It appears that the real estate market is finally heading toward a more normal traditional market place with fewer REO’s, short sales and other foreclosure distressed sales.
From CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)
Mortgage Delinquency Rate Drops Nearly 25% in Last Year
The mortgage delinquency rate (the rate of borrowers 60 days or more delinquent on their mortgage) dropped 23.3 percent in the past year, ending the third quarter at 4.09 percent, down from a year earlier when the rate stood at 5.33 percent, according to data gathered from TransUnion’s proprietary Industry Insights Report. The mortgage delinquency rate also dropped on a quarterly basis, down 5.3 percent from 4.32 percent in the second quarter, the seventh straight quarterly decline.
All 50 states and the District of Columbia experienced a decline in their mortgage delinquency rate between third quarter 2012 and third quarter 2013. Five states – California, Arizona, Nevada, Colorado, and Utah – experienced declines of 30 percent or more in their mortgage delinquency rate. Three states – California, Florida, and Nevada – had double-digit percentage drops in the last quarter.
TransUnion’s latest mortgage report also found that the non-prime population (those consumers with a VantageScore® credit score lower than 700) continues to represent a smaller portion of all mortgage loans, more than 50 percent lower than was observed in 2007. Non-prime borrowers constituted 5.82 percent of all new mortgage originations in the second quarter.
TransUnion is forecasting that the downward consumer delinquency trend will continue in the final three months of 2013. The delinquency rate will likely be just under 4 percent at the end of the year.
Applications for New Home Purchases Increase in October
Mortgage applications for new home purchases increased 11 percent in October compared with September, according to the Mortgage Bankers Associations Application Survey data for October. This change does not include any adjustment for typical seasonal patterns.
By product type, conventional loans accounted for 67.5 percent of loan applications; FHA loans, 17.8 percent; RHS/USDA loans, 0.9 percent; and VA loans, 13.8 percent. The average loan size of new homes increased from $289,650 in September to $294,480 in October.
In Texas, Florida, and California, the top three states by new home purchase application volume, mortgage applications for new home purchases increased 9.5 percent, 9.3 percent, and 4.6 percent respectively, compared with the previous month.
Builder Confidence Holds Steady in November
Builder confidence in the market for newly built, single-family homes was unchanged in November from a downwardly revised level of 54 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This means that for the sixth consecutive month, more builders have viewed market conditions as good than poor.
The HMI index gauging current sales conditions in November held steady at 58, while the component measuring expectations for future sales fell one point to 60, and the component gauging traffic of prospective buyers dropped one point to 42. Any number over 50 indicates that more builders view conditions as good than poor.
U.S. Homes Selling 30 Days Faster Than A Year Ago
Nationwide, homes listed for sale on Zillow were selling a month faster in September than a year ago, according to a new analysis. In the United States as a whole, homes sold in September spent a median of 86 days on Zillow, down 30 days from 116 days in September 2012.
Among the 30 largest metro markets covered by Zillow in September, homes moved the fastest and spent the fewest days listed on Zillow in the San Francisco Bay Area (48 days); Sacramento, Calif. (59 days); and Dallas (60 days). Homes sold faster this September compared with last September in all 30 of the largest metros. Large metros where homes moved the fastest this year compared with last year include Las Vegas (44 days faster), Sacramento (43 days faster), and San Antonio (37 days faster).
Calif. median home price: September 2013:
- California: $428,810
- Calif. highest median home price by region/county September 2013: San Mateo, $908,000
- Calif. lowest median home price by region/county September 2013: Glenn, $134,000
Calif. Pending Home Sales Index: September 2013: Decreased 1.8 percent from 108.3 in August to 106.4 in September.
Calif. Traditional Housing Affordability Index: Third Quarter 2013: 32 percent (Source: C.A.R.)
Mortgage rates: Week ending 11/14/2013 (Source: Freddie Mac)
- 30-yr. fixed: 4.35% fees/points: 0.7%
- 15-yr. fixed: 3.35% fees/points: 0.7%
- 1-yr. adjustable: 2.61% Fees/points: 0.4%