U.S. Economic and Housing Market Outlook
Freddie Mac, August 2011
Freddie Mac released today its U.S. Economic and Housing Market Outlook for August showing that despite the recent ups and downs in the capital markets the likelihood of an extended period of both relatively low short- and long-term interest rates is helpful news for the housing market's recovery as it continues to struggle....
10 Best Cities to Buy a Rental Property
CNN Money Updates, July 2011
Low home prices and relatively strong rents are expected to make real estate investors in these cities some healthy profits over the next few years. Las Vegas has long been a Mecca for gamblers, but now it's the go-to place for real estate investors who want to clean up on rental properties....
State by State Estimate of Shadow Inventory
Selma Hepp, Research Economist, March 21, 2011
Although the foreclosure crisis at times appears like an all-encompassing national problem, there are states and metropolitan areas that are harder impacted than others.
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U.S. Economic and Housing Market Outlook
Freddie Mac, August 2011
Freddie Mac released today its U.S. Economic and Housing Market Outlook for August showing that despite the recent ups and downs in the capital markets the likelihood of an extended period of both relatively low short- and long-term interest rates is helpful news for the housing market's recovery as it continues to struggle.
Outlook Highlights
- Employment was up 117,000, the best showing since April, and the unemployment rate edged down a tenth to 9.1 percent.
- Over the first half of 2011, growth was figured to be about 0.8 percent at an annual rate, far too weak to generate enough jobs to keep pace with labor force growth.
- Compared with the first quarter of 2008, borrowers are paying about $130 billion less in mortgage interest today, at an annual rate.
- The likelihood of an extended period of both relatively low short- and long-term interest rates is helpful news for the housing market's recovery.
- Interest rates on 15-year fixed-rate loans – always popular for borrowers considering to refinance – reached about 3.5 percent in early August, assuring the refinance boom continues.
- Freddie Mac House Price Index(SM) for the U.S. shows that prices are down 25 percent, on average, as of June 2011 compared with their peak obtained five years ago.
Click here to view the complete August 2011 U.S. Economic and Housing Market Outlook. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
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10 Best Cities to Buy a Rental Property
CNN Money Updates, July 2011
Low home prices and relatively strong rents are expected to make real estate investors in these cities some healthy profits over the next few years. Las Vegas has long been a Mecca for gamblers, but now it's the go-to place for real estate investors who want to clean up on rental properties.
Nationwide, the opportunities for this kind of investing haven't been this good in years. Not only are home prices way down but interest rates are near all-time lows and rents are climbing.
In May, according to the National Association of Realtors, 19% of home purchases were for investment, up from 17% in 2010.
Nowhere are potential profits better than in Las Vegas, according to a new survey by Local Market Monitor. The survey ranked 316 markets by estimated returns on investment in single-family home rental properties. Read more ....
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State by State Estimate of Shadow Inventory
Selma Hepp, Research Economist, March 21, 2011
Although the foreclosure crisis at times appears like an all-encompassing national problem, there are states and metropolitan areas that are harder impacted than others. From the onset of the foreclosure crisis, four states have continually had relatively worse foreclosure problems: Arizona, California, Florida and Nevada. These four states still account for 42 percent of the foreclosure inventory today. Adding Illinois, New York and New Jersey – other states with high incidence of foreclosures, brings the share up to almost 60 percent. As suggested by the national numbers, the situation is mostly improving, at least in terms of delinquencies. In the last quarter of 2010, serious delinquencies, those 90+ days late, fell over the past year in all but four states, Washington, New Jersey, New York, and Vermont. The change in the total non-current loans is in fact down 38 percent nationally, with states such as Hawaii, California, Nevada, New Hampshire, Illinois and Massachusetts all seeing decreases over 40 percent over the last 12 months. Even the states which decreased the least saw drops in the 23 to 25 percent range.
Also, as suggested by the national numbers, some progression of the serious delinquencies into foreclosure inventory led to an increase in foreclosure inventory in all states between the third and fourth quarters in 2010. More detailed state by state delinquency and foreclosure numbers are presented in the Mortgage Delinquencies by State presentation (PDF). Based on the Mortgage Bankers Association (MBA) National Delinquency Survey quarterly state level data, this commentary provides estimates of state level shadow inventory and months’ supply of that inventory.
Differences in the levels of foreclosure and seriously delinquent inventory, as well as the saturation of distressed sales in total existing sales are naturally causing varying levels of shadow inventory across states. Read more ....
