December pending sales and Market Pulse Survey – Chuck Barberini Realtor

Chuck Barberini Realtor – Contra Costa County Real Estate – Barberini | Robinson Real Estate Group Intero Walnut Creek

December pending sales and Market Pulse Survey

For release:

January 25, 2016

California pending home sales register annual increase in December

LOS ANGELES (Jan. 25) – Pending home sales in California continued to improve from a year ago with solid gains, which will position the market for a modest increase in home sales in 2016, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

In a separate report, California REALTORS® responding to C.A.R.’s December Market Pulse Survey saw a small decrease in the number of sales with multiple offers compared with November as well as a decrease in the number of offers received. Listing appointments remained stable, while floor calls and open house traffic were down, primarily reflecting seasonal factors. The Market Pulse Survey is a monthly online survey of more than 300 California REALTORS®, which measures data about their last closed transaction and sentiment about business activity in their market area for the previous month and the last year.

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This article kind of surprised me, the last quarter of 2015 was very slow. There was more inventory then we have seen over the last year and it seemed as if properties were sitting longer. Prices have been steadily rising and it appeared that there were less multiple offer situations happening. The new year, however started of with a fury: I have a listing that has been on the market over 90 days. It is a probate property that is less then desirable condition. It is a Townhouse in an association that is not FHA approved and needs a bunch of work. I have received several calls on the property and several agents have told me that their client is interested and would be writing an offer. For various reasons the listing just sat, while several people were waiting for the price to be lowered. The first week of January, my phone blew up with calls on the property. On the first Friday of the new year I had multiple offers and the property went pending. It seems like the starting bell rang and that real estate will be as frantic as ever. Looking forward to a busy 2016.

 

Rates improved today upon the release of weaker than expected economic news. 

Mortgage Rates and Market Data

TRID Rules Take Effect 10-3-2015 – Chuck Barberini Real Estate

https://www.barberinico.com/trid-rules-take-effect/

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek

TRID 6-page-001

TRID takes effect today I have attended a couple of talks discussing how the new rules will impact the Real Estate industry. Some of the items of importance, as I see them, are that TRID requires the lenders to draw up a very accurate Loan Estimate, which is replacing the Good Faith Estimate, at the beginning of the disclosure process, similar to the current process. Loan docs cannot be signed within a 7 day period of the Loan Estimate receipt date. It also requires that the Closing Disclosure, a modified document taking the place of the HUD, requires 3 days of seasoning before the buyers are able to sign their loan docs. The Closing Disclosure must be within 10% of the Loan Estimate or the Loan Estimate has to be re-issued with another 7 day waiting period. This is the part that has everyone worried about the length of escrows. Another key component is that there are no fee adjustments permitted once the Closing Disclosure is sent. The burden will be on the borrower to get the lender all of their information early and completely, then for the lender to thoroughly create the Loan Estimate, including all potential fees. I have heard that some of the banks anticipate that TRID will add 14 days to the closing of an escrow, I believe that will be the exception rather than the rule. As one of the speakers stated he expects a learning curve as everyone implements the new procedures and gets comfortable with the process and there may be some hiccups along the way, but it should be business as usual within 6 months, we shall see.

One of the scary propositions is that the government oversight has built in severe penalties for lenders who don’t comply with the process, which could be why the banks are being overly cautious with their estimated closing times. I have attached a short article from the National Association of Realtors which states that early enforcement will be corrective and not punitive, which should help alleviate some of the stress and allow the lenders to perform and adjust as they go.

As a borrower, I suggest that you bring up your questions and concerns with your lender at the beginning of the process, because once the ball starts rolling it needs to roll on a straight line to the finish. One of the most important things to remember in this competitive Bay Area market is that all buyers are in the same boat, dealing with lenders and Escrow Officers who are now learning the process. Ask the questions and find out how comfortable and forthcoming your lender is with TRID.

 

OCTOBER 2, 2015

BY WILLIAM GILMARTINMARCIA SALKIN

The new TILA-RESPA Integrated Disclosure (TRID) rules for mortgage closings took effect for new loan applications on October 3.  The Director of the Consumer Financial Protection Bureau, on behalf of the six federal financial regulatory agencies, provided written assurances that the early enforcement of the new rules will take into account the good faith efforts of supervised entities.  The letter coincides with Director Cordray’s testimony on September 29 before the House Financial Services Committee that early enforcement efforts would be corrective and not punitive for a period of several months.

This letter is the result of NAR’s joining with numerous industry partners to request this written assurance so that lending institutions can proceed with closings under the new rule in a timely manner.

www.Realtor.orgTRID 1-page-001

Rates are down click on the link below: 

Mortgage Rates and Market Data

Chuck Barberini Real Estate – It’s Not Easier to Get a Mortgage

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek – https://www.barberinico.com/archives/154

Chuck Barberini Real Estate – It’s Not Easier to Get a Mortgage

DAILY REAL ESTATE NEWS | MONDAY, AUGUST 10, 2015

Home sales are improving, so does that mean it’s easier to get credit access for a mortgage? Not necessarily, writes Jonathan Smoke, realtor.com®’s chief economist.

Read more: Getting a Mortgage is Easy, Consumers Say

Last fall, mortgage giant backers Fannie Mae and Freddie Mac urged lenders to ease their requirements and also introduced new 3 percent down payment programs for qualified buyers. The Federal Housing Administration also has lowered its insurance premiums.

The Mortgage Bankers Association’s Credit Availability Index was at 122 in June, a 5 percent increase year-over-year in the expansion of credit. However, the index peaked at 869 in June 2004 – indicating that June’s reading is still far from that peak or even a normal reading.

Smoke says that the average FICO score on a closed purchase mortgage in June was 727. Average FICO scores for the past 24 months have hovered between 724 and 742. That represents above-median credit quality households, Smoke says. The average denied FICO score was 672 in June, down from 686 a year ago.

What that means, Smoke notes, is that “more lower credit-quality households are applying but not getting approved. Yet at the same time, the percentage of purchase applications making it to closing has risen from 64 percent last June to 69 percent this June. Times are still tough for those with tarnished credit.”

On the other hand, wealthier households seeking a jumbo mortgage may be having an easier time. Lenders are showing signs of loosening up on jumbo mortgage requirements.

A more widespread change may be on the horizon for the market. A July Senior Loan Officer survey report from the Federal Reserve did show that over the past three months banks have been easing lending standards on several categories of mortgage loans. Smoke notes that those changes may start appearing in the closing averages in the coming months.

Still, “today’s limited credit availability is at least partly to blame for the tight supply that’s leading to higher prices and higher rents,” Smoke writes. “Builders are not convinced that there’s enough depth of demand to absorb higher levels of new construction, so they are holding back and focusing on their profitable growth instead. Meanwhile, a substantial percentage of today’s home owners with mortgages underwritten years ago fear not being able to qualify for a new mortgage today, so they stay on the sidelines and keep their homes off the market.”

Source: “Is It Really Easier to Get a Mortgage These Days? Well …” realtor.com® (Aug. 6, 2015)

Rates improved today upon the release of weaker than expected economic news. 

Mortgage Rates and Market Data

 

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Chuck Barberini Real Estate – Builders Feel Like It’s the Housing Boom Days

Chuck Barberini Realtor – Contra Costa County Real Estate – Intero Walnut Creek
DAILY REAL ESTATE NEWS | TUESDAY, AUGUST 18, 2015

Builders are feeling more confident as sentiment over the new single-family home market rose to its highest level since November 2005, according to the latest National Association of HomeBuilders/Wells Fargo Housing Market Index. Read more: New-Home Market Expected to Strengthen
The index gauges builder perceptions of current single-family home sales, sales expectations for the next six months, and buyer traffic. The index rose one point in August to 61. Any reading above 50 indicates that more builders view conditions as “good” than “poor.” Broken out, the index measuring buyer traffic rose two points in August to 45; current sales conditions rose one point to 66; and the index measuring sales expectations in the next six months held steady at 70.

builder
“Today’s report is consistent with our forecast for a gradual strengthening of the single-family housing sector in 2015,” says David Crowe, NAHB chief economist. “Job and economic gains should keep the market moving forward at a modest pace throughout the rest of the year.”
Regionally, the index rose by the most in the West and Midwest in August, both seeing a three-point increase to 63 and 58, respectively. The South also saw a two-point increase to 63 while the Northeast held steady at 46.
“The fact the builder confidence has been in the low 60s for three straight months shows that single-family housing is making slow but steady progress,” says NAHB Chairman Tom Woods. “However, we continue to hear that builders face difficulties accessing land and labor.”
Source: National Association of Home Builders

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6 Myths about credit scores – Chuck Barberini Realtor

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Some interesting information from the California Association of Realtors…