Market Studies

A new report from Ellie Mae shows credit standards ended 2013 at their lowest level all year. The company found that by December, criteria for first-lien mortgages had relaxed considerably, with the average FICO score at 727, loan-to-value ratios averaging 82 percent, and debt-to-income ratios at a yearly high of 39 percent. The company also found that loans originated in December took an average of 43 days to close, down from 55 days a year earlier.

Single-family and condominium sales in California closed 2013 on a cautiously positive note, even though overall sales were down notably from the year prior, according to the latest quarterly market report from PropertyRadar. December sales in the Golden State's home and condo market grew 1.4 percent over November 2013 sales, but were down nearly 20 percent from December 2012. Overall, last year’s property sales finished the year at their lowest level since 2007.

December's discouraging jobs report caused mortgage rates to pull back once again this week. Freddie Mac's weekly Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage falling 10 basis points to an average rate of 4.41 percent. Similarly, the 15-year rate fell 9 basis points. Bankrate also reported declines, with both the 30-year and 15-year average fixed-rates down 7 basis points to 4.57 percent and 3.62 percent, respectively.

January has been a busy month for Stewart. Two key executives have been lauded for their accomplishments, and the company has added another power hitter to the team. Stewart Information Services Corp.'s chief economist Dr. Ted C. Jones has been recognized in the 2013 Swanepoel Power 200 list.

It stands to reason that if real estate professionals believe homeownership is a good idea, then they would practice what they preach and own their own homes instead of renting. But do they? Trulia's chief economist, Jed Kolko, has crunched the numbers from Census data between 2007 and 2012, and it turns out, the answer is a resounding """"yes.""""

Currently, the markets with the greatest home price gains are those that are recovering from steep declines during the recession. However, this is likely to change over the coming year with employment playing a larger role in price movement across the country, according to Trulia. On the other hand, the company's data demonstrates an alignment of rising rents and rising employment rates.

Freddie Mac's Primary Mortgage Market Survey showed little movement among fixed rates for the week ending January 9, with the 30-year fixed-rate mortgage averaging 4.51 percent, down from 4.53 percent last week. A year ago, the 30-year rate was recorded at 3.40 percent. """"Mortgage rates were little changed amid a week of light economic reports,"""" said Frank Nothaft, VP and chief economist at Freddie Mac.

Investors increased activity in the housing market in November, particularly upping their non-distressed purchases, according to a recent industry report. After a near-record 23 percent of home purchases were made by investors in early 2013, investor share in the purchase market dropped to 16.6 percent in August but was back up to 18.8 percent by November.

Homebuyer interest diminished in December across the 22 markets served by Redfin, the company reported. """"While it is normal for homebuyer activity to fall during the holiday season, the worsening shortage of homes for sale in December was likely a key factor in the sharper-than-expected drop in demand,"""" said Redfin analyst Ellen Haberle.

CoreLogic's Home Price Index (HPI) improved year-on-year for the 21st straight month in November, setting 2013 up to be the best year for home price gains since before the crash. According to the company's index, home prices nationwide (including distressed sales) increased 11.8 percent in November compared to the year prior. CoreLogic forecasts an 11.5 percent increase for December.