Sources:
Home prices: ‘Double-dip’ confirmed
Mortgage originations down 35% in first quarter
RealtyTrac reports nearly one-third of home sales are distressed
Home loan rates fall, but so does mortgage demand
Interthinx risk index shows occupancy fraud rose 25% in 1Q
Half of mortgage borrowers could never afford 20% down payment: NFCC
Today’s News Synopsis:
A new government plan may require larger down payments on cheaper mortgages. Inman has compiled a list of the top 10 markets for real estate investors. The Labor Department reports the nation’s unemployment rate rose to 9.1%.
In The News:
Bloomberg – “U.S. Mortgage Proposal May Result in ‘Rental Entrapment’” (6-3-11)
“Minorities and the working class may find it harder to buy homes under a U.S. plan that would require larger down payments to qualify for lower-cost mortgages, according to lenders, consumer groups and lawmakers. Bankers and consumer advocates, often at odds on policy issues, united today to make the case for revising the government proposal and released data that they said shows the rule would deny loans to millions of borrowers while doing little to reduce defaults.”
Orange County Register – “Costa Mesa home market speeds up” (6-3-11)
“Every two weeks, Orange County broker Steve Thomas publishes a report on the supply of local homes for sale. Here’s what the latest report — as of May 26 — has to say about Costa Mesa”
Inman – “10 Best Markets for Real Estate Investors” (6-3-11)
“The results of the analysis mirror two major economic trends: population growth and improving employment. In the past decade, the South has seen the biggest jump in population, up 14.3 percent to about 114 million people, according to the U.S. Census Bureau. The nation’s second most populated region, the West, saw its population jump 13.8 percent to nearly 72 million.”
DSNews – “Nation’s Unemployment Rate Rises to 9.1%” (6-3-11)
“The economy added just 54,000 jobs last month, the worst showing in eight months. Employment increases averaged 220,000 over the prior three months.”
Housing Wire – “CBO estimates another $42 billion needed for Fannie and Freddie” (6-3-11)
“The Congressional Budget Office estimated Fannie Mae and Freddie Mac will need another $42 billion in subsidies from 2012 through 2021, based on the latest projections from first quarter data.”
Housing Wire – “Research firm predicts California home price appreciation by 2014” (6-3-11)
“The average home price in the San Diego-Carlsbad-San Marcos metropolitan statistical area in the first quarter was about $324,200, according Local Market Monitor’s latest report, while the average home price in San Francisco was $623,200 and the average home price in Los Angeles-Long Beach-Glendale was $352,200. These home prices are down 1%, up 7%, and up 15%, respectively, from each metro’s equilibrium price.”
Housing Wire – “Freddie Mac to securitize multifamily adjustable-rate mortgages” (6-3-11)
“Adjustable-rate mortgages on multifamily properties can now be sold to Freddie Mac’s multifamily Capital Markets Execution program for securitization, the government-sponsored enterprise said Friday.”
Looking Back:
One year ago, stats from Freddie Mac showed the average rate for 30-year FRMs increased to 4.79 percent. Moody’s Investor Service reported commercial property values were down 42% from the peak in 2007. According to Trulia, many areas in the United States were becoming cheaper to rent than own in. The US Department of Labor (DOL) received 10,000 fewer initial unemployment claims in the week ending May 29 than the previous week.
For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.
California Real Estate Investing News is a post from: The Norris Group