Mortgage Rates Ease

Mortgage rates ease

Mortgage rates eased this week but the housing market "is struggling to regain traction" even though rates remain near historic lows, Freddie Mac Chief Economist Frank Nothaft said as the mortgage giant released its weekly rate survey.

Single-family housing starts dipped slightly in January to an annualized pace of 413,000 units, the lowest rate since May 2009, and homebuilder confidence remains near record lows, Nothaft said, citing the National Association of Home Builders/Wells Fargo Housing Market Index.

Rates on 30-year fixed-rate mortgages averaged 5 percent with an average 0.7 point for the week ending Feb. 17, down from 5.05 percent last week but up from 4.93 percent a year ago.

The 30-year fixed-rate mortgage hit a low in Freddie Mac records dating to 1971 of 4.17 percent during the week ending Nov. 11. Until 2009, the survey had never recorded rates for 30-year fixed-rate mortgages below 5 percent, Nothaft noted.

The average rate on 15-year fixed-rate loans was 4.27 percent with 0.7 point, down from 4.29 percent last week and 4.33 percent a year ago. The 15-year fixed-rate loan hit a low in records dating back to 1991 of 3.57 percent in November.

Rates on 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 3.87 percent with an average 0.6 point, down from 3.92 percent last week and 4.12 percent a year ago. The 5-year ARM hit a low in records dating to 2005 of 3.25 percent in November.

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Sales of West Coast Foreclosed Homes Climb

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West Coast Foreclosure Sales Climb to Pre-Robo-Signing Levels

Foreclosure auction sales in states along the West Coast have bounced back to levels not seen since robo-signing moratoriums went into effect last fall, the California-based tracking firm ForeclosureRadar reported Tuesday.

The company’s coverage area includes the states of Arizona, California, Nevada, Oregon, and Washington.

ForeclosureRadar says it recorded “significant increases” in all five states during the month of January both in terms of the number of properties that went back to the bank and those that were sold to third-party investors. REO inventories increased everywhere except in Oregon where banks sold more homes then they took back.

“We have not seen this level of activity on the courthouse steps for months,” said Sean O’Toole, CEO and founder of ForeclosureRadar. “The increase in foreclosures is just in time to provide a fresh supply of entry level homes for the spring homebuying season.”

ForeclosureRadar’s data show that in Arizona, foreclosure sales in January skyrocketed when compared to the previous month, with a 56.2 percent increase in homes that went back to the bank and a 52.7 percent increase in sales to third parties.

Both banks and third parties bought more properties in January 2011 than in any other single month since ForeclosureRadar began tracking Arizona foreclosure sales in August 2009. Notice of trustee sale filings in the state were up 10.9 percent in January 2011 from the prior month, the first increase in six months.

January foreclosure sales followed a similar path in California, with 51.5 percent more sales going back to the bank than in December and 52.8 percent more properties purchased by third parties.

Reversing a four-month declining trend, notice of default filings in the Golden State rose 6.9 percent month-over-

month, according to ForeclosureRadar’s analysis, while notices of trustee sale dropped 13.8 percent from the prior month. January marked the first time in six months that foreclosure cancellations in the state increased, rising 12.4 percent compared to December’s cancellations.

Activity on Nevada courthouse steps increased for the second consecutive month, with banks taking back 36.8 more homes in January than they did in December and foreclosure sales to third parties jumping 43.8 percent. ForeclosureRadar says there were more third party sales in Nevada in January 2011 than in any single month in 2010.

Nevada’s notice of default filings increased 5.3 percent to begin 2011. Conversely, notice of trustee sale filings dropped 22.2 percent month-over-month, but are still up 31.7 percent from a year ago.

Oregon saw a dramatic swing in activity with its first increase in foreclosure sales in four months. ForeclosureRadar says homes that were sold back to the bank increased 33.4 percent in January, while sales to third parties soared 70.0 percent from December.

Despite the recent gains in Oregon’s numbers, foreclosure sales remain well below where they were at this time last year, down 39.0 percent from January 2010, according to ForeclosureRadar’s study.

Washington saw the number of foreclosures that went back to banks climb 54.0 percent in January. Those sold to third parties increased 23.0 percent.

Following a two month slide, notice of trustee sale filings in Washington rose 8.9 percent. Still, the figure is down 30.0 percent from July 2010.

While the increase in foreclosure sales is significant, O’Toole says he’s seen larger surges after moratoriums or delays have played out in the past, in particular, California’s Senate Bill 1137, which was signed into law in July 2008 and resulted in a surge in notice of default filings that far eclipsed any prior period.

“That is not the case here,” O’Toole said. “Despite months of slow sales, we’ve simply returned to prior levels, which to me indicates banks remain reluctant to aggressively foreclose.”

ForeclosureRadar tracks activity that occurs each day on the courthouse steps. The company provides a detailed drill-down analysis into the data for each state on its Web site. This information can be easily accessed by clicking on the specific state names within this article.

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How to Negotiate Your Mortgage Rate

When it comes to shopping for a mortgage, consumers seem to be most interested in obtaining the lowest mortgage rate. But it's important to note that a mortgage rate is only as good as the associated costs and terms. In other words, be sure to focus on the closing costs, which can drive up the actual interest rate (APR), along with the terms of the loan, which can lead to more money paid out in interest.

[In Pictures: 12 Money Mistakes Almost Everyone Makes]

Shop Around Those issues aside, it's imperative that you shop around to ensure you receive the best mortgage rate, instead of just calling up your local bank. You'd be surprised at how many Americans obtain just a single mortgage quote. Would you do the same when searching for a airplane ticket or a new car? It's doubtful. Without multiple offers, it'll be that much more difficult to negotiate your mortgage rate.

So be sure to speak with several local banks and credit unions, along with a mortgage broker or two, who can shop your rate with multiple lenders on your behalf. Once you've got several rate quotes in hand, you can compare closing costs and associated terms, and use them against each other until someone offers you a better rate. Also, be sure to comparison shop for homeowner's insurance and title insurance, both of which are usually recommended by the bank, lender, or real estate agent. Don't just take someone else's word for it that it's the best deal around—get proof.

Mortgage Rates Are Always Negotiable A mortgage rate is always negotiable; it's just a matter of convincing the bank, broker, or lender to take less commission. Don't let anyone tell you otherwise. If you're a strong borrower, meaning you've got good credit, plenty of assets, and the ability to document income, you'll have much more leverage.

Conversely, if your credit is shot and you have next to nothing in assets, it'll be more difficult to obtain multiple quotes and pit lenders against one another. Credit score and loan to value ratios are probably the most important factors in determining your mortgage rate. Either way, know that a mortgage rate quote is just a quote until it's actually locked, meaning you have a written confirmation from the bank that it's official.

Television Ads Assume You're an A-plus Borrower Those ads on TV assume you've got excellent credit and at least a 20 percent down payment—your rate will rise significantly if your credit is sub-par and you can only rustle up 5 percent for a down payment.

[Visit the U.S. News My Money blog for the best money advice from around the web.]

Ask what the mortgage rate pricing adjustments are on your loan. Mortgages are different, so have the loan officer or broker go through every fee with you so you know exactly how they came up with your rate. And empower yourself by learning the mortgage jargon (hello mortgage dictionary) before you apply, that way you'll put a little fear into the issuing bank, reducing the chances of them attempting to rip you off. That said, be sure to prepare yourself long before even shopping for a mortgage to increase your odds of receiving the best rate possible.

Colin Robertson is the author of several finance websites aimed at helping consumers save money, including The Truth About Mortgage and The Truth About Credit Cards, which includes his popular credit score range.

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San Diego Ranks as ‘Brain Magnet’ | San Diego Business Journal

San Diego Ranks as ‘Brain Magnet’

Monday, February 14, 2011   San Diego ranked seventh on a list of U.S. cities that gained the most college graduates compared to the population over 25 years old from 2007 to 2009.   It was the sole California city among the top 10 cities on the list.   The data, reported by the San Diego Regional Economic Development Corp. on Feb. 14, bodes well for the region’s image as a top brain magnet, but comes with a caveat that housing affordability and a perceived lack of job growth could impede this type of growth in the future.   EDC President Julie Meier Wright said the study confirms a belief that the best economic development entails creating jobs for educated workers, and that the region’s tech sector continues to fare better than other industries during the recession.   Recently the EDC and the San Diego Software Industry Council joined forces to promote the area as a haven for high-tech jobs, stating there are currently 6,000 openings across a variety of sectors.   The study called the American Community Survey found the No. 1 city in terms of percentage gain of college graduates for the two-year span was New Orleans at 5.42 percent. It was followed by Raleigh-Cary, N.C.; Austin-Round Rock, Texas; Nashville-Davidson-Murfreesboro-Franklin, Tenn.; and Kansas City, Mo./Kan. in the top five.   The results of the study can be viewed at www.newgeography.com.   — Mike Allen

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Survey Sees Signs of Optimism in Office and Industrial Markets | San Diego Business Journal

By Lou Hirsh

Monday, February 14, 2011

Researchers are reporting signs of real, quantifiable optimism — at least for the coming three years — about California’s office and industrial real estate markets, including the San Diego County scene.

The market is not on the cusp of a pre-recessionlike boom in building or buying. But the frequently-cited UCLA Anderson Forecast, which periodically surveys commercial real estate investors around the state, says rising optimism is evidence of a turning point in commercial markets by 2013.

“After 18 months of pessimism about office and industrial markets, we have now seen six months of optimism,” said Senior Economist Jerry Nickelsburg, in a Feb. 3 statement by the economic forecasting arm of UCLA’s Anderson School of Management.

The investor survey was initiated in 2006 by the Los Angeles-based law firm Allen Matkins Leck Gamble Mallory & Natsis LLP, which has offices in San Diego and Del Mar Heights. The firm continues to conduct the survey, covering seven California regions, with UCLA researchers, polling respondents on whether the investment climate is improving or weakening.

Based on its latest survey taken in November and December, researchers said investor optimism in Los Angeles and San Diego counties is at its highest level since June 2007, indicating confidence regarding rental and occupancy rates. This suggests, researchers concluded, “that something closer to 12 percent rather than 20 percent vacancy rates is in the not too distant future.”

Anderson forecasters have also projected that by the middle of 2011, demand for office space in those two counties should begin to turn around as employment rises, and excess space currently on the market should be absorbed through 2012.

Commercial brokerage firms have also recently published local data for 2010, pointing to gradually declining vacancy rates in the office and industrial sectors as new construction remains at a near standstill.

Some locally based property investment firms have already ramped up acquisitions based in part on a sense of improving market conditions. For instance, San Diego-based Westcore Properties, which owns industrial and office buildings, recently announced that its global acquisition volume quadrupled in 2010 — hitting $284.5 million, up from $71.2 million in 2009. Five of 10 completed deals in the past year were in California.

“We continue to seek new value-add opportunities that we can position for strong future upside and that fill a niche in each market,” said President and Chief Executive Officer Don Ankeny. “There is tremendous opportunity in the market today.”

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The San Diego Foundation's Community Scholarship Program

The San Diego Foundation recognizes that the sustainability and quality of our region depend on a well-educated and experienced workforce. We also believe that education is a right, and we strive to help all who seek an education the opportunity to pursue their dreams.

We reach both of these goals through The Foundation’s Community Scholarship Program, the largest provider of scholarships in the San Diego region with more than 150 scholarship funds at an average fund size of over $150,000. Since 1997, The San Diego Foundation Community Scholarship Program has allocated approximately $15 million in scholarships. Last year alone we awarded $2.72 million in scholarships to more than 600 recipients.

The Foundation is extremely proud of the impact of this program on San Diego and its students. The program awards scholarships to graduating high school seniors, current college students, and adult re-entry students, and includes access to accredited two-year colleges, four-year universities or licensed trade/vocational schools.

For additional information regarding The San Diego Foundation’s Community Scholarship Program, please contact scholarship staff at 619-235-2300 or by  e-mail at scholarships@sdfoundation.org.

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$2 Bil In Aid Now Available to CA Homeowners

$2 billion in aid open to struggling homeowners

By Lily Leung

Monday, February 14, 2011 at 6 a.m.

Howard Lipin / Union-Tribune staff

More financial help is on its way to those fighting to remain in their homes throughout the state, including the San Diego region.

Eligibility requirements

 

Applicants must:

• Own and occupy their homes as their primary residence.
• Not exceed $729,750 in current unpaid principal balances on first mortgages.
• Meet low- and moderate- income limits
• Complete and sign a hardship affidavit to document reasons for hardships.
• Have mortgage loans that are delinquent or "in imminent default."
• Have enough income to pay modified mortgage payments according to guidelines from servicers participating in the programs.

Source: keepyourhomecalifornia.com

To apply

 

To apply, call 888-954-KEEP (5337) or your mortgage servicer - the company to which you send you monthly mortgage payments.

Each program requires the participation of the company or agency that holds the mortgage.

For more, visit KeepYourHomeCalifornia.org.

Four new mortgage-aid programs costing $2 billion might help 100,000 households avoid foreclosure, California Housing Finance Agency officials say.

The state program, "Keep Your Home California," is available to eligible homeowners throughout the state, including in San Diego County.

The four components would:

• Offer up to $3,000 a month for unemployed homeowners, up to six months of benefits.
• Help those who have fallen behind on payments due to temporary change in housing circumstance with payments of up to $15,000 per household.
• Give relocation assistance to homeowners are have finished short sales or deed-in-lieu of foreclosure transactions.
• Provide capital to cut the outstanding principal balances of struggling borrowers who owe significantly more than their homes are worth.

Each program requires the participation of the company or agency servicing the mortgage. As of last week, GMAC, Guild Mortgage, the California Housing Finance Agency and California Department of Veterans Affairs are all taking part in all four programs.

Others, including Bank of America, JPMorgan Chase, CitiMortgage and Wells Fargo, are currently in some of the programs. Housing agency officials are expecting that list to grow in the coming weeks. (See a chart of servicers and their programs.)

"We're excited to offer this program," said Housing Finance Agency spokeswoman Evan Gerberding. "It's not only going to help individual families, it's also going to help to stabilize entire communities."

Funding comes from the U.S. Treasury Department’s Hardest Hit fund, money intended to help homeowners stave off foreclosures.

After receiving the $2 billion, officials from the California Housing Finance Agency - which has helped renters and first-time homebuyers with financing and programs for 35 years - spoke to community stakeholders throughout the state to create the four new programs.

“No one program will solve the foreclosure crisis affecting our state, but together we hope to make a difference for as many families as possible," said Assemblymember Norma Torres, Chair of Assembly Committee on Housing and Community Development, in a media statement. Torres is Democrat representing part of San Bernardino County.

The programs are intended for Californians who own and occupy their homes as primary residences. They must meet certain income and financial-hardship requirements.

News of the efforts comes about a week after the state Attorney General's Office announced a new statewide foreclosure fund fueled by a $6.5 million settlement of a case against two former Countrywide executives accused of predatory-lending practices. (Read "$6.5M Countrywide settlement could help homebuyers".)

Lily Leung: (619)293-1719; lily.leung@uniontrib.com; Twitter @LilyShumLeung

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