Philadelphia Real Estate National Housing Market News
Philadelphia Real Estate National Housing Market News
With the debt ceiling resolution and the subsequent S&P downgrade there has certainly been no shortage of housing or housing related news this week. Here are some of the major stories:
• Foreclosure activity has fallen to its lowest level in over three-and-a-half years, according to RealtyTrac. The July foreclosure market report, released on Thursday, showed a 4 percent decline in filings from the previous month and a drop of 35 percent when compared to July 2010. (www.RealtyTrac.com)
• Mortgage interest rates plummeted to new lows this week as the economy felt the stings of European debt concerns and investors rushed to U.S. Treasuries, a scenario that pushed long-term yields lower. The 30-year, fixed-rate mortgage fell to 4.32%, its lowest point this year. That’s down from 4.39% last week and 4.44% a year earlier, FreddieMac said in its primary mortgage market survey. The 15-year, FRM decreased to 3.5% from 3.54% a week earlier and 3.92% last year. In addition, the five-year, Treasury-indexed hybrid, adjustable-rate mortgage hit 3.13%, down from 3.18% last week and 3.56% a year ago. (www.HousingWire.com)
• Foreclosure filings fall for 10th straight month – Foreclosure filings dropped once again in July, hitting their lowest level since November 2007, as processing delays and foreclosure prevention measures enabled a larger number of delinquent borrowers to remain in their homes.Filings were down 4% compared to June and were 35% lower than July 2010, marking the tenth straight month of year-over-year declines, according to RealtyTrac, a leading online marketer of foreclosed properties. (www.CNNMoney.com)
• Rental vacancies at 6 year low – Rental vacancy rates are at their lowest since 2003 and still falling, which will drive up rents even faster than the 2-3 percent average annual increase predicted earlier this year. Moreover, with demand outpacing supply, the rent-to-buy equation is turning increasingly favorable in markets across the nation.The Census Bureau reported that vacancies for rental housing were only 9.2 percent, 1.4 points lower than a year ago and .5 percent below the first quarter. We haven’t seen a 9.2 percent vacancy rate since 2003. The median asking rent for vacant units was %684. (www.RisMedia.com)
• Redwood Trust says Government support of mortgage market is not sustainable – Redwood trust, the only issuer of a private-label, mortgage-backed security since the financial meltdown in 2008, said the housing industry is benefiting from the government’s continued support of the market. Through Fannie Mae, Freddie Mac and Ginnie Mae, the government finances more than 95% of the mortgages currently being written in the U.S. When Congress comes back from recess in September, it will have a chance to begin unwinding its lifeline. The conforming loan limits, or the maximum amount of a loan that can be guaranteed by Fannie, Freddie or insured by the Federal Housing Administration, expires Oct. 1. Both the National Association of Realtors and the Mortgage Bankers Association, two extremely influential trade groups in the industry, are lobbying for extending the loan limits. (www.HousingWire.com)
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Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog
Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623 Direct
610.636.4364 Cellular
888.308.1148 Fax
[email protected]
www.CenterCityTeam.com
