Homebuyers: More Positive Housing News
| December 21, 2011 | Posted by Tammy under Mortgage News |
Housing has been a bright spot in economic news as of late and there is more positive news coming from the housing sector. The National Association of Realtors (NAR) is reporting that existing home sales (previously occupied homes as opposed to newly constructed homes) rose in November by 4% to a seasonally adjusted annual rate of 4.42 million.
While economists say a healthy housing market should be seeing around 6 million sales a year, the data is an improvement over the sales of the past few years, putting 2011 home sales on track to be 2010 sales.
U.S. Census Bureau: New Home Construction Increases
The U.S. Census Bureau is reporting November housing starts (beginning of construction of a new home) are also showing improvement with a 2.3% increase to 447,000 starts, a 2.3% increase over the revised October figure of 437,000. This means that there have been 3 consecutive months of improvement in housing starts.
After months of negative data being released, this data is one more signal that housing may very likely be ready for a turn around in 2012.
Home Builders Confidence Increases
The National Association of Home Builders (NAHB) is reporting that builder confidence in the market for newly built, single-family homes has increased by two points from on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for December. today. This increase marks the third consecutive month of builder confidence improvement.
NAHB Chief Economist David Crowe:
“This is the first time that builder confidence has improved for three consecutive months since mid-2009, which signifies a legitimate though slowly emerging upward trend,” said NAHB Chief Economist David Crowe. “While large inventories of foreclosed properties continue to plague the most distressed markets and consumer worries about job security and the challenges of selling an existing home remain significant factors, builders are reporting more inquiries and more interest among potential buyers than they have seen in previous months.”
Pre-Qualification: The First Step in Shopping For a New Home
The first step in shopping for a new home is getting pre-qualified so that you know how much home you can afford. We can help you get pre-qualified and help answer any questions you might have about what type of loan will best fit your needs and whether or not a rate lock makes sense for your situation. If you have questions, we can help with a no cost consultation where we put together a mortgage strategy that makes the most sense for your unique needs.
Mortgage Outlook For the Week of December 19, 2011
| December 20, 2011 | Posted by Tammy under Mortgage News |
After hitting all time historical lows last week, mortgage rates have opened up this week flat, with little to no change from last week. We start the week with news of the death of Kim Jong il, which may play a role in the market in the future, but seems to have little affect on mortgage rates today.
There are several economic reports being released this week with the ability to change mortgages rates, with the GDP and Jobless Claims data being released later in the week.
Trading Volume, Volatility and Your Mortgage Rate in the Week Ahead
The markets will likely be quiet as we move into the final weeks of the Holiday Season, but low trading volume in the Equity and Bond markets can lead to volatility. Since we are at all time historical lows, waiting through the next few weeks may be risky. If you need help deciding if a rate lock is the best move for your needs, we can help.
Economic Calendar for Week of December 19, 2011
- Monday - Housing Market Index
- Tuesday - Housing Starts
- Wednesday - Existing Home Sales
- Thursday - GDP, Jobless Claims, Consumer Sentiment
- Friday - Durable Goods Orders, Personal Income and Outlays, New Home Sales
Weekly Mortgage Wrap Up for December 16, 2011
| December 17, 2011 | Posted by Tammy under Mortgage News |
This week mortgage rates have yet again, made all time historical lows. Factors in this historic mortgage rate movement include the realization that the European debt crisis is going to take a long time to fix and slower than expected improvement in the US economy.
The Federal Open Market Committee (FOMC) Meets
The Federal Open Market Committee (FOMC) met this week and as expected, they left key short term interest rates alone. The Fed Funds Rate (the rate at which banks lend money to each other) is still at 0.000% to 0.250%. The committee has said it believes the economy is growing moderately and that employment will continue to improve, albeit at a slower than desirable pace.
The FOMC also indicated that there are some areas of concern that might affect the US Economy moving forward such as slowing in global growth and concerns in business investment.
Mortgage Rates Moving Forward
Will rates be higher or lower next week? The truth is that nobody knows. We do know that since we are at all time historic lows, there is limited upside in waiting for rates to improve. On the other hand, there is substantial risk that rates will move higher if you wait.
Should you lock now? What is the best program for your needs? We can answer these questions and more with a free consultation where we can put together a strategy to that best fits your unique needs.
What to Look For When Searching For a Quality House to Buy
| December 15, 2011 | Posted by Tammy under Mortgage News |
Houses, like people, can be all shapes and sizes. What you choose to buy might not be what someone else chooses, but the thing nearly all home buyers look for is a well-made house. Home inspectors, builders, and previous owners can all help by informing you of the condition of a potential purchase, but knowing what to look for with your own eyes is important since you are the ultimate decision maker.
Not every house is perfect and you can sometimes use this to your advantage. Cosmetic issues like paint and finishes are often some of the most glaring, but are also typically the easiest to fix. A house that has serious issues, however, is not. Insure that you evaluate the following:
Look Structural and Foundation Issues
When you’re touring a home, look for significant cracks in the walls or the ceiling or possible areas where such cracks may have been repaired. These can be signs of settling, structural, or foundation issues, and may be costly to repair if they’re deemed serious. Also be vigilant to the presence of bugs, especially termites, because they can cause significant structural damage.
Look For Water Damage
Be sure to look for signs of water damage that might imply a leak in the roof, windows, or plumbing. If there are cracks in the foundation of the home, water can come in that way as well, causing wood to rot, mold to grow, and general damage to flooring or drywall. Depending on the extent of the damage, these repairs can be cosmetic or costly. Mold can also have serious health implications, which means it is important to check for, especially if you have children.
Other Issues To Watch Out For
While the basic structure of the house is the most important thing, home buyers should also take note that a builder or previous owner’s cost-cutting measure can result in more money spent in the end. Some of these things are a matter of comfort, and some can be a distinct issue, including:
- The quantity and quality of insulation used.
- Proper installation of rain gutters, shutters, and accent details.
- Any drafts coming from windows and doors.
- How water drains outside.
Just remember, your new home doesn’t have to be perfect, you may save money if there is work that needs to be done, just be sure that you know about existing issues before purchasing. Always do your due diligence!
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