Sep 12, 2012 | Housing Analysis
The number of U.S. housing markets showing “measurable and sustained growth” has increased by 19 this month, according to the National Association of Homebuilders’ Improving Market Index.
The Improving Market Index is a monthly report meant to identify U.S. markets in which economic growth is occurring broadly — not just in terms of home prices.
The IMI’s conclusions are based on three separately-collected data series, each from a different division of the U.S. government and each tied to specific local economic conditions.
In this way, the Improving Market Index gives a better idea of which markets will outperform averages in the months and years ahead. (more…)
Sep 11, 2012 | Personal Finance
For today’s home buyers and refinancing households, the value of “good credit” has never been higher.
Mortgage approvals hinge on your FICO score, as does your final mortgage pricing.
If you’re shopping for a home in Massachusetts , therefore, or contemplating a refinance, be aware of how everyday credit behaviors can affect your FICO. Even small events can make a big impact.
Here are some common-sense steps to help improve your credit score.
First, keep a “cushion” on your credit cards.
30 percent of your credit score is linked to “Amount Owed” and a big part of Amount Owed is a raw calculation of (1) What you owe in dollar terms, against (2) How much credit you have at your disposal. The credit bureaus want to see at least 70% of your credit “available”. (more…)
Sep 10, 2012 | Mortgage Rates
Mortgage markets worsened slightly in last week’s holiday-shortened week. As expected, Wall Street took its cues from Europe and from the U.S. jobs market, and mortgage rates moved across a wide range.
Home buyers in Worcester County area and would-be refinancing households were greeted with wildly varying mortgage rates, depending on which day they loan-shopped.
According to Freddie Mac’s weekly mortgage rate survey, 30-year fixed rate mortgage rates averaged 3.55% nationwide last week, with an accompanying 0.7 discount points.
That is, until Thursday’s meeting of the European Central Bank. (more…)
Sep 7, 2012 | The Economy
Beginning as soon as next week, new, mandatory mortgage fees will push mortgage rates higher throughout Worcester County area and nationwide. Fannie Mae and Freddie Mac are raising their respective “guarantee fees”.
Guarantee fees are fees that mortgage-backed securities providers charge to lenders for mortgage-related services including the bundling, selling and reporting of mortgage-backed bonds.
Guarantee fees are also used to insure providers against credit-related losses.
As announced by the Federal Housing Finance Agency, effective for all conforming loans delivered to Fannie Mae or Freddie Mac, beginning November 1, 2012, guarantee fees will be raised by an average of 10 basis points per loan.
Conforming mortgages already average close to 30 basis points in guarantee fee per loan. (more…)
Sep 6, 2012 | Housing Analysis
Home prices continue to rise nationwide.
According to the Standard & Poor’s Case-Shiller Index, home prices rose 6.9% between the first and second quarter of 2012, the largest quarter-to-quarter gain since the home-value tracker’s 1987 inception and another signal that the housing market is in recovery.
The private-sector metric’s results are similar to what the government’s Home Price Index showed for June, too — values rising quickly. In addition, for the second straight month, each of the Case-Shiller Index’s 20 tracked markets showed month-to-month improvement.
June would have marked three straight months if not for Detroit’s value-setback in April.
The top performing markets in June, as tracked by the Case-Shiller Index were :
- Detroit, Michigan : 6.0 percent gain
- Minneapolis, Minnesota : 4.8 percent gain
- Chicago, Illinois : 4.6 percent gain
However, it should be noted that the Case-Shiller Index pulls from a limited sample set. It does not include condominiums or multi-unit homes in its findings, nor does it account for new construction. These exclusions make a material impact on the results of both Minneapolis and Chicago, as examples. Both cities feature a large concentration of condos. (more…)
