The quality mortgages have refinanced. The remaining per-2005 mortgages are now considered lowered quality.
Fitch: Challenges Ahead for Previously Strong Vintages
09/07/2012 By: Krista Franks Brock
Adverse selection is leading to rating downgrades for “one of the strongest U.S. residential mortgage vintages,” the pre-2005 vintage, according to Fitch Ratings.
Residential mortgage-backed securities formed before 2005 “have historically performed well,” according to Fitch.
In fact, more than 93 percent have already been repaid in full, and principal losses account for less than 1 percent of the $650 billion vintage.
However Fitch has placed several underperforming classes from the pre-2005 vintage on “Rating Watch Negative.
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Proprietary OC Housing News home purchase analysis
10351 WOODBURY Rd Garden Grove, CA 92843
$529,000 …….. Asking Price
$570,000 ………. Purchase Price
9/12/2008 ………. Purchase Date
($41,000) ………. Gross Gain (Loss)
($45,600) ………… Commissions and Costs at 8%
============================================
($86,600) ………. Net Gain (Loss)
============================================
-7.2% ………. Gross Percent Change
-15.2% ………. Net Percent Change
-1.9% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$529,000 …….. Asking Price
$105,800 ………… 20% Down Conventional
3.60% …………. Mortgage Interest Rate
30 ……………… Number of Years
$423,200 …….. Mortgage
$97,346 ………. Income Requirement
$1,924 ………… Monthly Mortgage Payment
$458 ………… Property Tax at 1.04%
$0 ………… Mello Roos & Special Taxes
$132 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$0 ………… Homeowners Association Fees
============================================
$2,515 ………. Monthly Cash Outlays
($302) ………. Tax Savings
($654) ………. Equity Hidden in Payment
$123 ………….. Lost Income to Down Payment
$152 ………….. Maintenance and Replacement Reserves
============================================
$1,834 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$6,790 ………… Furnishing and Move In at 1% + $1,500
$6,790 ………… Closing Costs at 1% + $1,500
$4,232 ………… Interest Points
$105,800 ………… Down Payment
============================================
$123,612 ………. Total Cash Costs
$28,100 ………. Emergency Cash Reserves
============================================
$151,712 ………. Total Savings Needed
The property above is available for sale on the MLS.
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Cost of Ownership Analysis
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Are you ready to make an offer, but you are worried you will either (1) underbid and miss the property or (2) overbid and pay too much? Don't make a mistake and miss your dream home, or worse yet, overpay for it! Get the advice of a seasoned professional. Contact us at info@ochousingnews.com today!
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$569,999 13284 MICHAEL RAINFORD Cir |
0.66 miles 4 bd / 3 ba 2,700 Sq. Ft. |
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$459,000 13422 ONTARIO Dr |
1.04 miles 3 bd / 1.75 ba 2,640 Sq. Ft. |
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$419,900 9392 WELDON Dr |
1.38 miles 3 bd / 3 ba 2,561 Sq. Ft. |
Fannie Mae: Falling Economic Confidence to Slow Housing Recovery
American consumers remain cautiously optimistic of housing as home prices rise, Fannie Mae reported Monday.
According to the GSE’s August 2012 National Housing Survey, consumers maintain a cautious but improving view of homeownership and the housing market. The average home price change expectation is 1.6 percent, mostly consistent with July’s results and down from a June high of 2.0 percent. Meanwhile, 11 percent of those surveyed say home prices will go down in the next year, holding steady at the lowest level since the survey began in 2010.
Eighteen percent of respondents say it is a good time to sell, the highest level since the survey began. At the same time, the percentage of respondents who say it is a good time to buy remained steady at 73 percent. Approximately 40 percent of respondents said mortgage rates will go up in the next year, 4 percentage points higher than July.
Consumers scaled back rental expectations a bit. Of those surveyed, 44 percent said they expect rental prices to increase in the next year, a drop of 3 percentage points, while 5 percent expect rental prices to fall. The average rental price change expectation fell 0.7 percent to 3.2 percent, the lowest level since January this year.
While consumer sentiment demonstrated a slight shift toward buying over renting, stalling household financial expectations and falling economic confidence will likely temper the housing market recovery.
“Consumer attitudes toward the housing market remain modestly positive, despite signs of increase concern over the direction of the economy,” said Doug Duncan, SVP and chief economist at Fannie Mae. “Friday’s disappointing jobs report underpins the gradual nature of this year’s housing recovery and supports our view that the muted economic recovery is still subject to downside risk and that additional Fed easing will soon be forthcoming.”
The number of respondents who believe the economy is headed in the wrong direction continued to tick up to 60 percent, the third straight rise to the highest reading since the start of the year. Thirty-three percent said the economy is on the right track, a slight drop from last month and 5 percentage points down from May’s peak.
Those who expect their financial situation to get worse dipped to 13 percent, while those who expect no changes in their financial situation increased to 41 percent.
Finally, the share of respondents who say their household income is significantly higher than it was a year ago remained level at 20 percent, while those who say it is significantly lower increased to 16 percent.