The index of U.S. leading indicators rose above expectations in December, posting a 0.3 percent month-over-month gain, according to the Conference Board. The consensus had forecast a 0.2 percent month-over-month decline. November's level was unrevised at -0.4 percent. Over the past six months, the leading index has fallen 5 percent, with five out of the 10 components showing contractions.
The leading index saw positive contributions from consumer goods orders, capital goods, M2 money supply, and the interest rate spread, while consumer expectations were flat. The average workweek fell 0.25 percent from the prior month.
Tuesday, January 27, 2009
Existing home sales rise
Existing-home sales rose unexpectedly while inventory declined, led by a surge of sales in the West, according to the National Association of Realtors®. Existing-home sales jumped 6.5 percent to a seasonally adjusted annual rate of 4.74 million units in December from a downwardly revised pace of 4.45 million units in November, but are 3.5 percent below the 4.91 million-unit pace in December 2007.
For all of 2008 there were 4,912,000 existing-home sales, which was 13.1 percent below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.
Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November. The national median existing-home price for all housing types was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000.
REAL Trends Comment: As we reported in the December REAL Trends Housing Market Report, sales in December were better than expected given the drum beat of negative economic and housing market news. Yes prices are down, nationally somewhere in the 11-14% range, but sales show signs of firming.
Have we reached bottom? With unemployment rising we expect continued downward pressure on sales and prices, but declining inventory and higher affordability may take the edge off substantial further declines in all but a few markets.
Where sales and prices have tumbled the most, the market is more robust. The more brokerage firms insist on accurate pricing among their listings, the less overpriced homes there are on the market, the quicker markets will return to health.
For all of 2008 there were 4,912,000 existing-home sales, which was 13.1 percent below the 5,652,000 transactions recorded in 2007. This is the lowest volume since 1997 when there were 4,371,000 sales.
Total housing inventory at the end of December fell 11.7 percent to 3.68 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, down from a 11.2-month supply in November. The national median existing-home price for all housing types was $175,400 in December, which is 15.3 percent below December 2007 when the median was $207,000.
REAL Trends Comment: As we reported in the December REAL Trends Housing Market Report, sales in December were better than expected given the drum beat of negative economic and housing market news. Yes prices are down, nationally somewhere in the 11-14% range, but sales show signs of firming.
Have we reached bottom? With unemployment rising we expect continued downward pressure on sales and prices, but declining inventory and higher affordability may take the edge off substantial further declines in all but a few markets.
Where sales and prices have tumbled the most, the market is more robust. The more brokerage firms insist on accurate pricing among their listings, the less overpriced homes there are on the market, the quicker markets will return to health.
Tuesday, January 13, 2009
Banks offer mortgage rates below 5%
Mortgage rates continue to drop, and some of the nation's largest banks are offering loans below 5 percent. Chase Bank advertised a 4.75 percent 30-year, fixed-rate mortgage, Wells Fargo's rate was 4.875 percent, and Bank of America was at 5 percent on their Web sites recently. The rates are for borrowers who have a 20 percent downpayment and an excellent credit rating.
The new, lower rates are a result of the Federal Reserve's $500 billion purchase of mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. These new lower rates should increase demand for mortgage refinancing, but it is unclear whether they will be enough to spur a growth in new mortgages.
The average rate for a 30-year mortgage dropped for the tenth consecutive week, according to Freddie Mac's weekly Primary Mortgage Market Survey, which indicated the average 30-year fixed-rate mortgage rate dropped nearly 2 percent from 5.10 percent for the week ending January 1, to 5.01 percent for the week ending January 8. The rate is down nearly 15 percent from this time last year, and is at its lowest level since Freddie Mac began tracking the data in 1971. The Fed buy-up of mortgage-backed securities has boosted the price of securities, and in turn, dropped interest rates.
Source: DSNEWS.com
REAL Trends Comment: Perhaps the housing market is finally seeing the direct benefit from Federal intervention into the mortgage market. Rates are at record lows and the REAL Trends Housing Market Report to be released on Friday, January 16 will show significant improvement in housing sales throughout the country compared both to November data and year ago December closings.
The new, lower rates are a result of the Federal Reserve's $500 billion purchase of mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. These new lower rates should increase demand for mortgage refinancing, but it is unclear whether they will be enough to spur a growth in new mortgages.
The average rate for a 30-year mortgage dropped for the tenth consecutive week, according to Freddie Mac's weekly Primary Mortgage Market Survey, which indicated the average 30-year fixed-rate mortgage rate dropped nearly 2 percent from 5.10 percent for the week ending January 1, to 5.01 percent for the week ending January 8. The rate is down nearly 15 percent from this time last year, and is at its lowest level since Freddie Mac began tracking the data in 1971. The Fed buy-up of mortgage-backed securities has boosted the price of securities, and in turn, dropped interest rates.
Source: DSNEWS.com
REAL Trends Comment: Perhaps the housing market is finally seeing the direct benefit from Federal intervention into the mortgage market. Rates are at record lows and the REAL Trends Housing Market Report to be released on Friday, January 16 will show significant improvement in housing sales throughout the country compared both to November data and year ago December closings.
Thursday, January 1, 2009
Charlotte home prices fall; still among best markets
Charlotte home sales prices continued sliding in October, according to a popular price index released this morning.
Still, Charlotte remains among the best of 20 major urban markets in the monthly index and well below the groups record drop of more than 18 percent.
Still, Charlotte remains among the best of 20 major urban markets in the monthly index and well below the groups record drop of more than 18 percent.
Wednesday, December 24, 2008
Aid to homeowners may double under Bush-backed loan initiative
The mortgage-industry effort to stem foreclosures aims to double the number of borrowers getting help next year, as Democrats call for using taxpayer money to address the crisis. The Hope Now Alliance, a group created at the behest of Treasury Secretary Henry Paulson last year, expects to modify about 2 million mortgages next year, according to a report to be released today in Washington. The group, which includes JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp., also plans a new campaign to boost participation in the program.
Hope Now projects 950,000 loan modifications for 2008, including 208,000 for the month of November. Including repayment plans and other assistance, the group estimates that about 2.2 million foreclosures will have been prevented this year, bringing to 3 million the total averted since the program began in 2007.
Source: Bloomberg.com
REAL Trends Comment: While modification of troubled mortgages may be good social policy it is evident that loans being modified are becoming delinquent at much higher rates than predicted. (See article below). While it may be that policy makers and large mortgage lenders who are participating in the Hope Now Alliance are merely trying to engineer a 'soft"
Hope Now projects 950,000 loan modifications for 2008, including 208,000 for the month of November. Including repayment plans and other assistance, the group estimates that about 2.2 million foreclosures will have been prevented this year, bringing to 3 million the total averted since the program began in 2007.
Source: Bloomberg.com
REAL Trends Comment: While modification of troubled mortgages may be good social policy it is evident that loans being modified are becoming delinquent at much higher rates than predicted. (See article below). While it may be that policy makers and large mortgage lenders who are participating in the Hope Now Alliance are merely trying to engineer a 'soft"
Brokers see declining inventory, more pending sales
In comparison to six months ago, over half of member brokers responding to a recent Leading Real Estate Companies of the World® 'Housing Beat' survey are reporting one bit of good news with declining housing inventory in their markets. And while only 9 percent are seeing an increase in closings, 26 percent are experiencing more pending sales (homes under contract but not yet closed), although many of those contracts are for foreclosure properties.
Meanwhile, nearly a third of brokers are seeing more open house and Web site activity, and 54 percent are seeing much more flexibility from banks in responding to short-sale inquiries. With more affordable prices, it's no surprise that nearly 90 percent of brokers are experiencing more activity with first-time buyers, with only 22 percent reporting the same for move-up buyers and 14 percent for high-end buyers. In many markets, there are rising sales to investors who are taking advantage of opportunities by buying at bargain-basement prices.
Some 72 percent of LeadingRE respondents believe that the original allocation of government funds to provide credit relief to banks was necessary, although most qualified their responses with a strong tone of frustration by noting that the disposition of the funds has bee"
Meanwhile, nearly a third of brokers are seeing more open house and Web site activity, and 54 percent are seeing much more flexibility from banks in responding to short-sale inquiries. With more affordable prices, it's no surprise that nearly 90 percent of brokers are experiencing more activity with first-time buyers, with only 22 percent reporting the same for move-up buyers and 14 percent for high-end buyers. In many markets, there are rising sales to investors who are taking advantage of opportunities by buying at bargain-basement prices.
Some 72 percent of LeadingRE respondents believe that the original allocation of government funds to provide credit relief to banks was necessary, although most qualified their responses with a strong tone of frustration by noting that the disposition of the funds has bee"
30-year fixed rate falls to 37-year low
The 30-year fixed-rate mortgage averaged 5.19 percent with an average 0.7 point for the week ending December 18, 2008-a 37-year low- according to Freddie Mac's Primary Mortgage Market Survey. It was down from last week when it averaged 5.47 percent. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.92 percent with an average 0.7 point, down from last week when it averaged 5.20 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.
REAL Trends Comment: As we first noted in September, lower rates combined with higher affordability would significantly stimulate sales. And despite direct Federal intervention in lowering mortgage rates these two factors are having a positive affect on housing.
While housing markets overall will remain sluggish through next year, recovery depends on low mortgage rates, strong affordability and job/income growth. Unfortunately for optimists, the general economic slowdown will mute any increase in sales in the short term."
The 15-year FRM this week averaged 4.92 percent with an average 0.7 point, down from last week when it averaged 5.20 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.
REAL Trends Comment: As we first noted in September, lower rates combined with higher affordability would significantly stimulate sales. And despite direct Federal intervention in lowering mortgage rates these two factors are having a positive affect on housing.
While housing markets overall will remain sluggish through next year, recovery depends on low mortgage rates, strong affordability and job/income growth. Unfortunately for optimists, the general economic slowdown will mute any increase in sales in the short term."
Surprise! Some areas have had price increases
U.S. Home values declined an average of 8.4 percent in the first three periods of 2008, down $2 trillion in total value, according to a recent Zillow.com Real Estate Market Report. Thirty of the 163 metropolitan statistical areas covered by Zillow, either showed gains in the median value of homes in the area or values stabilized.
Here are the 10 areas where values increased:
* Ithaca, N.Y., 5.6%
* State College, Pa., 4%
* Jacksonville, N.C., 3.9%
* Winston-Salem, N.C., 3.4%
* Bay City, Mi., 3.2%
* Rochester, N.Y. 3.1%
* Greenville, S. C., 2.8%
* Anderson, S.C. 2.7%
* Burlington, N.C., 2.6%
* Spartanburg, S.C., 2.0%"
Here are the 10 areas where values increased:
* Ithaca, N.Y., 5.6%
* State College, Pa., 4%
* Jacksonville, N.C., 3.9%
* Winston-Salem, N.C., 3.4%
* Bay City, Mi., 3.2%
* Rochester, N.Y. 3.1%
* Greenville, S. C., 2.8%
* Anderson, S.C. 2.7%
* Burlington, N.C., 2.6%
* Spartanburg, S.C., 2.0%"
Monday, December 22, 2008
Green Homes! Villas at Winecoff
Villas at Winecoff
The Villas at Wincoff is located just over 1 mile east of I-85 off Hwy 73 in Cabarrus County, North Carolina just minutes north of the Charlotte Metropolitan Area. The Villas at Winecoff is an ideal location for the active adult surrounded by Concord, Kannapolis and Charlotte shopping, dining, entertainment venues, the Charlotte Douglas International airport, and award winning medical facilities.
The Villas at Winecoff is a picturesque blend of exquisite European-style villas and rustic farmhouses like those that have been a retreat for aristocrats for generations. European style is simple yet elegant. Relax in a private courtyard or entertain friends in your state-of-the-art custom kitchen. Rich, earth tones and textures, natural stone, wood and stucco blends with lush landscape… all found in the Villas at Winecoff.
The first community of homes in North Carolina to strive for LEED (green) certification, the Villas at Winecoff features all custom built homes designed for those who enjoy the luxury of a majestic estate but on a smaller scale.
The Villas at Winecoff is the third development of successful developers – Minter Properties. Minter Properties is a family of developers, architects, builders, suppliers and craftsmen who share one vision, not of building houses, but building communities.
The Villas at Wincoff is located just over 1 mile east of I-85 off Hwy 73 in Cabarrus County, North Carolina just minutes north of the Charlotte Metropolitan Area. The Villas at Winecoff is an ideal location for the active adult surrounded by Concord, Kannapolis and Charlotte shopping, dining, entertainment venues, the Charlotte Douglas International airport, and award winning medical facilities.
The Villas at Winecoff is a picturesque blend of exquisite European-style villas and rustic farmhouses like those that have been a retreat for aristocrats for generations. European style is simple yet elegant. Relax in a private courtyard or entertain friends in your state-of-the-art custom kitchen. Rich, earth tones and textures, natural stone, wood and stucco blends with lush landscape… all found in the Villas at Winecoff.
The first community of homes in North Carolina to strive for LEED (green) certification, the Villas at Winecoff features all custom built homes designed for those who enjoy the luxury of a majestic estate but on a smaller scale.
The Villas at Winecoff is the third development of successful developers – Minter Properties. Minter Properties is a family of developers, architects, builders, suppliers and craftsmen who share one vision, not of building houses, but building communities.
2 years later: Water fight continues on
CONCORD — Nearly two years after the cities of Concord and Kannapolis received a state license to draw water from neighboring water basins, the fight over the matter goes on.
Two lawsuits were filed over the matter.
Neither was against the Cabarrus cities.
In January 2007, the state awarded Concord and Kannapolis a certificate to draw up to 10 million gallons a day from both the Catawba and Yadkin river basins.
The Catawba portion of the certificate found great opposition from jurisdictions and groups along the Catawba River — including South Carolina.
South Carolina sued North Carolina for what it claims are insufficient Catawba water levels reaching the state boarder. While the City of Charlotte joined North Carolina in that litigation, Concord and Kannapolis did not.
And a group called the Protect the Catawba Coalition — made of several Catawba river basin jurisdictions — appealed the decision of the N.C. Environmental Management Commission to grant the certificate to Concord and Kannapolis. And Concord has joined the litigation, which is in the 'discovery phase,' said Concord city attorney Al Benshoff.
'It's quite lengthy reviewing a six-year process with lots and lots of documents,' Benshoff said.
The discovery phase, in which both parties produce relevant documents for the case, has gone o"
Two lawsuits were filed over the matter.
Neither was against the Cabarrus cities.
In January 2007, the state awarded Concord and Kannapolis a certificate to draw up to 10 million gallons a day from both the Catawba and Yadkin river basins.
The Catawba portion of the certificate found great opposition from jurisdictions and groups along the Catawba River — including South Carolina.
South Carolina sued North Carolina for what it claims are insufficient Catawba water levels reaching the state boarder. While the City of Charlotte joined North Carolina in that litigation, Concord and Kannapolis did not.
And a group called the Protect the Catawba Coalition — made of several Catawba river basin jurisdictions — appealed the decision of the N.C. Environmental Management Commission to grant the certificate to Concord and Kannapolis. And Concord has joined the litigation, which is in the 'discovery phase,' said Concord city attorney Al Benshoff.
'It's quite lengthy reviewing a six-year process with lots and lots of documents,' Benshoff said.
The discovery phase, in which both parties produce relevant documents for the case, has gone o"
Final decision on land-use plan for East Cabarrus falls to commissioners
CONCORD — The final component of a massive land-use plan for Concord's eastern growth area will fall to a decision from the Cabarrus County Board of Commissioners in January.
The down-zoning decision for 24,500 acres was tabled by the Cabarrus Planning and Zoning Commissioner in September and failed to garner the super majority vote in November, putting the zoning decision in the hands of commissioners.
The down-zoning decision for 24,500 acres was tabled by the Cabarrus Planning and Zoning Commissioner in September and failed to garner the super majority vote in November, putting the zoning decision in the hands of commissioners.
N.C. looks at taxing drivers by the mile | CharlotteObserver.com
Idea for road-use tax is expected to hinge on odometer readings, then GPS tracking, to replace revenue lost to fuel efficiency.
With gas-tax revenues plummeting, the state of North Carolina is looking seriously at taxing motorists for how far they drive.
With gas-tax revenues plummeting, the state of North Carolina is looking seriously at taxing motorists for how far they drive.
Friday, December 19, 2008
Buyers Want Steep Discount on Foreclosed Properties
A new study conducted for Trulia.com and RealtyTrac by Harris Interactive shows that three-quarters of respondents expected a discount of at least 25 percent on a foreclosure purchase. In the previous survey conducted seven months ago, 54 percent of all U.S. adults surveyed said they would consider buying a foreclosed home, whereas now 47 percent of U.S. adults would consider buying a foreclosure."
Thursday, December 18, 2008
Pennsylvania, Carolinas have year's healthiest regions
Good news for at least 30 of the 163 metropolitan statistical areas (MSAs) covered in the Zillow Real Estate Market Reports as the areas showed gains in median value of all homes in the area. The best performing metropolitan area was Jacksonville, N.C., where home values rose 4.9% year-over-year to $139,261 in the first three quarters of the year. Winston-Salem, N.C., also registered a gain, of 4.1% to $136,854. Anderson, S.C., prices climbed 3.5% to $101,816 and State College, Pa., went up by 3.4% to $206,995.
In addition, some markets-particularly those hit hardest in the downturn-showed smaller year-over-year declines than in the prior quarter. 'Our optimism here, though, must be tempered by the knowledge that the larger economic problems that emerged in the fourth quarter will likely further challenge the real estate market,' says Dr. Stan Humphries, Zillow's vice president of data and analytics.
Overall, news wasn't so good. According to Zillow market reports, U.S. homes are set to lose well over $2 trillion in value during 2008. Home values declined 8.4 percent year-over-year during the first three quarters of this year, compared to the same period in 2007. 'This year marked the acceleration of the market correction, and is likely to end with the eight"
In addition, some markets-particularly those hit hardest in the downturn-showed smaller year-over-year declines than in the prior quarter. 'Our optimism here, though, must be tempered by the knowledge that the larger economic problems that emerged in the fourth quarter will likely further challenge the real estate market,' says Dr. Stan Humphries, Zillow's vice president of data and analytics.
Overall, news wasn't so good. According to Zillow market reports, U.S. homes are set to lose well over $2 trillion in value during 2008. Home values declined 8.4 percent year-over-year during the first three quarters of this year, compared to the same period in 2007. 'This year marked the acceleration of the market correction, and is likely to end with the eight"
NAR Pushes for Mortgage Interest Buy-Down
"NAR Pushes for Mortgage Interest Buy-Down
A federal mortgage interest buy-down program would help spark the housing market, the NATIONAL ASSOCIATION OF REALTORS® said in a letter sent today to James B. Lockhart, chairman of the Oversight Board of the Federal Housing Finance Agency.
NAR seeks a 4.5 percent mortgage interest rate buy-down program financed through the U.S. Treasury Department’s Troubled Asset Relief Program."
A federal mortgage interest buy-down program would help spark the housing market, the NATIONAL ASSOCIATION OF REALTORS® said in a letter sent today to James B. Lockhart, chairman of the Oversight Board of the Federal Housing Finance Agency.
NAR seeks a 4.5 percent mortgage interest rate buy-down program financed through the U.S. Treasury Department’s Troubled Asset Relief Program."
Business Picks Up Where Prices Have Tumbled
Sales are picking up in markets where prices are deflated, but the business is different than it was before the bubble burst, observers say.
The housing market in deflated markets--like Arizona, California, Florida, and Nebraska--are beginning to show signs of a rebound. Analysts say that prices have fallen to the point that those with average salaries can afford to buy once again.
'The buyers are returning,' says Lawrence Yun, National Association of Realtors chief economist. 'And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point. But inventory remains high.
The housing market in deflated markets--like Arizona, California, Florida, and Nebraska--are beginning to show signs of a rebound. Analysts say that prices have fallen to the point that those with average salaries can afford to buy once again.
'The buyers are returning,' says Lawrence Yun, National Association of Realtors chief economist. 'And in such a strong way that, now, we are hearing in some cases there is multiple bidding, which hints that maybe pricing is reaching a bottom point. But inventory remains high.
Wednesday, December 17, 2008
Fed rate falls to historic depth
"By cutting its benchmark lending rate to historic lows and promising to combat the recession head on, the Federal Reserve served notice Tuesday that more unconventional actions probably are ahead."
Tuesday, December 16, 2008
Federal Reserve slashes key interest rate to record low
"The Federal Reserve has cut its target for a key interest rate to the lowest level on record and pledged to use 'all available tools' to combat a severe financial crisis and prolonged recession."
Friday, December 12, 2008
Home sales price, closings plunge in region
"Home sale prices and the number of closings continued to tumble in the Charlotte region, data released this morning show.
The average listing price of homes that sold last month fell by nearly 13 percent over the same time last year. Those prices were $213,548 in November and $245,237 in November 2007."
The average listing price of homes that sold last month fell by nearly 13 percent over the same time last year. Those prices were $213,548 in November and $245,237 in November 2007."
Saturday, December 6, 2008
Countrywide to refund 4,800 N.C. homeowners
"Mortgage lender Countrywide Financial Corp. will refund $11.5 million to 4,800 N.C. homeowners under a settlement with the state banking commissioner, the commissioner's office announced today."
Friday, December 5, 2008
Treasury's new plan - 4.5% mortgage rates
Homeowners may soon enjoy mortgage rates as low as 4.5 percent if the Treasury Department has its way. According to The Wall Street Journal's on-line addition, the department is discussing a plan that would use Freddie Mac and Fannie Mae to push banks to make mortgages available at more than a full percentage point below the current levels for a 30 year fixed rate mortgage.
The plan under review might lower rates to the 4.5 percent range and would be in addition to a program announced last week wherein the Federal Reserve will purchase up to $600 billion of debt either issued or backed by Freddie Mac, Fannie Mae, Ginnie Mae, and the Federal Home Loan Banks. That program is already having an effect on mortgage rates, which have dropped and caused investors to pay more attention to the stocks of banks and homebuilders.
Probably in response to the earlier new program and the lower rates, mortgage applications jumped a record 112.1 percent as seasonally adjusted over the previous week, according to the Mortgage Bankers Association. The Journal reported that the government would encourage banks to issue new mortgage loans at lower rates by offering to purchase securities backed by the loans at a price equivalent to the 4.5 percent
The plan under review might lower rates to the 4.5 percent range and would be in addition to a program announced last week wherein the Federal Reserve will purchase up to $600 billion of debt either issued or backed by Freddie Mac, Fannie Mae, Ginnie Mae, and the Federal Home Loan Banks. That program is already having an effect on mortgage rates, which have dropped and caused investors to pay more attention to the stocks of banks and homebuilders.
Probably in response to the earlier new program and the lower rates, mortgage applications jumped a record 112.1 percent as seasonally adjusted over the previous week, according to the Mortgage Bankers Association. The Journal reported that the government would encourage banks to issue new mortgage loans at lower rates by offering to purchase securities backed by the loans at a price equivalent to the 4.5 percent
Tuesday, November 25, 2008
HUGE RATE CHANGE!
I have previously written about the impact of the Mortgage Backed Securities Market (MBS) on rates. This morning, Henry Paulson announced that the Fed will be providing upwards of $800M to free up credit markets; a portion of this money will be used for the purchase of mortgage backed securities. This purchasing will drive bond prices up and rates down. In fact, today's rate for a 30- year fixed is 5.5% with 0 points and FHA 5.99% with 0 points.
Throughout my career these past few months rank among the highest in mortgage rate volatility. However, these rate changes are a big catalyst to getting more people in homes and helping you generate more personal income.
Throughout my career these past few months rank among the highest in mortgage rate volatility. However, these rate changes are a big catalyst to getting more people in homes and helping you generate more personal income.
Fannie Mae's Holiday Present: Suspended Foreclosure Sales
Fannie Mae announced that they are suspending foreclosure sales on occupied single-family properties as well as the completion of evictions from occupied single-family properties scheduled to occur from November 26, 2008 until January 9, 2009.
The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while Fannie Mae works with mortgage servicers to implement the streamlined modification program scheduled to launch December 15.
The temporary suspension of foreclosures is designed to allow affected borrowers facing foreclosure to retain their homes while Fannie Mae works with mortgage servicers to implement the streamlined modification program scheduled to launch December 15.
Monday, November 24, 2008
Exit 49 in Cabarrus expected to grow in international status
Concord tourism officials are talking about Exit 49 blossoming into a major tourist destination, complete with a variety of tourist attractions and hotels for every budget.
New UNC chancellor reconfirms NCRC commitment
KANNAPOLIS - Drumming up support - financial and otherwise - the new chancellor of UNC-Chapel Hill reconfirmed his institution's commitment to the North Carolina Research Campus.
Cabarrus officials mull sales tax hike
Concord - As the state prepares to hand over more road infrastructure responsibilities to its counties and municipalities, the Cabarrus County Board of Commissioners will seek legislation to raise the county's sales tax as a means to pay for road construction.
Thursday, November 20, 2008
Realtors® Tell Congress Increased Housing Demand Will Stabilize the Market
In a statement to the House Financial Services Committee today, the National Association of Realtors® recommended a four-point plan to stimulate home sales and stabilize housing valuations."
Wednesday, November 19, 2008
Economic Slowdown Stalls Remodeling Activity
The residential remodeling market continued its slump during the third quarter of 2008, according to the National Association of Home Builders' (NAHB) Remodeling Market Index (RMI). The current market conditions indicator declined to 33.5, from 41.8 in the last quarter. Future expectations of remodeling work also slid to 27.7 (from 38.0 in the second quarter). Both these indices rest at historic lows since the start of the RMI in 2001.
'Remodelers reported another drop in major home improvements and expectations for future work have also declined,' said NAHB Remodelers Chairman Lonny Rutherford, CGR, CAPS, CGP, a remodeler from Farmington, N.M. 'A slight increase in minor remodeling projects for owner-occupied home suggests customers are cutting back on home improvement spending.' Nationally, current activity for major additions and alterations shrank to 29.38 (from 43.18 in the second quarter) during the third quarter, while minor additions and alterations slowed to 38.51 (from 42.89). Maintenance and repair dropped to 30.92 (from 39.06). The remodeling market is tightening due to more home builders taking on remodeling work, creating a more competitive marketplace and flattening out calls for bids and appointments for proposals."
'Remodelers reported another drop in major home improvements and expectations for future work have also declined,' said NAHB Remodelers Chairman Lonny Rutherford, CGR, CAPS, CGP, a remodeler from Farmington, N.M. 'A slight increase in minor remodeling projects for owner-occupied home suggests customers are cutting back on home improvement spending.' Nationally, current activity for major additions and alterations shrank to 29.38 (from 43.18 in the second quarter) during the third quarter, while minor additions and alterations slowed to 38.51 (from 42.89). Maintenance and repair dropped to 30.92 (from 39.06). The remodeling market is tightening due to more home builders taking on remodeling work, creating a more competitive marketplace and flattening out calls for bids and appointments for proposals."
Rise in First-Time Homebuyers with Long Term Plans
"The latest consumer survey of homebuyers and sellers shows first-time buyers have risen in market share and plan to own their homes longer than buyers in the past. The 2008 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, marketing, preferences and experiences of homebuyers and sellers.
Lawrence Yun, NAR chief economist, said a higher share of first-time buyers makes perfect sense, and it's a trend he expects to grow. 'First-time buyers are much more flexible in entering the market because they aren't concerned about selling an existing home,' he said. 'Given low home prices, plentiful supply and affordable interest rates, it's been an optimal time for entry-level buyers with a long-term view.
'Considering the temporary first-time buyer tax credit and improvements to the FHA loan program, we expect stronger entry-level activity as the flow of credit improves-that, in turn, should free more existing owners to make a trade in 2009.'
The number of first-time buyers rose to 41 percent from 39 percent of transactions in last year's survey and 36 percent in 2006. 'Although modest, this is a meaningful gain for the 12-month period ending at the close of June, and more recent independent da"
Lawrence Yun, NAR chief economist, said a higher share of first-time buyers makes perfect sense, and it's a trend he expects to grow. 'First-time buyers are much more flexible in entering the market because they aren't concerned about selling an existing home,' he said. 'Given low home prices, plentiful supply and affordable interest rates, it's been an optimal time for entry-level buyers with a long-term view.
'Considering the temporary first-time buyer tax credit and improvements to the FHA loan program, we expect stronger entry-level activity as the flow of credit improves-that, in turn, should free more existing owners to make a trade in 2009.'
The number of first-time buyers rose to 41 percent from 39 percent of transactions in last year's survey and 36 percent in 2006. 'Although modest, this is a meaningful gain for the 12-month period ending at the close of June, and more recent independent da"
Mortgage Rates Move Downwards
After several weeks of off-the-charts volatility, mortgage rates moved modestly lower last week, according to Bankrate.com. The benchmark 30-year fixed-rate mortgage fell 5 basis points, to 6.39 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.39 discount and origination points. One year ago, the mortgage index was 6.32 percent; four weeks ago, it was 6.74 percent.
The benchmark 15-year fixed-rate mortgage slid 13 basis points, to 6.08 percent. The benchmark 5/1 adjustable-rate mortgage declined 4 basis points, to 6.42 percent."
The benchmark 15-year fixed-rate mortgage slid 13 basis points, to 6.08 percent. The benchmark 5/1 adjustable-rate mortgage declined 4 basis points, to 6.42 percent."
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