Dakotas at the bottom for Mortgage Delinquency

South Dakota records second lowest rate in the nation for mortgage delinquency in the third quarter.

According to TransUnion, North Dakota comes in lowest with 1.4% of homeowners two months behind on payments.  South Dakota is next with a rate of only 1.6%.  Florida's rate of 7.8% tops the list.

Nationally the delinquency rate rose more than 1% to 3.96% as of September 30, compared to 2.56% last year.

Source: Sioux Falls (AP) & The Brookings Register Monday December 8, 2008

Realtors say existing home sales rose in July

WASHINGTON (AP) — Sales of existing homes rose 3.1 percent in July, surpassing expectations, as buyers snapped up deeply discounted properties in parts of the country hit hardest by the housing bust.

However, the number of unsold properties hit an all-time high, the latest indication that the worst housing slump in decades is far from over. Prices nationwide are not expected to hit bottom until early next year.

The National Association of Realtors reported Monday that sales rose to a seasonally adjusted annual rate of 5 million units, down from June’s downwardly revised rate of 4.85 million units. Sales had been expected to rise by only 1.6 percent, according to economists surveyed by Thomson/IFR.

‘‘The process of a recovery has begun,’’ said Joel Naroff, president of Naroff Economic Advisors. ‘‘It’s not going to be short and swift, but it’s begun nonetheless.’’

Home sales were about 13 percent lower than a year ago and prices were down dramatically. The median price for a home sold in July dropped to $212,000, down by 7.1 percent from a year ago.

Despite the third monthly sales increase this year, the number of unsold single-family homes and condominiums rose to 4.67 million, the highest number since 1968, when the Realtors group started tracking the data.

That represented a 11.2-month supply at the July sales pace, matching the all-time high set in April.

Until the inventory level is reduced to more normal levels, analysts say, the housing slump is likely to persist. The inventory level is being driven higher by a massive wave of mortgage foreclosures.

Between 33 and 40 percent of sales activity is coming from foreclosures or other distressed properties, he estimated.

While buyers are pouncing on lower prices — especially in places like California, Florida and Nevada — sales are sluggish in formerly stable states like Texas.

‘‘People are responding to lower prices,’’ Yun said, but there is ‘‘too much uncertainty’’ about the housing market’s future to mark a definite bottom.

Source: Brookings Register August 25, 2008

Brookings Real Estate News | June 5, 2008

Residential Sales Take Off

Brookings area residential real estate sales strong in May 2008.

Sales were up by 10% this May compared to the same period in 2007. The Brookings area Multiple Listing Service (MLS) recorded $7.2 million dollars in sales for May 2008 as compared to $6.5 million dollars in sales for May 2007.

Home values were on the rise as well. The average home price for May 2008 was $157,515. This is an increase of 13% over the average price of $139,754 for May of 2007.


Source East Central Board of Realtors MLS
Compiled by Justin Fjeldos

Daily Real Estate News | February 13, 2008

Bernanke: Housing Rebound Coming

U.S. Sen. Pete Domenici (R-N.M.), after a private meeting with Federal Reserve Chairman Ben Bernanke, said the central bank chief anticipates signs of a rebound in the housing market by the end of 2008.

Concerns remain that the market downturn will cause an economic recession, which prompted the Fed to cut interest rates recently.

Meanwhile, despite an "unusually uncertain" economic outlook, San Francisco Fed President Janet Yellen says the country will avoid an "outright recession." A survey of economic forecasters by the Philadelphia Fed indicates slightly less than 50-50 odds of a recession.

Source: Investor's Business Daily (02/13/08)

© Copyright 2008

Daily Real Estate News | February 13, 2008

Mortgage Applications Slide Last Week

The number of mortgage applications declined last week compared with the previous week, but business was still brisk, according to the Mortgage Bankers Association weekly mortgage applications survey released Wednesday.

Loan volume was 1063.5, a decrease of 2.1 percent on a seasonally adjusted basis from 1086.6 a week ago. On an unadjusted basis, the index decreased 0.4 percent compared with the previous week, but was up 65 percent compared with the same week a year ago.

The refinance share of mortgage activity decreased to 67.4 percent of total applications from 69.2 percent last week.

Mortgage rates, which increased slightly, were probably behind the small decline:

30-year fixed-rate mortgages increased to 5.72 percent from 5.61 percent.
15-year fixed-rate mortgages increased to 5.18 percent from 5.09 percent.
1-year ARMs increased to 5.72 percent from 5.62 percent.

Source: Mortgage Bankers Association (02/13/2008)

Daily Real Estate News | January 3, 2008

Christmas Holiday Slows Mortgage Business

The mortgage business was slow over the Christmas holiday week, even compared with the previous year, according to the Mortgage Bankers Association weekly mortgage applications survey.

The mortgage volume index decreased 11.6 percent to 533.9 on a seasonally adjusted basis compared to the previous week. It was down 20 percent compared with the same week a year ago.

The refinance share of mortgage activity decreased to 50.9 percent of total applications from 53.0 percent the previous week.

Also, mortgage rates were down:

30-year fixed-rate mortgages decreased to 6.05 percent from 6.10 percent.
15-year fixed-rate mortgages decreased to 5.61 percent from 5.66 percent.
1-year ARMs decreased to 6.00 percent from 6.03 percent.

Source: Mortgage Bankers Association (01/03/2007)

Daily Real Estate News | December 20, 2007

Fed's New Loan Laws Don't Please Much of Anybody

Critics of the lending industry say the regulations released Tuesday by the Federal Reserve aren’t tough enough.

For one, they don’t help the millions of homeowners who currently have subprime mortgages and can’t afford to pay them.

The sweeping changes, to take effect early next year after a 90-day public comment period, will impose new restrictions on all of the country's mortgage lenders, brokers, and loan servicers.

"On the core provisions, the rules are weak and very burdensome to consumers," said Alys Cohen, staff attorney at the National Consumer Law Center.

The rules aren't tough enough on the lending industry for Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee.

"We now have confirmation of two facts we have known for some time," Frank said. "One, the Federal Reserve system is not a strong advocate for consumers, and two, there is no Santa Claus. People who are surprised by the one are presumably surprised by the other."

Source: USA Today, Noelle Knox (12/19/2007)