Real Estate

The role of Federal government in financing housing has grown so dramatically since the outset of the housing crisis that the government now no longer simply supports the mortgage market. It has taken on so much of the risk involved in financing housing that it has become the market, with the taxpayer shouldering the risk that had once been borne by the private investor.

The higher end of the US housing market continued to weaken in January as serious delinquencies U.S. prime jumbo loans rose for the 32nd consecutive month, according to Fitch Ratings.

As the Federal Reserve Bank of New York completed its latest purchases of mortgage backed securities to prop up mortgage interest rates, its president went public with hints that the Fed would consider reopening its soon-to-end program if interest rates spiked or the economy showed new weakness.

The Federal Trade Commission moved to protect distressed homeowners from bogus foreclosure rescue and mortgage modification services by proposing a new rule that would forbid companies to charge for these services up-front. Instead, companies could only collect payment after providing services.

Time is running out on homebuyers interested in buying hundreds of thousands of affordable homes, as much as 20 percent of the inventory in high foreclosure markets, and still qualify for the homebuyer tax credit, which requires the property be under contract by April 30 and must close escrow by June 30.

Nothing drives change like crisis, and the credit crisis that home builders face is driving them out of business faster than wretched levels of new home sales. An amazing event at the International Builders' Show earlier this month promises to change the industry's financing structure forever and breathe new hope into the industry.

Though most economists believe the nation's housing crisis shares the stage with unemployment as the two fronts where we are failing in America's war to revive its economy, housing barely received a mention in President Obama's first State of the Union message last night.

With prices hitting or approaching bottom in markets nationwide and record number of foreclosures available, professional investors armed with cash-rich investors are emerging as a factor in the lower end of the residential market.

Nearly five years ago, the Supreme Court sanctioned the use of eminent domain—the government's power to condemn property—for economic rather than public purposes. Many viewed the case of Kelo v. City of New London as a watershed in the historic struggle between private property rights and public need.

Despite the extension of the $8000 Federal tax credit in late November, first-time home buyers, the most important segment of the home purchase market in 2009, accounted for a shrinking share of the housing market as 2009 drew to a close.

After suffering 30 percent or greater losses in the value of their homes last year, homeowners are looking forward to a silver lining in the form of lower property taxes as assessments adjust to the new real estate reality.

As expected, foreclosures broke records by wide margins in 2009, with 2.8 million foreclosures being filed, an increase of 21 percent over 2008 and 120 percent over 2007, according to RealtyTrac's year-end report.

First-time homebuyers in California, Texas, New York and Kentucky will have bigger smiles on their faces than those in other states when they do their taxes this year.

The weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages decreased six basis points last week to 4.99 percent, down from 5.05 percent the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate Web site Zillow.com®. Rates for 15-year fixed mortgages fell seven basis points to 4.41 percent from 4.48 percent, and 5-1 adjustable rate mortgages fell nine basis points to 4.06 percent, from 4.15 percent the week prior.

The percentage of wealthier homeowners who are delinquent two months or more on prime, jumbo mortgages tripled in 2009to nearly ten percent, according to the latest data from Fitch Ratings.