Fairfax Virginia New Home Owners Carry Less Mortgage Debt

In Fairfax County, VA., the average mortgage amount for $conforming (non jumbo) mortgages declined to $272,000 during the first quarter of 2009. This is more than a 16% decrease from the average mortgage loan amount of $conforming mortgages in Fairfax County Virginia during the first quarter of 2008 when the average loan was $317,000.

Click on Chart for Larger View and More Statistics

The chart above shows the monthly average mortgage amount for conventional purchase money mortgages on properties in Fairfax County Virginia. Only conventional mortgages having mortgage amount below the conforming limit are included ($417,000 for mortgages with closing dates in 2006, 2007, 2008 and 2009 and $360,000 for mortgages having closing dates in 2005).

Home purchasers are able to obtain lower first lien mortgages to purchase homes in Fairfax as a result of decreases in home prices.

The savings to Fairfax home owners has its costs to mortgage lenders. Not only are mortgage lenders originating fewer mortgages, the reduced loan amounts result in reduced loan origination fees. Mortgage lenders typically charge 1 percent of the mortgage amount for their compensation in originating the mortgage.

Arlington County Sales Rise in December

After a few months of decline, home sales rose in Arlington County, VA for the month of December. The chart below tracks the monthly sales since April 2008.

Click on the image below for a larger view.

Is this a beginning of some good news? There is some bad news that goes with this increase in sales. The median home price dropped further in December to $454,000 from a high in October of $558,000. Hopefully, if sales stay strong the median home price can climb back up as the inventory of homes on the market shrinks.

Riverside County California Shows an Uptick in Home Prices

Is this noise or have we reached a bottom in price declines? One month of price increases is encouraging.







Sales data for Riverside County, CA show the first monthly increase in the median home sale price. The median price of homes sold in October was $245,000. This represents a $5,000 increase in the median home sale price over September which was $240,000. Home prices have been declining steadily in Riverside County. The peak median home sale price in Riverside was $427,000 back in August 2006.

Wells Fargo Leads in VA Mortgage Sales in Riverside, CA

Wells Fargo Mortgage leads in sales of VA guaranteed mortgages in Riverside County, California. In Riverside County, their are roughly 30 new conventional mortgages and 5 new FHA mortgages for every new VA mortgage. VA mortgage products and FHA mortgage products are gaining sales rapidly while conventional mortgage sales have been declining. The rapid rise of VA mortgages justifies tracking the leaders in sales of these products.

VA Average Mortgage Passes $200K

During the months of February through June of this year, the average VA mortgage loan amount exceeded $200,000. The average loan amounts of government insured FHA mortgages and VA guaranty mortgages have been increasing each month. Note on the accompanying chart the spread between the average VA mortgage loan amount and the average FHA mortgage amount. Except for the past two months, the spread was increasing.

Nationwide, the average VA mortgage amounts have been exceeding the average FHA mortgage amounts by roughly 15 percent. For mortgage originators generating loan origination fees, VA mortgages are going to provide more revenue per unit. The problem for originators is that VA mortgages are not necessarily the most appealing mortgage product for eligible veterans. Although the volume of VA mortgages have been increasing, the number of new VA mortgages is under 20,000 units per month.

Prince William County Virginia - Home Prices in Free Fall!

I found this dialogue amusing and as useful as any analysis of Case-Shiller home price data. The idle chat provides a description of home price declines in one market in Virginia. Some posters contend that the crack down on illegal immigrants exacerbate foreclosures and housing prices. If that is the case then perhaps we might all benefit by being a little nicer to our immigrant neighbors!

Just for fun!! These quotes were copied from the link.

• .....Seems like there was some really irresponsible lending going on
  there.

  Let's just say if the price charts were a ski slope--it would truly be "experts only."

  Let's say if Dumfries and Manassas combined, and they changed to Dumassas

Home Prices Holding Up?

There has been much made of the metro areas that have been particularly hard hit during the current housing downturn. However, housing prices in many urban areas within these metros have held up well. Will increasing gas prices and falling home values in the outer suburbs increase demand for homes closer to the urban centers?

What lenders are increasing their sales in Chicago, Boston and San Francisco where home values have held up reasonably well?