Skip to content

Lending Cafe Bookmark and Share

Monthly Archives: October 2011

North Dakota, Pennsylvania Projected for Strongest Price Growth

Affordable conditions have encouraged Americans across the country to buy a home, but the value of their investment varies depending on where they buy. According to a recent report, buying a home in certain North Dakota and Pennsylvania communities may represent the wisest investment, whether consumers do so via real estate investor loans or traditional residential home loans.

Early this month, Veros Real Estate Solutions released an analysis of home values in real estate markets across the country. The report projected Bismarck, North Dakota, to enjoy the strongest price appreciation over the 12 months ending September 1, 2012, at 5.6 percent.

New Home Sales Climb More Than 5 Percent in September

Homebuyers continue to take advantage of favorable interest rates on fixed- and adjustable-rate loans to purchase newly built homes, according to new government data released this week.

The Commerce Department reported that new residential construction increased to a seasonally adjusted annual rate of 313,000 in September, which was a 5.7 percent improvement from the previous month. That figure was also largely on pace with the rate estimated in September 2010, when new homes sold at a rate of 316,000 units.

MBA Reports Multifamily Lending Increased in 2010

The apartment market has been enjoying renewed strength in recent months, and many consumers have tried to take advantage of the trends by financing property ventures with real estate investor loans. A recent report from a major mortgage industry trade group showed just how many Americans have decided to jump into the market.

The Mortgage Bankers Association (MBA) released an assessment of the multifamily lending market in 2010. According to the organization, lenders originated $68.8 billion in investor loans for apartment buildings with five units or more last year. That was a 31 percent increase from the year before.

FHFA Widens Borrowing Pool For HARP

Hundreds of thousands of homeowners around the country have sought relief with a mortgage refinance through the federal government's Home Affordable Refinance Program (HARP). However, until recently, many more Americans had been unable to participate due to the program's eligibility requirements.

That will change after an announcement Monday from the Federal Housing Finance Agency (FHFA). That bureau, which administers the government-sponsored entities (GSEs) Fannie Mae and Freddie Mac, said it will loosen its standards to allow more consumers access to HARP.

Existing Home Sales Remain Above Year-ago Figures

On the heels of encouraging strides made in the sales of newly built homes, a new industry trade group report shows existing homes remain a popular option for consumers interesting in buying a home.

The National Association of Realtors (NAR) released its monthly report on existing homes, showing that the sale of these properties reached a seasonally adjusted annual rate of 4.91 million in September. While that was down 3 percent from the previous month, it represented an 11.3 percent increase from the 4.41 million-unit pace reported in September 2010.

Home Sales Increase Sharply in Miami

The month of August brought a significant increase in Miami home sales, according to one report. Considered a popular destination for international buyers, the real estate climate in Miami could be attracting consumers looking to buy a home with foreign national loans.

San Diego-based real estate data firm MDA DataQuick released a report this month showing that 9,638 homes were sold in the Miami-Dade, Palm Beach and Broward county metropolitan area during August. That represented a 9.3 percent rise in sales from the previous month and a 24.9 percent increase from one year earlier.

Multifamily Industry Showing Growth Potential

Low prices around the country have encouraged some Americans to consider property investment, and many have followed through on their desire to be a landlord by financing a home with real estate investor loans.

Now, a new report from the government-sponsored entity Freddie Mac says economics in the apartment market may be improving, suggesting these consumers might continue to find opportunity in the growing sector.

Foreclosures Down 34 Percent Year-Over-Year

Plenty of homebuyers have considered the purchase of a foreclosed property at a time when inventory remains high. Distressed properties can be attractive to renters who want to buy a home at a low cost as well as investors who want to fix up and resell a property for profit.

While there's an ample supply of foreclosures on the real estate market - primarily the effect of the housing crash a few years ago - recent data suggests more homeowners are staying current on their loans these days. That's reduced recent foreclosure activity.

Hard-hit U.S. Markets Experiencing Continued Growth

While home price appreciation remained stagnant in August from the previous month across much of the country, two of the hardest hit housing markets continued a stretch of strong growth, according to a new report. It's a potential sign of opportunity for those looking to purchase project properties with real estate investor loans.

The real estate website Zillow released its most recent Real Estate Market Report this week, reporting that property values climbed in 68 of the 157 metropolitan markets researched. Overall, U.S. home prices increased by only 0.1 percent in August from the previous month, and remained 4.5 percent below levels from one year prior.

Real Estate Groups Reiterate Support for Mortgage Interest Deduction

With lawmakers set to determine the best ways of reducing the national debt, real estate trade groups and consumer advocates have reignited their fervent support of the mortgage interest deduction, one of the many tax breaks expected to be on the chopping block.

Last week, the National Association of Home Builders (NAHB) released a statement providing a dramatic look at what it says would be the negative ramifications of mortgage interest deduction phase out. Without that tax break in place, consumers might think twice about buying a home, which could further harm the recovering real estate market, NAHB representatives argue.