Aug 24, 2012 | Federal Reserve
Eariler this week, the Federal Reserve released the minutes from its 2-day meeting which ended August 1, 2012. Since the release, mortgage rates have dropped.
The Fed Minutes are released on a schedule, three weeks after the FOMC adjourns from one of its 8 scheduled meetings of the year.
The Fed Minutes are meeting minutes; like you’d see after a corporation shareholder meeting, or after a condo board meeting. Specifically, the Fed Minutes details the conversations among Federal Reserve members which shape our nation’s economic policy.
The most recent Fed Minutes show a central bank closer to adding new market stimulus that previously believed.
At its last meeting, the Federal Reserve’s debate focused on the rate of economic growth and whether it was occurring too slowly to be long-lasting. The Fed appears to think so. Without a “substantial and sustainable strengthening” in the pace of economic expansion, it said, additional monetary stimulus would be “warranted fairly soon”. (more…)
Aug 23, 2012 | Housing Analysis
Home resales climbed 2% last month as the housing market continues its measured, steady recovery.
According to the National Association of REALTORS®, Existing Home Sales rose to 4.47 million units in July on a seasonally-adjusted, annualized basis.
An “existing home” is a home that cannot be classified as new construction and, despite a reduction in the national homes inventory, the number of previously-occupied homes sold in July was higher by 10% as compared to one year ago.
The Existing Home Sales also reported the folliowing :
- First-time buyers accounted for 34% of all purchasers, down from 34% in June
- Real estate investors accounted for 16% of all purchasers, down from 19% in June
- Cash buyers accounted for 27% of all purchasers, down from 29% in June
In addition, the real estate trafde group reports that distressed sales accounted for a smaller percentage of the overall home resale market in July. Just 24% of home resales were for homes in various forms of foreclosure or short sale. (more…)
Aug 22, 2012 | Personal Finance
Mortgage rates have been on steady decline in Worcester County area since the start of 2012 as uncertainty for the future of the Eurozone and questions about the soundness of the U.S. economy have led investors into mortgage bonds in droves, lowering the 30-year fixed rate mortgage to its lowest point in history.
But it’s not just mortgage rates that are down. Closing costs are, too.
According to Bankrate.com’s annual Mortgage Closing Cost Survey, the average mortgage applicant paid seven percent fewer closing costs in 2012 as compared to 2011, on average. The year prior, costs had increased thirty-seven percent, on average.
A “closing cost” is any fee paid in conjunction with a mortgage settlement that would not be payable if the home was financed with cash. Closing costs for purposes of the Bankrate.com survey include such items as underwriting fees and appraisal costs. County transfer stamps, where required, however, were not included. (more…)
Aug 21, 2012 | Housing Analysis
The market for newly-built homes remains strong.
As reported by the U.S. Census Bureau, July featured 502,000 single-family housing starts nationwide on a seasonally-adjusted, annualized basis, marking the fourth straight month during which single-family starts posted north of one-half million.
The last time this milestone occurred was in the four months ending April 2010 — the last month of that year’s federal home buyer tax credit.
A “housing start” is a home on which construction has started and the rise in single-family housing starts is yet one more signal to buyers in Worcester County area and nationwide that the housing market has likely put its worst days behind it.
Home builders, it appears, agree with that sentiment.
Last week, the National Association of Homebuilders reported builder confidence to be at a 5-year high. Sales levels have been growing since January and builders expect the next six months to be blowout. (more…)
Aug 17, 2012 | Mortgage Rates
Mortgage rates in Worcester County area keep on rising.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, for the third straight week, the 30-year fixed rate mortgage rate rose, this time tacking on 3 basis points on a week-over-week basis to 3.62%, on average, nationwide. The 3.62% mortgage rate is available to mortgage applicants willing to pay 0.6 discount points plus a full set of closing costs.
Freddie Mac’s published mortgage rates are compiled from a 125-bank survey.
Looking back, it appears that national 30-year fixed rate mortgage rates bottomed at 3.49% in late-July. In the weeks leading up to that bottom, mortgage rates had dropped in 11 of 12 weeks. Since then, however, mortgage rate have increased steadily, climbing to a 7-week high, depending on where you live. (more…)
