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One in three mortgage loans applications were denied in 2010



Only two thirds of America could get a home loan

Obtaining financing is frequently cited as one of the most difficult obstacles in the modern real estate transaction and the numbers now show that it is not a problem with perception, rather a reality. The WSJ analysed the 10 largest mortgage originators’ data to reveal a national average of 27% of all mortgage applications in 2010 experiencing a denial. The denial rate is up nearly 15% in the last year alone and it is likely denials will increase in 2011.

We’ve spoken for years about the pendulum swinging away from the Barney Frank’s push for homeownership for all back in the day (that led to risky loans) to today’s reality of increasingly difficult lending for any and all applicants.

Only two in three Americans who applied for a mortgage last year were able to move forward, but the data does not make clear whether or not all of those actually made it to purchase without a last minute lending issue (another commonly cited obstacle in getting a deal done).

“Although lenders were expected to pull back from the freewheeling conditions that helped inflate the housing bubble, some economists argue they are now too conservative, and say that with the U.S. economy still wobbly, mortgages need to be easier to obtain for qualified borrowers, not harder,” the WSJ reports.

Mississippi, Vermont & Texas have denial rates over 35%

In order of lowest denial rates to highest:

  • 19.9%   Minnesota
  • 20.3%   Virginia
  • 21.0%   South Dakota
  • 21.0%   Kansas
  • 21.1%   North Dakota
  • 21.6%   Iowa
  • 21.8%   Nebraska
  • 22.4%   Maryland
  • 22.8%   Colorado
  • 22.8%   District of Columbia
  • 23.0%   Wisconsin
  • 23.1%   North Carolina
  • 23.3%   Washington
  • 23.6%   California
  • 23.7%   Massachusetts
  • 23.8%   Alaska
  • 24.4%   Delaware
  • 25.1%   Missouri
  • 25.1%   Pennsylvania
  • 25.2%   Montana
  • 25.5%   Illinois
  • 26.0%   Connecticut
  • 26.4%   New Hampshire
  • 26.5%   Oregon
  • 26.6%   New Jersey
  • 26.8%   Wyoming
  • 27.2%   South Carolina
  • 27.4%   Arizona
  • 27.5%   Hawaii
  • 28.2%   Indiana
  • 29.0%   Idaho
  • 29.1%   Rhode Island
  • 29.2%   Nevada
  • 29.5%   Georgia
  • 29.8%   Maine
  • 29.9%   Tennessee
  • 30.0%   West Virginia
  • 31.1%   Kentucky
  • 31.6%   Michigan
  • 32.2%   Florida
  • 32.8%   Oklahoma
  • 33.0%   Arkansas
  • 33.1%   Alabama
  • 33.5%   Ohio
  • 33.7%   New Mexico
  • 34.1%   Louisiana
  • 34.8%   New York
  • 35.1%   Texas
  • 36.6%   Vermont
  • 38.9%   Mississippi

With a high national average, how is your state performing? How tight is lending where you are and what surprises are you seeing during the transaction regardless of approval? We invite you to share your thoughts in the comments below.

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  1. Joe Loomer

    June 27, 2011 at 7:51 am

    The thing that kills me is the ones who are denied after being qualified and given a good faith estimate. Contracts falling through, appraisals coming in low, all part of the new reality in real estate. The silver lining is it's forcing agents to seriously do their legwork and not hand the entire financing aspect over to the lender. Good, tactful conversation can reveal a lot more about someone's ability to buy than just calling the originator buddy.

    Navy Chief, Navy Pride

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Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?



Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.



aging housing inventory

aging housing inventory

The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.



zillow move

zillow move

Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub,, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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