Check These Rates!

Average rate on 30-year loan up to 4.39%

Mortgage Rate Trend Index

Almost half (42%) the mortgage experts polled this week by Bankrate.com expect rates to decline over the short term. The rest are equally divided: 29% foresee a rate increase while 29% say rates won’t appreciably change.

WASHINGTON – Aug. 2, 2013 – Average rates on U.S. fixed mortgages ticked up this week but are still low by historical standards, a trend that has helped the housing market recover.

Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan rose to 4.39 percent from 4.31 percent last week. Rates are a full percentage point higher than in early May.

The average on the 15-year fixed loan increased to 3.43 percent from 3.39 percent last week.

Rates spiked in June after the Federal Reserve indicated it could slow its bond purchases later this year, which have kept long-term interest rates low.

But on Wednesday the Fed hinted it might hold off because the economy remains sluggish. And it noted for the first time that mortgage rates, which have fueled home sales, “have risen somewhat” from record lows.

Mortgage rates tend to follow the yield on the 10-year Treasury note, which has also jumped on speculation that the Fed could slow its stimulus.

Despite the increases, mortgages are still a bargain for those who can qualify. And low rates are helping boost home sales in most markets and driving home prices up.

Home prices jumped 12.2 percent in May compared with a year earlier, according to the latest Standard & Poor’s/Case-Shiller 20-city index released Tuesday. That’s the biggest annual gain since March 2006.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for a 30-year mortgage was 0.7 point this week, down from 0.8 point last week. The fee for a 15-year loan also declined to 0.7 point from 0.8 point.

The average rate on a one-year adjustable-rate mortgage dipped to 2.64 percent from 2.65 percent. The fee was unchanged at 0.4 point.

The average rate on a five-year adjustable mortgage rose to 3.18 percent from 3.16 percent. The fee declined to 0.6 point from 0.7.
 Copyright © 2013 The Associated Press, Marcy Gordon, AP business writer. All rights reserved. This material may not be published, broadcast, rewritten or redis

Housing Bust Is Over!

NEW YORK (CNNMoney) -- Mortgage rates fell again this week, smashing previous record lows, according to a regular weekly release from mortgage giant Freddie Mac.

The rate for a 30-year, fixed-rate loan, the most popular mortgage product, dropped to 3.62% from 3.66% last week. The rate has matched or hit a new low for 10 of the past 11 weeks, Freddie Mac said. Meanwhile, the 15-year fixed rate fell to 2.89%, down from 2.94%.

"Recent economic data releases of less consumer spending and a contraction in the manufacturing industry drove long-term Treasury bond yields lower over the week, and allowed fixed mortgage rates to hit new all-time record lows," said Frank Nothaft, Freddie Mac's chief economist.

The 15-year fixed-rate mortgage is popular among homeowners who are seeking to refinance or to trade-up and minimize their total interest payments. At the current rate, a borrower financing $200,000 would pay $1,370 a month and spend a total of just under $47,000 in interest over the 15-year span of the mortgage.

Related: Where home prices are rising fastest

Buyers who want to minimize their monthly payments by opting for a 30-year loan would have payments of just $911 a month on a $200,000 loan. But they would pay $128,000 in interest over the life of the loan.

Summer Renovations

Getting Ready for Summer Renovations?

Are you tired of your home's layout? Bored with its inadequate lighting or outdated fixtures or, simply in need of a little change? Many homeowners across the country are gearing up for their summer renovations; whether you're just reaching out to builders, finalizing plans, finessing details or stocking away pennies to pay for it all, be sure to include electrical plans in the mix.
Remember - a home is a system of electrical, heating, lighting networks which work together to create a warm and safe abode. So, an important part of all summer renovations is the careful consideration of the electrical wiring in your home.
If you're planning on building a recreation room, enhancing your kitchen or making over your living room, you should design your layouts around each room's key features. So, keep in mind where all electrical outlets will need to be for lights, appliances and electronics. Considering heated floors or ceiling fans? You will need a reliable, well-trained electrician to plan out the installation of these features and determine how to best install electrical wiring.
Wall plans are also required in order to lay out your house wiring. You'll have to ensure that you enlist the help of a professional electrician to help you draw out the plans in advance so that you can get the necessary permits without delay. You may find your electrical wiring needs upgrading to maintain safety in your home and meet housing standards. As such, renovation jobs can take longer than originally planned; so, always add extra time to allow for setbacks.
If you are tearing down any walls in your home, make sure that an electrician determines where all electrical wiring is located. Once you begin the process, it may be too late to employ a quick fix if something goes wrong.

Copyright© 2012 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Turtles

South Walton’s sugar-white sand beaches are a big draw for visitors, but they’re also home to some of the area’s tiniest residents. During the months of May through October, endangered sea turtles build nests in that sand, and need the help and consideration of human beachgoers in order to thrive and survive.

The two most common species of turtles in South Walton are Green Sea Turtles and Loggerheads. In the late spring and early summer, female sea turtles that were born in South Walton return to build nests. Later in the summer and in the early fall, the turtle eggs in the nests begin to hatch, and the hatchlings use light reflected off the surf to guide them into the ocean. South Walton has a dedicated team to help identify and protect the turtles, but there are things that beachgoers can do to make sure their efforts are a success:

• Prevent all lights from illuminating the beach– Turn off balcony and porch lights and draw blinds each night. Use only flashlights with red film covers (which are available at area businesses and the Visitor Information Center) as sea turtles become disoriented on their crawl back to the surf.
• Look but don’t touch – Do not disturb or handle any sea turtles, their eggs or their nests. All are violations of both federal and state laws.
• Don’t leave holes – Fill in any holes you dig including holes left from sticking poles and beach umbrellas into the sand. This will ensure others don’t get injured and that you don’t create obstacles for nesting sea turtles.
• Keep the beach clean – Reduce litter by disposing of your trash properly and removing all personal items from the beach each night.

Visit South Walton is a proud sponsor of these efforts. To find out more, visit southwaltonturtlewatch.org.

Mortgage Rates Continue To Drop!

Mortgage Rates for a 30 year loan are down from 4.64% average in May 2011 to 3.8% average this last May 2012. With rates going even lower it is a good time to buy or refinance.

U.S. home buying finally signals a recovery

Many would-be buyers appear emboldened by reduced prices, record-low mortgage rates, higher rents and more jobs.

Confidence in consummer's views of their own Finances is Stablizing! Fannie Mae says an   increasing number of Americans now expect home rental costs and home purchase prices to increase over the next year.

Loan Mortgage Rates Tie Record Low!

The average rate on the 30 year fixed mortgage rate has dropped to 3.94%. These low rates offer historic opportunity for home ownership. The average rate on the fifteen year mortgage rate fell to 3.21%, also a record low.

REO Sales

When will REO sales finally reach the peak?

NEW YORK – Oct. 19, 2011 – Properties repossessed through foreclosure may not peak until 2013, HousingWire reports, quoting several analysts and recent reports.

Foreclosure sales are expected to reach 1.48 million properties in 2013, according to analysts from Bank of America Merrill Lynch.

However, with the surge, “we do not expect to see anywhere near the downward pressure on home prices that we had back in 2008, since the expected percent changes in liquidation volumes are so much smaller,” the analysts said.

The increase in foreclosures is expected to mostly change from private banks’ portfolios – which nearly half are from now – to the government’s backlog of properties, with an increase in foreclosures forecasted from Fannie Mae, Freddie Mac, and the Department of Housing and Urban Development’s portfolios. Overall, they are expected to liquidate about 595,000 properties in 2013.

To handle the expected surge, the government continues to consider ideas, including proposals of turning some of the foreclosures into rentals, and a plan from the Federal Housing Finance Agency to refinance more underwater borrowers so they’ll be less likely to walk away from their property.

But some analysts are skeptical that a surge in foreclosures will come without an intervention from the government.

“Do they really think that the government under any administration would let 500,000 homes hit the mark and crash prices all over again, six years after the first crash?” Scott Sambucci, chief analyst at Altos Research, told HousingWire.

Source: “REO Sales May Not Peak Until 2013,” HousingWire (Oct. 17, 2011)

Housing Inventory Dropping

Shadow Inventory Drops: ‘Positive Sign for Housing’

DAILY REAL ESTATE NEWS | WEDNESDAY, SEPTEMBER 28, 2011

Residential shadow inventory is on the decline, falling in July to 1.6 million units and representing a supply of five months, a new report from CoreLogic shows. 

One year ago, nationwide shadow inventory stood at 1.9 million units, marking a six-month supply. Shadow inventory is 22 percent lower than the peak reached in January 2010 of 2 million units -- or 8.4 months of supply.

CoreLogic calculates shadow inventory by taking into account the number of distressed properties not yet listed on the multiple listing services that are more than 90 days delinquent, in foreclosure, and real estate owned by lenders. 

"The steady improvement in the shadow inventory is a positive development for the housing market," says Mark Fleming, chief economist for CoreLogic. "However, continued price declines, high levels of negative equity, and a sluggish labor market will keep the shadow supply elevated for an extended period of time."

Source: “Shadow Inventory Declines to 5-Month Supply: CoreLogic,” HousingWire (Sept. 27, 2011)

Destin, Florida Seafood Festival

Staged-to-Sell, But Is it Priced-to-Sell?

September 12, 2011 by Melissa Tracey · 4 Comments
Filed under: Home Trends, Staging Tips 

By Melissa Dittmann Tracey, REALTOR® Magazine

Staging a home to perfection can certainly get buyers’ attention, but pricing the home to sell is what often will get them in the front door, housing experts say.

With home values dropping across the country, a few sellers are still struggling to come to terms that their home may not be worth what they previously thought. About 77 percent of home owners believe their home is worth more than the recommended listing price, according to real estate professionals surveyed in the HomeGain National Home Values Survey. Yet, about 67 percent of home buyers say home values are still overpriced.

Nearby foreclosures can certainly influence a seller’s asking price. Foreclosures in a community can actually reduce nearby property values, on average, by $20,300 per household, according to research by the Center for Responsible Lending.

But many sellers can’t accept that their home’s value may be lower because of the houses down the street.

The sellers who tend to be overpricing their homes the most are the ones who bought post-housing bubble too, according to a study earlier this summer by Zillow.

Zillow found that home sellers who purchased their home in 2007 or later are overpricing their homes by an average of 14.1 percent. On the other hand, sellers who purchased their homes between 2002 and 2006 (pre-housing bubble) tend to price their homes about 9.3 percent above market value, according to the Zillow study.

“Post-bubble buyers seem to believe they escaped the worst of the housing recession, as evidenced by how they price their homes today,” says Stan Humphries, Zillow’s chief economist. “But 2006 was just the beginning of the housing recession, and it is continuing in earnest to this day. That means that even people who bought after the bubble burst need to break out the pencil and paper and do serious research into what has happened in their market since they first bought their home, whether it was four years ago or six months ago. Overpricing homes causes them to stagnate on the market and keeps inventory from decreasing–not a desirable outcome for either the sellers or the market as a whole.”

Downsizing Trend Shows Signs of Reversing

DAILY REAL ESTATE NEWS | MONDAY, SEPTEMBER 12, 2011

New-home sizes had shown signs of shrinking since the housing crisis and recession. However, Americans are still showing signs of living large. 

A new-home built in 2010 averaged 2,392 square feet — still more than 650 square feet larger than in 1980, according to U.S. Census Bureau data. While square footage in new homes have dropped slightly since 2007 (when it as 2,521 square feet), new-home sizes are still bigger than what they were from three decades ago. In 1980, new homes were, on average, 1,740 square feet. 

With the extra square footage nowadays, home owners are adding more rooms. For example, in 1980, more than 25 percent of all new homes had 1.5 bathrooms or less. In 2010, only 8 percent of homes had 1.5 or fewer bathrooms, while the overwhelmingly majority had a lot more. 

Source: “The Way We Live Now is Bigger,” LifeInc.com (Sept. 8, 2011)

Foreclosure Wave Has Crested!

Foreclosure Wave Looks As Though It Has Crested According to USA Today News. 

Fewer US homes are going delinquent and problem loans have hit 3 year lows, possibly signaling that a 5 year wave of foreclosures is starting to recede. 

Almost 4 million homes have been repossessed by lenders since 2006.

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