Due to record-low mortgage rates, applications spiked significantly during the week ending July 13, according to the Mortgage Bankers Association. That jump may signify a stabilizing market for transferees.

The Weekly Mortgage Applications Survey from the group showed that the Market Composite Index – which tracks total loan applications – increased 16.9 percent. Much of the demand came from current homeowners, as the Refinance Index improved by more than 20 percent and the Purchase Index was nearly unchanged from one week earlier.

"Refinance application volume increased last week to near peak levels for the year as mortgage rates dropped to a new low, driven down by growing concerns about the health of the U.S. economy," said Mike Fratantoni, MBA's vice president of research and economics.

The MBA added that the total refinance share during the week eclipsed 80 percent, which was a rise from the previous week's figure of 77 percent. Furthermore, only 4.1 percent of total applications involved adjustable-rate mortgages.

Continued improvements in mortgage application volumes, coupled with low rates, show the real estate market as improving. Transferees uncertain how the current market affects them should consult with their mortgage service company.

Filed under: Mortgage Services | No Comments »

During the recession, foreclosures increased exponentially, and this left a significant amount of inventory behind in many markets nationwide. Because of their low cost, many corporate transferees may look at these properties as an affordable relocation mortgage options. However, there are things for companies to consider regarding these homes.

There are many ways to purchase a home that has been in a state of foreclosure, and not every option necessarily involves a home that has sat vacant for a significant period of time. A portion of properties are in default and will be sold off before they actually are officially foreclosed. Short sales can be discounted, but likely involve the lender, as the mortgage is likely underwater, which means that the market value of the property is lower than what is owed on the mortgage.

However, if the property is in possession of a homeowner who declares bankruptcy, the sale would occur by a court. This can make the process go significantly longer.

Foreclosure sales where entities bid on the property usually go to investors, as they can bid more and are more privy to the area's foreclosure rules. In addition, since some municipalities require cash for these purchases, it is typically easier for large investors to do this. However, some areas have mechanisms to aid private buyers who want to purchase their preferred home.

A major drawback to some foreclosed properties is the fact that it is often not possible to know the condition. People could still be living in the property, even if it is boarded up. If squatters are still living in the property, it will take further action through the courts to ensure that everything is taken care of, and there is no one left in the property. This could complicate a situation where the transfer date is fast-approaching.

If a transferee wants to avoid these difficult situations, it is recommended that they explore options through an investor. Since they may have already acquired the property through a foreclosure auction, it could be possible to make a purchase before it is handed off to a real estate broker and put back on the market.

With any foreclosure purchase, transferees should not overlook the importance of title insurance, since the property ownership history of foreclosures can be more muddled than many traditional sales.

Those looking for a foreclosed home likely need to contact a real estate agent who can work with them to find the right opportunity, as they will be more aware of the local market and be able to explain the options more clearly. These agents will help transferees find realistic properties and properly target their offers. Depending on the situation, it is possible to get an affordable home that is both attractive and reliable.

Starting this process in advance will improve the chances that the corporate relocation will be able to move smoothly. It will also allow the transferee to arrive at their new assignment on time and adjust to their surroundings more easily.

Filed under: Mortgage Services | No Comments »

Affordability continued in to be present the mortgage market during the week ending July 12, according to a report from Freddie Mac, which may affect those searching for a relocation mortgage.

The government-sponsored enterprise's Primary Mortgage Market Survey showed that the average 30-year fixed-rate mortgage declined to 3.56 percent from the previous week's figure of 3.62 percent. In addition, the 15-year FRM declined to 2.86 percent from the previous statistic of 2.89 percent. Both figures were the lowest-ever levels recorded by Freddie Mac.

"Only 80,000 net new jobs were added to the economy last month, not enough to lower the unemployment rate from 8.2 percent," said Frank Nothaft, vice president and chief economist for Freddie Mac.

Continued issues with the economy may trigger the Federal Reserve to make significant adjustments to the economy. In part because of the European debt crisis, the Federal Reserve lowered the economic growth forecast to 1.9 percent.

If the Federal Reserve takes action on the economy, it could significantly alter interest rates, and companies involved in a corporate relocation process should keep this in mind when helping transferees look for a new residence.

Filed under: Mortgage Services | No Comments »

Transferees looking for a new home as part of a corporate relocation initiative may find an added affordability incentive attached to it, as a report from Freddie Mac explained that mortgage rates continue to decline to record-low levels.

The government-sponsored enterprise’s Primary Mortgage Market Survey for the week ending July 5 showed that 30-year fixed-rate mortgages averaged 3.62 percent, which was the 10th time in 11 weeks when it hit or surpassed its lowest-ever level. That figure was 3.66 percent during the previous week. The 15-year FRM averaged 2.89 percent for that week, which was slightly lower than the previous figure of 2.94 percent.

“Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week and allowed fixed mortgage rates to hit new all-time record lows,” said Frank Nothaft, vice president and chief economist for Freddie Mac.

Rates are far lower than they were even one year previously. During the same week in 2011, 30-year fixed-rate loans averaged 4.6 percent.

Filed under: Mortgage Services | No Comments »

The Federal Housing Administration recently stopped its implementation of new mortgage rules that would have hurt the chances of many borrowers from receiving mortgages with affordable terms, which could simplify corporate relocation efforts for transferees with credit disputes.

The changes were initially intended to begin at the beginning of July, and would have impacted any borrower looking for a mortgage with a low down payment that had collections or billing issues in dispute with their credit file. Any person with at least $1,000 in dispute would have been at a disadvantage when looking for FHA loan approvals.

The rules could have made a significant impact for some consumers, as up to a third of FHA borrowers may have some balances in dispute. Were the rules maintained, they would have had to settle the disputes before being considered for approval, even if they weren't considered a risky borrower.

This may aid businesses looking for a solution to a transferee's housing issues, as not every employee has pristine credit. FHA loans generally don't require a large down payment, which can he very helpful for first-time buyers or many others.

Filed under: Mortgage Services | No Comments »

The National Association of Realtors released new findings which explained that existing-home sales in the U.S. slipped in May when compared to April, but were still strong year-over-year.

Total sales for existing homes dropped 1.5 percent in May to a yearly rate of 4.55 million. April’s rate was 4.62 million. However, May’s statistic was still 9.6 percent higher than the same point in 2011, which had a rate of 4.15 million.

In addition to the year-over-year sales gain, home prices improved significantly during that same period. The median existing-home price improved to $182,600 in May, which was a 7.9 percent gain.

Further reason that those buying and selling due to corporate relocation plans could benefit at the moment is the fact that mortgage rates are still near record-low levels, which has boosted affordability. Freddie Mac revealed in its Primary Mortgage Market Survey for the week ending June 21 that 30-year fixed-rate mortgages averaged 3.66 percent, which was a drop from the previous week’s figure of 3.71 percent.

Filed under: Mortgage Services | No Comments »

The National Association of Home Builders released a report which showed that while the number of metropolitan statistical areas has declined, the market has still witnessed some strengthening, as many new areas have experienced significant gains.

The findings in the firm's Improving Markets Index may signal that many major cities in the United States could be good places for corporate relocation.

The report showed that 80 MSAs were considered to be improving during June, which was a decline from May's figure of 100. However, the statistics showed that 28 new cities newly joined the list, while 30 different states and Washington, D.C., were represented. In order for an MSA to be considered for the index, it needs to have six straight months of improvement in home prices, employment growth and housing permit purchases.

"The volatility of this index mirrors the uncertain economic conditions in some of our nation's individual markets," said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. "The fact remains, however, that real estate fundamentals are still improving in many areas across the country."

With so many areas of the country recovering, it may be easier for companies to shift their employees to new destinations due to affordability and availability of homes.

Filed under: Mortgage Services | No Comments »

A report from Freddie Mac revealed that fixed-rate mortgage rates again declined to new-record lows, driving home affordability even higher for those in the midst of a corporate relocation process.

The government-sponsored enterprise's Primary Mortgage Market Survey for the week ending June 7 showed that the 30-year fixed-rate mortgage averaged 3.67 percent. This was markedly lower than the previous week's average of 3.75 percent. The average for 15-year loans also experienced a drop, as it fell to 2.94 percent from the previous figure of 2.97 percent.

"Fixed mortgage rates reached new record lows for the sixth consecutive week as long-term Treasury bond yields declined further following downwardly revised economic growth and job creation data," said Frank Nothaft, vice president and chief economist for Freddie Mac.

Employees may be able to find better deals for homes with the record-low mortgage rates, despite home prices rising again in many parts of the country. This is because the long-term affordability can have a more positive effect on employee finances if they take advantage of these rates before they rise again.

Filed under: Mortgage Services | No Comments »

Lender Processing Services reports foreclosure starts declined in April, but the same statistic for loans backed by the Federal Housing Administration increased markedly which could impact affordability for those trying to relocate.

Total foreclosure starts dropped 2.6 percent in April, but those homes under the FHA umbrella witnessed foreclosure starts spike 73 percent, the report explained. However, many of these actions were due to loans from 2008 and 2009, which was the depth of the recession.

"In 2008, when the loan origination market virtually dried up, the FHA stepped in to fill the void," said Herb Blecher, senior vice president for LPS Applied Analytics. "FHA originations tripled that year, and increased to five times historical averages in 2009."

The report added that total volume for foreclosure sales is approximately one-third of all foreclosure starts. Total sales dropped 2.6 percent in April when compared to March.

While still-elevated levels of foreclosures in parts of the U.S. may reveal that recovery still has a long way to go, foreclosures may increase affordability for companies and employees looking to complete the corporate relocation process. This is because these homes are typically sold at a significant discount.

Filed under: Mortgage Services | No Comments »

Companies relocating employees may want to ensure their workers can find reasonable and stable housing situations. A report from CoreLogic showed that home prices throughout the United States increased year-over-year during April.

The latest edition of the firm's Home Price Index revealed that in April, home prices rose 1.1 percent when compared to the same point in 2011, when including distressed sales. This was the first time two straight months experienced increases since June 2010. When looking at month-over-month statistics, prices rose 2.2 percent in April. This rise was the second straight improvement.

"We see the consistent month-over-month increases within our HPI and Pending HPI as one sign that the housing market is stabilizing," said Anand Nallathambi, president and CEO of CoreLogic. "Home prices are responding to a restricted supply that will likely exist for some time to come – an optimistic sign for the future of our industry."

Continued home price increases in the U.S. may make companies look more confidently at global relocation options, as the housing market's recovery could be picking up speed.

Filed under: Mortgage Services | No Comments »