A majority of real estate experts interviewed for MacroMarkets' June Home Price Expectations Survey believe home prices will bottom in 2011. At the same time, most of the survey respondents expect home prices to grow at an abysmal 2% per year rate until 2015. MacroMarkets interviewed 108 economists, real estate experts and key players in the investment community to complete its survey on housing trends. (housingwire)
FOREIGN INVESTORS WELCOME
Sales initiated by foreign buyers rose to $82 billion for the 12-month period ending in March, up from $66 billion in the year-ago period, according to the National Association of Realtors. “International buyers were motivated by an influx of investment opportunities, vacation preferences and the need to establish residency for jobs and educational attainment, NAR said. 58% of foreign buyer purchases were in Arizona, California, Florida, and Texas. (housingwire.com)
Financing for Foreign Nationals coming soon!
Dear, president
If no one else seems to be listening, you have to go to the top. Marc Savitt, President of the National Association of Independent Housing Professionals (NAIHP) sent a letter dated June 13th, 2011 to President Obama asking him for an “immediate suspension of certain rules, regulations and guidelines” impacting mortgage lending and housing recovery.
Since 2009, the government has passed the Home Valuation Code of Conduct, RESPA 2010, Mortgage Disclosure Information Act, and made amendments to Regulation Z regarding loan officer compensation; all of which have driven up costs to the consumer, delayed closings, and prohibited good borrowers from obtaining financing. Dodd-Frank, the largest reform to date, is scheduled to be implemented on July 21st once the CFBP takes control. Sections of Dodd-Frank will further cripple the housing recovery and “exclude most low to moderate income borrower from home ownership.”
In the letter, Marc Savitt writes, "As you are well aware, this country is experiencing the worst financial crisis since the Great Depression. While your Administration and Congress search to find a solution to our economic troubles, consumers and small business continue to struggle with Main Street consequences created by misguided government regulations." The letter went on to say, "Since 2009, almost every housing rule, regulation, guideline and/or law, designed to protect the consumer, has ended up having the opposite effect. In the fragile housing finance market, consumer costs have increased substantially, including for those with excellent credit. At the same time, fraud has risen sharply, instead of declining. Moreover, underwriting guidelines have become so restrictive, even well qualified borrowers are being denied financing." (reuters.com)
For a copy of NAIHP's letter, go to http://www.usloans.com/president.pdf
NAIHP invited to testify before House Financial Services Committee (sub-committee on Housing), July 13th.
A DISASTER IN THE MAKING
There is a strong movement from the Republican Party to unwind Fannie Mae and Freddie Mac. The push is to remove the government from housing and lending and turn it all over to Wall Street; specifically the “Big Four.” Bank of America, Citigroup, Chase, and Wells Fargo, currently hold 70% of the private mortgage origination market.
The argument to unwind Fannie Mae and Freddie Mac can be summed up like this:
“During the boom Fannie Mac and Freddie Mac, in an attempt to appease their shareholders, got greedy and invested in mortgages that went bad. The government, at the expense of the tax payer, had to step in and bail Fannie and Freddie out, to prevent an all-out collapse of the housing market. Due to Fannie and Freddie’s greed driven mishap, they should be unwound and turned over to Wall Street, where we can all feel safe that the mortgage industry is solely in the hands of responsible shareholders and CEOs, who are not driven by greed, but financial responsibility.”
Fannie Mae, created in 1938 and Freddie Mac created in 1970 have been a solution for affordable housing, for decades; not the problem.
EXISTING HOME SALES PLUMENT – NATIONAL AVERAGE
Existing-home sales fell 15.3% in May from a year ago, with the National Association of Realtors recording sales at the seasonally adjusted annual rate of 4.81 million units last month, down from 5.68 million housing units a year earlier. (housingwire.com)
Employment woes, spiking gas prices, severe weather, and tight underwriting guidelines are being blamed for the decline in existing home sales.
Shocking news from the fed
The economy is weak. There is a slowdown in hiring and job growth. The $600 billion purchase of long term Treasuries to suppress interest rates ends this month. The Fed holds the Fed Funds Rate at near 0%. Summed up, it is going to be a long year.
RATE WATCH
MORTGAGE TYPE | INTEREST RATE | APR |
30 YEAR FIXED | 4.250% | 4.364% |
15 YEAR FIXED | 3.375% | 3.572% |
5/1 ARM | 2.375% | 2.765% |
Interest rates as of 06/27/10. Conforming interest rates. Interest rates and APR based on loan amounts not to exceed $417,000. Loan to values not to exceed 80%. 720+ credit score. Owner occupied only. Purchase and rate in term refinances. Not all applicants will qualify. Call today for your individual scenario rate quote.
Chris Tiller - Realtor
The Brett Tanner Team
Keller Williams Realty
3540 E. Baseline Rd., Suite 120
Phoenix, AZ 85042
Phone: 602-561-1346
Fax: 1-888-292-0678
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