Market Studies

Investors aren't the only major players driving the housing recovery. According to results from the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey for March, first-time homebuyers and current homeowners are also building a strong presence as they dominate the non-distressed market. Investors accounted for 13.3 percent of the market share for non-distressed properties, while current homeowners represented 50 percent of the market. First-time homebuyers also made up a significant portion at 36.8 percent.

Home prices will increase over the next three years as the economy expands and servicers work through their distressed inventories, according to a report from Moody's Analytics. Home prices will rise about 4.2 percent between the fourth quarter of last year and the fourth quarter of 2015, Moody's projected. The firm also anticipates foreclosures will have less of a hold on home prices in years to come as ""fundamentals that normally drive house prices"" come back into play, including ""job growth, demographics, affordability, and supply conditions.""

The nation's economy rose at a seasonally adjusted annual rate of 2.5 percent in the first quarter, slightly slower than economists had expected but more than six times the growth rate in the fourth quarter, the Bureau of Economic Analysis reported Friday. Economists surveyed by Bloomberg had expected gross domestic product (GDP) to grow at a 3.1 percent pace. Residential fixed investment added $11.8 billion to GDP, down from the $15.3 billion contribution in the fourth quarter, and spending on non-residential structures actually subtracted from GDP, albeit a scant $200 million.

After months of robust and largely unsustainable annual home value appreciation, the national housing market finally showed signs of moderation in this year's first quarter, Zillow reported Thursday. Quarterly home value appreciation in the fourth quarter was 2.1 percent--indicating the market is slowing down to a more sustainable pace, says Zillow chief economist Dr. Stan Humphries. Looking ahead, the company's Home Value Forecast shows national home values rising 3.2 percent through March 2014, an annual appreciation rate more in line with historic norms.

The economic recovery, which began in 2009, has brought disproportionate gains to the wealthiest Americans, while the majority of households experienced a decline in worth, according to research released this week from the Pew Research Center. The top 7 percent of households--measured in terms of household wealth--experienced a 28 percent increase in net worth from 2009 to 2011, while the remaining 93 percent of American households experienced a 4 percent decline in worth, according to Pew.

CoreLogic, a leading residential property information, analytics, and services provider headquartered in California, announced its acquisition of Case-Shiller from Fiserv, Inc. The acquisition closed March 20.

According to Interthinx's yearly Mortgage Fraud Risk Report--based on analysis of loan applications processed throughout 2012 by Interthinx's FraudGUARD system--the 2012 Annual Mortgage Fraud Index was 150, a 3.4 percent rise from 2011's index reading of 145. While the East housed more risky states last year, the West was home to two of the riskiest--Nevada and Arizona, which ranked first and third in terms of risk, respectively.

Freddie Mac's weekly Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 3.40 percent (0.8 point) for the week ending April 25, down slightly from 3.41 percent last week. Last year at this time, the 30-year fixed averaged 3.88 percent. Bankrate.com also reported its sixth straight week of declines. According to the site's weekly national survey, the benchmark 30-year fixed rate retreated to a four-month low of 3.57 percent

First-time claims for unemployment insurance dropped for only the second time in the last six weeks, falling 16,000 to 339,000 for the week ending April 20, the Labor Department reported Thursday. The report offered final numbers for the week ending April 13, the same week used by the Bureau of Labor Statistics (BLS) for its monthly Employment Situation report to be released May 3.

The broadening housing recovery has firmed up home prices around the country, with the potential to restore many underwater mortgages to a position of positive equity, according to Fannie Mae's economic and strategic research group. Citing data from CoreLogic, the GSE notes that 1.7 million properties moved from negative to positive equity last year. Provided the home price gains seen so far this year continue, Fannie's economic analysts anticipate another 1.8 million properties will rise out of their underwater positions by the end of 2013.