FHA condo policy changes announced
The Federal Housing Administration is to make changes to its condo policy. The National Association of Realtors together with the HUD has been pushing for amendments to “over restrictive” existing policy. At the NRAR conference in San Diego Thursday, FHA Principal Deputy Assistant Secretary Ed Golding announced changes including amendments to the lengthy and complex recertification process, burdensome owner-occupancy requirements, and limits on the types of property insurance that are considered acceptable coverage under FHA’s rules. “This is a win and a tremendous step in the right direction. NAR applauds HUD Secretary Julian Castro and FHA Principal Deputy Assistant Secretary Edward Golding for taking action to improve access to credit for condos” NAR president Chris Polychron commented.
Home price increases slow to “healthier” pace
Home prices have continued to increase across many parts of the US but overall appreciation has “slowed to a healthier pace” according to the National Association of Realtors. Its quarterly report shows that the median existing single–family home price increased in 87 per cent of measured markets, down from 94 per cent in the previous quarter. Twenty-one metros recorded double-digit increases which is 12 per cent compared to 34 per cent in the second quarter.
"The demand for buying picked up speed in many metro areas during the summer as more households entered the market, encouraged by favorable mortgage rates and improving local economies," said NAR chief economist Lawrence Yun, "While price growth still teetered near or above unhealthy levels in some markets, the good news is that there was some moderation despite the stronger pace of sales."
The national median existing single–family home price in the third quarter was $229,000, up 5.5 per cent from the third quarter of 2014 ($217,100). The median price during the second quarter of this year increased 8.2 per cent from a year earlier. The five most expensive housing markets in the third quarter were the San Jose, Calif., metro area, where the median existing single–family price was $965,000; San Francisco, $809,400; Anaheim–Santa Ana, Calif., $715,300; Honolulu, $714,000; and San Diego, $554,400.
Mortgage rates higher again
The average rates of mortgages increased again over the past week. The Freddie Mac Primary Mortgage Market Survey showed that for the week ending Nov.12; 30-year FRMs averaged 3.98 per cent, up from 3.87 per cent a week earlier; 15-year FRMs averaged 3.20 per cent, up from 3.09 per cent; 5-year ARMs averaged 3.03 per cent, up from 2.96 per cent; and 1-year ARMs averaged 2.65 per cent, up from 2.62 per cent.