Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), and again, the fixed-rate mortgages reaching, along with the 5-year adjustable rate, set record lows for this survey. (The 30-year fixed-rate survey began in 1971, the 15-year began in 1991, and the 5-year adjustable in 2005.)
30-year fixed-rate mortgage (FRM) averaged 4.44 percent with an average 0.7 point for the week ending August 12, 2010, down from last week when it averaged 4.49 percent. Last year at this time, the 30-year FRM averaged 5.29 percent.
15-year FRM this week averaged a record low of 3.92 percent with an average 0.6 point, down from last week when it averaged 3.95 percent. A year ago at this time, the 15-year FRM averaged 4.68 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.56 percent this week, with an average 0.7 point, down from last week when it averaged 3.63 percent. A year ago, the 5-year ARM averaged 4.75 percent.
1-year Treasury-indexed ARM averaged 3.53 percent this week with an average 0.7 point, down from last week when it averaged 3.55 percent. At this time last year, the 1-year ARM averaged 4.72 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, reports, "Interest rates for fixed mortgages and 5-year hybrid ARMs again broke record lows this week following reports of a sluggish job market. Private payrolls increased by 71,000 jobs in July, below the market consensus forecast, and revisions shaved June's growth by 34,000 workers. The Federal Reserve also noted in its August 10th policy statement that the pace of recovery in output and employment slowed since its last meeting in June."
He continues, "Low rates are helping to heal many battered local housing markets by increasing home-purchase activity. The National Association of Realtors® reported that 65 percent of the 155 metropolitan areas they track experienced yearly increases in the second quarter of this year. This compares to 60 percent of areas in the first quarter and only 44 percent in the fourth quarter of 2009."
http//www.oreinternationalrealty.com
Friday, August 13, 2010
Thursday, August 12, 2010
Future of the Housing Market
Home prices increased from April to May of this year by 1.3 percent, according to the Standard & Poor's/Case-Shiller 20-city home price index. The credit for this largely goes to the government's home buyer tax credit, which expired at the end of April.
The general thought out there seems to be that the housing market has been bolstered by the tax credit--which was the point--and now will come tumbling down again. Maybe not, says University of Chicago economist Casey Mulligan. Even the home price index report points out that May is historically a strong month for home sales.
The Home Buyer Tax Credit was part of the American Recovery and Reinvestment Act of 2009, which passed in February of 2009. The tax credit was originally an incentive for first time home buyers, but later was extended to include qualifying home owners purchasing a new home. Reporting on the New York Times Economix blog, Mulligan suggests the math is faulty when it comes to crediting this tax credit for the latest rise in the housing market.
Mulligan cites Internal Revenue Service reports that show that the average home buyer's tax credit was around $6,000, not much when compared to the price of a home. Also, only $19 billion in tax credits have been claimed so far, which Mulligan considers to be a drop in the housing bucket when compared to the $14 trillion worth of owner-occupied houses in the United States.
Mulligan contends that the impact of the credit isn't big enough to bolster the housing market. Not as many people took advantage of it as could have and it needs to be evaluated in the context of the larger market. Yet, real estate agents, mortgage lenders and economists are fearing the worst now that the home buyer credit will expire.
It is reported that nationally home prices have risen 5.1 percent from the bottom of the housing bust in April 2009. However, overall house prices are 29 percent lower than the height of the housing bubble in July 2006. While the percentages are vastly different across the county--Las Vegas home prices are still dropping--the housing market seems to be one sector of the economy where steady progress has been made.
Recovery can be agonizingly slow and panic can be easier to feel than patience. But as Mulligan points out, housing is a long term investment. Pinning the hopes of the housing market on the one-time, nominal return of a tax credit may not be realistic. Maybe time will show it to be the tiny jolt the recovering housing market needed, not the sugar high of a falling market.
http//www.oreinternationalrealty.com
The general thought out there seems to be that the housing market has been bolstered by the tax credit--which was the point--and now will come tumbling down again. Maybe not, says University of Chicago economist Casey Mulligan. Even the home price index report points out that May is historically a strong month for home sales.
The Home Buyer Tax Credit was part of the American Recovery and Reinvestment Act of 2009, which passed in February of 2009. The tax credit was originally an incentive for first time home buyers, but later was extended to include qualifying home owners purchasing a new home. Reporting on the New York Times Economix blog, Mulligan suggests the math is faulty when it comes to crediting this tax credit for the latest rise in the housing market.
Mulligan cites Internal Revenue Service reports that show that the average home buyer's tax credit was around $6,000, not much when compared to the price of a home. Also, only $19 billion in tax credits have been claimed so far, which Mulligan considers to be a drop in the housing bucket when compared to the $14 trillion worth of owner-occupied houses in the United States.
Mulligan contends that the impact of the credit isn't big enough to bolster the housing market. Not as many people took advantage of it as could have and it needs to be evaluated in the context of the larger market. Yet, real estate agents, mortgage lenders and economists are fearing the worst now that the home buyer credit will expire.
It is reported that nationally home prices have risen 5.1 percent from the bottom of the housing bust in April 2009. However, overall house prices are 29 percent lower than the height of the housing bubble in July 2006. While the percentages are vastly different across the county--Las Vegas home prices are still dropping--the housing market seems to be one sector of the economy where steady progress has been made.
Recovery can be agonizingly slow and panic can be easier to feel than patience. But as Mulligan points out, housing is a long term investment. Pinning the hopes of the housing market on the one-time, nominal return of a tax credit may not be realistic. Maybe time will show it to be the tiny jolt the recovering housing market needed, not the sugar high of a falling market.
http//www.oreinternationalrealty.com
Wednesday, August 11, 2010
Miami Existing Home Sales Rise
Miami Existing Home Sales Rise, Home Prices Edge Up in 2Q
11 August 2010 No Comment
In the Miami Metropolitan Statistical Area (MSA), sales of homes – including existing single-family homes and condominiums – increased 27 percent in the second quarter of 2010 compared to the second quarter of 2009 and 53 percent compared to the second quarter of 2008. This rise marks eight consecutive quarters of increasing sales according to the MIAMI REALTORS. Sales of all residential property types have increased consistently since August 2008 in the Miami MSA.
Miami sales of existing single-family homes increased 10 percent in the second quarter of 2010 from a year earlier and 89 percent from two years ago. The sales of existing condominiums in Miami surged 45 percent, compared to the second quarter of 2009 and 99 from the second quarter in 2008. Statewide sales of single-family homes and condominiums increased 21 percent and 45 percent respectively.
“These quarterly figures reflect the fact that the South Florida real estate market continues to strengthen and stabilize,” says Jack H. Levine, 2010 Chairman of the Board of the MIAMI REALTORS. “Sales of condominiums have really taken off as buyers and investors take advantage of record affordability conditions. This will result in much needed inventory absorption, which will further enhance the local market’s performance.”
Median Sales Prices
Median sales prices of single-family homes increased slightly while condominiums decreased slightly in the second quarter of 2010, mainly due to the increased number of foreclosures and short sales. The median sales price for single-family homes reported in Miami-Dade in the second quarter of 2010 was $197,200, a one percent increase from the second quarter of 2009. The median sales price for condominiums was $128,100, an eight percent decrease from the previous year. Statewide, median sales prices dropped one percent to $141,300 for single-family homes and 10 percent to $98,900 for condominiums.
Inventory Levels
Total housing inventory in Miami-Dade County has decreased 10 percent from a year ago and increased 4.4 percent from the previous quarter. In Broward County, inventory has decreased 14 percent from a year ago and increased 3.3 percent from the previous quarter.
“Housing inventory continues to drop year-over-year, but we’re seeing the total inventory rise slightly month-to-month in the short-term,” says Oliver Ruiz, MIAMI REALTORS Residential President. “The good news is that we continue to experience rising sales and stabilizing prices. We expect the local market’s fortitude to be sustained long-term by international, vacation, and second home buyers in addition to other U.S. buyers who want to experience the enviable local lifestyle.”
http//www.oreinternationalrealty.com
11 August 2010 No Comment
In the Miami Metropolitan Statistical Area (MSA), sales of homes – including existing single-family homes and condominiums – increased 27 percent in the second quarter of 2010 compared to the second quarter of 2009 and 53 percent compared to the second quarter of 2008. This rise marks eight consecutive quarters of increasing sales according to the MIAMI REALTORS. Sales of all residential property types have increased consistently since August 2008 in the Miami MSA.
Miami sales of existing single-family homes increased 10 percent in the second quarter of 2010 from a year earlier and 89 percent from two years ago. The sales of existing condominiums in Miami surged 45 percent, compared to the second quarter of 2009 and 99 from the second quarter in 2008. Statewide sales of single-family homes and condominiums increased 21 percent and 45 percent respectively.
“These quarterly figures reflect the fact that the South Florida real estate market continues to strengthen and stabilize,” says Jack H. Levine, 2010 Chairman of the Board of the MIAMI REALTORS. “Sales of condominiums have really taken off as buyers and investors take advantage of record affordability conditions. This will result in much needed inventory absorption, which will further enhance the local market’s performance.”
Median Sales Prices
Median sales prices of single-family homes increased slightly while condominiums decreased slightly in the second quarter of 2010, mainly due to the increased number of foreclosures and short sales. The median sales price for single-family homes reported in Miami-Dade in the second quarter of 2010 was $197,200, a one percent increase from the second quarter of 2009. The median sales price for condominiums was $128,100, an eight percent decrease from the previous year. Statewide, median sales prices dropped one percent to $141,300 for single-family homes and 10 percent to $98,900 for condominiums.
Inventory Levels
Total housing inventory in Miami-Dade County has decreased 10 percent from a year ago and increased 4.4 percent from the previous quarter. In Broward County, inventory has decreased 14 percent from a year ago and increased 3.3 percent from the previous quarter.
“Housing inventory continues to drop year-over-year, but we’re seeing the total inventory rise slightly month-to-month in the short-term,” says Oliver Ruiz, MIAMI REALTORS Residential President. “The good news is that we continue to experience rising sales and stabilizing prices. We expect the local market’s fortitude to be sustained long-term by international, vacation, and second home buyers in addition to other U.S. buyers who want to experience the enviable local lifestyle.”
http//www.oreinternationalrealty.com
FHA Launches Short Refi Opportunities fo Underwater Homeowners
RISMEDIA, August 9, 2010--In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth – or ‘underwater’ – because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.
“We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,” said FHA Commissioner David H. Stevens. “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”
FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA’s refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner’s primary residence. And the borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower’s combined loan-to-value ratio to no greater than 115%.
In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
http//www.oreinternationalrealty.com
The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth – or ‘underwater’ – because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.
“We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,” said FHA Commissioner David H. Stevens. “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”
FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA’s refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner’s primary residence. And the borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower’s combined loan-to-value ratio to no greater than 115%.
In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.
To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
http//www.oreinternationalrealty.com
Tuesday, August 10, 2010
Some Mortgage Lenders Will Accept A Short Sale
There are many ways to lose a home but signing away ownership in a manner that wrecks credit, embarrasses the family and strips an owner of dignity is just about the toughest. For owners who can no longer afford to keep mortgage payments current, there are options to bankruptcy or foreclosure proceedings. One particular options is named a "short sale."
When lenders agree to such sale in real estate, it signifies the lender is agreeing to under the total amount due. Not all lenders will take these types of offers or discounted payoffs, particularly if it would make more financial sense to foreclose; additionally, not every seller nor all properties are eligible.
If you are contemplating this type of transaction, there might be drawbacks. For your protection, it is advised that all borrowers:
1. Obtain legal assistance from a skilled real estate lawyer.
2. Call up an accountant go over short sale tax outcomes.
Note for certain conditions pertaining to the Mortgage Forgiveness Debt Relief Act of 2007, remember the I.R.S. will look at debt forgiveness as income, and there's no promise that a lender who welcomes a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In certain states, this amount is recognized as a deficiency. A lawyer can determine whether or not your loan qualifies for a deficiency judgment or claim.
Though all lenders have different specifications and may possibly require that a borrower provide a variety of documentation, the following actions will provide you with a pretty good indication of what to prepare for.
Phone the Lender You may need to make many phone calls before you find the person in charge of dealing with these matters. You don't wish to go to the "real estate short sale" or "work out" department, you want the supervisor's name, the name of the person able to making a decision.
Send In Letter of Authorization Lenders usually don't want to make known any of your personal information without written agreement to do so. If you are working with a real estate agent, closing agent, title company or lawyer, you'll acquire far better co-operation if you write a letter to the lender giving the lender permission to talk with those certain interested parties about your loan.
When lenders agree to such sale in real estate, it signifies the lender is agreeing to under the total amount due. Not all lenders will take these types of offers or discounted payoffs, particularly if it would make more financial sense to foreclose; additionally, not every seller nor all properties are eligible.
If you are contemplating this type of transaction, there might be drawbacks. For your protection, it is advised that all borrowers:
1. Obtain legal assistance from a skilled real estate lawyer.
2. Call up an accountant go over short sale tax outcomes.
Note for certain conditions pertaining to the Mortgage Forgiveness Debt Relief Act of 2007, remember the I.R.S. will look at debt forgiveness as income, and there's no promise that a lender who welcomes a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid. In certain states, this amount is recognized as a deficiency. A lawyer can determine whether or not your loan qualifies for a deficiency judgment or claim.
Though all lenders have different specifications and may possibly require that a borrower provide a variety of documentation, the following actions will provide you with a pretty good indication of what to prepare for.
Phone the Lender You may need to make many phone calls before you find the person in charge of dealing with these matters. You don't wish to go to the "real estate short sale" or "work out" department, you want the supervisor's name, the name of the person able to making a decision.
Send In Letter of Authorization Lenders usually don't want to make known any of your personal information without written agreement to do so. If you are working with a real estate agent, closing agent, title company or lawyer, you'll acquire far better co-operation if you write a letter to the lender giving the lender permission to talk with those certain interested parties about your loan.
Stop Foreclosure With A Short Sale
Are you presently undergoing the trauma of trying to save your home from bank foreclosure? If yes, then you can get over it. With the right approach, you can stop foreclosure on your home with ease. One of the ways you can save your home from the clutches of foreclosure is to opt for short sale. This is a process whereby you sell the home below the value of your existing mortgage debt. Now you might be wondering how this works. This article offers helpful hints on how short sale works so you can go for it and put that trauma of eventually losing your home behind you.
Short sale to stop foreclosure should be considered if you want to keep your home. It is a process where you ask a lender to accept an amount that you will sell your home for, to pay off your mortgages. This amount could be less than what is owed. The reason for short selling the home could be that the value of your home is now less than your existing arrears.
There are two ways to short sale your home. One is when you buy the home yourself, and the second way is by using a third party. The lender or bank may prefer to go for third party buyer. A Realtor or investor acting as the third party should be acknowledged by the lender or bank.
The benefit of going for short sale is that it can afford you the chance of re-buying the home yourself. If you find out that the value of your home is less than your outstanding mortgage this option would suit you. Nevertheless, the lender or bank is not obligated to accept your offer of short-sale. The lender will accept a short sale offer at their discretion.
On the down side, short-sale may have negative impact on your credit record yet it would not be as bad as the damage foreclosure will do to your record. Bankers or lenders may also prefer the shortfall options because of the less expenses involved. The foreclosure process cost more for the lender than short sale.
Short-sale can help you stop foreclosure quickly if carried in the right manner. Ensure that you are able to convince the lender on this. That trauma of impending foreclosure can be stopped if you start thinking of going ahead with this option, starting today. Better still, talk to a good foreclosure attorney to give you more guide on how to go about the process in trying to stop the impending foreclosure on your home.
Posted by: Ivis Sardinas, Realtor
http//www.oreinternationalrealty.com
Short sale to stop foreclosure should be considered if you want to keep your home. It is a process where you ask a lender to accept an amount that you will sell your home for, to pay off your mortgages. This amount could be less than what is owed. The reason for short selling the home could be that the value of your home is now less than your existing arrears.
There are two ways to short sale your home. One is when you buy the home yourself, and the second way is by using a third party. The lender or bank may prefer to go for third party buyer. A Realtor or investor acting as the third party should be acknowledged by the lender or bank.
The benefit of going for short sale is that it can afford you the chance of re-buying the home yourself. If you find out that the value of your home is less than your outstanding mortgage this option would suit you. Nevertheless, the lender or bank is not obligated to accept your offer of short-sale. The lender will accept a short sale offer at their discretion.
On the down side, short-sale may have negative impact on your credit record yet it would not be as bad as the damage foreclosure will do to your record. Bankers or lenders may also prefer the shortfall options because of the less expenses involved. The foreclosure process cost more for the lender than short sale.
Short-sale can help you stop foreclosure quickly if carried in the right manner. Ensure that you are able to convince the lender on this. That trauma of impending foreclosure can be stopped if you start thinking of going ahead with this option, starting today. Better still, talk to a good foreclosure attorney to give you more guide on how to go about the process in trying to stop the impending foreclosure on your home.
Posted by: Ivis Sardinas, Realtor
http//www.oreinternationalrealty.com
Subscribe to:
Posts (Atom)