equity home loan

Selasa, 27 November 2012

Predictions for next year's housing market

December, 2012

The housing market is beginning to pick up its pace from the previous few years in which the recession hobbled the economy. With the last couple months resulting in improvements for the housing market, real estate experts at RealtyPin recently released predictions for what the organization believes will happen with the housing market in 2013.

One of the predictions made by RealtyPin is that Americans will benefit from years of underbuilding. The country has experienced years of a surplus of vacant houses, which was worsened during the recession. Once the recession began, 3 percent of the nation's existing homes were vacant, which was an all-time high for a figure that is normally about 1.5 percent.

As of mid-November, the vacancy rate had decreased to 2.1 percent. Since the vacancy rate has been so high, many homebuilders haven't had the opportunity to build any new homes, which will result in existing homeowners having an easier time selling their houses in 2013 since they won't have anything new to compete with.

Another prediction made by RealtyPin is that rent prices will hit a plateau. While rent is at all-time highs in some areas of the country, mortgages have decreased, making owning a home a more attractive option for some Americans.

Landlords have taken advantage of tenants recently by charging high prices for rent because they're aware that many Americans are hesitant to jump into the housing market and purchase the home of their choice, but many renters might soon have no choice since mortgages have decreased to be cheaper than rent in some areas of the country.

RealtyPin also suggested that quantitative easing will backfire. The aim of the Federal Reserve's Quantitative Easing plan is to make sure interest rates are kept low, which has been a working plan over the past couple years.

Federal Chairman Ben Bernanke has expressed that he wants to keep interest rates low until 2015, which could cause some first-time home buyers to delay purchasing a house, but low prices should be taken advantage of immediately since home prices will continue to increase during the recovery from the recession.

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Senin, 26 November 2012

Number of homeowners with underwater mortgages decreases

November, 2012

According to the third quarter Zillow Negative Equity Report, negative equity decreased in the the quarter, with 28.2 percent of all homeowners reporting having underwater mortgages.

The 28.2 percent of homeowners who reported they were underwater on their mortgages decreased from the 30.9 percent that was reported in the second quarter of the year, signaling improvement in the housing market.

After years of showing historically low numbers, the housing market is finally beginning to show signs of life, as home prices and sales are beginning to increase across the country.

This is also the first time that negative equity has decreased below 30 percent in the Zillow report and the figures were the largest quarter-over-quarter decrease in negative equity since Zillow revised its way of determining negative equity in the first quarter of 2011.

"The fall in negative equity rates means homeowners have additional options for refinancing or selling their homes," said Zillow Chief Economist Dr. Stan Humphries. "But while we're moving in the right direction, a substantial number of homes are still locked up in negative equity, unable to enter the existing re-sale market despite the desires of their owner. The housing market has found real momentum of its own, but is not immune from shocks to the broader economy."

Humphries added that if negotiations focused on resolving the fiscal cliff aren't inspiring confidence in investors and consumers, recent home value increases and falling could stall.

Out of the 30 largest metropolitan areas that are covered by the Zillow report, the five that had the largest declines in negative equity were Phoenix, Las Vegas, Denver, Sacramento, California, and Orlando.

A large portion of the decline in negative equity is credited to U.S. home values rising by 1.3 percent in the third quarter of the year compared to the second quarter, to a median value of $153,800.

More than 14 million U.S. homeowners that have a mortgage in negative equity owed more on their mortgage than their homes were worth, which has sparked the government to combat these cases to make sure that first-time home buyers receive lower rates through FHA loans that require a lower down payment than others.

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Rabu, 21 November 2012

Housing market continuing improvement

Housing market continuing improvement
The Federal Savings Bank
November 20, 2012

According to the recently released October National Housing report from RE/MAX, which is a survey of MLS data in 52 metropolitan areas, there was a continuation of the positive trends that have been experienced for the housing market over the past year.

The report showed that closed transactions increased by 17.8 percent over October 2011, and the median home price increased by 2.1 percent over the median that was experienced last October.

Falling inventory has been one of the significant concerns of those in the housing industry. The number of homes that were put up for sale decreased in October to 28.9 percent than it was last October. The lower number of inventory has resulted in prices increasing, but has also presented a challenge for many home buyers because multiple offers are being put up on a lower number of homes, causing bidding wars. With the housing market improving, first-time home buyers should take advantage of the low prices.

"As we enter the fourth quarter, 2012 is looking like the turn-around year for housing, with significant increases in sales and prices," said Margaret Kelly, CEO of RE/MAX. "However, we recognize that this recovery is still fragile and dependent on more reasonable lending and regulation. If qualified buyers can obtain mortgages and more inventory comes to market, this recovery could become even stronger next spring."

The October RE/MAX National Housing Report showed that home sales were 17.8 percent higher than they were in October 2011, representing the 16th consecutive month that sales were higher than the same month in the previous year.

Sales of homes were also up by 5.4 percent compared to the previous month, which housing experts say is an impressive performance considering the seasonal patterns typically see a slight drop from September to October.

The median sales price for homes that were sold in October was $158,900, which represents a 3.7 percent decrease from the median price that was reported in September. The $158,900 was also a 2.1 percent increase from October 2011, marking the ninth straight month that higher prices were seen compared to the same time last year.

Green building has also become more popular recently, which is encouraging more homeowners to look at energy-saving homes to reduce their carbon footprint on the environment.

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Selasa, 20 November 2012

Home sales increase in October

Federal Savings Bank

November, 2012

According to the National Association of Realtors, sales of existing home increased during October despite the damage caused by Hurricane Sandy, which ripped across the east coast and damaged thousands of homes.

Total existing-home sales are completed transactions that include single-family homes, townhomes, condominiums and co-ops. Existing home sales increased by 2.1 percent to a seasonally adjusted annual rate of 4.79 million during October from a downwardly revised 4.69 million in September.

In addition, existing-home sales are 10.9 percent above the 4.32 million-unit level in October 2011.

"Home sales continue to trend up and most October transactions were completed by the time the storm hit, but the growing demand with limited inventory is pressuring home prices in much of the country," said Lawrence Yun, NAR chief economist. "We expect an impact on Northeastern home sales in the coming months from a pause and delays in storm-impacted regions."

While existing-home sales increased during October, the national median home price for all housing types increased to $178,600 in October, which was an 11.1 percent increase compared to the same time last year. The increase in median home price marked the eighth consecutive monthly year-over-year increase, which hasn't been experienced since October 2005 to May 2006.

"Inflationary pressures are expected to build during the next two years," said NAR President Gary Thomas. "As a result, mortgage interest rates will also rise with inflation. Buyers who are currently held back by tight mortgage credit standards should work to improve their credit scores so they'll be able to qualify for a mortgage while conditions are still favorable."

Distressed homes, which include foreclosures and short sales that were sold at deep discounts, accounted for 24 percent of October sales. Twelve percent of the distressed homes sold were from foreclosures and the other 12 percent was from short sales. Foreclosures sold at an average discount of 20 percent below market value during October while short sales were discounted by 14 percent.

According to Freddie Mac, the national average commitment rate for a 30-year fixed-rate mortgage decreased to 3.38 percent in October from 3.47 percent in September.

Green building is also becoming more popular amongst Americans, which might encourage more first-time home buyers to secure a home that reduces their carbon footprint on the environment.

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Rabu, 14 November 2012

Housing market improvements expected through 2014

November, 2012

According to predictions recently made by real estate experts at the 2012 Realtors Conference and Expo, the housing market recovery is right around the corner, as the sector is expected to continue improving in the coming years.

The housing market is expected to improve, but only if there are no further limitations on the availability of mortgage credit or a fiscal cliff, which was discussed by officials at the conference.

"Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years, and all of the major home price measures are showing sustained increases," said Lawrence Yun, chief economist of the National Association of Realtors. "Disruption from Sandy likely will be temporary, notably in New Jersey and New York, but the market is likely to pick up speed within a few months with the need to build new homes in damaged areas."

Yun predicted that there wouldn't be any signs of inflation in 2013, but projects it to be between 4 and 6 percent by 2015.

Coupled with rising demand, there has been an ongoing decline in housing inventory, which Yun expects is leading to significantly higher home prices.

"Real estate will be a hedge against inflation, with values rising 15 percent cumulatively over the next three years, also meaning there will be fewer upside-down home owners," Yun said. "Today is a perfect opportunity for moderate-income renters to become successful home owners, but stringent mortgage credit conditions are holding them back."

The national median existing-home price is expected to increase by 6 percent to $176,000 for the remainder of 2012. The number is expected to increase another 5.1 percent next year to $185,200, which is comparable to the expected gains experienced in 2014.

Existing-home sales are also expected to increase by 9 percent to $4.64 million, which will be followed by an 8.7 percent increase to $5.05 million in 2013.

TransUnion also recently reported that national mortgage loan delinquency rates continued to decrease in the third quarter, possibly encouraging more first-time home buyers to pursue securing a new home since the housing market is showing signs of improvement.

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Jumat, 09 November 2012

Mortgage rates still near record lows

November, 2012

Those who are interested in making a new home purchase might be encouraged to know that the mortgage rates have settled near record lows and now is a better time than ever to take advantage of the housing market.

Freddie Mac recently released the results of its Primary Mortgage Market Survey, which showed fixed mortgage rates continue to hover near record lows and have been there over the past six weeks. Last year, the 30-year fixed-rate mortgage averaged 3.99 percent, dropping below 4.00 percent for the first time since 1971, when Freddie Mac first began reporting its weekly mortgage rates survey.

The 15-year fixed-rate mortgage this week also averaged 2.69 percent with an average 0.7 point, a decrease from the previous week when it averaged 2.70. The 15-year fixed-rate mortgage last year at the same time was reported at an average of 3.30 percent.

"Mortgage rates remained near record lows following the employment report for October," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The economy added 171,000 jobs, above the market consensus forecast, and the two prior months were revised up a combined 84,000. The Labor Department also reported that the unemployment rate ticked up to 7.9 percent and that average hourly wages were unchanged."

While mortgage rates are still hovering near record lows, metro area home prices have continued to show strength, recovering from the downturn that was experienced during the recession.

According to the latest quarterly report from the National Association of Realtors, growth in metro area median home prices increased in the third quarter of the year. The median existing single-family home price increased in 120 out of 149 metro statistical areas based on closing in the third quarter compared to numbers reported at the same time in 2011.

Lawrence Yun, NAR's chief economist, reported that housing inventories have continued to decrease from a record that was set in the summer of 2007. He added that his organization expects normal appreciation patterns in 2013, but there is a risk of price acceleration if builders are unable to increase supply in order to meet demands.

The improvement in the housing market could be a result of unemployment numbers being under 8 percent for the first time in nearly four years, currently standing at 7.9 percent, according to the U.S. Bureau of Labor Statistics.

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Kamis, 08 November 2012

How refinancing affects your credit

November, 2012

The ultra low mortgage rates currently being offered across the country are helping first-time home buyers and current homeowners alike, but how does refinancing for these low rates affect your credit score?

A recent piece from MSN Money reveals that refinancing more than once in an attempt to lower how much you pay on your mortgage will not significantly affect your credit score.

"It will neither help nor hurt your score in the short term," Anthony Sprauve, director of public relations formyFICO.com, told the news source. "Any impact will be minimal and brief. The true impact will be how you manage the new mortgage over time."

The housing market is showing improvements across the board, which is good news for first-time home buyers. CNNMoney recently compiled a list of the top three positive housing market indicators. Home prices are on the rise, the housing industry has gone from bust to boom and builders are experiencing growth as well, causing more housing starts and building permits.

Learn More about the Refinance Process!

CoreLogic reports home price increases

November, 2012

CoreLogic, one of the leading providers of information, analytics and business services, recently released its September Home Price Index report, which showed home prices increased on a year-over-year basis nationwide.

The home price increases included distressed sales, which climbed by 5 percent in September 2012 compared to the same time last year, representing the largest home price increase since July 2006. The figures also marked the seventh consecutive increase in home prices experienced nationally on a year-over-year basis.

“Home price improvement nationally continues to outpace our expectations, growing 5 percent year-over-year in September, the best showing since July 2006,” said Mark Fleming, chief economist for CoreLogic. “While prices on a month-over-month basis are declining, as expected in the housing off-season, most states are exhibiting price increases. Gains are particularly large in former housing bubble states and energy-industry concentrated states.”

Even when distressed sales aren't included, home prices increased nationwide by 5 percent in September 2012 compared to the same time last year. Excluding distressed sales, home prices increased by 0.5 percent in September 2012 compared to the previous month.

Housing prices are expected to increase by 6.3 percent year-over-year in October this year compared to October 2011 while there is expected to be a 0.2 percent month-over-month increase from September 2012.

“Home prices are responding to better market fundamentals, such as reduced inventories and improved buyer demand,” said Anand Nallathambi, president and CEO of CoreLogic. “So far this year, we’re seeing clear signs of stabilization and improvement that show promise for a gradual recovery in the residential housing market.”

The CoreLogic Pending HPI showed that October 2012 home prices, which included distressed sales, are expected to increase by 5.7 percent on a year-over-year basis. The CoreLogic Pending HPI is a proprietary and exclusive metric that gives the most up-to-date indication of trends in home prices.

Asking prices increase in October
According to Trulia, asking prices also increased by 2.9 percent year-over-year in October, which might encourage more first-time home buyers to pursue purchasing in the housing market to take advantage of the low prices.

When Trulia excluded foreclosures, asking prices increased by 3.6 percent over the past year, showing the housing market is making its way toward a recovery.

Tagged As: First Time Home Buyers

Selasa, 06 November 2012

Housing market to help, not hinder overall economic growth

November, 2012

The housing market in the United States has shown signs of improvement over the past few months, and many analysts are hoping the housing sector will drive the U.S. economy moving forward.

According to Reuters, construction and related activity will help instead of hinder U.S. economic growth this year for the first time since 2005.

The market has experienced higher sales, prices and building, which have been welcome additions to the economy, encouraging more first-time home buyers to take advantage of the lower rates before prices go up.

According to Harvard University's Joint Center for Housing Studies, Americans are likely to spend more on home renovations, which are expected to total $134.2 billion in the 12 months leading up to June 2013. The projected home renovation figures are up from the $115.3 billion that was reported at the end of September this year.

Bloomberg recently reported that investors have become more comfortable with real estate after enduring a six-year housing downturn, which resulted in prices declining by 35 percent nationwide.

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Kamis, 01 November 2012

Homebuyers now able to find homes based on school zones

Home buyers now able to find homes based on school zones

November, 2012

Redfin, the technology-powered real estate broker, recently introduced a new feature on its website that makes a first-time home buyer's search for a home in an area where schools are the best for their children easier.

The new feature gives customers the option to search for homes within specific school zones in 19 markets across the country. According to Redfin, most families choose where to purchase a home based on what schools their children will be able to attend, which could also affect a home's resale value, and is possibly of importance to potential homeowners who don't have children also.

"As a parent, schools were at the top of my mind when I used Redfin to buy my house a few years ago," said Bridget Frey, vice president of engineering at Redfin. "And as a software engineer, I always love getting my hands on new data (such as school attendance zones) and using it to enhance our map-based search experience. So it almost goes without saying that I'm incredibly excited about our school search feature."

Frey added that the feature will save customers time and hours of research, helping them choose the best home that is in the right area for their child to attend a reputable school.

Redfin determines the school enrollment zone boundaries based on data from multiple school-zoning sources, in addition to insight from Redfin's local real estate agents.

The new feature can be utilized by searching the school by name, which can be done by typing the school's name into the location search bar. The school's enrollment boundary will be shown on the map in red while additional details about the school will be included in the GreatSchools rating, which can be found on the right-hand sidebar.

Users can also click a school icon on the map and click the right-hand sidebar and the "Show Attendance Zone" tab, which shows the homes for sale inside the school's enrollment boundaries.

A Redfin Instant Alert of Redfin Daily Alert for homes in a particular school attendance zone can also be set up so users can be notified of new listings in the area when they become available.

Considering many parents consider their children when looking for an ideal area to purchase a home, Seattle might appear to be an attractive option, as the city recently saw home prices decline by 0.1 percent from July to August, according to the S&P Dow Jones Indices.

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