May 15, 2008

MBS prices are up +3/32 (FNMA 30yr 5.5 at 99.29), which is about 5/32 lower than yesterday at this time. Unfavorable repricing took place yesterday. The 30 yr fixed FNMA required net yield (60 day) is now at 6.01%, the highest level of the month. MBS markets began with moderate losses prior to the release of the CPI report. April Core CPI rose at a 2.3% annual rate, below the consensus forecast of 2.4%, and MBS markets surged. So far, higher food and energy prices have not been passing through in a large way to the prices of other goods. The Fed has been talking up inflation fears for a couple of weeks, and MBS markets have been falling, so the good news was a relief to many investors. The Fed is generally considered to be comfortable with Core CPI readings below 2.5%. The Dow is up about 100 points. No more economic data will be released today, but there will be several Fed speakers.

The Mortgage Bankers Association weekly purchase activity index fell by 1%, while the refinancing activity index increased by 6%. Average rates for the prior week fell to 5.82% from 5.91% for 30-year fixed mortgages.

March 14, 2008

California February 2008 Home Sales

A total of 20,513 new and resale houses and condos were sold statewide last month. That makes it the slowest February in DataQuick's records, which go back to 1988. Sales were up 7.1 percent from 19,145 in January and down 34.3 percent from 31,228 for February last year.

The median price paid for a home last month was $373,000, down 2.6 percent from $383,000 for the month before, and down 21.0 percent from $472,000 for February a year ago. The median peaked last March/April/May at $484,000.

Around half the drop in median is due to shifts in the types of homes selling, and how those homes are financed. Last month 15.5 percent of the state's financed home purchases were purchased with "jumbo" loans over $417,000. A year ago it was 37.3 percent.

March 6, 2008:

TEMPORARY CONFORMING LOAN LIMITS RELEASED FOR HIGH-COST AREAS

Washington, DC – The Office of Federal Housing Enterprise Oversight (OFHEO) today released the maximum conforming loan limits that will be in effect through year-end as a result of The Economic Stimulus Act of 2008. That legislation permits Fannie Mae and Freddie Mac to raise their conforming loan limits in certain high-cost areas. The new jumbo limits are a function of median home prices as estimated by the U.S. Department of Housing and Urban Development (HUD).

The maximum for temporary jumbo conforming loan limits, which apply to loans originated in the period between July 1, 2007 and December 31, 2008, are as high as $729,750 for one-unit homes in the continental United States. Two, three and four-unit homes have higher limits as well. Alaska, Hawaii, Guam and the Virgin Islands also have higher maximum limits.
Seventy-one Metropolitan and Micropolitan Statistical Areas are affected including 224 counties and cities not in counties. In addition, there are 21 counties outside of Metropolitan or Micropolitan areas that show increases, plus Guam and four municipalities in the Marianas Islands. The newly increased limits range from $417,500 in Greeley, Colorado to the highest of $793,750 in Honolulu, Hawaii.

February 12, 2008: The U.S. House of Representatives passed a stimulus package last week that raised the FHA and conforming loan limits to as high as $729,750 in high-cost areas. By increasing the loan limits, borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. Research shows that an increase in the FHA limit would enable an additional 138,000 Americans to purchase homes, and 200,000 families to refinance their homes safely and affordably.


January 04, 2008: California real estate licenses dropped last month from the year before for the first time since March 1999, ending a 7 ½ upswing in which licensees increased by 81 percent. Read the full story.

December 27, 2007: President Bush has signed a bill that aids homeowners in a shortsale situation. For the next three years, forgiven mortgage debt will not be taxed as income. The bill HR 3648 also extends the tax deduction for mortgage insurance premiums for homeowners who earn less that $109,000 per year.

December 6, 2007: In an effort to provide some stability to the mortgage market, while helping homeowner’s – as many as 2 million sub-prime ARM loans made at the start of 2005, through July 30, 2007, whose interest rates are scheduled to jump to higher rates between January 1, 2008 through July 31, 2010 ... Read the full story