August/2Q Report Catch Up
Multiple reports were recently released, revealing a variety of results about the state of the real estate market. Here’s a brief overview in case you missed it.
Single-family home loans rose 8.5% in August and are helping increase hope throughout the housing market. However, the NAR is cautious to read too far into this month’s boost. They believe it may be a result of June and July’s delayed loan transactions due to appraisal problems, as both months were particularly slow.
FHA production also increased in August with lenders funding $17.4 billion during the month and endorsing $220 billion in single-family and reverse loans. However, this is still a 25% decrease from FHA endorsed loans last year in 2010, revealing how much the housing market is currently lagging. Consultants speculate that the increase in FHA insurance premiums and lender “overlays” may be hurting the program, restricting its growth.
And lastly, 2011’s 2Q report was released, disclosing that only $291 billion loans were originated during the quarter, which is unfortunately worse than the 2008’s 4Q report. Although there was a huge influx of refinances, purchases were scarce as consumers continued to worry over falling home values and their employment prospects.