Rates on 30-year home loans surged above 5 percent for the first time in nearly three months this week as investors pushed up rates on long-term government debt, which is closely tied to mortgage rates.
Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages rose to 5.29 percent this week, from an average of 4.91 percent a week earlier. It was the highest weekly average in nearly six months.
Higher rates could endanger any recovery in the housing market since borrowers would be able to borrow less money and might decide to hold off on their purchases.
Saturday, June 06, 2009
Thursday, June 04, 2009
It's now easier to challenge your property tax bill!
It just got easier to get the assessed value of any property that you own lowered if you feel there is cause. The process is involved but it got a little easier today when Gov. Charlie Crist signed a bill that makes it easier to challenge how much a property is worth.
The bill lowers the burden of proof for owners who dispute property tax assessments to a preponderance of the evidence – a lower standard than the clear and convincing threshold they now must meet to overturn a property appraiser’s estimate.
Local governments had successfully stopped earlier efforts to lower the standard. In the just-signed version, property appraisers still enjoy the presumption that their estimates are correct, but the legislative analysts say the bill will cost local governments $157 million during the current fiscal year, increasing to $693 million a year by 2013.
The bill lowers the burden of proof for owners who dispute property tax assessments to a preponderance of the evidence – a lower standard than the clear and convincing threshold they now must meet to overturn a property appraiser’s estimate.
Local governments had successfully stopped earlier efforts to lower the standard. In the just-signed version, property appraisers still enjoy the presumption that their estimates are correct, but the legislative analysts say the bill will cost local governments $157 million during the current fiscal year, increasing to $693 million a year by 2013.
Monday, June 01, 2009
Mortgage rates rising!
Mortgage rates at some lenders spiked by as much as 1 percent last Wednesday and saw little relief on Thursday, according to mortgage brokers.
“The 4.75 percent my broker quoted two weeks ago? There’s no way I’m going to get that now.”
The fear dogging homeowners and investors alike is that April’s record lows in mortgage rates may have come and gone.
The stock market has rallied since early March on the assumption the economy will rebound later this year. Federal Reserve Chairman Ben Bernanke has been calling early signs of economic stabilization “green shoots” – and one of those shoots was a pickup in refinancing activity caused by tumbling mortgage rates.
But mortgage rates have rebounded sharply over the past few days as the nation’s growing debt raises concerns that government-backed assets could lose some of their value. It’s a trend that could slow both refinancing and home buying if it continues. Higher mortgage rates won’t necessarily derail the economy’s recovery, analysts say, but it certainly won’t help.
The average rate for a 30-year fixed mortgage is back at 4.91 percent this week, up from 4.82 percent last week, Freddie Mac said Thursday.
“The 4.75 percent my broker quoted two weeks ago? There’s no way I’m going to get that now.”
The fear dogging homeowners and investors alike is that April’s record lows in mortgage rates may have come and gone.
The stock market has rallied since early March on the assumption the economy will rebound later this year. Federal Reserve Chairman Ben Bernanke has been calling early signs of economic stabilization “green shoots” – and one of those shoots was a pickup in refinancing activity caused by tumbling mortgage rates.
But mortgage rates have rebounded sharply over the past few days as the nation’s growing debt raises concerns that government-backed assets could lose some of their value. It’s a trend that could slow both refinancing and home buying if it continues. Higher mortgage rates won’t necessarily derail the economy’s recovery, analysts say, but it certainly won’t help.
The average rate for a 30-year fixed mortgage is back at 4.91 percent this week, up from 4.82 percent last week, Freddie Mac said Thursday.
Saturday, February 14, 2009
Tax Credit to 1st Time Homebuyers
The new tax credit in the stimulus bill expected to be signed this week will do little to boost the real estate market.
It allows first time home buyers to deduct 10% of the purchase price, up to $8,000.00, from taxes owed. While this will benefit some, my experience with first time home buyers is that the majority receive a refund. The headline sounds good, but in my opinion will do nothing to increase home sales.
It allows first time home buyers to deduct 10% of the purchase price, up to $8,000.00, from taxes owed. While this will benefit some, my experience with first time home buyers is that the majority receive a refund. The headline sounds good, but in my opinion will do nothing to increase home sales.
Tuesday, January 27, 2009
Market News
December sales were up around 25% from the prior month but down by about the same amount for January.
While some buyers feel the time is right, interest rates hovering around 5.25% to 5.5%, and a large inventory of homes including foreclosures and short sales, others still are concerned with the economy, possible job loss, and the thought that maybe we have not bottomed out on home values.
Speculation that rates could drop more is also a driving factor of the fence sitters.
While some buyers feel the time is right, interest rates hovering around 5.25% to 5.5%, and a large inventory of homes including foreclosures and short sales, others still are concerned with the economy, possible job loss, and the thought that maybe we have not bottomed out on home values.
Speculation that rates could drop more is also a driving factor of the fence sitters.
Saturday, December 06, 2008
Monthly Sales Report
Sales of homes in the MLS for the tri-county area dropped for the third month in a row. Closings reported between 10-26-08 thru 11-25-08 totaled 2,088.
Almost half of the sales were under $150,000. That is almost twice the amount of homes sold at that price point during the same period last year and while prices have dropped dramatically, sales continue to mirror the previous years activity. Last year total sales during the same period totaled 1,886.
Almost half of the sales were under $150,000. That is almost twice the amount of homes sold at that price point during the same period last year and while prices have dropped dramatically, sales continue to mirror the previous years activity. Last year total sales during the same period totaled 1,886.
4.5% interest rates could spur home sales.
There is talk of reducing interest rates for homeowners to 4.5%. The plan is outlined below. The problem I see is buyers with great credit are still having trouble getting loans. Banks just don't want to lend. A lower interest rate could spur activity, but will they be able to secure the financing and actually buy???
Under a Treasury plan, lenders could sell newly issued mortgage-backed securities to the government provided the interest-rate on the loans collateralizing the securities was no higher than 4.5 percent. To pay for the plan, the Treasury would issue bonds at 3 percent, creating a 1.5-percent spread that it could use for buying the securities. Those securities would then be purchased by secondary mortgage market companies Fannie Mae and Freddie Mac, which are under federal conservatorship. To date, tens of thousands of Realtors have sent letters to their members of Congress asking for quick action to help housing, which is widely considered a crucial first step to a broader economic recovery. Some analysts have calculated that an interest-rate buydown could help as many as 2.5 million households.
Under a Treasury plan, lenders could sell newly issued mortgage-backed securities to the government provided the interest-rate on the loans collateralizing the securities was no higher than 4.5 percent. To pay for the plan, the Treasury would issue bonds at 3 percent, creating a 1.5-percent spread that it could use for buying the securities. Those securities would then be purchased by secondary mortgage market companies Fannie Mae and Freddie Mac, which are under federal conservatorship. To date, tens of thousands of Realtors have sent letters to their members of Congress asking for quick action to help housing, which is widely considered a crucial first step to a broader economic recovery. Some analysts have calculated that an interest-rate buydown could help as many as 2.5 million households.
Tuesday, November 11, 2008
Foreclosure news
Banks are stepping up their efforts to curtail losses from souring mortgages, with Citigroup Inc. becoming the latest institution to adopt initiatives aimed at helping at-risk borrowers remain in their homes.
With defaults mounting, lenders including JPMorgan Chase & Co. and Bank of America Corp. have become more aggressive about modifications to mortgage agreements. The government is also working on an ambitious plan to help around 3 million borrowers avoid foreclosure, but details have yet to be released.
More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.
Citigroup announced late Monday that it won't initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home if it is the borrower's principal residence, the homeowner is working in good faith with Citi and has sufficient income to make affordable mortgage payments.
With defaults mounting, lenders including JPMorgan Chase & Co. and Bank of America Corp. have become more aggressive about modifications to mortgage agreements. The government is also working on an ambitious plan to help around 3 million borrowers avoid foreclosure, but details have yet to be released.
More than 4 million American homeowners with a mortgage were at least one payment behind on their loans at the end of June, and 500,000 had started the foreclosure process, according to the most recent data from the Mortgage Bankers Association.
Citigroup announced late Monday that it won't initiate a foreclosure or complete a foreclosure sale on any eligible borrower who seeks to stay in a home if it is the borrower's principal residence, the homeowner is working in good faith with Citi and has sufficient income to make affordable mortgage payments.
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