Lake Tahoe Home Loans and Lake Tahoe Mortgage Loan Rates and Incline Village Mortgage Loan Rates and Incline Village Home Loans:
The housing sector took another hit this morning and comes after last Friday’s weak numbers from New Home sales. The National Association of Realtors reported that Pending Home Sales in July fell by 1.3% due in part to the rise in home loan rates and seasonal factors. However, sales are up 6.7% from last year this time. Pending Home Sales are signed contracts that have not yet closed.
The recent rise in home loan rates have also put a crimp in mortgage applications. The Mortgage Bankers Association reported that its Market Composite Index, a measure of loan application volume, fell by 2.5% in the latest week. The refinance index continues to decline down 5.4%. However, the purchase index was up 2%.
The Federal Housing Finance Agency (FHFA) is seeking $6 billion from banking giant JPMorgan Chase over sour subprime mortgages that were sent to Fannie Mae and Freddie Mac, and subsequently packaged and sold to investors. The FHFA is arguing that the underlying mortgages did not meet investors criteria and as the borrowers fell behind on their mortgage payments, the price of the Bonds fell rapidly. The mortgages were originally sold by Washington Mutual and Bear Stearns, which were taken over by JPMorgan with the government’s encouragement.