For the third straight week, long-term mortgage rates inched down, according to Freddie Mac’s weekly mortgage survey.
The 30-year fixed rate mortgage averaged 4.87 percent for the week, down from last week’s 4.95 percent. The rate was 4.97 percent at this time last year.
The 15-year mortgage rate also dipped for the week, averaging 4.15 percent, down from last week’s 4.22 percent.
The 5-year adjustable-rate mortgage averaged 3.72 percent, which is a drop from last week’s 3.8 percent average.
"Mortgage rates saw an overall improvement this week,” says Frank Nothaft, Freddie Mac’s chief economist. “Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago.” This means that home buyers can now expect to pay $263 less per year on a $200,000 loan, Nothaft adds.
Showing posts with label danny force keller williams. Show all posts
Showing posts with label danny force keller williams. Show all posts
Saturday, March 5, 2011
Tuesday, February 22, 2011
Housing Starts Jump 14.6% in January
Housing starts in January reached their highest rate in four months, increasing more than analysts expected, the Commerce Department reports. Housing starts jumped 14.6 percent to a seasonally adjusted annual rate of 596,000 units.
Housing starts in January were helped by a 77.7 percent jump in multi-family homes. Single-family home construction, on the other hand, fell 1 percent.
Meanwhile, new home completions dropped to a record low of 512,000 units in January, falling 9.5 percent from the previous month.
And after housing permits surged in December by 15.3 percent, housing permits for future housing projects sank in January. New building permits dropped 10.4 percent to a 562,000-unit pace in January--mostly pulled down by a drop in multi-family and single-family unit permits.
Housing starts in January were helped by a 77.7 percent jump in multi-family homes. Single-family home construction, on the other hand, fell 1 percent.
Meanwhile, new home completions dropped to a record low of 512,000 units in January, falling 9.5 percent from the previous month.
And after housing permits surged in December by 15.3 percent, housing permits for future housing projects sank in January. New building permits dropped 10.4 percent to a 562,000-unit pace in January--mostly pulled down by a drop in multi-family and single-family unit permits.
Saturday, December 11, 2010
How Home Prices, the Economy, and Your Attitude Are Connected
Home prices are tied to the economy very closely. When the economy is running smoothly, home prices and sales are soaring and people feel more secure with their money and their stability. But when one of these things changes, they all change with it.
If the economy starts to turn, people begin to lose jobs and want to leave the area searching for different work. Because there is less work, less people want to move to the area, leaving sellers stuck. As the housing market begins to lower, home prices drop and people aren’t worth as much money as they were before. They begin to feel poorer and stop making big ticket purchases. The loss of that cash flow hurts the economy more, and the spiral continues.
Housing Market
If the housing market begins to turn, then homes lose value, people feel poorer and the economy suffers. If people begin to feel poorer without either the economy or the Dallas housing market turning, they can drag the whole thing down. Sometimes politicians or other interest groups want people to feel poorer to sway public opinion, so it is possible for this to occur, and it has occurred in the past.
You can do your part to help the economy and the housing market by remaining calm about your finances. Focus on making smart economic decisions and stay calm. It’s important to prepare for a down-turned economy, and keep as level as possible. If you practice this when the market is high, it will be easier on your family when the market is low.
Easier Said
This advice is easier said than done, especially with job loss, the rise of foreclosure rates, and increasing Dallas short sales. The light at the end of the tunnel is getting closer. It will be a long battle to get there, but we will be seeing relief.
If the economy starts to turn, people begin to lose jobs and want to leave the area searching for different work. Because there is less work, less people want to move to the area, leaving sellers stuck. As the housing market begins to lower, home prices drop and people aren’t worth as much money as they were before. They begin to feel poorer and stop making big ticket purchases. The loss of that cash flow hurts the economy more, and the spiral continues.
Housing Market
If the housing market begins to turn, then homes lose value, people feel poorer and the economy suffers. If people begin to feel poorer without either the economy or the Dallas housing market turning, they can drag the whole thing down. Sometimes politicians or other interest groups want people to feel poorer to sway public opinion, so it is possible for this to occur, and it has occurred in the past.
You can do your part to help the economy and the housing market by remaining calm about your finances. Focus on making smart economic decisions and stay calm. It’s important to prepare for a down-turned economy, and keep as level as possible. If you practice this when the market is high, it will be easier on your family when the market is low.
Easier Said
This advice is easier said than done, especially with job loss, the rise of foreclosure rates, and increasing Dallas short sales. The light at the end of the tunnel is getting closer. It will be a long battle to get there, but we will be seeing relief.
Thursday, December 9, 2010
Holiday Decor Can Catch a Buyer's Eye
Tastefully done holiday decorations can be the eye candy that captures a buyer’s interest, says Lee Ralph, an associate with Coldwell Banker North Tampa (Fla.).
“We even negotiated a contract on Christmas Day last year,” Ralph says.
Ralph suggests using elegant themes and warns against over-decoration. “That may keep the buyer from being comfortable and able to visualize the home as their own,” Ralph says.
Designer Rick Davies, co-owner of Lafayette & Rushford Home, a home decor store in Dunedin, Fla., makes these suggestions:
· Work with what can’t be changed. Work carefully with the color, style, and age of the home.
· Consider proportions. Don’t put a huge wreath on a tiny door.
· Light the way. Simple pathway lights are a gracious way to greet potential buyers.
· Be subtle. Choose contemporary colors, including bright greens, lemongrass, golds, and ambers.
· Natural is in. Natural-look and organic materials are in vogue, including berries, artichokes, moss, twigs, acorns, and feathers.
Source: St. Petersburg Times, Terri Bryce Reeves (12/04/2010)
“We even negotiated a contract on Christmas Day last year,” Ralph says.
Ralph suggests using elegant themes and warns against over-decoration. “That may keep the buyer from being comfortable and able to visualize the home as their own,” Ralph says.
Designer Rick Davies, co-owner of Lafayette & Rushford Home, a home decor store in Dunedin, Fla., makes these suggestions:
· Work with what can’t be changed. Work carefully with the color, style, and age of the home.
· Consider proportions. Don’t put a huge wreath on a tiny door.
· Light the way. Simple pathway lights are a gracious way to greet potential buyers.
· Be subtle. Choose contemporary colors, including bright greens, lemongrass, golds, and ambers.
· Natural is in. Natural-look and organic materials are in vogue, including berries, artichokes, moss, twigs, acorns, and feathers.
Source: St. Petersburg Times, Terri Bryce Reeves (12/04/2010)
Saturday, December 4, 2010
Hurdles to Buying A Home
A lot of hype out there right now about the time being right for buying a home because home prices are down and mortgage rates are near all time lows – making home ownership very affordable. But, so many people are sitting on the sidelines according to NAR as home sales are 25% less than figures from 2009.
So what has people sitting on the sidelines if NAR’s figures are accurate?
First off, the $8000 home buying tax credit that the Bush administration started and the Obama administration renewed and extended has expired (except for Vets – yes Vets can still take advantage of low VA rates and 100% financing using the tax credit until April 2011). Many real estate and mortgage experts suggest this has had an impact on the market slow down. Ok, I buy it. Next reason…
Credit Scores – Mortgage guidelines are the toughest they have been in years. It seems like every month we get a notice saying that FICO score requirements for mortgage programs go up. Currently many lenders are requiring credit scores of 640 or greater to qualify. Some predict that with this sole requirement, at least 1/3 of all possible US based home buyers cannot qualify because their scores are less than 640. Ouch for a housing market turnaround.
Income and Assets – mortgage qualifications have tightened their analysis of job history, income, and assets. Bank statements, for example, are looked at more closely than ever with even the slightest elevated deposits questioned. A shaky job history could lend itself to you getting the thumbs up or thumbs down in the case where an underwriter has some discretion about approving your mortgage. And for income, you must be able to solidly prove it with pay stubs, W-2′s and tax returns, etc. If you are self employed be prepared for an even tougher road.
Appraisals – Perhaps one of the most frustrating thing is the continued weakness in the housing market caused by foreclosures and short sales. Perfectly good homes where the owners are not in financial trouble are facing diffculty in being fairly valued because they are surrounded by now substandard foreclosure and short sale homes. Sellers can’t agree on price with buyers and home values are not matching up with sales contract prices. According to some, the business of appraising is just a mess.
And finally, the fear of the unexpected – With the economy in the state that it is in, many people have little confidence in job security or that the economy has made a turn for the better. With job security at question as well as fears that home prices are still not at the bottom it is no wonder why so many people are waiting.
One proactive thing you can do if you are looking to buy a home is to get yourself pre approved with a mortgage lender. At the very least you can take care of your credit scores and personal finance hurdles in the mean time if you also have fears about the economy and housing prices.
So what has people sitting on the sidelines if NAR’s figures are accurate?
First off, the $8000 home buying tax credit that the Bush administration started and the Obama administration renewed and extended has expired (except for Vets – yes Vets can still take advantage of low VA rates and 100% financing using the tax credit until April 2011). Many real estate and mortgage experts suggest this has had an impact on the market slow down. Ok, I buy it. Next reason…
Credit Scores – Mortgage guidelines are the toughest they have been in years. It seems like every month we get a notice saying that FICO score requirements for mortgage programs go up. Currently many lenders are requiring credit scores of 640 or greater to qualify. Some predict that with this sole requirement, at least 1/3 of all possible US based home buyers cannot qualify because their scores are less than 640. Ouch for a housing market turnaround.
Income and Assets – mortgage qualifications have tightened their analysis of job history, income, and assets. Bank statements, for example, are looked at more closely than ever with even the slightest elevated deposits questioned. A shaky job history could lend itself to you getting the thumbs up or thumbs down in the case where an underwriter has some discretion about approving your mortgage. And for income, you must be able to solidly prove it with pay stubs, W-2′s and tax returns, etc. If you are self employed be prepared for an even tougher road.
Appraisals – Perhaps one of the most frustrating thing is the continued weakness in the housing market caused by foreclosures and short sales. Perfectly good homes where the owners are not in financial trouble are facing diffculty in being fairly valued because they are surrounded by now substandard foreclosure and short sale homes. Sellers can’t agree on price with buyers and home values are not matching up with sales contract prices. According to some, the business of appraising is just a mess.
And finally, the fear of the unexpected – With the economy in the state that it is in, many people have little confidence in job security or that the economy has made a turn for the better. With job security at question as well as fears that home prices are still not at the bottom it is no wonder why so many people are waiting.
One proactive thing you can do if you are looking to buy a home is to get yourself pre approved with a mortgage lender. At the very least you can take care of your credit scores and personal finance hurdles in the mean time if you also have fears about the economy and housing prices.
Friday, December 3, 2010
4 Reasons To Buy A Home During The Holidays
Real estate sales and mortgage loan transactions tend to slow way down during the winter holidays. This phenomenon is certainly understandable – there is enough going on with holiday shopping, traveling, parties, cooking, and decorating without adding a move. But before you pack it in and close up shop until after New Years consider these reasons to buy a home during the holidays:
1) Get A Great Deal – Anxious sellers with homes on the market are likely thinking their chances of selling during November or December are slim. You may be able to get an even lower price accepted at this time of year. Consider the cost of 2 – 3 additional mortgage payments and maintaining the home for that time. There is also the added value of the peace of mind for the sellers that comes with closing before the new year.
2) Undivided Attention – Because home sales decline during the holidays both real estate agents and mortgage professionals are less busy and will be able to devote more time and energy to the deals they are working on. It is good to consider holiday closings and vacations that may be scheduled and to be up front about how this might affect the time line of the purchase.
3) Available Contractors – If a home requires some work before it can be moved into this is an ideal time of year to have it done. Most general contractors and specialists such as electricians, painters, roofers, and plumbers are not very busy around the holidays. Most home owners don’t want to undertake a home improvement project with the holidays looming and risk serving Thanksgiving dinner with a torn up kitchen, or having work done on the house while the in-laws are in town for Hanukkah. Have the pick of the professionals in the area and possibly a discount as well by getting projects started now.
4) Time Off – While moving might not be the most relaxing way to spend the time around the holidays it is convenient in that it’s a time when many people have vacation from work and school. If the office is closed for a few days around the holidays it could be an ideal time to move and start the new year in the new house! For moves scheduled before the holidays homeowners with children should be sure to head off their kids’ fears and include Santa when updating everyone with the new address.
1) Get A Great Deal – Anxious sellers with homes on the market are likely thinking their chances of selling during November or December are slim. You may be able to get an even lower price accepted at this time of year. Consider the cost of 2 – 3 additional mortgage payments and maintaining the home for that time. There is also the added value of the peace of mind for the sellers that comes with closing before the new year.
2) Undivided Attention – Because home sales decline during the holidays both real estate agents and mortgage professionals are less busy and will be able to devote more time and energy to the deals they are working on. It is good to consider holiday closings and vacations that may be scheduled and to be up front about how this might affect the time line of the purchase.
3) Available Contractors – If a home requires some work before it can be moved into this is an ideal time of year to have it done. Most general contractors and specialists such as electricians, painters, roofers, and plumbers are not very busy around the holidays. Most home owners don’t want to undertake a home improvement project with the holidays looming and risk serving Thanksgiving dinner with a torn up kitchen, or having work done on the house while the in-laws are in town for Hanukkah. Have the pick of the professionals in the area and possibly a discount as well by getting projects started now.
4) Time Off – While moving might not be the most relaxing way to spend the time around the holidays it is convenient in that it’s a time when many people have vacation from work and school. If the office is closed for a few days around the holidays it could be an ideal time to move and start the new year in the new house! For moves scheduled before the holidays homeowners with children should be sure to head off their kids’ fears and include Santa when updating everyone with the new address.
Thursday, December 2, 2010
Bankrate: Mortgage Rates Dip Down
Mortgage rates retreated last week, following two consecutive weeks climbing higher. The average conforming 30-year fixed mortgage rate decreased to 4.58 percent, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.40 discount and origination points.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage decreased to 3.97 percent, and the larger, jumbo 30-year fixed rate dipped as well to 5.18 percent. Adjustable rate mortgages dropped as well, with the average 5-year ARM at 3.66 percent and the average 7-year ARM falling to 3.97 percent.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.58 percent, the monthly payment for the same size loan would be $1,022.90, a savings of $219 per month for a homeowner refinancing now.
SURVEY RESULTS
* 30-year fixed: 4.58% -- down from 4.62% last week (avg. points: 0.37)
* 15-year fixed: 3.97% -- down from 4.02% last week (avg. points: 0.32)
* 5/1 ARM: 3.66% -- down from 3.71% last week (avg. points: 0.38)
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.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage decreased to 3.97 percent, and the larger, jumbo 30-year fixed rate dipped as well to 5.18 percent. Adjustable rate mortgages dropped as well, with the average 5-year ARM at 3.66 percent and the average 7-year ARM falling to 3.97 percent.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.58 percent, the monthly payment for the same size loan would be $1,022.90, a savings of $219 per month for a homeowner refinancing now.
SURVEY RESULTS
* 30-year fixed: 4.58% -- down from 4.62% last week (avg. points: 0.37)
* 15-year fixed: 3.97% -- down from 4.02% last week (avg. points: 0.32)
* 5/1 ARM: 3.66% -- down from 3.71% last week (avg. points: 0.38)
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.
Wednesday, December 1, 2010
Employment growth helps Texas economy outpace nation's
By David S. Jones | columnist
Employment in the Texas private sector is keeping the state's job growth headed in the right direction.
In his Monthly Review of the Texas Economy for October, Ali Anari, Ph.D., says the state added 166,000 jobs during the fiscal year ending in September.
"That's an annual growth rate of 1.6%," says the Real Estate Center research economist. "Over the same period, the U.S. economy gained 321,000 jobs, an annual growth rate of 0.2%.
"The private sector posted an annual employment growth rate of 1.9%," reports Anari, "compared with 0.5% for the U.S. private sector during the year."
Texas' seasonally adjusted unemployment was 8.1% in September, unchanged from September last year. Meanwhile, the nation's September-to-September rate decreased from 9.8% to 9.6%.
"All Texas industries except trade, construction, and information had more jobs in September 2010 than they did 12 months earlier," Anari points out. "Mining and logging ranked first in job creation with an annual employment growth rate of 14.1%. The average number of active rotary rigs increased from 379.4 in October 2009 to 687.96 (in October 2010)."
The complete report is available online free at http://recenter.tamu.edu/econ/
Employment in the Texas private sector is keeping the state's job growth headed in the right direction.
In his Monthly Review of the Texas Economy for October, Ali Anari, Ph.D., says the state added 166,000 jobs during the fiscal year ending in September.
"That's an annual growth rate of 1.6%," says the Real Estate Center research economist. "Over the same period, the U.S. economy gained 321,000 jobs, an annual growth rate of 0.2%.
"The private sector posted an annual employment growth rate of 1.9%," reports Anari, "compared with 0.5% for the U.S. private sector during the year."
Texas' seasonally adjusted unemployment was 8.1% in September, unchanged from September last year. Meanwhile, the nation's September-to-September rate decreased from 9.8% to 9.6%.
"All Texas industries except trade, construction, and information had more jobs in September 2010 than they did 12 months earlier," Anari points out. "Mining and logging ranked first in job creation with an annual employment growth rate of 14.1%. The average number of active rotary rigs increased from 379.4 in October 2009 to 687.96 (in October 2010)."
The complete report is available online free at http://recenter.tamu.edu/econ/
Tuesday, November 30, 2010
Mortgage Purchase Applications Hit 6-Month High
Mortgage applications to purchase homes increased 14.4 percent last week on an adjusted basis compared to the previous week, according to the Mortgage Bankers Association weekly survey.
The unadjusted Purchase Index increased 9.6 percent compared with the previous week and was down 7.4 percent compared to the same week a year ago.
On a seasonally adjusted basis, this is the highest Purchase Index recorded since the week ending May 7, 2010 in the middle of the tax-rebate push.
“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, the association’s vice president of research and economics.
“The level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit,” Fratantoni concluded.
Interest rates were mixed, with 30-year fixed-rate mortgages rising to 4.50 percent from 4.46 percent and 15-year fixed-rate mortgages decreasing to 3.83 percent from 3.87 percent.
Source: Mortgage Bankers Association (11/24/2010)
The unadjusted Purchase Index increased 9.6 percent compared with the previous week and was down 7.4 percent compared to the same week a year ago.
On a seasonally adjusted basis, this is the highest Purchase Index recorded since the week ending May 7, 2010 in the middle of the tax-rebate push.
“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” said Michael Fratantoni, the association’s vice president of research and economics.
“The level of purchase applications on a seasonally adjusted basis is now at its highest level since the expiration of the homebuyer tax credit,” Fratantoni concluded.
Interest rates were mixed, with 30-year fixed-rate mortgages rising to 4.50 percent from 4.46 percent and 15-year fixed-rate mortgages decreasing to 3.83 percent from 3.87 percent.
Source: Mortgage Bankers Association (11/24/2010)
Friday, November 26, 2010
Dallas-area home prices are largely unchanged, a U.S. agency reports
By STEVE BROWN / The Dallas Morning News
Dallas-area home prices were basically unchanged from a year ago in the third quarter, according to the latest U.S. government estimate.
The Federal Housing Finance Agency also said that Fort Worth-area prices were down 1.15 percent from a year ago in its report released Wednesday.
Nationally, prices were down 3.2 percent from third quarter 2009, the agency said. That compares with a 0.3 percent gain in the Dallas area.
The federal home price index is based on mortgages issued by government-sponsored mortgage companies – Freddie Mac, Fannie Mae and FHA. That makes the data different from price reports that use a broader measure.
The National Association of Realtors reported recently that Dallas-Fort Worth area home prices were up 1.6 percent in the third quarter based on sales through the local Multiple Listing Service.
Texas, with its overall 1.1 percent rise, was one of the top states for home price gains in the third quarter, the FHFA said.
The biggest declines were in Idaho , which was down 9.8 percent, and Arizona, down 9.3 percent.
Among individual cities, Deltona-Daytona Beach, Fla., topped the list of losers at 15.68 percent, followed by Bend, Ore., with a 13.73 percent annual price drop.
The largest annual price increases were in Battle Creek, Mich., up 4.39 percent, and San Jose, Calif., 4.10 percent.
Dallas-area home prices were basically unchanged from a year ago in the third quarter, according to the latest U.S. government estimate.
The Federal Housing Finance Agency also said that Fort Worth-area prices were down 1.15 percent from a year ago in its report released Wednesday.
Nationally, prices were down 3.2 percent from third quarter 2009, the agency said. That compares with a 0.3 percent gain in the Dallas area.
The federal home price index is based on mortgages issued by government-sponsored mortgage companies – Freddie Mac, Fannie Mae and FHA. That makes the data different from price reports that use a broader measure.
The National Association of Realtors reported recently that Dallas-Fort Worth area home prices were up 1.6 percent in the third quarter based on sales through the local Multiple Listing Service.
Texas, with its overall 1.1 percent rise, was one of the top states for home price gains in the third quarter, the FHFA said.
The biggest declines were in Idaho , which was down 9.8 percent, and Arizona, down 9.3 percent.
Among individual cities, Deltona-Daytona Beach, Fla., topped the list of losers at 15.68 percent, followed by Bend, Ore., with a 13.73 percent annual price drop.
The largest annual price increases were in Battle Creek, Mich., up 4.39 percent, and San Jose, Calif., 4.10 percent.
Wednesday, November 24, 2010
Mortgage Rates Rise Significantly
Mortgage rates increased again this week, with the average conforming 30-year fixed mortgage rate now 4.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage increased to 4.02 percent, and the larger jumbo 30-year fixed rate soared as well to 5.24 percent. Adjustable rate mortgages also climbed higher, with the average 5-year ARM inching higher to 3.71 percent and the average 7-year ARM rising to 4.01 percent.
Mortgage rates jumped significantly this week, posting a second consecutive weekly increase since the Federal Reserve announced renewed measures to boost the economy. Worries that the Fed's quantitative easing program will spark higher inflation, coupled with stronger economic data on retail sales and weekly unemployment filings fueled the latest increase. Although mortgage rates have increased, they remain extremely low in a historical context and will not be an impediment to well-qualified borrowers for the foreseeable future.
The last time mortgage rates were above 6 percent was November 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.
To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.
The average 15-year fixed mortgage increased to 4.02 percent, and the larger jumbo 30-year fixed rate soared as well to 5.24 percent. Adjustable rate mortgages also climbed higher, with the average 5-year ARM inching higher to 3.71 percent and the average 7-year ARM rising to 4.01 percent.
Mortgage rates jumped significantly this week, posting a second consecutive weekly increase since the Federal Reserve announced renewed measures to boost the economy. Worries that the Fed's quantitative easing program will spark higher inflation, coupled with stronger economic data on retail sales and weekly unemployment filings fueled the latest increase. Although mortgage rates have increased, they remain extremely low in a historical context and will not be an impediment to well-qualified borrowers for the foreseeable future.
The last time mortgage rates were above 6 percent was November 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.
Tuesday, November 23, 2010
Why I'm jealous of today's homebuyers
By: Marty Kramer | Consumer columnist
When I bought my current home, nobody was talking about real-estate-market woes or foreclosure troubles or a struggling national economy. And yet, I'm a little jealous of buyers today.
The big story back then was the insane seller's market we were in. Time after time, my wife and I would look at a home hours after it came on the MLS only to learn it was already under contract.
Many houses sold before ever making it to the MLS. Bidding wars were common, and good properties fetched asking price or above. Seller concessions? Forget it.
My wife and I spent about seven minutes in the home we now own before telling our REALTOR® we would make an offer. Full price, of course. Even then, we worried someone would outbid us.
We asked the sellers if they could adjust the closing date so we wouldn't have to move twice. I don't know if they laughed at our request … they knew we had
zero leverage.
It all turned out well. My family is happy in our home, and we love our neighbor-
hood. Still, it would have been nice to have had more time, more choices.
Every real estate market has pros and cons. Right now, interest rates and housing inventory are extremely attractive. The market is pretty balanced, slightly favoring buyers in many locales. If your personal situation is favorable for purchasing a home, why hesitate? Hey, you probably can spend more than seven minutes in a home before deciding if you want to make an offer.
When I bought my current home, nobody was talking about real-estate-market woes or foreclosure troubles or a struggling national economy. And yet, I'm a little jealous of buyers today.
The big story back then was the insane seller's market we were in. Time after time, my wife and I would look at a home hours after it came on the MLS only to learn it was already under contract.
Many houses sold before ever making it to the MLS. Bidding wars were common, and good properties fetched asking price or above. Seller concessions? Forget it.
My wife and I spent about seven minutes in the home we now own before telling our REALTOR® we would make an offer. Full price, of course. Even then, we worried someone would outbid us.
We asked the sellers if they could adjust the closing date so we wouldn't have to move twice. I don't know if they laughed at our request … they knew we had
zero leverage.
It all turned out well. My family is happy in our home, and we love our neighbor-
hood. Still, it would have been nice to have had more time, more choices.
Every real estate market has pros and cons. Right now, interest rates and housing inventory are extremely attractive. The market is pretty balanced, slightly favoring buyers in many locales. If your personal situation is favorable for purchasing a home, why hesitate? Hey, you probably can spend more than seven minutes in a home before deciding if you want to make an offer.
Monday, November 22, 2010
Well-Kept Yards Most Important Factor in Determining Neighborhood Safety
A new survey conducted by Relocation.com finds that 75 percent of Americans believe the most important factor in determining a neighborhood's safety is the up-keep of surrounding homes, especially the conditions of the front lawns, which trumps even Googling neighborhood statistics to get a feel for a community.
The latest Relocation.com survey finds that 74 percent of respondents indicated they would select a neighborhood based on "word-of-mouth" or its local reputation over any other reason, while 67 percent of the respondents say they pay attention to local crime reports and statistics as reported in the local media. Less compelling, according to the survey, are "a gated community with security patrols" and "proximity to a police or fire station" when determining the safety of a neighborhood.
"It's interesting to see how home buyers determine neighborhood safety based on the neighborhood's appearance and not as much based on police statistics or crime reports," says Relocation.com Chairman and Founder Sharon Asher. "Our findings suggest that some home sellers who are struggling to generate interest may want to go the extra mile and help their neighbors with landscaping needs in order to create buyer interest."
The Relocation.com survey was conducted in mid-October, 2010, in a continuing effort to provide information on lifestyle factors that drive moving and relocation decisions in the U.S.
The latest Relocation.com survey finds that 74 percent of respondents indicated they would select a neighborhood based on "word-of-mouth" or its local reputation over any other reason, while 67 percent of the respondents say they pay attention to local crime reports and statistics as reported in the local media. Less compelling, according to the survey, are "a gated community with security patrols" and "proximity to a police or fire station" when determining the safety of a neighborhood.
"It's interesting to see how home buyers determine neighborhood safety based on the neighborhood's appearance and not as much based on police statistics or crime reports," says Relocation.com Chairman and Founder Sharon Asher. "Our findings suggest that some home sellers who are struggling to generate interest may want to go the extra mile and help their neighbors with landscaping needs in order to create buyer interest."
The Relocation.com survey was conducted in mid-October, 2010, in a continuing effort to provide information on lifestyle factors that drive moving and relocation decisions in the U.S.
Saturday, November 20, 2010
Mortgage Rates Back on the Rise
Rates for 30-year fixed mortgages rose to 4.39 percent this week from 4.17 percent a week ago, and average interest on 15-year loans moved to 3.76 percent from 3.57 percent, said Freddie Mac.
Interest for five-year adjustable-rate mortgages jumped to 3.4 percent from 3.25 percent, meanwhile, and one-year ARMs held at 3.26 percent. Rates have climbed along with long-term Treasury yields as traders unloaded Treasurys purchased before the Federal Reserve announced a $600 billion bond purchase program.
Source: Chicago Sun-Times (11/19/10)
Interest for five-year adjustable-rate mortgages jumped to 3.4 percent from 3.25 percent, meanwhile, and one-year ARMs held at 3.26 percent. Rates have climbed along with long-term Treasury yields as traders unloaded Treasurys purchased before the Federal Reserve announced a $600 billion bond purchase program.
Source: Chicago Sun-Times (11/19/10)
Friday, November 19, 2010
Top Tips to Winter-Proof Your Home
As winter sets in, there's nothing better than hibernating on the sofa with a good book or classic film. But having this spoiled by a home emergency can add a real chill to your winter warmth, especially if it's preventable.
We're all familiar with the issues winter forces upon us: the boiler breaking, pipes bursting or a break-in, which can make the harsh effects of winter far more severe.
Planning ahead now can help protect you against these potential problems. Here are some simple tips from John Lewis Insurance to prevent home emergencies from happening. Many of them are relatively quick and easy to do.
Quick fixes:
* Change the battery in your smoke detector or install them if you don't have any - it's a simple task that can save your life. And make sure you test them regularly.
* Inspect your roof for missing or cracked tiles. If repairs are needed, get them done as soon as you can.
* Vacuum the coils on the back of the fridge. This will help your fridge work more efficiently and will help you save money on your power bills.
* Turn your mattress regularly. We all spend more time in bed over winter - turning your mattress regularly will extend its life and ensure a more comfortable night's sleep.
* Get your boiler serviced. If you haven't had your boiler serviced this year, now is the ideal time to ensure it's in good working order.
More time needed:
* Oil your power tools and if you have a gas-powered lawn mower, drain the gas from it. They will survive the winter better and be in top shape for spring.
* Check all taps for leaks and locate the main pipe to the water mains. Pipes can burst if they freeze so if you leave home for more than a few days, ideally you should turn off the water and drain the pipes.
* Bleed your radiators by opening the valve until water appears - they will work more efficiently.
* The cold doesn't deter burglars so be sure to inspect your locks and any burglar alarms - and consider using lighting timers for that lived in appearance.
Worth the effort:
* It may take a day or two to sort out but cleaning your gutters properly will guarantee they won't get blocked or overflow.
* Trimming back trees is always recommended in the autumn.
* Clean out the garage before anything is stored that can get spoiled by the cold.
Finally, preparing an emergency kit is a great way to make those small and big emergencies as easy to handle as possible. This is what you should have at hand's reach:
* A small tool bag containing a torch, a roll of insulation tape, spare fuses, spare batteries and a screwdriver
* A radiator key
* A fire extinguisher if you have one, checked or recently replaced
* Important telephone numbers like the police, a trusted plumber, electrician, etc.
We're all familiar with the issues winter forces upon us: the boiler breaking, pipes bursting or a break-in, which can make the harsh effects of winter far more severe.
Planning ahead now can help protect you against these potential problems. Here are some simple tips from John Lewis Insurance to prevent home emergencies from happening. Many of them are relatively quick and easy to do.
Quick fixes:
* Change the battery in your smoke detector or install them if you don't have any - it's a simple task that can save your life. And make sure you test them regularly.
* Inspect your roof for missing or cracked tiles. If repairs are needed, get them done as soon as you can.
* Vacuum the coils on the back of the fridge. This will help your fridge work more efficiently and will help you save money on your power bills.
* Turn your mattress regularly. We all spend more time in bed over winter - turning your mattress regularly will extend its life and ensure a more comfortable night's sleep.
* Get your boiler serviced. If you haven't had your boiler serviced this year, now is the ideal time to ensure it's in good working order.
More time needed:
* Oil your power tools and if you have a gas-powered lawn mower, drain the gas from it. They will survive the winter better and be in top shape for spring.
* Check all taps for leaks and locate the main pipe to the water mains. Pipes can burst if they freeze so if you leave home for more than a few days, ideally you should turn off the water and drain the pipes.
* Bleed your radiators by opening the valve until water appears - they will work more efficiently.
* The cold doesn't deter burglars so be sure to inspect your locks and any burglar alarms - and consider using lighting timers for that lived in appearance.
Worth the effort:
* It may take a day or two to sort out but cleaning your gutters properly will guarantee they won't get blocked or overflow.
* Trimming back trees is always recommended in the autumn.
* Clean out the garage before anything is stored that can get spoiled by the cold.
Finally, preparing an emergency kit is a great way to make those small and big emergencies as easy to handle as possible. This is what you should have at hand's reach:
* A small tool bag containing a torch, a roll of insulation tape, spare fuses, spare batteries and a screwdriver
* A radiator key
* A fire extinguisher if you have one, checked or recently replaced
* Important telephone numbers like the police, a trusted plumber, electrician, etc.
Thursday, November 18, 2010
Mortgage Activity Logs Biggest Drop of the Year
Home loan demand fell 14 percent last week, as higher interest rates sent refinancing down 17 percent. This was the biggest drop of the year, according to the Mortgage Bankers Association weekly survey.
Applications for mortgages to purchase homes fell 5 percent last week compared to the previous week on an adjusted basis. On an unadjusted basis, purchase applications decreased 8.2 percent compared with the previous week and were 11.3 percent lower than they were the same week a year ago.
Purchase applications had been on the rise for the previous three weeks, but “rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed’s QE2 program. Mortgage applications … dropped in response,” said Michael Fratantoni, MBA’s vice president of research and economics.
Here are the average rates:
▪ 30-year fixed-rate mortgages increased to 4.46 percent from 4.28 percent.
▪ 15-year fixed-rate mortgages increased to 3.87 percent from 3.64 percent.
Source: Mortgage Bankers Association (11/17/2010)
Applications for mortgages to purchase homes fell 5 percent last week compared to the previous week on an adjusted basis. On an unadjusted basis, purchase applications decreased 8.2 percent compared with the previous week and were 11.3 percent lower than they were the same week a year ago.
Purchase applications had been on the rise for the previous three weeks, but “rates increased sharply last week due to stronger economic data and lingering uncertainty regarding the structure and impact of the Fed’s QE2 program. Mortgage applications … dropped in response,” said Michael Fratantoni, MBA’s vice president of research and economics.
Here are the average rates:
▪ 30-year fixed-rate mortgages increased to 4.46 percent from 4.28 percent.
▪ 15-year fixed-rate mortgages increased to 3.87 percent from 3.64 percent.
Source: Mortgage Bankers Association (11/17/2010)
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