Are Mortgage Rates Too Low to Threaten the Recovery?

The recent rise in mortgage rates is not enough to pose any real threat to the housing recovery, but that’s not to say the increase doesn’t come with any risk, according to a recent analysis from Capital Economics.

Freddie Mac’s most recent survey showed the 30-year fixed rate is almost back at 4 percent, while the Mortgage Banker Association reported the 30-year was up to 4.15 percent, the highest since March 2012.

To put things into perspective, Ed Stansfield, chief property economist at Capital Economics, noted that on a long-term view, rates are still “exceptionally low” as they return to levels seen in late 2011 and early 2012.

Please continue reading this article at the link posted below.

Are Mortgage Rates Too Low to Threaten the Recovery?

Buying a House: Is Now the Time?

The real estate community is often criticized for always seeming to have a Pollyanna attitude about the housing market. Many believe that the industry’s current call ‘to buy now’ is nothing more than a scare tactic with the sole purpose of creating more commissions for the industry. Let’s take a look at whether or not that advice was good advice over the last year.

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. According to the most recent Case-Shiller Home Pricing Index, home values have risen over 10% in the last year. If we look at Freddie Mac’sWeekly Primary Mortgage Market Survey®, the 30 year mortgage rate has increased from 3.67% to 3.91% during that same period.

Please take a moment and continue reading this article at the link posted below.

Buying a House: Is Now the Time?

Obama Administration Extends Making Home Affordable Program

U.S. Secretary of the Treasury Jack Lew announced today that Treasury is extending the Making Home Affordable Program for another two years. The new expiration date is now set for December 31, 2015.

The program offers help to homeowners through solutions including the Home Affordable Modification Program (HAMP), Home Affordable Foreclosure Alternatives (HAFA), and the Second Lien Modification Program.

As of March, an estimated 1.1 million struggling homeowners have received a permanent modification through HAMP.

The move aligns with the Federal Housing Finance Agency’s (FHFA) extension for the Home Affordable Refinance Program (HARP), which was first announced in April.

Developing story.

Obama Administration Extends Making Home Affordable Program

HomeVestors: Market Constraints Keep Housing from Another Bubble

Gains in home prices over the last year haven’t provided enough lift to offset the headwinds holding the recovery down—and that’s a good thing, says David Hicks, co-president of Dallas-based HomeVestors.

While reluctance from lenders, sellers, and appraisers has become something of a drag on sales and price improvements, Hicks asserts the market’s slow growth has kept the country away from another housing bubble.

“At the price point of the market we generally service, typically at or below the median price, securing a fair appraisal and financing are typically the major challenges our franchisees face when selling a property,” Hicks said. “Since we focus on ‘ugly houses’ that owners are anxious to sell, we’re not as affected by seller reluctance as is the general market. Everything our franchisees have for sale is selling quickly and in fact, the first quarter of the year was one of the best ever.”

You may continue reading this article at the link posted here: HomeVestors: Market Constraints Keep Housing from Another Bubble

We Want Our Clients to Know the Facts Behind the Numbers!

While some might be rejoicing at the recent rising home prices and rising home sales seen across the nation, Fitch Ratings “still views these gains cautiously.” In fact, the agency predicts price gains will slow and perhaps even reverse over the next year.

Fitch expects a price “trough in the middle of 2014” but suggests inflation will keep prices from falling more than 3.5 percent.

“While rising prices and sales volumes suggest a recovery, they are not moving in sync with key economic indicators that would otherwise support a sustainable price level,” Fitch stated in its most recent quarterly report.

Fitch points to unemployment as one of these “key economic indicators.” Unemployment has declined from its high of 9.9 percent in 2010 to 7.7 percent.

However, the bulk of this decline is the result of fallout in labor force participation, not an improving employment situation, according to Fitch.

If you would like to continue reading this article, please click on the link posted below.

We Want Our Clients to Know the Facts Behind the Numbers

 

Survey Reveals Top Regrets Among Buyers, Renters 

 Slightly more than half of Americans harbor at least one regret about their current home, according to Trulia’s Real Estate Regrets survey. In today’s seller’s market, Trulia says buyers are especially vulnerable to making decisions they may regret in the future. 

“Faced with limited inventory, many buyers will feel pressure to act fast—but snap decisions often end in regrets,” said Jed Kolko, chief economist at Trulia.

One of the common missteps of new homeowners, according to Kolko, is buying before reaching financial stability. “Many buyers would have fewer regrets if they waited until they were in strong enough financial shape to afford a house that really meets their needs,” he said.

The top regret listed among homeowners is not choosing a larger home. Thirty-four percent of homeowners cited this regret in Trulia’s survey.

The second most common regret among homeowners is not remodeling more when they purchased their current homes.

Please, if you have time, click on the link posted and continue reading this article.
Survey Reveals Top Regrets Among Buyers, Renter

Are Young Adults Buying Homes Again?

 Hi friends,  

I came across this article and thought it had some useful information. I wanted to share it with you and hear your thoughts.

  Sales of residential properties are back to the highs experienced at the expiration of the Home Buyers Tax Credit in April 2010. One of the reasons for this surge in purchasing is that young adults may again be entering the market.

Over the last few years, many young adults stayed on the sidelines (some in their parents’ homes) while waiting for the overall economy and the housing market to stabilize. This group represents a pent-up purchasing demand which is now coming to market.

Please continue reading this article at the link posted, Are Young Adults Buying Homes Again?