Boston Movers Blog

The Mortgage Bankers Association reported yesterday that 9.73 percent of Massachusetts customers were at least 30 days late on home loans during the fourth quarter. That’s the highest delinquency rate in the 31 years the association has tracked such data. The MBA also found that Massachusetts had a record 8.28 percent of borrowers in “serious” delinquency, defined as at least 90 days behind on loans or already in foreclosure.
One of the reasons that MA is near the top in delinquencies is laws that provide borrowers with more time to avoid foreclosure. Such efforts help some struggling consumers, but also keep lots of mortgages that banks would have quickly foreclosed upon listed on the books as delinquent instead. These policies are very effective in slowing down foreclosures, but the flip side is that loans stay in the ‘delinquent bucket’ for longer and longer. MBA researcher Mike Fratantoni said.
Nationally, the MBA found that a record-high 4.62 percent of all U.S. mortgages were at least 90 days late during the fourth quarter. However, fewer loans were severely delinquent - a sign that the U.S. foreclosure crisis might be winding down. Fratantoni said that although long-term unemployment remains at record highs, things are looking up for homeowners who only recently lost jobs. “We’re talking about this as being the beginning of the end for this problem,” he said.
For the whole story NEWS!!! BostonHerald.com.

As you may know, the fed has been buying mortgage backed securities to keep rates low to stimulate a housing market recovery. With the depth of that recovery debatable, is now a good time for the fed to pull out?
The simple answer is yes. The fed currently has about $89 billion left to spend from its original $1.25 trillion. This would allow the fed to purchase close to $2 billion a day in mortgage backed securities through the end of Q1 2010. This figure is lower than the $3 billion a day in purchases made in mid January but should be sufficient due to the seasonal adjustment in mortgages produced. This purchase amount should keep rates near historic lows throughout the Q1.
At the end of Q1, rates will start to increase but that should coincide perfectly with the increased demand of new home purchase requests which typically happens in Q2. The fed will then be allowed to exit just as demand rises which should keep pricing stable. The stability of price coupled with the exit of fed intervention should then lead to more confidence in the housing market overall.
For more details NEWS!!! Mortgage News Daily.

Opinion by Paul Nelson
Source Mortgage News Daily

U.S. mortgage applications dipped last week, reflecting reduced demand for home purchase loans even as rates on 30-year loans fell to their lowest since December, an industry group said on Wednesday. The Mortgage Bankers Association's (MBA) seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, decreased 1.2 percent for the week ended February 5.
A continuation of lackluster demand for home purchase loans would not bode well for the U.S. housing market, which remains highly vulnerable to setbacks and heavily reliant on government intervention. The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was up 3.8 percent. With the four week average up and the inventory of homes for sale declining, one would think prices would be on the rise. But Celia Chen, senior director of housing economics at Moody's Economy.com in West Chester, Pennsylvania, said "Home prices will fall, probably until the end of the year," Chen said. "The large pipeline of distressed properties that may turn into foreclosure sales weigh down the home price outlook." "There is a great deal of uncertainty over how many properties will end up on the market as a foreclosure sale, however," she said.
The housing market faces plenty of obstacles ahead and we will keep you posted on early signs of changes. For more details NEWS!!! Yahoo Finance
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Edited by Paul Nelson