Standard Mortgage Financial Services, Inc.

Your Source for Mortgage Loans

  • Email
  • Facebook
  • LinkedIn
  • RSS
  • Home
  • Contact Us
  • Loan Application
    • Apply Online
    • Loan Application (PDF)
  • News Blog
    • Borrower Blog
    • Investor Blog
    • R.E. Professionals Blog
  • About Us
    • Jeff Heib
    • Pam Sosa
  • Testimonials
  • History
  • Privacy
You are here: Home / Archives for Standard & Poor’s

Rise in Home Prices May Not Indicate a Bubble

June 19, 2013 By Jeff Heib

bubble

As the rebound in the U.S. housing market continues to strengthen, with annualized prices rising more than 10 percent nationally in March and April, some market watchers have begun to warn of a reinflation of the property bubble that burst in 2007 and led to the country’s worst economic slump since the Great Depression. Standard & Poor’s Ratings Services suggests that, while double-digit gains in prices are unsustainable, it may be premature to view the current state of U.S. housing as being in a bubble, Standard & Poor’s said in a report published on RatingsDirect titled, “U.S. Home Prices Suddenly Surge, But Talk Of A Bubble May Be Premature.”

A number of factors are contributing to the increase in home values, including historically low (albeit now rising) borrowing costs, property purchases by investors looking to rent them out, and the undersupply of homes for sale–new houses, in particular–as builders struggle to ramp up after a half-decade of cuts.

All told, S&P believes U.S. home prices are low relative to historical values. Nationally, home prices are still 28 percent below their July 2006 peak. Fundamental indicators such as price-to-rent and price-to-income ratios remain favorable. The ratio of home prices to rents returned to about 16.2 times in the first quarter of this year, down sharply from more than 25 times in 2007 and slightly below the long-term average.

Standard & Poor’s believes that while the current pace of gains in home prices may not last long, it’s premature to describe the market as being in a bubble. In fact, with home values still well below their pre-recession peaks, we expect prices to continue to rise this year.

This article came from National Mortgage Professional Magazine they can be reached at http://nationalmortgageprofessional.com

Filed Under: Investors, Real Estate Professionals Tagged With: housing bubble, originations, sales, Standard & Poor's, trends

In the News

April 1, 2013 By Jeff Heib

Our thanks to Raul Camaligan Cell: (323) 228-2663  Fax: (877) 889-4795, a specialist is conventional loans.  He can also be reached at Raul.Camaligan@Prospectmtg.com


His report tracks some interesting #s for us in the real estate industry.

The Standard & Poor’s/Case-Shiller 20-city housing price index — on a non-seasonally adjusted basis — rose 0.1% in January after a 0.2% increase in December. On a year-over-year basis, prices rose 8.1% compared with January 2012, the largest annual gain since the summer of 2006.

Orders for durable goods — items expected to last three or more years — increased $12.4 billion, or 5.7%, to $232.1 billion in February. This follows a 3.8% decrease in January. Excluding volatile transportation-related goods, February orders posted a monthly decrease of 0.5%.

New home sales fell 4.6% in February to a seasonally adjusted annual rate of 411,000 units from a rate of 431,000 units in January. On a year-over-year basis, new home sales were 12.3% higher than February 2012. At the current sales pace, there is a 4.4-month supply of new homes on the market.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending March 22 rose 7.7%. Purchase volume rose 7%. Refinancing applications increased 8%.

Pending home sales, a forward-looking indicator based on signed contracts, fell 0.4% in February after a revised 3.8% increase in January. On a year-over-year basis, pending home sales were 8.4% higher than February 2012.

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 0.4% in the fourth quarter of 2012. This follows a 3.1% pace of growth in the third quarter of 2012.

Initial claims for unemployment benefits for the week ending March 23 rose by 16,000 to 357,000. Continuing claims for the week ending March 16 fell by 27,000 to 3.05 million. The less volatile four-week average of claims for unemployment benefits was 343,000.

Filed Under: Investors, Real Estate Professionals Tagged With: Case-Shiller, Durable goods orders, gross domestic product, new home sales, pending home sales, Prospect Mortgage, Raul Camaligan, Standard & Poor's, unemployment benefits

Subscribe for FREE Updates

Subscribe to our free newsletter and receive the "Social Media Power" ebook for free ($14.95 value). Limited Time Offer

Click here to Subscribe

Standard Mortgage Financial Services, Inc.
6700 Indiana Avenue, Suite 220
Riverside, CA 92506
Phone (951) 686-9639
Toll Free (800) 476-5626
Jeff's Direct Line (562) 806-2921
Fax (951) 686-0361
California BRE #01211863

Recent Posts

  • COVID-19 (Coronavirus) Information and Resources
  • Mortgage e-Alert: Pending California Legislation
  • CalBRE Licensee Alert: Issued March 2017
  • Mortgage e-Alert: HUD/FHA and other news
  • MORTGAGE e-ALERT: THE MOST COMMON VIOLATIONS FOUND IN CALBRE AUDITS

Categories

Tags

660 ficos 680 ficos 1031 Exchange affordable housing balloon payments bankruptcy California Association of Mortgage Professionals CAMP consumer financial protection bureau consumer loans department of real estate Dodd Frank dre regs Duane Gomer fannie mae federal trade commission foreclosure freddie mac Herman Thordsen high LTV loans home sales housing applications installments interest only late charges loan collections monthly loan payments Occupy Wall Street OWS private lending private real estate loans property values Prospect Mortgage Raul Camaligan real estate loans RESPA reverse mortgage single family owner occupied software Standard & Poor's Thordsen Law Offices trust deed Truth in Lending Act unemployment benefits Wells Fargo

News from the Blog

COVID-19 (Coronavirus) Information and Resources

CDC: Interim Guidance for Businesses and EmployersSBA: Small Business Guidance and Loan ResourcesScore: Small Business … [Read More...]

Mortgage e-Alert: Pending California Legislation

(4-24-2017) - From our good friends at the Thordsen Law Offices: PENDING CALIFORNIA LEGISLATION THAT AFFECTS REAL ESTATE … [Read More...]

Subscribe for FREE Updates

Click here to Subscribe

Follow Our Blogs

Borrowers
Investors
Real Estate Professionals

Categories

Standard Mortgage Financial Services, Inc.
6700 Indiana Avenue Suite 220
Riverside, CA 92506-1827
Phone (951) 686-9639
Toll Free (800) 476-5626
Jeff's Direct Line (562) 806-2921
Fax (951) 686-0361
California BRE #01211863

Copyright © 2022 Standard Mortgage Financial Services, Inc. | Website by The Burrell Group · Log in