Tag Archives: Cross River Homes

Mortgage rates average 3.42% | Cross River Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates holding steady with the 30-year fixed-rate mortgage remaining near its all-time record low of 3.31 percent in November of 2012.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.42 percent with an average 0.5 point for the week ending July 14, 2016, up from last week when it averaged 3.41 percent. A year ago at this time, the 30-year FRM averaged 4.09 percent.
  • 15-year FRM this week averaged 2.72 percent with an average 0.5 point, down from last week when it averaged 2.74 percent. A year ago at this time, the 15-year FRM averaged 3.25 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.76 percent this week with an average 0.4 point, up from last week when it averaged 2.68 percent. A year ago, the 5-year ARM averaged 2.96.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“We describe the last few weeks as A Tale of Two Rates. Immediately following the Brexit vote, U.S. Treasury yields plummeted to all-time lows. This week, markets stabilized and the 10-year Treasury yield rebounded sharply. In contrast, the 30-year mortgage rate declined after the Brexit vote, but only by half as much as the 10-year Treasury yield. This week, the 30-year fixed rate barely budged, rising just one basis point to 3.42 percent. This pattern suggests that mortgage rates are likely to remain low throughout the summer.”

Housing Starts down year over year in April | Cross River Real Estate

HUD AND CENSUS BUREAU ANNOUNCE NEW RESIDENTIAL CONSTRUCTION ACTIVITY IN APRIL

 

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the Census Bureau jointly announced the following new residential construction statistics for April 2016:

BUILDING PERMITS

Privately owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,116,000. This is 3.6 percent (±1.3%) above the revised March rate of 1,077,000, but is 5.3 percent (±1.3%) below the April 2015 estimate of Single-family authorizations in April were at a rate of 736,000; this is 1.5 percent (±0.8%) above the revised March figure of 725,000.  Authorizations of units in buildings with five units or more were at a rate of 348,000 in April.

HOUSING STARTS

Privately owned housing starts in April were at a seasonally adjusted annual rate of 1,172,000. This is 6.6 percent (±10.2%)* above the revised March estimate of 1,099,000, but is 1.7 percent (±10.1%)* below the April 2015 rate of 1,192,000. Single-family housing starts in April were at a rate of 778,000; this is 3.3 percent (±12.1%)* above the revised March figure of 753,000. The April rate for units in buildings with five units or more was 373,000.

HOUSING COMPLETIONS

Privately owned housing completions in April were at a seasonally adjusted annual rate of 933,000. This is 11.0 percent (±12.3%)* below the revised March estimate of 1,048,000 and is 7.4 percent (±10.6%)* below the April 2015 rate of 1,008,000. Single-family housing completions in April were at a rate of 691,000; this is 3.6 percent (±12.6%)* below the revised March rate of 717,000. The April rate for units in buildings with five units or more was 232,000

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www.hud.gov

The Consumer Financial Protection Bureau Takes Actions Against #Collection #Agencies | Cross River Real Estate

Encore Capital Group and Portfolio Recovery Associates (PRA) are two of the country’s largest debt buyers, a market that serves a crucial role in the proper functioning of consumer credit markets. Recently, the Consumer Financial Protection Bureau (CFPB) has taken legal action against Encore and PRA for their illegal debt collection activities. In their process, Encore & PRA demanded payments and filed lawsuits on debts without reviewing the proper documentation to ensure they were collecting the accurate amount from the correct consumer.
In their legal actions, the CFPB is ordering Encore to refund up to $42 million to consumers, cease collection efforts on $125 million in debts, and pay a penalty of $10 million. Meanwhile, they are ordering PRA to refund $19 million to consumers, stop its collection of $3 million in debts, and pay a penalty of $8 million. In addition to these actions, the CFPB is hoping their orders will contribute towards reforming and improving the procedures taken in the debt collection field.
Typically, debt buyers purchase delinquent accounts for only a fraction of what the overall debt total would be; however, they still have the option to collect the full amount claimed by the original lender. In the investigation, Encore and PRA were found to have purchased over $200 billion in defaulted consumer debts on credit cards, phone bills, and other accounts. The issue here is that the debts bought were inaccurate or could not legally be enforced; something both debt buyers knew or should have known.
In the investigation, it was found that both companies knowingly and intentionally entered into these agreements after being notified of debts being faulty, seeing the contractual disclaimers, or being aware of consumer disputes. Both companies went on to make these purchases without obtaining important and accurate documentation, or even checking to ensure the debts were accurate and enforceable. Encore and PRA even bought debts that intentionally imposed significant limitations on access to account-level documents that would have helped verify the debts.
Even after the initial purchase, Encore and PRA used unlawful tactics and made misrepresentations in order to pressure consumers to pay their debts. PRA’s tactics included falsely informing consumers their accounts were reviewed by an attorney, falsely stating that there would be a pending litigation, and coaxing consumers into agreeing to receive auto-dialed calls to their cell phones. Meanwhile, Encore notified some consumers that debts were legally enforceable, when they were in fact too old to legally enforce. Both companies also collected debts by entering into lawsuits against consumers across different states, knowing they would win the majority by default if consumers were unable to defend themselves.
Due to the unlawful actions taken by both companies, in addition to them being the largest debt buyers in the country, Encore and PRA will have to lead the reform in practices taken in the debt buying field. These changes would include taking proper measurements to ensure debt being bought is accurate and enforceable, proper research and investigation is taken, and that any lawsuits filed must contain specific documents and information that is both accessible and shows the debt is accurate.
These actions taken by the Consumer Financial Protection Bureau are in hopes of ensuring there are legitimate and fair practices being taken in the debt buying marketplace, so as to keep consumers from being misled by companies like Encore Capital Group and Portfolio Recovery Associates. Does this mean there will be no illegal activity on the part of collection agencies moving forward?  Very unlikely…
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Mortgage rates average 3.85% | Cross River Real Estate

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMM®), showing average fixed mortgage rates largely unchanged despite ongoing global growth concerns putting downward pressure on Treasury yields.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 3.85 percent with an average 0.6 point for the week ending October 1, 2015, down from last week when it averaged 3.86 percent. A year ago at this time, the 30-year FRM averaged 4.19 percent.
  • 15-year FRM this week averaged 3.07 percent with an average 0.7 point, down from last week when it averaged 3.08 percent. A year ago at this time, the 15-year FRM averaged 3.36 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.91 percent this week with an average 0.4 point, unchanged from last week. A year ago, the 5-year ARM averaged 3.06 percent.
  • 1-year Treasury-indexed ARM averaged 2.53 percent this week with an average 0.2 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.42 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“In contrast to the volatility in equity markets, the 10-year Treasury rate — a key driver of mortgage rates — varied just a little more than 10 basis points over the last week. As a result, the 30-year mortgage rate remained virtually unchanged, dropping 1 basis point to 3.85 percent. This marks the tenth consecutive week of a sub-4-percent mortgage rate. Despite persistently low mortgage rates, the pending home sales index dropped 1.4 percent in August, suggesting possible tempering in existing home sales in September.”

U.S. Home Prices Remain Flat in June, Case-Shiller Says | Cross River Real Estate

U.S. home price growth remained largely flat in June, according to a report released Tuesday, a further indication that the housing market is holding steady after years of turbulence.

The S&P/Case-Shiller Home Price Index, covering the entire nation, rose 4.5% in the 12 months ended in June, slightly greater than a 4.4% increase in May.

The 10-city index saw a slightly lower gain of 4.6% from a year earlier, compared with a 4.7% increase in May. The 20-city index gained 5% year-over-year, compared with a 4.9% increase in May.

Economists surveyed by The Wall Street Journal expected a 5% increase to the 20-city index.

This month’s Case-Shiller numbers are being closely watched after Monday’s stock market plunge has some investors eyeing real estate as a more stable investment. Another important indicator, sales of new homes in July, is also set to be released Tuesday.

But economists cautioned that the report reflects the state of the housing market a couple of months ago. It doesn’t take into account whether there will be any impact from the latest market news.

“If you’re uncertain about the economy you’re not going to take your money and buy a house,” said Steve Blitz, chief economist at ITG Investment Research. “It’s just a question mark that we didn’t have before.”

David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices, pointed to a major stock market drop as one potential factor that could cool off the housing market in the coming months.

“A stock market correction is unlikely to do much damage to the housing market,” he said. “A full-blown bear market dropping more than 20% could present some difficulties for housing and other economic sectors.”

Month-over-month home price gains were modest, according to the report. Not seasonally adjusted, the U.S. Index rose 1% from May to June. The 10-city and 20-city indexes saw a 0.9% and 1% change over the month respectively.

 

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http://www.wsj.com/articles/home-prices-remains-flat-in-june-case-shiller-says-1440507733

Homeownership rate drops to 48-year low | Cross River Real Estate

The homeownership rate in the United States in the second quarter declined to 63.4%, the lowest it has been since 1967, according to data from the Department of Commerce’s Census Bureau.

Further, the steady decline since 2009 continues.

Click to enlarge

(Source: Census Bureau)

On a quarterly basis, the rate was 1.3 percentage points (+/-0.4) lower than the second quarter 2014 rate (64.7%) and 0.4 percentage points (+/-0.4) lower than the rate last quarter (63.7%).

For the second quarter 2015, the homeownership rates were highest in the Midwest (68.4%) and lowest in the West (58.5%). The homeownership rates in the Northeast, Midwest, South and West were lower than the rates in the second quarter 2014.

Click to enlarge

(Source: Census Bureau)

National vacancy rates in the second quarter 2015 were 6.8% for rental housing and 1.8% for homeowner housing.

“The flipside of such strong rental demand is that the homeownership rate fell once again in the second quarter,” said Ed Stansfield, chief property economist at Capital Economics. “This suggests that homeownership has not kept pace with the cyclical rebound in household formation which is now underway, and gives weight to the idea that first-time buyers in particular are still struggling to gain a foothold in the market.

“However, foreclosure rates are declining steadily, employment and incomes are growing at a healthy pace and credit conditions are gradually loosening,” Stansfield said. “What’s more, there is no evidence of a fundamental shift in homeownership aspirations. Accordingly, we expect that the homeownership rate will soon find a floor.”

 

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http://www.housingwire.com/articles/34596-homeownership-rate-drops-to-48-year-low

Why Our Credit Scores Are Improving | Cross River Real Estate

As of March 2015, credit scores have never been higher! In fact, The Federal Reserve Bank of New York found that the average credit score was 699. It is even predicted that if present trends continue, the average credit score could cross the 700 threshold within coming months.
The increase in the average credit score can benefit consumers by increasing their flow of credit. This in turn encourages more people to apply for new credit. Additionally, with increasing scores, banks are more willing to lend to the consumer.
Before 2008, getting approved for a new line of credit or for a loan from a bank was relatively easy. However, after the banking crisis, this ‘easy credit’ that consumers were so used to changed drastically. Banks were no longer willing to give out loans unless borrowers had a stable income they could document and could afford the loan they were applying for. This forced consumers to reduce their bad debt by deleveraging and to start paying attention to how credit scores work.
Some articles suggest that increasing credit scores are due to time frames that have gone by since the banking crisis. A recent article in Forbes stated that since the crisis occurred in 2008 and negative information on credit comes off after 7 years, this is why credit scores will continue to rise. There may be a certain amount of individuals that have seen higher scores due to time passing from the crisis, but many began experiencing losses years after the crisis hit and continued to have damaged credit. Individuals lost employment as well as their homes over many years, so it is highly doubtful that scores are on the rise due to the time passing from the banking crisis and the time frames for negative information to remain on credit.
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northshoreadvisory.com

Mortgage Rates Average 4.02% | Cross River Real Estate

Freddie Mac today released the results of its Primary Mortgage Market Survey(R) (PMMS®), showing average fixed mortgage rates little changed from the previous week amid reports of the U.S. housing market strengthening.

News Facts

  • 30-year fixed-rate mortgage (FRM) averaged 4.02 percent with an average 0.7 point for the week ending June 25, 2015, up from last week when it averaged 4.00 percent. A year ago at this time, the 30-year FRM averaged 4.14 percent.
  • 15-year FRM this week averaged 3.21 percent with an average 0.6 point, down from last week when it averaged 3.23 percent. A year ago at this time, the 15-year FRM averaged 3.22 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.98 percent this week with an average 0.4 point, down from last week when it averaged 3.00 percent. A year ago, the 5-year ARM averaged 2.98 percent.
  • 1-year Treasury-indexed ARM averaged 2.50 percent this week with an average 0.3 point, down from last week when it averaged 2.53 percent. At this time last year, the 1-year ARM averaged 2.40 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for theRegional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quote
Attributed to Sean Becketti, chief economist, Freddie Mac.

“Mortgage rates were little changed this week. The rate on 30-year fixed-rate mortgages was 4.02 percent, an increase of just 2 basis points from the previous week. Economic releases confirmed increasing strength in housing. Existing home sales increased 5.1 percent in May to an annual pace of 5.35 million units and new home sales increased 2.2 percent to an annual pace of 546,000 units. Buyers appear anxious to purchase homes before the expected increase in interest rates later this year. Given the tight inventory of homes for sale, a 5.1-month supply at the current sales pace, home prices are being bid up.”

Housing Recovery – Prices and Production | Cross River Real Estate

The Federal Housing Finance Agency (FHFA) and the Standard and Poor’s/Case-Shiller recently released the Home Price Index (HPI) for March.

The price index reported by the Federal Housing Finance Agency (FHFA) decelerated in March, slowing to an annualized growth rate of 4.2% from 7.8% in February. Monthly growth rates have been volatile but have trended down since the recent peak in 2013. The level of the index remains below the housing boom peak but has recovered to a level consistent with trend growth prior to the boom and bust extremes.

Figure 1_March

House prices reported by the Standard and Poor’s/Case-Shiller show the same dynamics as the FHFA index, sharply rising prices during the boom followed by steep declines and finally recovery beginning in 2012. The Case-Shiller index also shows volatile monthly growth rates and a deceleration in price growth since 2013.

 

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http://eyeonhousing.org/2015/06/housing-recovery-prices-and-production/