Building permit applications dropped by 4.9% after two months of strong increases, but Burt White, chief investment officer for LPL Financial, said the disparity between the figures is likely a weather-related anomaly. Despite the volatility in housing data, the improvement points to a stronger economic backdrop. “It’s a good indication that Americans are beginning to reinvest again,” said White. “The biggest investment people make is in their homes.”

According to a national FHA mortgage company, real estate financing continues to be supported by government loan programs like FHA, VA and Home Path, to name a few. Current mortgage interest rates remain at record levels with 30-year fixed rate mortgages still available below 5%. While the consumer won’t be at the fore of this recovery, housing starts did hit their highest level in six months–an indication that consumers are becoming more confident and comfortable with spending.

Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics. It takes four months to establish a trend of new home purchases.

Sales of new single family homes fell 11.3% to an annual pace of 355,000 units. This was much lower than consensus estimates of 440,000 annual sales and 45,000 less than the October print of 400,000, which was revised for the worse from 430,000. This was the slowest pace of new home sales in 7 months and the worst month over month decline since January 2009.

The National Association of Realtors is stating that this is the third straight month where beyond new homes, existing home sales have increased. They are citing that there is a 4.6% increase in pending contracts for existing rooms.  Other news, inventory of houses across the country is dropping because there has been some oversupply in other areas of the country. And percentage of home ownership, increased last month.  In addition, interest rates continue to stay historically low, the $8,000 tax credit is still available for first time homebuyers, and home sales in general continue to rise. 

Mortgage refinancing applications to refinance existing home mortgages decreased 7.2%, on a week-to-week basis, reversing the 7.2% increase during the week ended July 31, according to the Washington-based MBA. The four-week moving average for all mortgages was down 0.7%. Home refinancing applications made up 52.3% of all applications last week, down from 54.2% the previous week. ARM mortgage loans accounted for 5.8%, up from 5.4%. Read the complete article online> Mortgage Loan Application Activity Slowing

Realtytrac: Foreclosures Up 11% in Last Qtr.

The coordinated actions were part of a national law-enforcement effort by 2 federal and 23 state agencies to crack down on loan modification scams.  “Operation Loan Lies,” has targeted loan modification companies that allegedly promised to obtain modifications or stop foreclosures, but the companies actually did nothing. Advance fees charged by the loss mitigation firms were equal to one or more mortgage payments, but no loan negotiations ever took place.  See the original article at FTC Shuts Down Loan Modification Scams.

Greg Rand of Better Homes & Gardens’ Rand Realty discuss foreclosures and the latest real estate news. They consider the housing crisis and why homeowners are making it difficult to realize foreclosure prevention. 

Homeowners, Loan Modifications and Foreclosure Prevention?

Loan modification plans are disputed as nearly 50% of homeowners re-default on their mortgage after their lender reduces the interest rate and lowers the home loan payment.  Where do we go from here?

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