Surprise: U.S. Home Ownership Rate Increases — Slightly

The U.S. homeownership rate rose unexpectedly in the third quarter from 2Q as rental vacancies climbed — with new evidence suggesting that tenants are tiring of rising rents.

But overall, the home ownership rate is still down 0.6 percentage points compared to the same quarter a year ago.

The Census Bureau reported Wednesday that the homeownership rate rose to 66.3% in the third quarter from 65.9% in 2Q. The 65.9% rate marked the lowest reading since the second quarter of 1998.

Most of the increase in the third quarter homeownership rate can be traced to a bump up in black and Hispanic ownership. Homeownership rates among whites rose only 0.1% in the third quarter to 73.8% — a level last seen in 2000.

The U.S. homeownership rate has declined nearly 3 full percentage points since it peaked at 69.2% in 2004.  A one-percent drop in the rate means that 1.1 million households no longer own a home.

Wednesday’s report also shows the rental vacancy rate rose 0.6 percentage points from the second quarter to 9.8% in the third. The increase in vacancies may signal that tenants are getting tired of the rising cost of renting as home prices fall and become more enticing. 

The median asking price for a vacant house for sale was $136,700 in the third quarter, compared to $141,800 a year ago.

Roughly 1.86 million vacant single-family homes were for sale as of Sept. 30, down 4.5% from a year ago.

Daily Briefing | Wednesday, November 2, 2011

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    The government owned Ally Financial posted a $210 million loss in the third quarter, dragged down by a $471 million pre-tax charge tied to its mortgage servicing rights.

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    Delinquency rates on securitized commercial mortgages continued to creep up in October with CMBS issuance slowing to a halt.

  • Mobsters Indicted for Extorting Texas Mortgage Company

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  • CoreLogic Develops Mortgage Fraud Prevention and Detection Guide

    CoreLogic is now offering financial and government institutions a tool that provides them information in order to combat mortgage fraud.

  • Refinancings Cause PHH Writedown of MSRs

    The refinance boom of the third quarter both helped and hurt earnings at PHH Corp., Mt. Laurel, N.J. The company reported a net loss of $148 million during the period due to a $361 million write-down of mortgage servicing rights values.

  • MBA: New Applications Show Weak Growth

    New residential loan applications grew fractionally for the week ending October 28, despite continued rock bottom interest rates, according to figures compiled by the Mortgage Bankers Association.

  • LPS: Foreclosures in Judicial States at 761 Days

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  • Credit Suisse Plans to Exit CMBS Origination, Downsize Some ABS Businesses

    Because of still challenging market-making conditions, Credit Suisse Group is set to either downsize or cut altogether some securitization businesses and fixed-income units.

  • SP: 60% of European CMBS Loans Could Fail To Repay By End 2012

    Nearly two-thirds – or 60% – of European CMBS maturing loans could fail to repay by the end of 2012, according to Standard Poor’s.

  • N.Y. Court Rejects Countrywide Consolidation Motion

    The New York Supreme Court late Monday denied Countrywide and Bank of America’s motion to consolidate various claims against them made by four bond insurers led by MBIA Insurance Corp.

  • Idaho Housing Agency Weighs Financial Fix as Moody’s Extends Review

    Moody’s Investors Service has extended the review period for a possible downgrade of $871 million of outstanding bonds sold by the Idaho Housing and Finance Association while the issuer works on a plan to shore up its balance sheet.

Article source: http://www.nationalmortgagenews.com/dailybriefing/2010_467/us-home-ownership-rate-increases-1027269-1.html

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