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Posts Tagged ‘July’
Thursday, September 24th, 2009
 As the news today that housing resales dropped in August sent stocks spiraling downwards, those within the real estate industry were faced with a really interesting reality. The housing market rebound may not be as linear as once hoped.
Existing home sales fell 2.7% in August after a record increase of 7.2% electrified the industry in July. However, there are many factors that likely played into the change. The federal tax credit of $8,000 for new home buyers is due to expire soon, likely contributing to the glut of deals in July. Jobless rates continue to be high, as do foreclosures. With many foreclosures yet to hit the market (likely knocking home prices down), it seems reasonable to think that the market may not climb steadily, but rather peak and valley as it restarts.
This may just mean that government programs and incentives (such as the tax credit) are important to getting consumers back in the market, and that sellers may just need to watch timing to match the ups and downs of the market. Even when home sales increase, the inventory of houses on the market is still high and unlikely to dissipate rapidly. But sellers can likely work within the curves of the market to best optimize when to sell their home (and at what price).
Finally, the coming winter means that it’s unsurprising that home sales will dwindle. Home sales generally increase during the spring and summer, with the warmer temperatures. Sales will probably decrease as fall changes to winter.
Tags: August, federal tax credit, foreclosures, home sales, housing market, July, real estate, real estate industry, sellers
Posted in Industry News | No Comments »
Wednesday, September 2nd, 2009
 Pending home sales improved for the sixth straight month in July to a level of 97.6 on the National Association of Realtors (NAR) index. While the index has improved dramatically from January, when it was around 80, levels still are nowhere near what they were during the housing bubble. In 2005, the pending home sales index neared 130.
Although pending home sales have increased, some of the factors behind the increase include falling home prices, low mortgage rates and the Obama administration’s $8,000 tax credit for first-time home buyers. But with the tax credit expiring towards the end of the year and home prices beginning to go back up (or decrease less rapidly), some question whether the rise in pending home sales will be sustainable.
Tags: home sales, housing bubble, index, July, Mortgage, pending home sales, Wall Street Journal
Posted in Industry News | No Comments »
Wednesday, August 5th, 2009
 HECM volume increased dramatically this month. 9,830 HECMs were endorsed in July, up from 8,633 last month. This is a good sign if 2009 HECM volume is to surpass the HECM volume in 2008.
The same 9 lenders continued to possess an increased market share despite one of them (World Alliance Financial Corp) going out of buisness last month. One wonders if the increased number of endorsed HECMs from World Alliance Financial Corp (also known as Senior Lending Network) are a result of them trying to close out their pipeline as fast as possible. World Alliance Financial Corp rose to the #3 spot this month from number 4 a month ago. It will be interesting to see if they remain in the #3 spot next month.
The top nine lenders are ordered below with rankings determined by the number of HECMs endorsed by the lenders YTD. Financial Freedom only endorsed 10 HECMs last month, while Countrywide endorsed 8. One Reverse Mortgage surpassed Countrywide this past month in HECMs closed YTD. Countrywide was acquired by Bank of America back in January, and it will be interesting to see if the HECM volume attributed to them continues to decline as well (so far it looks as if it has).
Finally, it is important to note that only nine lenders were highlighted because several lenders, led by 1st AAA Reverse Mortgage Inc. are clustered under Urban Financial. This group has closed between 900 and 960 leads so far this year, but is still well under Urban Financial’s totals.
Top Nine HECM Lenders by Volume – June
1. Wells Fargo
2. Bank of America
3. Financial Freedom
4. World Alliance Financial Corp.
5. Countrywide
6. One Reverse Mortgage
7. MetLife
8. Generation Mortgage
9. Urban Financial
Top Nine HECM Lenders by Volume – July
1. Wells Fargo
2. Bank of America
3. World Alliance Financial Corp.
4. Financial Freedom
5. One Reverse Mortgage
6. Countrywide
7. MetLife
8. Generation Mortgage
9. Urban Financial
The complete lender list can be found here.
Tags: 1st AAA Reverse Mortgage, Bank of America, Countrywide, financial freedom, generation mortgage, hecm, HECM volume report, July, June, lender, lender list, lenders, MetLife, One Reverse Mortgage, reverse mortgage, reverse mortgages, Senior Lending Network, Urban Financial, wells fargo, World Alliance Financial Corp
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Monday, July 27th, 2009
This week’s reverse mortgage rates are below. These rates are effective for the week beginning July 28, 2009.
APR:
HECM CMT 300: 3.47
HECM CMT 325: 3.72
HECM CMT 350: 3.97
HECM LIBOR 250: 2.785
HECM LIBOR 275: 3.035
HECM LIBOR 300: 3.285
Expected Rates:
HECM CMT 300: 6.62
HECM CMT 325: 6.87
HECM CMT 350: 7.12
HECM LIBOR 250: 6.31
HECM LIBOR 275: 6.56
HECM LIBOR 300: 6.81
Rates for the HECM LIBOR and HECM CMT rose again this week, though the APRs for both products declined. The expected rate for the HECM LIBOR rose by a tenth of a point this week, while the expected rate for the HECM CMT rose by seven hundredths of a point. One would hope that the rates will stop rising soon.
Tags: 2009, APR, CMT, expected rate, hecm, hecm rates, interest rate, July, LIBOR, reverse mortgage, Reverse Mortgage Rate, reverse mortgage rates, reverse mortgages, This Week, weekly hecm rate, weekly hecm rates
Posted in Consumer News, Industry News | No Comments »
Monday, July 20th, 2009
This week’s reverse mortgage rates are below. These rates are effective for the week beginning July 21, 2009.
APR:
HECM CMT 300: 3.48
HECM CMT 325: 3.73
HECM CMT 350: 3.98
HECM LIBOR 250: 2.786
HECM LIBOR 275: 3.036
HECM LIBOR 300: 3.286
Expected Rates:
HECM CMT 300: 6.55
HECM CMT 325: 6.80
HECM CMT 350: 7.05
HECM LIBOR 250: 6.21
HECM LIBOR 275: 6.46
HECM LIBOR 300: 6.71
Expected rates for the HECM LIBOR and HECM CMT rose dramatically this week, increasing by over a tenth of a point for each. This occured despite the fact that the APR for the LIBOR declined.
Tags: 2009, APR, CMT, expected rate, hecm, hecm rates, interest rate, July, LIBOR, reverse mortgage, Reverse Mortgage Rate, reverse mortgage rates, reverse mortgages, This Week, weekly hecm rate, weekly hecm rates
Posted in Consumer News, Industry News | No Comments »
Monday, July 13th, 2009
This week’s reverse mortgage rates are below. These rates are effective for the week beginning July 14, 2009.
APR:
HECM CMT 300: 3.46
HECM CMT 325: 3.71
HECM CMT 350: 3.96
HECM LIBOR 250: 2.793
HECM LIBOR 275: 3.043
HECM LIBOR 300: 3.293
Expected Rates:
HECM CMT 300: 6.42
HECM CMT 325: 6.67
HECM CMT 350: 6.92
HECM LIBOR 250: 6.10
HECM LIBOR 275: 6.35
HECM LIBOR 300: 6.60
Both the HECM Libor and the HECM CMT saw significant drops in Expected Rates and APRs this week. Hopefully the rates will continue to fall, as they have the last few weeks.
Tags: 2009, APR, CMT, expected rate, hecm, hecm rates, interest rate, July, LIBOR, reverse mortgage, Reverse Mortgage Rate, reverse mortgage rates, reverse mortgages, This Week, weekly hecm rate, weekly hecm rates
Posted in Consumer News, Industry News | No Comments »
Monday, July 6th, 2009
This week’s reverse mortgage rates are below. These rates are effective for the week beginning July 7, 2009.
APR:
HECM CMT 300: 3.53
HECM CMT 325: 3.78
HECM CMT 350: 4.03
HECM LIBOR 250: 2.801
HECM LIBOR 275: 3.051
HECM LIBOR 300: 3.301
Expected Rates:
HECM CMT 300: 6.53
HECM CMT 325: 6.78
HECM CMT 350: 7.03
HECM LIBOR 250: 6.25
HECM LIBOR 275: 6.50
HECM LIBOR 300: 6.75
Both the HECM Libor and the HECM CMT saw significant drops in Expected Rates this week, although the APR of the HECM CMT rose.
Tags: 2009, APR, CMT, expected rate, hecm, hecm rates, interest rate, July, LIBOR, reverse mortgage, Reverse Mortgage Rate, reverse mortgage rates, reverse mortgages, This Week, weekly hecm rate, weekly hecm rates
Posted in Consumer News, Industry News | No Comments »
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As the news today that housing resales dropped in August sent stocks spiraling downwards, those within the real estate industry were faced with a really interesting reality. The housing market rebound may not be as linear as once hoped.
