According to the Los Angeles Times, closing costs–the fees associated with closing a transaction, most notably title insurance, document fees and applicable taxes–across the nation have been going down in price. Usually, if not always, closing costs are in correlation with a sales price, so this news may not shock our readers as we’ve all seen prices coming down over the year.  That said, the LA Times article notes that despite comparisons of similarly priced homes, the cost to close is still dropping.  Yet another perk to buying in a distressed market.

Nationwide, the average closing fees on a $200,000 mortgage, with 20% down and a 30-year fixed-rate loan, totaled $2,732, down from $3,118 in 2008, the study found. Closing costs for home buyers haven’t been this low since 2007, the survey said.

Average U.S. closing costs fall; San Francisco grabs the No. 4 spot [LA Times]

According to CNN Money today:

The median home price plunged a record 15.6% during the second quarter, versus a year earlier, according to a report from the National Association of Realtors.

But on a more upbeat note, the median home price rose 4% in the quarter versus the first quarter of 2009, rising to $174,100 from $167,300.

Stocks sustain gains after Fed [CNN Money]

From the Housing and Urban Development Website:

WASHINGTON - U.S. Department of Housing and Urban Development Secretary Shaun Donovan today announced the Federal Housing Administration (FHA) has implemented changes to its loan modification program to ensure consistency with the Obama Administration’s Home Affordable Modification Program. By August 15, FHA borrowers will be able to significantly reduce their monthly mortgage payments by seeking a loan modification through their current mortgage company or loan servicer under the new FHA-Home Affordable Modification Program (FHA-HAMP).

“Today, we’re bringing another important tool to the table to help struggling families who are desperate to keep their homes,” said Donovan. “Tens of thousands of FHA borrowers will now be able to modify their mortgages in the same manner as so many others who are taking advantage of the Administration’’s Making Home Affordable program. This is just the latest tool we are providing to help homeowners prevent foreclosures through the Making Home Affordable program. Earlier this month we announced an expansion of the Home Affordable Refinance Program to borrowers who are up to 125 percent underwater. Together, these actions will significantly increase the help available to homeowners.”

The Helping Families Save Their Homes Act of 2009, signed into law on May 20, allows FHA to give qualified FHA-insured borrowers the opportunity to reduce their monthly mortgage payment by modifying the mortgage through FHA-HAMP. FHA released the program’s implementation guidelines today. FHA expects all servicers to implement the changes by August 15. The program permanently reduces a family’s monthly mortgage payment through the use of a partial claim, which defers the repayment of mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off.

(more…)

According to Bloomberg.com:

Delinquency rates on the least-risky mortgages more than doubled in the first quarter from a year earlier as U.S. efforts to help homeowners failed to keep pace with job losses that pushed more borrowers toward foreclosure.

Prime mortgages 60 days or more past due climbed to 2.9 percent of such loans through March 31 from 1.1 percent at the same point in 2008.

For all those investors out there, perhaps it’s time you snatch up some of these distressed properties?  Take a look here to see what’s available and Analyze.

Delinquencies Double on Least-Risky Loans, U.S. Says [Bloomberg]
Property Search [eRealInvestor.com]

Some would argue that the housing “crises” started in conjunction with the bank collapses last September.  Buyers got wary and held off on purchases, listings sat on the market for lenghts of time not seen in years and got stale.  The banks that didn’t fold were afraid to lend money and the Federal Reserve was siezing financial instutions that were teetering!  Yikes, it got messy for a moment.  There are solid arguments being presented on both sides of the “have we hit bottom yet?” conundrum, but it’s clear that some markets are looking more attractive than others to home buyers and investors.  Yahoo Real Estate recently reported that:

home price declines have sent affordability soaring. Prices have fallen so far that the average U.S. home is now undervalued by 12.2%, according to a new report from IHS Global Insight.

Atlantic City, New Jersey was ranked as the number one most overvalued city in the nation as it has listings like these on the market.  We’ll take a closer look at the most undervaled city as ranked by IHS Global Insight Vero Beach, Florida in our next post. 

Most Overvalued and Undervalued Housing Markets [ Yahoo Real Estate]
Most over- and under-valued housing markets [CNN Money]