more senior housing. This will have an affect on available...

Read More

Tight Mortgage Requirements Rough on Singles and First-Time Buyers

According to a study by the National Association of Realtors (NAR), there are still some unnecessarily restrictive mortgage lending standards in place that are not allowing some singles and first-time buyers to financially qualify for a home. These tend to have to do with tight credit requirements. Since 1981, NAR has been evaluating the demographics, preferences, motivations and plans of those who have recently bought or sold a home. This data includes only owner-occupants, not investors or vacation homes. “Single home buyers have been suppressed for the past three years by restrictive mortgage lending standards, which favor dual-income households who are more likely to have higher credit scores,” said Lawrence Yun, NAR chief economist. “Not seen in this survey is the elevated level of investors...

Read More

Impact of the Shutdown on the Mortgage Industry

As the government shutdown is nearing its end and its employees have a chance to get their jobs back, many are wondering about the effects that the shutdown has had on the mortgage industry. Beyond those who were furloughed being unable to make money, many others were unable to purchase homes or get a mortgage due to the IRS being unable to process the 4506-T form. Additionally, USDA loans were on pause during the shutdown as well. “Outside of the obvious process impacts of submissions, approvals and income there are immediate and lingering tangential impacts to housing and housing finance markets. With over a decade of shenanigans by members of Congress who are not doing their jobs, the consumer and investor uncertainty continues to restrain any meaningful recovery,” said Mark Dangelo, president,...

Read More

Freddie Mac on the Government Shutdown

Freddie Mac is allowing borrowers who are not being paid as a result of the government shutdown to still have their mortgages delivered to Freddie Mac as long as they meet all the usual requirements and the borrower is expected to return to work after the shutdown ends. "We're issuing this guidance to help ensure the continued smooth operation of the mortgage market during the temporary shutdown of the federal government. Today's bulletin is intended to give lenders the certainty to continue approving and delivering new mortgages that meet Freddie Mac guidelines to eligible borrowers, such as federal employees and contractors," said Dave Lowman, executive vice president, Single-Family Business at Freddie Mac. "During the temporary shutdown. We are also reminding servicers of our forbearance...

Read More

President of MBA Calls for End of Shutdown

The president and CEO of the Mortgage Bankers Association (MBA), David H. Stevens, has recently issued a statement regarding the government shutdown and the affect it is having on the housing market. "The federal government shutdown will have a growing impact on the housing market the longer it continues. If this shutdown is temporary, the ones affected most will be out of work federal employees," he says. "However, the longer it goes, the greater impact it will have on borrowers, the housing market and the national economy." He continues, "lenders processing loans that need tax transcripts, social security number verification, or FHA home loans face longer delays and reduced functionality from HUD, IRS, and the Social Security Administration. Different loan programs have different requirements,...

Read More

What The Shutdown Means For The Housing Market

Since Tuesday morning, many government services were shut down or cut back. Congress is battling back and forth trying to resolve their issues. This is the first government shutdown in 17 years. "Essential employees" are still allowed to work but as many as 800,000 "non-essentials" are not allowed in government buildings and they don't know when they'll be paid again. As you may know, the central issue being debated is Obamacare.  According to House Speaker John Boehner (R-OH), "The House has voted to keep the government open, but we also want basic fairness for all Americans under Obamacare." While 800,000+ employees are on the sidelines, the members of Congress are still working and because of the 27th Amendment, all 533 of them are still being paid. President Barack Obama has said...

Read More

Average Mortgage Rates Eased Lower + Home Prices UP!

Here is the gist of it: Freddie Mac says that for the second week in a row, the average fixed mortgage rates have eased up.  What does that mean? Well, the 30-year FRM averaged 4.31% as of July 25th, which is down from 4.37% the week before. Even though we were looking much better this time last year with a cool 3.49% for the 30-year, the current 4.31% isn't that bad! Yes, the economists have been concerned about the recovery of the housing  market slowing down after its been rapidly improving over the past year. However, sales for existing homes in June reached the second-highest level that its been at since November 2009, and new home sales are now as strong as they've been since May 2008. What does that mean? People are still buying and selling houses. There is currently a...

Read More

Foreclosure Market Report

According to RealtyTrac's Midyear 2013 Foreclosure Market Report, there were a total of 801,359 properties across the U.S. that have foreclosure filings in the first half of 2013. That signifies a 19% decrease from the previous six months. It is also down by 23% from the first half of 2012. While there are so many programs today geared toward helping Americans avoid foreclosure, the report shows that 0.61% of all housing units in the country has had at least one foreclosure filing between January and June 2013, which accounts for 1 in 164 homes. “Halfway through 2013 it is becoming increasingly evident that while foreclosures are no longer a problem nationally they continue to be a thorn in the side of several state and local markets, particularly where a backlog of delayed distress has...

Read More

How Are The Mortgage Rates Doing?

Two weeks ago, the average fixed mortgage rates saw their highest levels since mid-2011. This has made homebuyers weary of making their move. However, there is some good news. Last week, Freddie Mac's Primary Mortgage Market Survey said that the 30-year rates have dropped back down to 4.29 percent (from 4.46 two weeks ago.)  We realize these aren't ideal considering last year they were at 3.62 percent. Over the Fourth of July weekend,,the rates fell due to an ease of market concerns about the Federal Reserve's pullback in bond purchases.  It is important to remember that even though rates are higher now than they have been in the past year, these rates are still low by historical standards. Even in the 4th percentile, we should continue to see people benefiting from housing affordability...

Read More

Housing Starts, Home Prices, and Talk of an Impending Bubble?

In May, housing starts rose nationwide by 6.8 percent due to an increase in the production of multifamily homes. That equals roughly 914,000 units on a seasonally adjusted annual basis. Much of the country received wet weather in May which slowed the building of single-family homes, however despite the setback, there was an increase in permits issued for single-family units. This goes to show that housing is slowly but surely recovering.  Single-family housings starts remained at a steady pace of roughly 599,000 units in May. Builders across the country are able to respond to this demand for construction of new homes as well as rental apartments. The only problem that is keeping the new housing industry from booming is that lack of available building materials, lots and willing laborers. Despite...

Read More

Home.com's Rebound Report for Top 100 Markets

We all know that the overall housing market is recovering well, but which markets are doing the best? Homes.com has released a "Rebound Report." It is a new housing study that details the recovery in the top 100 U.S. Markets. It provides a deeper analysis of data from their Local Market Index. It shows how far these markets have rebounded from its deepest decline in index value to its current status. According to the report, nine of the top 100 markets have completely rebounded back to the peak price levels that they were experiencing before the housing crisis. Some of the markets even increased as much as 200 percent of the decline amount! While every market was hurt during the recession, every one of those markets are now also seeing some kind of recovery. The report really highlights...

Read More

Home Prices Continue to Increase!

We recently took at look at CoreLogic's HPI report for April. It showed that Home Prices nationwide, including distressed sales, have increased by 12.1 percent! This is on a year-over-year basis, comparing April 2013 to April 2012.  This is the biggest year-over-year increase since February 2006! April was the 14th consecutive month to see an increase in home prices.  Over the past few years, because of the recession, home prices have dropped significantly. This is one of the reasons why so many have faced foreclosure. Their homes were suddenly worth much less than they owed on them and they were unable to sell them. Once the unemployment rates went up as well, people struggled! We are thankful now that everything is stabilizing once again. We've helped so many people to refinance...

Read More

Making Home Affordable Program is now Extended Through 2015!

Good news to start off your week: the Obama Administration's Making Home Affordable program has now been extended through December 31, 2015!  This was just announced by the Department of the Treasury and the Department of Housing and Urban Development (HUD) in association with the Federal Housing Finance Agency (FHFA). The goal was to align the deadline with that of the Home Affordable Refinance Program (HARP) as well as the Streamlined Modification Initiative for those with loans with Fannie Mae and Freddie Mac. The Obama Administration has been working hard to provide relief to families on the brink of foreclosure. The Making Home Affordable Program has been an integral part of the housing market recovery. This two year extension of the deadline should further aid those affected by...

Read More

No Changes for "Jumbo" Loan Limits

The Federal Housing Finance Agency (FHFA) recently announced that there will be no changes for the maximum conventional loan limits in 2013. This is referring to base and high-cost or "jumbo" conforming loans, whether it is a first-lien or a second-lien. Keep in mind that these loan limits apply to the original loan amount of the mortgage loan, not the balance at the time of purchase by Fannie Mae or Freddie Mac.  Read more about these loans directly from Fannie Mae's Lender Letter. If you are wondering what the high-cost limits are, we've compiled a basic list. These are the applicable loan limits in 2013 for a one-unit property. The following states and counties will remain as is: California:  $417,000 (all counties except as follows)  $463,450: Alpine  $474,950:...

Read More

Mortgage Default Rates Drop as Economy Improves

As the economy continues to improve, consumer debt continues to decline. Because Americans now have less debt overall, consumer default rates have decreased for mortgages and automobiles alike! This means that the financial condition for consumers is getting better as the economy stabilizes. The national default rate for mortgages fell to 1.31 percent in the month of April, which is down from 1.41 percent in March.  This data is according to S&P Dow Jones and Experian Consumer Credit. They've worked together to build a comprehensive measure of the changes in consumer credit defaults. Mortgages are doing well, but bank cards saw a small increase in default rates. Unemployment rates are still somewhat high, but the good news regarding the decline in default rates indicates that the...

Read More

Rates Rising: Lock It In While You Can!

After weeks of falling, the mortgage rates have recently rose to their highest point in six weeks. Previously pressing to set record-lows, the current mortgage rates for a 30-year mortgage are averaging 3.51 percent.  The average 15-year rate also increased to 2.69 percent. Earlier this month, the 15-year rate set a record-low at 2.56 percent. Last November saw the lowest rate for a 30-year mortgage with an average of 3.31 percent. Most recently, we saw 3.35 percent. With the rates steadily climbing again, we tend to encourage borrowers to lock in these somewhat low rates while they can. There is no guarantee that they will drop again since the housing market is recovering and home prices are increasing. There is an increased demand for homes due to a tight inventory. The whole market...

Read More

HUD Will Sell Thousands of Delinquent Mortgage Loans

Although the economy is improving, there are still many severely delinquent mortgage loans. HUD plans to sell 20,000 distressed loans that are insured by the FHA in an effort to deepen the inventory and bring relief to areas hit hard by foreclosure.  Its Distressed Asset Stabilization Program (DASP) will help with the sale of these loans and help to stabilize the nation's communities. HUD has sold delinquent loans before, and previously did so by conducting note sales. There are two auctions planned, one for June 26th that will handle the sale of 15,000 notes through "national pools" and another auction on July 10th that will offer 5,000 notes through Neighborhood Stabilization Outcome (NSO) pools. The NSO pools allow qualified bidders notes located in...

Read More

Record or Near-Record Low Mortgage Rates!

The economy is still gradually improving day by day, and that may mean that you are making more money now. Or maybe not. If you are in need of lower monthly mortgage payments, now would be an excellent time to refinance! Just this week, the fixed mortgage rates have once again dropped! In fact, the 15-year average rate hit a new record low of 2.56%!!  The 30-year record low mortgage rate is 3.31% and the current rate has dropped down to 3.35% which is almost as low as it could be! As mortgage professionals, we want to take the time to encourage you to seek more information about refinancing your home. Right now is a great time to take...

Read More

Housing Market Outlook for 2013

After a rough few years, the housing market and the economy are finally on an upward trend! Housing starts, prices and confidence are showing better figures everyday. Of course there are always ups and downs, and while some investors are still being cautious about jumping into the market, 2013 is promising to bring a more competitive market for homebuyers.  With the housing inventory as low as it is, experts wouldn't be surprised if bidding wars break out among investors and homebuyers. It is expected that homes will sell fast in 2013 as long as they are priced right. It is a homesellers market! When the market was experiencing buying dry spells during the recession, the Federal Reserve dropped interest rates to record-lows in order to lure buyers. Now that things are steadily improving,...

Read More

Aid for California's Foreclosed Homeowners

If you are one of the many Californians who were affected by the state's foreclosure crisis, help may be on the way! California Attorney General Kamala D. Harris has awarded $9.4 million to 21 different organizations that will assist homeowners through California's National Mortgage Settlement Grant Program. These grants will benefit the neediest homeowners by providing better access to free legal assistance and representation. Homeowners will also have access to foreclosure intervention aid, education and financial literacy clinics, employment support and more. “The foreclosure crisis has inflicted wide-ranging and deep harm to California homeowners and communities,” said Attorney General Harris. “These grants will give homeowners and families the financial and legal tools they need to...

Read More

Mortgage Rates Drop in April

According to Freddie Mac's most recent Primary Mortgage Market Survey, the average fixed mortgage rate has moved lower for the 3rd consecutive week. The 30-year fixed-rate mortgage averaged 3.41 percent with an average 0.7 point, which is down from 3.90 percent this time last year. As the housing market continued to recover, many people are taking advantage of these low rates by refinancing their current mortgages. Some people opt to refinance their long-term mortgage to a shorter-term mortgage. The 15-year fixed-rate mortgage averaged at 2.64 percent with an average 0.7 point, down from 3.13 percent last year. The Survey also reported that consumer spending was weaker during the week ending April 18th. Some economists believe that this weakness in retail sales lead to the mortgage rates...

Read More

Rising Costs Put Pressure on Builders

So far, the month of April has brought about increasing costs for building materials. Home builders have already been facing a shortage of developed lots and skilled laborers, which  has caused builders' confidence to register lower that usual in the market for newly built, single-family homes. The Housing Market Index has suffered a two-point drop to 42. This index measures the perceptions of builders regarding home sales and sales expectations for the next six months. They rate it as either "good," "fair," or "poor." Builders also rate the traffic of potential buyers as "high to very high," "average," or "low to very low." As long as the tallied scores for each of these categories are calculated anywhere above 50, more builders view conditions as good than poor. "Many builders are...

Read More

HARP Benefits Underwater Borrowers

Since HARP began in April 2009, more than 2.2 million homeowners have refinanced. In January 2013, there were roughly 97,600 HARP refinances, which shows that HARP continues to be a benefit to underwater borrowers. 25% of the loans refinanced through HARP had a loan-to-value ratio greater than 125%. Also, 18% of HARP refinances for underwater borrowers were for shorter-term mortgages such as 15 or 20 years, which would help build equity faster than a traditional 30-year mortgage. This information comes from the FHFA's January 2013 Refinance Report which suggests a high refinance volume with nearly 470,000 refinances completed in January, including the HARP ones...

Read More

Payout to 4.2 Million Borrowers Beginning April 12th

There was an agreement between the Office of the Comptroller of the Currency (OCC),  the Federal Reserve Board, and 13 mortgage servicers that will make payments to 4.2 million borrowers starting April 12th. This agreement will provide $3.6 billion in cash payments to homeowners that have found themselves in any stage of foreclosure in 2009 or 2010. Those defaulted loans must have been serviced by by one of the following companies or their subsidiaries  Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo. The checks will be sent in several waves starting with 1.4 million checks being sent out on April 12th, and ending sometime in mid-July 2013.  The payments are expected...

Read More

California Homeowner Bill of Rights

Homeowners in California have been dancing on the edge of foreclosure, but now help is in sight. Attorney General Kamala D. Harris has recently announced a $1 million California Homeowner Bill of Rights (HBOR) grant to be implemented into The National Housing Law Project. This bill is a set of laws that will extend key mortgage and foreclosure protections to California homeowners and borrowers. “Californians were hit hard by the mortgage crisis and many people are still struggling to stay in their homes,” Attorney General Harris said. “The California Homeowner Bill of Rights gives borrowers more opportunities to stay in their homes, and this grant will help make sure the law is applied across the state and that everyone gets the protection they are entitled to.” The laws took effect at the...

Read More

Impact of Labor Shortages on Housing Recovery

Lately, home prices have been increasing. Part of the reason for this is that there is a shortage of housing laborers. In a recent survey by the National Association of Home Builders, more than half of the builders reported that these labor shortages have lead to paying higher wages or bids in order to secure a project, thus the increase in home prices. This lack of laborers in all facets of residential construction has been impeding the housing and economic recovery. "The survey of our members shows that since June of 2012, residential construction firms are reporting an increasing number of shortages in all aspects of the industry - from carpenters, excavators, framers, roofers and plumbers, to bricklayers, HVAC, building maintenance managers and weatherization workers. The same holds...

Read More

Expired Payroll Tax-Cut Barely Noticed by Workers

In January, the payroll tax cut expired, meaning that paychecks are now 2% less than they were before. Many economists predicted that consumer confidence and spending would suffer as a result, but it turns out that retail sales actually rose higher than expected, and consumer confidence rebounded. In fact, Bankrate.com surveyed workers and found that 48% of respondents didn't even notice that they were being paid less. 7% said that the loss has not had an affect on their finances. “It’s very encouraging. It means other things going on are helping,” said Mark Zandi, chief economist at Moody’s Analytics. "We are weathering the storm well, at least so far, better than I would have thought." However, Zandi also cautioned that the impact could take longer to become evident and that the results...

Read More

News: Bailout Deal in Cyprus

If you have been watching the news, no doubt you've heard about the bailout crisis in Cyprus. Today it was reported that a solution to this problem may be possible. The European Union has set some guidelines for the bailout to which Cyprus must adhere. It is expected that they will reach an agreement today so that parliament can approve of specific measures that will fall within these guidelines. This news came a couple hours after the Cypriot finance minister left Moscow empty-handed due to Russia turning down their appeals for aid. This left the island without any other option than to make a bailout deal with the EU. An agreement must be reached before Tuesday or Cyprus will face the collapse of its financial system. Now Cyprus is left with a short deadline to find 5.8 billion euros which...

Read More

Most Economists Agree: Recovery Gaining Momentum

Last week, nearly every article and report in the news claimed or suggested that the pace of the U.S. economic recovery is gaining momentum. Economic Forecasters are considering reassessing their previous thoughts as we see positive statistics like a rise in Retail Sales by 1.1%, and the Consumer Price Index's increase of 0.7%.  However, some argue that these were mostly due to higher gasoline prices and building material prices. Despite mostly positive claims, it appears as though the economy has felt the effects of the expiration of the 2% Social Security tax holiday, sequestration, and higher gas prices. These issues have fallen squarely on the shoulders of middle- and lower-income households who already have a limited amount of ways to cut spending in the short term. Aside...

Read More

Two Nebraska Bills Amend Mortgage Requirements

As of March 7th, some new amendments to lender licensing rules were enacted thanks to two bills that were passed in Nebraska. They are intended to clarify the requirements for installment loan brokers, payday lenders, mortgage bankers, and mortgage loan originators. The first one is called the LB 279, (short for Legislative Bill.) It makes non-substantive clarifications to how a "loan broker" is defined. It also narrows down the exemption for accountants to certified public accountants only. Additionally, this bill gives the Nebraska Department of Banking and Finance authorization to share examination reports and other confidential information with the Consumer Financial Protection Bureau and any other relevant state regulators. The second bill is known as LB...

Read More

Report: HUD Taking Steps to Enforce Fair Housing Act

Compared to previous administrations, the Obama Administration's efforts have proven to be more vigorous in enforcing state and local governments to comply with fair housing obligations through the Department of Housing & Urban Development (HUD). There was a recent report by three different national civil rights organizations that find Obama to be doing superior work toward improving housing conditions across the country. However, despite these high marks, the report also noted that there is plenty of "unfinished business" for HUD to attend to, including finalizing a regulation codifying its grantees' obligation to further fair housing. “This report indicates that HUD has, for the first time, taken significant actions to enforce the Fair Housing Act’s requirement that recipients of federal...

Read More

Number of Mortgage Apps Increase

The Mortgage Bankers Association's (MBA) most recently Weekly Mortgage Applications Survey has compiled data for the week ending March 1, 2013.  According to this information, the number of mortgage applications filed has increased by 14.8% compared to a week earlier. The volume of mortgage loan applications is determined by the Market Composite Index. It tallied the current data on a seasonally adjusted basis. On an unadjusted basis, the Index increased 15% compared to last week. The number of refinance applications remains the same as last week, sitting at 77% of total applications. These statistics are good for the mortgage industry. The increase of applications proves that more and more people are continuing to leap into the world of homeownership. This hints that the...

Read More

The Importance of the FHA

Here at Quest Loans, we specialize in FHA Loans. Many people don't realize that the Federal Housing Administration (FHA) has a very important role in the mortgage industry. When the private mortgage market collapsed, the FHA stepped up to help make mortgage insurance available to millions of qualified home buyers across the nation. 80 years ago, Congress actually designed the mortgage insurance fund to do just that. To prove how crucial the FHA is, the National Association of Realtors put together a testimony before the Senate Banking Committee praising the administration. According to NAR President Gary Thomas, without the FHA the housing downturn and economic recession would most likely have been far worse for the nation. “FHA continues to play a significant role in the housing market...

Read More

FHFA's 2013 Conservatorship Scorecard for the GSEs

Edward J. Demarco, the Acting Director of the Federal Housing Finance Agency (FHFA), has recently released the 2013 Conservatorship Scorecard for Fannie Mae and Freddie Mac.  This "Scorecard" is literally rating their performances on things like "the quality, thoroughness, creativity, effectiveness, and timeliness of their work products." They are also graded on how well they cooperate and collaborate with FHFA, each other, and the industry. The three keywords that they must focus on are "Build, Contract, and Maintain." These were brought up in 2012 as the three goals of the FHFA's Strategic Plan for the GSEs. "Build" refers to their goal to "build a new securitization infrastructure platform for the secondary mortgage market." They must also "Contract the Enterprises dominant presence...

Read More

30-Year Fixed-Rate Has Dropped!

According to Freddie Mac's recent Primary Mortgage Market Survey (PMMS), the average fixed-rate mortgage (FRM) for a 30-year term has been lowered! After not changing much in the past month, the rate has now clocked in at an average of 3.51 percent, which is down from 3.56 percent last week. This means good news for those seeking to purchase a home or refinance. This time last year, the 30-year FRM was averaging 3.90 percent. "Mortgage rates eased somewhat as the consumer price index in February held steady for the second month in a row," said Frank Nothaft, vice president and chief economist for Freddie Mac. "House price indicators, however, showed gains in 2012. The S&P/Case-Shiller national home price index rose 7.3 percent last year, reflecting the largest four-quarter growth since...

Read More

2 Million Homeowners Freed from Negative Equity in 2012

At the end of 2011, the percentage of homeowners with negative equity, or an underwater mortgage, sat at 31.1%.  Q4 of 2012 saw that percentage fall to 27.5%. This means that nearly two million homeowners were freed from negative equity in 2012. To spell out just how many homeowners those percentages point to, in 2011, 15.7 million people owed more on their mortgages than their homes were worth. That number now rests at 13.8 million homeowners as of Q4 2012. On top of those statistics, it is evaluated that those 13.8 million homeowners were collectively underwater by more than $1 trillion. This information comes from Zillow's Negative Equity Report. They further predict that by Q4 of 2013, the negative equity rate will fall to at least 25.5%. That figure would mean that more than 999,000...

Read More

Housing Starts take a dip in January

According to HUD and the Census Bureau, housing starts took a nationwide dip in January with a decline of 8.5% which is 890,000 units. This was based on a seasonally adjusted annual rate. Specifically, single-family housing starts were little changed, registering a 0.8% gain to 613,000 units.  The pace of these starts have been improving; this was the strongest production pace for single-family housing since July 2008. However, multi-family housing starts were the biggest contributor to the nationwide decline. These tend to have significant month-to-month volatility. In January, they declined 24.1% to a mere 277,000 units. Bad news for housing starts doesn't necessarily mean bad news in the rest of the market. Issuance of permits for new-home construction has increased...

Read More

Home Prices Increase at Strongest Level in 7 Years!

According to the latest quarterly report from the National Association of Realtors (NAR), several metropolitan areas had higher median home prices in Q4 of 2012. In fact, 2012 proved to have the strongest year-over-year increase that we've seen in the past 7 years. On top of that, housing affordability in metro areas has reached record high conditions. “Home sales are on a sustained uptrend, mortgage interest rates are hovering near record lows and unsold inventory is at the lowest level in 12 years,” said Lawrence Yun, NAR chief economist. “Home sales are being fueled by a pent-up demand and job creation, along with still favorable affordability conditions and rents rising at faster rates. Our population has been growing faster than overall housing stock, so supply and demand dynamics are...

Read More

Mortgage Delinquency Rate Declines 14% in 2012

The national mortgage delinquency rate is defined as the rate of borrowers who are 60 or more days past due on their monthly mortgage payments. The amount of people who fall in this category has declined for the fourth consecutive quarter. Q4 of 2012 saw a mortgage delinquency rate of 5.19% which was down from 5.41% in Q3, and 6.01% in Q4 of 2011. Statistics aside, delinquency is decreasing. This means that as the economy continues to recover with time, more and more people are able to continue paying their monthly payments. This was the largest yearly decline that the delinquency rate has seen since the recession officially ended, but we still have a long way to go to radically improve life for homeowners. In 2007, delinquencies rose 54%. They rose 53% in 2008 and 50% in 2009. Since then,...

Read More

"The Responsible Homeowner Refinancing Act of 2013"

How would you like to be among the millions of responsible homeowners who can refinance their mortgages at a lower rate in order to save thousands of dollars each year? It's within your reach! Especially now that U.S. Senators Robert Menendez (D-NJ) and Barbara Boxer (D-CA) have introduced this legislation in the 112th Congress. It is called "The Responsible Homeowner Refinancing Act of 2013" and it plans to remove the barriers that are currently preventing borrowers from obtaining the lowest rate possible. This bill would streamline refinancing as we know it for all of Fannie Mae and Freddie Mac's borrowers whether they are underwater or not. Up-front fees would be reduced, appraisal costs for borrowers would be eliminated, and the HARP program would be extended by one year to allow eligible...

Read More

Refinancing Your Mortgage Can Save You Money!

Freddie Mac has released more information that only further proves the benefits of refinancing. The results of its Q4 refinance analysis shows that 84% of homeowners who have refinanced their first-lien home mortgage either remained at the same loan amount, or managed to lower their principal balance. This helps to strengthen their fiscal house. On average, those who have refinanced were able to reduce their interest rate by 1.8 percentage points. In December, Fixed-Rate mortgages averaged low percentages. 30-year loans were around 3.4% and 15-year loans averaged 2.7%. Because of these low rates, refinancing can help you save money on your overall mortgage. For example, when a loan for $200,000 is refinanced using these average statistics and percentages would translate to a saving...

Read More

Home Sales to Rise in 2013 Despite Low Inventory

In some areas of the country, there is a shortage of homes available for sale. This low inventory is the main factor limiting the signing of contracts. Because of this, pending home sales has declined overall in December. Despite that, the levels of home sales is still higher now than in the previous year when compared per month on a year-over-year basis. Contract activity has actually risen for 20 straight months and buyer interest remains strong too. The low inventory consists mainly of homes that cost less than $100,000 and are greatly located in the West, which means that first-time home buyers have fewer options to choose from. Experts say that a seasonal rise of inventory may occur in the spring of 2013, however it may not bring about a seller's market. Much of the West is already...

Read More

Increase in Purchase Applications

According to the Mortgage Banker's Association's Weekly Mortgage Applications Survey, the week ending January 18, 2013 brought about a 7% increase in mortgage applications. This is being counted on a seasonally adjusted basis. Unadjusted statistics show that the number of mortgage applications being filed increased by 8% from the previous week. Refinancing also increased by 8% for the week. This shows that the economy is recovering well despite the recent expiration of the homebuyer tax credit. The interest rates are still low, which is a huge benefit to those looking to purchase a home in the coming months. If you are among those people, give Quest Loans a call. We'll help you get the application process going! 888-883-5252...

Read More

Overview of Housing 2012

The housing market had a good 2012! We saw great improvements in housing construction, so much so that home building is once again aiding the economy. Housing starts jumped 21.1%. This increase coincides with the higher levels of builder confidence over the past few months. However, there was a pause in the rise of builder confidence in January which is most likely caused by the fiscal cliff debate and all of the huge, impending decisions that face the housing and mortgage industries in 2013. Despite the improvements for housing, there has not been a huge increase in employment for residential construction. Job openings for construction are elevated which shows a demand for construction workers and suggests future growth potential. On a positive note, home prices have jumped to their...

Read More

Changes and New Mortgage Regulations 2013

Over the next six months, many decisions will be made regarding the future of the real estate finance industry. These rules will determine what kind of housing market we leave for future generations.  The Dodd-Frank rules are upon us and will be dramatically transforming the industry. The first of these new rules that were mandated under Dodd-Frank and the Consumer Financial Protection Bureau (CFPB) show that the housing market appears to be in a broad recovery. These new regulations will shape how mortgage lending operates. Recently, the Qualified Mortgage (QM) rule was released by CFPB and it will bring about significant changes to homeownership. Since 90% of mortgages are currently going through GSE and FHA underwriting, the new rule will most likely not have much impact on the credit...

Read More

Benefit by Working with a Smaller Lender

Here at Quest Loans we pride ourselves on having the professional standards and expertise of a large bank while still giving you the friendly feeling of a smaller community bank--and now there's even more perks for stopping by our office or giving us a call! Just last Thursday, a new mortgage rule has been introduced denying consumers a "qualified" mortgage if they have debt exceeding 43% of their income. However, the Consumer Financial Protection Bureau proposed that smaller creditors be given an exemption to that new standard thereby giving the smaller guys an advantage over the larger banks, especially when they operate with low and moderate income communities. Now, some consumer advocates may claim that this new standard could shut out first-time home buyers or those with low income....

Read More

The Mortgage Relief Act Extended One Year!

We are happy to report some good news on the mortgage front! The Mortgage Forgiveness Debt Relief Act has been extended through December 31, 2013. Congress recently passed a bill called The American Taxpayer Relief Act of 2012 that extends dozens of tax cuts. What does this mean for you? If you've found yourself drowning in mortgage debt, you still have a chance to do something about it. This Act allows homeowners to have their debt forgiven through a short sale or a loan modification without being taxed as income. For a full list of all the tax extensions, visit this website. If you are worried that your mortgage is becoming too burdensome, you can take other measures to relieve your household. Call Quest Loans for information on refinancing your current mortgage. The mortgage rates are...

Read More