Home Price Index (HPI): Home Values Rising Nationwide

Home Price Index (HPI): Home Values Rising Nationwide | Mortgage Rates And News From The Mortgage Reports Blog.


Home Price Index (HPI): Home Values Rising Nationwide

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Home Price Index off less than 20% from April 2007 housing peakAre home prices rising or falling? It’s a tough question — especially because the answer depends on where you get your facts. It also matters  how old those facts just happen to be.

Click here to get today’s mortgage rates.

HPI Rises 0.3% In February

Each month, the government’s Federal Home Finance Agency — the overseer of Fannie Mae and Freddie Mac — publishes the Home Price Index.

The Home Price Index measures the change in appraised value of the same home between successive FHFA-backed transactions (i.e. home purchase, home refinance), then uses those changes to track home valuations nationwide.

According to the Home Price Index, home values rose a seasonally-adjusted 0.3 percent between January and February 2012, and up 0.4% since last February. The data runs counter to Standard & Poor’s Case-Shiller Index which shows home values in decline.

The February Case-Shiller Index has values down more than 3 percent since last year.

In contrast to the HPI, Case-Shiller uses purchase contracts only; tracks single-family homesales only; and accounts for home sales in just a handful of cities nationwide.

Click here to get today’s mortgage rates.

Colorado, Arizona Among Top States

Like everything in real estate, home values are a local phenomenon. In February, not every U.S. region show rising values.

According the Home Price Index, some areas experienced relatively large gains — the Mountain Region gained 1.9% in February — and others experiences relatively large losses. The West North Central Region shed 1.0 percent.

Other regional highlights include :

  • New England Region (Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut) : + 0.8%
  • Pacific Region (Hawaii, Alaska, Washington, Oregon, California) : -0.9%
  • South Atlantic Region (Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida) : 0.9%

Even regional notes, however, aren’t telling enough. On a city-by-city basis, and on a street-by-street level, housing markets can vary.

Click here to get today’s mortgage rates.

The Flaw In The Home Price Index

As a home buyer or seller, published data showing “rising home values” or “falling home values” may be interesting, but it’s not necessarily relevant. Most home valuation trackers — including the government’s Home Price Index and the private sector Case-Shiller Index — come standard with a severe, built-in flaw.

Both used “aged” data.

Today, the calendar reads May. Yet, we’re still discussing February’s housing data. Data from February has little value buyers and sellers in May’s housing market. And, even then, characterizing the data as “from February” is somewhat of a stretch. This is because the home values used in both the Home Price index and the Case-Shiller Index are collected from actual mortgage transactions, which are recorded at closing — not at the time of sale.

Click here to get today’s mortgage rates.

This affects valuation trackers because on a purchase, the sale price is often agreed upon 45-60 days prior to closing. Yet, those values don’t reach the Home Price Index or the Case-Shiller Index until two month later. For refinances, the lag between appraisal and closing is typically 30 days.

Therefore, when we look at the Home Price Index and Case-Shiller Index reports, what we’rereally seeing is a snapshot of housing as it was 5 months ago. Data like that is of little relevance to today’s buyers and sellers. Today’s real estate market is driven by today’s supply-and-demand — not February’s.

The Home Price Index and Case-Shiller Index are useful gauges for economists and law-makers looking at long-term trends. For buyers and sellers, though, they’re less relevant. Real-time data is what matters most.

Click here to get today’s mortgage rates.


Whether you’re buying a home or refinancing one, home valuations matters. But, so do mortgage rates. Rising mortgage rates will do more to change your home affordability than rising home prices ever could. A 1% rise in mortgage rates takes 11 percent off your purchasing power.

Take a look at today’s low mortgage rates. Plan your budget accordingly.

Click here to get today’s mortgage rates.

Courtesy of Dan Green



Monday Morning Property deal: New deals in Myrtle Beach

1600 S Ocean Blvd 314,  Myrtle Beach, SOUTH CAROLINA 29577
Price: $31,900
Bathrooms: 1.00
Wonderful fully furnished Efficiency with full kitchen across the street from the Ocean has great rental potential. This Resort has a lazy river and kiddie pool and a huge swimming View Details
Save Property

Listing courtesy of Jerry Pinkas Team of Exit Realty Elite MB
1207 S OCEAN BLVD 50604,  Myrtle Beach, SOUTH CAROLINA 29577
Price: $30,000
Bathrooms: 1.00
Save Property

Listing courtesy of Mike Thompson of Century 21 Hawkeye Realty
2001 S Ocean Blvd 518,  Myrtle Beach, SOUTH CAROLINA 29577
Price: $44,900
Bedrooms: 1
Bathrooms: 1.00
Great location in Bluewater Resort. One bedroom, one bath unit with kitchenette and oceanview. Sold AS-IS. View Details
Save Property

Listing courtesy of Timothy Gabriel of Gabriel Financial Real Estate
6214 Frontage Rd B,  Myrtle Beach, SOUTH CAROLINA 29572
Price: $49,900
Bedrooms: 2
Bathrooms: 1.00
Partial Baths: 1
This unit is currently rented. It has been an investment property. The rent is $550.00 a month. Rental history is available upon request. The tenent will  possibly sign an extentio View Details
Save Property

Listing courtesy of Ryan Gehris of Housepad
4737 Wild Iris Drive 11-105,  Myrtle Beach, SOUTH CAROLINA 29577
Price: $59,900
Bedrooms: 1
Bathrooms: 1.00
Beautiful Magnolia Place Villa.  This  1BR/1BA has a full kitchen, spacious living room area, washer/dryer and private balcony off of master bedroom.  Magnolia Place is located off View Details
Save Property

Listing courtesy of David Levy of Beach & Forest Realty
415 Ocean Creek Drive 2210,  Myrtle Beach, SOUTH CAROLINA 29572
Price: $72,000
Bedrooms: 1
Bathrooms: 1.00
Partial Baths: 1
Beautiful gated community with spectacular live oaks and green areas.  Wonderful oceanfront beach club with pool, short walk to beach.  Security, tennis, multiple pools & more.  Al View Details
Save Property

Listing courtesy of Jan Rusenko of Leonard Call- Ocean Creek

Criteria for buying a home after a short sale

Below are the waiting periods for borrowers who want to buy a home after they have had a short sale. These are conventional only, not FHA.

1. The new loan will be at 80% LTV or less – Must wait 2 years from SS settlement date.

2. The new loan will be at 80.01% LTV or Higher – Must wait 5 years from SS settlement date.

If you have any questions, please contact
Chris Johnstone
Home Loans Manager, Retail Mortgage Sales
Bank of America

Spike in Distressed Property Sales Is A Healthy Sign, Says Moody’s

Spike in Distressed Property Sales Is A Healthy Sign, Says Moody’s

May 25, 2011 10:14 AM, By Matt Hudgins, NREI Contributing Writer

An index of U.S. commercial real estate prices fell to a cyclical low in March that was down 47% from the peak in October 2007. So why should investors be happy?

The Moody’s/REAL National All Property Price Index measures price changes on completed sales of apartment, office, industrial and retail properties. A 4.2% decline in the index since February stems in part from a surge in transaction volume among distressed properties, which accounted for more than 30% of March sales.

Click chart to enlarge

Mushrooming trading of distressed assets means that investors and lenders are realizing losses on their distressed assets on a massive scale. Experts say that process is painful, but those price corrections must occur in order for the nation’s commercial real estate market to regain its footing and for overstretched property owners to de-lever and bring cash flows into positive territory.

“Importantly, we’ve now set a post-peak low in the all-property index simultaneously with a post-peak high in distress transactions,” observes Tad Philipp, director of commercial real estate research at Moody’s Investors Service, which publishes the index.

In other words, the decline in the all-property index doesn’t necessarily mean commercial real estate values are dropping. The recent dip is more a reflection of the larger proportion of transactions involving distressed assets, which bring down the average. Indeed, in primary markets where distress represents only a small fraction of transaction volume, asset values are well into a recovery cycle.

Primary price leaders

“The commercial real estate world in the five or six primary markets is as active as it has ever been in terms of desire for the properties and pricing, the backdrop being that interest rates are low,” says Bill Collins, an executive managing director who oversees the capital markets group at Cassidy Turley in Washington, D.C.

With risk-averse investors focused on a handful of gateway markets that include places like New York City, San Francisco and the nation’s capital, competitive bidding has been pushing up transaction prices in those metros for some time, Collins says.

“You’ve got a lot of capital looking to be placed,” says Collins. “The fact that there’s only 60% leverage available and 40% equity required to close a deal really doesn’t matter; people don’t need to stretch their dollars because they have this accruing pool of dollars they need to place.”

Indeed, Moody’s researchers found that average prices in the primary markets already show marked improvement. An index of non-distressed, trophy properties — those valued at $10 million or more and located in one of six major U.S. markets — in March showed property prices have risen 26.7% from a trough in December 2009.

(The six cities covered in the index are Boston, Chicago, Los Angeles, New York, San Francisco and Washington.)

In fact, pricing gains are evident among trophy assets even when distressed transactions are included in the calculation. A separate Moody’s index measuring trophy property sales including distressed deals indicates that prices have risen 22.9% since that index bottomed in July 2009. “This is consistent with liquidity in the commercial real estate sector first returning to prime assets in capital-attracting cities,” says Philipp.

Crank up the volume

A recent pick-up in transaction volume is a sign that the U.S. commercial real estate market is on the mend, because moving distressed properties through the system sets the stage for recovery, according to Moody’s.

In March, there were 182 repeat-sales transactions totaling nearly $2.5 billion, a significant increase over February’s $1.26 billion volume and 115 repeat sales. March had the second-highest number of repeat-sale transactions since 2008, the total only exceeded by that of December 2010, which benefitted from being the end of the year.

Moody’s uses repeat sales, or multiple sales of the same property over time, to calculate price changes in its indices. Looking at the larger transaction spectrum, sales of U.S. commercial real estate valued at $5 million or more totaled more than $28 billion in the first quarter of 2011, up 77% from $15.9 billion one year earlier, according to Real Capital Analytics.

Moody’s national indices showed declining prices across property types in the first quarter. Industrial recorded the largest decline, falling 7.7% from the previous quarter to a post-peak low. Office was down 7.1% from the previous quarter but was up 1.9% from its low in the third quarter of 2009.

Apartments were down 4.7% from the fourth quarter of 2010, but were up 14.1% from that sector’s low in the third quarter of 2009. Retail was down 4.5% from the previous quarter but up 9.4% from a bottom in the second quarter of 2010.

Investors can expect the all-property price index to “bounce along the bottom” until more distressed assets move through the market, Philipp predicts.

On a positive note, the special servicers that handle distressed conduit loans in commercial mortgage-backed securities (CMBS) are resolving those debts at a rate about equal to the pace of CMBS debts falling into delinquency. That is resulting in a fairly stable delinquency rate, which stands at 9.22%.

Taken together with swelling transaction volume, the commercial real estate industry appears to be making progress in dealing with distress, says Philipp. “The resolution process for this transaction cycle appears to be well under way.”

The lastest Fannie Mae fallout- FIRST HAND!

Last last week several large financial institutions put on delay on up coming foreclosure actions, the details for reason can be viewed here in an article from the Washington Post. The article states “To be certain affidavits have followed the correct procedures, Bank of America will delay the process in order to amend all affidavits in foreclosure cases that have not yet gone to judgment,” spokesman Dan Frahm said in a statement. However I found out first hand this is affecting MORE then just foreclosures that have not yet gone to judgement.

3 weeks ago a client of mine drafted an offer to Fannie “JP Morgan Chase” a bank that also put on this hold, and had it acceptedwith a closing date of next Thursday October 14th. The filing of foreclosure on the property took place in March of 2010 and was filed at the Hamilton County auditors office around the 20th of that same month. The foreclosure had already gone to judgement, then on Tuesday I receive an email from the sellers Fannie May via JP Moran Chase’s representatives that the close was on hold and needed to be extended until March 2011! My client, who was financing the purchase had locked in to an amazing interest rates and was beside themselves at what to do. The seller offered a full refund of the 5% down fee that collected on the contract agreement day and was in full understanding if the buyer wanted to walk away.

At this point I started to get down to business, not to focus on the problem but to uncover the solution!! I started by calling the County to make certain the title had been file, and recorded property and it was. I then called the title company assigned by the seller Fannie Mae via JP Morgan Chase. The closing coordinator assigned to our case was at a complete gasp, she had also be notified a the hold late in the day on Monday. She explain 45 pending closing on her desk had been put on hold, I respond “shew only 45 that sounds like a lot”, she then said “NO not only 45, 4500!” I couldn’t believe it, the title company is exclusive to cases in Ohio for Fannie Mae and all there foreclosed upon PENDING sale contract cases had been put on hold. My next call was to the listing agent, a well-known REO agent in our area who specializes in this type of transaction. He himself is difficult to get a hold of and not 10 mins after I left a message he called me direct, in a frantic vibration. He described to me the issue, all his business was on HOLD, he explain I can’t close a thing, he said “most will close within 60 days that are already pending, but some it will be upwards of 6 months”. He told me this all came down between start of business Monday Oct 5th and mid day Oct 6th. Talk about losing your income for half a year.

I stayed positive and my final call went to my beloved title attorney here in Cincinnati. The man who has the right thing to say about any situation related to real estate. Like always when I call him, I explained my situation in detail, I explained what my research had uncovered. He described to me the directions he had been given about the situation “We were told it only affects future foreclosure, this is new to me”, keep in mind this is a real estate TITLE attorney who owns his own title agency. This news was fresh and still his, but what really caught me off guard what the advice he gave me to solve the problem “Kris, I apologize but you are helpless, there is no solution”.

And so we wait…..

Tax credit closing date EXTENDED!!!!

U.S. Senate passed yesterday (60-37) an amendment that would extend the homebuyer tax credit “Closing Deadline” from the current June 30 date to September 30, 2010.

The amendment (introduced by Sens. Harry Reid, Johnny Isakson and Chris Dodd) is now part of a much larger emergency spending bill – which includes extension of certain unemployment benefits, increasing Medicare payments to physicians and flood insurance – to name a few.


Senate Majority Leader Harry Reid will likely file cloture today which means the Senate could vote on the entire emergency spending bill early next week (week of June 21st).

The U.S. House of Representatives would then need to approve the extension, likely to occur by the middle to end of next week (week of June 21st).

Assuming the House approves the extension, it then would go to President Obama for his signature, at which time it would become law.

What does this mean?

All indications are that the extension of the Closing Deadline is likely to occur.

However, as with any piece of legislation being considered by Congress, there are no guarantees until the final votes occur.

In the meantime

If you have a pending closing(s) for “tax credit” buyers, it would certainly be in your best interest to continue to work to complete them by the existing June 30 deadline.

We will provide updates on this issue as they occur. If you have any questions or need additional information, please contact me at 513-842-3014 or mquarry@cabr.org.

Take Care,


Mark J. Quarry

Director of Government Affairs

Cincinnati Area Board of REALTORSâ

Market Update: Interest Rates

HFN Partners with Kathy Lamb at Union Saving Bank to make financing this attractive and this easy.

4.875% 30-YEAR FIXED




Closing Costs As Low As $250 Refinance* / $500 Purchase*

*Costs vary based on LTV, credit score and cash out


Call Me Today To Discuss Details!

Kathy Lamb
Mortgage Consultant
Union Savings Bank
8534 E. Kemper Rd
Cincinnati, OH 45245
(513) 310-3301 Direct
(866) 871-1907 Fax

Market Update: Interest Rates

Mortgage rates continue to remain at record levels…30 year fixed rates averaging 4.875% at week’s end!

Product of the week…FHA 7 Year ARM @ 4.125%

Purchase with as little as 3.5% down payment and lock into a rate for 7 years at 4.125%…great product for first time home buyers or those looking to move up with minimal down payment!

Have a great holiday weekend.

The Improving Mortgage Rates at a closer glance

We can all breathe a bit easier going into the weekend after we saw the stock market bounce back late Friday and end on a positive note after watching the market sell off dramatically all week!   The good news to us in the Real Estate profession when the stock market sells off, investors look for safety in treasuries which allows for mortgage rates to improve.  

30 year fixed rates were averaging 4.75 to 4.875%, on Friday (average because final rates are based upon loan program, loan to value and credit scores).

With the senate passing there version of financial reform…it looks like we could see a bounce in equities this week which could push rates back to those 5.00% levels once again.

One thing that is very clear with the senate’s version are the days of qualifying for mortgage loans with little to no documentation could be over for good.   They made it very clear that lenders must consider an applicant’s income, assets and credit history when determining whether someone can qualify for a mortgage loan!   Seems to make sense, however this was clearly stated in the bill.

Over-all rates continue to remain low and do not look to increase dramatically anytime soon…so this will allow for buyers to purchase homes at historically low rates, even though the tax credit has expired!

Have a great weekend.

Market Update: Interest Rates

Keeping a close eye on the ever moving Mortgage Rates:

See the rates from all the local banks here in Cincinnati

In addition Union Saving is offering rates that look like this:


4.875% – 0 points

20 YR FIXED – 4.75% – 0 points

15 YR FIXED – 4.375% – 0 points

Closing costs as low as $250* for refinance and $500* for purchases

(plus, $100 recording fee)

*Costs may vary based on credit, LTV & cash-out

These rates are below 5% for the first time since 2009. These rates are a welcome gift to all current buyers looking to move up or move out.

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