Housing Recovery Stumbles A Bit

Recent talk of a recovery in housing prices appears premature. Prices as a whole recorded an 8.9% drop in the third quarter, compared to a year earlier -- a big improvement from the 15% and 19% drops in the prior five quarters, according to the S&P/Case-Shiller Home Price Index, the leading measure of U.S. home prices. But the drop for the closely watched 20-city index, 9.4%, was worse than expected.

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One in Four Borrowers Is Underwater

The proportion of U.S. homeowners who owe more on their mortgages than the properties are worth has swelled to about 23%, threatening prospects for a sustained housing recovery.

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More Homeowners Fall Behind on Mortgages

About one in seven American households with mortgages is behind on payments or in foreclosure, according to new data from the Mortgage Bankers Association. That is up from about one in 10 a year ago.

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15-Year Rate Hits Record Low

The average rate for 15-year mortgages reached a new bottom this week, dipping from 4.40 percent to 4.32 percent—the lowest level since Freddie Mac began tracking rates in 1991.

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Delinquent Mortgages Reach Record Levels

Almost 10 percent of all mortgages on one- to four-unit properties are in some stage of foreclosure, up from 2.65 percent a year ago on a seasonally adjusted basis, according to the Mortgage Bankers Association’s National Delinquency Survey released Thursday.

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Mortgages Decline to Lowest Rates in Five Weeks

Home-mortgage rates fell this week, with long-term mortgage rates hitting their lowest levels in five weeks, Freddie Mac reported Thursday.

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The Lowdown on Home-Buyer Tax Credits

Last week, President Barack Obama signed a law that extends through next spring a temporary tax credit of up to $8,000 for some first-time home buyers, which was due to expire Nov. 30. The law also adds a new tax credit of up to $6,500 for certain repeat home buyers. The package, which the government estimates will cost a total of $11 billion, is intended to help spur housing sales, a critical part of the economy.

Here are some answers to common questions about the new rules.

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Mortgage Rate Falls Below 5%

Home-mortgage rates fell this week, with the average rate on 30-year fixed-rate mortgages retreating back below the psychologically significant 5% level, according to Freddie Mac's weekly survey of mortgage rates.

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Senate Approves Tax Credit Extension, Expansion

The Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010, for first-time buyers and add a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.

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Senate Passes Extension Tax Credit for First-Time Homebuyers

Senators agreed Wednesday to extend a popular tax credit for first-time homebuyers and to offer a reduced credit to some repeat buyers. So if you want to still purchase a home, you will receive that credit. The tax credit provides up to $8,000 to first-time homebuyers. This tax credit was set to expire at the end of November.

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Tax Credit Extension Seems Likely

It seems likely that the U.S. Senate will approve a deal to extend the First-Time Homebuyer Tax Credit, but the devil is in the details.

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Long-Term Mortgages Near Record Low

Thirty-year, fixed-rate mortgages moved closer to the all-time low of 4.82 percent reached in May, falling to 4.87 percent this week from 4.94 percent a week ago, according to Freddie Mac.

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Banks Making Short Sales Tougher

Banks are backing away from short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. One-third of borrowers owe more on their mortgages than their properties are worth, according First American CoreLogic.

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One-Third of Home Mortgage Applicants Denied

Nearly one third of people who applied for a mortgage last year were denied, the Federal Reserve reported Wednesday.

The denial rate was up 29 percent from 2006 when approvals were highest. Last year’s denial rate was twice as high for African-Americans and Hispanics as it was for whites.

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