Market Studies

The volume of mortgage loan applications last week declined 0.8 percent, the Mortgage Bankers Association (MBA) reported Wednesday. The drop was manufactured by a falloff in consumer demand for mortgage refinancing, despite the fact that interest rates again declined to new record-lows. For the week ending September 24, MBA's refinance index decreased 1.6 percent. The purchase index rose 2.4 percent.

Nearly one-third of Americans are unlikely to qualify for a mortgage because their credit scores are too low, making homeownership out of reach for many, according to the online real estate marketplace Zillow. The company analyzed more than 25,000 home purchase requests during the first half of September and found that borrowers with credit scores under 620 were unlikely to receive even one loan quote, even if they offered a down payment of 15 to 25 percent.

Home prices rose again in July, according to one of the industry's most closely watched gauges of property value trends. The S&P/Case Shiller Home Price Indices released Tuesday showed a 0.6 percent increase in the average price of a single-family home across the 20 major U.S. cities included in the study. S&P says, though, that annual growth rates have slowed considerably. During the month of July, 16 of the 20 metros saw their annual gains retreat.

The credit quality of first-lien mortgages serviced by the nation's largest banks and thrifts remained steady during the second quarter of 2010, according to a new regulatory report. Mortgage delinquency levels were relatively flat but elevated after rising for several quarters. Completed foreclosures were up by 7 percent from the previous quarter, but mortgage modifications increased 18 percent, and the report found that newer mods are showing significantly lower re-default rates.

The Texas metro areas of Houston and Dallas show the strongest home price appreciation over the next 12 months in the most recent market forecast from Veros Real Estate Solutions. The company says its analysis shows Texas cities leading the nation, with home prices in these areas expected to post the biggest gains in the months ahead. Meanwhile, key markets in Florida and Nevada will likely see home prices drop another 6-7 percent over the next year.

The August Mortgage Monitor report released Friday by Lender Processing Services shows that foreclosure starts are continuing to accelerate, with the GSEs displaying more aggressive timelines on early stage delinquencies. Last month, the company tracked 282,528 newly initiated foreclosures. That's 20 percent above a year ago and the highest level recorded by LPS since January of this year, when there were 287,865. As of August month end, there had been more than 2 million foreclosure starts so far this year.

According to the Warren Group, a Boston-based provider of real estate data in New England, foreclosure petitions in Massachusetts reached its highest number in more than a year, jumping to 2,713 in August-a 13.23 percent increase from a year ago, according to the Boston-based research firm the Warren Group. More than 1,200 foreclosure deeds were recorded in August, an increase for the eighth straight month.

The weekly reports on mortgage interest rates were mixed this week - but figures are still lingering close to record-lows, improving affordability for both homebuyers and borrowers looking to refinance. Freddie Mac reported Thursday that both the 30-year fixed-rate mortgage rate and the 15-year fixed-rate were unchanged from last week, while shorter-term rates were mixed. Bankrate said mortgage rates across the board dropped to new record lows it its study.

Sales figures for previously owned homes rose in August following a big correction in July, according to data released by the National Association of Realtors (NAR) Thursday. The trade group's existing-home sales report showed a 7.6 percent increase in transactions during the month, bumping the annualized sales pace to 4.13 million homes and reducing for-sale inventory to an 11.6-months supply. The sales share of distressed homes rose to 34 percent last month. Analysts say the results are in line with expectations but disappointing, nonetheless.

Commercial real estate fundamentals are still ailing from the recession and lack clear signs of near-term improvement. As a result, investors remain focused on core assets and proven markets, according to the third quarter findings of an investor survey by PricewaterhouseCoopers. The report highlights an improved lending environment and reveals that with a limited number of quality offerings to absorb all the pent-up capital, competition is strong among buyers of top-rated assets.