Will House Prices Ever Recover?
In an article last week on SmartMoney.com, author Jack Hough made some surprising, almost inconceivable, 
predictions and observations regarding the U.S. housing market. His hypothesis is that housing prices will never recover to pre-recession levels.
Data Shows
According to the latest S&P/Case-Shriller reports, home prices in 20 major markets across the U.S. have declined 3.5% over the past 12 months (through February). That means prices are back to 2002 levels, and when inflation is factored into the equation, back to 1998 levels.
$25 Billion National Mortgage Settlement is Finalized
As you have likely heard by now, 49 of the 50 U.S.states recently reached agreement on a mortgage 
settlement which will pay $25 billion to borrowers and federal and state governments. The settlement will be paid by the nation’s five largest lenders: Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo. Most of the payout ($20 billion) will be distributed to borrowers to help them avoid foreclosure, while the other $5 billion will be paid to the government. Read more…
10 Real Estate Markets to Watch
Inman News recently released its second annual report on the “10 Real Estate Markets to Watch in
2012”. The report gives a glimmer of hope to the real estate industry by identifying ten markets that are showing signs of recovering quicker than others across the nation.
Inman News’ list was formulated based on several determining factors and metrics, including:
Is Freddie Mac Betting Against Homeowners?
In a surprising story that came to light just last week on npr.org, National
Public Radio (NPR) shared the results of its investigation, conducted along with ProPublica, on mortgage company Freddie Mac. The findings of the investigation revealed that Freddie Mae has been, as recently as 2011, utilizing complex mortgage securities that generated more money for the taxpayer-owned agency whenever homeowners were unable to qualify for new loans with lower interest rated.
Is a bailout on tap for the FHA?
As reported by CNNMoney earlier this month, there have been growing concerns among
economists that the Federal Housing Administration (FHA) will require a taxpayer bailout due to the agency’s lacking reserve fund.
Strategic Default is Becoming More of a Trend
As reported by msnbc.com, strategic defaults are becoming much more common in today’s struggling housing market. In fact, according to one recent survey, approximately three out of 10 mortgage defaults in 2010 were done “strategically”. That’s an increase of 8% (up from 22%) in 2009.
More Bad News About the State of the Housing Market
You may want to sit down for this: it turns out the state of the housing market is officially worse than we thought. The National Association of Realtors (NAR) confirmed last week that it has been overstating the pace of existing home sales dating back to 2007, meaning the already futile market is in even worse condition than previously believed.
Pending Sales on the Rise
In a recent article on RealtyTimes.com, author Carla Hill noted that pending home sales increased by more than ten percent during
the month of October, according to the National Association of Realtors (NAR). In addition, pending sales are now 9.4 percent higher than 2010 levels. The Midwest region showed the most promise with a 24.1 percent increase, while the Northeast and South regions also saw improvements.
Mortgage Rates Recover After Ugly Start
On Monday afternoon of this week, Mortgage News Daily reported that 
mortgage rates had recovered from what was an “ugly” Monday morning. It was during the late morning when the secondary market, which underlies and drives mortgage rates, shifted significantly to help rates return to similar levels from last week. However, that shift came after most lenders released their new rate sheets containing higher rates.
How Much Will the HARP Program Cost You?
As you have likely heard by now, last month the Obama administration announced new changes to HARP (Home Affordable Refinance
Program) which are designed to help borrowers refinance their existing mortgages (particularly those who owe more than their home is worth) to new loans with lower interest rates and monthly payments. As part of these changes, borrowers may refinance with someone other than their original lender. That means other lenders are able to compete for borrowers’ business by offering better terms and interest rates.
