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Rental Demand Goes Up, Rental Prices Go Down?
Tweet Share on Facebook February 13, 2012 Comment (2)In the space of just a few years, the nation's foreclosure crisis has chewed up millions of homeowners and spat them back into the housing market as renters.
You would think a huge inflow of rental demand and relatively limited supply—vacancy rates are at their lowest levels in 10 years—would cause rents to spike dramatically, but according to a recent study by Chicago-based risk management information firm TransUnion, that's not the case. The national average for rent has actually dropped slightly, from about $831 in the fourth quarter of 2010 to $820 in 2011.
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Bernanke: Tight Credit Impeding Housing, Economic Recovery
Tweet Share on Facebook February 10, 2012 Comment (2)On the heels of the government's $25 billion dollar foreclosure-abuse settlement, Federal Reserve Chairman Ben Bernanke headed down to the foreclosure-ridden state of Florida Friday to speak to a group particularly impacted by the housing market meltdown and foreclosure crisis.
At a board meeting of the National Association of Home Builders in Orlando, Bernanke wasn't too optimistic about the future of the housing market, even given the recent flurry of government proposals designed to help struggling homeowners.
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Why the Foreclosure Settlement Could Mean More Pain for Homeowners
Tweet Share on Facebook February 10, 2012 Comment (2)The government's recent multibillion-dollar settlement might seem like a godsend given the still-rickety shape the housing market is in. But while the agreement will certainly help some people—close to 2 million, according to some estimates—it will undoubtedly hurt others, experts say.
That's because the cloud of uncertainty hanging over how mortgage servicers should legally proceed with foreclosure filings is starting to clear. As details of the settlement are worked out, it will allow lenders and servicers to move forward with the foreclosures they delayed during the 16-month robo-signing saga.
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Mortgage Settlement: Do the Big Banks Owe You Money?
Tweet Share on Facebook February 10, 2012 Comment (11)The 16-month saga delving into sloppy foreclosure processes by the nation's largest mortgage lenders culminated in yesterday's announcement that a $25 billion settlement had been reached.
Billed as a victory for ill-treated homeowners and victims of the robo-signing scandal, the agreement could help close to 2 million Americans, according to federal officials.
But how do you know if you're eligible for a cut of the multibillion-dollar settlement? And how do you go about making a claim? We take a closer look at the nuts and bolts of the mortgage settlement:
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How the Foreclosure Deal Affects Homeowners
Tweet Share on Facebook February 9, 2012 Comment (2)Struggling homeowners and victims of the foreclosure crisis could finally get a break from the bill collectors courtesy of big banks, federal officials announced Thursday.
A $25 billion settlement with the nation's largest mortgage servicers—Ally/GMAC, Citi, JPMorgan Chase, Wells Fargo, Bank of America—will provide "immediate relief" to Americans burned by the housing meltdown, Attorney General Eric Holder said in a press conference.
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Bernanke Gives Muted Praise for Government Foreclosure-to-Rental Program
Tweet Share on Facebook February 7, 2012 Comment (2)The Obama administration's plans to get the nation's huge inventory of vacant homes back on the rental market is an "interesting direction," Federal Reserve Chairman Ben Bernanke said Tuesday.
Testifying in front of the Senate Budget Committee on the state of the U.S. economy, Bernanke underscored the imbalance between the supply of housing and demand for rental housing and the negative effects of leaving homes unoccupied.
"There's a shortage of rental housing, there's an imbalance there," Bernanke said, mentioning recent plans to convert government-owned foreclosures to rentals. "There are heavy costs to leaving homes unoccupied for long periods of time, vandalism and neglect. It hurts the neighborhood."
[Read: Fed Taking Heat on Housing Policies.]
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'Mixed Signals' in Obama's January Housing Scorecard
Tweet Share on Facebook February 6, 2012 CommentWeak home prices and an uptick in foreclosure completions weighed down the housing market in January, dampening optimism fueled by better sales and construction numbers last month.
Housing statistics collected in the January Housing Scorecard, released Monday by the Department of Housing and Urban Development and the Department of the Treasury, underscored the persistent fragility of the housing market and the lukewarm outlook for significant improvement in 2012.
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3 Good Housing Numbers From the Jobs Report
Tweet Share on Facebook February 3, 2012 CommentThe jobs outlook is improving, according to the latest numbers from the Labor Department. The economy added 243,000 jobs in January—much higher than the 125,000 or so most economists expected—driving down the jobless rate to 8.3 percent and boosting hopes for a stronger economic recovery this year.
That's good news for the housing market because more jobs tend to create more housing demand, something the languishing housing market has been lacking for a while now.
But it's not all about the headline numbers. Here's a closer look at other numbers that bode well for housing:
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Geithner: Refinancing Help On the Way
Tweet Share on Facebook February 2, 2012 Comment (2)Regulators are trying to make home refinancing easier, Treasury Secretary Timothy Geithner said in a speech Thursday, outlining his plans for financial reform in 2012.
The government is working with the Federal Housing Administration and the Federal Housing Finance Agency to remove "unnecessary barriers" some borrowers are facing when applying for new mortgages or refinancing current home loans.
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Fannie Mae: Don't Expect 'Normal' Housing Market Until 2015
Tweet Share on Facebook February 2, 2012 CommentAmericans will have to wait a few more years for the housing market to return to "normal," an industry expert said Thursday.
"We're five years through a 10-year adjustment cycle," said Doug Duncan, vice president and chief economist at government mortgage giant Fannie Mae, who expects the housing market to stabilize sometime around 2015.
The path to stabilization, however, will be fragmented regionally, Duncan said, primarily along foreclosure and delinquency fault lines. "Two-thirds of households underwater are in 5 states," Duncan said, states which likely face more pain before any gains. "It's a very regional issue going forward."
