New York Times - MORTGAGE rates in 2010 were the lowest in six decades, but a recent and sustained increase may indicate that consumers can expect to pay more in the new year to buy or refinance a home.

Sacramento Bee - California home sales rose in November compared with October, but were down from the previous year, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).  The statewide median price declined from both the previous month and previous year.

MAKING SENSE OF THE STORY FOR CONSUMERS

• The median price of an existing, single-family detached home sold in California fell below the $300,000 mark for the first time since February.  The November 2010 median price was $296,820, down 2.4 percent from October’s $304,220 median price and down 2.5 percent from the revised $304,550 median price recorded for the same period a year ago.  It was the first year-over-year price decline in a year.
• November’s sales were up 9.2 percent from October’s revised pace of 449,480 but were down 8.6 percent from the revised 536,940 sales pace recorded in November 2009.  The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the November pace throughout the year.
• “Unsold inventory declined slightly in November, as the number of active listings fell from October, particularly for homes priced above $500,000,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “The decline in listings was reflective of seasonal factors and the foreclosure moratorium that took place in October.”

For more about the California housing market, watch a video of Ms. Appleton-Young as she discusses highlights of the November sales and price report. 

California home sales rose in November compared with October, but were down from the previous year, according to data from the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).  The statewide median price declined from both the previous month and previous year.

MAKING SENSE OF THE STORY FOR CONSUMERS

• The median price of an existing, single-family detached home sold in California fell below the $300,000 mark for the first time since February.  The November 2010 median price was $296,820, down 2.4 percent from October’s $304,220 median price and down 2.5 percent from the revised $304,550 median price recorded for the same period a year ago.  It was the first year-over-year price decline in a year.
• November’s sales were up 9.2 percent from October’s revised pace of 449,480 but were down 8.6 percent from the revised 536,940 sales pace recorded in November 2009.  The statewide sales figure represents what would be the total number of homes sold during 2010 if sales maintained the November pace throughout the year.
• “Unsold inventory declined slightly in November, as the number of active listings fell from October, particularly for homes priced above $500,000,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young.  “The decline in listings was reflective of seasonal factors and the foreclosure moratorium that took place in October.”

For more about the California housing market, watch a video of Ms. Appleton-Young as she discusses highlights of the November sales and price report.

A Supplemental Directive has been issued for the Home Affordable Foreclosure Alternatives Program, which provides policy enhancements to the Home Affordable Foreclosure Alternatives (HAFA) program and amends and supersedes sections of the Making Home Affordable (MHA) Program Handbook for Servicers of Non-GSE Mortgages, version 3.0, dated as of Dec. 2, 2010. The policy enhancements to HAFA set forth in the directive have an effective date of Feb. 1, 2011; however, servicers may begin to implement the changes outlined in the directive earlier if they comply with the terms for such implementation set forth in the directive.

Among the updates includes changes to real estate brokerage commissions.  With respect to Short Sale Agreement (SSA) transactions, the real estate commission that may be paid shall be the amount indicated in the listing agreement between the borrower and the listing broker, provided that such commission shall not exceed 6 percent of the contract sales price. When the servicer has retained a contractor to assist the listing broker with the transaction, the servicer must include a statement in the SSA that any associated vendor fees will not be charged to the borrower or deducted from the real estate commission.

With respect to Alternative Request for Approval of Short Sale Alternative (RASS) transactions, when the servicer has retained a contractor to assist the listing broker with completion of the transaction, the servicer must include a statement in the Alternative RASS form that any associated vendor fees will not be charged to the borrower or deducted from the real estate commission.

The directive also covers the following topics:

• Monthly Gross Income
• Vacant Property
• Release of Subordinate Liens
• Timing for Issuance of Short Sale Agreement
• Timing for Response to Alternative Request for Approval of Short Sale
• Alternative Deed-in-Lieu Programs
• Borrower Notices
• Retroactivity
• Reporting
• Compliance

Servicers that have executed a servicer participation agreement (SPA) and related documents must follow the updated guidance in the directive by the effective date. The guidance in the directive, however, does not apply to first lien mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac, or insured or guaranteed by a federal agency, such as the Federal Housing Administration (FHA), Veterans Administration (VA), or the Dept. of Agriculture’s Rural Housing Service (RHA).

The latest housing figures from the U.S. Dept. of Housing and Urban Development (HUD) and the U.S. Dept. of the Treasury show continued home affordability in the housing market, with interest rates near record lows, but the market remains fragile, as prices are unsettled. Foreclosure starts and completions dropped significantly in November, as lenders review internal servicing procedures.  The housing scorecard is a comprehensive report on the nation’s housing market.

The December Housing Scorecard features key data on the health of the housing market including:

• Foreclosure starts and completions declined significantly in November. As lenders review internal procedures related to foreclosure processing, many foreclosure actions have been delayed leading to a 21 percent decrease in foreclosure activity in November. While this is the biggest month over month decrease since 2005, the decline is likely to be temporary as lenders eventually revise and resubmit foreclosure paperwork in the coming months.
• As expected with the expiration of the home buyer tax credit, new and existing home sales have remained below levels seen in the first half of 2010. However, the December report also shows that home prices and home equity declined moderately, as prices remain unsettled at this fragile stage of the recovery.
• More than 3.9 million mortgage aid offers were initiated between April 2009 and the end of October 2010 —more than double the number of foreclosure completions during that time.  These actions included more than 1.4 million Home Affordable Modification Program (HAMP) trial modification starts, more than 600,000 Federal Housing Administration (FHA) loss mitigation and early delinquency interventions, and nearly 1.8 million proprietary modifications under HOPE Now.

The S&P Case-Shiller Home Price Indices showed a 0.2 percent increase in the 10-City Composite and a 0.8 percent decline in the 20-City Composite in October compared with a year earlier.  In October, only the 10-City Composite and four MSAs – Los Angeles, San Diego, San Francisco, and Washington DC – showed year-over-year gains.

On a month-over-month comparison, home prices decreased in all 20 MSAs and both Composites in October compared with their September levels.  The 10-City Composite was down 1.2 percent and the 20-City Composite declined by 1.3 percent.

October was the fifth consecutive month where the annual growth rates moderated from the prior month’s pace, confirming a clear deceleration in home price returns. The 10-City Composite posted a +0.2% annual growth rate in October, versus the +5.4% reported five months prior in May, and the 20-City Composite has now reentered negative territory, down 0.8% in October, versus its +4.6% May print.

The Conference Board’s Consumer Confidence Index®, which had improved in November, decreased slightly in December. The Index now stands at 52.5 (1985=100), down from 54.3 in November. The Present Situation Index declined to 23.5 from 25.4, and the Expectations Index decreased to 71.9 from 73.6 last month.

“Despite this month’s modest decline, consumer confidence is no worse off today than it was a year ago,” said Lynn Franco, director of the Consumer Research Center at The Conference Board.  “Consumers’ assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious. Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate.”

Sales of newly built, single-family homes increased 5.5 percent to a seasonally adjusted annual rate of 290,000 units in November, according to newly released figures from the U.S. Commerce Dept.

The improvement in new-home sales was driven by gains in two regions in November. The South, which is the nation’s largest housing market, posted a 5.8 percent gain, while the West – which includes California — showed a 37.3 percent rebound from the previous month. Meanwhile, declines of 26.7 percent and 13.2 percent were registered in the Northeast and Midwest, respectively.

The inventory of new homes for sale declined to 197,000 units in November, marking the first time in 42 years that this measure has fallen below the 200,000 level. This amounts to an 8.2-month supply at the current sales pace.

The number of listings nationwide with at least one price reduction increased 4 percentage points in December 2010 compared with December 2009, Trulia.com recently reported.  Meanwhile, average reductions remained flat at 11 percent in a year-over-year comparison, although they have risen by 10 percent since last month.
 
Among the 50 largest U.S. cities, 32 experienced price reduction levels at 30 percent or higher in December compared with 14 cities a year earlier.

The 10 cities with the highest percentage change in price reductions between December 2009 and December 2010 are all in the western and southwestern states of California, New Mexico, Nevada, Arizona, and Texas. At the top of the list, Fresno more than doubled its year-over-year price reductions by 117 percent while Mesa and Phoenix – which have two of the highest price reduction levels this month – increased by 54 percent and 50 percent, respectively.

San Diego Union-Tribune – The Obama administration’s key program for modifying troubled mortgages has failed to help the vast majority of Americans facing foreclosure, according to the bipartisan Congressional Oversight Panel, which monitors the federal bank bailout program.

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New York Times - Older homeowners who have spent years building up equity may be tempted to cash out through a reverse mortgage.  But high fees can make these loans pricey.

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