Real Estate News Headlines: February - March 2010
The following headlines and news items were compiled from a number of
authoritative sources and industry experts including Freddie Mac, REALTOR® Magazine Online, the National Association
of Realtors, Realty Track and the Wall Street Journal. The next news update is scheduled to be released
in mid-April 2010.
IRS Clarifies What's Needed to Claim Tax Credit
The Internal Revenue Service has clarified which documentation taxpayers will need to submit to claim the first-time
and move-up homebuyer tax credit.
While the IRS still requires Form 5405 be filed to claim the tax credit, it is not demanding that all parties’
signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign
the document isn’t common.
The IRS clarification states: "In areas where signatures are not required on the settlement document, the IRS has
clarified that it will accept a settlement statement if it is completed and valid according to local law.
The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return."
For repeat buyers, the IRS is seeking documentation that the home buyers have lived in their previous property for a
consecutive five of the past eight years. Proof can include property tax records, home owner insurance records,
or mortgage interest statements.
Source: Washington Post (02/20/2010)
Bankers: The End of Foreclosure Crisis Is Near
The Mortgage Bankers Association is seeing signs that the foreclosure crisis is ending.
“The continued and sizable drop in the 30-day delinquency rate is a concrete sign that the end may be in sight,”
says Jay Brinkmann, MBA’s chief economist, in a published statement.
Brinkmann said there is normally a large spike in short-term mortgage delinquencies at the end of the year
because of high heating bills and holiday expenditures. This year, there was not only no spike, but the 30-day
delinquency rate actually fell from 3.79 percent to 3.63 percent.
Thirty-day delinquencies have historically been a leading indicator of serious delinquencies and foreclosures,
Brinkmann said.
“[This] gives us growing confidence that the size of the problem now is about as bad as it will get,” he said.
Source: Mortgage Bankers Association (02/19/2010)
Foreclosure Bargains Getting Harder to Find
Home buyers hoping to snag a really good deal on a foreclosed home are finding it increasingly difficult
because supply is shrinking.
The number of foreclosures that are available for sale nationwide fell to 617,000 in December,
down from 845,000 in November 2008, reports Barclays Capital.
Not only have attractive homes in popular neighborhoods already been snapped up, but also government help
for distressed buyers is delaying more foreclosures.
Demand is driving up prices. Investors say typical prices have climbed from 75 percent of
appraised value to 85 percent or higher when there are bidding wars.
Source: The Wall Street Journal, James R. Hagerty (02/23/2010)
Freddie Mac's Weekly Mortgage Market Survey (PMMS®)
Freddie Mac's Weekly Primary Mortgage Market Survey® (PMMS®) is conducted on Mondays through Wednesdays with
results reported on Thursdays. The survey is based on responses from 125 lenders to determine
the average rates and points charged by each lender for their 30 and 15-year fixed-rate mortgages,
5/1 hybrid amortizing adjustable-rate and 1-year amortizing adjustable rate mortgage products.
The mix of lender types used for the survey is
approximately proportional to the level of mortgage business that each type of lender commands in the marketplace nationwide.
This include thrifts, commercial banks and mortgage lending companies.
The survey is based on conventional conforming mortgages with a loan-to-value ratio of 80
percent for first-lien prime mortgage notes. The adjustable-rate mortgage (ARM) products are indexed to constant-maturity
U.S. Treasury rates. Lenders are asked to provide initial coupon rate, points and the margin on ARM products.
Freddie Mac's Primary Mortgage Market Survey is relied upon heavily by the public and mortgage industry in gauging market
conditions and has evolved into the most representative and reliable source of regional
and national mortgage rate trends.
For a breakdown of U.S. Regional Mortgage Rates, you may wish to visit the
Official Freddie Mac website.
Archived Articles
For
Gilbert Real Estate news, look no further than Rick & Jennifer LeForce, your Gilbert Arizona realty experts!