In what was a relatively quiet week nationally This Week in Real Estate, Fannie Mae was active introducing their Home Purchase Sentiment Index and announcing that they have lowered the mandatory waiting period for a mortgage following bankruptcy or distressed sale. Below are a few of the highlights from the second week in September that influence our business:
* Gap Between Appraiser and Homeowner Perception of Value Widens. Homeowner estimates of their home’s value exceeded appraiser opinions by a wider margin than in July, making August the seventh consecutive month of an increasingly wider gap between opinions. Quicken Loans reported this week appraiser opinions of home values were 2.65 percent lower than homeowner estimates in August, according to the company’s national Home Price Perception Index (HPPI). Homeowner opinions were 2.33 percent higher than appraiser opinions in July. “While the month-to-month number is interesting to examine, it is not the single most important factor of the HPPI report. Instead, the focus should be on the trend, the direction it’s heading and how fast,” said Quicken Loans Chief Economist Bob Walters. Contrary to the national result, appraiser value vs. homeowner perception of value was +2.26% in Portland and +0.55% in Seattle respectively. A positive value represents appraiser opinions that are higher than homeowner perceptions.
Full Story… http://www.quickenloans.com/press-room/2015/09/08/homeowners-overvalued-properties-7th-consecutive-month/
* Fannie Mae Introduces the Home Purchase Sentiment Index. Fannie Mae has launched the Home Purchase Sentiment Index (HPSI), which distills results from its consumer-focused National Housing Survey into a single, monthly, predictive indicator. The HPSI is designed to provide distinct signals about the direction of the housing market, helping industry participants to make better informed business decisions. The index provides the market a single number to track consumer attitudes focused on the housing market. Highlights of the August HPSI: the percent of respondents who said that it is a good time to buy a house rose to 63%, rising 2 percentage points from last month and those who say it is a good time to sell rose 2 percentage points to 47%. Full Story… http://www.fanniemae.com/portal/about-us/media/corporate-news/2015/6290.html?p=Media&s=News+Releases&from=RSS
* Distressed Sales Share Cracks Into Single Digits. While sales of REO and short sales continue to account for around one-fifth of all home sales in at least five states the share of distressed home sales is steadily returning to normal levels on a national basis. CoreLogic said on Thursday that REO sales accounted for 6 percent of all residential sales in June, the lowest share since September 2007 when it was 5.2 percent. Short sales made up 3.4 percent of the total. The combined distressed sales share, 9.4 percent, is down 2.4 percentage points from June 2014. At the peak in January 2009, 32.3 percent of all home sales nationally were distressed properties. The pre-crisis share of distressed sales was traditionally about 2 percent. Full Story… http://www.mortgagenewsdaily.com/09102015_corelogic_distressed_sales.asp
* Fannie Mae Lowers Mandatory Waiting Period After Bankruptcy, Short Sale and Pre-Foreclosure. It’s getting easier to get approved for a mortgage. Fannie Mae has reduced the mandatory waiting period for a mortgage after bankruptcy, short sale, or pre-foreclosure. Borrowers no longer need to wait 4 years before re-applying to get a mortgage. Borrowers can now re-apply for a loan just 2 years after a bankruptcy, short sale or pre-foreclosure. Full story… http://themortgagereports.com/16750/fannie-mae-waiting-period-bankruptcy-short-sale-foreclosur
Have a productive week!