Foreclosure Activity Decreases to Lowest since 2006

CF Funding is happy to share that foreclosure activity has been reported at its lowest levels since before the housing crash. In the first half of 2014 (January through June) there were 613,874 foreclosure filings, which is a 23 percent decrease from the first half of last year. As CF Funding mentioned earlier this month on their blog, the Obama administration is taking steps to continue to decrease foreclosures, and the lender expects that more improvement is to come in the next few years as the economy improves.

The Midyear 2014 U.S. Foreclosure Market Report, released this week by RealtyTrac, revealed that one in 214 homes in the U.S. reported a foreclosure in the first six months of this year (about 0.47 percent). Foreclosure activity for June totaled 107,194 properties, which is down 2 percent from May 2014 and down 16 percent from a year ago. Ten states reached their lowest levels of foreclosure activity since the housing crash in 2006, including Texas, Georgia, Colorado, Tennessee, Arizona, and Nevada. CF Funding is licensed in Texas, Florida, and Colorado, and the lender was happy to see such high foreclosure improvement in those states.

Only nine states saw an increase in foreclosure activity in the first half of 2014 in comparison to the first half of 2013. Those states include New Jersey (up 54 percent), Maryland (up 18 percent), and Iowa (up 10 percent).

It may be disheartening to see that Illinois is ranked at the country’s third highest foreclosure rate in the first half of 2014, at one in every 123 housing units. However, Illinois has a longer foreclosure filing process than many other states in the country. This means that although foreclosures are recovering in Illinois, the statistics reporting a decrease in filings may lag behind other states by a few months. CF Funding is happy to share that Illinois foreclosure activity did decrease 16 percent in comparison to the second half of 2013, and 32 percent from a year ago. The Chicago metro area also saw a 30 percent decrease in foreclosure activity in the first half of 2014 compared to a year ago.

Those who are in danger of foreclosure should contact CF Funding today to take advantage of free credit repair services with a refinance. The lender has assisted thousands of homeowners to regain positive equity in their homes. Call 888-344-4080 or visit www.cffunding.com today. 

Purchase and Refinance Applications Increase

CF Funding shares positive news for the housing market today, as both refinance and purchase applications have increased for the week ending June 6. The Market Composite Index by the MBA reported yesterday that mortgage applications increased by 10.3 percent last week, which is a 22 percent increase from the previous week (on a seasonally adjusted basis). Readers should note that Memorial Day fell on the previous week, however, data was adjusted to reflect the holiday.  

The refinance index saw an increase of 11 percent from the previous week, and the purchase index saw an increase of 9 percent from the previous week, on a seasonally adjusted basis. The purchase index increased by 19 percent compared to the previous week on an unadjusted basis. However, unadjusted purchases were still 13 percent lower than the same week last year. CF Funding is confident that both purchase and refinance indexes will continue to rise as the housing market improves this year.

Refinances are still representing a large percent of mortgage activity, as the refinance share increased to 54 percent on the index last week, from 53 percent the previous week. Adjustable-rate mortgages were unchanged, representing 8 percent of total applications on the index. Interest rates increased slightly last week, as the reported 30-year fixed contract interest rate (for loans $417,000 or less) was 4.34 percent, up from the previous week’s 4.26 percent. Jumbo 30-year fixed rates also increased, at 4.27 percent last week in comparison to the previous week’s 4.22 percent.

The average interest rate reported for 30-year FHA loans increased slightly, from 3.99 percent to 4.06 percent. 15-year fixed-rate mortgage interest rates also increased from 3.39 to 3.43 percent. CF Funding is pleased to see that the increase in interest rates has not slowed down applications, as rates are still historically low and home affordability is rising. As seen in the graph, current rates near 4.5 percent are much lower than rates seen 5 years ago near 5.5 percent.

Today, rates saw a slight decrease with the best-execution 30 year fixed rate mortgage near 4.21 percent, in comparison to yesterday’s 4.25 percent. The 52-week low is about 3.97 percent, according to Mortgage News Daily, and the 52 week high is about 4.85 percent. Those interested in mortgage rate updates may find up-to-date information through the CF Funding website at www.cffunding.com/index.php/mortgage-rates.

Home Prices at Peak, Gains Expected to Slow in 2014

CF Funding is pleased to share with homebuyers that home prices in the U.S. are at their peak, according to property analysts, and further increases are expected to be more subtle. Many homeowners have benefited from rising home prices in recent years, as they were able to regain the equity in their homes, allowing them to refinance or remodel. However, many counties have reached new home price peaks over the past few years, some now higher than pre-recession levels. A few counties that have reached price peaks include San Francisco County, CA, Travis County, TX, and Jefferson County, CO, as mentioned in a Reuters Press Release on Thursday.

Median home prices are up 11 percent from a year ago, and are now at their highest level since December 2008. On Wednesday, CF Funding shared that “Home price gains were high in Chicago, with a year-over-year gain of 11.5 percent. Price gains were also high in Cleveland, Detroit, Miami, Minneapolis, and New York.” Luckily for homebuyers, interest rates remain lower than expected as the Federal Reserve plans to keep interest rates below historic averages for awhile.

 The median sales price of residential properties in the U.S. reached $172,000 in April, which is the largest year-over-year increase “since median prices bottomed out in March 2012,” according to Realty Trac. Vice President Daren Blomquist said median home prices are still 28 percent lower than pre-recession peaks of $237,537, seen in August 2006. However, “There are a surprising number of markets… where median home prices have surpassed their previous peaks since the Great Recession ended in June 2009.” This “surprising number” of markets is about 19 percent of major counties in the U.S. CF Funding is happy to see homeowners regaining equity across the country.

Some markets have seen home prices slow down over the past year, such as Phoenix, AZ, which had a 9 percent home price appreciation in April 2014 versus a 30 percent annual appreciation in April 2013. Tampa, FL saw a 5 percent appreciation over the past year versus a 19 percent annual appreciation in April 2013. Jacksonville, FL had only 4 percent appreciation in April 2014 versus a 17 percent appreciation in April 2013. This is a clear sign of a slowdown in home prices that will allow homes to become affordable for many Americans this year. CF Funding will provide many homebuyers with the opportunity to fund their first home this year as the lender provides home mortgages in IL, CO, TN, CA, and FL.

Housing Affordability and Refi Applications Increase

Originally posted on the CF Funding website at www.cffunding.com/index.php/news on May 15, 2014

CF Funding shares good news from the National Association of Home Builders’ Housing Opportunity Index (HOI) today as lower home prices and steady mortgage rates caused higher home affordability in Q1 2014. According to the index, 65.5 percent of new and existing homes sold between January and March were considered affordable. The index is adjusted based on the U.S. median income, which was $63,900 in the first quarter. The HOI increased from a score of 64.7 in the fourth quarter of 2013 to 65.5 percent in the first quarter 2014.

Syracruse was the most affordable in Q1 at a score of 93.7, where the median income was $67,700. Also rated highly were Buffalo-Niagara Falls, Youngstown-Warren-Boardman, and Ohio-Pennsylvania. All of the least affordable small markets were in California, including Santa Cruz-Watsonville, Napa, and Salinas.

As CF Funding has stated previously, buying a home in the present market can actually be more affordable than renting. As NAHB Chief Economist David Crowe said, "As home prices and mortgage interest rates are unlikely to go down, the first quarter HOI is another indicator that this is an opportune time to buy." CF Funding hopes to see more renters achieve the dream of homeownership as the market improves in 2014.

The MND NewsWire also reported positive housing news today as mortgage and refinance applications rose at the fastest pace in a month. According to the Market Composite Index, mortgage application volume increased by 3.6 percent on a seasonally adjusted basis, for the week ending May 9. The Refinance Index increased 7 percent in comparison to the week before, which is the best increase in nearly a month. Interest rates also decreased last week with the average 30-year fixed-rate mortgage at about 4.39 percent, the lowest rate since November 2013. The average contract interest rate for a 15-year fixed-rate mortgage was also at its lowest since November 2013 at about 3.48 percent.

According to CF Funding loan officer Robert Sepka, “The increase in applications has been evident this week as many spring shoppers took advantage of low interest rates and refinanced or purchased a new home with us. It is a great time to buy as interest rates and home prices are expected to rise later in the year.” 

For more updates on the housing industry and current mortgage rates, visit www.cffunding.com or follow the lender on facebook at www.facebook.com/cffundingcorp.

Underwater Homes at Lowest Level in Two Years

On April 3, CF Funding shared news that foreclosures and shadow inventory continue to decrease, and less than 1.9 million mortgages are in serious delinquency. Today the lender shares more good news, as the U.S. Home Equity & Underwater Report by RealtyTrac revealed that properties which are seriously underwater are at their lowest level in two years. The report covered the first quarter of 2014.

In the first quarter of 2013, 10.9 million properties (26 percent of all properties with a mortgage) were seriously underwater, in comparison to 9.1 million properties in the first quarter of 2014 (17 percent of all properties with a mortgage). The steady increase in home values seen in 2013 played a large part in restoring the equity to American homes over the past year. As CF Funding reported in February, this increase in home equity is “allowing homeowners to refinance and invest in remodeling projects.”

The percentage of homes which are “equity-rich,” meaning the home has 50 percent or more equity, rose 1 percent in the first quarter of 2014 to reach 9.9 million. The percentage of equity-rich homes in the fourth quarter of 2013 was 9.1 million or 18 percent. The states with the highest amount of seriously underwater properties were Nevada at 34 percent, Florida at 31 percent, Illinois at 30 percent, and Michigan at 29 percent.  According to the RealtyTrac website, the Naperville area has a foreclosure rate of 1 in every 1245. As seen in the geographical comparison chart below, the number of foreclosures in percentage of units by area (broken down by type of filing) puts Naperville at almost half the rate of Illinois and .01 percent lower than the national average. CF Funding hopes to see foreclosure rates for Illinois improve as home prices continue to rise.

CF Funding would like to remind homeowners who are underwater that foreclosure may be avoidable by refinancing or selling the home. As Daren Blomquist, vice president of RealtyTrac, said in the April 2014 report, “The relatively high percentage of foreclosures with equity is surprising to many because it would seem homeowners with equity could easily avoid foreclosure…but many distressed homeowners with equity may not realize they have equity and in some cases have vacated the property already, assuming that foreclosure is inevitable.” Those who have questions about refinancing to avoid foreclosure should contact a Loan Specialist at CF Funding Corporation today by calling (888) 344-4080 or visiting http://www.cffunding.com.

Warm Weather Brings Out Homebuyers

According to the Mortgage Bankers Association, purchase applications have risen 3 percent last week in comparison to the previous week on a seasonally adjusted basis. CF Funding is happy to see applications rise as the weather has improved, allowing for more homebuyers to shop around and meet with lending specialists.  The increase was mainly seen in conventional loans, which saw a 4.0 percent increase in purchase applications.

Unfortunately, home purchase applications are still down 17 percent on an unadjusted basis from one year ago. Overall mortgage application activity saw a 3.5 percent decrease from one week earlier. According to CNBC, “some [are] still blaming the weak home sales market on rough weather in much of the nation” and “All-cash buyers continue to represent an outsized share of the housing market at over one- third of all sales.”

Refinances have seen a drop as interest rates rise, with an 8 percent decrease last week in comparison to the previous week. Refinances currently cover about 54 percent of mortgage activity, which is down about 68% from last year (when interest rates were lower).  This is the lowest amount seen since April 2010. Experts predict that refinances will continue to decrease in 2014 as rates continue to rise. According to the MBA, an increase in purchases will make up for some of this loss, but will not completely level out the decrease. There are many homeowners who could still benefit from a refinance this year before rates rise, and CF Funding loan specialists can offer a free consultation for those considering a refinance.

Average contract interest rates for a 30-year fixed mortgage with loan balances $417,000 or less were at 4.56 percent (highest since January), an increase from the previous week’s 4.5 percent.  Average contract interest rates for a 30-year with jumbo loan balances were at 4.45, an increase from the previous week’s 4.39 percent. Adjustable-rate mortgages saw no change last week, covering 8 percent of total applications.

Although interest rate increases may be discouraging to some homebuyers, CF Funding urges readers to stay optimistic, as a rise in rates is a sign of economic improvement, and allows homeowners to gain positive equity in their homes. CF Funding hopes to see a continued increase in purchase applications as the weather continues to improve. Those who are considering buying a home and would like to compare loan options from multiple lenders should contact a CF Funding loan specialist today by visiting www.cffunding.com or calling (630)328-8900.