Jul 24, 2012 | Mortgage Rates
Another week, another new low for mortgage rates.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the 30-year fixed rate mortgage rate fell 3 basis points to 3.53% last week nationwide. The 3.53% mortgage rate is available to mortgage applicants who are willing to pay 0.7 discount points, on average, plus a full set of closing costs.
One year ago, the 30-year fixed rate mortgage rate was 4.52%. Today, it’s nearly one percent lower. For every $100,000 borrowed at today’s rates as compared to July 2011, a mortgage applicant will save $57 per $100,000 borrowed, or $684 per year.
Over 30 years of a loan, those savings add up.
30-year fixed rate mortgage rates have now dropped through 5 consecutive weeks, and in 11 of the last 12 weeks, a streak dating back to late-April. Depending where you live, (more…)
Jul 20, 2012 | Housing Analysis
Home resales slipped more than 5 percent last month, putting a damper recent housing market enthusiasm.
According to the National Association of REALTORS®, Existing Home Sales fell to 4.37 million units in June 2012 on a seasonally-adjusted, annualized basis. This is 250,000 fewer home sales per year as compared May’s figures which NAR has revised 2 percentage points higher.
The pace at which homes are selling has slowed, too. As compared to May, the Existing Home Supply rose 0.2 months. At the current pace of sales nationwide, the national home supply (more…)
Jul 19, 2012 | Housing Analysis
New construction housing is in a post-recession rally.
As reported by the Census Bureau, on a seasonally-adjusted, annualized basis, last month’s Single-Family Housing Starts rose 5 percent to 539,000 units nationwide. This is the highest reading since April 2010, the last month of that year’s federal home buyer tax credit.
A “housing start” is a new home on which construction has started.
June’s strong numbers also mark the fourth consecutive month during which Single-Family Housing Starts have climbed. This, too, has not occurred since April 2010.
The data is yet one more signal to Massachusetts home buyers that today’s new construction market has its worst days behind it.
Home builders think so, too.
Earlier this week, the National Association of Homebuilders released its monthly Housing Market Index, a metric which tracks homebuilder confidence. Home builders report higher (more…)
Jul 18, 2012 | Housing Analysis
Homebuilder confidence is soaring.
For the second time in three months, the National Association of Homebuilders reports that the Housing Market Index made sizable gains.
The Housing Market Index measures homebuilder confidence in the new construction market and is scored between 1-100. Readings above 50 indicate favorable conditions in the single-family new home market. Readings below 50 indicate poor conditions.
The Housing Market Index leaped to 35 in July, a 6-point improvement and the index’s biggest one-month gain since September 2002.
The HMI is now up 14 points this year and is more than double its value of one year ago.
The Housing Market Index itself is a composite of three separate survey questions sent to NAHB members monthly. The questions are basic :
- How are market conditions for the sale of new homes today?
- How are market conditions for the sale of new homes in 6 months?
- How is prospective buyer foot traffic?
For July 2012, home builders reported huge gains. Current home sales are up 6 points; sales expectations for the next six months are up 11 points; and buyer foot traffic is up 6 points.
All three survey answers made 5-year highs. Not since 2007 has sales volume and foot traffic been as strong, and over the next 6 months, builders expect a blow-out finish to the year.
It’s no surprise, either.
Low mortgage rates throughout Worcester County area have lowered monthly housing payments to levels below monthly rent for a comparable home. Plus, programs such as the FHA 3.5% downpayment program continue to help first-time buyers get in homes.
There is a downside to rising homebuilder confidence, however. When builders (more…)
Jul 17, 2012 | Housing Analysis
The number of U.S. homes receiving foreclosure notices topped one million through the first six months of 2012, according to RealtyTrac.
There were 1.046 million foreclosure filings between January – June 2012, says the foreclosure-tracking firm in its Midyear 2012 Foreclosure Market Report. The tally represents a 2 percent increase from the immediate six months prior.
A “foreclosure filing” includes all of the following foreclosure-related actions : (1) Default notices, (2) Scheduled auctions, and (3) Bank repossessions.
One notable fact from within the report is that, even as the number of repossessed homes dropped nationwide, the number of homeowners receiving a Notice of Default or lis pendens rose. These notices are the first step in the foreclosure process which means that we should expect the national foreclosure pipeline to fill later this year.
It’s no coincidence that foreclosure starts are rising now, either.
Earlier this year, a $25 billion mortgage servicing settlement provided banks with the necessary framework and rules by which they can foreclose upon a home. Prior to the this settlement, fearing legal liability, some banks chose to slow — or halt — foreclosure starts entirely. (more…)
