Daily Archives: June 19, 2013

April home prices rise at a faster pace | Katonah Real Estate

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U.S. home prices continued their upward trajectory in April, rising 0.7% from March, according to data from the latest FNC Residential Price Index. The gain in April marks the largest price appreciation since June 2012, due largely to rising demand in the spring and summer.

More credit availability, interest rates that remain low despite quickly rising and low home prices are driving forces behind the housing recovery. Rising interest rates have most likely drawn out additional pent-up demand. 

Foreclosure activity continued to decline, with distressed sales making up only 16% of total home sales, down from 17.8% in March and 21.6% a year earlier, FNC noted.

When analyzing non-distresses properties in the 100 largest metropolitan areas, the FNC 100-MSA composite index reveals that April home prices increased faster when compared to previous months.

Year-over-year, home prices rose 4.6% in April. For months, the indices have been revised downward, resulting in more moderate annual price accelerations.

Of the component markets tracked by the FNC 30-MSA composite index, 25 showed higher prices in April, with home prices up 1.0% or more in nearly a third of the markets.

 

April home prices rise at a faster pace | HousingWire.

Former first daughter Chelsea Clinton lists NY Flatiron condo | Bedford Hills Real Estate

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The couple bought their new place in The Whitman, a secure building on East 26th Street, for $10.5 million in early March, which led them to list their former home at the nearby Grand Madison for $4.475 million. The couple didn’t move far; both buildings are located in the Flatiron District and have views of Madison Square Park.

Mezvinsky bought the Grand Madison condo in 2008 for $4 million, reported the Real Deal. The couple had been living there since their marriage in 2010 until very recently, writes Zillow.

 

Former first daughter Chelsea Clinton lists NY Flatiron condo | HousingWire.

Dodd-Frank impact on loan availability remains a concern | Bedford Real Estate

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The qualified mortgage rule’s full impact on home lending remains somewhat of a mystery, but lawmakers and industry professionals debated the rule’s potential influence on the home lending market during a House Subcommittee hearing Tuesday.

Industry experts testified in front of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, sharing fears about certain borrowers being locked out of the lending system.

“We need to make sure we have a financial system that allows access to credit for low and moderate income households,” said Member Gregory Meeks.”The housing sector is vital to our economic recovery.”

Committee member Rep. Sean Duffy, R-Wis., said his main concern is how the ability-to-repay standards in addition to the QM rule will affect his constituents’ ability to get a mortgage.

Rep. Gary Miller, R-Calif., acknowledged QM’s role in protecting consumers from subprime loans and other products, but noted that it also could have the unintended effect of keeping creditworthy borrowers on the sidelines.

Rep. Robert Pittenger, R-N.C., stated that this new rule could end up undermining the housing recovery. He said the CFPB’s QM rule has caused great concerns to both banks and credit unions, who fear regulators will view any loan outside of QM standards as too risky. 

Once each committee member had a chance to testify, the spotlight shifted to the table of witnesses. 

Charles Vice, commissioner of the Kentucky Department of Financial Institutions, said state regulators have found that regulations and supervision needs to be more tailored to how community banks lend.

Vice, who has been in the finance industry for more than 20 years, said it’s crucial that community banks be allowed to positively impact the national and local economy. 

James C. Gardill, chairman of the board at WesBanco, is concerned that many creditworthy families will be denied access to credit as banks become afraid to make any loans outside of QM standards. 

This means that less affluent communities won’t be given what they need to thrive, he said. The end result of the CFPB’s rule will be less available credit to some individuals and communities. 

 

Dodd-Frank impact on loan availability remains a concern | HousingWire.

OCC: Housing market shows strong growth | Pound Ridge Real Estate

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Treasury yields have posted historical lows for the past several years, implying strongish economic growth and the potential for higher inflation, the Office of the Currency of the Comptroller said.

In the OCC Semiannual Risk Perspective from the National Risk Committee, the yield curve has stayed positively sloped and relatively steep, which shows higher household and corporate income and revenue growth.

However, for banks, the possible negative effects of higher rates include a decline in the value of investment securities, including many mortgage-related securities, the OCC said.

Meanwhile, net income for 2012 increased 12% year over year to more than $94 billion, with banks of all sizes experiencing improvements in operating performance.

Part of the growth was attributed to the largest banks reporting a 21% reduction in provisions for loan losses.

In addition, mortgage refinance activity helped boost system revenue, but that source of strength may ease in 2013.

Overall, the OCC said, “The housing market showed signs of improvement in 2012 due to increased investor demand and the limited supply of new and existing homes for sale.”

 

OCC: Housing market shows strong growth | HousingWire.