By Ilyce Glink of CBS Money Watch
What does the U.S. housing market look like without all the life support provided by the federal government?
A little too much like a corpse.
In the wake of the 27 percent drop in existing home sales announced by the National Association of Realtors (NAR) earlier this week to a level last seen 15 years ago, and a 12.1 percent drop in new home sales to a level not ever seen since records started being kept in 1963, Department of Housing and Urban Development (HUD) Secretary Shaun Donovan took to the airwaves this morning to announce that the federal government was going to do everything in its power to restart the housing market, including:
New mortgage program for unemployed borrowers. Apparently the HAMP unemployed borrowers program isn’t exactly catching on fire with lenders.
New FHA refinance program for homeowners who are underwater. Gee, HAMP isn’t working there too well, so perhaps HUD is going to take the very savvy suggestion made by Bill Gross at PIMCO and perhaps refinance all homeowners who are current on their loans to an FHA loan at 4 percent. If 10 million Americans can take advantage of an FHA refinance and lower their payments by $100 per month, the government is betting that at least SOME of that money will find its way into economic firmament, and help pull us out of the recession.
New home buyer tax credits. Donovan didn’t exactly say “Yes” to this one, but he hasn’t ruled it out either.
Let’s just call it like it is, folks. The real estate market is in a depression. It’s not a recession when your sales are down 80 percent or more. It’s not a recession when you’ve wound back sales to where they were 15 years ago.
Will any of these programs pull the housing market out of its depression? I doubt it. As I said more than a year ago, what we need are jobs. Jobs pay the bills - mortgage, credit card, utilities, food, etc. If you don’t have a job, all the government refinancing programs in the world aren’t going to make a difference.
Showing posts with label shop for rates. Show all posts
Showing posts with label shop for rates. Show all posts
Sunday, August 29, 2010
Friday, August 27, 2010
OPEN HOUSE In CARLSBAD CA. 8/28-8/29
3016 Rancho La Presa Carlsbad, CA. 92009. Come on down and view this delightful twinhome with a downstairs Master Suite on a quiet cul-de-sac in wonderful Rancho Carrillo. This great home with a flexible floor plan features 2 upstairs bedrooms plus a large loft (great as an office, library, gym - you name it), spacious living room w/ soaring ceilings, & an open kitchen (with granite counters) w/ views to the private backyard. You'll enjoy the ease of the downstairs tile floors & the low maintenance yard. Plus, enjoy all that Rancho Carrillo has to offer!
Friday, August 13, 2010
Mortgage Rates Still Falling
By ANDREW KEATTS, The Daily Transcript
Monday, August 9, 2010
Mirroring the national trend, average mortgage rates continued to fall in San Diego County during the week ending Aug. 6, according to numbers released by the San Diego Chapter of the California Association of Mortgage Professionals (SD-CAMP).
A 30-year fixed mortgage in San Diego carries an average interest rate of 4.075 percent, down from 4.1 percent last week. Interest on 15-year fixed loans remained at 3.725 percent.
Freddie Mac (NYSE: FRE) reported last week that 30-year fixed loans during the same period hit an all-time low of 4.49 percent, down from 4.45 percent the week previous and 5.22 percent a year ago.
Interest rates for 15-year fixed mortgages during the period were 3.95 percent, down from 4 percent a week ago and 4.63 percent a year ago.
Conventional seven-year ARM rates remained at 3.25 percent in the county. Rates on five- and three-year ARMs were 2.95 and 2.925 percent, down from the previous week when both were 3.031 percent.
Thirty-year fixed FHA and VA loans were both 4.225 percent, up from the week previous when FHA loans were 4.175 percent and VA loans were 4.188 percent.
"This is a continuation of the national trend with slight adjustments," said David Van Waldick, president elect for 2011 of SD-CAMP and principal of Western Mortgage in Carlsbad, adding that the averages can be affected in any given week by market conditions or an individual lender’s position.
Warning that predicting short-term fluctuations of mortgage rates is difficult because they are affected by global economic developments, Van Waldick said he could envision rates continuing to decline, setting 3.5 percent on a 30-year fixed loan as the absolute basement.
"You could argue that given government stimulus and bank borrowing rates, that we’d see rates lower still," he said. "With the Fed charging banks at essentially 0 percent interest, you could say they should be passing this on to consumers. Clearly banks seem to be holding a little juice in their own pockets."
He said the increases in rates for FHA and VA loans could be attributed to adjustments from individual lenders, but speculated that they might be the result of the Department of Housing and Urban Development’s announcement last week that it would reduce upfront premiums on FHA loans while increasing monthly premiums.
The averages reflect the published rates of five major mortgage lenders or banks in San Diego County for each of the six mortgage types.
Marsha Lenyk, president of Award Mortgage Inc. compiled the rates on Friday, Aug. 6.
SD-CAMP’s averages assume a loan amount up to the conforming loan limit of $417,000, a maximum loan-to-value of 80 percent and an interest rate with one point origination fee for borrowers with a minimum credit score of 720 -- with fully documented income for a single-family, detached, owner-occupied, primary residence
Monday, August 9, 2010
Mirroring the national trend, average mortgage rates continued to fall in San Diego County during the week ending Aug. 6, according to numbers released by the San Diego Chapter of the California Association of Mortgage Professionals (SD-CAMP).
A 30-year fixed mortgage in San Diego carries an average interest rate of 4.075 percent, down from 4.1 percent last week. Interest on 15-year fixed loans remained at 3.725 percent.
Freddie Mac (NYSE: FRE) reported last week that 30-year fixed loans during the same period hit an all-time low of 4.49 percent, down from 4.45 percent the week previous and 5.22 percent a year ago.
Interest rates for 15-year fixed mortgages during the period were 3.95 percent, down from 4 percent a week ago and 4.63 percent a year ago.
Conventional seven-year ARM rates remained at 3.25 percent in the county. Rates on five- and three-year ARMs were 2.95 and 2.925 percent, down from the previous week when both were 3.031 percent.
Thirty-year fixed FHA and VA loans were both 4.225 percent, up from the week previous when FHA loans were 4.175 percent and VA loans were 4.188 percent.
"This is a continuation of the national trend with slight adjustments," said David Van Waldick, president elect for 2011 of SD-CAMP and principal of Western Mortgage in Carlsbad, adding that the averages can be affected in any given week by market conditions or an individual lender’s position.
Warning that predicting short-term fluctuations of mortgage rates is difficult because they are affected by global economic developments, Van Waldick said he could envision rates continuing to decline, setting 3.5 percent on a 30-year fixed loan as the absolute basement.
"You could argue that given government stimulus and bank borrowing rates, that we’d see rates lower still," he said. "With the Fed charging banks at essentially 0 percent interest, you could say they should be passing this on to consumers. Clearly banks seem to be holding a little juice in their own pockets."
He said the increases in rates for FHA and VA loans could be attributed to adjustments from individual lenders, but speculated that they might be the result of the Department of Housing and Urban Development’s announcement last week that it would reduce upfront premiums on FHA loans while increasing monthly premiums.
The averages reflect the published rates of five major mortgage lenders or banks in San Diego County for each of the six mortgage types.
Marsha Lenyk, president of Award Mortgage Inc. compiled the rates on Friday, Aug. 6.
SD-CAMP’s averages assume a loan amount up to the conforming loan limit of $417,000, a maximum loan-to-value of 80 percent and an interest rate with one point origination fee for borrowers with a minimum credit score of 720 -- with fully documented income for a single-family, detached, owner-occupied, primary residence
Saturday, August 7, 2010
Over Priced Homes Don't Sell Well
Overpriced Homes-Sell Slower and For Less If there’s anything we can take away from the plethora of Bank Owned Foreclosures is they certainly know how to price a home to move!
I maintain that you almost always shoot yourself in the foot by overpricing your home. Your home will almost always sale at or above market value by pricing at or below market value.
So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.
So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.
“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)
“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)
Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!
The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.
Copyright © 2010 By Stephen Munson,Munson RealtyPasadena|Overpriced Homes-Sell Slower and For Less*overpriced homes,overpriced house
I maintain that you almost always shoot yourself in the foot by overpricing your home. Your home will almost always sale at or above market value by pricing at or below market value.
So why is that? Well think back at when YOU were buying a home. Remember when a “great deal” came on the market and everybody and their agents were “swarming” to the open house? You placed your offer only to find out their were 10 other offers and they were going above the asking price? This “bargain price” created an auction affect and got people excited. THAT is how banks are pricing their homes and if you want your home to move quickly and for the most amount of money, this is a winning strategy.
So why don’t sellers do it? I think it’s because there’s a little voice inside of our head (and pocketbook) that says “what if”.
“What if”- I can get $50K over market value. (even if someone were excited enough about your home to pay $50K over appraised value, their lender won’t loan the money if the value isn’t there. No loan, no buyer)
“What if”- I don’t get multiple offers and I only get one offer (May be still overpriced!)
Often fear (and greed) hold us back from making smart choices! Don’t feel bad though, even Real Estate Agents are guilty of senselessly overpricing their homes. Somehow when it’s our turn to sell all of our “market knowledge” becomes goo and leaks out of our ears! It’s like the hairdresser with bad hair!
The bottom line is, almost always, an Over Priced House will sit on the market longer and sell for less than it should have had it been priced strategically from the beginning.
Copyright © 2010 By Stephen Munson,Munson RealtyPasadena|Overpriced Homes-Sell Slower and For Less*overpriced homes,overpriced house
Friday, August 6, 2010
Mortgage Rate Falls Under 4.5%
Freddie Mac reports that long-term mortgage rates moved south again this week.
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
Source: The Wall Street Journal, Amy Hoak and Nick Timiraos (08/06/10)
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
Source: The Wall Street Journal, Amy Hoak and Nick Timiraos (08/06/10)
Monday, August 2, 2010
Prudential Real Estate Ranks Highest for Seller Satisfaction
J.D. Power and Associates announced July 28 that the Prudential Real Estate Network ranked “Highest Overall Satisfaction for Home Sellers among National Full Service Real Estate Firms” in J.D. Power and Associates' 2010 Home Buyer/Seller Study. This marks the second time in three years that the Network ranked highest in seller satisfaction.
The annual study measures customer satisfaction of home sellers and buyers with major national real estate companies. Overall satisfaction is determined by examining four factors for the home-selling experience: agent (44%); marketing (30%); office (15%); and services (11%). Among home sellers, Prudential Real Estate scored highest on a 1,000-point scale and received particularly high ratings from customers in the marketing and agent factors.
PRERS Chairman Jim Mallozzi said the award speaks for the quality and consistency of the Prudential Real Estate Network. “Affiliate to affiliate, our sales professionals are the local-market experts who market and price homes right, while providing attentive service,” Mallozzi said.
The annual study measures customer satisfaction of home sellers and buyers with major national real estate companies. Overall satisfaction is determined by examining four factors for the home-selling experience: agent (44%); marketing (30%); office (15%); and services (11%). Among home sellers, Prudential Real Estate scored highest on a 1,000-point scale and received particularly high ratings from customers in the marketing and agent factors.
PRERS Chairman Jim Mallozzi said the award speaks for the quality and consistency of the Prudential Real Estate Network. “Affiliate to affiliate, our sales professionals are the local-market experts who market and price homes right, while providing attentive service,” Mallozzi said.
Monday, July 19, 2010
Buyers Should Shop For The Best Rate
Anyone shopping for a new mortgage these days should shop around, says Cameron Findlay, chief economist for LendingTree.
Although mortgage rates look astoundingly low, the spread between what the bank receives and what it pays investors has actually increased, giving banks more room to negotiate.
Applicants with good credit scores should aggressively seek the best rates they can find by comparison shopping, starting with the bank they usually do business with.
Source: The New York Times, Jennifer Saranow Schultz (07/17/2010)
Although mortgage rates look astoundingly low, the spread between what the bank receives and what it pays investors has actually increased, giving banks more room to negotiate.
Applicants with good credit scores should aggressively seek the best rates they can find by comparison shopping, starting with the bank they usually do business with.
Source: The New York Times, Jennifer Saranow Schultz (07/17/2010)
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