Market Studies

In Fannie Mae's most recent housing survey, consumers maintained their optimism toward home prices, while the share of consumers who said now is a good time to sell reached a record high. However, consumers in the survey were less optimistic about the economy and their own financial situation. Nearly half, or 48 percent, of respondents in the February survey said they expect home prices to rise in the next 12 months. At the same time, 25 percent also believe now is a good time to sell, the highest level since the survey's June 2010 inception.

Freddie Mac's Primary Mortgage Market Survey indicated little to no movement in fixed rates for the week ending March 7. According to Freddie Mac's readings, the 30-year fixed-rate mortgage (FRM) averaged 3.52 percent (0.7 point) this week, up slightly from the previous 3.51 percent average. Last year at this time, the 30-year FRM averaged 3.88 percent. Meanwhile, Bankrate.com reported no movement in any of its three major metrics, with all of them reading the same as last week.

NeighborWorks America announced Thursday that borrowers who receive pre-purchase mortgage counseling and education from the organization are about one-third less likely to become seriously delinquent within the first two years of obtaining their mortgage loan compared to borrowers who do not receive counseling. Analysis from Neil Mayer and Associates and Experian found the probability of a homeowner becoming seriously delinquent within the first two years of their mortgage loan declined by about one-third for those who received pre-purchase counseling, with almost no difference between first-time and repeat buyers.

Although rates for foreclosure starts and sales remain volatile, one underlying trend continues: foreclosure inventory in judicial states is still three times higher than that of non-judicial states, according to Lender Processing Services (LPS). As of the end of January 2013, the share of loans in foreclosure inventory in judicial states stood at 5.69 percent compared to 1.79 percent for non-judicial states, according to LPS' mortgage monitor report. LPS also revealed at the current rate, it will take 62 months to clear foreclosure inventory in judicial states compared to 32 months in non-judicial states.

After assessing over 900 markets across the country, RealtyTrac put together a list of the top 15 markets for short sale and REO purchases for the year. Out of the 15 markets selected for short sales, nine were located in California. RealtyTrac also noted the average remaining deficiency after a short sale exceeded $100,000 in seven of the 15 markets, which suggests banks are willing to take a huge loss to avoid foreclosure. The markets on the REO list averaged discounts ranging from 33 to 57 percent and the time to sell ranged from 139 to 175 days compared to 188 to 358 days for short sales.

While more than 90 percent of homes purchased in 2011 were existing homes, more than half of homebuyers declared a preference for new homes, according to the National Association of Home Builders' (NAHB) Characteristics of Home Buyers, an analysis of the 2011 American Housing Survey conducted by the Census Bureau. About 55 percent of survey respondents stated a preference for new homes, according to NAHB. Along with their preference for new homes, survey respondents expressed a desire for energy-efficient homes.

Borrowers who refinance through the Home Affordable Refinance Program (HARP) save an average of $83 per week, yet there are still hundreds of thousands of borrowers who are reluctant to refinance, according to a recent commentary authored by Tom Seidenstein, VP for financial markets and policy research at Fannie Mae&'s Economic and Strategic Research Group. To find out what drives borrowers, including those who are underwater, to refinance, the GSE's research group surveyed 2,400 borrowers with Fannie Mae loans who fit HARP eligibility criteria. The survey found 34 percent did not refinance because of closing costs, making it the most commonly cited reason.

Immigrants have been and will continue to play a large role in the housing market, according to a new report from the Research Institute for Housing America (RIHA), sponsored by the Mortgage Bankers Association. The number of new foreign-born homeowners has risen steadily throughout the nation over the past three decades and is expected to continue with some areas of the country owing most of their homeownership growth to the demographic, according to the report. RIHA anticipates new immigrant homeowners will contribute to homeowner growth in the amount of 2.8 million in the current decade ending in 2020.

Asking home prices have risen 7.0 percent year-over-year since bottoming out last February, Trulia revealed in its February Price Monitor Report. At the same time, inventory fell 23 percent year-over-year in February, according to data provided from Department of Numbers. Inventory fell year-over-year in all of the 50-plus markets tracked, dropping more than 50 percent in several California metros.

When economic times were especially shaky, commercial and multifamily mortgages stood firmly in place compared to other loan types held by banks and thrifts, according to a DataNote from the Mortgage Bankers Association. For example, during the recession, the association noted the amount of commercial and multifamily mortgage debt extended and held by financial institutions remained steady. In addition, commercial and multifamily mortgages had the lowest charge-off rates compared to other loan types.