Friday, April 29, 2016

Are We Headed For Another Recession? Team Thayer #realEstate #housing #market #investor #news #oregon

Rates drop BH Team Thayer Real Estate OregonWhile many analysts expected economic growth to be weak in the first quarter, no one expected it to be as weak as it actually was.
The Bureau of Economic Analysis (BEA) “advance” estimate for the gross domestic product (GDP) growth rate in Q1 reported a rate of 0.5 percent for the quarter. And while Q1 has had its problems in recent years—the GDP grew at only 0.7 percent for the first quarter of 2015, then shot up to 3.9 percent for Q2—none were expecting it to be that low.
GDP growth was 1.4 percent in the fourth quarter of 2015.
According to the BEA, the slow Q1 GDP growth reflected a larger decrease in nonresidential fixed investment, a deceleration in personal consumption expenditures (PCEs), a downturn in federal government spending, an upturn in reports, and larger decreases in primary inventory investment. These factors were partially offset by an upturn in local government spending and an acceleration in residential fixed investment, according to the BEA.
“Our forecast was about 0.7 growth and it came in at 0.5,” said Fannie Mae Chief Economist Doug Duncan. “People's expectations had adjusted toward that. The good news in there was that housing actually increased its contribution, and that's consistent with our forecast. The thing I think people continue to be disappointed with is the consumption numbers and the business fixed investment numbers were quite weak. That's actually not surprising, given that corporate profits have fallen over the last several months, and companies typically don't invest when profits are falling.”
Duncan added that is a risk component of the economic picture going forward, there is a “pretty high correlation between a decline in profits and a recession, even though most people don't have that in their forecast at the moment.”
With the GDP growth that low, is a recession in the cards for the near term? Capital Economics said the likelihood is low.
“Following on from the 1.4 percent gain in the final quarter of last year, (growth of less than 1 percent) suggests the U.S. economy lost more momentum and could be headed for a full-blown downturn,” Capital Economics said in a recent report. “The risk of a recession this year is still relatively low, however, particularly as the improvement in the activity surveys points to a rebound in GDP growth soon.”
GDP growth   Team Thayer Real Estate Oregon

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Homeownership Rate Is dropping, But Not For Everyone! Team Thayer #realestate #market #housing #news #oregon

Home Protection BH Real Estate News OregonJust when the homeownership rate seemed to be on its way back after falling to a 48-year low in the second quarter of 2015, it took another step backward on Thursday.
One particular demographic, however, is experiencing a dramatic increase homeownership despite the reversal of the nationwide homeownership rate for Q1.
According to the Census Bureau’s Housing Vacancy Survey (HVS) for April 2016 released on Thursday, the U.S. homeownership rate for the first quarter of 2016 declined by 20 basis points over-the-year and by 30 basis points over-the-quarter down to 63.5 percent. The Q1 homeownership rate is only 10 basis points higher than Q2 2015’s 48-year low of 63.4 percent.
For Generation X, however, the homeownership rate is on the way up. About 58.9 percent of Gen Xers owned homes in Q1, which is an over-the-year increase of 50 basis points.
“Of particular note was the continued increase in the homeownership rate for Gen X. Households aged 35-44 increased their homeownership rate a full 0.5 points, moving to 58.9 percent from 58.4 percent,” Trulia Chief Economist Ralph McLaughlin said. “This is the second straight quarter of year-over-year increases. This is important as many Gen Xers lost their homes during the recession, so this is a cautiously optimistic sign that we may be seeing boomerang buyers coming back into homeownership. This also represents a glimmer of hope the homeownership rate for Gen Xers may continue on an upward trend in the remainder of the year. Although this year-over-year change is not statistically significant, the 0.5 point increase is at the upper bound of an error rate of 0.5 percent.”
While the homeownership rate has jumped for Gen X, it has declined among other age groups. The rate for household heads over 65 years of age declined by 20 basis points over-the year in Q1 (down to 78.8 percent) and by 90 basis points for those aged 45 to 54 down to 69.2 percent.
Click here to view the complete HVS.
Homeownership graph Team Thayer  Oregon

Team Thayer

Thursday, April 28, 2016

HELOCs Are A Viable Funding For Investors! Team Thayer #realestate #realtor #housing #market #investor #news #oregom

Justin Lee Thayer
The evolution of real estate investing has made financing easier to find than ever before. However, that doesn’t mean investors should rush into anything without minding their own due diligence. Simply finding a loan and receiving approval is by no means the only barrier separating an investor from acquiring an additional subject property; there are terms, rates, and a litany of other things to consider. What’s more, there are several types of loans made available to investors, each of which has their own unique distinctions.
For the sake of today’s article, I wanted to discus whether or not home equity lines of credit (HELOCs) are a viable source of funding for investment properties. That said, it’s worth noting exactly what a HELOC is:
For what it’s worth, HELOCs are not all that different from your standard credit card. However, whereas the most common credit cards have no collateral, HELOCs use your home as collateral. Accordingly, HELOCs coincide with a credit limit, or a predetermined amount that you are approved to borrow. The amount a person is allowed to borrow is typically determined by subtracting the remaining balance on a mortgage from the home’s appraised value. Not surprisingly, there are other factors that lenders take into account: credit score, debt-to-income ratio, and other things of a similar nature. Upon approval, you will then be given access to a set of blank checks or a credit card you can then use to withdraw funds.
Consequently, HELOCs allow you to borrow as much as you need, whenever you need it, up to the full amount you were approved for. That means you can essentially use as much or as little as you want, and are therefore only responsible for the amount you spend.
Provided you know what you are getting into and the circumstances warrant their consideration, HELOCs are a great source of funding. However, that’s not to say you shouldn’t look before you leap. After all, HELOCS are essentially a way for homeowners to tap into the equity they have built or, if you will, a way to borrow money against it. So before you risk your own home, mind due diligence and determine whether or not a HELOC is right for your current situation.
Let’s take a look at some of the pros and cons that coincide with the traditional HELOC:


The Pros
  • Incremental Withdrawals: You are not required to borrow the entire amount you receive approval for; it is entirely possible to withdraw the funds on an as-needed basis.
  • Emergency Funding: Access to funds from a HELOC have proven to be very useful in emergency situations, as those that are approved are granted access on an ongoing basis.
  • Fixed Rates: Borrowers may be allowed to convert to a fixed interest rate.
  • Low Rates: Since HELOCs are secured with collateral, it is not uncommon that they would have lower interest rates than your typical loans.
  • Tax Incentives: While not all HELOCs are tax-deductible, some people may be able to deduct the interest they incur on the credit they use.
The Cons
  • Variable Rates: The rates on your standard HELOC are tied to the prime rate, so there is a chance your balance could increase.
  • Loan Terms: Some HELOCs require you to withdraw funds inside of a predetermined timeframe, and that you take out a minimum amount each time.
  • Additional Costs: Receiving approval will require you to pay for an appraisal, an application fee, closing costs, and more, including the addition of points on your loan.
  • Balance Due Upon Expiration: When the term of your loan expires, the balance is due in full.
  • Credit Damage: Not unlike a credit card, failure to pay off the debt at the time it expires will hurt your credit score.
In reality, the equity most homeowners have built up is just sitting there; not working on their behalf. There is no reason you shouldn’t consider investing it to get a better return on your money. If you put the money into a subsequent investment property, you could potentially double the amount of properties providing you with positive returns.
I highly encourage anyone looking to use a HELOC to purchase investment property to carefully consider the ramifications, as you will have quite a bit on the line (your home). Having said that, HELOCs can be a viable source of funding for an investment property provided you have done your homework.
Consider yourself a candidate to take out a line of credit against your equity if you are absolutely positive you can pay the balance in full at the time it is set to expire. If you are confident that you can flip a property and receive your payment by the time the HELOC expires, tapping into your home’s equity can be a viable strategy for real estate investors to consider. Consequently, I advise against using a HELOC if you have any uncertainty at all. There are too many viable financing alternatives to lock yourself into a HELOC without the confidence to pay it back by the time it expires.
To reiterate, a HELOC can provide you with the funds you need to flip an investment property. However, you should only consider taking out a line of credit against your equity if you are absolutely sure you can pay back the debt by the time it expires.

Team Thayer

4 Financing Tips For Your Rental Property! Team Thayer #realestate #realestateinvestor #investor #housing #market #rentals #mortgage #news #oregon

Justin Lee Thayer
With the spring real estate market firing on all cylinders, it’s no wonder we are seeing investors come out in record numbers. Real estate exit strategies ranging from wholesale deals to fullrehabs have become incredibly attractive in today’s housing industry. However, one strategy in particular looks to be in a great place: buy and hold rental property. Cash flow opportunities are through the roof, as rents are soaring in nearly every city from San Diego to New York.
Now may be one of the best times ever to acquire a rental property. However, those that have yet to do so should mind due diligence and consider what they are getting into before they make the jump. While there are a myriad of things potential landlords should consider before financing their first rental property, I highly recommend starting with the following four:

Rental Property Consideration 1: The Numbers

Prospective rental property buyers must run the numbers to see how much they can afford to spend before they even start looking at houses. Having said that, you must have a good understanding of four very important factors: financing, market indicators, transaction fees and management fees. Let’s take a closer look at each of these things individually:
Financing: In the event you are unable to close with cash, you will want to familiarize yourself with the financing options that are likely to be available to you at the time. Nothing, for that matter, will have a bigger impact on how your future deal will transpire, or even which deal you pursue. Mind your due diligence and research your options. At the very least, talk to a mortgage broker and find out how much money you could potentially have at your disposal. At this stage of the process, you will also want to find out how much of a deposit you will need to put down in order to secure manageable monthly premiums. Don’t be afraid to shop around either; there is a mortgage out their with your name on it if you are willing to look for it.
Transaction Fees: Never assume that there isn’t a cost of doing business; nobody works for free. Don’t forget to account for taxes, legal fees, stamp duties, and any other additional costs that may accompany whatever it is you intend to accomplish. I highly recommend you do your research; each state has become synonymous with its own set of individual fees. However, I encourage you to consider these fees as a cost of doing business, not as an added burden. Therefore, fees should always be factored in to individual transactions. Neglecting to do so will only hurt your bottom line.
Management Fees: Rental properties are unique, in that they typically take place over the course of an extended period of time. Whereas most real estate exit strategies span anywhere from one month to six, rental properties can produce cash flow for as long as the property is in use. Of course, that means someone will need to manage it for the duration it is rented out. That said, only one question remains: will that person be you? You must decide whether you want to manage the property or enlist the services of a property management company. Either way, there will be costs to consider; make sure you account for them all.
Market Indicators: As perhaps the most important numbers to crunch, market indicators should give you a good idea of which properties to look at. Understand how much the average rent being charged to tenants in your area is, and compare those numbers to what you will probably pay on a mortgage. It’s a good idea to know how much a rental property will yield in a given market. I also recommend looking at trends, as you will likely have the property for a long time. Don’t let one hot season corrupt the data you are choosing to base your whole purchase off of.

Rental Property Consideration 2: Location

We have all heard it before; location, location, location. At this point, it is safe to say that location is king. The neighborhood you choose to rent in, for that matter, is just about the only thing you can’t change on a property; make it count. Only once you have run the numbers and know how much you are able to invest in a rental property can you even consider a location. But what makes for a good rental property location?
An Attractive Neighborhood: Not surprisingly, you will want to acquire a rental property in a neighborhood that is desirable. While your price point may dictate where you buy, I can assure you it is better to own a less attractive property in a desirable neighborhood, than a pristine property in a neighborhood that nobody wants to live in. Remember this: demand will be your best friend or worst enemy as a rental property owner. If you are having trouble finding a home in a neighborhood that is already desirable, try doing a little research of your own. Try to identify trends and predict which area is destined to become one of the most popular neighborhoods. Go to your local municipality and see where new malls are being planned, or even schools for that matter. Stay ahead of the curve and you my find a property to rent out with limitless potential.
Local Amenities: Renters, in particular millennials, are always going to favor locales with amenities over those without. That said, you should consider which amenities are located close to any prospective rental property you are considering. Are there any good schools near by? Does the area have public transportation? Are there plenty of places within walking distance? All of these things, and more, factor into a great location.

Rental Property Consideration 3: Ideal Tenants

I highly recommend catering to a specific type of tenant. However, I wouldn’t necessarily commit to making that decision yourself; the location in which you plan to rent should dictate whom you are most likely to rent to. With an idea of whom you intend to cater to, you can better focus your efforts. Remember this: different types of tenants will have different needs. If you are renting near a school, you may want to consider shifting your focus towards students. However, landlords in a place like San Diego may want to take advantage of the year-round weather forecasts. In other words, let the location dictate who you rent to and how you intend to do so.
Students, in particular, will typically place an emphasis on location and low maintenance. Anything within a close proximity to the school should catch a lot of attention, but don’t forget that they will be mostly occupied with school, so they won’t want to have to worry about a lot of upkeep.
Families, on the other hand, are more likely to favor unfurnished properties; ones they can use as a blank canvas to represent their own home. Don’t hesitate to let families leave their own mark on a property, as long as it is constructive. Families will want to paint walls, decorate and make the house feel like a home. If you allow them to do so, it will be a lot easier to find tenants.

Rental Property Consideration 4: Credit

Those in pursuit of the perfect rental property had better make sure they are prepared for what is in store. That said, there is one thing you must do before you even consider transcending the barrier between homeowners and investors: check your credit. The sooner you are able to come to terms with your own credit score and any subsequent mistakes that may come up, the better off your rental property search will be. If for nothing else, you will be able to address any concerns that could become potential obstacles in the future. Be proactive and take care of any credit issues before they prevent you from closing on a property with positive cash flow.
Those that are made aware of blemishes on their credit history are advised not to take drastic actions, but rather consult an expert. Someone with experience in handling credit issues will know the proper course of action, whereas someone who has no idea what they are doing could potentially do more harm than good. Not surprisingly, even small changes can have a lasting impact. Do not attempt to close old accounts or pay off collection accounts without first confirming that doing so would be in your best interest.
Financing a rental property can be a great career move, and could potentially generate passive income for years to come. However, don’t make the jump to become a landlord until you have considered what is in store.

Team Thayer

Most Common Rental Properties Mistakes Team Thayer #realestate #investing #housing #market #news #oregon

Justin Lee Thayer

Purchasing a rental property is the perfect way to diversify your investment portfolio and start accumulating long term wealth.   There are a number of benefits that accompany owning a rental property, most of which involve the passive income that comes with the investment.
While passive income sounds like an easy way to make money, there is a lot of time and effort that goes into maintaining a desirable property.  The two most important questions every individual considering a rental property needs to ask themselves is whether or not they should invest in some kind of rental property management company or simply be their own landlord and how they plan to finance the property.
It is crucial that any rental property owner treat his or her investment as its own business. Therefore, avoiding common mistakes and attracting respectful tenants are aspects of the business that cannot be over looked.
Know how to spot the regular signs of a poor-quality tenant and learn from the mistakes many rental property owners make on a continual basis.

Team Thayer

Private Investors Incentives in Housing! Team Thayer #realestate #housing #market #investor #news #oregon

Home Protection BH  Team Thayer Real Estate Investor news Eugene Oregon
As housing is inches closer to fair value due to rising home prices and distressed properties for sale continue to decline, private investors are finding it harder to find bargains in the market.
A U.S. housing market update from Capital Economics by Property Economist, Matthew Pointon, showed that although there are a few roadblocks on their path, private investor demand is not likely to dry up anytime soon.
"With returns on other types of assets looking low and/or risky, expectations for further gains in house prices suggest Americans will continue to see housing as a good place to store wealth," Pointon wrote.
In the midst of tight supply, heightened competition for buyers, and unpredictable financial markets, U.S. home prices continued to rise in the fourth quarter.
The Federal Housing Finance Agency's (FHFA) House Price Index (HPI) shows that home prices rose 5.8 percent year-over-year in the fourth quarter of 2015. Prices increased 1.4 percent from the third quarter of 2015, marking the 18 consecutive quarterly price increase in the purchase-only, seasonally adjusted index. Home prices were up 0.4 percent month-over-month for December.
“Instability in financial markets did not seem to put much of a drag on home prices in the fourth quarter,” said Andrew Leventis, FHFA Supervisory Economist. The 1.4 percent rise in home prices "was in line with the extremely steady—but historically elevated— appreciation rates we have been observing for several years now."
Capital Economics posed the question if the continued rise in prices will cause investors to withdraw from the market, potentially leading to a drop in housing demand if others—like first-time buyers—do not take up the slack. However, Pointon stated, "Private investors have proved a stable source of housing demand over in recent years."
"Private investors are typically on the look-out for bargains they can buy with cash. But with housing now at fair value, good deals are becoming harder to find. In particular, the rise in house prices, low mortgage rates and improving labor market have all helped to bring mortgage delinquencies down to pre-crisis levels," Pointon said. "As such, the share of homes bought for investment and vacation purposes that were distressed dropped in 2015 compared to 2014."
Capital Economics said that it not likely that the lack of distressed properties will fend off investors. "While bargains may be harder to find, the fact remains that house prices are expected to keep on rising. Even if the home is not rented out, buyers will be expecting a decent capital gain," the report said.
"We don’t see a collapse in private investor demand as a significant risk for the housing market. Rather, a slow recovery in first-time buyer numbers will complement second home buyers, and ensure that housing demand weathers the coming gradual rise in mortgage rates," Pointon concluded.

capital economics Team Thayer Real Estate Investor news Eugene Oregon

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Completed Foreclosures Still Elevated In Oregon! Team Thayer #realestate #foreclosure #housing #market #news #oregon

foreclosure-sign-two Team Thayer Foreclosures Eugene Oregon While the number of completed foreclosures during the month of February 2016 was down by 10 percent year-over-year, February’s total is still way above the pre-crisis monthly average, according to CoreLogic’s February 2016 National Foreclosure Report released Tuesday.
Approximately 34,000 foreclosures were completed during February, which is down from February 2015’s total of 38,000 but still elevated compared to the monthly average of 2000 to 2006 of 21,000. February 2016’s total was down by 71.3 percent from the monthly peak of 117,776 reached in September 2010.
Completed foreclosures represent the total number of homes lost to foreclosure. Since the crisis began in September 2008, approximately 6.2 million homes have been lost to foreclosure. Since homeownership rates peaked in in the second quarter of 2004, the number of homes lost to foreclosure totals 8.2 million.
4-12 CoreLogic Foreclosure Graph    Team Thayer Foreclosures Eugene Oregon Despite February’s total of completed foreclosures remaining elevated above pre-crisis levels, other default-related metrics were positive. Foreclosure inventory for February 2016 totaled about 434,000, or approximately 1.1 percent of homes with a mortgage nationwide—the lowest rate since November 2007. February 2016’s foreclosure inventory rate of 1.5 percent represented a year-over-year decline of about 32 percent from February 2015’s total of 1.1 percent (571,000 homes).
The serious delinquency rate, which is the percentage of residential mortgages that are 90 days or more overdue or in foreclosure or REO) dropped by nearly 20 percent year-over-year in February 2016 down to 1.3 million mortgages, which calculates to 3.2 percent of total mortgages nationwide. It is the lowest level for the serious delinquency rate since November 2007.
“Job creation averaged 207,000 during the first two months of 2016, and incomes grew over the past year," said Dr. Frank Nothaft, chief economist for CoreLogic. “More income and improved household finances have helped bring serious delinquency rates down in nearly every state. However, serious delinquency rates increased in North Dakota and West Virginia, two states affected by price declines for the energy fuel each produces.”

Team Thayer

Reverse Mortgage Foreclosure May Be At Increased Risk. Team Thayer #realestate #housing #market #foreclosure #Mortgage #news #oregon

Money Jar BH Team Thayer Real Estate Housing News Eugene OregonSan Francisco-based advocacy group California Reinvestment Coalition (CRC) has asked HUD to impose a moratorium on home equity conversion mortgage (HECM, or reverse mortgage) foreclosures by CIT Group and its subsidiary, Financial Freedom.
CRC requested the moratorium based on new data it obtained from HUD in the form of a fact sheetwhich shows that CIT Group/Financial Freedom were responsible for 39 percent of the 41,237 reverse mortgage foreclosures in the United States since April 2009 despite having an estimated market share of only 17 percent in the reverse mortgage market.
Many of the reverse mortgage foreclosures that have occurred are “widow foreclosures,” or foreclosures that occur after the death of a non-borrowing spouse. These foreclosures are allowed to happen because some reverse mortgage originators name only the borrower on the reverse mortgage, which later allows the servicers to foreclose on the non-borrowing spouse. Many of the foreclosed-on non-borrowing spouses are seniors.
“CRC was contacted by a number of widowed homeowners and other heirs who shared disturbing stories about Financial Freedom,” said Kevin Stein, associate director at CRC. “Using a FOIA (Freedom of Information Act) request, we asked Financial Freedom’s primary regulator, HUD, about the total number of foreclosures it had completed, and the number of complaints HUD had received against Financial Freedom.”
Stein said the new data they obtained from HUD on reverse mortgages provides a “red flag that something is amiss” at Financial Freedom.
“This builds on the troubling consumer stories shared with us about Financial Freedom and CIT Group disclosing it had received subpoenas about Financial Freedom from HUD’s OIG (Office of Inspector General),” Stein said.
Maeve Elise Brown, executive director at Housing and Economic Rights Advocates, added, “This newly uncovered data about Financial Freedom's outsized role in HECM foreclosures is troubling, and suggests the need for a thorough and transparent investigation.”
The CRC originally made the FOIA request in November 2014 to obtain more information on HUD’s oversight of the reverse mortgage industry, such as the number of complaints against Financial Freedom. The CRC said that it was told that HUD could not fully comply with the request because HUD estimated it would take 120 years to compile all the information they asked for.
“It’s deeply concerning from a consumer protection standpoint when the main regulator for an industry tells you that because of their outdated technology, it will take them 120 years to compile complaint data about one of the companies they’re supposed be regulating,” Stein said. “If HUD lacks the ability to systematically access, analyze, and respond to consumer complaint data, how can it effectively regulate this industry, and individual companies? This is important information for identifying problematic practices and bad actors. In comparison, anybody with an internet connection can use the CFPB’s complaint database, and the CFPB routinely publishes public reports about the complaints it receives.”
Neither HUD nor CIT Group immediately responded to requests for comment on the CRC's bid for a moratorium on reverse mortgage foreclosures.
Click here to view the fact sheet on the FOIA request.

Team Thayer

2016 Housing Forecast Is Again Looking Excellent For Oregon Investors! Team Thayer #realestate #housing #market #news #oregon

Forecast One BH Real Estate News Eugene OregonInconsistencies in the economy during the first quarter have not dampened Freddie Mac’s forecast for housing for the coming year. Freddie Mac has held fast to its prediction that 2016 will be the best year for housing since before the crisis.
Freddie Mac doubled down on its housing forecast for 2016 as it released the results of the latest Multi-Indicator Market Index (MiMi) on Wednesday. The national MiMi, which consists of the purchase applications, payment-to-income, current on mortgage, and employment indicators, stood at 83 at the end of February. It was the highest level for the national MiMi since September 2008—right at the beginning of the crisis, and the same month that Fannie Mae and Freddie Mac were taken into conservatorship by the government.
A level of 83 indicates a housing market that is on the outer range of its historic benchmark level of activity. Inside of the national MiMi, the current on mortgage indicator rose by nearly 8 percent over-the-year up to 85.5, which is the low end of the “stable” range but the highest level since August 2008—indicative of the increasingly lower levels of mortgage delinquencies that the mortgage industry is seeing.
The employment indicator rose above its historic benchmark level in February up to 106.5, driven by robust employment growth. The payment-to-income was the only one of the four indicators that declined year-over-year, largely due to low mortgage rates—though that is not necessarily a bad thing.
“Lower rates are helping to support homebuyer affordability across the country, for the moment outweighing the impact of higher house prices,” Freddie Mac Deputy Chief Economist Len Kiefer said.
“Lower rates are helping to support homebuyer affordability across the country, for the moment outweighing the impact of higher house prices.”
Len Kiefer, Deputy Chief Economist, Freddie Mac
 In its April 2016 Economic Outlook, Freddie Mac downwardly revised its prediction for GDP growth in the first quarter from 1.8 percent down to 1.1 percent. Despite this, Freddie Mac held fast to its prediction for a stellar year for housing in 2016, stating that they “expect housing to be an engine of growth.”
In Freddie Mac’s March 2016 Monthly Outlook released nearly a month ago, Freddie Mac Chief Economist Sean Becketti laid out the reasons why he believes that 2016 will be the best year for housing in a decade despite widespread reports of low inventory holding back the housing market for many months.
“Low mortgage rates, robust job growth, and a gradual increase in housing supply will help drive housing markets forward,” Becketti said. “Low levels of inventory for-sale and for-rent and declining housing affordability will be major challenges, but on balance the nation's housing markets should sustain their momentum from 2015 into 2016 and 2017.”
The national MiMi’s February level of 83 is 40 percent higher than its all-time low, reached in October 2010 at the peak of the foreclosure crisis. Even with Freddie Mac’s prediction that 2016 will be the best year for housing in a decade, the national MiMi’s February level of 83 is still significantly off from its all-time high of 121.7 reached in 2006 during the bubble.

Team Thayer

Tuesday, April 26, 2016

Home Loan Delinquencies Continue To Plummet! Team Thayer #realestate #market #housing #news #oregon

Delinquent Notice BH Team ThayerThe fact that mortgage delinquencies are declining steadily for a few years now has been no secret. But just how low are they getting?
Delinquencies, defined as 30 or more days past due but not in foreclosure, declined by 8 percent over-the-month and 12 percent over-the-year in March down to 4.08 percent—the lowest level since March 2007, according to Black Knight Financial Services’“First Look” at Mortgage Data for March 2016released Friday.
The rate of 30-day delinquencies fell even lower in March, down below 2 percent—its lowest level since before the year 2000, according to Black Knight.
The number of 90-day delinquencies also experienced substantial declines both over-the-month (by 39,000) and over-the-year (by 193,000) in March down to 733,000.
The total number of delinquencies for March calculated to slightly more than two million properties. The decline in delinquencies has corresponded with the sharp increase in prepayment speeds, which are usually a good indicator of refinance activity. Prepayment speeds leaped by 46 percent from February to March, up to 1.30 percent (they were still down by almost 17 percent over-the-year even with the over-the-month spike).
4-21 First Look Graph Team Thayer
The number of properties 30 days or more overdue or in foreclosure in March was 2.7 million, which was a decline of more than 200,000 from February and a drop of more than a half million from March 2015, according to Black Knight.
Foreclosure starts, which have largely been up and down over the last couple of years from month to month, declined by 14 percent over-the-month and by 21 percent over-the-year down to 72,800 properties. Foreclosure sales, or completed foreclosures, as a percentage of 90-day delinquencies rose by 17 percent over-the-month and by 13 percent over-the-year in March, up to 2.18 percent, Black Knight reported.
Click here to view the full First Look for March.

Team Thayer

Clinton Blames Foreclosure Crisis on Republicans! Team Thayer #realestate #housing #market #news #oregon

Frozen Credit BH
Who is to blame for the foreclosure crisis and the subsequent Great Recession that devastated the country in 2008 and for years afterward? Democratic presidential hopeful Hillary Clinton, who is likely to win the nomination barring a huge comeback from Bernie Sanders, has the answer: It was the Republicans and only the Republicans,according to a report in The Hill.
Speaking at a roundtable-style event in a donut shop in New Haven, Connecticut, over the weekend, Clinton addressed the audience about various current hot button topics, one of which was the housing crisis. Presidential candidates have largely been silent about housing and housing policy during their campaigns, though both Clinton and Sanders have unveiled grand plans to expand homeownership in the country.
“This foreclosure crisis, nine million people lost their jobs in the Great Recession, and five million homes were lost. And I put the responsibility squarely on the Republicans,” Clinton said, according to the Hill. “And I don’t say that to be partisan. I say it because, you know, during those eight years there were a lot of things that could be done that were not done to try to help people.”
Despite her bold accusations against the opposing party regarding the foreclosure crisis, Clinton did not offer any specifics at the event over the weekend as to how to fix things, according to the Hill.

Hillary ClintonHillary Clinton
“It’s going to take everybody working to turn that around and to get back to where we’re really trying to take care of people in the economy, in the government, and that’s what we should be doing, that’s who we are,” she said.
Other high profile Democrats, among them Clinton’s rival for the party’s presidential nomination, Sanders, and Sen. Elizabeth Warren (D-Massachusetts) have blamed Wall Street for the financial crisis. During the donut shop event in Connecticut, Clinton made no mention of Wall Street investors or banks in relation to the crisis; in February, Sanders accused her of being “bought” by Wall Street after it came to light that Clinton accepted $675,000 from Goldman Sachs for delivering three speeches. Clinton said she accepted the money because “that’s what they offered” and insisted that she has “never changed a view or a vote because of any donation I ever received” from a Wall Street investor or bank.
Last year on several occasions, Clinton took a hardline stance against Wall Street, threatening to “break up” the Wall Street banks if they did not “play by the rules.”
“Yes. Yes, yes, yes, yes, yes. Their shareholders have to know that yes, they will fail. And if they're too big to fail, then under my plan and others that have been proposed they may have to be broken up. So I've said, if the big banks don't play by the rules, I will break them up,” Clinton stated. “And I will also go after executives who are responsible for the decisions that have such bad consequences for our country. There are a lot of things we've got to do in our country, reigning in Wall Street is certainly one of them.”

Team Thayer