FHA is tweaking programs to improve revenue and cut losses

There is a strong possibility that the FHA will not require any money transfer from the Treasury, which in any event would not occur until September. Meanwhile, the FHA is making tweaks to its program rules that could affect some loan applicants in the months ahead, and which are designed to improve revenue flows to the agency and cut back on losses.

Among the most immediate changes, new borrowers early next year are likely to be charged slightly higher annual mortgage insurance premiums — 1.35% of the loan balance rather than 1.25% at present.

To increase revenue streams long term, the FHA also is abandoning its practice of allowing borrowers to cancel their annual mortgage insurance premium payments when their loan balance drops to 78% of the property value. In effect, this will mean that borrowers who obtain 30-year FHA loans could be paying premiums for decades.


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Home prices rise 1.1 percent in Q3

U.S. house prices rose 1.1 percent in the third quarter compared with the second quarter, according to the Federal Housing Finance Agency’s (FHFA) seasonally adjusted purchase-only house price index (HPI).   Full Story: http://www2.realtoractioncenter.com/site/R?i=pQYxzL7BWu8xknC8ZCiYlQ

Deals on foreclosed homes dwindling

A new look at foreclosure discounts by Zillow found that the price difference between a foreclosed house and one sold outside of foreclosure was 7.7 percent nationally in September.

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Higher home prices reduce California housing affordability.

Rising home prices offset lower interest rates, reducing housing affordability in California during the third quarter of 2012, C.A.R. reported Monday.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California fell to 49 percent in the third quarter of 2012, down from 51 percent in second-quarter 2012 and from 51 percent in third-quarter 2011, according to C.A.R.’s Traditional Housing Affordability Index (HAI).

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OCTOBER ASKING PRICES RISE 2.9% YEAR-OVER-YEAR, BUT RENTS RISE FASTER AT 5.1%

Trulia today released the latest findings from the Trulia Price Monitor and the Trulia Rent Monitor, the earliest leading indicators available of trends in home prices and rents. Based on the for-sale homes and rentals listed on Trulia, these monitors take into account changes in the mix of listed homes and reflect trends in prices and rents for similar homes in similar neighborhoods through October 31, 2012.
 

Asking Prices Rise 0.7% Month-over-Month for Largest Year-over-Year Gain to Date

Full Story: http://info.trulia.com/trulia-price-and-rent-monitors-oct-2012

Foreclosure victims buying homes again

Fannie Mae and Freddie Mac make people wait seven years after a foreclosure to approve a new home loan, but the Federal Housing Administration will approve loans after three years, providing the buyer has established good credit and the ability to pay the mortgage.

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Home prices rise for fifth month in a row

The housing market picked up more momentum in August, as the average home price for 20 major cities jump 0.9 percent, according to the S&P/Case-Shiller home price index.

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