The very popular $8,000 mortgage tax credit for first-time home buyers (and $6,500 for repeat buyers) is due to expire June 30. And if you haven't already signed a contract, you've missed the boat - all contracts must have been signed by April 30 and the loans have to close by the end of June.
That is, unless Congress passes a proposal currently in the Senate, sponsored by Majority Leader Harry Reid (D-Nev.), which would allow buyers three more months to close, with a deadline of Sept. 30. Apparently, Read more [...]
In a new report out from Fannie Mae's economic team, the mortgage finance giant is saying that even though there are positive signs, some major hurdles still remain in the way of housing market recovery - namely excess inventory.
"We estimate that June 2009 was the end of the recession, a good sign that we're moving forward," Fannie Mae chief economist Doug Duncan said in a statement. "Nevertheless, significant improvements in the labor market and consumer spending will be the big hurdles as we Read more [...]
Many economists have been speculating that the temporary first-time homebuyers tax credit has been artificially propping up the U.S. housing market, and now it is speculation no more. It is the truth as evidenced by the latest data from the National Association of Realtors.
Home contracts needed to be closed before December 1st for buyers to capitalize on the original $8,000 tax credit, and not surprisingly existing home sales dropped off a whopping 16.7 percent in December from the previous month, Read more [...]
With the recession came countless job losses and the crash of the housing market left numerous families facing foreclosure or flat out homeless. L.A. Times reports that President Obama's administration is beginning to put added pressure on the financial institutions and mortgage companies who are being blamed for most of these dire circumstances to help out.
Many mortgage lenders are experimenting by lowering mortgage payments and/or interest rates for some of their clients. Unfortunately, many Read more [...]
The U.S. House of Representatives voted Thursday to extend the first-time homebuyer tax credit through 2010 as well as offer a credit to more seasoned homebuyers. The vote was 403-to-12 and was widely expected to pass.
The current tax credit has been in effect since January as a piece of President Obama's economic stimulus plan and has allowed first-time homebuyers an $8,000 tax credit. It has been credited with jump starting the fallen national housing market, resulting in increases in existing Read more [...]
The Obama administration and the homebuyer's tax credit went a long way to stabilizing the housing market, with the Standard and Poor's Supercomposite Homebuilding Index increasing 30% in 2009. The Federal officials can buy up to $1.25 trillion in mortgage-backed securities with continued support for the housing markets. At this time, they have bought about $860 billion in the mortgage-backed securities program, and $129 billion (out of $200 billion program) in U.S agency bonds.
As the economy Read more [...]
Debbie Dragon on September 23rd 2009 in Mortgage News
The median price of home sales in 20 of the nation’s major cities fell by an average of 0.6 percent in April, according to Standard & Poor’s Case-Shiller index, showing great improvement over March when they slid by 2.2 percent. Yet plenty of people are not so sure this is a sign of economic recovery on the whole.
As Steve Blitz writes on his economic markets blog:
“Recession definitely impacts home prices… But in each cycle, home prices recover before the economy does... Because Read more [...]
Home prices will continue to sink another 11 percent in the coming months, resulting in a 36 percent overall decrease in home values, according to report released Monday from Moody's Economy.com, but the silver lining is that they will bottom out by the end of the year.
“Notwithstanding the intensifying economic gloom, the bottom of the housing downturn is within sight,” chief economist Mark Zandi said in a statement today. “Presuming we see strong action by policymakers to help support Read more [...]
The rate of mortgage loan delinquency in the U.S. increased to 3.96 percent in third quarter of 2008, the seventh consecutive quarterly rise and a 12 percent increase from the second quarter of this year, according to a survey from credit research company TransUnion.
"As expected, the mortgage sector continued to experience increases in the delinquency rate due to worsening economic conditions in both the labor and financial markets," said Keith Carson, a senior consultant in TransUnion's Read more [...]