REAL ESTATE NEWS...Mortgage applications down 3.5 per cent and artificial grass?

Mortgage applications down 3.5 per cent
The number of mortgage applications for the week ending May 8 were down by 3.5 per cent. The latest data from the Mortgage Bankers Association shows that refinancing loan applications fell by an unadjusted 6 per cent and the share of those mortgages fell to 51 per cent from 52 per cent the previous week. ARM activity increased to 6.3 per cent of all mortgage applications while the FHA share fell slightly to 13.8 per cent from 14 per cent the previous week. The effective rate of all contract types increased from the previous week.
 
250,000 in LA, OC face HELOC reset 
A quarter of a million homeowners in the Los Angeles and Orange County area are facing a reset of their home equity line of credit (HELOC) accounts with payment hikes as a result. RealtyTrac data reveals 3.3 million HELOCs are scheduled to be reset over the next four years and the two Southern California metros have the largest proportion. With the credit lines converting to 20-year fully amortizing loans RealtyTrac vice president Daren Blomquist is predicting a wave of foreclosures. While those affected should speak to their mortgage broker or lender to discuss options that may be available some will find themselves in trouble. Blomquist told CBS Los Angeles: “A lot of homeowners who took out these HELOC’s during the bubble, can’t refinance because they are underwater on their homes. These homeowners are not only underwater … now they’re seeing this higher loan payment.”
 
Artificial grass growing in popularity
As Californian homeowners continue to battle the four year-long drought more are seeking a man-made solution for a return to green grass. Artificial grass is growing in popularity in California prompting local supplier AGL to move to larger premises in Wildomar to keep up with demand. Manager Jonathan Roth commented: “Ever since Govenor Brown’s announcement regarding the drought and water restrictions, we have been busier than ever.”

 

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Home improvements top use for home equity accounts
Most homeowners with home equity accounts are using them for improving their homes according to a new report. The study by mortgage lender BMO Harris Bank found that 47 per cent used their accounts for that purpose compared to 22 per cent for consolidating debts and 20 per cent making major purchases such as a vehicle. The report shows that home equity lines are not widely used though. Just 25 per cent of US homeowners have a home equity account or loan. Most (55 per cent) opened it for a specific purpose but have not used it since; 11 per cent have never used it; 52 per cent have never had one.