Today’s News Synopsis:
According to the San Francisco Chronicle, home prices have decreased in 111 metropolitan areas from a year ago. Housing Wire reported a decrease in both home prices and mortgage rates, leading to more people being able to afford homes. According to latest survey from the Mortgage Bankers Association, mortgage applications increased over 10% from last week.
In The News:
Housing Wire – “IRA downgrades Ally to negative on rumors of ResCap bankruptcy” (11-9-11)
“Institutional Risk Analytics downgraded its outlook on Ally Financial (GJM: 21.2096 -2.89%) to negative following reports that suggest the lender is floating the idea of putting its Residential Capital mortgage lending subsidiary into Chapter 11 bankruptcy.”
Realty Times – “Mortgage Rates Head Lower Making Another Record” (11-9-11)
“As the financial crisis hit a high in Europe last week, here in the U.S. mortgage rates headed lower making another all time record. The potential of a Greek default held everyone’s attention even as some positive data was being released for the U.S. economy.”
San Francisco Chronicle – “Home Prices Decline in Almost Three-Fourths of U.S. Metro Areas” (11-9-11)
“Home values fell in almost three- fourths of U.S. cities in the third quarter as a slowing economy deterred buyers.”
Mortgage Bankers Association – “Mortgage Applications Increase in Latest MBA Weekly Survey” (11-9-11)
“Mortgage applications increased 10.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 4, 2011.”
Bloomberg – “Lennar Will Start Second Distressed Fund After First $650 Million Venture” (11-9-11)
“Lennar Corp. (LEN), the third-largest U.S. homebuilder by revenue, expects to close a $650 million private-equity fund for its distressed real estate unit this year and start a second fund in 2012, the Miami-based company said.”
DS News – “Fannie Mae Requests $7.8B From Taxpayers to Cover Q3 Deficit” (11-9-11)
“The nation’s largest mortgage company says it lost $5.1 billion during the third quarter of this year. That combined with a $2.5 billion dividend payment to Treasury for past bailout money left Fannie Mae with a net worth deficit of $7.8 billion at the end of September.”
Realty Times – “More Markets Show Signs of Improving” (11-9-11)
“The last few months have shown marked improvement in certain key markets across the country. This report comes fro the National Association of Home Builders/First American Improving Markets Index (IMI).”
Housing Wire – “Monthly mortgage payment almost 40% cheaper than 2006” (11-9-11)
“Housing affordability improved dramatically because of declines in both prices and mortgage interest rates, according to David Stiff, chief economist at Fiserv (FISV: 57.06 -3.40%).”
Looking Back:
An opinion survey from the Federal Reserve showed demand for commercial and industrial loans decreased in the third quarter of 2010. Budd Bugatch claimed housing fell to 2.22% of nominal GDP in the 3rd quarter of 2010. Foreclosure inventory increased 1.1% in September 2010, according to LPS.
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California Real Estate Investing News is a post from: The Norris Group
