After the Fires: Summary October 22-28

I apologize for not blogging the latest news last week. As I was getting started, I was notified of brush fires in Santa Clarita, where I have majority of my clients. I spent Sunday through Tuesday calling current and past clients and assisting them as needed. Many were evacuated, but thankfully no one had major fire damage through the Buckweed, Ridge, Magic, Soledad Fires (there’s one fire name I forgot that started in Newhall), and my homes and I are fine as well.

I hope those of you in Southern California are safe, with minimal effects from the wildfires.

This week’s news:
The Federal Reserve meets this coming week. Expected to drop the Discount Rate by 1/4 point on October 31. May drop the Federal Funds Rate by the same or keep it steady.

Home sales decreased 38.9 percent in September in California compared with the same period a year ago, while the median price of an existing home fell 4.7 percent, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported October 24.

California stands to lose $23.6 billion in housing wealth if real estate prices continue to decline, and foreclosures rise, according to a study released by the Senate Joint Economic Committee. San Francisco Chronicle, 10/26.

Bank of America Corp. plans to discontinue offering home mortgages by Jan. 1, and slash an additional 700 jobs on top of the 3,000 job cuts announced earlier this week. Reuters, 10/26
The Commerce Dept. reported Thursday sales of new homes rose 4.8 percent in September, yet remain 23.3 percent below sales for the same period a year ago. CAR 10/24

Countrywide Financial Corp. plans to begin offering borrowers refinancing or modifications on $16 billion in loans with interest rates scheduled to reset next year. AP, 10/23

The country’s second-largest independent mortgage lender, Residential Capital LLC, a GMAC Financial Services subsidiary, plans to cut 3,000 jobs to address the housing freeze. Reuters, 10/17.

2 million empty homes: Number of vacant homes on the market nationwide equivalent to all homes in Detroit; another sign of weak housing market. CNNMoney, 10/28

Countrywide joins with Neighborhood Assistance Corporation of America (NACA), a gadfly/community advocacy group that has been its arch-enemy for years, to help borrowers with a new bailout program to prevent foreclosures.

Oct 25: Census Bureau says the pace of new home sales was weaker in September and revises August's numbers to an 11-year low. CNNMoney, 10/25

Mortgage Rates Fall: Fixed 30-year rate slips to 6.33% on market worries of a slowing economy, a weekly report shows, CNNMoney, 10/27.

Existing-home sales declined 8 percent in September, stemming from problems in credit availability, according to NAR's latest research. NAR, 10/26.