California cities have seen their home values drop by the largest percentage in the last five years, with some metro areas posting losses of up to 67 percent in that time period. California cities occupied six of the top 10 metro areas with the largest drops, according to a recent Zillow study based on its home-value estimates and Zillow Home Value Index.
Overall, "there will be many ups and downs in home values before this is over, and we continue to expect a true bottom in 2012, at the earliest,” says Stan Humphries, Zillow’s chief economist. “There are still hazards in the form of a full foreclosure pipeline, high negative equity, and fluctuations in demand."
The following are seven cities that have seen home values drop the most since the housing boom, according to Zillow:
1. Merced, Calif.July 2011 Zillow Home Value Index: $106,514Zillow Home Value Index 5 Years ago: $328,813Value difference (by percent): -67.6%
2. Modesto, Calif.July 2011 ZHVI: $128,777ZHVI 5 Years Ago: $352,599Value difference: -63.5%
3. Stockton, Calif.July 2011 ZHVI: $150,061ZHVI 5 Years Ago: $404,036Value difference: -62.9%
4. Las VegasJuly 2011 ZHVI: $117,084ZHVI 5 Years Ago: $303,656Value difference: -61.4%
5. Vallejo, Calif.July 2011 ZHVI: $190,521ZHVI 5 Years Ago: $468,071Value difference: -59.3%
6. Salinas, Calif.July 2011 ZHVI: $282,289ZHVI 5 Years Ago: $664,404Value difference: -57.5%
7. Daytona Beach, Fla.July 2011 ZHVI: $95,193ZHVI 5 Years Ago: $220,436Value difference: -56.8%
Mortgage Rates Dip, Reaching Another Record Low For the second time in a month, fixed and adjustable-rate mortgage rates set new record lows this week, Freddie Mac reports in its weekly mortgage market survey. The previous record lows were set Aug. 18.
Economic uncertainty and employment concerns are continuing to keep rates low, says Frank Nothaft, Freddie Mac’s chief economist.
Here’s a closer look at rates for the week ending Sept. 8.
•30-year fixed-rate mortgages: averaged 4.12 this week, down from last week’s 4.22 percent. The 30-year rates’ previous low was 4.15 percent, set on Aug. 18. •15-year fixed-rate mortgages: averaged 3.33 percent this week, down from last week’s 3.39 percent average. Its previous record low was 3.36 percent.•5-year adjustable-rate mortgages: averaged 2.96 percent, holding steady at the same record low it set last week. •1-year ARMs: averaged 2.84 percent this week, down from last week’s 2.89 percent average. Its previous record low was 2.86 percent.Despite the low rates, mortgage application volume remains low, dropping for the third straight week, the Mortgage Bankers Association reported this week. The volume of mortgage applications for purchase remained relatively flat this week at “extremely low levels, close to lows last seen in 1996,” says Mike Fratantoni, MBA’s vice president of Research and Economics. Refinance application volume was also down, dropping more than 35 percent below levels last year at this time.