April Housing Scorecard

The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the April edition of the Obama Administration's Housing Scorecard – a comprehensive report on the nation’s housing market. The latest data show important progress across many key indicators—as home values continue to rise and home sales remained strong in April—although officials caution that the overall recovery remains fragile.The full Housing Scorecard is available online at www.hud.gov/scorecard.

“The Obama Administration’s efforts to speed the housing recovery are showing continued progress as the April scorecard indicators highlight ongoing improvements throughout the housing market,” said HUD Deputy Assistant Secretary for Economic Affairs Kurt Usowski. “The annual increase in home prices is the highest in nearly seven years and sales of existing and new homes are both up over 10 percent from one year ago. But with so many households still struggling to make ends meet, we have important work ahead.”

“The Administration’s programs have improved outcomes for homeowners by setting new standards for mortgage assistance and putting into place unprecedented consumer protections,” said Treasury Assistant Secretary for Financial Stability Tim Massad. “HAMP continues to offer struggling families meaningful relief to avoid foreclosure and strengthen local communities.”

The April Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

The Administration's foreclosure mitigation programs are providing relief for millions of homeowners as we continue to recover from an unprecedented housing crisis.  Nearly 1.6 million homeowner assistance actions have taken place through the Making Home Affordable Program, including more than 1.1 million permanent modifications through the Home Affordable Modification Program (HAMP), while the Federal Housing Administration (FHA) has offered more than 1.7 million loss mitigation and early delinquency interventions. The Administration's programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than 3.5 million proprietary mortgage modifications through February.

Homeowners in HAMP continue to benefit from deep payment relief, helping them sustain their mortgage payments over time.  As of March, more than 1.1 million homeowners have received a permanent modification through the Home Affordable Modification Program (HAMP), saving approximately $546 on their mortgage payments each month, and an estimated $19.1 billion to date. Eighty-seven percent of homeowners starting the program in the past two and a half years have received a permanent modification of their mortgage through HAMP.  Payment relief is strongly correlated to sustainability of modified payments over time.  As a result, HAMP modifications continue to exhibit lower delinquency and re-default rates than industry modifications as reported by the Office of the Comptroller of the Currency.  View the Making Home Affordable Program Report with data through March 2013.

Also featured this month in the Administration’s Housing Scorecard is a regional spotlight on market strength in the New York metropolitan area. The foreclosure crisis in the Metropolitan area developed later and differently than in other areas of the nation. While home price appreciation during the housing bubble progressed more rapidly than it did nationally, home prices in the region did not fall as sharply.  

“The New York housing market is seeing the same signs of greater stability that the national data show for the broader housing market,” said Usowski. “As this Regional Spotlight reports, the Administration’s efforts have helped nearly 231,600 New York metropolitan area households avoid foreclosure. A strong local economic recovery is underway despite the impact of Hurricane Sandy, but we have much more to do to reach the many households who still face trouble and to help the New York market recover more broadly.”

The Housing Scorecard Regional Spotlight features data on the health of the New York metropolitan housing market and impact of efforts to help homeowners at the local level, as well as a summary of the added impacts on the local housing market from the devastation brought by Hurricane Sandy including:

Economic and housing market conditions in the New York metropolitan area are improving. The unemployment rate for the region peaked at 9.3 percent in February 2010 and has since fallen to 8.4 percent as of March 2013.Although the share of distressed mortgages remains high, the foreclosure completion rate has remained well below the national rate. 

The Administration’s Hardest Hit Fund and Neighborhood Stabilization Programs have fueled local foreclosure prevention efforts and market stability, while nearly231,600 households have received mortgage modifications, many directly through Administration programs. Treasury provided $300 million to the State of New Jersey to provide assistance to struggling homeowners through the Hardest Hit Fund. The number of homeowners benefitting from the program has continued to increase due to growing demand.Moreover, approximately $110 million has been awarded to the New York metropolitan region through HUD’s Neighborhood Stabilization Program to help purchase or redevelop residential properties and address the effects of abandoned and foreclosed housing. Both programs have helped provide increased stability to the New York housing market.

While the impacts of Hurricane Sandy on individual homeowners and affected communities were devastating, the overall economic impacts on the job market and employment in the region show an immediate spike in initial jobless claims and a drop in total employment after the storm, both of which rebounded quickly. Total employment in the New York metropolitan area, which fell by 32,000 jobs in November, increased by 53,200 in December to exceed total employment just before the storm.  *

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A Better Jobs Report Makes for Better Interest Rates

After declining for seven straight weeks, mortgage rates moved higher following better than expected news about jobs, with the benchmark 30-year fixed mortgage rate increasing to 3.6 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.31 discount and origination points.

The average 15-year fixed mortgage jumped to 2.82 percent, while the larger jumbo 30-year fixed mortgage rate settled at the 4 percent mark. Adjustable rate mortgages were mostly higher, with the 5-year nosing higher to 2.64 percent and the 10-year ARM climbing to 3.2 percent. 

Mortgage rates had fallen for seven consecutive weeks, to levels that were at, or near, record lows. But the April jobs report was better than expected and helped sway sentiment about the economy. Both bond yields and mortgage rates increased, as mortgage rates are closely related to yields on long-term government bonds. So much of the economy's health is gauged by job growth, and this month's report came on the heels of a lousy March jobs report and some other soft economic data in recent weeks. In particular, the number of new jobs was revised upward for each of the two previous months.

The last time mortgage rates were above 5 percent was Apr. 2011. At the time, the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate currently at 3.6 percent, the monthly payment for the same size loan would be $909.29, a difference of $173 per month for anyone refinancing now.

SURVEY RESULTS
30-year fixed: 3.60% -- up from 3.52% last week (avg. points: 0.31)
15-year fixed: 2.82% -- up from 2.75% last week (avg. points: 0.31)
5/1 ARM: 2.64% -- up from 2.63% last week (avg. points: 0.23)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For a full analysis of this week's move in mortgage rates, go to www.bankrate.com

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Just more than half of respondents don't expect much change in mortgage rates over the coming week, with 54 percent forecasting that mortgage rates will remain more or less unchanged. The remainder were evenly split between predicting an increase (23 percent) and predicting a decline (23 percent).**

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In Senior News, Hospital Data Reveals Massive Price Swings Nationwide

Receiving the same treatment at two different hospitals might not necessarily be a difference in quality of care, but rather thousands of dollars in extra costs, according to a new report from the Centers for Medicare & Medicaid Services (CMS).

Collecting data from more than 3,000 U.S. hospitals that receive payment from the Medicare Inpatient Prospective Payment System (IPPS), CMS reveals how much hospitals were billing Medicare in Fiscal Year 2011 for commonly billed procedures.

“Currently, consumer don’t know what a hospital is charging them or their insurance company for a given procedure,” said Health and Human Services Secretary Kathleen Sebelius. “This data and new data centers will help fill that gap.”

Since hospitals determine what they will charge for items and services provided to patients, the costs vary among local and national markets.

More northern states such as Idaho, Montana and North Dakota tended to have lower costs on average, whereas California, Florida and Texas were among the states with the costliest care.

In Idaho, the average cost of treating heart failure in 2011 was $22,146, while in California it cost on average $70,964.

For the same treatment, Florida hospitals charged an average of $46,182, while in Texas the cost was $46,268. 

While the average cost of similar treatments might vary from  one state to the next, CMS found large price swings among local markets.

“There’s tremendous variation between hospitals,” said CMS Deputy Medicare Administrator Jordan Blum in a Washington Post article. “Geography doesn’t seem to explain it.”

The cost of treating heart failure in Idaho was as little as $13,960 on the low end, with the highest billed treatment totaling $75,197. 

In California, heart failure treatment was slightly higher than the state’s average at $75,197, however, the cost of care was as low as $13,960.

The report from CMS is part of a larger initiative of the Obama Administration’s efforts to make the nation’s health care system more affordable and accountable.

“Transformation of the health care delivery system cannot occur without greater price transparency,” said Risa Lavizzo-Mourey, M.D. and president of the Robert Wood Johnson Foundation.

While more work lies ahead, says Lavizzo-Mourey, the release of such data can allow for further examination on the variations in hospital charges.***

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 COMPANY NEWS:

Events (2013)

·         Gill Group plans to addend NCSHA’s Annual Housing Credit Conference June 24^th – 27^th in San Francisco, CA.

o        Cash Gill will be speaking on Changes and Challenges in Affordable Housing Development

·         Cash Gill plans to attend the Missouri Real Estate Appraiser Commission Quarterly Meeting June 18^th – 20^th in Jefferson City, MO.

·         Gill Group plans to addend Southern Bank’s Annual Golf Retreat June 12^th – 14^th in Muscle Shoals, AL.

·         Gill Group plans to addend the joint Energy Conference with Enterprise and HUD May 28^th – 30^th in Panama City Beach, FL.

o        Cash Gill, Tracy Simons and Pete Gierer from Gill Group will be leading the RAD panel for Green Solutions

·         Gill Group plans to addend NH&RA’s Spring Developers Forum May 7th – 8^th in Marina del Ray, CA.

·         Gill Group plans to addend the Missouri Appraisers Advisory Council Annual Conference April 12^th – 13^th in Lake Ozark, MO.

·         Gill Group attended the PEAK Leadership Conference March 18^th – 20^th in Washington, DC.

·         Gill Group attended MACO Development’s Annual Retreat March 14^th – 17^th in Biloxi, MS.

·         Cash Gill attended the Missouri Real Estate Appraiser Commission Quarterly Meeting March 12^th – 14^th in Jefferson City, MO.

·         Gill Group attended National Housing and Rehabilitation’s Annual Meeting March 5^th – 9^th in Miami, FL.

·         Gill Group attended Bank of Advance’s Annual Retreat February 1^st – March 3^rd in Norfork, AR.

·         Gill Group attended the Council of Affordable Rural Housing’s Mid-Year Meeting January 28^th – 30^th in Key Largo, FL.

o        Cash Gill spoke on a panel the morning of January 29^th: How National Appraisal Practices Impact USDA Assisted Properties

·         Gill Group attended National Multi Housing Council’s Annual Meeting January 22^nd – 24^th in Palm Springs, CA.

Events (2012)

·         Gill Group attended 20 conferences throughout the United States in 2012

GROWTH (2012 - Highlights):

·         Gill Group developed cutting-edge market analysis software that will allow us to do preliminary analysis that is subject-specific in any market in the United States within minutes.  

·         Gill Group added 11 offices with appraisers, market analysts, engineers and architects.

o        The offices now employ an additional 34 people.

·         Gill Group expanded coverage of its subsidiary, National Title & Escrow, to cover the entire United States.

·         Gill Group expanded coverage of its subsidiary, Gill Insurance Group, to cover the entire United States.

Events (2011)

·         Gill Group attended 25 conferences throughout the United States in 2011

GROWTH (2011 - Highlights):

·         Gill Group doubled the number of MAIs on staff.

·         Gill Group added 50 market analysts, engineers, architects, appraisers and support staff members in six of our offices across the country.

  Gill Group has published the following:

·         New York Real Estate Journal - How can low-income housing facilities translate into high profits?

·         New York Real Estate Journal - Up, up and away: Home mortgage interest rates and gasoline prices continue ascending.

·         Tax Credit Advisor - Boston MSA Market Snapshot

·         Tax Credit Advisor - Seattle MSA Market Snapshot

·         Northeast Industrial Development Resource Guide - What Appraisers Know About Investing.

·         Affordable Housing Finance – Urban and Rural Market Studies.

Cash Gill, MAI has had the opportunity to speak on the following topics:

·         (Indianapolis, IN) National Council of Affordable Housing Market Analysts - Maximize Your Market: Understanding the Methodology Behind Market Studies.

·         (Reno, NV) Nevada Council of Affordable and Rural Housing - Don't Get Caught in the Red. New Guidelines for Audits and Inspections.

·         (Washington, DC) The Institute for Professional and Executive Development - Nonrecourse HUD Deals - So You Closed Your Nonrecourse HUD Deal. Now What? And Is It Really Nonrecourse?

·         (Arlington, VA) Council for Affordable and Rural Housing - Property Valuation: The Correct Way to Value Properties.

·         (New Orleans, LA) National Council of Affordable Housing Market Analysts - Affordable Housing Site Analysis

·         (Las Vegas, NV) Nevada Council of Affordable and Rural Housing - Auditing and Accounting Guidelines for Section 42 Low Income Housing Tax Credits.

·         (Washington, DC) Council for Affordable and Rural Housing - Rural Development Appraisals and Market Studies

·         (Miami, FL) Council for Affordable and Rural Housing - The Equity Market - Impact on Rural Housing

·         (Washington, DC) Council for Affordable and Rural Housing - How to Foster Affordable Green and Rural Housing Needs Assessments

·         (Indianapolis, IN) Affordable Housing Association of Indiana - Market Analysis – Best Ways Use Market Studies to Ensure Application Points

·         (Portland, ME) Enterprise Buyer/Seller Conference for RRH 515 Properties – Valuing the Product. What Is My Development Worth?

·         (Washington, DC) National Housing and Rehabilitation Association – Financing and Underwriting Special Needs Housing.

·         (Atlanta, GA) National Council of State Housing Agencies – Comprehensive Market Analysis.

·         (Chicago, IL) AHF Live – Strategies for Rural Deals.

·         (Dallas, TX) Crittenden Multifamily – Financing Special Use Properties.

·         (Washington, DC) Council for Affordable Rural Housing – Rural Housing Preservation

·         (Denver, CO) National Council of State Housing Agencies – Rural Housing Strategies

·         (Denver, CO) National Council of State Housing Agencies – Y15: Preservation and Disposition Seminar

·         (San Antonio, TX) Rural Rental Housing Association – LIHTC Legislative Update

·         (Key Largo, FL) Council for Affordable Rural Housing – How National Appraisal Practices Impact USDA Assisted Properties

*as seen on hud.gov

**as seen on multifamilybiz.com

***as seen on seniorhousingnews.com