Nov 25, 2009 | No Comments | Sean Mills
Here is the Q3 negative equity report from First American CoreLogic mentioned last night. From the report:
Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgage than their homes are worth.
Data Highlights
Nearly 10.7 million, or 23 percent, of all residential properties with mortgages were in negative equity [...]
Here is the Q3 negative equity report from First American CoreLogic mentioned last night. From the report:
Negative equity, often referred to as “underwater” or “upside down,” means that borrowers owe more on their mortgage than their homes are worth.
Data Highlights
Nearly 10.7 million, or 23 percent, of all residential properties with mortgages were in negative equity as of September, 2009. An additional 2.3 million mortgages were approaching negative equity, meaning they had less than five percent equity. Together negative equity and near negative equity mortgages account for nearly 28 percent of all residential properties with a mortgage nationwide.
The distribution of negative equity is heavily concentrated in five states: Nevada (65 percent), which had the highest percentage negative equity, followed by Arizona (48 percent), Florida (45 percent), Michigan (37 percent) and California (35 percent). Among the top five states, the average negative equity share was 40 percent, compared to 14 percent for the remaining states. In numerical terms, California (2.4 million) and Florida (2.0 million) had the largest number of negative equity mortgages accounting for 4.4 million or 42 percent of all negative equity loans
Read More » »
Nov 25, 2009 | No Comments | Sean Mills
I skipped the MBA market index earlier …
The MBA reports: Mortgage Applications Decrease in Latest MBA Weekly Survey
The Market Composite Index, a measure of mortgage loan application volume, decreased 4.5 percent on a seasonally adjusted basis from one week earlier. …
The Refinance Index decreased 9.5 percent from the previous week and the seasonally adjusted Purchase [...]
I skipped the MBA market index earlier …
The MBA reports: Mortgage Applications Decrease in Latest MBA Weekly Survey
The Market Composite Index, a measure of mortgage loan application volume, decreased 4.5 percent on a seasonally adjusted basis from one week earlier. …
The Refinance Index decreased 9.5 percent from the previous week and the seasonally adjusted Purchase Index increased 9.6 percent from one week earlier.
…
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.82 percent from 4.83 percent, with points increasing to 1.19 from 1.18 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
Note: This is the lowest contract interest rate since mid-May.
Click on graph for larger image in new window.
This graph shows the MBA Purchase Index and four week moving average since 2002.
In the past, the MBA index was predictive of future sales, but it has been questionable canada pharmacy for some time. The increase in 2007 was due to the method used to construct the index: a combination of lender failures, and borrowers filing multiple applications pushed up the index in 2007 even though activity was actually declining.
Recently there has been a substantial number of cash buyers, so the MBA index missed the strength of the recent existing home sales increase. Still the recent plunge in the 4 week moving average of the purchase index is probably worth watching.
Source Article
