Mortgage rates reverse course

Mortgage rates reverse course

After three weeks of gains, a return to near-record lows

  

Mortgage rates eased this week, reversing three consecutive weeks of increases, as Federal Reserve policymakers weighed further stimulus measures that could include additional purchases of mortgage-backed securities that fund most U.S. mortgage loans.

Rates for 30-year fixed-rate mortgages averaged 3.59 percent with an average 0.6 point for the week ending Aug. 30, down from 3.66 percent last week and 4.22 percent a year ago, Freddie Mac said in releasing the results of its weekly Primary Mortgage Market Survey. Rates on 30-year fixed-rate mortgages hit an all-time low in Freddie Mac records dating to 1971 of 3.49 percent during the week ending July 26. Read more

Will Housing Lead A U.S. Recovery?

Will Housing Lead A U.S. Recovery?

The residential real estate market appears to have been one of the few encouraging areas within the U.S. economy during the second quarter.

While I observed many positive reports with respect to existing home sale prices, pending home sales, inventory and initial building permits, I still believe that it will take several years for the housing market to fully recover and work through the entire excess inventory that remains in the system.

It is also very likely that pre-recession housing values may indeed prove to be the peak for many areas of the country for years to come. Read more

Housing Market Shows 'Sustainable' Improvement

Housing Market Shows 'Sustainable' Improvement

Home sales and prices are ticking up, despite a sluggish economy. In fact, the rebound has economists predicting that housing will likely add to economic growth this year for the first time in seven years. 

Existing-home sales increased 2.3 percent in July and are up more than 10 percent compared to year-ago levels, the National Association of REALTORS® reported last week. What’s more, home prices soared 9.4 percent in July compared to last year at that time—to $187,300—marking the largest price gain in six-and-a-half years.  read more

Mortgage Rates Are on the Way Up

Mortgage Rates Are on the Way Up

DAILY REAL ESTATE NEWS | FRIDAY, AUGUST 24, 2012

Following several positive reports this week of a housing market gaining momentum this week, fixed-rate mortgages inched higher, Freddie Mac reports in its weekly mortgage market survey. This is the fourth consecutive week that mortgage rates have inched higher after reaching all-time lows just a month ago. Read more

REO Shadow Inventory Weighs on Market

Are Banks 'Hoarding Foreclosures'?

 



Fannie Mae and Freddie Mac are being accused by some housing analysts as purposely keeping some foreclosures off the market as the mortgage giants wait for housing prices to pick up more across the country, HousingWire reports.

 

About half of the foreclosed homes that Fannie Mae owns are on the market or being prepared to be listed soon. However, the other 47 percent of Fannie’s REO inventory is sitting in limbo and not on the market.

Housing groups, including the National Association of REALTORS®, are calling on officials to release more of their REOs in markets where inventories of for-sale homes have shrank.
Read more

July New Home Sales Improve, Prices Drop

July New Home Sales Improve, Prices Drop

 New home sales regained all the ground they lost in June, jumping by 13,000 to an annualized rate of 372,000 in July, the Census Bureau and HUD reported Thursday. Economists surveyed by Bloomberg expected the report to show a sales pace of 362,000. Sales for June were revised up to 359,000 from the originally reported 350,000.
Both the median and average sales price of a new home though dropped month-month and year-year according to the report, each falling to the lowest level since January.
The bump in sales was seen largely in the Northeast where the sales pace was reported as 30,000 up from 17,000 in June. In May the sales pace in the Northeast was 38,000. Given the wide swings in the region, the average of national sales might be a better indicator. The three month average of sales was 368,000 up from 359,000 in the previous three months and 303,000 in the May-June-July period one year ago. Read more

Buyers Want a Bargain?

Here's Their Chance!

Daily Real Estate News | Tuesday, August 21, 2012 

 

For home buyers who are looking for a chance to buy low, they may not want to drag their feet too much longer.

“Home prices have probably bottomed in most markets,” David Crowe, chief economist at the National Association of Home Builders, said in an NBC News-hosted Web chat with online visitors last week. “Mortgage rates are not likely to go down much further and will eventually rise as the economy recovers. Home builders are hungry and while you will still have to pay a fair price, you may not get a better bargain than now before all the rest of the demand comes back.” Read more

New Bill Brings Better Housing Benefits 4 Veterans

New Bill Brings Better Housing Benefits 4 Veterans

Earlier this month, President Obama signed a new bill into law with the intent of making much-needed changes to the VA Home Guaranty Program, as well as providing healthcare to the hundreds of thousands of Marines and Marine families that drank contaminated water at Camp Lejeune North Carolina – the Honoring America’s Veterans and Caring for Camp Lejeune Families Act. Read more

For Third Week, Mortgage Rates Inch Higher

For Third Week, Mortgage Rates Inch Higher

Daily Real Estate News | Friday, August 17, 2012

Fixed-rate mortgages once again inched up this week, the third consecutive week of increases after reaching all-time lows, Freddie Mac reports in its weekly mortgage market survey.

'The latest economic indicators point toward low inflation but gradually stronger economic activity which placed further upward pressure on long-term Treasury yields and, in turn, fixed mortgage rates,” Frank Nothaft, Freddie Mac’s chief economist, said about why mortgage rates have been reversing course in recent weeks. Read More

Inventories Hover at Historic Lows

Inventories Hover at Historic Lows

While buyer demand is picking up, many consumers increasingly are finding fewer choices in housing these days. The number of homes for sale continues to remain at record lows with the nationwide inventory of for-sale single-family homes, condos, townhomes, and co-ops is about 19 percent below inventory levels from a year ago, Realtor.com reports in its analysis of July housing data of 146 markets.
“Low inventories, combined with rising list prices and lower times on market, are positive signs that the overall market is in a stabilization mode,” Realtor.com reports.
Median asking prices were 2.63 percent above list prices in July, and the median age of the housing inventory has fallen about 9 percent in that time period, Realtor.com reports.Read more

NAR: Home Price Increase

NAR: Home Price Increase

Has Downsides as Inventory Dwindles

Limited inventory may be boosting home prices, but buyer choices are stifled in an increasing number of markets, the National Association of Realtors (NAR) reported Thursday.
The association’s latest quarterly report showed that the median existing single-family home price increased during Q2 in 110 out of 147 metropolitan statistical areas (MSAs) compared to the same period in 2011. Of the remaining 37 MSAs, 34 posted price declines, and three remained unchanged.
The national median existing single-family home price was $181,500 in Q2, up 7.3 percent from the same time in 2011. This is the strongest year-over-year increase since the first quarter of 2006. read more

Rising Home Prices

Rising Home Prices

Put a Dent in Housing Affordability

Daily Real Estate News | Wednesday, August 15, 2012

 

While housing bargains can still be found, home buyers are increasingly finding that home prices are on the rise in many markets. As such, housing affordability is being pushed lower, according to the second quarter Housing Opportunity Index by the National Association of Home Builders/Wells Fargo. Still, by historical standards, housing affordability remains high.

According to the latest index, 73.8 percent of all new and existing homes sold in the second quarter were affordable to families who earn the national median income of $65,000. A record high in housing affordability was reached in the first quarter, in which 77.5 percent of homes were affordable to median-income earners.

The index showed that 92 percent of the metros included in the index saw their median home prices rise in the second quarter compared to the first quarter. 'While interest rates and overall housing affordability remain very favorable on a historic basis, the decline in the latest HOI is a positive development because it is another signal that the housing recovery is starting to take root, and it lends needed confidence to prospective buyers and sellers who have been reluctant to move forward in the current marketplace,' says NAHB Chairman Barry Rutenberg. read more

4 Strong Reasons

4 Strong Reasons

To Buy a Home Now

Daily Real Estate News | Monday, August 13, 2012

“It’s hard to argue against buying a house now, assuming you can get a loan,” writes John Waggoner, a columnist with USA Today. Sure, Waggoner says that getting a credit check for approval of a mortgage can be a “only slightly less intrusive than a CIA background check,” but for those who are able to qualify, a lot of analysts say that now can be a good time to purchase a home. read more

Low Inventory

Low Inventory

Adding to Home Prices and Decreasing Days Listed

As homeowners hold back from selling, home prices are benefiting, according to a report from Redfin, which tracked home prices in 19 U.S. markets.

While prices remained flat month-over-month (-0.1 percent) from June to July, Redfin found prices rose 3.2 percent from July 2011 to July 2012.
However, the number of homes for sale fell 28.1 percent during the same one-year period and also declined 5 percent from June.

According to Redfin, the biggest challenge the housing market is facing is selection, and the problem will persist until the end of the year. read more

To Rent or Own:

To Rent or Own: How Consumers Decide Between the Two


By: Esther Cho 08/03/2012
In a study to examine what factors would drive a person to rent or own in their next move, Fannie Mae found that a mix of demographics and attitudinal drivers were key, while negative housing events appears to do little to thwart would-be buyers.
The study categorized respondents into three groups: renters, those with a mortgage, and outright homeowners.
After gathering demographics for the three groups, the study found that renters tended to be younger and fall into the low income category. For the survey, 46 percent of renters were in the 18 to 34 age group, and 43 percent of renters had an annual income under $25,000. Renters also tended to be single (41 percent) and employed part-time (47 percent).
Homeowners with a mortgage, on the other hand, were more likely to be in the 35-49 age group (41 percent), married (77 percent), and employed full-time (64 percent). They also tended to have a higher income, with 23 percent earning more than $100,000 and 39 percent earning between $50,000 to $100,000 thousand. read more

'Not Every Distressed

'Not Every Distressed               Property Is a Bargain'

 

Daily Real Estate News | Tuesday, August 07, 2012

 

Foreclosures can offer some home buyers big bargains, with the typical discount on a foreclosure about 19 percent, according to National Association of REALTORS® data from May. But buyers should be careful not to be guided by price alone, housing experts warn.

“Distressed properties can have great appeal,” says Wendy Forsythe, executive vice president at Atlantic Pacific Real Estate. “Discounted prices and historically low interest rates make these homes affordable to many families who might otherwise not be able to buy a property. But buyers also need to be selective because not every distressed property is a bargain.”

Home buyers need to be aware of some of the following issues with foreclosures before they buy, according to Atlantic Pacific Real Estate, a real estate brokerage with offices in 22 states: read more

8 Signs

8 Signs Housing Is on the Mend

Daily Real Estate News | Monday, August 06, 2012

Some Americans are still jittery over the housing market, but here are eight positive signs that should quell some of their fears.

1. Housing prices are on the rise across the country.
2. Foreclosures have slowed. Analysts suggest that as the supply of distressed homes slows, buyers will be forced into higher-price properties too.
3. Inventories of for-sale homes on the market are decreasing. In fact, inventories of for-sale homes have dropped 24 percent from a year ago.
4. Mortgage rates are at ultra record level lows, for those who can qualify
5. Housing starts rose 6.9 percent in June. Also, existing-home sales were up 4.5 percent higher in June compared to one year ago.
6. Home building stocks are on the rise.
7. For investors who are buying homes, rents are soaring, allowing them to cash in on their investments. Rental prices are at a 10-year high as median units rent for $710 a month.
8. Home affordability is at record highs for the median income family, due to falling home values and super low mortgage rates. In fact, a recent study found that it is cheaper to buy a home than rent in basically ever major city in the U.S. For those who buy, you can save the cost of renting by owning the home for five years or less. read more

Mortgage Rates Climb

Mortgage Rates Climb

After Months of Record Lows

Freddie Mac announced Thursday that after more than three months of record-low drops, mortgage rates slid up this week.
Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) averaged 3.55 percent (0.7 point) for the week ending August 2, up from 3.49 percent the previous week. Before this week, the average 30-year FRM had fallen to or matched record-low levels for 13 of the past 14 weeks.
The 15-year FRM also slid up, averaging 2.83 percent (0.6 point) from 2.80 percent last week.
In addition, the 5-year adjustable-rate mortgage (ARM) averaged 2.75 percent (0.6 point), a slight increase from the last survey’s finding of 2.74 percent. On the other hand, the 1-year ARM fell a bit, averaging 2.70 (0.4 point) from 2.71 percent a week ago. read more

Study:

Study:  Desire for Home Ownership Unswayed

Daily Real Estate News | Friday, August 03, 2012 

 

Eighty-five percent of Americans say they prefer home ownership over renting, according to a newly released Fannie Mae national housing survey of more than 12,000 interviews from 2011. The study finds that the housing and financial crisis has not been a big factor in Americans’ decisions to rent or buy.

'The nonfinancial benefits that people derive from the consumption of housing mitigate the negative financial experiences that many home owners have had,' says Steve Deggendorf, one of the authors of the study.

Instead, “for a large number of people, emotions rule. We need to think about how they approach the housing decision and think about the kind of help that they may need [in the process].”

The researchers note that it’s important to help Americans take a more conscious approach in their home-buying decisions, assisting them to better balance their “wants” in a home with what they can actually afford. The researchers add that buyers' emotions often lead them to ignore their practical ability to buy a home at all.read more

In Nearly Every Major City

In Nearly Every Major City

Buying Trumps Renting

Daily Real Estate News | Thursday, August 02, 2012

 

A new study shows that in more than three-fourths of 200 metro areas in the U.S., home owners would “break even” financially by owning a home after three years or less than if they opted to rent instead.
The recent study by Zillow factors in home ownership costs -- including down payments, closing costs, mortgage payments, property taxes, utilities, and maintenance costs -- and compares it to the costs of renting. The study supports other recent findings that show with rents are on the rise nationwide that home ownership is becoming increasingly affordable with record low mortgage rates and falling home values. read more

Rental Vacancies

Rental Vacancies

Lowest rate since 2002

Daily Real Estate News | Monday, July 30, 2012

Renters may struggle to find available apartments and rental homes in the current market. Nationally, the rental vacancy rate fell to 8.6 percent in the second quarter, the lowest second-quarter reading since 2002, the Department of Commerce Census Bureau reports.

The vacancy rate for rentals was the lowest in the Northeast at 6.7 percent, according to the Commerce Department. Rental vacancies are the highest —11 percent—in the South.
Meanwhile, the asking rent for the second quarter did get a little cheaper in the second quarter at $716, compared to a $721 average in the first quarter. read more