December Round Up: Rates Hit New Low

January 14th, 2009 mullinaxteam Posted in Uncategorized Comments Off

In Freddie Mac’s results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.8 point for the week ending December 24, 2008, down from the previous week when it averaged 5.19 percent. Last year at this time, the 30-year FRM averaged 6.17 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

The 15-year FRM averaged 4.91 percent with an average 0.7 point, down from the previous week when it averaged 4.92 percent. A year ago at this time, the 15-year FRM averaged 5.79 percent. The 15-year FRM has not been lower since April 1, 2004, when it averaged 4.84 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.49 percent, with an average 0.6 point, down from the previous week when it averaged 5.60 percent. A year ago, the 5-year ARM averaged 5.90 percent.

One-year Treasury-indexed ARMs averaged 4.95 percent with an average 0.6 point, up slightly from the previous week when it averaged 4.94 percent. At this time last year, the 1-year ARM averaged 5.53 percent.

“Interest rates on 30-year fixed-rate mortgages eased for the eighth straight week and set another record low since Freddie Mac’s survey began in 1971,”said Frank Nothaft, Freddie Mac vice president and chief economist. “Real GDP growth fell 0.5 percent in the third quarter of the year, pulled down by the largest drop in consumer spending since the second quarter of 1980. The market consensus calls for an even larger decline in the last three months of the year.

“The housing market, meanwhile, continues to contract. Existing home sales (excluding condominiums and co-ops) fell 8.6 percent in November to 4.0 million houses (annualized) in November, representing the slowest pace since July 1997. Moreover, the median sales price fell 12.8 percent from November 2007, the largest 12-month decline since records began in January 1968, according to the National Association of Realtors®.”

Written by Realty Times Staff


What’s In, What’s Out with Home Buyers in 2009?

January 13th, 2009 mullinaxteam Posted in Uncategorized Comments Off

 

Mark Nash, author of four real estate books, has completed his annual survey of 839 real estate agents in all fifty states in the US and the eight provinces of Canada.

What’s in, what’s out with Homebuyers illuminates what’s popular or what sours homebuyers in both the home purchase or sale transaction and home decor. Compiled annually from-the-trenches, it offers a spectrum of tips that cover reality of buying a home and design no-no’s for home sellers and buyer must-haves.

What’s IN

 

  • Sidelined home buyers. Family or lifestyle additions or changes made in buyers households in the last three years are forcing those waiting out the market transition to finally get off the fence and say, it’s time for our family to buy the new home that suits our new needs. 
  • Home uplifts. Not a big renovation, but some new finishes that can visually holdover stay-put home sellers. Not a gut rehab to the studs new kitchen, but new flooring, countertops and appliances. 
  • Collaborative home pricing. The old days of home sellers configuring a homes price are out. What’s new is that the seller with their agent look at closed comparables, set a price, then the buyer and their agent agree or disagree, but in the end, a mortgage lender and their appraiser will set the price, as they are assuming the most risk in the transaction. 
  • Balanced reporting by real estate and personal finance journalists. Consumers learned in 2008 that the ‘doom and gloom’ residential real estate market headlines don’t apply to all markets. What’s been lost in the foreclosure hype is that there are still stories of homes selling in short market times (in as little as 3 days), homes selling at full price and some selling with multiple contracts on the table. Existing home sales will be 5.02 million versus 5.652 million for 2007, a decrease of just over eleven percent, considerably less that the recent correction in the U.S. stock market, plus a realistic view that over five million people purchased a home despite the headlines in 2008. 
  • Creative home seller financing. Exhausted home sellers are turning to self-financing to move properties. Installment sale contracts and lease to own are the most popular and effective ways for sellers to begin to receive income from a property that has languished on the market in 2008. 
  • Property tax appeals. With home prices dropping, many savvy home owners are appealing their property taxes. This is especially attractive to those looking to sell their home in 2009. With a competitive marketplace, those with the most realistic taxes are more likely to offer buyers an overall lower expense in home ownership. 
  • House therapists. Divided partners in a home are increasingly relying on an independent third party (house therapist or coach) to bring household relationships to common ground on such prickly issues such as to stay or move, how much to spend on remodeling or decorating, or spending nothing at all. Third parties can outline the benefits and pitfalls of over-spending on a new larger home or weighing in on a spouses desire to over-improve for the neighborhood. With less equity and with the financial stakes higher smart couples hire a home therapist to wrangle concessions and agreements out with their significant other instead of doing damage to their relationship by going head-to-head with them. 
  • Architectural overhead garage doors. After years of bland vanilla garage doors, the architecture has permeated the door most people look at the most. Traditional styling has arrived with mullioned windows, faux wrought iron hinges and latches that provide the original non-overhead garage door look. Contemporary looks now include the adjacent siding applied over the door for a seamless look, much like the panels installed on refrigerator doors to complement cabinets in a kitchen. 
  • Loveseats. A pair or trio is gaining acceptance as the functional way to rearrange a living or family room. Consumers appreciate the ease at which they can rearrange them, move an extra one to another room, or provide long-term furniture flexibility in future homes. Plus, they’re tired of sitting miles away from others on over-sized sectional sofas. 
  • The master bed as a throne. With consumer spending down and more nesting at home, home owners are focusing on making their bed like an at-home luxury hotel experience. Posh linens, pillows and mattresses create a getaway without leaving home. 
  • Older war-horse appliances. Collectable, working appliances form the 1940′s through the late 1980′s have found a new niche among homeowners who appreciate their rock-solid construction and durability. Harvest gold double ovens from the 1970′s have been repainted a metallic red and go from boring to bold. Cold spot refrigerators from the 1950′s refinished in sky blue perks up the butler’s pantry in suburban home. And, the early 1960′s dryer that looks like it’s from a Jet son house painted pink to match punches up the in-unit laundry room in a condominium. 
  • Dining chairs that don’t match. With consumers watching their non-essential spending closely and electing to stay home to entertain friends, many have found a quick pick-me-up for their dining room suite, mismatched pairs or single chairs. Feedback from friends or family has been favorable to this easy and cost effective way to say welcome to my cutting edge table.What’s OUT

     

  • Fixer-upper homes. With larger down payments required by mortgage lenders and consumer credit cards mixed out, home buyers want a home in move-in condition. The DYI days are on the wane as buyers want to inherit new kitchens and bathrooms. 
  • Foreclosure fluff. The foreclosure rate nationally in 2008 was just under 3 percent. In the Great Depression it was just over forty-percent. 
  • Home buyers endless “circling” prospective short-list properties. Overly optimistic thinking by buyers to circle a preferred property indefinitely, often for months, waiting for further price reductions or to wear out long weary sellers. This practice has backfired for buyers who practice this style of pre-negotiating. They often loose their short-list dream home and frustrate savvy price-right sellers. Ditto the bottom-feeder buyers. 
  • Home staging. A recently over-used low cost marketing band-aid for vacant or occupied homes with longer than normal market times. Buyers have said enough of the non-professional usage of assorted leftover props placed around a for-sale home to make it supposedly homey. Buyers say, market it as it is and clear out the tired silk flowers and stale potpourri. 
  • Indoor-outdoor carpet. The staples of quick-fix home sellers for basements, balconies, screened porches and lanai’s, buyers have said enough. Many have told agents that inexpensive indoor-outdoor carpet is visual pollution and often masks flaws in a home. 
  • Track lighting. Thought of by homeowners to be a quick way to get an art gallery look, many prospective buyers usually take them out and discount their appeal. As one Gen-X home buyer said to me “Why do sellers install them up when they don’t really have any interesting artwork or architectural features to spotlight? They bring undue attention to nothing.”

    Written by Mark Nash


    • Fix Housing First Coalition Seeks To Revive Economy

    January 12th, 2009 mullinaxteam Posted in Uncategorized Comments Off

     

    The National Association of Home Builders (NAHB) is spearheading Fix Housing First, one of the largest coalitions of housing advocates ever assembled in the United States, to push for a housing recovery plan that will revive the economy.

      “If we are going to successfully pull our nation out of recession, we must address housing first,” said NAHB President and CEO Jerry Howard.  

    Fix Housing First, which consists of more than 600 organizations, home building companies and manufacturers continues to add new members on a daily basis, is pressing for a major stimulus package to stem the decline in home values, stabilize financial markets and reignite consumer demand. To get the economy moving again, the coalition is urging Congress to support enhancements to the home buyer tax credit and provide below-market 30-year fixed-rate mortgages for home purchases.

      “If Congress enacts a meaningful tax credit, coupled with an aggressive interest rate buy-down program, we are confident that these measures will help to stabilize home prices, prevent future foreclosures, restore consumer confidence and start creating jobs,” said Howard.  

    The coalition cites a similar plan that worked in 1975, when the nation was also in the midst of a recession. Congress then passed a short-term $2,000 tax credit for all new homes ($12,000 adjusted for today’s median home prices) along with subsidized mortgage rates. The stimulus jump started the depressed economy and the effects continued long after the measure expired.  

    “Entering this holiday season, we saw a sobering loss of more than half a million jobs in November, and major job cutbacks among the nation’s top employers are being announced daily,” said Howard. “We need to put a stop to this dangerous erosion on Main Street before it grows out of control.”  

    Enzo Perfetto, a third-generation home builder from Cleveland, has gone from constructing 20-to-30 homes annually to just one this year as a result of the economic downturn. The situation is critical and getting worse, he said. “Home building generates American jobs. You can’t outsource the construction of a home. But these jobs won’t return until the credit freeze ends and our government addresses the housing crisis.”  

    “We are leaving no stone unturned in conveying to our government and the public the message that a housing stimulus is urgently needed, and that restoring demand for housing is the fastest and most effective way of reviving the economy,” Howard said.  

    The housing stimulus proponents are calling for significant enhancements to the current $7,500 tax credit for first-time home buyers. Among the improvements:  

     

  • All primary home purchases between April 9, 2008 and Dec. 31, 2009 would be eligible.   
  • The credit amount would be increased to 10 percent of the price of the home, capped at 3.5 percent of FHA loan limits, bringing the credit to a range of roughly between $10,000 and $22,000.   
  • The current recapture provision would be eliminated. Repayment would only be required if the home were sold within three years.   
  • The credit would be available at the time of closing, making it easier to be used as a downpayment.  The second component of the stimulus plan would provide qualified home buyers with 30-year fixed-rate mortgages at 2.99 percent on contracts closed until June 30, 2009 and 3.99 percent on closings between June 30 and Dec. 31, 2009.

      The coalition has also announced its support for continuing foreclosure prevention measures to keep people in their homes.  

    To help buyers in California and other high-cost markets, NAHB is also calling on Congress to permanently keep the FHA/Fannie Mae and Freddie Mac conforming loan limits at $729,750. Under current law, the loan limits for high-cost areas will be reduced to $625,500 on Jan. 1, 2009.  

    Fix Housing First points out that 3 million home building-related jobs have been lost as a result of the slowdown in housing production, which represents $145 billion in lost wages and $4.9 billion in lost purchases. Deterioration in these jobs has now spilled over into virtually all sectors of the U.S. job market.

    Written by Realty Times Staff


    • Still Many Happy Returns for Home Rehabs

    January 11th, 2009 mullinaxteam Posted in Uncategorized Comments Off

     

    Despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.

      Many people are wondering where their money will be safest during these uncertain economic times. Experts still advise investing in your home still pays off.  

    National Association of Realtors® (NAR) statistics show that home prices have fallen by an average of 7 percent nationally in the past year. But the value of home owners’ investment in remodeling projects has declined only 3.86 percent on average between 2007 and 2008, according to Remodeling’s 2008–2009 Cost vs. Value Report.  

    Remodeling produces the Cost vs. Value Report each year in cooperation with Realtor® magazine. Realtors responding to a survey in midsummer said home owners could expect to recoup a national average of 67.3 percent of their investment in 30 different home improvement projects. At the height of the housing boom in 2005, home owners could expect to recoup a national average of 86.7 percent on projects.  

    Remodeling remains hot in 10 cities, where, on at least some projects, home owners can recover 100 percent of their costs. In Charlotte, N.C., for example, decks, midrange kitchen remodels, vinyl siding, and window-replacement projects all would net more than they cost, in respondents’ estimation. High rates of recovery were seen in both strong real estate markets and weak ones.   

    Many cities with the highest rates of recovery were smaller—Jackson, Miss., and Billings, Mont., for example—which may point to lower labor and materials costs that are easier to recoup.   

    Seattle also made the list of cities with a cost recovery of more than 100 percent on decks and minor kitchen remodels. In fact, Pacific Coast cities recorded the best payback on remodeling by a wide margin, as they did in 2007. Although construction costs on the Pacific Coast are nearly 17 percent higher than national averages, the value of renovations at resale more than makes up for those higher prices.   

    The result is an average cost-recouped percentage that’s 14.8 percent higher than in the rest of the country. The toughest place to get your money back: Midwestern cities such as Chicago, Cleveland, Indianapolis, and Milwaukee.  

    Top 10 Project Paybacks

      Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

    • Upscale fiber cement siding (86.7%)
    • Midrange wood deck (81.8%)
    • Midrange vinyl siding (80.7%)
    • Upscale foam-backed vinyl (80.4%)
    • Midrange minor kitchen remodel (79.5%) 
    • Upscale vinyl window replacement (79.2%)
    • Midrange wood window replacement (77.7%)
    • Midrange vinyl window replacement (77.2%)
    • Upscale wood window replacement (76.5%
    • Midrange major kitchen remodel (76.0%)

    Written by Realty Times Staff


    BARTOW COUNTY EVENT…

    January 10th, 2009 mullinaxteam Posted in Uncategorized Comments Off

    November 18, 2008-January 11, 2009
    4th Annual Kids Cowboy Up Art Exhibit
    Booth Western Art Museum, Cartersville, Georgia


    Quick! Take That Low-Interest-Rate Holiday

    January 9th, 2009 mullinaxteam Posted in Uncategorized Comments Off

      One holiday Blue Light Special appears to be working. Interest rates are as low as they been since Freddie Mac started tracking them, refinancing applications are soaring and home buys are on the move.

    Freddie Mac on Christmas Eve said the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent for the week ending Dec. 24, 2008. That’s the lowest the rate has been since Freddie Mac started the Primary Mortgage Market Survey in 1971.

    The 15-year rate averaged 4.91 percent.

    Five year hybrid adjustable rate mortgages (ARMs) were higher at 5.49 percent, but 1-year ARMs were below 5 percent at 4.95 percent nationwide and even lower 4.75 in the Northeast and Southwest.

    With all the money you’ve been saving on reduced holiday spending and gasoline conservation, and all those motivated sellers out there twisting in the frigid wind, it’s a good time to be thinking about refinancing or better yet, “Buy A Home — Now!”

    Forget settling down for a long winter’s nap. It’s obviously time to put on your refinance thinking cap or your buy-a-home lid, not that go-to-sleep winter topper. Either way, you won’t be alone. Jack Frost can’t hold a candle to housing consumers who feel the heat.

    On Dec. 24, the Mortgage Bankers Association’s composite index of mortgage applications to buy a home or refinance a mortgage rose to 1,245.4, the highest since 2003, from 841.4 a week earlier. The group’s refinancing gauge rose 63 percent and purchases gained 11 percent.

    Low rates have you looking to refinance?

    The average rates are so low, refinancing can benefit even those who purchased a home a year or two ago, even if they had a small equity stake in their home and used an ARM to buy. The key, say the experts, is to examine your options.

     

  • Visit your existing lender first, especially if your lender doesn’t sell loans and has a vested financial interest in keeping its portfolio intact. It will prefer to refinance you at the going rate rather than cut a loan modification and lose money.Also shop around at other banks, credit unions and other lenders that also retain loans.

     

  • Trading an ARM for a fixed rate that’s slightly higher also isn’t a bad deal if that ARM rate will eventually explode with an upward adjustment. 
  • A 40-year mortgage also can help offset the cost of trading an ARM for a fixed rate, due to the longer term’s relatively smaller payments. 
  • If you have both equity in your home and pristine credit, bargain hard. You have the most options. 
  • Quickly pull your credit report from the only federally-sanctioned free service, AnnualCreditReport.com and check it twice for accuracy. 
  • Don’t overlook trading one ARM for another, especially if the new ARM is a hybrid that provides enough breathing room, say five or seven years or more before the first adjustment. 
  • A U.S. Housing and Urban Development-approved counselor, experienced mortgage broker or mortgage adviser can help you quickly sort through options from lenders, bailout programs and other sources to get you a refinanced mortgage — fixed or adjustable — that is most viable. 
  • Examine all potential options by comparing all loan costs of each refinance from a variety of sources — in-house lenders, secondary market lenders and brokers.Low rates making you think about buying?

     

  • Budget. Know all sources of every penny and where every penny goes. You can’t know where you can cut costs until you know in detail what those costs are. 
  • Save. Pinch Pennies. Save More. Being miserly isn’t lame. It’s a prerequisite to homeownership. If you don’t have a savings account worth three to six months of your net income, you are already behind should there be an emergency. In addition to money for the down payment, lenders today will expect you to have some cash left over for insurance, taxes, maintenance and other costs that come with homeownership. 
  • Don’t just get your credit report, read it. Your credit report is a report card on your credit use — the good, the bad, the ugly — and, too often, the incorrect. Which is why you want to see it. If there are errors, follow the instructions to correct them. 
  • Get professional help. Can’t determine what your credit report is trying to tell you? Not sure how to calculate what you’ll need to save for a down payment? Don’t know how to set up a budget? Most consumers don’t. It’s okay to ask for help. It’s smart to ask for help. You don’t know everything about buying a home, even if you are moving up, but especially if you are a first-timer. Save the pride for after the purchase. 
  • Whether it’s a financial planner, financial counselor, real estate agent, mortgage broker, loan officer, or family friends, ask who you trust for references to find those who can help you. Get help in setting goals, sifting through mortgage programs, understanding the title and escrow process, finding a home and keeping a home — all well before you are actually in the market for a home. 
  • Learn about market and economic conditions that could impact your decision. Learn about home prices, mortgage rates, home buying costs and other issues surrounding what’s likely to be your most complicated purchase ever.Attend workshops, seminars and classes.

    Browse for housing information from online content providers, including MyMoney.gov and the Better Business Bureau (search “Tips for Troubled Homeowners”).

    Pick up a few books, or save some bucks in the library reading “Buying Your First Home” (Nolo, $24.99); “The National Association of Realtors Guide To Home Buying” (Wiley, $19.95) and “Let’s Get Real About Money” (Financial Times, $19.99), among others.

     

  • Above all — refinancing or buying — move fast. The mortgage market is as volatile as it’s ever been. Rates could quickly reverse course and head back into Scrooge territory.

    Written by Broderick Perkins


    • Mortgage Rates…

    January 8th, 2009 mullinaxteam Posted in Uncategorized Comments Off

     Mortgage Rates
    U.S. averages as of December 24, 2008:

    30 yr. fixed:   5.14%
    15 yr. fixed:   4.91%
    1 yr. adj:        4.95%