Today’s News Synopsis:

New homes saw a decline in May of 2.1%, according to NAHB.  Mortgage rates remain at a steady low for the second week straight.  Shadow inventory is decreasing slowly, but is still high for the time being.  In other news, the House Appropriations Committee voted to cut funding for the Consumer Financial Protection Bureau. 

In The News:

Inman – “Mortgage rates hold steady again near 2011 lows” (6-23-11)

“Mortgage rates held steady this week, remaining at or near their 2011 lows for the second week in a row, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey.”

RisMedia – “Shadow Inventory Slowly Fades” (6-23-11)

“The so-called “shadow inventory” of foreclosures—properties in the foreclosure pipeline but not yet listed on multiple listings services—slowly sank over the past year but still amount to five months’ worth of home sales. ”

NAHB – “Builders Back Reauthorization of Flood Insurance Program” (6-23-11)

“The National Association of Home Builders (NAHB) today expressed support for a five-year extension of the National Flood Insurance Program (NFIP) to ensure that the federally-backed flood insurance program remains efficient and effective in protecting flood-prone properties and creates more stability in the housing market”

The Wall Street Journal – “Jobless Claims Move Higher” (6-23-11)

“The number of people filing new claims for unemployment insurance ticked up last week in the latest sign that the U.S. labor market is sputtering amid slower economic growth.”

RisMedia – “MBA Study Shows First Quarter 2011 Mortgage Banker Production Profits Slide as Volume Drops” (6-23-11)

“Independent mortgage banks and subsidiaries made an average profit of $346 on each loan they originated in the first quarter of 2011, down from $1,082 per loan in the fourth quarter of 2010, according to the Mortgage Bankers Association’s (MBA) First Quarter 2011 Mortgage Bankers Performance Report released recently.”

Bloomberg – “Sales of U.S. New Homes Decreased in May” (6-23-11)

“Purchases of new U.S. houses fell in May for the first time in three months, showing the industry is struggling to gain momentum.”

Housing Wire – “Audit says FHFA failed to address consumers’ GSE complaints” (6-23-11)

“The Federal Housing Finance Agency mishandled consumer complaints about Freddie Mac and Fannie Mae, including complaints about possible foreclosure actions, the FHFA Office of Inspector General said in a report this week.”

Housing Wire – “House committee votes to slash CFPB funding” (6-23-11)

“The House Appropriations Committee voted Thursday to cap funding for the Consumer Financial Protection Bureau at less than half of what was originally estimated for the agency”

DS News – “Distressed Sales Drive CRE Prices Down for Fifith Month: Moody’s” (6-23-11)

“Commercial real estate prices (CRE) in the U.S. declined in April by 3.7 percent, according to a new report from Moody’s Investors Service.”

NAHB – “New-Home Sales Decline 2.1 Percent in May, Holding Above First Quarter Average” (6-23-11)

“Sales of newly built, single-family homes declined 2.1 percent to a seasonally adjusted annual rate of 319,000 units in May, according to figures released by the U.S. Commerce Department today.”

Looking Back:

One year ago, new home sales decreased by 33 percent in May 2010. The MBA’s weekly survey showed mortgage applications decreased by 5.9 percent the previous week. The Franchise Tax Board announced 80% of the credits for first-time home buyers program in California had been applied for. Borrowers who strategically defaulted were banned from obtaining new mortgages backed by Fannie Mae for seven years from the date of foreclosure.

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.