4.27% for the reporting week ending November 3. This movement downward is a reaction to weak housing demand and the continuing foreclosures. This continues to represent great opportunities for homebuyers seeking a great home. Refinancing activity continues but has tapered off from the frenzy seen a year ago. Barclay's reports that wealthy investors, those with more than $800,000 investable assets, view residential real estate as a good investment.
According to the National Association of Realtors, October's number of sales jumped 10% year over year. Depending on how the numbers are viewed, the primary motivator is the closing activity associated with the initial First Time Home Buyer's Credit which deadlined closing activity for November 30. The Colorado Springs market data saw a mix of activity and a definite impact of the initial deadline looming.
The Obama administration and the Treasury announced stronger efforts to pressure mortgage companies to modify troubled loans rather than foreclose and seize assets. The administration has a $75 billion foreclosure plan which intends to stem the rising foreclosure wave in an effort to stabilize the real estate markets and values. Approximately 650,000 homeowners have qualified and are participating in a temporary loan modification program but final modification can be difficult to obtain. Failure to obtain a permanent modification can be disastrous for homeowners participating in a temporary modification program because payments are considered partial if the final approval fails resulting in an immediate determination of significant late payments resulting in credit score damage and potential foreclosure. As SpringsBlog.com discussed, Fannie Mae announced the "Deed for Lease" program to assist these homeowners by allowing them to stay in place even if they couldn't get a final loan modification approval. A portion of the $75 billion is set aside to reward companies for modifying loans permanently. At the end of December, final numbers will be announced regarding approved permanent loan modifications; at the moment, more than 375,000 homeowners are on track to receive the credit.
