Homeowners sold 5 million homes in 2013, a rebound year for the industry that marked the highest level of sales since the housing boon year of 2006.
The report from the National Association of Realtors showed that there were 5.1 million previously owned homes sold in the year, up 9.21% from 2012 and up nearly 20% from 2011.
December sales were up slightly from November, the first month-over-month rise in the reading since July. Mortgage rates have been rising steadily since hitting record lows in May, raising the cost of purchases for home buyers.
The Realtors attributed the full-year gain to rising prices, lower unemployment, a drop in foreclosures, and pent-up demand, as well as mortgage rates that are still low by historical standards, even with the steady increases most of the year.
The median price of a home sold in the year was $197,100, up 11.4% from the previous year. Rising prices have reduced the number of homeowners who owe more on their mortgage than their home is worth, helping to bring more buyers into the market. Tight supplies of homes for sale are keeping prices high, as the report showed less than a 5-month supply at the end of the year.
Part of the tight supply is due to the sharp drop in distressed home sales. Only 14% of the homes sold in December were in foreclosure or were short sales for less than the amount owed on the existing mortgage. A year earlier, nearly a quarter of sales were distressed home sales.
Original article from CNN Money by Chris Isidore. Click here to view.
Current Placer County Market Trends
The above graph is a large-scale overview of market trends report for all of Placer County over the past five years. As you can see...
Showing posts with label News. Show all posts
Showing posts with label News. Show all posts
Thursday, January 23, 2014
Wednesday, December 4, 2013
Craigslist Undergoes Huge Changes for Home Buyers
Craigslist has undergone major changes recently. We are addressing particular homes for sale the best we can. There are now links that you can copy and paste to your browser. Here you'll be able to review additional information on each property that we post.
In the meantime, feel free to click here to search available properties or call Bob directly at (916) 698-1171.
If you have any ideas or opinions on how we can do this better as Craigslist is making changes by the day, we are interested in your suggestions.
In the meantime, feel free to click here to search available properties or call Bob directly at (916) 698-1171.
If you have any ideas or opinions on how we can do this better as Craigslist is making changes by the day, we are interested in your suggestions.
Wednesday, October 23, 2013
NAR President: Super Size It
By NAR 2013 President Gary Thomas
If you're considering how nice it would be to own a larger home, this may be the time to buy.
For the first time in history, interest rates on jumbo mortgages actually fell below the interest rate of conforming 30-year fixed-rate loans.
As Realtors well know, jumbo loans are those over the local limit that can vary from $417,000 to $729,750, depending on the county.
Traditionally, consumers who needed a home loan bigger than a conforming mortgage would pay a higher rate of interest for the privilege of borrowing more money - often a quarter of a percent or greater, and for a brief period it was nearly two percentage points.
But with mortgage rates much higher than a year ago and declining profits from refinances, banks have become more aggressive in pricing mortgages. As a result, it is now cheaper to borrow in the jumbo market which is currently dominated by private lenders.
With interest rates at historic lows, more buyers are willing to stretch to buy bigger properties and more buyers are able to qualify for a jumbo loan. But even non-jumbo home buyers should look into the competitive rates at banks and credit unions.
There's no telling how long it will continue, but this unusual circumstance may offer an opportunity for Realtors. Think big!
See the original article here.
If you're considering how nice it would be to own a larger home, this may be the time to buy.
For the first time in history, interest rates on jumbo mortgages actually fell below the interest rate of conforming 30-year fixed-rate loans.
As Realtors well know, jumbo loans are those over the local limit that can vary from $417,000 to $729,750, depending on the county.
Traditionally, consumers who needed a home loan bigger than a conforming mortgage would pay a higher rate of interest for the privilege of borrowing more money - often a quarter of a percent or greater, and for a brief period it was nearly two percentage points.
But with mortgage rates much higher than a year ago and declining profits from refinances, banks have become more aggressive in pricing mortgages. As a result, it is now cheaper to borrow in the jumbo market which is currently dominated by private lenders.
With interest rates at historic lows, more buyers are willing to stretch to buy bigger properties and more buyers are able to qualify for a jumbo loan. But even non-jumbo home buyers should look into the competitive rates at banks and credit unions.
There's no telling how long it will continue, but this unusual circumstance may offer an opportunity for Realtors. Think big!
See the original article here.
Friday, October 4, 2013
Government Shutdown Slows Application Process
By Neil J Leitereg
Fixed mortgage rates fell for the third consecutive week. The federal government's shutdown and ongoing recovery concerns, particularly the Fed's decision to continue its bond-buying stimulus program, are attributed to the recent decline of key mortgage loans. The drop in rates comes after averages spiked by more than a percentage point since early May.
The average rate on a 30-year fixed mortgage loan dropped 0.10 percentage point this week, according to the latest survey from mortgage buyer Freddie Mac. After trending at 4.57 percent in early September, the average rate on a 30-year fixed is now at 4.22 percent - a difference of 0.35 percentage point month-over-month and its lowest mark since June 20. Still, the average is considerably higher than it was at this time last year, when the 30-year fixed was tending at 3.36 percent.
The average rate on a 15-year fixed loan also dipped for the third consecutive week. The current average is at 3.29 percent - a difference of 0.08 percentage point week-over-week and a 0.30 percentage point month-over-month. A year ago, the average on a 15-year fixed was 2.69 percent.
There was moderate change with the hybrid adjustable-rate mortgages over the last week. The five-year ARM registered a slight drop, falling to 3.03 percent from 3.07 percent. The average rate on a one-year ARM remained at 3.28 percent week-over-week.
Mortgage rates previously spiked in July due to speculation that the Federal Reserve would curb its bond-purchase program, massive stimulus policies involving $85 million worth of Treasury notes and mortgage-backed securities. However, the recent relief is a result of indications from the Federal Reserve that it would maintain its bond-buying program at its current levels until employment numbers improved, which should push mortgage rates down in the future.
Also influencing rates is the current government stoppage, which has impacted the amount of mortgage applications that are being processed. Rates hovering near historic lows have kept hoe buyers interested, but the shutdown has slowed the ability of lenders looking to confirm borrowers' incomes and identities.
"With the onset of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week," Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement. "Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan. Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer."
The number of mortgage applications submitted showed a decrease this week after a two-week uptick.
Don't expect to see much of a change over the next week. In the latest Mortgage Rate Trend Index by Bankrate.com, analysts were split on whether rates would trend downward or stay the same of the next week.
"There is a lot going on right now that can impact interest rates both higher and lower," opined FBC Mortgage planner Jim Sahnger. "However, economic numbers continue to be lackluster. Uncertainty will keep the favorable rates we have in check."
View the original article here.
Fixed mortgage rates fell for the third consecutive week. The federal government's shutdown and ongoing recovery concerns, particularly the Fed's decision to continue its bond-buying stimulus program, are attributed to the recent decline of key mortgage loans. The drop in rates comes after averages spiked by more than a percentage point since early May.
The average rate on a 30-year fixed mortgage loan dropped 0.10 percentage point this week, according to the latest survey from mortgage buyer Freddie Mac. After trending at 4.57 percent in early September, the average rate on a 30-year fixed is now at 4.22 percent - a difference of 0.35 percentage point month-over-month and its lowest mark since June 20. Still, the average is considerably higher than it was at this time last year, when the 30-year fixed was tending at 3.36 percent.
The average rate on a 15-year fixed loan also dipped for the third consecutive week. The current average is at 3.29 percent - a difference of 0.08 percentage point week-over-week and a 0.30 percentage point month-over-month. A year ago, the average on a 15-year fixed was 2.69 percent.
There was moderate change with the hybrid adjustable-rate mortgages over the last week. The five-year ARM registered a slight drop, falling to 3.03 percent from 3.07 percent. The average rate on a one-year ARM remained at 3.28 percent week-over-week.
Mortgage rates previously spiked in July due to speculation that the Federal Reserve would curb its bond-purchase program, massive stimulus policies involving $85 million worth of Treasury notes and mortgage-backed securities. However, the recent relief is a result of indications from the Federal Reserve that it would maintain its bond-buying program at its current levels until employment numbers improved, which should push mortgage rates down in the future.
Also influencing rates is the current government stoppage, which has impacted the amount of mortgage applications that are being processed. Rates hovering near historic lows have kept hoe buyers interested, but the shutdown has slowed the ability of lenders looking to confirm borrowers' incomes and identities.
"With the onset of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week," Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement. "Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan. Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer."
The number of mortgage applications submitted showed a decrease this week after a two-week uptick.
Don't expect to see much of a change over the next week. In the latest Mortgage Rate Trend Index by Bankrate.com, analysts were split on whether rates would trend downward or stay the same of the next week.
"There is a lot going on right now that can impact interest rates both higher and lower," opined FBC Mortgage planner Jim Sahnger. "However, economic numbers continue to be lackluster. Uncertainty will keep the favorable rates we have in check."
View the original article here.
Thursday, September 26, 2013
Breaking News: Mortgage Rates Plunge
By E. Scott Reckard with the LA Times
The Fed’s decision to continue its economic stimulus program unabated has sent fixed mortgage rates plunging to their lowest level in two months, according to Freddie Mac’s weekly survey, with the 30-year loan averaging 4.32%, down from 4.5% a week earlier.
Lenders were offering 15-year fixed mortgages to solid borrowers at 3.37% early this week, down from 3.54% last week. Initial rates for variable mortgages fell as well, Freddie Mac said Thursday.
The Fed announced last week that the economy was still not strong enough to allow the central bank to cut back on its $85 billion a month in purchases of Treasury securities and bonds backed by mortgages. The effect is to push down interest rates, stimulating the economy by making it cheaper to borrow.
The low rates should “somewhat” offset recent increases in home prices, improving housing affordability, Freddie Mac chief economist Frank Nothaft said.
Freddie Mac, which buys and guarantees home loans, asks lenders each Monday through Wednesday about the terms they are offering to borrowers with good credit, 20% down payments or home equity, and sufficient income to handle payments on home loans.
The borrowers in the latest survey would have paid an average of 0.7% of the loan balance in upfront lender fees and discount points to obtain the fixed mortgages.
To read the original article, click here.
The Fed’s decision to continue its economic stimulus program unabated has sent fixed mortgage rates plunging to their lowest level in two months, according to Freddie Mac’s weekly survey, with the 30-year loan averaging 4.32%, down from 4.5% a week earlier.
Lenders were offering 15-year fixed mortgages to solid borrowers at 3.37% early this week, down from 3.54% last week. Initial rates for variable mortgages fell as well, Freddie Mac said Thursday.
The Fed announced last week that the economy was still not strong enough to allow the central bank to cut back on its $85 billion a month in purchases of Treasury securities and bonds backed by mortgages. The effect is to push down interest rates, stimulating the economy by making it cheaper to borrow.
The low rates should “somewhat” offset recent increases in home prices, improving housing affordability, Freddie Mac chief economist Frank Nothaft said.
Freddie Mac, which buys and guarantees home loans, asks lenders each Monday through Wednesday about the terms they are offering to borrowers with good credit, 20% down payments or home equity, and sufficient income to handle payments on home loans.
The borrowers in the latest survey would have paid an average of 0.7% of the loan balance in upfront lender fees and discount points to obtain the fixed mortgages.
To read the original article, click here.
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