Housing Bottom Now Expected in 2013, Recovery Looks Weaker, by Colin Robertson, Thetruthaboutmortgage.com


There’s been a lot of interesting housing-related news over the past week, with some good and some bad.

The first bit is that economists finally believe the national housing bottom is near.

Yes, we’ve heard that before, several times, but per Zillow, the economists surveyed are all “largely” on-board this time.

So that’s good news. The bad news is that more than half of the same respondents believe the homeownership rate will continue to fall from the 65.4% level seen in the first quarter.

In fact, one in five think homeownership will be at or below 63% in coming years, which will test the all-time low established in 1965.

For the record, some areas of the nation have already appeared to bottom, and are actually up quite a bit.

In hard-hit Phoenix, home prices are already up 12% from their bottom. In San Francisco, prices are up 10% from bottom.

But New York, Atlanta, and Chicago are still waiting for the bounce.

Housing Recovery Not Looking Too Hot

Meanwhile, future home appreciation isn’t looking as good as it once was.

Back in June 2010, Zillow-surveyed economists expected cumulative appreciation of 10.3% from 2012 to 2014.

Now, the experts only see home prices appreciating a paltry 3.5% for the same period.

That’s $1.25 trillion less in housing wealth than previously expected. Yikes.

So expect an “L” shaped recovery…in other words, a steep decline, followed by many, many flat years. Sure, it may a be “squiggly L” with little ups and downs, but an “L” nonetheless.

That said, make sure you actually like the place you buy, don’t just buy it because you think you’re going to make a killing off it as an investment.

The good news is mortgage rates continue to be absurdly low, with the 30-year fixed matching a record low 3.48% this week, per Zillow.

I didn’t see rates falling that low, so I’ll start eating my hat now.

But I still think the low rates could be a major artificial stimulus, which has led to homeowners listing the worst properties out there of late.

Why the Housing Recovery Will Take Time

If you’re wondering why the housing market won’t bounce back immediately, you merely need to consider all the ineligible buyers.

Let’s start with the millions of underwater homeowners, who won’t be able to move unless they’re rich enough to buy a new house and short sell or bail on their current property.

There aren’t many people this lucky, especially now that lenders actually document income.

Then there are those who still haven’t gone through foreclosure yet, but are hanging on by a thread.

There are plenty who still haven’t been displaced, but will be in the next several years. So there’s a ton of shadowy shadow inventory yet to materialize.

Even those who received loan modifications are in serious trouble. A recent study released by credit bureauTransUnion found that a scary 60% of those who received loan mods re-defaulted just 18 months later.

So there’s a lot of bad news that just isn’t making it to the presses, largely because we are riding the “good news train” right now in the housing world.

All of these former homeowners will also have difficulty qualifying for a mortgage in the future, so they’re essentially out of the mix.

Let’s not forget the millions that are unemployed…they obviously won’t be able to buy a home either, so this explains the dip in homeownership as well.

And it doesn’t bode well for home prices going forward. Consider that as home prices rise, more would-be home sellers will list their properties. This should keep downward pressure on prices for a long time.

It also makes one question if the bottom is really as close as some think, or even for real. We saw misleading upticks with the homebuyer tax credit too, so it’ll be interesting to see if this latest rally has legs

The Truth About Mortgage

Fannie Mae and Freddie Mac Serious Delinquency rates declined in May, by Calculatedriskblog.com


Fannie Mae reported that the Single-Family Serious Delinquency rate declined in May to 3.57% from 3.63% April. The serious delinquency rate is down from 4.14% in May last year, and this is the lowest level since April 2009.

The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.

Freddie Mac reported that the Single-Family serious delinquency rate declined slightly in May to 3.50%, from 3.51% in April. Freddie’s rate is only down from 3.53% in May 2011. Freddie’s serious delinquency rate peaked in February 2010 at 4.20%.

To Read the rest of this article go to calculatedriskblog.com

Greece and Fed Reserve just handed U.S. housing market a gift


The recent elections in Greece and comments by the Federal Reserve have given our housing market a gift, at least temporarily.  Watch today’s video to find out what happened and how you can benefit from this!

Some things are more important than your mortgage rate – Seriously!


If you are shopping for a home loan, you MUST know the right way to compare lenders, and how to choose the best rate/fee structure for your needs.  In some cases, the lowest mortgage rate isn’t always the best choice … watch today’s video to find out why!

Portland real estate prices JUMP 7%, and more FHA changes coming!


RMLS released a report on Friday that showed over 7% gain on sold home prices from May 2011 to May 2012 … proving the Portland real estate market is heating up! Also, there are more FHA loan changes coming this week – watch for details.

The Greek Impact on U.S. Housing Market


BIG NEWS coming out of Greece this weekend, as its citizens vote on whether to exit the European Union. The outcome could have a major impact on U.S. borrowing rates for mortgages and other credit. Watch this video for details!

Repairs can affect your home purchase and mortgage loan!


When you buy a home, and repairs are needed, it’s important to make sure your Sales Agreement is written the right way. Here’s a few tips on what your mortgage lender will expect, and how to make your home loan process go smoother!

Top 10 Reasons to Buy a Home right now!


This is one of the most pivotal times in our history, and a major opportunity for home-buying. Watch this video as I give you the top reasons for you to get into the marketplace … whether this is your first purchase, or 35th!

FHA streamline refinance mortgage insurance drops dramatically!


FHA finally did something right … they are reducing the mortgage-insurance cost for borrowers who qualify for a streamline refinance. If you or someone you know currently has an FHA loan in the mid 4’s or higher, have them contact me now!

Not locking your Home Loan can cost you Thousands!


When mortgage rates drop, many people make the mistake of taking too long to “shop around”, or waiting to lock a rate. If the market shifts quickly, a delay can cost you thousands. Watch today’s video to find out why!

Buying A Home After Foreclosure


There have been so many people that have lost their home through foreclosure that population is now a major factor lenders are going to have to deal with if they are going to be able to sell loans and realize profits. People should not assume they are forever out of the housing ownership market simply because this down cycle caused them to lose their home. It is very possible to rebound and to buy again. Same goes for people that have filed a Bankruptcy. Sit down with a Mortgage Broker or Credit Union Loan Professional and find out where you stand when it comes to obtaining a Mortgage Loan today.

Loan Tips KC

There was a fantastic article on MSNBC this week covering “From Foreclosure to Homeownership.” It talks about the growing number of homeowners buying homes once again after facing foreclosure, bankruptcy and/or short sales. As a mortgage lender, I’m encouraged to see the market turning and more families buying homes once again.

Click here to read the article on foreclosure to homeownership.

FHA Loans Paving the Way

The article makes the case that FHA and government-backed loans (also including VA loans) have paved the way for more homeowners to buy houses. It even says that FHA loans and VA loans had most of the market share in 2011. While tax incentives have been given to first-time buyers, these loan programs are also helping past homeowners who faced foreclosures and short sales to buy houses again. And the incentives continue as seen by the  FHA’s reduced fees effective in June 2012

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Market action causes lowest mortgage rates in history!


Unemployment numbers and issues in Europe this week have just caused U.S. mortgage rates to drop again to the lowest level in history. Even if you bought a home or refinanced in past two years, this is a big enough drop to warrant doing it again!