DS News - Digital Archives

get back into the market next month, or whether the housing market will mirror the cooling temperatures of summer to fall." Zillow Cites Evidence of Housing Recovery Accelerating After a somewhat slow first quarter, the national housing recovery took the pace up a few notches in Q2, Zillow reported. According to the Seattle-based company, the U.S. Zillow Home Value Index (HVI) rose to $161,100 as of the end of June, up 2.4 percent quarter-overquarter and 5.8 percent year-over-year. The second quarter's increase was the largest annual gain since August 2006 and the largest quarterly gain since the fourth quarter of 2005. National home values rose only 0.25 percent during the first quarter. While home value appreciation accelerated in Q2, it also spread to more areas across the country, reaching markets in the Northeast, Midwest, and Southwest that previously had trouble keeping pace. All of the top 30 largest metros covered by Zillow saw annual appreciation as of the end of the second quarter, and Zillow believes all are coming back from their respective troughs. Metros with the largest annual gains in Q2 included Sacramento (29.5 percent), Las Vegas (29.4 percent), and San Francisco (25.5 percent). While some areas—particularly those where annual appreciation is approaching 30 percent—may seem like they're experiencing a bubble, Zillow senior economist Svenja Gudell says that kind of market behavior won't last. "Investors are starting to pull out of some markets and regular buyers are coming back, and more inventory is slowly but surely coming on line, both of which will contribute to slowdowns in appreciation," Gudell explained. "Additionally, in some overheated markets, rapid home value increases coupled with rising mortgage rates will lead to housing prices and financing costs outpacing local income growth, which will also contribute to a moderation of the market." During the next 12 months, Zillow expects home values to rise another 5 percent. Of the 30 largest markets, 29 are expected to see appreciation, with New York being the only exception. In the rental market, national rents fell quarter-over-quarter by 0.5 percent to $1,282—the first quarterly decline after nine consecutive quarters of increasing or flat rental rates. Year-over-year, national rents were up 1.6 percent as of the end of the second quarter. 142 IN THE NEWS West Virginia rank: 34 90+ Day Delinquency Rate Foreclosure Rate June 2013 2.1% Unemployment Rate 1.4% 6.1% year ago 2.4% 2.1% 7.5% year-over-year change -11.7% -34.3% -18.7% Top County Wyoming CounTy 90+ Day Delinquency Rate Foreclosure Rate June 2013 2.9% 4.0% year ago 3.3% 3.0% year-over-year change -12.4% 31.2% Top Core-Based Statistical Area HunTingTon-ASHlAnd, WV-Ky-oH 90+ Day Foreclosure Delinquency Rate Rate June 2013 2.1% 2.6% year ago 2.0% 2.0% year-over-year change 3.9% 32.8% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the June 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary June 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. Wisconsin rank: 26 90+ Day Delinquency Rate Foreclosure Rate June 2013 2.4% Unemployment Rate 2.3% 6.8% year ago 2.7% 3.4% 7.0% year-over-year change -10.7% -32.7% -2.9% Top County MarqueTTe CounTy 90+ Day Delinquency Rate Foreclosure Rate June 2013 2.0% 4.2% year ago 2.3% 3.5% year-over-year change -12.4% 20.0% Top Core-Based Statistical area MenoMonie, Wi 90+ Day Delinquency Rate Foreclosure Rate June 2013 2.5% 3.3% year ago 2.5% 4.2% year-over-year change 1.2% -22.9% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the June 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary June 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Applied Analytics. MGIC Simplifies Mortgage Insurance Application Process In an effort to streamline the mortgage insurance application process, Mortgage Guaranty Insurance Corporation (MGIC) introduced several changes to its underwriting guidelines. The company's new MGIC Go! guidelines apply to both primary residence and second home loans that receive and are processed according to a Desktop Underwriter (DU) Approve/Eligible or Loan Prospector (LP) Accept/Eligible response. Loans must meet several other overlays to be eligible: They must have a maximum loanto-value ratio of 97 percent (or a 105 percent combined ratio), a minimum credit score of 620, and a maximum cash out of $150,000. A few types of loans are ineligible under the new MGIC Go! guidelines, including investment properties, three- to four-unit properties, and condos and co-ops listed on MGIC's Ineligible Products List, among others. "MGIC has been unwavering in our goal to help support a robust mortgage market with a focus on sustainable homeownership," said Sal Miosi, VP of marketing at Milwaukee, Wisconsin-based MGIC. "We believe that these significant changes to our MGIC Go! guidelines stays true to that mission while making the process of applying for MI [mortgage insurance] simpler." Gateway Mortgage Partners with Fiserv to Meet Technology Needs Gateway Mortgage has selected Fiserv's LoanServ platform to handle its mortgage servicing technology needs, Wisconsin-based Fiserv announced. "We are delighted to partner with Gateway as it gears up to take advantage of the increase in activity in the secondary market," said Kevin Collins, president of lending solutions at Fiserv. "Its selection of LoanServ demonstrates the diverse capabilities of the lending solutions Fiserv has to offer, including the flexibility required by an entrepreneurial company such as Gateway Mortgage Group."

• Cover