May 30, 2012 | Housing Analysis
Foreclosures filings fell 5 percent between March and April of this year, and by 11 percent as compared to one year ago. The data comes from RealtyTrac. The foreclosure-tracking firm tallied fewer than 189,000 foreclosure-related actions last month — the fewest number since July 2007.
Rapidly-declining foreclosure figures are another signal that the U.S. housing market may already be in recovery.
According to RealtyTrac’s methodology, a “foreclosure filing” is any (more…)
May 25, 2012 | Mortgage Rates
For the fifth consecutive week, conforming 30-year fixed rate mortgage rates have dropped to new all-time lows.
According to this week’s Primary Mortgage Market Survey from Freddie Mac, “prime” mortgage applicants willing to pay 0.8 discount points plus closing costs can secure a mortgage rate of 3.78%, on average.
This is a small improvement in rate over last week when the average 30-year fixed rate mortgage rate was 3.79% with 0.7 discount points.
1 discount point is equal to 1 percent of your loan size. (more…)
May 24, 2012 | Housing Analysis
The April New Home Sales report suggests that the market for newly-built homes is as strong as the market for existing ones.
According to the U.S. Census Bureau, the number of new homes sold rose 3.3 percent in April to a seasonally-adjusted, annualized 343,000 units sold — its second-highest reading since April 2010.
April 2010 marked the last month of that year’s federal home buyer tax credit program.
April’s New Home Sales data also marks the 7th of eight consecutive months during which the number of new homes sold climbed nationwide, a streak unequaled in recent history. During this period, the supply of new homes for sale has dropped 13%.
The complete new home inventory is down to 146,000 homes nationwide.
At the current pace of sales, home buyers in Worcester County area and across the county would exhaust the complete supply of newly-built homes in 5.1 months. (more…)
May 23, 2012 | Housing Analysis
Low mortgage rates are helping to make homes more affordable. It appears home buyers have taken notice.
According to the National Association of REALTORS®, Existing Home Sales rose 3.4% in April from the month prior, registering 4.62 million homes sold on a seasonally-adjusted, annualized basis.
An “existing home” is a home that’s been previously occupied. April’s sales volume represents a 10 percent jump from April of last year.
For buyers and sellers in Worcester County area , the April Existing Home Sales report supports the notion that the housing market may be improving; that the “bottom” occurred sometime in late-2011. Home values have been rising in many U.S. markets and home builders now report the highest levels of foot traffic through models since 2007.
Demand for U.S. housing is growing.
It also helps that home affordability is at an all-time high. Not in recorded history have this many homes for sale been affordable to buyers earning a moderate household income, on a percentage basis. Additionally, there is now a larger stock of homes from which buyers can choose. (more…)
May 22, 2012 | Housing Analysis
Falling mortgage rates and stagnant home prices are making a positive effect on home affordability nationwide. Never before in recorded history have so many homes been affordable to households earning a moderate annual income.
Last week, the National Association of Home Builders reported the Home Opportunity Index at 77.5 — its highest reading of all-time. The index indicates that more than 3 of every 4 homes sold last quarter were affordable to households earning the national median income of $65,000.
Last quarter marks the 12th straight quarter — dating back to 2009 — in which the index surpassed 70. Prior to this run, the index had never crossed 70 even once.
That said, like most real estate statistics, the Home Affordability Index has a national purview. National data is of little value to homeowners in specific cities such as Worcester County area , or in specific neighborhoods.
Last quarter, home affordability varied by region.
In the Midwest, for example, affordability was highest. 7 of the top 10 most affordable (more…)
