Perspective

Not a lot of real estate agents post links to articles talking about price declines, but the corollary link is that mortgage applications continuing rising. So we continue the same stories we've been tracking--prices remain under pressure, BUT we still have people taking advantage of buying opportunities and very low mortgage rates. I would say the lesson is to keep it all in perspective, not dwell on the solely negative news stories, nor to get too excited about the positive items. Remember the mantra--if the house works for you, and your mortgage payment is affordable, and you wouldn't need to sell it next year, you don't need to be afraid of buying.

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Home Values See Biggest Drop Since 2008
Published: Monday, 9 May 2011 | 8:36 AM ET
By: Reuters

U.S. home values fell in the first quarter at the fastest rate since late 2008, real estate data firm Zillow said on Monday, suggesting that a bottom will not be seen until 2012 at the earliest.

Zillow said its home value index fell 3 percent in the first three months of the year from the previous quarter, and was down 8.2 percent year-over-year.

The number of homeowners under water—or, those who owe more on the mortgage than their house is currently worth—amounted to 28.4 percent of single-family homeowners, representing a peak since Zillow began calculating the data in 2009.

That was up from 27 percent in the fourth quarter of last year.

Foreclosures also rose, following the moratoriums that had been in place in late 2010. In March, one out of every 1,000 homes was in foreclosure.

Given all those factors, it is unlikely home values will reach a bottom this year, Zillow said, and the firm pushed its forecast out to 2012.

"Home value declines are currently equal to those we experienced during the darkest days of the housing recession. With accelerating declines during the first quarter, it is unreasonable to expect home values to return to stability by the end of 2011," Zillow chief economist Stan Humphries said in a statement.

Almost all of the 132 markets covered by Zillow saw home value declines. Only Fort Myers in Florida, Champaign-Urbana in Illinois, and Honolulu, Hawaii, managed quarterly increases.
Copyright 2011 Thomson Reuters

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Mortgage Applications Rose Last Week
Published: Wednesday, 4 May 2011 | 8:48 AM ET
By: Reuters

Applications for U.S. home mortgages rose last week, helped by refinancing demand as interest rates fell for the third week in a row, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, rose 4 percent in the week ended April 29.

The MBA's seasonally adjusted index of refinancing applications climbed 6 percent, while the gauge of loan requests for home purchases added 0.3 percent.

The refinance share of mortgage activity rose to 62.7 percent of total applications from 61.6 percent the week before, the highest level of the month, MBA said.

Fixed 30-year mortgage rates averaged 4.76 percent in the week, down from 4.80 percent the week before.