HARP is helping more borrowers to refinance: HARP, the Home Affordable Refinance Program, has recently been restructured, and this has allowed more homeowners to be able to take advantage and refinance to lower rates. The new guidelines allow those who are underwater with their mortgages to take avail of the program – a big welcome to homeowners struggling with mortgage payments. This also effects the foreclosure and short sale rates, which are good for the housing market and economy. As of July, approximately 75,000 homeowners have refinanced under HARP, up 50,000 from before the program was extended to help underwater homeowners. This is great news and hopefully it will continue to help people. Now if only they would apply these programs to non-Freddie Mac and Fannie Mae loans!
New home sales hit two year high: It’s official: builders are back in business. New home sales have reached the highest numbers in over two years. Here in North San Diego several new communities have popped up over the last 1-2 years, and they are all selling well. This is another great sign for the housing market recovery.
Pending home sales numbers increase: Pending home sales have been increasing lately, and September numbers, although slightly up from the previous month, held steady. The increase has been in effect for 17 consecutive months, according to the National Association of Realtors (NAR). NAR’s chief economist believes that this upward trend should continue into 2013. This coming Spring should be a great time for sellers and buyers.
Number of low priced homes shrink in California: Although inventory is scarce everywhere and in most price ranges, properties around $300,000 and under are suffering worse. According to Zillow, there has been a 40% reduction in inventory under $313,000 in California in the last year. This explains the multiple offer situation in these categories – there simply is not enough supply to meet the demand. Hopefully after the holidays we will see more properties on the market.
Big banks being sued:Wells Fargo is being sued over alleged fraud in a mortgage lending program administered by the Federal Housing Administration. Bank of America is also being sued, by the Justice Department, for mortgage fraud to the tune of over $1 billion. The B of A cases involve loans created through Countrywide, before Countrywide was acquired by B of A in 2008…gee, maybe borrowers will see some of the fruits of the penalties if B of A is found liable – but of course that it doubtful (one can hope). Many of the claims involved in both suits go back over the course of 10 years. Well, I would wish these banks good luck in their suits, but as I have no sympathy I hope they get what they deserve.