FHA Financing Accounted for 37% of Home Purchases in October

FHA’s share of the home purchase market rose sharply in October as first-time homebuyers dominated the housing market. According to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions, FHA financing represented 37 percent of home sale transactions tracked last month  up from a 32 percent share as recently as August. Perhaps more importantly, FHA accounted for a whopping 61 percent of the financing used by first-time homebuyers in
October. This was up from 58 percent in August and September. The possibility that the homebuyer tax credit would expire was clearly a factor in the jump in first-time homebuyer activity as this group accounted for 47 percent of home purchase transactions tracked in October.

Click here for more info on the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.

New Homebuyer Tax Credit Likely to Encourage Mostly First-Time Purchasers

The proposed move by federal lawmakers to extend and expand the homebuyer tax credit is likely to have a much larger impact on first-time homebuyers than trade-up homebuyers, according to results from the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. The proposal expected to be approved this week would extend an $8,000 tax credit for first-time homebuyers and add a new $6,500 credit for current homeowners who buy a new principal residence.

Because the credit would average 4 percent of the purchase price for first-time homebuyers but only 2 percent for current homeowners, a lot more first-time purchasers are expected to take advantage of the tax break. Campbell Surveys estimates an extension and expansion of the tax credits will generate about 300,000 additional home sales to first-time homebuyers and 150,000 extra sales to current homeowners. Click here for more info.

Cash is King in REO-Dominated Housing Market, Survey Finds

Cash deals accounted for more than a quarter of home sale transactions tracked nationwide during the third quarter of 2009, according to the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. Not surprisingly, the survey found most of the cash deals were tied to sales of distressed properties–particularly damaged real estate owned, or REO. The growth in cash transactions, which is expected to continue for the foreseeable future, could put a damper on mortgage lender plans to grow their home purchase financing business in 2010.

For more information on the monthly survey contact John Campbell at john@campbellsurveys.com or (202) 363-2069.

New Monthly Housing Tracking Survey Launched by IMF

To help track the impact distressed properties are having on regional housing markets as well as monthly changes in the home purchase market, Inside Mortgage Finance has teamed up with Campbell Surveys to produce a comprehensive new monthly tracking survey. The Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions tracks both home sales and mortgage usage patterns nationally as well as regionally. The August survey results showed that 46 percent of all home sales involved distressed properties.

Damaged real estate owned (REO) accounted for 18 percent, move-in ready REO accounted for 16 percent, and short sales accounted for
another 12 percent.

Click here for more info.

New National Directory of REO Specialists Now Available

Campbell Surveys and Inside Mortgage Finance have announced the availability of a new national directory of real estate agents that specialize in the handling of real estate owned or REO. The new directory, which includes detailed contact information, is in a Microsoft Excel spreadsheet format and is free of charge. Click here for more info.

Largest Servicers to Explain Their Handling of Short Sales

The Obama administration is stepping up its efforts to promote short sales as part of its plan to help distressed homeowners avoid foreclosure. On August 18, representatives from the country’s two largest servicers–Bank of America and Wells Fargo–will outline their approaches for dealing with short sales at an audio conference from Campbell Surveys. The event– “Navigating the Short Sale Process: Learning from the Nation’s Largest Mortgage Servicers” –is aimed at helping real estate agents and others take advantage of the new opportunities to expedite short sales.

Click here for more info.