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Florida’s existing home, condo sales rise in 4Q 2008 Releated Story:

February 13th, 2009 9:45 AM

Florida’s existing home, condo sales rise in 4Q 2008

Releated Story:

NAR: 4Q 2008 metro home prices down as buyers purchase distressed property

ORLANDO, Fla. – Feb. 12, 2009 – Sales of existing single-family homes in Florida rose 13 percent in fourth quarter 2008 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 30,163 existing homes sold statewide in 4Q 2008; during the same period the year before, a total of 26,635 existing homes sold statewide. It marks the second consecutive quarter that Florida has reported higher existing home sales; sales activity rose 5 percent in 3Q 2008 compared to the same period the previous year, according to FAR.

Florida Realtors also reported a 3 percent gain in statewide sales of existing condominiums in the fourth quarter compared to the same time the previous year. This marks the first three-month period that has noted increased statewide sales in both the existing home and condo markets compared to year-ago levels.

Twelve of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the fourth quarter compared to the same three-month-period a year earlier, while eight MSAs showed gains in condo sales. A growing number of local markets have reported increased sales activity over the past few months, according to FAR.

The statewide existing-home median sales price was $161,200 in the fourth quarter; a year earlier, it was $216,600 for a decrease of 26 percent. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is a typical market price where half the homes sold for more, half for less.

To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts. According to the fourth quarter 2008 survey, respondents’ increasing concerns about the economy have dampened the investment outlook for various types of properties.

However, one positive sign is the recent dramatic increase in refinancing with the availability of 5 percent mortgage rates in mid-December, according to Dr. Wayne Archer, center director. If additional programs are put into place that create 4.5 percent Federal Housing Administration mortgages for people who have difficulty making payments, he said, it will do even more to stabilize the housing industry.

In the year-to-year quarterly comparison for condo sales, 8,374 units sold statewide for the quarter compared to 8,098 in 4Q 2007 for a 3 percent increase. The statewide existing-condo median sales price was $136,400 for the three-month period; in 4Q 2007, it was $190,400 for a decrease of 28 percent.

Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.86 percent in 4Q 2008; one year earlier, it averaged 6.23 percent.

The outlook for housing and the economy remains clouded despite improved affordability conditions, according to NAR’s latest industry forecast. “For a sustainable housing market recovery and, thus a sustainable economic recovery, we need a significant housing stimulus and mortgage availability for qualified borrowers,” said NAR Chief Economist Lawrence Yun.

© 2009 FLORIDA ASSOCIATION OF REALTORS

www.SOLDTampaBay.com

Posted by Don Suda on February 13th, 2009 9:45 AMPost a Comment (0)

Remodeling: Valuable information for buyers and sellers.

January 31st, 2009 7:05 AM

Valuable information for buyers and sellers.

According to Remodeling magazine's 2008-2009 "Cost vs. Value Report," even despite the challenging economy, investing in your home still pays off at resale. Based on interviews with real estate professionals throughout the country, the Remodeling report found that homeowners could expect to recoup an average of 67.3 percent of their investment in 30 different home improvement projects.

Exterior projects that boost curb appeal and kitchen remodels generally get the biggest bang for the homeowner's buck. The right remodeling project, when done well, also has the potential to make for a quicker sale and reduce negotiations with buyers over perceived shortcomings.

Some of the projects that are paying off the most nationally this year at resale include the following. The number in parentheses represents the percentage of the project's cost that is recovered.

Upscale fiber cement siding (86.7 percent)
Midrange wood deck (81.8 percent)
Midrange vinyl siding (80.7 percent)
Midrange minor kitchen remodel (79.5 percent)
Upscale vinyl window replacement (79.2 percent)
Midrange major kitchen remodel (76 percent)

Click here to access the "Cost vs. Value" Web site, where you can download data for 80 cities.

For a printable version of this message, click here.

www.SOLDTampaBay.com

Posted by Don Suda on January 31st, 2009 7:05 AMPost a Comment (0)

Florida’s existing home, condo sales rise in December 2008 Related Story:

January 27th, 2009 2:44 PM

Florida’s existing home, condo sales rise in December 2008

Existing-home sales show strong gain in December, says NAR

ORLANDO, Fla. – Jan. 26, 2009 – Florida’s existing home sales rose in December, making it the fourth consecutive month that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). December’s statewide sales also increased over November’s figures in both the existing home and existing condo markets.

Existing home sales rose 27 percent last month with a total of 11,053 homes sold statewide compared to 8,712 homes sold in December 2007, according to FAR. December’s statewide existing home sales were 28.9 percent higher than November’s statewide sales.

Florida Realtors also reported a 12 percent gain in statewide sales of existing condominiums in December, marking the third recent month (following September and October) for higher statewide existing home and existing condo sales compared to year-ago levels. Statewide existing condo sales last month increased 37.7 percent over the total units sold in November.

Sixteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in December; 11 MSAs also showed gains in condo sales, marking the sixth month in a row that a number of markets have reported increased sales activity.

Florida’s median sales price for existing homes last month was $155,500; a year ago, it was $213,600 for a 27 percent decrease. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in November 2008 was $180,800, down 12.8 percent from a year earlier, according to NAR. In California, the statewide median resales price was $285,680 in November; in Massachusetts, it was $283,000; in Maryland, it was $262,109; and in New York, it was $210,000.

While overall sales have softened nationally in recent months, NAR’s latest housing outlook noted a trend of increasing activity in Florida, California, Arizona and Nevada markets. “Sales are rising in areas with large numbers of distressed properties as bargain hunters take advantage of discounted home prices,” said NAR Chief Economist Lawrence Yun. “It is imperative to provide incentives for homebuyers to get back into the market. It also depends on how effectively Congress and the new administration can help facilitate the short sales process and unclog the mortgage pipeline – impediments remain for some buyers with good credit.”

In Florida’s year-to-year comparison for condos, 3,138 units sold statewide compared to 2,814 sold in December 2007 for a 12 percent increase. The statewide existing condo median sales price last month was $130,600; in December 2007 it was $192,600 for a 32 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $185,400 in November 2008.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.29 percent, significantly lower than the average rate of 6.10 percent in December 2007, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the West Palm Beach-Boca Raton MSA reported a total of 638 homes sold in December compared to 467 homes a year ago for a 37 percent increase. The existing home median sales price was $246,000; a year ago, it was $337,900 for a 27 percent decrease. In the year-to-year comparison for the existing condo market, a total of 527 units sold in the MSA last month, up 26 percent compared to 419 condos sold the previous December. The market’s existing condo median price was $112,900; a year ago, it was $161,400 for a 30 percent decrease.

© 2009 FLORIDA ASSOCIATION OF REALTORS

www.SOLDTampaBay.com

Posted by Don Suda on January 27th, 2009 2:44 PMPost a Comment (0)

Mortgage rates hit four-year low Mortgage Rate Trend Index

December 13th, 2008 7:14 AM

Mortgage rates hit four-year low

Mortgage Rate Trend Index

More than half (56 percent) of the mortgage industry experts polled by Bankrate.com this week predict further declines in mortgage rates over the next 30 to 45 days. While another 38 percent think current rates will hold, only 6 percent predict an increase.

McLEAN, Va. – Dec. 12, 2008 – Rates on 30-year-fixed mortgages dropped this week to their lowest levels in more than four years, effects of a startling November unemployment report and a government plan to buoy the housing market.

Freddie Mac reported Thursday that average rates on 30-year fixed-rate mortgages dropped to 5.47 percent, down from 5.53 last week. The rate is slightly below this year’s previous low of 5.48 percent during the week of Jan. 24, and the lowest since March 25, 2004, when it averaged 5.40 percent.

Mortgage rates started falling after the Federal Reserve launched a sweeping new effort in late November to aid the U.S. housing market by purchasing up to $600 billion of mortgage-related securities and other debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Fannie and Freddie own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt.

Freddie Mac, however, said November’s bleak unemployment report was the main reason for the drop in rates. And on Thursday, the Labor Department reported applications jobless benefits last week rose to a seasonally adjusted 573,000 - up from an upwardly revised figure of 515,000 the previous week, and far more than economists expected.

“Following the release of the November employment report, which showed the largest monthly decline in jobs since December 1974, bond yields fell slightly this week allowing fixed-rate mortgage rates room to ease back a little further,” said Frank Nothaft, Freddie Mac’s chief economist.

Treasury buying has picked up and sent down yields because the economy is in a recession that investors believe will continue. But as investors push yields down, they’re also driving interest rates so low that borrowers get a break. A yield is the annual rate of return on an investment.

Falling rates have caused a jump in loan applications. Though applications edged down last week, they are up for the past month, according to the Mortgage Bankers Association.

Meanwhile, rates this week fell on 15-year fixed-rate mortgages to an average of 5.20 percent, down from 5.33 percent last week, Freddie Mac said.

Rates on five-year, adjustable-rate mortgages rose to 5.82 percent, compared with 5.77 percent last week. Rates on one-year, adjustable-rate mortgages increased slightly to 5.09 percent, from 5.02 percent last week.

The rates do not include add-on fees known as points. The nationwide fee for 30-year and 15-year mortgages averaged 0.7 point last week. The fee on five-year, adjustable-rate mortgages averaged 0.6 point, while the fee on one-year adjustable-rate mortgages averaged 0.4 point.

www.SOLDTampaBay.com

Posted by Don Suda on December 13th, 2008 7:14 AMPost a Comment (0)

Pending home sales down slightly

December 9th, 2008 3:31 PM

Pending home sales down slightly

WASHINGTON – Dec. 9, 2008 – Pending home sales eased against a deteriorating economic backdrop but remain in a stable range, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is 1.0 percent below October 2007 when it was 89.8.

“Despite the turmoil in the economy, the overall level of pending home sales has been remarkably stable over the past year, holding in a generally narrow range,” says Lawrence Yun, NAR chief economist. “We did see a spike in August when mortgage conditions temporarily improved, which underscores two things – there is a pent-up demand, and access to safe, affordable mortgages will bring more buyers into the market.”

Conditions remain uneven around the country, but some areas that are showing healthy gains in pending home sales from a year ago include many Florida and California markets, Providence, R.I.; Lansing, Mich.; Oklahoma City; and Las Vegas.

The PHSI in the South jumped 7.8 percent to 95.9 in October but remains 2.9 percent below a year ago. In the Northeast the index rose 0.6 percent to 68.1 but is 14.1 percent below October 2007. The index in the Midwest declined 4.3 percent to 79.7 in October and is 6.8 percent below a year ago. In the West, the index fell 8.7 percent to 103.7 but is 17.4 percent higher than October 2007.

“Efforts to bring down mortgage interest rates (by the U.S. Treasury) demonstrate a clear understanding of the role housing plays in stabilizing the economy,” says NAR President Charles McMillan. “We’re very encouraged by all of the proposals getting serious consideration in Washington to help home buyers. More sales will stabilize home prices by bringing down inventory, and would lessen foreclosure pressure.”

Yun expects growth in the U.S. gross domestic product (GDP) to contract through the first half of 2009, then stabilize and expand in the latter part of the year – lifted by a home sales recovery. “Given the critical role of housing in an economic recovery, we’re confident sufficient stimulus will be offered to bring more buyers to the market,” Yun says.

Looking at middle-ground assumptions, existing-home sales are forecast to total 4.96 million this year, and then increase to 5.19 million in 2009 and 5.55 million in 2010.

New-home sales for 2008 should total 486,000 this year, decline to 393,000 in 2009 and then grow to 446,000 in 2010. Housing starts, including multifamily units, are projected at 934,000 units in 2008 and 731,000 next year before rising to 772,000 in 2010.

“Price projections are challenging in an environment with so many variables and divergent local conditions,” Yun says. “The home price correction to date has brought prices in line with fundamentals, but buyer pessimism could cause prices to overshoot downward, resulting in further economic deterioration.”

The 30-year fixed-rate mortgage will probably decline to 5.6 percent in the first quarter, rise slowly to 6.0 percent by the end of 2009, and average 6.2 percent in 2010. NAR’s housing affordability index is likely to remain quite favorable, averaging 138 in 2009.

The unemployment rate is estimated at 7.2 percent in the first quarter, rising to 8.3 percent by the end of 2009. Inflation, as measured by the Consumer Price Index, is seen at 0.7 percent in 2009. Inflation-adjusted disposable personal income is expected to grow 1.5 percent in 2009.

© 2008 FLORIDA ASSOCIATION OF REALTORS®

www.SOLDTampaBay.com

Posted by Don Suda on December 9th, 2008 3:31 PMPost a Comment (0)

Florida’s existing home, condo sales rise in October 2008

November 24th, 2008 1:47 PM

Florida’s existing home, condo sales rise in October 2008

Existing-home sales soften on economic volatility, says NAR

ORLANDO, Fla. – Nov. 24, 2008 – For the second month in a row, Florida’s existing home sales rose in October, with Florida Realtors® reporting a 15 percent increase in activity in the year-to-year comparison; last month’s sales of existing condos statewide increased 5 percent in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors (FAR).

A total of 10,443 existing homes sold statewide last month, up 15 percent over the 9,118 homes sold in October 2007, according to FAR. Florida Realtors also reported higher statewide existing home and existing condo sales in September compared to the year-ago levels.

Thirteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in October; seven MSAs also showed gains in condo sales, marking the fourth consecutive month that a number of markets have noted higher sales activity.

Florida’s median sales price for existing homes last month was $169,700; a year ago, it was $222,200 for a 24 percent decrease. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in September 2008 was $190,600, down 8.6 percent from a year earlier, according to the National Association of Realtors (NAR). In California, the statewide median resales price was $316,480 in September; in Massachusetts, it was $295,000; in Maryland, it was $271,520; and in New York, it was $215,000.

Market conditions continue to range widely, according to the latest housing outlook from NAR. “A pattern of sharply higher sales in areas with large price declines is well established,” said NAR Chief Economist Lawrence Yun. “Affordability conditions have consistently been a major factor in driving sales. Historically during recessions, buyers have responded to incentives and it’s important for government to keep that in the forefront of housing stimulus decisions.”

In Florida’s year-to-year comparison for condos, 2,956 units sold statewide compared to 2,805 sold in October 2007 for a 5 percent increase. The statewide existing condo median sales price last month was $147,600; in October 2007 it was $192,300 for a 23 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $199,400 in September 2008.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.20 percent, down from the average rate of 6.38 percent in October 2007, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the Miami MSA reported a total of 453 homes sold in October compared to 367 homes a year ago for a 23 percent increase. The existing home median sales price was $246,800; a year ago, it was $354,800 for a 30 percent decrease. In the year-to-year comparison for the existing condo market, a total of 439 units sold in the MSA last month, up 1 percent compared to 436 condos sold the previous October. The market’s existing condo median price was $197,400; a year ago, it was $268,300 for a 26 percent decrease.

© 2008 FLORIDA ASSOCIATION OF REALTORS

www.SOLDTampaBay.com

Posted by Don Suda on November 24th, 2008 1:47 PMPost a Comment (0)

Valuable information for buyers and sellers.

November 21st, 2008 5:00 PM

Valuable information for buyers and sellers.

For many reasons, now is an excellent time to purchase a home. There are many factors that work in favor of homebuyers, especially those looking to make their first home purchase.

Consider these reasons why now is a good time to buy a home:

Housing affordability continues to improve consistently. In fact, affordability is as high as it has been since 2003.

While the number of homes on the market has started to decrease, home buyers still have a wide variety of homes to choose from. This makes it more likely buyers will find their dream home.

Despite the news headlines, mortgage money is still available. The government has many initiatives underway to ensure that mortgages flow to qualified customers. At Weichert, nine out of 10 people that come to us are approved for a mortgage.

First-time buyers can now take advantage of a limited-time opportunity to receive a tax credit of up to $7,500 when they close on a home purchase before June 30, 2009.

Posted by Don Suda on November 21st, 2008 5:00 PMPost a Comment (0)

New Port Richey: City OKs plan for apartments to replace condos

October 24th, 2008 3:48 PM

http://www.tampabay.com/news/briefs/article866936.ece

www.SOLDTampaBay.com

Posted by Don Suda on October 24th, 2008 3:48 PMPost a Comment (0)

30-year mortgage rates drop to five-week low

October 24th, 2008 3:46 PM

30-year mortgage rates drop to five-week low

WASHINGTON (AP) – Oct. 24, 2008 – Rates on 30-year U.S. mortgages dropped sharply this week, falling to the lowest level in five weeks.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.04 percent this week, down from 6.46 percent last week. The sharp decline pushed 30-year rates down to the lowest level since they stood at 5.78 percent the week of Sept. 18.

Analysts attributed the decrease to an easing of inflation concerns, which now have been replaced with rising worries that the country could be headed for a prolonged recession. Interest rates generally fall in periods of economic weakness.

Rates on 30-year mortgages hit a high for the year of 6.63 percent in late July and then dropped below to a seven-month low of 5.78 percent the week of Sept. 18.

According to the Freddie Mac survey, rates on other types of mortgages were mixed this week.

Rates on 15-year fixed-rate mortgages, which are popular with people who are refinancing, fell to 5.72 percent, compared to 6.14 percent last week.

Rates on five-year adjustable-rate mortgages fell to 6.06 percent, down from 6.14 percent last week. However, rates on one-year adjustable-rate mortgages rose to 5.23 percent, up from 5.16 percent last week.

The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year, 15-year and five-year mortgages averaged 0.6 point. One-year mortgages averaged 0.5 point.

A year ago, the nationwide average rate on 30-year mortgages stood at 6.33 percent, 15-year mortgage rates averaged 5.99 percent, five-year adjustable-rate mortgages were at 6.03 percent and one-year adjustable-rate mortgages stood at 5.66 percent.

On the Net: Freddie Mac: http://www.freddiemac.com

www.SOLDTampaBay.com

Posted by Don Suda on October 24th, 2008 3:46 PMPost a Comment (0)

Florida’s existing home, condo sales increase in September 2008

October 24th, 2008 3:45 PM

Florida’s existing home, condo sales increase in September 2008

ORLANDO, Fla., Oct. 24, 2008 – For the first time in almost three years, Florida’s existing home sales rose in September, noting a 24 percent increase in activity in the year-to-year comparison; last month’s sales of existing condos statewide increased 11 percent in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR).

A total of 10,817 existing homes sold statewide last month, up 24 percent over the 8,725 homes sold in September 2007, according to FAR. The last time Florida Realtors reported higher statewide existing single-family home sales was for year-end 2005, FAR records found. In July of this year, six more homes sold statewide than in July 2007, but that increase was statistically insignificant.

Fourteen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in September; nine MSAs also showed gains in condo sales, marking the third month in a row that a number of markets have noted higher sales activity.

“The September sales report from the Florida Association of Realtors shows a 24 percent increase in the sales of existing homes in the state; this represents the sixth month in a row that the sales figure has exceeded its 12-month moving average (average of the previous 12 months),” says Dr. Sean Snaith, economist and director of the University of Central Florida Institute for Economic Competitiveness. “This is a clear sign that the significant price declines that have occurred across the state are leading to a more rapid absorption of the housing inventory.”

Snaith noted that September 2007 was a volatile time for the housing industry. “The large percentage increase of sales this September versus September 2007 is inflated by the sharp decline in sales that took place in September 2007,” he explained. “That was the month following the initial wave of global fallout precipitated by the subprime mortgage meltdown that roiled markets in August 2007.”

Florida’s median sales price for existing homes last month was $175,100; a year ago, it was $224,700 for a 22 percent decrease. But, looking back to September 2003, the statewide median sales price for single-family homes was $158,800 – an increase of 10.3 percent over the five-year-period, according to FAR records. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in August 2008 was $201,900, down 9.7 percent from a year earlier, according to the National Association of Realtors® (NAR). In California, the statewide median resales price was $350,140 in August; in Massachusetts, it was $325,000; in Maryland, it was $295,283; and in New York, it was $225,000.

The latest housing outlook from NAR points out the importance of available credit to the mortgage market. “Home sales will be constrained without a freer flow of credit into the mortgage market,” says NAR Chief Economist Lawrence Yun. “The faster that happens, the sooner we’ll see a broad stabilization in home prices that in turn will help the economy recover.”

In Florida’s year-to-year comparison for condos, 2,878 units sold statewide compared to 2,595 sold in September 2007 for an 11 percent increase. The statewide existing condo median sales price last month was $153,800; in September 2007 it was $197,000 for a 22 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $212,600 in August 2008.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 6.04 percent, down from the average rate of 6.38 percent in September 2007, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the Daytona Beach MSA reported a total of 536 homes sold in September compared to 478 homes a year ago for a 12 percent increase. The existing home median sales price was $160,000; a year ago, it was $193,200 for a 17 percent decrease. In the year-to-year comparison for the existing condo market, a total of 74 units sold in the MSA last month, up 1 percent compared to 73 condos sold the previous September. The market’s existing condo median price was $237,500; a year ago, it was $277,100 for a 14 percent decrease.

© 2008 FLORIDA ASSOCIATION OF REALTORS

www.SOLDTampaBay.com

Posted by Don Suda on October 24th, 2008 3:45 PMPost a Comment (0)

30-year mortgages dip to lowest since February Mortgage Rate Trend Index

September 20th, 2008 6:04 AM

30-year mortgages dip to lowest since February

Mortgage Rate Trend Index

This week, mortgage industry experts polled by Bankrate.com say: It's pretty much an even split, with a slight plurality betting that rates will drop over the next 35 to 45 days. Forty percent of the panelists believe mortgage rates will rise; almost half (47 percent) think they’ll fall; and the rest (13 percent) believe rates will remain relatively unchanged.

WASHINGTON – Sept. 19, 2008 – Rates on 30-year mortgages dropped sharply again this week, falling to the lowest level in seven months, as rates continue to decline following the government's dramatic takeover of mortgage giants Fannie Mae and Freddie Mac.

Freddie Mac reported Thursday that its nationwide survey found 30-year, fixed-rate mortgages declined to 5.78 percent this week, down from 5.93 percent last week.

It was the fifth consecutive weekly decline and pushed the 30-year mortgage to the lowest level since it stood at 5.72 percent the week of Feb. 14. The decreases have accelerated over the past two weeks since the government announced on Sept. 7 that it was taking control of Fannie Mae and Freddie Mac because of huge losses the companies were experiencing due to soaring defaults on mortgage loans as home prices slump.

Private economists had predicted the government's move would result in lower mortgage rates for consumers because it removed a huge uncertainty about the future of the two firms, which own or guarantee half the nation's mortgages.

Frank Nothaft, chief economist at Freddie Mac, noted that the big drop in mortgage rates was fueling a boom in mortgage refinancings, with mortgage applications up 58 percent since mid-August, led by a 122 percent gain in refinancings.

The 30-year mortgage hit a high for this year at 6.63 percent on July 24 and had been above 6 percent from late May until last week.

The Freddie Mac survey showed that other mortgage rates declined this week as well.

Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, fell to 5.35 percent, down from 5.54 percent last week.

Rates on five-year, adjustable-rate mortgages averaged 5.67 percent this week, down from 5.87 percent last week.

One-year, adjustable-rate mortgages fell to 5.03 percent, down from 5.21 percent last week.

The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year and 15-year mortgages averaged 0.6 point. The average fee for five-year mortgages was 0.7 point while the fee on one-year mortgages was 0.5 point.

A year ago, rates on 30-year mortgages stood at 5.72 percent, 15-year mortgage rates averaged 5.34 percent, five-year adjustable-rate mortgages were at 6.21 percent and one-year adjustable-rate mortgages stood at 5.65 percent.

On the Net:

Freddie Mac: http://www.freddiemac.com

Copyright © 2008 The Associated Press, Martin Crutsinger (AP Economics Writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

www.SOLDTampaBay.com

Posted by Don Suda on September 20th, 2008 6:04 AMPost a Comment (0)

Multiple quick fixes tried for U.S. financial crisis

September 20th, 2008 6:03 AM

Multiple quick fixes tried for U.S. financial crisis

WASHINGTON – Sept. 19, 2008 – Urgently moving on multiple fronts to stem the worst financial crisis in decades, the government moved Friday to protect money market mutual funds against losses and temporarily banned short-selling of company stocks. The Treasury Department asked Congress to give it sweeping power to buy up toxic debt that has unhinged Wall Street.

President Bush authorized Treasury to tap up to $50 billion from a Depression-era fund to insure the holdings of eligible money market mutual funds.

The dramatic action comes as Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke are crafting a massive rescue plan to buy up dodgy assets held by troubled banks and other financial institutions at the heart of the nation's financial crisis.

Congressional leaders said they expected to get the plan Friday and act on it before Congress recesses for the election.

The chairman of the Senate Banking Committee, Chris Dodd, D-Conn., warned the United States could be "days away from a complete meltdown of our financial system" and said Congress is working quickly to prevent that.

Dodd told ABC's "Good Morning America" on Friday that the nation's credit is seizing up and people can't get loans.

The ranking Republican on the Banking Committee, Sen. Richard Shelby, said the U.S. has "been lurching from one crisis to another" and predicted the new bailout plan would cost at least half a trillion dollars.

"We hope to move very quickly. Time is of the essence," House Speaker Nancy Pelosi, D-Calif., said after Paulson and Bernanke briefed congressional leaders Thursday night.

Stocks on Wall Street shot up more than 400 points late Thursday on word that a plan was in the works. Fallout from the housing and credit debacles have badly bruised the economy and pushed unemployment to a five-year high.

"I don't say any prudent money manager would say we're out of the woods, but right in this moment it all seems positive and leading toward an upward move for the market going into Friday session," said Scott Fullman, director of derivative investment strategy for New York-based institutional broker WJB Capital Group.

Fullman said the biggest bonus of any potential government plan is that it is being put together to help the banking industry as a whole. Until now, the Treasury and Fed have selectively bailed out institutions that were the most vulnerable.

"This staves off Judgment Day," said Anthony Sabino, professor of law and business at St. John's University. "This is a detox for banks, and will help cleanse themselves of the bad mortgage securities, loans and everything else that has hurt them."

The roots of the current crisis can be traced to lax lending for home mortgages - especially subprime loans given to borrowers with tarnished credit - during the housing boom. Lenders and borrowers were counting on home prices to keep zooming upward. But when the housing market went bust, home prices plummeted. Foreclosures spiked as people were left owing more on their mortgage than their home was worth. Rising mortgage rates also clobbered some homeowners.

As financial companies racked up multibillion-dollar losses on soured mortgage investments, and credit problems spread globally, firms hoarded cash and clamped down on lending. That crimped consumer and business spending, dragging down the national economy - a vicious cycle policymakers have been trying to break.

"The root cause of the stress in the capital markets is the real estate correction," Paulson said, adding he hopes to have a solution "aimed right at the heart of this problem."

Bernanke said a resolution would help "get our economy moving again."

Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, discounted the idea of setting up a new agency - similar to the Resolution Trust Corp. - established in 1989 to help resolve a savings and loan crisis at a cost to taxpayers of $125 billion.

"It will be the power - it may not be a new entity. It will be the power to buy up illiquid assets," Frank said. "There is this concern that if you had to wait to set up an entity, it could take too long."

The federal government already has pledged more than $600 billion in the past year to bail out, or help bail out, some of the biggest names in American finance. There was no immediate word on how much the new rescue plan might cost.

Paulson, Fed Chairman Ben Bernanke and other officials planned to work through the weekend on a solution.

The SEC imposed a temporary emergency ban on all short-selling, not just the aggressive forms it already has targeted.

The move, announced on the agency's Web site, may well be unprecedented and a reflection of regulators' concern about the widening scope of the financial crisis as entreaties come from all quarters to stem a swarm of short-selling.

In the announcement, the commission said it was acting in concert with the U.K. Financial Services Authority in taking emergency action to "prohibit short selling in financial companies" to protect the integrity of the securities market and boost investor confidence.

"The commission is committed to using every weapon in its arsenal to combat market manipulation that threatens investors and capital markets," Cox said in a statement. "The emergency order temporarily banning short-selling of financial stocks will restore equilibrium to markets."

For more than a year, investors around the world have watched with growing alarm as the U.S. economy, the world's largest, has struggled to right itself amid massive home foreclosures, many of them from mortgages issued to homeowners with bad credit.

The turmoil has swallowed some of the most storied names on Wall Street. Three of its five major investment banks - Bear Stearns, Lehman Brothers and Merrill Lynch - have either gone out of business or been driven into the arms of another bank.

Copyright © 2008 The Associated Press, Jeannine Aversa and Julie Hirschfeld Davis. Associated Press writers Andrew Taylor and Marcy Gordon in Washington and Joe Bel Bruno in New York contributed to this report. All rights reserved.

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Posted by Don Suda on September 20th, 2008 6:03 AMPost a Comment (0)

Near-term home sales to stay in narrow range

September 10th, 2008 12:53 PM

Near-term home sales to stay in narrow range

WASHINGTON – Sept. 10, 2008 – The level of home sales is expected to show little movement in the months ahead, according to the latest projections by the National Association of Realtors (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, fell 3.2 percent to 86.5 from an upwardly revised reading of 89.4 in June, which had risen 5.8 percent from May. The July index remains 6.8 percent below July 2007 when it stood at 92.8.

Lawrence Yun, NAR chief economist, said home sales continue to edge up and down. “Pending home sales are oscillating month-to-month, with the long-term trend essentially flat,” he said. “Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings.”

Even with the latest pullback, pending home sales have been fairly stable on a national basis for nearly a year, with dramatic local market differences continuing. “Contract signings have been steaming ahead, nearly doubling in activity from a year before in several California and Florida markets,” Yun said. “The outer Washington, D.C., exurbs also are coming around very strongly. The Northeast region retreated following a robust gain in the previous month, and soft activity was observed in the broad midsection of America despite very affordable conditions.”

The PHSI in the Midwest rose 2.8 percent to 81.6 in July but remains 2.4 percent below a year ago. In the South the index was unchanged, holding at 93.7, but is 13.4 percent below July 2007. The index in the Northeast fell 7.5 percent to 73.6 in July and is 13.2 percent below a year ago. In the West, the index dropped 10.6 percent to 90.3 but is 6.5 percent higher than July 2007.

NAR President Richard F. Gaylord said there’s been a surge in FHA mortgage applications. “Unfortunately, many people in high-cost areas aren’t familiar with FHA programs, which is why we produced a toolkit so Realtors, lenders, and other real estate professionals can familiarize themselves with this increasingly valuable program,” he said.

“FHA is taking a more active role in serving a broad cross section of home buyers, but it will take some time to fully get up to speed. We’re working with regulators to improve the process, and the good news is that this is becoming a big help to first-time buyers,” Gaylord said.

Yun said there are many ambiguities in the marketplace. “The economy is producing more, yet cutting jobs. A first-time home buyer tax credit and lower interest rates on newly conforming jumbo loans favors consumers, yet buyer confidence remains low,” he said. “Even with the Treasury Department’s direct intervention in the secondary mortgage market, it is unclear if we will go back to sound normal underwriting criteria, or if it will remain overly stringent. The housing market outlook is very cloudy.”

Yun mentioned that the speed and timing of a recovery depends on local market conditions. “Based on local market fundamentals, I expect robust home price growth in places like Denver and Houston over the next two years,” Yun said. “In addition, the frequent reporting of multiple bids in California and Florida may be signaling a bottom in home prices in these areas. Nationally, home sales are stable now but are expected to increase in coming quarters.”

Looking at middle-ground assumptions, existing-home sales are projected to total 5.01 million this year before rising 6.9 percent in 2009 to 5.35 million. After declining an average of 4 to 7 percent this year, home prices are forecast to rise by 2 to 4 percent next year.

New-home sales will total about 508,000 in 2008 and 463,000 next years, down significantly from 775,000 in 2007. With builders motivated to clear inventory, housing starts, including multifamily units, will probably fall 17.1 percent in 2009 to 801,000 units from 966,000 this year.

The 30-year fixed-rate mortgage, which also has been moving up and down, should trend up to 6.6 percent by the end of this year, edging up to 6.7 percent in 2009. NAR’s housing affordability index is likely to remain favorable throughout 2008, averaging 13 percentage points higher than last year.

Growth in the U.S. gross domestic product (GDP) is forecast to remain positive with a growth rate of 2.0 percent for all of 2008, and 2.0 percent also next year. The unemployment rate is estimated to average 5.8 percent over the coming year.

Inflation, as measured by the Consumer Price Index, is anticipated at 3.8 percent this year and 1.6 percent in 2009. Inflation-adjusted disposable personal income is projected to grow 1.8 percent in 2008 and 2.1 percent next year.

© 2008 FLORIDA ASSOCIATION OF REALTORS

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Posted by Don Suda on September 10th, 2008 12:53 PMPost a Comment (0)

Autumn is a great time to buy Great Time to Buy Florida

September 10th, 2008 12:52 PM

Autumn is a great time to buy

Great Time to Buy Florida

For more positive news stories about the Florida real estate market, visit FAR’s Great Time to Buy Web site here.

ORLANDO, Fla. – Sept. 10, 2008 – This fall could be a particularly great time for first-time buyers or those who have been out of the market for at least three years to jump in, say a variety of real estate professionals.

Here are the reasons why:

• Property prices are probably as low as they are going to go as the market stabilizes, thanks to the government takeover of Freddie Mac and Fannie Mae.

• Interest rates are likely to decline as Freddie and Fannie get government help.

• The Federal Housing Administration recently boosted its loan limits to $729,750 in expensive areas. It’s going to take some of that back on Jan. 1, 2009, when the loan limit shrinks to $625,500.

• The FHA allows down payments of as little as 3 percent, but that will rise to 3.5 percent as of Oct. 1. People scraping dollars together for a down payment should try to set their closing for the end of this month.

• The federal tax credit recently approved will shave $7,500 off a first-time buyer’s federal tax bill due April 15. Buyers who don’t owe tax will get the money as a refund. The government’s definition of a first-time buyer is anyone who hasn’t owned a home in the last three years.

Source: The Washington Post, Elizabeth Razzi (09/07/08)

© Copyright 2008 INFORMATION, INC. Bethesda, MD (301) 215-4688

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Posted by Don Suda on September 10th, 2008 12:52 PMPost a Comment (0)

Mortgage rates may lure buyers

September 10th, 2008 12:50 PM

Mortgage rates may lure buyers

NEW YORK – Sept. 10, 2008 – A drop in mortgage rates that’s accelerated since the government said it would take over Fannie Mae and Freddie Mac has raised hopes that more buyers might be drawn into the housing market and help reverse the worst slump in decades.

Analysts caution, however, that the benefits of lower rates will be tempered by stricter mortgage-lending rules and a stubbornly weak economy. The average rate on a 30-year fixed-rate mortgage fell to 5.88 percent on Tuesday, according to Bankrate.com.

“The job market is a real problem, overwhelming even the lower rates,” says Mark Zandi, chief economist of Moody’s Economy.com. “When we combine the low rates with improvements in the job market, hopefully at the beginning of next year, then there will be some real benefit.”

As Greg McBride, senior financial analyst at Bankrate.com, notes: “It still takes good credit, proof of income and money for a downpayment. With the government taking over Freddie and Fannie, due to the bad loans on their books, the last thing Uncle Sam is going to do is loosen the lending standards now that the taxpayer is on the hook.”

Some mortgage brokers and bankers have seen a modest increase in calls from potential customers in the past two days. Alan Trachtman of Trachtman & Bach, a New York brokerage, says his firm has seen more inquiries from clients. But he says he’s not confident that the lower rates will motivate home buyers the way low rates normally do, given the uncertain economy.

Still, he’s hopeful. “If rates stay down and nothing else happens to oppose it, I think you’ll see a little snowballing for the housing market – just not as big and fast as it (typically is).”

Brian Koss of Mortgage Network, mortgage bankers serving the East Coast and based in Danvers, Mass., says, “We got a huge increase of calls over the past two days.” But Koss adds, “It was pretty much a given five years ago that you’d get the loan. Now, you have all these hurdles you have to go through.”

Should you act now for fear a limited offer will run out?

No, McBride says. Buying a house is like getting married, he says; you don’t marry because there’s a sale at the bridal shop.

“If you have good credit and money for a downpayment, there are some bargains,” he says. “But if you’re six months away because you need to pay down debt or build up your savings, that’s fine. Prices won’t run away from you during that time.”

Copyright © 2008 USA TODAY, a division of Gannett Co. Inc., Anna Bahney. All rights reserved.

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Posted by Don Suda on September 10th, 2008 12:50 PMPost a Comment (0)