Housing Market: Fannie Mae Reports That Consumers Expect “Modestly Positive” Increases In Home Prices; Confidence In Economy Dips

11 09 2012

Consumer sentiment regarding the housing market continues its modestly positive trend, according to results from Fannie Mae’s August 2012 National Housing Survey. Supported by the expectation that home prices will rise in the next year and more saying it is a good time to sell, Americans have maintained a cautious but improving view of the housing market and homeownership. However, their stalling household financial expectations and declining economic optimism will likely mean the rate at which the housing market recovers will remain tempered.

Homeownership and Renting

  • Average home price change expectation is 1.6 percent, largely consistent with last month and down from a June high of 2.0 percent.
  • Eleven percent of those surveyed say home prices will go down in the next year, holding steady at the lowest level since the survey’s inception in June 2010.
  • At 40 percent, the percentage of respondents who say mortgage rates will go up in the next 12 months has increased by 4 percentage points since July.
  • Eighteen percent of respondents say it is a good time to sell, the highest level since the survey’s inception.
  • The percentage of respondents who say it is a good time to buy has remained steady at 73 percent.
  • Forty-four percent of those surveyed say home rental prices will go up in the next year, a decrease of 3 percentage points, while 5 percent expect them to go down.
  • The average rental price change expectation decreased 0.7 percent from last month to 3.2 percent, the lowest level since January 2012.
  • The percentage of respondents who say they would buy if they were going to move increased slightly to 67 percent, while 28 percent would rent.

The Economy and Household Finances

  • Consumer optimism continues to wane, with 33 percent saying the economy is on the right track, a slight decrease from last month and 5 percentage points lower than the May 2012 peak.
  • The percentage of respondents who expect their personal financial situation to get worse fell slightly to 13 percent, while those expecting their personal financial situation to stay the same increased slightly to 41 percent.
  • The share of respondents who say their household income is significantly higher than it was 12 months ago remained steady at 20 percent, while those who say it is significantly lower increased slightly to 16 percent.
  • Fifty-six percent of those surveyed say their household expenses are about the same as they were a year ago, a slight decrease over July.

Mortgage Rates: 30-Year Fixed Mortgage Rates Decline To 3.59% In Latest Week; 15-Year Fixed Rates At 2.86%

30 08 2012

Housing Industry: Home Renovation Spending Now Represents 50% Of Total Housing Construction Expenditures, Up From 25% According To Report

30 08 2012

Housing Market: S&P Case-Shiller Home Price Index Increases 0.5% In June 2012; Prices Return To Summer 2003 Levels

28 08 2012

Housing Market: Latest Data Shows Home Prices Increasing Annually Year-Over-Year For First Time Since 2007

27 08 2012

According to the FHFA data, the first and second quarter of this year delivered the first year-over-year increase in the seasonally adjusted purchase-only house price index ()HPI)( since the first and second quarters of 2007. The second quarter registered a 1.3% inflation-adjusted price increase. Forty-three states experienced price increases. The two FHFA charts below show a distinct stabilization in prices. The chart of price changes shows an encouraging pattern of higher highs and higher lows that signifies a sustained trend upward from the bottom. The price index indicates downward momentum came to a screeching halt last yearת with 2012 building off that base.

For more:  http://seekingalpha.com/article/828731-latest-housing-price-data-confirm-housing-bottom-is-underway

Mortgage Rates: 30-Year Fixed Rates Rise To 3.66% In Latest Week; 15-Year Rates At 2.89%

24 08 2012

California Foreclosure Filings Increase Slightly In July 2012 While Bank-Owned Properties Increase 10% In Latest Month, Down 50% From Last Year

15 08 2012

The number of California homes entering foreclosure creeped up in July, a new report shows, but in Southern California they were up sharply in the Inland Empire counties of San Bernardino and Riverside. ForeclosureRadar.com showed that the number of default notices statewide was essentially flat from June, up 1.4% month-over-month, but rose 12.3% from July 2011.

Statewide the number of homes that went back to banks was up 10.4% from the prior month and down 54.2% from the same month a year earlier. Meanwhile, the number of properties sold to a third party was up 10.6% from the prior month and down 6.6% from the same month a year earlier. The number of foreclosed homes selling on the California market has also been dwindling.