After a brief dip in April, the National Association of Homebuilders reports that the Housing Market Index rose 5 points in May to 29. The increase marks the sharpest climb in homebuilder confidence on a month-to-month basis in 10 years, and raises the index to a 5-year high.
The Housing Market Index is scored from 1-100. Readings above 50 indicate favorable conditions in the single-family new home market overall. Readings below 50 indicate poor conditions.
The HMI has not been above 50 since April 2006.
The Housing Market Index itself is a composite reading as opposed to a straight-up homebuilder survey. The published HMI figure is a compilation of the results of three specific questionnaires sent to NAHB members monthly.
The survey 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?
This month, builders are reporting strong improvement across all three surveyed areas. Current home sales are up 5 points; sales expectations for the next six months are up 3 points; and buyer foot traffic is up 5 points to its highest point since 2007.
With mortgage rates low and home prices suppressed, the market for new homes is gaining momentum, a conclusion supported by the New Home Sales report which shows rising sales volume and a shrinking new home inventory nationwide.
The basics of supply-and-demand portend higher new home prices later this year — a potentially bad development for buyers of new homes in Michigan and nationwide. With demand for new homes rising, builders may be less likely to make sale price concessions or to offer “upgrade packages” to buyers of new homes.
If you’re shopping for new construction in or around Lansing , therefore, consider moving up your time frame. Home affordability is high today. It may not be tomorrow.
For the second straight week, the 30-year fixed rate mortgage fell to a new, all-time low nationwide. According to Freddie Mac’s weekly mortgage rate survey, the average 30-year fixed rate mortgage rate dropped 1 basis point to 3.83% this week for borrowers willing to pay 0.7 discount points plus a full set of closing costs.
The 15-year fixed rate mortgage also set a mortgage rate record, registering 3.05% with an accompanying 0.7 discount plus closing costs.
Discount points are a one-time, up-front closing cost, based on loan size. 0.7 discount points is equal to 0.7% of the borrowed amount. A home buyer in Okemos opening a $200,000 mortgage and paying 0.7 discount points, therefore, would be subject to a one-time $1,400 fee paid at closing.
Borrowers wanting to avoid paying discount points can expect higher mortgage rates than Freddie Mac’s reported national average.
Falling mortgage rates are nothing new throughout Michigan. Since peaking in February 2011, mortgage rates of all types have been in steady decline. The 30-year fixed rate mortgage has shed 122 basis points since that date, falling from 5.05%; the 15-year fixed rate mortgage has shed 124 basis points, falling from 4.29%.
Low mortgage rates give today’s home buyers additional purchasing power, stretching home affordability to new heights.
Low rates also help existing homeowners to lower monthly mortgage payments. For example, as compared to mortgage rates just 15 months ago, homeowners refinancing into today’s 30-year fixed rate mortgage stand to save 13.4 percent on their respective mortgage payments.
A comparison :
February 2011 : $539.88 principal + interest per $100,000 borrowed
May 2012 : $467.67 principal + interest per $100,000 borrowed
A homeowner with a $300,000 mortgage at February 2011 30-year fixed rate mortgage rates would save $2,600 annually with a refinance to this week’s low rates. Even accounting for discount points and closing costs, the “break-even point” on savings like that comes relatively quickly.
Mortgage rates can’t be predicted so there’s no guarantee of low rates forever. If today’s rates meet your budget, consider locking something in. Speak with your loan officer about your options.
Is your mortgage scheduled to adjust this season? You may want to let it. This year’s ARM-holding homeowners in Michigan are finding out that an adjusting mortgage may be the simplest way to get access to today’s low mortgage rates — without paying the closing costs.
Currently, conventional adjustable-rate mortgages are adjusting to near 3.00 percent.
If your home is financed via an adjustable-rate mortgage, you’re likely cognizant of your loan’s life-cycle. At first, your ARM’s initial mortgage rate is agreed upon between you and your lender, a rate that both parties agree will remain in place from anywhere from one to 10 years, with periods of five and seven years being most common.
Then, after the initial “teaser rate” expires, the mortgage’s mortgage rate adjusts according to a pre-determined formula — one that’s also agreed upon at closing. The loan is then subject to an identical mortgage rate adjustment every 12 months thereafter until the loan is paid in full.
The most common conforming mortgage adjustment formula is to add 2.25 percent to the then-current 12-month LIBOR rate.
Today’s 12-month LIBOR is 1.05% so, as a real-life example, an adjustable-rate mortgage that’s leaving its teaser rate period this week would adjust to 3.30%.
If you’re a homeowner who took a 7-year ARM in 2005, or a 5-year ARM in 2007, your newly-adjusted mortgage rate should be roughly 2 percent lower than your initial teaser rate. On a $250,000 mortgage, a 2 percent mortgage rate reduction yields $298 in monthly savings.
Therefore, if you have an adjustable-rate mortgage that’s due to reset, don’t rush to refinance it. For at least one more year, you can benefit from low mortgage rates and low payments.
As for next year’s adjustment, however, that’s anyone’s guess.
Despite several big-name banks pulling the product from their respective home loan offerings, reverse mortgages remain a popular mortgage choice among homeowners aged 62 or over.
A reverse mortgage is exactly what it sounds like — a mortgage in reverse. Rather than borrow a fixed amount of money then pay that loan balance down to zero as with a “forward” mortgage, a reverse mortgage starts at a given loan balance and works its way up as scheduled payments are added to the existing loan balance.
This 4-minute piece from NBC’s The Today Show highlights a few pros and cons of reverse mortgages, and the reasons why you may want to consider one, including :
No mortgage payments are ever due on your home
There is no credit check required for a reverse mortgage
There is no income requirement to qualify for a reverse mortgage
There are some basic qualification standards for the reverse mortgage program including a requirement that all borrowers on title must be 62 years of age or older; and that the subject property be a primary residence. Loan fees can also be higher than with a conventional-type mortgage.
If you meet the qualification standards, though, with a reverse mortgage, you have flexibility in how your home equity is distributed to you. You can receive a lump-sum payment, elect for monthly installments over time, create a line of credit, or a combination of all three.
Like all mortgages, reverse mortgages are complex instruments. That’s one reason why all reverse mortgage borrowers are required to attend counseling — the government wants you to be certain that you understand the nuances of the reverse mortgage program.
Your lender will want you to understand the program, too.
After two weeks of no change, mortgage markets improved last week, pushing mortgage rates lower throughout Michigan.
The majority of the improvements occurred Friday after the April jobs report failed to impress Wall Street, and after it became clear that the Eurozone’s struggles with sovereign debt would continue.
According to Freddie Mac, conforming 30-year fixed rate mortgage rates fell to 3.84% nationwide, on average, for borrowers willing to pay 0.8 discount points at closing plus a full set of closing costs.
1 discount point is equal to 1 percent of your loan size such that one discount point on a $200,000 loan would require $2,000 to be paid at-closing.
Freddie Mac’s reported rates for the benchmark 30-year fixed rate mortgage are the lowest in recorded history.
The 15-year fixed rate mortgage is also at its lowest point in history. According to Freddie Mac’s survey, the 15-year fixed averaged 3.07% with 0.7 discount points last week. One year ago, the rate was 3.89%.
This week, with a data-sparse economic calendar, mortgage markets will likely take cues from events in Europe. Notably, France has elected a new leader, one that prefers growth over austerity; and voters in Greece have “punished” austerity-backing leaders, in the process creating a split parliament.
Each event adds uncertainty to an already unstable economic environment and uncertainty favors U.S. rate shoppers.
Doubt spurs investors to seek “safe” assets and U.S. government-backed bonds — including mortgage backed bonds — meet that criteria. As demand for mortgage bonds rise, mortgage rates tend to fall.
This week, rates are starting the week improved. Whether it’s a knee-jerk reaction to Eurozone news from the weekend, or low rates are here to stay is tough to know. Therefore, if today’s mortgage rates look good to you, consider locking something in. There’s more room for rates to rise than to fall.
Planning to close on your home at the end of May? Plan ahead. Memorial Day is coming and the holiday may delay your closing.
Memorial Day marks the unofficial start of summer and the 3-day Memorial Day weekend is a popular vacation time in real estate-related industries.
Real estate agents tend to take time off because fewer of their clients are actively home shopping on a holiday weekend; mortgage lenders are closed because banks don’t operate on a federal holiday; and, title agents are often away from the office because the former two groups aren’t working.
But what’s supposed to be a 3-day weekend is actually a 4.5-day one. This is because many people leaving for a Memorial Day vacation will not go to work on the Friday before the holiday, and then getting back into the “work groove” on Tuesday can be a half-day affair.
Therefore, if you’re under contract to buy a home in Okemos , or to sell one; or if you have a refinance in progress that’s expected to close at month-end, there are some steps you should take to get pro-active with your closing. If you’re going to lose 4-and-a-half days at the end of the month, you’ll want to try to make those days up while the month is still young.
Here are 3 quick tips to speed up your closing and approval.
First, get your homeowners insurance policy picked out. Do your comparison shopping, select an insurer, and then prepay your first year of insurance, effective your closing date. Pay by check and not credit card, if possible, to avoid harming your credit score.
Provide your proof of payment to your lender immediately.
Next, if you’re using a Power of Attorney, have your documents signed by all interested parties and submit them to your lender for review. Don’t assume that your attorney’s Power of Attorney documents will be acceptable to a bank — banks require specific verbiage. If the documents are rejected, make the requested fixes and resubmit.
Banks do not compromise on Power of Attorney letters.
And, lastly, if you’re accepting gifts or using retirement funds for your downpayment, be sure to have your paperwork reviewed and on file with your lender as soon as possible. Do not wait to withdraw funds until just before closing, either. Have everything in the proper checking account at least one week in advance, and ready for your closing.
There are other steps you can take, too, to make sure your end-of-May closing goes smoothly and they all amount to “preparedness”.
When you’re asked for paperwork, provide it quickly. When you’re asked to sign a document, sign it on the same day. When you’re needed to attend a home inspection or an appraisal, do it during your first available opening.
Just leave as little as possible to the “last minute”, and everything should go well.
Been shopping for a mortgage rate? You may want to lock something down. Tomorrow morning, mortgage rates are expected to change. Unfortunately, we don’t know in which direction they’ll move.
It’s a risky time for Michigan home buyers to be without a locked mortgage rate.
The action begins at 8:30 A.M. ET Friday. This is when the government’s Bureau of Labor Statistics releases its April Non-Farm Payrolls report.
The monthly Non-Farm Payrolls report is more commonly known as “the jobs report” and provides a sector-by-sector breakdown of the U.S. employment situation, including changes in the Unemployment Rate.
In March 2012, the government reported 120,000 net new jobs created — half the number created during the month prior, and the third straight month of declining job creation. The Unemployment Rate fell one-tenth of one percent to 8.2%.
For April, economists expect to see 160,000 net new jobs created, and no change in the national Unemployment Rate.
Based on the accuracy of those predictions, mortgage rates in Okemos are subject to change. If the actual number of jobs created in April exceeds economist expectations, mortgage rates should rise. Conversely, if the actual number of jobs created falls short, mortgage rates should drop.
Job growth’s link to mortgage rates is straight-forward. Jobs are an economic growth engine and mortgage rates are based economic expectation. Therefore, as the number of people entering the U.S. workforce increases, so do Wall Street’s growth projections for the economy. When that happens — especially in a recovering economy such as this one – mortgage rates tend to rise.
So, for today’s rate shoppers, Friday’s job report represents a risk. The economy has created jobs for 18 straight months, a winning streak that has added 2.9 million people to the U.S. workforce. If that winning streak continues and expectations are beat, mortgage rates are likely to rise off their all-time lows, harming home affordability in Michigan State University, among other areas.
According to the Federal Home Finance Agency’s Home Price Index, home prices rose by a seasonally-adjusted 0.3 percent between January and February 2012. The index is up 0.4% over the past year, offering a counter-story to the Case-Shiller Index’s assertion that home values are sinking.
Last week, Standard & Poor’s Case-Shiller Index said home values had dropped more than 3 percent in the prior 12 months.
As a home buyer or seller in Okemos , data showing “rising home values” or “falling home values” may be of interest to you, but we can’t forget that most home valuation trackers — including both the government’s Home Price Index and the private sector Case-Shiller Index — have a severe, built-in flaw.
Both used “aged” data. Today, the calendar reads May. Yet, we’re still discussing February’s housing data.
Data that is two-plus months old is of little value to everyday buyers and sellers wanting to know the “right now” of housing. And, even then, characterizing the data as “two-plus months old” may be a stretch. This is because the home values used in the Home Price index and the Case-Shiller Index are collected from actual transactions, but at the time of closing.
Considering that most purchases require 45-60 days to close, we can know that when we look at the Home Price Index and Case-Shiller Index reports for February, what we’re really seeing is a snapshot of the housing market as it existed two-plus month plus 60 days ago.
Data that’s 5 months old is of little relevance to today’s buyers and sellers. Today’s market is driven by today’s economics.
The Home Price Index is a useful gauge for economists and law-makers. It highlights long-term trends in housing which can be helpful in allocating resources to a particular project or policy. For home buyers and seller throughout Michigan , though, it’s much less useful. Real-time data is what matters to you.
Despite an improving U.S. economy, the nation’s banks remain cautious about what they will lend, and to whom.
Last quarter, by a margin of 3-to-2, more banks tightened residential mortgage lending standards for “prime borrowers” than did loosen them.
A “prime borrower” is defined as one with a well-documented credit history, high credit scores, and a low debt-to-income ratio. The insight comes from the Federal Reserve’s quarterly survey of its member banks.
By contrast, in the quarter prior, not a single surveyed bank reported tighter residential mortgage guidelines. The period from January-March was a step backwards, therefore, for the fledgling U.S. housing market.
Overall, getting approved for a mortgage is tougher than it used to be. Banks enforce higher minimum credit score standards; ask for larger downpayment/equity positions; and require higher monthly income relative to monthly debt obligations.
Another reason why homeownership rates may be down is that prospective home buyers believe the hurdles of today’s mortgage approval process may be impassably high. That’s untrue.
There are many U.S. homeowners and renters — even here in Okemos — that were approved for a home loan last quarter — prime borrowers or otherwise. Some had excellent credit, some had modest credit. Some had high income, some had moderate income. Many, however, took advantage of low-downpayment mortgage options such as the FHA’s 3.5% downpayment program, and the VA’s 100% mortgage program for military veterans.
Despite a general tightening in mortgage standards, loans are still available and banks remain eager to lend.
It is harder to get approved today as compared to 5 years ago, but for those that try and succeed, the reward is access to the lowest mortgage rates in a lifetime. Mortgage rates throughout Michigan continue to push home affordability to all-time highs.
If you’re in the market to buy a new a home or refinance one, your timing is excellent.
Mortgage markets were mostly unchanged last week for the second straight week. Spain made few moves to allay concerns from its investors, the Federal Reserve did little to change its message on the U.S. economy, and newly-released economic data was in-line with expectations.
Conforming mortgage rates in Michigan idled last week, remaining near all-time lows for the 30-year fixed rate mortgage, the 15-year fixed rate mortgage; and the 5-year ARM.
According to Freddie Mac’s weekly mortgage rate survey, last week’s mortgage rates, as averaged from more than 125 banks nationwide, were as follows :
30-year fixed rate mortgage : 3.88% with 0.7 discount points
15-year fixed rate mortgage : 3.12% with 0.6 discount points
5-year adjustable rate mortgage : 2.85% with 0.6 discount points
A discount point is a one-time closing cost and is equal to one percent of your overall loan size. This means that a mortgage applicant with a $100,000 mortgage and an accompanying 0.7 discount points would be responsible for paying an upfront charge of $700 at the time of closing.
Freddie Mac’s mortgage rates assume full closing costs, too.
This week, it’s unclear whether Lansing mortgage rates will rise or fall.
There are few economic data points due for release so mortgage markets are expected to take their cues from Europe where there’s no shortage of story lines.
In Spain, there are protests over new austerity measures. In France, a new President may be elected — one whom opposes austerity. In the Netherlands, a new budget passed that includes austerity measures, but barely.
Each storyline generates uncertainty about the future of Europe and its unified economy. As the uncertainty grows, global investors seek safety in the U.S. mrotgage bond market, a move that helps mortgage rate shoppers. When demand for mortgage bonds is high, mortgage rates tend to improve.
Also affecting mortgage rates this week will be Friday’s Non-Farm Payrolls report.
The economy is expected to have added 165,000 net new jobs in April and the Unemployment Rate is believed to have remained unchanged at 8.2%. If there is a deviation from either of these expectations, mortgage rates will change. If the actual jobs data is stronger than Wall Street expectations, mortgage rates are likely to rise.
If the jobs report is weak, mortgage rates should fall.
After a series of worse-than-expected data last month, the housing market appears to be back on track.
The Pending Home Sales Index posted 101.4 in March, a four percent gain from the month prior and the index’s highest reading since April 2010 — the last month of that year’s federal home buyer tax credit.
A “pending home” is a home under contract to sell, but not yet closed. The Pending Home Sales Index is tracked and published by the National Association of REALTORS® monthly.
The March report marks the index’s first 100-plus reading in nearly two years.
To home buyers and sellers throughout Michigan , this is statistically significant because the Pending Home Sales Index is normalized to 100, a value corresponding to the average home contract activity in 2001, the index’s first year of existence. 2001 was an historically-strong year for the housing market.
The March 2012 Pending Home Sales Index, therefore, puts current market activity on par with market activity from 2001.
You wouldn’t know it from reading this week’s papers, though. There have been stories about how the Case-Shiller Index put home values at new loans; and how the Existing Home Sales figures unexpectedly dropped off; and how the New Home Sales report was a laggard.
But this is why the Pending Home Sales Index can be so important.
What makes the Pending Home Sales Index different from those other data points is that the Pending Home Sales Index is a “forward-looking” housing market indicator.
Unlike most data which aims to tell us how the housing market performed at some point in the past, the Pending Home Sales Index attempts to tell us how the housing market will perform at some point in the future.
80% of homes under contract close within 2 months. Many more close within months 3-4. Therefore, on the strength of the March Pending Home Sales Index, we should expect a strong April and May nationwide
If you’re shopping for homes right now, consider taking advantage while the market remains somewhat soft. Mortgage rates are low and home prices are, too. It can make for a good home-buying conditions.
Sales of new homes ticked lower in March, unexpectedly.
Based on Census Bureau data, the number of new, single-family homes sold in March slipped 7 percent from February — the largest one-month drop in more than a year.
On a seasonally-adjusted, annualized basis, buyers in Michigan and nationwide purchased 328,000 newly-built homes last month. The decrease in sales from February to March can be attributed, in part, though, to a massive upward revision in February’s figures.
Last month, the Census Bureau had reported 313,000 new home sales in February on a seasonally-adjusted, annualized basis. This month, those sales were re-measured to be 353,000 — an increase of 13 percent.
January’s sales were revised higher, too.
The long-term trend in the market for new homes remains “up”. This is no more apparent than when we look at the available new home inventory.
At the close of March, just 144,000 new homes were available for purchase, down 2,000 from the month prior and representing the most sparse new home housing supply since at least 1993, the year that the Census Bureau starting tracking such data.
At the current pace of sales, the new home housing stock would be sold out in 5.3 months. A six-month supply is believed to represent a market in balance.
For new home buyers in Lansing , March’s New Home Sales report does not represent a housing market pull-back. It may represent opportunity, however.
From October 2011 to February 2012, housing data was uniformly strong. Home sales were higher, home supplies were lower, and confidence was rising. In March, it was the reverse. This is normal because growth is rarely linear.
In any market, it’s a few steps forward and a single step back, and housing is likely showing a similar pattern. With mortgage rates still low and builder confidence down, it’s a terrific time to shop new construction.
There are deals to be found for buyers who seek them out.
The Federal Open Market Committee begins a 2-day meeting today in the nation’s capitol. It’s the group’s third of 8 scheduled meetings this year. Mortgage rates are expected to change upon the Fed’s adjournment.
Led by Chairman Ben Bernanke, the FOMC is a 12-person, Federal Reserve sub-committee. The FOMC is the group within the Fed which votes on U.S. monetary policy. “Making monetary policy” can mean a lot of things, and the action for which the FOMC is most well-known is its setting of the Fed Funds Funds.
The Fed Funds Rate is the overnight interest rate at which banks borrow money from each other. It’s one of many interest rates set by the Fed.
However, one series of interest rates not set by the Fed is mortgage rates. Instead, mortgage rates are based on the prices of mortgage-backed bonds and bonds are bought and sold on Wall Street.
There is little historical correlation between the Fed Funds Rate and the common, 30-year fixed rate mortgage rate.
As the chart at top shows, since 1990, the Fed Funds Rate and the 30-year fixed rate mortgage rate have followed different paths. Sometimes, they’ve moved in the same direction. Sometimes, they’ve moved in opposite directions.
They’ve been separated by as much as 5.29 percent at times, and have been as near to each other as 0.52 percent.
Today, that spread is roughly 3.65 percent. It’s expected to change beginning 12:30 PM ET Wednesday. That’s when the FOMC will adjourn from its meeting and release its public statement to the markets.
The FOMC is expected to announce no change in the Fed Funds Rate, holding the benchmark rate within in its current target range of 0.000-0.250%. However, how mortgage rates in and around Lansing respond will depend on the verbiage of the FOMC statement.
In general, if the Fed acknowledges that the U.S. economy as in expansion; growing from job growth and consumer spending, mortgage rates are expected to rise. If the Fed shows concern about domestic and global economic growth, mortgage rates are expected to fall.
Any time that mortgage markets are expected to move, a safe play is to stop shopping your rate and start locking it. Today may be one of those times.
Mortgage markets were mostly unchanged last week, breaking a three-week winning streak. Wall Street grappled with surprising demand on Spain’s debt issuance and a series of weaker-than-expected data points on U.S. housing.
Conforming mortgage rates across Michigan rose slightly according to the weekly Freddie Mac Primary Mortgage Market Survey.
Nationwide, the 30-year fixed rate mortgage rate climbed 2 basis points to 3.90%. This rate is available to homeowners willing to pay 0.8 discount points and a full set of closing costs, where 1 discount point is equal to 1 percent of the borrowed amount.
Prior to last week’s survey, just 0.7 discount points were required.
This week, mortgage rates are expected to be volatile. There is a lot of economic data due for release, the Eurozone’s issues with sovereign debt remain unresolved, and the Federal Open Market Committee gets together for a scheduled, 2-day meeting.
On the data front, the week starts with Tuesday’s Consumer Confidence figures and the government’s New Home Sales report. Both have the power to move mortgage rates. The week then concludes with the Pending Home Sales Index; the GDP release; and a series of Treasury auctions.
With respect to Europe, demand remains strong for debt from Spain, but at much higher rates as compared to several weeks ago. The same is true for Italy. Both nations are feared to be at risk of default on their respective sovereign debt. It’s a similar situation to that which occurred in Greece throughout 2011.
Long-term, lingering concerns for Spain and Italy would likely help keep U.S. mortgage rates suppressed.
And, lastly, the Federal Reserve will make a statement to markets Wednesday afternoon. The Fed is the nation’s central banker and its post-meeting press releases have tremendous influence on bond markets, including those for mortgage-backed bonds.
By extension, therefore, the Federal Reserve’s statement has the power to move mortgage rates in and around Lansing.
If you’re shopping for mortgage rates, it’s as good of a time as any to lock with your lender. Rates have more room to rise than to fall.
In March, for the second straight month, home resales slipped nationwide.
According to the National Association of REALTORS®, March 2012 Existing Home Sales fell to 4.48 million units on a seasonally-adjusted annualized basis — a 3 percent drop from February.
An “existing home” is a home that’s been previously occupied or owned.
The weaker-than-expected Existing Home Sales data is the third such housing report this month to suggest a lull in the spring housing market. Earlier this week, homebuilder confidence slipped for the first time in three months and March Single-Family Housing Starts fell, too.
The news wasn’t entirely bad for home resales, however. Although total home units sold decreased, so did the number of homes available for sale. There were just 2.37 million homes for sale nationwide in March, a 2 percent drop from the month prior.
At the current pace of sales, therefore, the entire nation’s home resale stock would “sell out” in 6.3 months. This is the second-fastest pace since the housing market’s April 2007 peak.
A 6-month supply is widely believed to represent a market in balance between buyers and sellers.
The March Existing Home Sales data shows that — despite record-low mortgage rates nationwide – buyer activity in Lansing is slowing, and seller activity may be slowing, too.
So long as the two forces remain in balance, home prices should do the same. This is the law of Supply and Demand at work.
However, if home sales continue to slide and home inventory builds, buyers may find themselves with an edge in negotiations.
If you’re planning to buy a home in 2012, the long-term housing trend is still toward recovery. This season may be a good time to look at your options. Talk to your real estate agent to see what’s available. Low mortgage rates may persist, but low home prices may not.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
According to foreclosure-tracking firm RealtyTrac, foreclosure filings fell to 199,000 in March 2012, a 17 percent decrease from March 2011. Last month marks the first time since July 2007 that foreclosure filings numbered less than 200,000 on a monthly basis — a span of nearly 5 years.
The generic term “foreclosure filing” is used to group all types of foreclosure activity into a single reading. It includes default notices, scheduled auctions, and bank repossessions.
As in most months, foreclosure density varied by region. 6 states accounted for more than half of the nation’s repossessed homes in March.
Florida : 13.6 percent of all bank repossessions
California : 12.0 percent of all bank repossessions
Georgia : 8.0 percent of all bank repossessions
Michigan : 7.5 percent of all bank repossessions
Arizona : 6.5 percent of all bank repossessions
Illinois : 6.4 percent of all bank repossessions
At the other end of the spectrum, North Dakota and Washington, D.C. were home to the fewest bank repossessions, with 0.03% and 0.02% of the national total, respectively.
Also noteworthy is that the RealtyTrac report revealed that Nevada relinquished its title as Top Foreclosure State after 62 consecutive top-ranking months. In March, 1 in every 301 Nevada homes received some form of a foreclosure filing. The March rate was a nation-topping 1 in 300 in neighboring Arizona.
For Lansing home buyers, today’s foreclosure market represents an interesting opportunity.
Homes purchased while in the various stages of foreclosure can often be bought at lower prices relative to homes not in foreclosure. It’s one of the reasons why foreclosed homes now account for 20 percent of all home resales.
However, don’t confuse less expensive for less costly.
Foreclosed homes are often sold “as-is” and may be in various stages of disrepair. Fixing a foreclosed home to make it habitable could wipe out the money saved on its price tag. Your best real estate “deal”, therefore, may be a non-distressed home in sound, move-in ready condition.
If you’re buying foreclosures — or even considering it — be sure to talk with a real estate agent first. The process of buying a foreclosed property is different from buying a “regular” home. You’ll want somebody experienced on your team.
Tuesday, the government released its March 2012 New Residential Construction report.
The report is made up of three sections, each related to a phase of the “new home” market. The report’s first part is Building Permits; the second is Housing Starts; the third is Housing Completions.
Of the three sections, it’s Housing Starts that gets the most attention from the press — mostly because, of the triad, it’s the simplest for a layperson to understand. However, the manner in which Housing Starts data is reported can be misleading.
Today’s newspapers offer up an excellent example.
According to the Census Bureau, total Housing Starts fell by 6% in March as compared to the month prior. 654,000 units were started on a seasonally-adjusted annualized basis.
For Housing Starts, it’s the lowest reading in 5 months, a statistic suggesting that the housing market may have lost some momentum. Much of the press covered the story from a “housing is slowing” angle.
A few published headlines include :
U.S. Housing Starts Unexpectedly Drop To 5-Month Low (BusinessWeek)
Although these headlines are accurate, they tell just half of the story.
Housing Starts did drop in March, but if we remove a subset of the data — structures with “5 or more units”; a grouping that includes condominiums and apartment buildings — we’re left with Housing Starts for single-family residences only. It’s this data that matters most to buyers in Lansing and nationwide.
Few home buyers buy entire apartment buildings. Most buy single-family homes.
In March, single-family Housing Starts were down 0.2% from the month prior, or just 1,000 units on a seasonally-adjusted, annualized basis.
For the first time in 3 months, homebuilder confidence has slipped.
As measured by the National Association of Homebuilders, the Housing Market Index dropped three notches in April to a reading of 25. The report measures homebuilder confidence in the newly-built, single-family housing market.
When the Housing Market Index reads 50 or better, it reflects favorable market conditions. Readings below 50 reflect unfavorable conditions.
According to the scale, not since April 2006 have housing market conditions have been deemed “favorable” but, recently, homebuilder confidence has picked up. Between September 2011 and March 2012, confidence doubled.
April’s reading remains that second-highest since 2007.
So what does “builder confidence” mean? The formula is a little bit tricky.
The Housing Market Index is actually a composite figure. It’s the combined result of three separate surveys sent to homebuilders monthly. The surveys ask about current single-family sales volume; projected single-family sales volume over the next 6 months; and current home buyer “foot traffic”.
The NAHB compiles the results into the Housing Market Index.
Current Single-Family Sales : 26 (-3 from March 2012)
Projected Single-Family Sales : 32 (-3 from March 2012)
Buyer Foot Traffic : 18 (-4 from March 2012)
At first glance, the data reveals a weakening market for newly-built homes and this may be true; we won’t know for another few months whether April’s confidence setback is an historical blip or the start of a trend. The change in builder psyche, though, is a change that today’s new home buyers in East Lansing can exploit.
Two months ago, builders expected 2012 to be a banner year for home sales. Today, they’re not so sure.
Buyers of new construction, therefore, may find it easier to negotiate with builders for price reductions, “free upgrades”, and/or other concessions. Plus, with mortgage rates still resting near historical lows, financing a newly-built home is cheaper than at any time in recorded history.
The Spring Buying Season is underway. For buyers of new construction, there are deals to be found.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The typical U.S. taxpayer will receive roughly $3,000 in federal income tax refunds this year — an average of $250 per month. So, what would you do with an extra $250 monthly? This segment from NBC’s The Today Show offers some advice.
Whether you’ve already filed your annual taxes for 2011, filed an extension, or will squeak by on the deadline, you could probably be doing more with your taxes. The above video shares some tips. It’s four minutes of solid insight on tax refunds, tax withholdings, and reducing your household’s overall “bad debt”. There’s something for everyone.
Among the points covered in the tax refund piece :
Consider changing your personal payroll exemptions so your 2012 refund is $0
Remember that refunds are not “free money” — it’s your money. Spend wisely.
Use your tax refund to fund retirement accounts
Advice is also shared about how to use your tax refund to fund a reserve account, or emergency fund. As a homeowner or home buyer in Lansing , applying tax refunds to a savings accounts in this manner can go a long way. When you’re a homeowner, maintenance costs can be sudden and unexpected. A furnace can explode, for example; or, a roof could spring a leak. Having money set aside for crisis is essential.
Having a savings account will also improve your household’s long-term financial stability.
As a reminder, in most years, federal income tax is due April 15. However, with Tax Day falling on a Sunday and with the federal government closed for a holiday the following Monday, U.S. taxpayers in Michigan and nationwide get a reprieve until Tuesday, April 17, 2012.
Looking for a great place to raise a family? Forbes Magazine has a list that may help you.
Titled “The Best Cities For Raising A Family“, Forbes has compiled and analyzed data from America’s 100 largest metropolitan areas, accounting for seven lifestyle factors including cost of living, commuting ease, school quality, crime density, and home affordability.
Given these selection criteria, it’s no surprise that Grand Rapids, Michigan took top honors. The area’s low median income is offset by an extremely low cost of living and a school system that’s among the best in the nation. Nearly 90% of the homes in Grand Rapids are affordable families earning the median income — the seventh-highest affordability ranking in the country — and commutes are quick.
Since the housing peak, home prices are down just 12% in Grand Rapids — a figure below the national average.
Now, before you make a home-buying decision based on the Forbes report, remember that real estate is a local market and even city-wide statistics can be too broad to be helpful to everyday home buyers in East Lansing. Even within Grand Rapids, there are some neighborhoods that outperform in terms of home valuations and school quality, for example; and some areas from which a daily work commute may be more cumbersome.
For accurate, real-time housing data for any of the above markets or for a smaller neighborhood like Michigan State University , be sure to ask a real estate professional.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Last Friday, in its Non-Farm Payrolls report for the month of March, the Bureau of Labor Statistics announced 120,000 net new jobs created, plus combined revisions in the January and February reports of +4,000 jobs.
The March report marks the 18th straight month of job growth nationwide — the first time that’s happened in 5 years.
The Unemployment Rate dipped in March, too, falling one-tenth of one percent to 8.2%. This is its lowest national Unemployment Rate since February 2009.
Clearly, the jobs market is moving in the right direction. Yet, after the Non-Farm Payrolls report was released Friday morning, stock markets dropped and bond markets gained — the opposite of what a casual market observer would expect.
It happened because, although job growth was strong, Wall Street decided it just wasn’t strong enough. The market expected 200,000 jobs created in March at least and the actual reported figure fell short.
Lucky for you, Wall Street’s pain is Main Street’s gain. After the jobs report was released, mortgage rates immediately dropped to a 3-week low, making homes more affordable in Michigan and throughout all 50 states.
The market’s reaction is an excellent example of how important jobs data can be to home affordability — especially in a recovering economy.
The economy shed 7 million jobs between 2008-2009 and has since added more than half of them back. Wall Street pays close attention to job creation because more working Americans means more consumer spending, and more consumer spending means more economic growth.
Rate shoppers caught a bit of a break on the March payroll data. By all accounts, the labor market recovery in underway and, as it improves, higher mortgage rates are likely nationwide. For now, though, there’s a window for low mortgage rates that buyers and would-be refinancing households can try to exploit.
If you’re actively shopping for a home or a mortgage, today’s mortgage rates may be at “last chance”-like levels. Once rates rise, they’re expected to rise for good.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
In a week of up-and-down trading, mortgage markets improved for the second consecutive week last week. Weaker-than-expected jobs data plus evidence of a slumping Eurozone took mortgage bonds lower, capped by a furious Friday morning rally that dropped mortgage rates to near-record levels.
Once again, volatility ruled the bond pits.
Tuesday afternoon, after the release of the Fed March Minutes, mortgage rates spiked. Some products climbed as much as 0.250 percent. The surge stemmed from the Fed Minutes showing Federal Reserve members hesitant to begin new rounds of market stimulus without a demonstrated, national economic slowdown.
Wall Street hadn’t expected the Fed’s verbiage to be so well-defined. With little evidence that such a slowdown was underway — the economy has shown two straight seasons of consistent, steady growth, after all — equity markets rallied and bond markets sunk, causing mortgage rates to rise.
By Wednesday, however, rates had started to fall.
Civil unrest in Spain plus concern that the nation will fail to meet its debt obligations drew global investors away from equities and into the relative safety of U.S. government-backed bonds — including mortgage-backed bonds. This is a common investment pattern during times of economic uncertainty and one of the major reasons why mortgage rates have been so low, for so long.
If the scenario in Spain sounds similar to what transpired in Greece between mid-2010 and late-2011, that’s because it is. Mortgage rates in Michigan may benefit in the medium-term.
Also helping rates last week was the March jobs report.
The U.S. government reported 120,000 net new jobs created in March, well short of the 200,000 figure that analysts expected. Market sold off sharply on the news, giving rate shoppers another chance to capture low rates.
This week, with the economic calendar light, look for Europe to dictate market action. Mortgage rates may move lower but there’s more room for rates to rise than to fall. Rates remain near all-time lows.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
If you’re out shopping for a home this week, or trying to lock a mortgage rate, with Friday comes home affordability risk. Consider locking your mortgage rate today.
The March Non-Farm Payrolls report is due for release Friday morning and mortgage rates are expected to move. Unfortunately for the home buyers and rate shoppers of Michigan , we can’t know in which direction that will be.
The prudent play may be to lock your mortgage rate today.
On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly called “the jobs report”, the release is a bona fide market-mover, month after month.
Depending on how the March jobs data reads, FHA and conforming mortgage rates could rise — or fall — by a measurable amount post-release. This is because today’s mortgage market is closely tied to the economy, and the economy is closely tied to job growth.
The connection between jobs and mortgage rates is basic.
More workers leads to higher levels of consumer spending nationwide and consumer spending accounts for the majority of the U.S. economy.
In addition, when more workers are paid, more taxes are paid, too. Local, state and federal governments collect more monies when payrolls are rising which, in turn, benefits projects that purchase new goods and services, and, in many cases, results in the hiring of additional personnel.
Job creation can be a powerful, self-reinforcing cycle.
Between 2008 and 2009, the economy shed 7 million jobs. It has since recovered half of them. Friday, analysts expect to count another 200,000 jobs created. If the actual number of jobs created exceeds estimates, look for stock markets to gain and bond markets to lose. This leads to higher mortgage rates — especially with the Federal Reserve zeroed in on the labor market.
If the actual number of jobs created in March falls short of expectations, however, mortgage rates may fall.
Unfortunately, by the time the report is released, it will be too late to act on it. The release is made at 8:30 AM ET and bond markets are closed for Good Friday.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The Federal Reserve has released the minutes from its last FOMC meeting, a 1-day affair held March 13, 2012. Mortgage rates in Michigan are rising on the news.
For the un-indoctrinated, 3 weeks after it meets, the Federal Open Market Committee, the sub-group within the Federal Reserve that votes on U.S. monetary policy, publishes its meeting minutes.
Similar to the minutes from a corporate event, or condominium association meeting, the Fed Minutes recounts the conversations and debates that transpired throughout the meeting.
The Fed Minutes is a lengthy publication, often filling 10 pages or more. By contrast, the more well-known publication from the FOMC — its post-meeting press release — tends to span 6 paragraphs or less.
The extra detail contained within the Fed Minutes is Wall Street fodder, especially given the current economic uncertainty. Investors look to the Federal Reserve for clues about what’s next for the U.S. economy.
Lately, the minutes has made an out-sized impact on mortgage rates. The Fed’s words continue to swing the mortgage-backed bond market.
Today is no different.
March’s Fed Minutes is a dense one and markets are reacting. The text shows a central bank softly divided on future U.S. economic policy, and in debate about whether existing market stimulus should be removed.
The Fed has said that it’s expecting high levels of unemployment and low levels of inflation in the coming months, an outlook that leaves little reason to introduce a third round of stimulus. This is the primary reason why mortgage rates in Lansing have been climbing since the Fed Minutes’ release.
Since mid-March, mortgage rates dropped on speculation that the Federal Reserve would introduce a mortgage bond purchase program this quarter. Today, those expectations have reversed.
According to the minutes, the Federal Reserve believes that additional market stimulus would only be necessary “if the economy lost momentum”, or if inflation remained too far below 2 percent per year. Currently, Core PCE — the Fed’s preferred gauge of inflation — is running slightly below 2 percent.
The Federal Reserve’s next scheduled meeting is April 24-25, 2012 — its third of 8 scheduled meetings this year.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Planning to use an FHA-backed mortgage for your next home loan? You might want to get your application in gear today.
Beginning next week, the Federal Housing Administration (FHA) is changing the way it charges mortgage insurance to U.S. homeowners. For the fourth time since 2010, FHA mortgage insurance premiums are rising for all FHA-backed homeowners.
For FHA Case Numbers assigned on, or after, Monday, April 9, 2012, there are two planned changes.
First, FHA Upfront Mortgage Insurance Premiums (UFMIP) will increase by 75 basis points to 1.75%, or $1,750 per $100,000 borrowed. Upfront Mortgage Insurance Premium is paid at closing, and typically added to an FHA borrower’s loan size.
The current UFMIP rate is 1.000 percent.
Second, annual FHA mortgage insurance premiums are rising. All new FHA-backed loans will be subject to a 10 basis point increase in annual mortgage insurance premiums, costing homeowners an extra $100 per $100,000 borrowed per year.
The new FHA annual mortgage insurance premium schedule follows :
15-year loan term, loan-to-value > 90% : 0.60% MIP per year
15-year loan term, loan-to-value <= 90% : 0.35% MIP per year
15-year loan term, loan-to-value <= 78% : 0.00% MIP per year
30-year loan term, loan-to-value > 95% : 1.25% MIP per year
30-year loan term, loan-to-value <= 95% : 1.20% MIP per year
In addition, for loans above $625,500, beginning with FHA Case Numbers assigned on, or after, June 11, 2012, there will be an additional 25 basis point increase in annual MIP.
To calculate your monthly MIP obligation as a FHA homeowners, multiply your starting loan size by your insurance rate from the list above, then divide by 12.
Note that the FHA mortgage insurance changes apply to new FHA Case Numbers only. If you have an FHA mortgage approval in-process, or an existing FHA home loan, you are not subject to the new MIP schedule. To avoid paying the FHA’s new MIP schedule, therefore, begin your FHA mortgage application today.
Once your FHA Case Number is assigned, you’re locked in to today’s lower premiums.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets improved last week on renewed concerns of a European debt default, and Federal Reserve rhetoric.
Conforming mortgage rates in Michigan dropped on the news, one week after posting a 5-month high.
A major strike in Spain and growing unrest in Italy, both in opposition to recent austerity measures, have re-ignited fears that the Eurozone may lapse into recession.
These are similar beginnings as with last year’s events in Greece. The difference is that Spain and Italy represent a larger share of the Eurozone’s overall economy, and a debt default could trigger faster contagion.
Mortgage markets gained on the news in a bid of safe haven buying.
Bonds also gained as Federal Reserve Chairman Ben Bernanke clarified his position on the economy with respect to Fed-led stimulus. Summarized, he said that the Federal Reserve is inclined to keep its accommodative policies in place until the labor market is more fully recovered.
In addition, Chairman Bernanke alluded to making direct mortgage market intervention if U.S. economic growth were to stall in the near future.
The news helped push mortgage rates back below 4.000 percent last week, according to Freddie Mac’s weekly Primary Mortgage Market Survey. The average 30-year fixed rate mortgage rate fell to 3.99% for applicants willing to pay an accompanying 0.7 discount plus closing costs.
1 discount point is equal to one percent of your loan size.
This week’s mortgage market activity will be holiday-shortened so expect volatility — especially surrounding Friday’s March Non-Farm Payrolls report.
More commonly called “the jobs report”, Non-Farm Payrolls details national employment rates and gains or losses in the workforce size. Lately, what’s been good for jobs has been good for the economy so if the actual number of jobs created exceeds the 200,000 projected by economists, or if the Unemployment Rate drops off its current 8.3% reading, look for mortgage rates to rise.
In general, economic expansion is bad for mortgage rates throughout Okemos and the nation.
Other market-moving news this week includes Tuesday’s FOMC Minutes release and Thursday Jobless Claims data.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
After a brief run-up two weeks ago, mortgage rates are back below 4 percent. It’s good news for home buyers and mortgage rate shoppers of Okemos because with lower mortgage rates come lower mortgage payments.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the national, average 30-year fixed rate mortgage rate fell to 3.99 percent this week from last week’s 4.08 percent.
Last week had marked the first time since December 2011 that the benchmark rate crossed north of 4 percent — a span of 16 weeks.
And, it wasn’t just rates that got cheaper this week — closing costs dropped, too.
Freddie Mac’s survey showed that the average number of discount points to accompany a 30-year fixed rate mortgage fell one-tenth of a percent this week to 0.7, where one discount point is equal to one percent of your loan size.
As a real-life example, a $200,000 Michigan State University mortgage with an accompanying 0.7 discount points would be subject to an additional $1,400 one-time closing cost. Last week, that cost was $1,600.
Note, though, that these are average mortgage rates for the nation. On a local level, rates may be higher or lower, and so may the accompanying number of discount points.
North Central Region : 3.99% with 0.6 discount points
Southwest Region : 4.02% with 0.8 discount points
These rates are each well below the average rates of a year ago when the average 30-year fixed rate mortgage was 4.86%.
Low mortgage rates can’t last forever so if you’ve been wondering whether now is a good time to buy a home or refinance one; or whether rising rates will harm your monthly budget, the answer may be yes. A weak economy held mortgage rates low last year. An improving economy should push rates higher this year.
Talk to your loan officer and review your home loan options. Looking ahead to spring and summer, mortgage rates appear poised to rise.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Recent data suggests that the U.S. housing market is in recovery. However, the data also shows this to be an uneven recovery.
According to the monthly S&P/Case-Shiller Index, for example, home values rose in three of 20 tracked markets between December 2011 and January 2012. 17 tracked markets showed home prices still in decline.
It’s easy to point to the Case-Shiller Index as evidence that the housing market in Michigan has yet to bottom, but we have to consider the Case-Shiller Index’s shortcomings — specifically in a recovering economy.
For example, the Case-Shiller Index is based on changes in home prices of a single home, through successive sales. This means that to calculate its home price index, the Case-Shiller searches for sales of the same home over a period of time and calculates the difference in contract price.
This methodology can distort the home price tracker downward during times of weak economy because there is no distinction made for homes sold in foreclosure or as a short sale.
35% of all homes sold in January were “distressed”, says the National Association of REALTORS®.
Another distortion in the Case-Shiller Index is that the model neglects all home types that are not of type “single-family residence”. This means that multi-unit homes and condominiums are excluded from the Case-Shiller Index model.
In some markets, such as Chicago and New York City, condominiums account for a large percentage of overall sales.
Lastly, the Case-Shiller Index is published with a “lag”, which renders it useless to buyers and sellers of Okemos in search of real-time, relevant data. The most recent Case-Shiller Index is published with a 60-day delay, and accounts for home purchase contracts written between October and December 2011.
Since October, the U.S. economy has added more than 1 million jobs and the economy has moved into “moderate expansion”, according to the Federal Reserve. Data that’s two seasons old does little to help us today.
Making sound real estate decisions is about having timely, relevant data at-hand when it’s needed. The Case-Shiller Index fails in that respect. It’s good for highlighting the U.S. housing market on the whole, as it existed in the past. For real-time market data, though, you’ll want to talk with an active real estate agent.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Sales of “new homes” fell to the lowest levels in four months last month.
According to the Census Bureau’s monthly New Home Sales report, 313,000 new homes were sold in February 2012 on a seasonally-adjusted, annualized basis, representing a 1.6% drop from the month prior.
A “new home” is a home for which there has been no prior owner nor tenant.
At first glance, the data looks negative for the housing market; a suggestion that the well-publicized housing market recovery may be slowed. However, within February’s New Home Sales report are three important counter-statistics worth mentioning.
First, although annualized home sales volume slipped 5,000 units in February, this occurred as the number of homes for sale nationwide remained constant at 150,000. This is the fewest number of new homes for sale since at least 1993 — the first year that the Census Bureau tracked such data.
A small home supply promotes rising home values when buyer demand is rising and, in February, buyer demand held firm.
A second reason to remain optimistic on housing is that New Home Supply was 5.8 months in February. This means that, at the current pace of sales, the entire new home inventory will be “sold out” in 5.8 months.
Housing experts say that when home supplies fall below 6.0 months, it’s bullish for housing.
And, as a third reason to look past the New Home Sales headline figure, last month’s reporting Margin of Error was huge.
According to the government, the February New Home Sales data was published with a ±23.9% margin of error. This means that the actual New Home Sales sales volume may have dropped as much as -25.5%, or may have climbed by as much as +22.3%.
Because the range of possible values includes both positive and negative numbers, the Census Bureau assigned its February data the “zero confidence” label.
It will be several months before February’s New Home Sales data is revised. Until then, buyers in East Lansing would do well to take cues from the real estate market-at-large which shows steady, gradual improvement.
If your 2012 housing plans call for buying new construction, consider using February’s results as a window to “make a deal”. As the year progresses, great values in housing may be gone for good.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets carved out a wide range last week, eventually closing slightly worse. Mortgage-backed bonds sold off early in the week on rising investor sentiment. Then, they reversed higher on prepared remarks from Federal Reserve Chairman Ben Bernanke, which tempered Wall Street optimism.
When bonds prices rise, mortgage rates fall.
Conforming and FHA mortgage rates in Michigan edged higher on the week, and remain at a 5-month high.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage is now 4.08% and the 15-year fixed rate mortgage is now 3.30%. Both loan types require an accompanying 0.8 discount points, plus a full set of closing costs.
1 discount point is equal to one percent of your loan size.
Last week’s conforming mortgage rates represent a sharp increase from the week prior when rates for the 30-year fixed rate mortgage and 15-year fixed rate mortgage averaged 3.92% and 3.16%, respectively.
If you’ve been shopping for a 30-year fixed rate mortgage, the interest rate increase added $9.22 to your monthly payment per $100,000 borrowed.
We can’t know in what direction mortgage rates will move this week, but we can be certain they’ll be volatile. Wall Street is suddenly on edge, unsure of whether the economy is improving as recent data suggests, or if the Federal Reserve is correct in that threats to growth persist.
The week’s data schedule is as follows :
Monday : Pending Home Sales Index
Tuesday : Consumer Confidence; Case-Shiller Home Price Index
Wednesday : Durable Goods
Thursday : Initial Jobless Claims; GDP
Friday : Personal Income and Outlays
In addition, there are 6 Federal Reserve speakers scheduled for the week, including Chairman Bernanke. Expect mortgage rates to change frequently throughout the week as Wall Street wrestles with data and rhetoric.
Although mortgage rates spiked last week, historically, they remain low. If you’re nervous that rates may rise more, consider locking something in.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The new construction housing market appears primed for growth this season.
According to the Census Bureau, the number of single-family building permits issued in February rose to 472,000 on a seasonally-adjusted, annual basis, marking the highest building permit tally since April 2010 — the last month of that year’s federal home buyer tax credit program.
Building permits are a pre-cursor to new home construction.
In 2011, from the date of permit-issuance to the date of “ground-breaking”, an average of 27 calendar days passed. February’s data, therefore, is a signal that the market for newly-built homes should be strong this year, an idea supported by the most recent homebuilder confidence survey.
As buyer foot traffic soars, homebuilders expect to make more sales in the next 6 months than at any time since the housing market’s collapse. Builder confidence is at a 5-year high.
Last month, however, single-family housing starts slipped.
As compared to January, February’s single-family housing starts fell by 50,000 units on a seasonally-adjusted, annualized basis. The 10% drop represents the largest one-month drop since February 2011. It’s a statistic that may suggest that this year’s results are simply seasonal.
For buyers of new construction, the news is mixed.
Rising permits and builder confidence may mean that Lansing homebuilders will be less willing to negotiate with today’s buyer on upgrades and/or home prices. However, as more new home supply is set to come online, excess housing stock could help keep home prices low.
If you’re planning to buy new construction in Michigan this year, be sure to ask your real estate agent about the local home supply, and how the market is currently trending. With mortgage rates low and the summer buying season approaching, you may find some of your best deals of the year available in just the next few weeks.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Despite sparse home inventory, the National Association of REALTORS® reports that 4.59 million existing homes were sold in February on a seasonally-adjusted, annualized basis. An “existing home” is a home that cannot be classified as new construction.
Last month’s sales data represents a 9 percent improvement from the year prior.
There are now just 2.43 million homes for sale nationwide — a 19% reduction versus a year ago. The complete home inventory would “sell out” in 6.4 months at the current sales pace.
Some analysts believe that a 6-month home supply indicates a housing market in balance.
32 percent of home sales were made to first-time buyers
33 percent of home sales were made with cash (i.e. no mortgage)
34 percent of home sales were of foreclosed homes or homes in short sale
In addition, nearly one-third of all home sales “failed” last month, the result of homes not appraising at the purchase price; or, the buyer’s inability to secure mortgage financing; or, insurmountable home inspection issues.
Even accounting for last month’s high contract failure rate,though, the Existing Home Sales report still posted its second-highest reading since May 2010. For today’s Okemos home buyer, the data may be a “buy signal”.
As compared to last fall, home supplies are down and home sales are up. Basic economics tell us that home prices should start to rise shortly — if they haven’t already. After all, the Existing Home Sales data is 30 days old, reporting on February. It’s nearly April today.
The good news is that homes remain affordable. With conforming and FHA mortgage rates in the low-4 percent range, home affordability is at its highest in history. Home prices may rise this spring, but at least your mortgage payment should remain low.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Home builder confidence in the newly-built, single-family housing market remains high.
In March, for the second consecutive month, the National Association of Homebuilders reports the Housing Market Index at 28 — a doubling of the reading from just 6 months ago and, along with last month, the highest HMI value since June 2007.
When home builder confidence reads 50 or better, it reflects favorable builder conditions in the single-family, new home market. Readings below 50 suggest unfavorable builder conditions.
The HMI itself is a composite reading. It’s the result of three separate surveys sent to home builders by the trade association. The NAHB asks builders to report on their current single-family home sales volume; their projected single-family home sales volume for the next 6 months; and, their current buyer “foot traffic”.
Approximately 400 surveys are returned each month. The results are compiled into the NAHB Housing Market Index.
In March, home builders provided mixed replies to the survey questions :
Current Single-Family Sales : 29 (-1 from February)
Projected Single-Family Sales : 36 (+2 from February)
Buyer Foot Traffic : 22 (Unchanged from February)
It’s noteworthy, despite slowing sales in March, that home builders expect a surge in new home sales over the next 6 months. The reasons for this are several and should be of interest to today’s home buyers.
First, the jobs market is heating up. The U.S. economy has added more than 1 net new million jobs over the last 6 months and that is increasing the pool of potential home buyers in Michigan and nationwide.
Second, the housing market, in general, is improving. Home sales are brisk in many U.S. markets and home supplies are dropping. This creates pressure on home prices to rise.
And, third, low mortgage rates have helped pushed home affordability to all-time highs. More home buyers earning the national median income can afford a median-priced home than at any time in history.
It’s all culminated in a monthly Buyer Foot Traffic reading which, at 22, is nearly triple the foot traffic reading from just three years ago. Home buyers — in East Lansing and everywhere else — are out in full-force, capitalizing on today’s buyer-friendly market.
If you’re looking to buy new construction in the second half of 2012, consider moving up your time frame. Market conditions are constantly changing, and may move out of your favor. As builder optimism increases, the price you pay for your new home may increase, too.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The new, revamped HARP program is now available in Michigan and nationwide. It was officially released Saturday, March 17, 2012 by Fannie Mae and Freddie Mac.
HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the conforming mortgage loan product meant for “underwater homeowners”. Under the HARP program, homeowners in Lansing can get access to today’s low mortgage rates despite having little or no equity whatsoever.
HARP is expected to reach up to 6 million U.S. homeowners who would otherwise be unable to refinance.
HARP is not a new program. It was originally launched in 2009. However, the program’s first iteration reached fewer than 1 million U.S. households because loan risks were high for banks, and loan costs were high for consumers.
With HARP’s re-release — dubbed HARP 2.0 — the government removed many of HARP’s hurdles.
In order to qualify for HARP, homeowners must first meet 3 qualifying criteria.
First, their current mortgage must be backed either Fannie Mae or Freddie Mac. Loans backed by the FHA or VA are ineligible, as are loans backed by private entities. This means jumbo loans and most loans from community banks cannot be refinanced via HARP.
To check if your loan is Fannie Mae-backed, click here.
To check if your loan is Freddie Mac-backed, click here.
The second qualification standard for HARP is that all loans to be refinanced must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009. Mortgages securitized on, or after, June 1, 2009 are HARP-ineligible.
There are no exceptions to this rule.
And, lastly, the third HARP qualification standard is that the existing mortgage must be accompanied by a strong repayment history. Homeowners must have made the last 6 mortgage payments on-time, and may not have had more than one 30-day late within the last 12 months.
If the above three qualifiers are met, HARP applicants in Michigan State University will find mortgage guidelines lenient overall :
Refinancing into a fixed rate mortgage allows for unlimited loan-to-value
The standard 7-year “waiting period” after a foreclosure is waived in full
Except in rare cases, home appraisals aren’t required for HARP
Furthermore, HARP mortgage rates are on par with non-HARP rates. This means that HARP applicants get access to the same mortgage rates and loan fees as non-HARP applicants. There’s no “penalty” for using HARP.
To apply for HARP, check with your loan officer today.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets worsened last week as the Federal Reserve’s Federal Open Market Committee suggested economic recovery may be closer than it originally expected, and that inflation may be a near-term economic concern.
Although the FOMC voted to leave the Fed Funds Rate unchanged in its current range near 0.000 percent, its published comments sparked a broad-based mortgage bond selloff.
Conforming mortgage rates throughout Michigan rose sharply post-FOMC, climbing by as much as 0.375%.
If you’ve been shopping for a mortgage rate, the run-up was both untimely and unwelcome.
According to Freddie Mac’s weekly mortgage rate survey, for most of the year, conforming 30-year fixed rate mortgage rates had remained within a tight range near 3.90 percent for mortgage applicants willing to pay an accompanying 0.8 discount points.
This week, though, Freddie Mac is expected to report average 30-year fixed rate mortgage rates well north of four percent. It would mark the highest level for the benchmark mortgage rate since mid-December of last year.
There will be a lot more for rate shoppers to watch this week, too. There is a slew of housing data set for release and the heavily-anticipated HARP 2.0 Refinance program “goes live” nationwide.
HARP is a government-led refinance program meant to help underwater homeowners refinance their Fannie Mae- or Freddie Mac-backed mortgages into new loans at today’s low rates.
The program was first launched in 2009 and helped roughly one million U.S. homeowners. HARP’s newest iteration, though, provides for a more lenient underwriting process that is expected to open the program to an additional 6 million homeowners or more.
Mortgage rates may rise this week as a result of HARP-based loan volume. It may also rise on strength in housing — there are four data points due for release :
Monday : Housing Market Index
Tuesday : Housing Starts
Wednesday : Existing Home Sales
Friday : New Home Sales
As in most weeks, it’s less risky to lock a mortgage rate than to float one. Mortgage rates have much room to climb but very little room to fall. If you’re not yet locked, talk to your loan officer and make a plan.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
After a series of months during which foreclosure volume was low, total filings have started to rise again, says RealtyTrac.
In February, 21 states posted a year-over-year increase in monthly foreclosure filings, according to the national foreclosure-tracking firm. This is nearly twice as many states as compared to December 2011, marking the highest monthly reading since November 2010.
A “foreclosure filing” is defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession.
Nationally, the number of foreclosure filings fell 2 percent from January. However, it’s a trend that may reverse. Foreclosure volume is expected to rise over the next few months.
This is because the $25 billion mortgage servicer settlement provides a framework for servicers to execute necessary foreclosures, from notice-to-auction. Some analysts believe that foreclosure filings were artificially depressed in 2011 because of the absence of such guidance.
Like all things in real estate, though, foreclosures remain local.
For example, nationally, there was one foreclosure for every 637 housing units. On a state-by-state basis, however, the results looked different.
Nevada : 1 foreclosure for every 278 housing units
California : 1 foreclosure for every 283 housing units
Arizona : 1 foreclosure for every 312 housing units
Georgia : 1 foreclosure for every 331 housing units
Florida : 1 foreclosure for every 341 housing units
Even on a city-by-city level, foreclosure concentration varied. Figures from several select cities include :
Atlanta : 1 foreclosure for every 244 housing units
Chicago : 1 foreclosure for every 302 housing units
New York : 1 foreclosure for every 3,439 housing units
Seattle : 1 foreclosure for every 1,229 housing units
Washington : 1 foreclosure for every 1,198 housing units
One reason why foreclosure concentration is worth tracking is because homes in various stage of foreclosure are often sold at deep discounts as compared to similar, non-distressed homes. It’s no wonder foreclosed homes are in high demand among today’s Lansing home buyers.
However, if you plan to buy a foreclosure in Michigan , be sure to work with an experienced real estate agent. Foreclosed homes are often sold “as-is”, and may be defective at best and uninhabitable at worst. It makes good sense to have an advocate on your side to help with contracts and inspections.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The Federal Open Market Committee meets today, its second of 8 scheduled meetings this year. As a home buyer or would-be refinancing household in Michigan , get ready for changing mortgage rates.
The Federal Open Market Committee is the 12-person sub-committee within the Federal Reserve that votes on the nation’s monetary policy. Led by Federal Reserve Chairman Ben Bernanke, the FOMC’s most prominent role is as steward for the Fed Funds Rate.
The Fed has said repeatedly that it intends to keep the Fed Funds Rate near 0.000 for an “extended period of time”, through 2014 at least.
Unfortunately, this doesn’t mean that Okemos mortgage rates will remain low as well. Mortgage rates are not set by the Federal Open Market Committee. Mortgage rates are set by Wall Street.
As proof that the Fed Funds Rate is distinct from mortgage rates, consider that, since 2000, the difference between the Fed Funds Rate and the average, 30-year fixed rate mortgage rate has been as wide as 5.25% and as narrow at 0.50%.
If the Fed Funds Rate was tied to mortgage rates, the chart at right would be linear.
That said, the FOMC can influence mortgage rates.
After its meetings, the FOMC issues a standard press release to the public which reflects the group’s overall economic outlook. When the FOMC statement is generally “positive”, mortgage rates tend to rise in response. This is because investors often assume more risk in an improving economy and this can harm bond market prices — including those for mortgage-backed bonds.
Conversely, when the Fed is generally negative in its statement, mortgage rates can improve.
Since the FOMC’s last meeting, there has been little about which to be negative with the U.S. economy. Housing and manufacturing are improving; employment is higher; and global markets are regaining their respective footing. The Fed may make note of it. Or, it may not.
Regardless, mortgage rates are expected to move so consider locking your mortgage rate ahead of today’s 2:15 PM ET statement.
There too much risk in floating.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets were mostly unchanged last week despite a series of positive developments. In addition to Greece successfully reaching a deal with its private creditors, the U.S. economy turned out strong reports — most notably with respect to Non-Farm Payrolls.
In February, the U.S. economy added 227,000 new net jobs and the figures from December and January were revised higher by an additional 61,000. It marked the 16th straight month of job gains nationwide.
The Unemployment Rate held unchanged at 8.3%.
Conforming mortgage rates in Michigan improved slightly last week and mortgage rates continue to hover near all-time lows.
According to Freddie Mac, the average 30-year fixed rate mortgage nationwide is now 3.88% for Okemos mortgage applicants willing to pay 0.8 discount points and a full set of closing costs.
1 discount is equal to 1 percent of your loan size.
Freddie Mac also reported the 15-year fixed rate mortgage at its lowest level in history. The average 15-year fixed rate mortgage fell to 3.13% with an accompanying 0.8 discount points. This is more a full percent lower as compared to March 2011.
This week’s big event is the Federal Open Market Committee’s second scheduled meeting of the year. Whenever the FOMC meets, mortgage rates can change in a hurry.
The FOMC is a subcommittee within the Federal Reserve, the U.S. government’s monetary-policy making group. Since 2008, the Federal Reserve has held its benchmark Fed Funds Rate near 0.000%. It’s not expected to raise that rate Tuesday. However, just because the Fed Funds Rate won’t change, that doesn’t mean mortgage rates won’t.
This is because the Fed doesn’t set mortgage rates, but it does influence them. Market will read the Fed’s post-FOMC press release Tuesday for hints of new policy or economic growth. If the statement shows more optimism for the economy than expected, mortgage rates are expected to rise.
Conversely, if the Fed shows pessimism for the U.S. economy, rates are expected to fall.
Other economic events this week include the releases of Retail Sales, Producer Price Index, and Consumer Price Index; plus three high-profile treasury auctions.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The FHA is making more changes to its flagship FHA Streamline Refinance program.
Beginning mid-June 2012, certain current, FHA-backed homeowners will be able to refinance their existing FHA mortgage into a new one, without having to pay the government-backed group’s new, costly mortgage insurance premium schedule.
Earlier this week, the FHA rolled out its new MIP schedule.
Beginning April 9, 2012, new FHA mortgages are subject to a 1.75% upfront mortgage insurance premium (UFMIP) and an annual mortgage insurance premium of up to 1.25% for loan sizes up to, and including, $625,500; or 1.60% for loan sizes exceeding $625,500.
Upfront MIP is typically added to the loan size as a lump sum. Annual MIP is paid via 12 monthly installments. Both add to the long-term costs of homeownership.
However, the FHA’s new MIP schedules will not apply to all FHA-backed homeowners equally. Homeowners whose FHA mortgages were endorsed prior to June 1, 2009 will benefit from a different, less costly MIP schedule.
For these homeowners in search of a streamline, the MIP schedule is as follows :
Upfront MIP : 0.01% of the loan size
Annual MIP : 0.55% of the loan size, with no adjuster for loan sizes over $625,500
The new schedule is detailed in FHA Mortgagee Letter 12-04 and it lowers the cost of FHA Streamline Refinancing for long-time, FHA-backed households in Michigan and nationwide to almost nothing.
As a real-life example, an FHA-backed homeowner whose $100,000 mortgage dates to 2008 could refinance via the FHA Streamline Refinance program and pay just $10 in upfront MIP, with a corresponding annual MIP payment of just $550, or $45.83 monthly.
By comparison, every other FHA-backed homeowner with a $100,000 mortgage pays $1,750 in UFMIP and as much as $1,600 in annual MIP.
The new streamline refinance MIP schedule is in effect for FHA mortgage applications with case numbers assigned on, or after, June 11, 2012. It is not available for loan applications made prior to that date.
There are lots of dates and deadlines in the FHA’s new streamline program. If you’re too early — or too late — you could miss your optimal refinance window. Talk with your loan officer, therefore, and put a plan in place. You’ll be glad to be prepared.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
According to Freddie Mac’s weekly mortgage rate survey, for 13 straight weeks, the average 30-year fixed rate mortgage has held below 4.000% for mortgage applicants willing to pay up to 0.8 discount points plus a full set of closing costs.
These are the lowest mortgage rates in history and now — with a bevy of loan programs for the nation’s 11 million “underwater homeowners” including HARP, the FHA Streamline Refinance, and the VA IRRRL — millions of U.S. homeowners can exploit the current mortgage rate environment.
In this 4-minute clip from NBC’s The Today Show, you’ll learn about today’s mortgage market and your refinancing opportunities in Michigan.
The video begins by telling us that 14 million credit-worthy Americans have yet to refinance their respective mortgages, and are leaving an average of $471 in “wasted savings” on the table each month which adds up to more than $5,600 annually.
That’s a big number.
Some of the video’s other key points include :
Refinancing is “worth the hassle” when mortgage rates are as low as they are today
The best rates are reserved for homeowners with the highest credit scores
Comparison shop — your current mortgage lender may not offer you the best rates
Furthermore, the video reveals the characteristics of the homeowner type most likely to benefit from a refinance. These traits include having with 20% equity in the home; have plans to live in the home for at least the next 36 months; carrying a current mortgage rate of 5 percent or higher.
It should also be added that, with a zero-closing-cost or low-closing-cost mortgage, even a small reduction in your mortgage rate can make a refinance worthwhile.
Mortgage rates are low but can’t stay low forever. If you haven’t participated in the Refi Boom, talk with a loan officer and review your mortgage options. You may be able to save hundreds of dollars per month with just modest closing costs.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets worsened last week as the U.S. economy continued to show that it’s in recovery, and as Federal Reserve Chairman Ben Bernanke publicly hinted at the same.
In a congressional testimony Wednesday, Chairman Bernanke suggested that new, Fed-led stimulus may not be imminent, surprising Wall Street analysts and market traders who, for months, have expected a third round of quantitative easing from the Fed.
Bernanke’s comments sparked a sharp bond market sell-off that briefly pushed conforming and FHA mortgage rates up 0.375% in Michigan.
Other relevant data from last week included :
Core inflation rising 1.9% from last year, below the Fed’s 2.0% target
Also, the Pending Home Sales Index posted its highest reading since the end of the 2010 federal home buyer tax credit, suggesting a strong spring housing market.
The economy appears much improved over this time last year.
By the end of the week, mortgage rates had recovered somewhat, but still closed worse on the week. Mortgage rates are higher than their lows of the year.
According to Freddie Mac’s weekly mortgage rate survey, the average 30-year fixed rate mortgage is now 3.90% nationwide with an accompanying 0.8 discount points and a full set of closing costs. Borrowers in Okemos wishing to pay no points, or fewer fees, should expect higher rates than the Freddie Mac average.
The average 15-year mortgage rate is 3.17% with 0.8 discount points and closing costs.
This week, mortgage rates should be volatile. There aren’t many new data points set for release, but the ones on the calendar are bona fide market-movers — especially Friday’s Non-Farm Payrolls Report.
More commonly called the “jobs report”, Non-Farm Payrolls data is closely watched because of the jobs market’s close ties to the health of the economy. Businesses have added jobs through 16 straight months and are expected to show another 210,000 added in February. If the actual number of net new jobs added exceeds 210,000, expect for mortgage rates to rise.
If the number falls short, watch for rates to fall.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Beginning April 1, 2012, the FHA is once again raising mortgage insurance premiums (MIP) on its newly-insured borrowers throughout East Lansing and the country.
It’s the FHA’s fourth such increase in the last two years.
Beginning April 1, 2012, upfront mortgage insurance premiums will be higher by 75 basis points, or 0.75%; and annual mortgage insurance premiums will be higher by 10 basis points per year, or 0.10%.
For borrowers with a loan size of $200,000, the new MIP will add $1,500 in one-time loan costs, plus an on-going, annual $200 increase in total mortgage insurance premiums paid.
All new FHA loans are subject to the increase — purchases and refinances.
The FHA is increasing its mortgage insurance premiums because, as an entity, the FHA is insuring a much larger percentage of the U.S. mortgage market than ever before.
In 2006, the FHA insured 2 percent of all purchase-money mortgages. In 2011, that figure jumped to 18 percent. Unfortunately, as the FHA has insured more loans, it’s number of loans in default have climbed, too, forcing the FHA to boost its reserves.
Beginning April 1, 2012, the new FHA annual mortgage insurance premium schedule is as follows :
15-year loan term, loan-to-value > 90% : 0.60% MIP per year
15-year loan term, loan-to-value <= 90% : 0.35% MIP per year
30-year loan term, loan-to-value > 95% : 1.25% MIP per year
30-year loan term, loan-to-value <= 95% : 1.20% MIP per year
In order to calculate what your FHA annual mortgage insurance premium would be on a monthly basis, multiply your beginning loan size by your insurance premium in the chart above, then divide by 12.
In addition, for loans over $625,500, beginning June 1, 2012, there is an additional 25 basis point increase to annual MIP.
To avoid paying the new FHA mortgage insurance premiums, start your FHA mortgage application today. Existing FHA-insured homeowners will not be affected by the change.
Mortgage insurance premiums will not rise for loans already made.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Standard & Poors released its December 2011 Case-Shiller Index this week. The report is the most widely-cited, private-sector metric for the housing market. The index aims to measures change in home prices from month-to-month, and from year-to-year, in select U.S. cities and nationwide.
According to the report, between November and December 2011, home values fell within 18 of the Case-Shiller Index’s 20 tracked markets; and through the 12 months leading up to December 2011, 19 of 20 tracked markets fell.
Now, these statistics may look dire for the housing market, but it’s important to remember that the Case-Shiller Index — though widely-cited — remains a flawed statistic for everyday buyers and sellers in East Lansing. Rather, the monthly Case-Shiller Index is more appropriately applied by policy-makers and economists to macro-economic issues than by you and me for buy-or-sell decisions..
There are three ways in which Case-Shiller is flawed — each tied to the way by which Case-Shiller Index is calculated.
The first reason why the Case-Shiller Index is flawed is that, although it’s purported to be a “national” housing index, the index tracks just 20 cities nationwide. The United States, by comparison, houses more than 3,100 municipalities. The Case-Shiller Index is not a representative sample of the U.S. housing market.
And then, even within its tracked markets, Case-Shiller fails provide sufficient details to be useful.
Within each Case-Shiller Index city, there are innumerable “local markets”, each with its own local economy. When home values are shown to be falling in Phoenix, for example, that doesn’t mean that values are falling everywhere in Phoenix — only in the aggregate. There are multiple neighborhoods in Phoenix in which home values improved in December.
The Case-Shiller Index doesn’t capture that.
As another reason to ignore the Case-Shiller Index, note that the Case-Shiller Index only includes home sale data for single-family, detached homes — sales of condominiums and of multi-unit homes are specifically excluded. In some markets — Chicago and New York, for example — sales of these types can represent a large percentage of overall monthly sales.
Lastly, as a third reason to reduce the Case-Shiller Index’s significance — it’s “old”.
The Case-Shiller Index is published on a 60-day delay and includes sales contracts from even 60 days prior to that. In other words, the data used in this week’s Case-Shiller Index dates back to October 2011.
Data from 5 months ago is of little relevance to buyers in Michigan today. Up-to-date and current information is what matters.
For actionable, real-time housing market data, therefore, look past the Case-Shiller Index. Look to your local real estate agent instead.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The housing market appears headed for a strong spring season.
After a brief setback in December, the Pending Home Sales Index resumed its climb in January, posting a 2 percent gain over the month prior.
The data puts pressure on Lansing home buyers. This is because a “pending home” is a home that’s under contract to sell, but has not yet sold. It’s tracked by the National Association of REALTORS® and, among all housing statistics, it’s the only one that’s “forward-looking”.
The Pending Home Sales Index is important to home buyers throughout Michigan because 80% of homes under contract to sell close within 60 days of contract. In this way, the Pending Home Sales Index forecasts the housing market 1-2 months into the future.
This is very different from how NAR’s Existing Home Sales report works; or, how the Census Bureau’s New Home Sales report works. These two metrics tell us what’s already happened in housing.
By contrast, the Pending Home Sales Index tells us what’s coming next.
January’s Pending Home Sales Index reading lifts the monthly metric to its highest level since April 2010 — the month during which the 2010 federal home buyer tax credit expired — foreshadowing a strong housing market through March and April 2012, at least.
This should not be news, of course. The nation’s home builders have said “foot traffic” is rising and home supplies are scarce nationwide. The only wild-card for housing is the high contract cancellation rate.
As compared to last January when just 9 percent of home purchase contracts “failed”, this January saw 33 percent of contracts fail. High failure rates undermine the Pending Home Sales Index’s viability as a forward-looking housing market indicator.
Despite contract failures, though, the combination of low mortgage rates and low home prices is enticing to today’s home buyers. Expect home sales to climb in the coming weeks which will lead to a strong spring season for housing.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
As foreshadowed by February’s Homebuilder Confidence survey, which rose to a 4-year high, the Census Bureau reports new homes are selling more quickly than builders have built them, lowering the national “home supply” to levels not seen since 2006.
A “new home” is a home that is considered new construction and, at the current pace of sales, the nation’s entire new home inventory of 151,000 homes would be sold in 5.6 months.
Anything less than 6.0-month supply is thought to connote a “sellers’ market”.
321,000 new homes were sold last month on a seasonally-adjusted, annualized basis. 7 of 10 new homes sold for less than $300,000.
The South Region continues to account for the majority of new construction sales, posting a 59% market share in January. South Region sales were up 9 percent as compared to December. The other 3 regions turned in mixed results.
Northeast Region : +11.1% from December 2011
Midwest Region : -24.5% from December 2011
West Region : -10.6% from December 2011
Unfortunately, the Census Bureau’s New Home Sales data could be wrong.
Although New Home Sales were said to fall by about one percent nationally from December to January, the government’s monthly report was footnoted with a ±16.6% margin of error. This means that the actual New Home Sales reading may have been as high as +15%, or as low as -18%.
Because the range of values includes positive and negative values, the January New Home Sales data is of “zero confidence”. However, that’s not to say that it should be ignored. The aforementioned homebuilder confidence survey shows builders optimistic for the future, and a bevy of home sale data since October 2011 suggests a market in recovery.
If you’re in the market for new construction in East Lansing , therefore, consider going into contract sooner rather than later. Home prices remain low and mortgage rates do, too — a terrific combination for today’s buyers.
In a few months, the landscape may look different.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets improved in a holiday-shortened week last week, drawing mortgage rates lower throughout East Lansing and nationwide.
Few new economic releases reached the markets, but those that did suggested recovery — especially with respect to housing and employment, two key drivers of the U.S. economy overall.
Mortgage rates tend to rise when on strong data. That’s not what happened last week, however.
First, in housing, the New Home Sales and Existing Home Sales reports each showed strength for December and January. Separate reports show that sales volume is rising nationwide even as the number of available homes for sale fall.
Home Supply is reaching bull market levels, which pressures home prices higher.
And then, in employment, the government’s Initial Jobless Claims report turned up good news, too. The report’s 4-week moving average is now down to its lowest level since 2008, a figure that suggests that U.S. households are getting back to work and staying there.
As rate shoppers in Michigan , don’t expect rates to fall forever.
Last week’s rate improvements were partly because the Greece bailout has yet to be finalized, and partly because concerns about Iran have sparked a mortgage bond flight-to-safety. International demand for U.S.-auctioned bonds was especially high last week and mortgage bonds benefited.
As the situations in Greece and Iran stabilize, therefore, all things equal, mortgage rates should rise.
There are just two key data points set for release this week — the Pending Home Sales Index (Monday) and Personal Income and Outlays (Thursday) — plus two key European votes on the Greece bailout. The Case-Shiller Index will also be released and the FHA is expected to announce new mortgage insurance premiums.
Mortgage rates remain near all-time lows. If you’re still floating a rate, or waiting to refinance, consider moving up your timeframe. It’s a good time to lock your mortgage rate for the long-term.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The Federal Reserve has released the minutes from its 2-day meeting January 24-25, 2012.
The Fed Minutes is a summary of the conversations and debates that shape our nation’s monetary policy. It receives less attention than the Fed’s more well-known, post-meeting press release, but the Fed Minutes is every bit as important.
To rate shoppers in East Lansing , for example, the Fed Minutes can provide clues about whether mortgage rates will generally rise or fall in the coming months.
The most recent Fed Minutes reveals a central bank divided on the future of the U.S. economy. The minutes show some Fed members in favor of new, immediate market stimulus. It shows others in favor of terminating the stimulus that’s already in place.
The Fed’s debate centered on the topic of inflation, and the pressures that a prolonged, near-zero Fed Funds Rate can place on the economy. Ultimately, the Fed did nothing, neither adding new stimulus nor removing that which is already in place.
It did, however, communicate a plan to keep the benchmark Fed Funds Rate rate “exceptionally low” through late-2014, at least.
The Fed Minutes included the following notes, too :
On employment : Unemployment rates will “decline only gradually” in 2012
On housing : The market is “held down” by the “large overhang” of distressed homes
On inflation : Consumer prices have remained “flat”
Furthermore, the Fed expressed optimism regarding European financial markets, noting that market sentiment “appeared to brighten a bit”. Nonetheless, “spillovers” remain possible and the threat continues to weigh on markets.
Mortgage rates are slightly worse since the Fed Minutes were released.
The Federal Reserve’s next scheduled meeting is March 13, 2012 — its second of 8 scheduled meetings this year.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
January’s home resales moved to a 20-month high — additional evidence that the nation’s housing recovery is underway.
According to the National Association of REALTORS®, the January 2012 Existing Home Sales showed 4.57 million units sold last month on a seasonally-adjusted, annualized basis — a 4 percent increase as compared to December’s revised figures.
An “existing home” is one that’s been previously occupied and cannot be categorized as new construction.
Beyond the headline numbers, though, there was plenty about which for today’s East Lansing home sellers to get excited. Demand for homes remains strong, foreshadowing higher home prices through 2012.
First, the national housing stock is at a 5-year low.
In January, the number of homes for sale nationwide slipped to 2.31 million, the smallest home inventory since February 2007, and a 21% decrease from just one year ago.
Falling home supply amid constant home demand leads home prices higher. At the current pace of sales, today’s complete home inventory would “sell out” in 6.1 months.
Analysts say that a 6-month supply is a market in balance. Anything less is Bull Market territory.
Second, the National Association of REALTORS® says that one-third of all homes under contract “failed” last month. This means that many more buyers tried to buy, but couldn’t for a number of reasons including mortgage denials; or, insurmountable home inspections issues; or, homes appraising for less than the contract price.
As contract failures subside, Existing Home Sales are expected to rise even faster.
And, lastly, first-time buyers continue to power the home resale market. In January, 33% of all sales were made to first-time buyers, up four points from last year. This statistic suggests that renters are moving into homeownership, an important component in a sustained housing market recovery.
Given high demand and shrinking supply, we should expect for Michigan State University home prices to rise in the coming months, if they haven’t already. Thankfully, mortgage rates remain near all-time lows.
Low mortgage rates make homes more affordable.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Foreclosure filings fell 19 percent last month versus one year ago, says foreclosure-tracking firm RealtyTrac. It’s yet one more signal that the U.S. housing market may have already climbed off its bottom.
According to RealtyTrac, a ”foreclosure filing” is any one of the following foreclosure-related events : (1) A default notice on a home; (2) A scheduled auction for a home; or, (3) A bank repossession of a home.
In looking at the January 2012 figures :
Default Notices were down 22% from January 2011
Scheduled Auctions were down 19% from January 2011
Bank Repossessions were down 15% from January 2011
On a monthly basis, however, the numbers weren’t so promising.
Default notices and scheduled auctions were mostly unchanged, but bank repossessions rose 8 percent. The rise in bank repossessions is likely because 2010′s robo-signing controversy has been rectified at the state and lender level.
As in most months, January’s foreclosure activity was geographically concentrated. Nevada led the nation in Foreclosures Per Capita, followed closely by California. 13 states fared worse than the national average of 1 foreclosure per 624 households. 37 fared better.
The difference in foreclosure frequency among the two groupings was stark :
Top 13 Foreclosure States : 1 foreclosure per 435 households, on average
Bottom 37 Foreclosure States : 1 foreclosure per 5,101 households, on average
North Dakota had January’s lowest foreclosure rate nationwide. Just 1 in 63,500 homes was in some form of foreclosure in North Dakota last month.
As a first-time or seasoned buyer in Okemos , foreclosed homes can be enticing. They’re plentiful and cheap. However, just because a foreclosed home can be bought for a “steal”, that doesn’t mean it’s worth buying. The process of buying a foreclosed homes is different from the process of buying a non-foreclosed home.
The contract-and-negotiation process may be different with a foreclosed property, and foreclosed homes are often sold “as-is”. This means the home you buy at auction could be run-down and defective to the point where it’s uninhabitable.
If you plan to buy a foreclosed home, therefore, have a real estate professional on your side. The internet can teach you much about how the Michigan housing market works, but when it comes to writing contracts, you’ll want an experienced agent on your side.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets worsened last week as the Eurozone moved closer to a bailout agreement with Greece, and the U.S. economy displayed more signs of growth.
In response, mortgage rates climbed last week.
Rate shoppers should not be surprised that rates ticked north. Since mid-2011, weakness in Greece has helped keep mortgage rates low and the same is true for a weak U.S. economy. Wall Street has sought “safe assets” as protection from risk and that’s driven mortgage rates down.
Now, the safe haven buying that served to anchor low rates appears poised to reverse.
Last month, it was shown, consumer spending rose to record levels and the housing market surpassed analyst expectation again. Homebuilder confidence is now at a 4-year high and Single-Family Housing Starts topped one-half million units for the second straight month.
Conforming mortgage rates in Michigan rose for the first time in a month last week. Unfortunately, few shoppers knew because Freddie Mac’s weekly mortgage rate survey failed to capture the change. The survey deadline was Tuesday. Rates started rising Wednesday morning.
Freddie Mac’s weekly mortgage rate survey put the average 30-year fixed rate mortgage unchanged at 3.87% for borrowers willing to pay 0.8 discount points plus a full set of closing costs.
Rates are higher today.
Beyond Greece and the U.S. economy, inflation is another reason mortgage rates are up. Inflation is the enemy of mortgage rates and, an on annual basis, the core Consumer Price Index registered 2.3% — it’s highest reading since 2008. The Fed expects inflation to ease later this year but if gas prices stay high, the Fed’s forecast may be wrong.
This week is holiday-shortened. Look for Greece to dominate headlines (again) and watch for housing data toward the end of the week. Existing Home Sales is released Wednesday. New Home Sales is released Friday.
For now, mortgage rates remain low. It’s a safe time to lock a long-term rate.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The housing market has carried forward its year-end momentum.
According to the Census Bureau, on a seasonally-adjusted, annualized basis, January’s Single-Family Housing Starts crossed the half-million unit marker for the second straight month.
This hasn’t happened in close to 2 years and is the latest in a series of strong data that suggests the beleaguered housing market has turned a corner — both nationally and locally in Lansing.
Although single-family starts slipped 1 percent from December, January’s annualized 508,000 figure represents a 16% spike from January 2011 and is the second-highest reading since April 2010 — the last month of 2010′s federal home buyer tax credit program.
A “housing start” is a new home on which construction has started.
The strength of January’s Housing Starts data surprised Wall Street analysts and is partially responsible for Thursday’s unexpected mortgage rate spike.
In hindsight, though, we should have seen this coming.
Earlier in the week, the National Association of Homebuilders announced that homebuilder confidence had climbed to its highest point since 2007 amid builder reports of rising sales volume and the most foot traffic from buyers in more than 4 years.
In addition, builders expect to sell more homes in 2012 than in 2011.
Builders are building and buyers are buying.
Meanwhile, as another sign of housing market strength, the Census Bureau reports that, in January, Building Permits moved to a multi-year high as well. Permits issued for single-family homes in January rose 1 percent from December, a statistic that suggests housing will continue its run through the spring season, at least.
It’s a good time to be a home buyer. Mortgage rates and home prices are low. Housing market momentum, however, is building. If you’re on the fence about whether to buy a home in Michigan State University , ask your real estate agent for additional market information.
The cost of home-ownership may never be as low as it is today.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
New construction buyers in Okemos , look out. The nation’s home builders are predicting a strong 2012 for new home sales. It may mean higher home prices as the spring buying season approaches.
For the sixth straight month, the National Association of Homebuilders reports that homebuilder confidence is on the rise. The Housing Market Index climbed four points to 29 in February, the index’s highest reading since May 2007.
The Housing Market Index is now up 8 points in 8 weeks. The last time that happened was June 2003, a month during which the U.S. economy was regaining its footing, much like this month. It’s noteworthy that June 2003 marked the start of a 4-year bull run in the stock market that took equities up 54%.
The NAHB’s Housing Market Index itself is actually a composite reading. It’s the end-result of three separate surveys sent to home builders monthly.
The association’s 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?
In February, builders reported marked improvement across all three areas. Builders report that current home sales climbed 5 points; that sales expectations for the next 6 months climbed 5 points; and that buyer foot traffic climbed 1 point.
Most notable of all of the statistics, though, is that the nation’s home builders report that there are now twice as many buyers setting foot inside model units as compared to just 6 months ago.
This data is supported by the monthly New Home Sales report which shows rising sales and a shrinking new home inventory.
Because of this, today’s new home buyers throughout Michigan should expect fewer concessions from builders at the time of contract including fewer price breaks on a home and fewer free upgrades. Builders are optimistic for the future and, therefore, may be less willing to “make a deal”.
This spring may mark the best time of year to buy a new home. 60 days forward, it may be too late.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The U.S. economy continues to show signs of a rebound.
According to the Census Bureau, Retail Sales climbed to $329 billion last month on a seasonally-adjusted basis, excluding automobiles. January’s data marks the 18th time in 19 months that Retail Sales rose, a run that’s increased total sales receipts by 11 percent.
This is big news because Retail Sales accounts for close to 70% of the U.S. economy.
In addition, consumer confidence is rising.
In a separate, joint report from the University of Michigan and Thompson Reuters, it was shown that consumer attitudes toward the economy and the future are improving, primarily the result of recent job gains.
It is not a coincidence that Retail Sales and consumer confidence both made multi-month highs — the readings are more than loosely linked. As consumers feel more confident about the economy and their personal prospects for the future, they’re more likely to spend money on goods and services, which leads to an increase in consumer spending.
For the housing market, the ramifications are two-fold.
First, from the financing side, an expanding economy is linked to rising mortgage rates. This is because Wall Street tends to chase risk in a growth economy and the bond market offers little in the way of risk. As demand for bonds drops, then, mortgage rates rise throughout Michigan.
Second, rising consumer confidence can lead East Lansing home values higher, too.
Confident consumers are more likely than fearful ones to become home buyers. They’re more likely to stop renting and start buying; more likely to list their home and “move-up” to something bigger; more likely to “take the next step”.
So, as more buyers enter the market at a time when the national home supply is shrinking, the supply-demand balance in housing is shifting toward the sellers. This creates price pressures and should lead to higher home valuations in neighborhoods like Michigan State University.
If you have plans to buy a home in 2012, the best time to buy may be now. Today’s mortgage rates are low and so are the home prices — a combination that’s unlikely to last.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Economists believe the strength of the 2012 housing market will be closely tied to jobs. If they’re right, the housing market is ripe for a boost. It spells good news for East Lansing home sellers and may mean the end of bargain-basement prices for buyers.
Since peaking in mid-2009, the number of U.S. workers filing for first-time unemployment benefits has dropped 44 percent. Over the same period of time, the U.S. economy has added more than 2 million jobs and the national Unemployment Rate is down more than 1 percentage point to 8.3%.
Employment’s link to the housing market of Michigan State University is both economic and psychological.
To make the economic link is straight-forward. A person with a job earns verifiable income and such income is required in order to be mortgage-eligible. For conventional and FHA purchase loans, for example, mortgage lenders want a home buyer’s monthly income be more than double his monthly debts.
For the formerly unemployed that have since returned to work, having a full-time income makes buying homes possible. It also supports higher home valuations nationwide because home prices are based on supply-and-demand. All things equal, when the number of buyers in a market goes up, prices do, too.
The psychological connection between housing and employment is a tad more complicated, but every bit as important. It’s not just out-of-work Americans that don’t look for homes — it’s fearful Americans, too. People with concerns about losing a job are just as unlikely to shop for homes as people actually without a job. The same is true for people unsure of their prospects for a better-paying job, or their own upward mobility.
A recovering job market can lessen those fears and draw out buyers — especially those who face a loss on the sale of an “underwater” home.
The Initial Jobless Claims rolling 4-week average is at its lowest level since 2008. Fewer Americans are losing jobs, and more are finding permanent placement.
It’s one more reason to be optimistic for this year’s housing market.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets were mostly unchanged last week as Greece — once again — was front-of-mind for Wall Street investors. The nation-state is attempting to avoid a debt default, and has been attempting to avoid default since May 2010.
Early in the week, Greece reached a deal with European Union leaders to secure additional financial aid. By Friday, however, the deal was in doubt, as the EU leaders declared that the Greek Parliament would have pass new austerity measures before the aid would be released.
Austerity measures have been unpopular in Greece, giving rise to riots among citizens and resignations among politicians. Markets responded to the potential undoing of the debt deal by seeking safety in bonds — including U.S. mortgage-backed bonds.
The Greek debt default story has helped fuel low mortgage rates in Michigan. Once a final deal is reached, mortgage rates are likely to rise.
For now, though, mortgage rates remain at all-time lows.
According to Freddie Mac’s weekly mortgage rate survey, the average, conforming 30-year fixed mortgage rate held firm at 3.87% last week for mortgage borrowers willing to pay an accompanying 0.8 discount points plus applicable closing costs. 1 discount point is equal to one percent of your loan size.
For borrowers unwilling to pay discount points and/or closing costs, average mortgage rates are higher.
This week, data returns to the U.S. economic calendar.
Greece will still be in play, but the health of the U.S. economy will determine in which direction mortgage rates will go. There are two inflation reports due — the Consumer Price Index and the Producer Price Index.
The former is a “cost of living” indicator for U.S. households; the latter measures the same for business. Inflation is bad for mortgage rates so if either report comes in unexpectedly high, mortgage rates are likely to rise.
The same is true for Tuesday’s Retail Sales report.
Retail Sales account for close to 70% of total U.S. economic activity. An unexpectedly strong Retail Sales figure will suggest that the domestic economy is improving and that, too, would pressure mortgage rates up.
If you’re shopping for a mortgage, or floating one with your lender, consider locking in this week. Mortgage rates don’t have much room to fall and there’s much room to rise.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
The government’s new, revamped HARP program is 6 weeks from release. Homeowners in Michigan and nationwide are gearing up to refinance.
HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the government’s loan product for “underwater homeowners”. HARP makes current mortgage rates available to households which would otherwise be unable to refinance because the home lacks equity.
This is a big deal — especially today. Mortgage rates are at an all-time low and millions of U.S. homeowners have been unable to take advantage. HARP aims to change that.
HARP originally launched in 2009. Its first iteration failed to reach a meaningful percentage of U.S. homeowners, however, because costs were high and loans were high-risk. With its re-release, the government has removed the hurdles to HARP, putting refinancing within reach for millions of U.S. households.
To qualify for HARP, homeowners must first meet 3 qualifying criteria.
First, their current mortgage must be backed Fannie Mae or Freddie Mac. FHA- and VA-backed loans are HARP-ineligible, as are jumbo loans and loans backed by portfolio lenders.
To check if your loan if Fannie Mae-backed, click here.
To check if your loan if Freddie Mac-backed, click here.
Second, the existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior on, or before, May 31, 2009. If you bought your home or refinanced it after that date, you are HARP-ineligible.
There are no exceptions to this rule.
And, third, the existing mortgage must be accompanied by a strong repayment history. Mortgage payment must have been paid on-time for the last 6 months, at least, and there may not be more than one 30-day late payment in the last 12 months.
If these 3 qualifiers are met, HARP applicants should find the approval process straight-forward :
The standard 7-year “waiting period” after a foreclosure is waived in full
Except in rare cases, home appraisals aren’t required
Furthermore, HARP mortgage rates are expected to be on par with non-HARP rates, meaning that HARP homeowners in Lansing will get the same rates and pay the same fees as everyone else. There’s no “penalty” for using HARP.
The revamped HARP is expected to be generally available beginning Monday, March 19, 2012.
To get a head-start on HARP, check with your loan officer for the complete list of HARP eligibility requirements.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Credit scores play a huge role in today’s mortgage market — larger than at any time in recent history. Blame it on the high default rates of the last half-decade. Lenders are reserving their lowest rates for the customers most likely to make on-time repayments.
Mortgage rates are at an all-time low in Michigan. However, the low rates you see advertised on TV and online are only available to the home buyers and would-be refinancers whose credit scores are pristine. Having a high credit score is often the difference between getting “the best rates” from your lender, and getting something worse.
The first part of improving your credit score is understanding how it works. In this 5-minute piece from NBC’s The Today Show, you’ll learn the basics :
Why you shouldn’t close a credit card after you pay off a large debt
What is the maximize balance to leave on your credit cards, relative to your credit limit
What types of credit checks harm your credit scores, and which ones don’t
You’ll also learn how to shop for a mortgage with multiple lenders without having your credit score “dinged”, as well as several proven methods to raise your credit score quickly.
In the end, good credit scores are the result of paying bills on time and staying with your means. Those with the best scores, get the best rates.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Traditionally, federal income taxes must be filed with the IRS on, or before, April 15 each year. The date has become such a part of U.S. culture that many people simply call it “Tax Day”.
This year, however, for the 3rd time in 7 years, your federal income taxes will not be due April 15. Instead, because of a combination of the calendar, a holiday, and tax law, Tax Day 2012 is delayed until Tuesday, April 17.
You will have two extra days to prepare and file your federal income taxes this year.
Here’s why.
First, April 15 is a Sunday and all federal offices are closed on Sundays. This means that that taxes can’t be filed on April 15, as regularly scheduled. Rather, the tax due date should roll over to the first available business day — Monday.
However, Monday, April 16 is Emancipation Day, a holiday in the District of Columbia since 2005.
Emancipation Day honors President Abraham Lincoln’s April 16, 1862 signing of the Compensation Emancipation Act. All of Washington, D.C. is closed for the local holiday — including the offices of the IRS. Taxes can’t be due on this date because there will be nobody at the Internal Revenue Service to receive them.
Therefore, Tax Day rolls over to the next available business day, and that’s Tuesday, April 17. Despite the 2-day change, as a reminder, the deadline to file a federal tax return with extension has not changed. That filing date remains October 15, 2012.
Also, note that most states have chosen to mirror the IRS’ tax deadlines this year even though Emancipation Day is a Washington, D.C-specific. Be sure to check with your accountant to confirm your local filing deadline.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Mortgage markets worsened last week as domestic job growth surprised Wall Street and the Eurozone moved yet one more step closer to reaching a lasting Greece sovereign debt solution.
Conforming mortgage rates in Michigan rose on the news, although you wouldn’t know it from looking at Freddie Mac’s weekly mortgage rate survey.
According to Freddie Mac, the average 30-year fixed rate mortgage rate fell to 3.87% last week with 0.8 discount points due at closing, plus closing costs. 1 discount point is a fee equal to one percent of your loan size.
3.87% for a 30-year fixed rate mortgage is the official, all-time low for the weekly Freddie Mac survey, conducted since the 1970s. However, because Freddie Mac gathers its results on Monday and Tuesday only, by the time the survey results were released Thursday morning, mortgage rates were already rising off their lows.
Then, Friday morning, after January’s Non-Farm Payrolls data was released, mortgage rates surged.
The January jobs report exceeded expectations in nearly every fashion possible :
Economists expected to see 135,000 jobs created in January. The actual number was 243,000.
Economists expected to see the Unemployment Rate at 8.5% in January. The actual number was 8.3%.
Revisions added an additional 180,000 net new jobs to the original 2011 tally.
As compared to one year ago, there are 2.1 million more people employed in the U.S. workforce. Figures like this hint at a stronger national economy, and that tends to drive mortgage rates up.
This week, with little economic data due for release, mortgage rates are expected to move on momentum. Right now, that momentum is causing rates to rise.
If you’re shopping for a mortgage rate in East Lansing and want to know if the time is right to lock, consider that it’s impossible to time a market bottom, but simple to spot a “good deal”.
Mortgage rates remain near historical lows — it’s a good time to lock one in. Call your lender today.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
This week, once more, we find mortgage rates are on a downward trajectory. Conforming mortgage rates have returned to near all-time lows. After Friday morning’s Non-Farm Payrolls report, however, those low rates may come to an end.
It’s a risky time for Michigan home buyers and would-be refinancers to be without a locked rate.
Each month, on the first Friday, the Bureau of Labor Statistics releases its Non-Farm Payrolls report for the month prior. More commonly called the “jobs report”, Non-Farm Payrolls provides a sector-by-sector employment breakdown, and the nation’s Unemployment Rate.
In December 2011, the government reported 200,000 net new jobs created, and an Unemployment Rate of 8.5%.
For January 2012, economists project 135,000 net new jobs with no change in the Unemployment Rate and, depending on how accurate those predictions are proved, FHA and conforming mortgage rates for homes in Michigan State University are subject to change. The monthly jobs reports tends to have an out-sized influence on the direction of daily mortgage rates.
The connection between jobs and mortgage rates is fairly direct.
Job growth is a key cog in the economic growth engine and mortgage rates change daily based on short- and long-term economic expectation. As more people join the workforce, economic expectations change; the economy tends to expand, breeding optimism among investment. When this occurs, it often spurs investment in the stock market, which tends to leads mortgage rates up.
In short, in a recovering economy, when job growth is strong, all things equal, mortgage rates rise. Home affordability suffers.
So, for today’s rate shoppers, Friday’s job report represents a risk. The economy has added jobs over 15 straight months, a streak that’s added 2.1 million people to the workforce. Although the jobs market remains weak and well off its peaks from last decade, a 15-month streak is worth watching. More jobs means more more income earned nationwide, more money spent by households, and more taxes collected by governments.
This items build a foundation for economic growth and Wall Street is watching.
If tomorrow’s Non-Farm Payrolls shows more jobs created than the estimated 135,000, mortgage rates are expected to rise. If the jobs figures falls short, mortgage rates should fall.
The Non-Farm Payrolls report is released at 8:30 AM ET.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
Standard & Poors released its November 2011 Case-Shiller Index this week. The index measures the change in home prices from month-to-month, and year-to-year, in select U.S. cities.
According to the data, for the second straight month, home values fell in 19 of the Case-Shiller Index’s 20 tracked markets. In addition, also for the second straight month, Phoenix, Arizona was the lone Case-Shiller-tracked city in which home values rose.
Overall, November’s Case-Shiller Index showed a 1 percent decrease in home values between October and November 2011, and a near-4 percent decrease between November 2010 and 2011, putting home values at roughly the same levels as 8 years ago. Don’t read too far into it, however.
The Case-Shiller Index, though widely-cited, remains widely-flawed.
As a buyer or seller in Michigan State University, for example, , relying on the Case-Shiller Index for market research can lead you to improper conclusions. To understand the Case Shiller Index’s methodology is to understand why.
First, the Case-Shiller Index draws its data from a very limited geography.
There are more than 3,100 municipalities nationwide. The Case-Shiller Index tracks just 20 of them. And they’re not the 20 largest, either. Four of the Top 10 Most Populous U.S. Cities are excluded (Houston, Philadelphia, San Antonio, San Jose) whereas Minneapolis and Tampa are not.
Minneapolis is the 48th largest city in the United States. Tampa is #55.
Next, when Case-Shiller Index gathers its data from its 20 cities, it only includes the home sale data of single-family, detached homes. This means that sales of condominiums and multi-unit homes are specifically excluded from the index. There are some cities — Chicago and New York, for example — where condominium sales represent a large percentage of the overall market.
The Case-Shiller Index ignores that.
And, lastly, when the Case-Shiller Index is published, it’s published on a 60-day delay. Its data is not “current”, therefore, and does little to tell buyers and sellers of East Lansing and the country what’s happening in their home markets right this minute. Instead, the Case-Shiller Index tells us how the housing market looked two months ago.
If you’re active in the real estate market, either as a buyer or a seller, the Case-Shiller Index does you little good. For real-time data that actionable, speak to a real estate professional instead. It’s where you’ll find your best, most reliable and relevant information.
New Home Sales slowed into the New Year but the market for newly-built homes remains strong. For home buyers in Michigan and nationwide, December's New Home Sales report is yet one more signal that the housing market recovery may be underway.
According to the Census Bureau, the number of new homes sold in December 2011 slipped 2 percent to 307,000 units on a seasonally-adjusted, annualized basis nationwide.
A "new home" is a home that is considered new construction; a home for which the buyer will be the first owner and tenant.
As compared to December 2010, last months' sales volume fell seven percent. It's a statistic that suggests housing market weakness. However, in looking at a different component of the New Home Sales report -- the supply of homes for sale -- we're forced to reconsider.
At the current pace of sales, every new home for sale nationwide would be "sold" in a matter of 6.1 months.
Economists believe that a 6.0-month supply defines a market in balance -- anything quicker is termed a "seller's market". Statistics like that are enough to create urgency among today's Okemos home buyers.
Unfortunately, the Census Bureau's data may be wrong.
Although December's New Home Sales report shows sales down 2 percent, the government's data was published with a ±13.2% margin of error. This means that the actual New Home Sales figure may have been as low as -15.2 percent, or as high as +11.2 percent. And, because the range of possible values includes both positive and negative numbers, the Census Bureau had no choice but to assign its December data "Zero Confidence".
It will be a few months before final revisions are made to December New Home Sales data. Until then, therefore, buyers should take cues from the market-at-large and the market-at-large hints at recovery. One example of this is homebuilders showing more confidence in their product than at any time in the last 5 years.
If your plans for 2012 call for buying new construction, therefore, consider using this lull to "make a deal". As the year progresses, the great values in housing may be gone.
Mortgage markets improved last week as news from the Federal Reserve, the U.S. economy, and Europe combined to spur new demand for mortgage-backed bonds.
Conforming mortgage rates rallied from Wednesday through Friday’s close, ending the week near all-time lows set earlier this year.
Last week’s rally was sparked by the Federal Open Market Committee.
After its first meeting of the year, Chairman Ben Bernanke & Co. changed its projection for “exceptionally low rates” to at least late-2014. Previously, the Fed had said its benchmark Fed Funds Rate would remain low until 2013.
This, in conjunction with the Fed’s message that further economic stimulus may be coming, led Wall Street investors to increase their bets on mortgage bonds, pushing up prices and pushing down yields.
Lower yields means lower rates.
Mortgage rates were also helped lower by mixed data on the U.S. economy including weaker-than-expected housing reports, and another setback in the Greece sovereign debt negotiations.
Each time that Eurozone leaders have failed to reach an expected accord with Greece since 2010, mortgage rates have dropped. Last week was no different.
This week, with a large amount of U.S. economic data due for release and a high-profile summit among European Union leaders, mortgage rates are poised to move. Unfortunately, we can’t know in which direction.
Some of the news that will move markets include :
Monday : Personal Consumption Expenditures
Tuesday : Consumer Confidence; Case-Shiller Index
Wednesday : Construction Spending
Thursday : Weekly Jobless Claims
Friday : Non-Farm Payrolls;Factory Orders
Of all of the economic releases, Friday’s Non-Farm Payrolls has the most potential to move markets. More commonly called “the jobs report”, Non-Farm Payrolls details the monthly change in national employment and the national Unemployment Rate.
Jobs are believed to be the key to U.S. economic recovery so strength in jobs should result in higher mortgage rates throughout Michigan and the country.
Mortgage rates remain very low. If you’re nervous about mortgage rates rising this week or next, it’s as good of a time as any to lock your rate with a lender, and start moving toward closing.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 with Amera Mortgage today.
After 3 consecutive months of growth, the housing market appears to have eased a bit in December.
According to the National Association of REALTORS®, December’s Pending Home Sales Index slipped 4 percent from the month prior. The index measures the number of homes under contract to sell nationwide, but not yet sold.
Despite falling below its benchmark “100 value”, December’s Pending Home Sales Index is the reading’s second-highest value since April 2010 — the last month of last year’s home buyer tax credit program.
In other words, the housing market continues to show signs of improvement, propelled by low home prices and the cheapest mortgage rates of all-time.
Freddie Mac’s mortgage rate survey put the 30-year fixed rate mortgage at an average of 3.96% in December — a 75-basis point improvement from December 2010. This helps to make homes more affordable nationwide.
On a regional basis, December’s Pending Home Sales Index varied :
Northeast Region: -3.1 percent from November 2011
Midwest Region : +4.0 percent from November 2011
South Region : -2.6 percent from November 2011
West Region : -11.0 percent from November 2011
But even regional data is only so helpful. Like everything in real estate, data must be local to be relevant.
Throughout the West Region, for example, the U.S. region in which pending home sales fell the most, several states must have performed better than the regional average. And, undoubtedly, there were cities, towns, and neighborhoods that experienced marked market growth.
Unfortunately, the Pending Home Sales Index can’t capture that data. Nor can it identify the markets in which home sales suffered.
For today’s Lansing home buyers and sellers, therefore, it’s important to understand your local market and the drivers of local activity. Reports like the Pending Home Sales Index can paint a broad picture U.S. housing but for data that matters to you, you’ll want to look local.
For local real estate data, talk to an experienced real estate professional.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 at Amera Mortgage today.
The Federal Open Market Committee adjourns from a scheduled 2-day meeting today, its first of 8 scheduled meetings this year.
The FOMC is a designated, rotating, 12-person committee within the Federal Reserve, led by Federal Reserve Chairman Ben Bernanke. Members of the FOMC sub-committee are the voting members of the Federal Reserve; the ones that ultimately determine U.S. monetary policy.
The most well-known Federal Reserve monetary policy tool is the central bank’s Fed Funds Rate. The Fed Funds Rate is the prescribed interest rate at which banks borrow money from each other for a period of one night.
The Fed Funds Rate can only be changed by FOMC vote.
For home buyers and would-be refinancing households in Lansing , it’s important to recognize that the Fed Funds Rate is an interest rate separate and distinct from “mortgage rates”. Mortgage rates are not voted upon by the Federal Reserve. Rather, mortgage rates are based on the price of mortgage-backed bonds, a security bought and sold among investors.
Historically, there is little correlation between the Fed Funds Rates and 30-year fixed rate mortgage rates throughout Michigan. Going back 20 years, the benchmark rates have been separated by as much as 5.29% and have been as near as 0.52%.
The spread has even gone negative, most recently in 1979 and 1981 — a period marked by high inflation.
Today, the separation between the Fed Funds Rate and the average, 30-year fixed rate mortgage rate is roughly 3.60%. Beginning at 12:30 PM ET, however, that spread is expected to change. The FOMC will make its statement to the press at that time, and will release its quarterly forecast to the markets.
As Wall Street reacts to the Fed’s press release and projections, mortgage rates will move.
Investors expect the Fed to vote the Fed Funds Rate unchanged from its current range near 0.000 percent, but are unsure of how the Fed will characterize the U.S. economy. If the Fed speaks optimistically on the economy, stock markets should rise and mortgage bonds should fall, driving mortgage rates higher.
Conversely, if the Fed shows concern for future economic growth, mortgage rates should drop. Either way, today figures to be volatile one for mortgage markets.
When mortgage markets get volatile, the safe play as a rate shopper is to lock your mortgage rate immediately. There too much risk in floating.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 at Amera Mortgage today.
The housing market finished 2011 with strength, and is carrying measurable momentum into 2012.
According to data from the National Association of REALTORS®, on a seasonally-adjusted, annualized basis, December’s Existing Home Sales climbed by 120,00 units overall from the month prior on its way to an 11-month high.
An “existing home” is a home that’s been previously occupied; that cannot be considered new construction.
After 4.61 million existing homes were sold in December, there are now just 2.38 million homes for sale nationwide. The last time the national home supply was this sparse was March 2005.
At today’s sales pace, the complete, national home inventory would be exhausted in 6.2 months — the fastest pace since before the recession. A 6.0-month supply is believed to represent a market in balance.
Foreclosures sold at an average discount of 22% to market value
Short sales sold at an average discount of 13% to market value
Together, foreclosures and short sales accounted for 32% of all home sales
Clearly, “distressed homes” remain a large part of the U.S. housing market.
Furthermore, in its report, the real estate trade group also noted that one-third of homes under contract to sell nationwide succumbed to contract failure last month. That’s up from 9% one year ago.
Contract failure occurs for a multitude of reasons, most notably homes appraising for less than the purchase price; the buyer’s failure to achieve a mortgage approval; and, insurmountable home inspection issues. December’s high failure rate underscores the importance of getting pre-approved as a buyer, and of buying homes in “good condition”.
For today’s home buyer in Michigan , December’s Existing Home Sales figures may be construed as a “buy signal”. Home supplies are dropping and buyer demand is rising. This is the basic recipe for higher home prices ahead.
If your 2012 plans call for buying a home, consider that home values throughout Michigan are expected to rise as the year progresses. The best values of the year may be the ones secured this winter.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 at Amera Mortgage today.
The outlook for the U.S. economy improved last week, taking the mortgage bond market with it. For the first time this year, conforming mortgage rates rose throughout Michigan from one week to the next.
In addition, European leaders moved closer to a final resolution on the Greek sovereign debt default situation.
Overall, the action gave investors reason for optimism in the U.S. economy, and economies abroad. This drew money away from the U.S. mortgage bond market, which caused mortgage rates to rise.
Freddie Mac reports the average 30-year fixed rate mortgage slipping 0.01 percentage points to 3.88% nationwide, with an accompanying 0.8 discount points and complete set of closing costs. These costs are slightly higher as compared to the week prior.
1 discount point is equal to one percent of the borrowed loan size.
Freddie Mac’s weekly mortgage rate survey puts the conforming 30-year fixed rate mortgage under 4 percent for 7 consecutive weeks.
This week, mortgage rates may rise; the week is anchored by a 2-day Federal Open Market Committee meeting. Whenever the FOMC meets, mortgage rates can be volatile.
The Ben Bernanke-led FOMC is not expected to raise the Fed Funds Rate from its current target range near 0.000 percent, but it’s not what the Fed does that can change mortgage rates as much as it is what the Fed says.
After its 2-day meeting concludes Wednesday, the FOMC will issue its customary statement to the markets, to be followed by a press conference led by Chairman Bernanke. Wall Street will watch the press release and conference for clues about the Fed’s next steps and its outlook for the U.S. economy.
If the Fed indicates that the economy is growing, mortgage rates in Lansing are likely to rise. Conversely, if the Fed indicates that the economy is slowing, mortgage rates are likely to fall.
Other factors influencing mortgage rates this week include the President’s annual State of the Union address (Tuesday), the Pending Home Sales Index (Wednesday) and New Homes Sales data for December (Thursday).
Mortgage rates remain low but may not stay that way. If you’re looking for the best rates of the year, this week may be your chance.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 at Amera Mortgage today.
When it comes to housing data, sometimes you have to look past the headlines. December’s Housing Starts data offers a terrific illustration of why.
Each month, the Census Bureau tallies Housing Starts for the month prior. A “housing start” is a home on which construction has started.
The Housing Starts report is separated by property type. There is a count for single-family homes; a count for 2-4 unit homes; and a count for buildings of 5 units or more, a category including apartments and condominiums.
In December, as reported by the government, Housing Starts fell 4 percent nationwide overall. This runs contrary to recent strength in housing and the story was quickly picked up by the press :
U.S. Housing Starts Fall More Than Forecast (BusinessWeek)
December Housing Starts Are Worse Than Expected (Fox Business)
Now, although these headlines are factually true, they’re also are a little bit misleading.
Housing Starts didfall 4 percent last month but that was for all Housing Starts, across all three property types. Data like this is somewhat irrelevant to home buyers in Michigan or anywhere else nationwide.
Few buyers purchase 2-4 unit homes, and almost nobody purchases an entire apartment building. Rather, it’s the Housing Starts reports’ “single-family” tally that matters because that’s the home type that the majority of home buyers purchase.
In December, for the fourth straight month, Single-Family Housing Starts increased.
Single-family housing starts climbed 4 percent last month to 470,000 units on a seasonally-adjusted, annualized basis. This is the highest number of Single-Family Housing Starts since April 2010 — the last month of last year’s home buyer tax credit.
The Single-Family Housing Starts data is the latest in a series of data that point to a housing rebound nationwide. New Home Sales, Existing Home Sales, Pending Home Sales and Homebuilder Confidence has each posted multi-month highs and all are poised for strong gains into 2012.
If you’re planning to buy a home in 2012, consider buying in between now and March rather than at some point later. Home prices — and mortgage rates- are likely to move higher.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 at Amera Mortgage today.
For the fourth straight month, the National Association of Homebuilders reports an increase in its Housing Market Index. The index climbed 4 points to 25 this month – its second four-point gain since October.
With home sales activity increasing across all four regions, the monthly HMI has now nearly doubled in value since June 2011.
The HMI is now at a 55-month high.
The Housing Market Index itself is a composite reading; the result of three home builder surveys sent by the National Association of Homebuilders to its members monthly. Home builders report back on current single-family home sales volume; projected single-family home sales volume for the next 6 months; and current buyer “foot traffic”.
The NAHB then results compiles the surveys into a single reading.
Current Single-Family Sales : 25 (+3 from December)
Projected Single-Family Sales : 29 (+3 from December)
Buyer Foot Traffic : 21 (+3 from December)
The Housing Market Index corroborates recent U.S. government data that suggests housing is mending in Michigan. Both Housing Starts and New Home Sales have out-performed expectations of late, it’s been shown, and the stock of new homes for sale nationwide is dwindling.
All of this, of course, is happening as demand from buyers heats up. Foot traffic through builder homes is higher than it’s been in more than 3 years, say the builders — a time period that includes the duration of the 2010 home buyer tax credit.
It’s no surprise, therefore, that builders expect a strong 2012.
Jobs data is improving, mortgage rates remain low, and housing momentum is building. For home buyers in Okemos , however, it may spell higher home prices ahead. Big demand and small supply creates scarcity and scarcity correlates to rising prices.
If you’re shopping new homes, the best “deal” may be the one you find today.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 at Amera Mortgage today.
Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.
In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.
The drop does not appear to be seasonal, either.
Last month’s foreclosure filings were down 20 percent from December 2010 with “foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011′s annual foreclosure rate was the lowest in 4 years.
One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona — four states typically associated with high rates of foreclosures — each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.
In fact, among the country’s top 10 states for foreclosure activity, nine showed an annual foreclosure filing reduction.
Only Delaware worsened.
It’s also noteworthy that just 4 states accounted for half of last month’s total foreclosure filings.
California : 25.8 percent of all foreclosure filings
Florida : 12.0 percent of all foreclosure filings
Michigan : 6.4 percent of all foreclosure filings
Illinois : 6.2 percent of all foreclosure filings
Foreclosures are heavily concentrated, in other words. By contrast, the last 1% of activity is spread across 14 states.
As a Michigan home buyer — first-timer or investor — foreclosures can be a great way to find value.
According to the National Association of REALTORS®, distressed homes typically sell at “deep discounts“ as compared to like, non-distressed homes. However, when you buy a foreclosure home from a bank, it’s different from buying a home from a “person”. Purchase contract negotiations are different and months may pass before your closing is approved.
If you’re buying foreclosure, therefore, seek the help of a professional real estate agent. Real estate agents have experience working in the process-heavy world of foreclosures and can help you come out ahead.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area. ePropertysites system is an amazing, simple to use marketing platform. Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable Real Estate Partner, Mortgage Broker, Mortgage Lender, Mortgage Company, or simply want a home loan and you live in Michigan, please call Don Grimes at (800) 249-4113 at Amera Mortgage today.
Mortgage markets gained last week, picking up momentum into the weekend. Global demand for mortgage-backed bonds helped push mortgage rates to new lows, and closing costs eased somewhat, too.
According to Freddie Mac’s weekly mortgage rate survey, the average 30-year fixed rate mortgage rate fell to 3.89% nationwide. In order to get access to 3.89% mortgage rates, Freddie Mac said, mortgage applicants should expect to pay a full set of closing costs plus 0.7 discount points.
1 discount point is equal to 1 percent of your loan size.
Loans with “low closing costs” or “no closing costs” will be at higher rates than Freddie Mac’s published, average rate.
The biggest reason why mortgage rates fell last week is because — once more — concerns over European sovereign debt resurfaced on Wall Street. This has been an ongoing story for more than a year, and one that won’t likely end soon.
Several Eurozone nations saw their respective credit ratings downgraded last week, a move that sparked safe haven buying of U.S. mortgage bonds. France was stripped of its top credit rating. Slovakia, Italy and Austria were each downgraded, too.
Markets were also influenced by a conflict between Greece’s creditor banks and the nation-state’s government. The breakdown in talks increases the likelihood of the Eurozone’s first sovereign default.
Meanwhile, domestically, in-line Retail Sales figures and rising consumer confidence helped to prop up the U.S. dollar, a move that’s linked to lower mortgage rates.
This week, the markets were closed for the federal holiday Monday, and re-open Tuesday without much data on which to trade. Several inflationary reports are set for release including the Producer Price Index and the Consumer Price Index; and, in housing-related data, we’ll see the Housing Starts report and Existing Home Sales figures for December.
Expect mortgage rates to follow the Eurozone story this week. Pessimism and weak data will be good for mortgage rates in Michigan and nationwide. Strength will lead mortgage rates higher.
If you’re still floating a mortgage rate or have otherwise yet to lock, mortgage rates are lower than they’ve been in history. It’s an ideal time to make aan interest rate commitment.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area.
ePropertysites is an amazing, simple to use marketing platform.Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.Don Grimes proudly serving the fine communities of Lansing, East Lansing, Okemos, Haslett, Holt, Dewitt, Grand Ledge, and the entire mid-Michigan market with top quality mortgage products and advice.
Whether you are looking for a reputable mortgage broker, mortgage lender, mortgage company, or simply want a home loan and you live in Michigan, call Amera Mortgage today. And If you are looking for a Home Loan Mortgage Advisor and a Marketeer, please call Don Grimes at (800) 249-4113.
Will your home gain value over the next 12 months? Nobody can know for sure, of course, but should recent housing trends continue, there’s concrete cause for optimism.
The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down.
Mortgage rates are down, too, and that’s good news for buyers in East Lansing. The combination of low rates and low prices has led home affordability to an all-time high. As you’ll hear in this 4-minute interview with NBC’s The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.
Some other notes from the interview include :
There are more buyers out looking for homes today, which leads to more sales
The housing market is expected to get gradually better, month-by-month, in 2012
Foreclosures will continue to be a big part of the housing market
With housing supplies shrinking, buyers throughout Michigan may find their best “deals” today — before the Spring Buying Season begins in February.
However, we can’t forget that housing markets are local — not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.
For accurate, up-to-date data on the housing market, talk with a local real estate agent.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area.
ePropertysites is an amazing, simple to use marketing platform.Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.
If you are looking for a Home Loan Mortgage Advisor and a Marketeer, please call Don Grimes at (800) 249-4113.
Consumer spending continues to rise nationwide, fueled by jobs growth and a rosier outlook for the U.S. economy. Unfortunately for mortgage rate shoppers |*STATE in % STATE**|, it may also lead to higher mortgage rates later this week.
Thursday morning, the Census Bureau will release its U.S. Retail Sales data for December. The report is expected to show an 18th consecutive monthly increase, with analysts projecting sales volume higher by 0.4 percent from November.
This would be double the increase from last month, which saw a 0.2 percent increase in Retail Sales.
The Retail Sales report tallies receipts collected by retail and food-service stores nationwide. When the sum of these receipts rise, it puts pressure on mortgage rates to do the same. The connection is straight-forward.
Retail Sales are the largest part of “consumer spending” and consumer spending accounts for the majority of the U.S. economy — up to 70 percent, by some estimates.
As the economy goes, so go mortgage rates.
Remember: today’s ultra-low mortgage rates have been partially fueled by weak economies — both domestic and abroad — going back 4 years. Stock markets have sold off as economies have faltered worldwide, leading investors to seek refuge in the relative safety of U.S.-backed mortgage bond market. The new-found demand for mortgage-backed bonds has helped drop mortgage rates to levels never seen in history.
When economic recovery is apparent, therefore, we should expect a mortgage rate reversal, and should expect for it to happen quickly. Stock markets should rise; bond markets should fall. Mortgage rates will climb. Rate shoppers will lose.
Last week’s strong jobs report sparked hope for the U.S. economy. If Thursday Retail Sales data reveals similar strength, the risk in “floating” your mortgage rate may be too great. The safer play is to lock your rate today.
The Retail Sales report will be released at 8:30 AM ET.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area.
ePropertysites is an amazing, simple to use marketing platform.Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.
If you are looking for a Home Loan Mortgage Advisor and a Marketeer, please call Don Grimes at (800) 249-4113.
Starting soon, nearly all home buyers and refinancing households throughout Michigan and nationwide will pay higher mortgage loan fees. Congress has made it law.
13 months ago, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress enacted a one-year cut to FICA payroll taxes.
FICA stands for Federal Insurance Contributions Act. Taxes collected under FICA fund such programs as Social Security and Medicare.
The stimulus plan temporarily lowered tax rates for salaried workers from 6.2% to 4.2%; and for self-employed persons from 12.4% to 10.4%. Effective January 1, 2012, “regular” tax rates were to return.
That is, until late-December 2011. In one of its last moves of the year, Congress passed a temporary, two-month extension to the payroll tax cut, extending it through February 29, 2012. The expected cost to the U.S. Treasury is $33 billion.
To recoup those costs, Congress has turned to Fannie Mae, Freddie Mac and the FHA.
Each entity has been ordered to collect news fees on each new mortgage is backs, and has been told to forward said fees to U.S. Treasury directly. There’s no “workaround” allowed or forgiveness applied — each new loan is subject to the payment.
The rules are listed on page 17 of the law’s final draft, in a section unambiguously titled “Title IV — Mortgage Fees and Premiums”.
According to the law :
Fannie Mae and Freddie Mac must collect an average fee of no less than 10 basis points (0.1%) per new loan
The FHA must raise its monthly mortgage insurance premiums 10 basis points for all new loans
The expected cost to consumers is no less than $10 monthly per $100,000 borrowed. Some analysts, however, expect Fannie Mae and Freddie Mac to collect more than is minimally required. This could add an additional $30-50 to your monthly mortgage payment per $100,000 borrowed.
Therefore, if you’ve been shopping for a home or for mortgage rates in the Greater Lansing Area , take advantage. Within days, lenders are expected to start collecting Payroll Tax Extension fees from mortgage applicants — a move that will cost you money.
Lock today to avoid the big fees. Save yourself money.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area.
ePropertysites is an amazing, simple to use marketing platform.Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.
If you are looking for a Home Loan Mortgage Advisor and a Marketeer, please call Don Grimes at (800) 249-4113.
Mortgage markets improved last week, pushing mortgage rates in Michigan lower for the second straight week. Conforming fixed and adjustable-rate mortgage cut new, all-time lows, and FHA mortgage rates did the same.
In a holiday-shortened trading week, stronger-than-expected U.S. economic data and ongoing weakness within Europe drove investors into the U.S. mortgage-backed bond market. When demand for bonds is high, mortgage rates improve.
The Refi Boom continues.
Since beginning their descent last February, mortgage rates have shed 114 basis points en route to reaching 3.91%, the current, “average”, 30-year fixed rate mortgage rate nationwide and a new all-time low, according to Freddie Mac and its mortgage market survey. If you’re among today’s home buyers or would-be refinancers, on a $200,000 mortgage, the 1.14% rate drop represents a monthly mortgage payment savings of $135 — $1,623 per year.
Larger loans save more, smaller loans save less.
This week, with little economic news set for release, mortgage rates are expected to take their cue from the 8 Federal Reserve members scheduled to speak in public, and from whatever news may bubble up from the Eurozone.
The Federal Reserve said it will communicate its vision for the U.S. economic more openly and more often so Wall Street will be watching the Fed members’ speeches this week, in search of clues about the Fed’s 2012 roadmap.
For example, there has been speculation that a new round of stimulus would be introduced at the Fed’s next meeting later this month. If, after listening to this week’s speeches, investors sense it will happen, mortgage rates may be susceptible to an increase in Lansing and everywhere else.
We’ll also be watching the Retail Sales report this week, due Thursday. Retail Sales are a reflection on consumer spending and consumer spending accounts for roughly 70% of the U.S. economy. If Retail Sales make gains, it may spark stock market gains at the expense of mortgage bonds.
This, too, would result in higher mortgage rates.
You can’t time the mortgage market, but with mortgage rates this low, it’s hard to go wrong. Talk with your loan officer to get a live rate quote.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area.
ePropertysites is an amazing, simple to use marketing platform.Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.
If you are looking for a Home Loan Mortgage Advisor and a Marketeer, please call Don Grimes at (800) 249-4113.
For buyers and refinancing households throughout Michigan , adjustable-rate mortgages are a relative bargain as compared to fixed-ones.
According to Freddie Mac’s weekly survey of more than 125 banks nationwide, |**CITY**| mortgage applicants electing for a conventional ARM over a conventional fixed-rate mortgage will save 105 basis points on their next mortgage rate.
“Conventional” loans are loans backed by Fannie Mae or Freddie Mac.
Today’s average, conventional 30-year fixed rate mortgage rate is 3.91% plus points and closing costs. The average rate for a comparable 5-year ARM is 2.86%, plus points and closing costs.
In other words, for every $100,000 borrowed, a conventional 5-year adjustable-rate mortgage will save you $58.15 per month, or $698 per year.
That’s a 12 percent savings just for choosing an ARM.
12 percent is a big figure that adds up over 5 years — especially for households that plan to sell within those first 60 months anyway. There is little sense in paying the mortgage rate premium for a 30-year fixed-rate mortgage when a 5-year ARM is perfectly suitable.
For the reason why adjustable-rate mortgages continue are so much lower than their fixed-rate counterparts, look no further than the U.S. economy. ARMs reflect Wall Street’s short-term economic expectations; whereas fixed-rate mortgages reflect medium- to long-term expectations.
In the short-term, analysts expect the U.S. economy to grow slowly, with low levels of inflation. This supports the U.S. dollar, the currency in which mortgage bonds are denominated. When the dollar is strong, demand for mortgage bonds tends to increase.
This supports lower interest rates.
Conversely, over the longer-term, inflation is expected to return, which devalues the dollar and everything paid in it (e.g.; mortgage-backed bonds). This is why inflation is linked to higher mortgage rates. When inflation is present in the economy, mortgage bonds lose value, driving mortgage rates up.
Adjustable-rate mortgages aren’t perfect for everyone, but in the right situation, they can be a big money-saver and a helpful tool for stretching a household budget. Given today’s rates, the money-saving potential is larger than usual.
Before you choose an ARM, discuss your options with your loan officer.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. He has partner up with ePropertysites. The number one real estate marketing company in the world, based here, in our own backyard, in the Lansing Area.
ePropertysites is an amazing, simple to use marketing platform.Basically It allows agents to "broadcast to the world" creating an ad for the internet about themselves and the properties. It is quick easy and effective and best of all "on hands training is provided".
So Don Grimes is not only able to offer her clients a first class financial service, but also a first rate marketing team to his agents.
If you are looking for a Home Loan Mortgage Advisor and a Marketeer, please call Don Grimes at (800) 249-4113.
If you’re floating a mortgage rate, or have yet to lock one in, today may be a good day to call your loan officer. Friday morning, the government releases its Non-Farm Payrolls report at 8:30 AM ET.
The Non-Farm Payrolls report is more commonly called the “jobs report“ and, lately, it’s been Wall Street’s domestic economic metric of choice. As jobs go, so go markets.
In the 12 months beginning November 2007, the economy shed 2.3 million on its way to losing more than 7 million jobs by the end of 2009.
It’s no coincidence that the stock market has been wayward. Jobs are a keystone in the U.S. economy and the connection between jobs and growth is straight-forward :
Workers spend more than non-workers and consumer spending is the economy’s largest single component
Workers pay more taxes to governments and, when governments have money, they build and spend on projects
Additional consumer and government spending creates revenue for businesses which, in turn, hire more workers.
It’s a self-reinforcing cycle. More employees begets more employees.
As a rate shopper in Michigan , this is an important understanding. Job loss was, in part, behind the big drop in mortgage rates since 2007. A weak economy drives investors away from equities and into safer securities such as mortgage bonds (which are backed by the U.S. government).
The excess demand causes mortgage rates to drop and that’s exactly what we’ve seen. Since late-2007, mortgage rates have been in decline.
In the first 11 months of 2011, though, 1.5 million people went back to work; the economy showed signs of shoring up and economic optimism is returning. Mortgage markets have temporarily ceded to the Eurozone, but with one more strong jobs report to close out the year, momentum could tip and stock markets could roll.
If that happens, mortgage rates will rise. Maybe by a lot.
This is why Friday’s Non-Farm Payrolls data is so important. Economists expect that 150,000 new jobs were created in December. If the government’s actual number is larger than that, prepare for higher mortgage rates.
Conversely, if job creation falls short of 150,000, mortgage rates may fall.
If the prospect of rising mortgage rates makes you nervous, remove your nerves from the equation. Call your loan officer and lock your rate ahead of Friday’s Non-Farm Payrolls release.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. If you are looking for a Home Loan Mortgage Advisor, please call Don Grimes at (800) 249-4113.
As the new year begins, there are no shortage of stories telling us what to expect in 2012. Housing finished 2011 with momentum and mortgage rates closed at the lowest rates of all time.
Some expect those trends to continue through the first quarter and beyond. Others expect a rapid reversal.
Who’s right and who’s wrong? A quick look through the newspapers, websites and business television programs reveals “experts” with opposing, well-delivered arguments views. It’s tough to know who to believe.
For example, here are some “on-the-record” predictions for 2012 :
The issue for buyers, seller, and would-be refinancers in Lansing and nationwide is that it can be a challenge to separate a “prediction” from fact at times.
When an argument is made on the pages of a respected newspaper or website, or is presented on CNBC or Bloomberg by a well-dressed, well-spoken industry insider, we’re inclined to believe what we read and hear.
This is human nature.
However, we must force ourselves to remember that any analysis about the future — whether it’s housing-related, mortgage-related, or something else — are based on a combination of past events and personal opinion.
Predictions are guesses about what might come next — nothing more.
For example, at the start of 2009, few people expected the 30-year fixed rate mortgage to stay below 6 percent, but it did. Then, at the start of 2010, few people expected the 30-year fixed rate mortgage to stay below 5 percent, but it did.
All we can know for certain about today’s market is that both mortgage rates and home values are low, creating favorable home-buying conditions in and around Michigan State University and nationwide.
At that start of last year, few people expected mortgage rates to even reach 4 percent. Today, rates “with points” price in the 3s.
What 2012 has in store we just can’t know.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. If you are looking for a Home Loan Mortgage Advisor, please call Don Grimes at (800) 249-4113.
Low home prices and mortgage rates have combined to push home affordability to record levels nationwide. Home buyers are taking advantage.
The Pending Home Sales Index rose 7 percent in November to rise to its highest level since April 2010, the last month of last year’s home buyer tax credit program.
The Pending Home Sales Index is published monthly by the National Association of REALTORS®. It measures homes under contract nationwide, but not yet “sold”.
In this way, the Pending Home Sales Index is different from other housing market indicators. It’s a “forward-looking” figure; a predictor of future home sales. According to the National Association of REALTORS®, more than 80% of homes under contract close within 60 days.
By contrast, housing data such as the Existing Home Sales report and the New Home Sales report “look back”.
November marks the second straight month of Pending Home Sales Index improvement. The housing market metric made big gains of 10 percent in October 2011, as well.
On a regional basis, each part of the country showed an increase in homes under contract.
Northeast Region: +8.1 percent from October 2011
Midwest Region : +3.3 percent from October 2011
South Region : +4.3 percent from October 2011
West Region : +14.9 percent from October 2011
However, here in East Lansing, we must discount the value of even the regional data, somewhat. Like else in real estate, the volume of homes going under contract vary by locality.
Throughout the West Region, for example, the region in which pending home sales increased the most from October, there are nearly a dozen states. Undoubtedly, some of those states performed better than others in terms of “homes under contract”, but we don’t have an indication of which states those were.
In addition, within each state, every city, town, and neighborhood realized its own unique market in November, and produced its own sales statistics.
For buyers and sellers throughout Michigan and the country, therefore, it’s more important to watch data on a local level than on a national one. Reports like the Pending Home Sales Index are helpful in showing national trends, but as an individual, what you need are local trends.
For local real estate data, be sure to ask your agent.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. If you are looking for a Home Loan Mortgage Advisor, please call Don Grimes at (800) 249-4113.
The government confirms what the private-sector Case-Shiller Index reported yesterday. Nationwide, average home values slipped in October.
The Federal Home Finance Agency’s Home Price Index shows home values down 0.2% on a monthly, seasonally-adjusted basis. October marks just the second time since April that home values fell month-over-month.
The Case-Shiller Index 20-City Composite showed values down 0.7 percent from September to October.
As a home buyer in Okemos , it’s easy to look at these numbers and think housing markets are down. Ultimately, that may prove true. However, before we take the FHFA’s October Home Price Index at face value, we have to consider the report’s flaws.
There are three of them — and they’re glaring. As we address them, it becomes clear that the Home Price Index — like the Case-Shiller Index — is of little use to everyday buyers and sellers in places like Michigan State University.
First, the FHFA Home Price Index only tracks home values for homes backed by Fannie Mae or Freddie Mac mortgages. This means that homes backed by the FHA, for example, are specifically not computed in the monthly Home Price Index.
In 2007, this was not as big of an issue as it is today. in 2007, the FHA insured just 4 percent of the housing market. Today, the FHA is estimated to have more than one-third of the overall housing market.
This means that one-third of all home sales are excluded from the HPI — a huge exclusion.
Second, the FHFA Home Price Index excludes new home sales and cash purchases, accounting for home resales backed by mortgages only. New home sales is a growing part of the market, and cash sales topped 29 percent in October 2011.
Third, the Home Price Index is on a 60-day delay. The above report is for homes that closed in October. It’s nearly January now. Market momentum is different now. Existing Home Sales and New Home Sales have been rising; homebuilder confidence is up; Housing Starts are showing strength. In addition, the Pending Home Sales Index points to a strong year-end.
The Home Price Index doesn’t capture this news. It’s reporting on expired market conditions instead.
For local, up-to-the-minute housing market data, skip past the national data. You’ll get better, more relevant facts from a local real estate agent.
Since peaking in April 2007, the FHFA’s Home Price Index is off 18.3 percent.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. If you are looking for a Home Loan Mortgage Advisor, please call Don Grimes at (800) 249-4113.
New home inventory is approaching bull market territory.
According to the Census Bureau, the number of new homes sold rose 2 percent in November. On a seasonally-adjusted, annualized basis, home buyers bought 315,000 newly-built homes last month.
November’s New Home Sales data marks the 4th straight month of rising sales volume, lifting the housing-market metric to a 7-month high, and adding to the housing market’s recent show of strength.
Last week, we learned that Existing Home Sales also climbed in November.
The big story in the New Home Sales report, though, is the remaining new home supply nationwide.
With just 158,000 homes “on the market” and the pace of home sales hastening, the complete, national inventory of “new homes” would now be sold in just 6.0 months, a 0.2-month improvement from October. This is the quickest home sales pace in nearly 6 years for the new construction market.
It’s even faster than in April 2010 — the buyer-deadline month of last year’s federal home buyer tax credit.
Home builders expect the trend to continue, too. Buyer foot traffic is on the rise and builders have a strong outlook for the next 6 months.
It’s an unsettling series of developments for today’s East Lansing home buyers. As home supplies drop and builders gain confidence, the ability of an buyer to negotiate for price reduction and/or upgrades shrinks.
If you’re a home buyer in search of new construction, therefore, consider that the best new construction “deals” of the next 12 months may be the ones you find today.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. If you are looking for a Home Loan Mortgage Advisor, please call Don Grimes at (800) 249-4113.
Mortgage markets worsened last week on renewed optimism from the Eurozone, additional evidence of a U.S. economic recovery, and ongoing strength in housing.
The action sparked a stock market rally at the expense of mortgage bonds, sending conforming and FHA mortgage rates meaningfully higher for the first time in more than 2 months.
Markets closed early Friday and remained closed Monday. When they re-open today, conforming mortgage rates will already have bounced off last week’s new, all-time lows.
As reported by Freddie Mac’s weekly mortgage rate survey, the average 30-year fixed rate mortgage fell to 3.91 percent nationwide, with an accompanying 0.7 discount points plus closing costs. 1 discount point is equal to 1 percent of your loan size such that 1 discount point on a $100,000 loan is equal to $1,000.
It’s not just the conventional 30-year fixed that made new lows last week, either. All of Freddie Mac’s reported rates fell to new, all-time lows.
30-year fixed : 3.91% with 0.7 discount points
15-year fixed : 3.21% with 0.8 discount points
5-year ARM : 2.85% with 0.6 discount points
These rates are no longer valid, however. FHA mortgage rates rose slightly last week, too.
This week, mortgage rates will be more volatile than usual. There isn’t much economic data on which to trade, and it’s a holiday-shortened week (again). Look for geopolitics and momentum to nudge markets forward, therefore — a potentially bad combination for today’s rate shoppers. There is very little room for mortgage rates to fall, but lots of room for them to rise.
If the stock market rallies to close 2011, mortgage rates will rise right on with it.
For now, rates remain historically low. If you’ve been shopping for a mortgage — waiting for rates to fall — this last week of the year may be your last chance at sub-4 percent, fixed-rate mortgage rates. Don’t wait too long or you might miss it.
It’s a good time to execute on a rate lock.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. If you are looking for a Home Loan Mortgage Advisor, please call Don Grimes at (800) 249-4113.
Time is running out to boost to your 2011 federal tax refund. All you have to do is make your January 2012 mortgage payment while it’s still December.
It’s a simple tax strategy that works because of how mortgage interest is paid, and of how the U.S. tax code is written.
Different from rent which is paid for the month ahead (i.e. “you’re paying January’s rent”), mortgage payments are made only after mortgage interest has accrued (i.e. “you’re paying for money you’ve already borrowed from the bank”).
This is called “paying interest in arrears” and U.S. tax code states that the mortgage interest is tax-deductible in its year paid, subject to limitations.
By making the January 2012 mortgage payment in December 2011, therefore, homeowners who itemize their on their tax returns can apply their January mortgage payment’s interest portion to their 2011′s tax returns.
The alternative is to pay the mortgage on schedule, and wait for April 15, 2013 to claim the credit.
If you choose to pre-pay your mortgage and typically send your payment via USPS, give your check ample time to be delivered to your lender, and processed. Mail your check no later than Saturday, December 24.
For East Lansing homeowners that pay electronically, the process is simpler. Edit your online bill pay program to have your mortgage payment post no later than Thursday, December 29.
Make note, however. Not all mortgage interest is eligible for tax-deductibility, and not all homeowners throughout the state of Michigan who pay mortgage interest should itemize said interest on their tax returns.
Before prepaying on your mortgage, ask your tax professional for advice.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market for over 25 years and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. If you are looking for a Home Loan Mortgage Advisor, please call Don Grimes at (800) 249-4113.
Home resales moved to a 10-month high in November, the latest in a series of strong showings from the housing sector.
According to the National Association of REALTORS®, November’s Existing Home Sales rose to a seasonally-adjusted, annualized 4.42 million units nationwide — a 4 percent climb from October 2011.
An “existing home” is a home that has been previously occupied and cannot be categorized as new construction.
Home buyers and sellers throughout East Lansing should take note of November’s numbers because — behind the headlines — there’s a series of statistics that foretell higher home prices ahead.
First, the total number of homes for sale nationwide dipped to 2.58 million, an 18% reduction from November 2010 and represents the fewest number of homes for sale since February 2007.
At the current sales pace, the complete home resale inventory would be sold in 7.0 months.
And, second, the real estate trade group reports that 33% of all homes under contract “failed” for some reason last month.
Contract failures can occur because of mortgage denials in underwriting; home inspection issues; and homes appraising for less than their respective purchase prices.
In other words, despite a reduction in the number of homes for sale, and a rash of failed contracts, Existing Home Sales volume is still on the rise.
Broken-down by buyer-type, here’s to whom home sellers were selling in November :
First-time buyers : 35% of home resales, up from 34% in October 2011
Repeat buyers : 46% of home resales, down from 48% in October 2011
Investor buyers : 19% of home resales, up from 18% in October 2011
Given high demand for home resales and shrinking home supplies, we should expect that Michigan State University home prices will rise through December 2011 and into early-2012, at least. Recent Housing Starts data supports this notion.
Thankfully, mortgage rates remain low. Low mortgage rates help keep homes affordable.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit. If you are looking for a Home Loan Mortgage Advisor, please call Don Grimes at (800) 249-4113.
The new construction housing market continues to show strength across the country.
According to the U.S. Census Bureau, Single-Family Housing Starts rose to 447,000 units on a seasonally-adjusted, annualized basis in November — a 2 percent increase from October.
A “Housing Start” is defined as breaking ground on new home construction.
November’s figures mark the third straight month of Single-Family Housing Starts gains. The new construction metric is now 15 percent above its all-time low, set in February of this year.
None of this should be a surprise to new home buyers in Lansing.
Housing data has been trending better since September with sales volumes rising and home inventories falling. Basic economics tells us that home prices should soon rise.
The good news is that low mortgage rates should keep homes affordable.
Since mid-November, the average, conventional 30-year fixed rate mortgage has hovered near 4.000% nationwide with an accompanying 0.7 discount points plus closing costs. 1 discount point equals one percent of your loan size. This is down from near 4.500% six months ago, and the drop has made a big impact on home affordability.
June 2011 : $200,000 mortgage costs $1,013.37 per month
December 2011 : $200,000 mortgage costs $954.83 per month
Meanwhile, the market shows little signs of slowing down. Building Permits are on the rise, too.
Permits for single-family homes rose to their highest levels of year in November and 89 percent of those homes will start construction within 60 days. This means that Single-Family Housing Starts should stay strong through the early part of 2012, and into the spring.
If you’re planning to buy new construction in Michigan , therefore, talk to your real estate agent soon and consider moving up your time frame. With mortgage rates low and next year’s buying season approaching, you may find that the best “deals” will come within the next few weeks only.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
In another good sign for the housing market, today’s home builders believe that the housing market has turned a corner.
For the third straight month, the Housing Market Index — a home builder confidence survey from the National Association of Homebuilders — reported strong monthly gains.
December’s Housing Market Index climbed 2 points to 21 in December after a downward revision to last month’s results. The index is now up seven points since September 2011, and sits at a 19-month high.
When home builder confidence reads 50 or better, it reflects favorable conditions in the single-family new home market. Readings below 50 reflect unfavorable conditions.
The Housing Market Index has not crossed 50 since April 2006.
The HMI itself is actually a composite reading; the result of three related home builder surveys. The National Association of Homebuilders asks its members about their current single-family home sales volume; their projected single-family home sales volume for the next 6 months; and their current buyer “foot traffic”.
The results are compiled into the single Housing Market Index tally.
Current Single-Family Sales : 22 (+2 from November)
Projected Single-Family Sales : 26 (+1 from November)
Buyer Foot Traffic : 18 (+3 from November)
These results support the recent New Home Sales and Housing Starts data, both of which show an increase in single-family sales, and a decrease in new home housing supply.
When demand rises and supplies fall, home prices climb.
It’s also noteworthy that the Housing Market Index put buyer foot traffic at newly-built homes at its highest level since May 2008. With even more buyers expected to enter the market, new home prices are expected to rise across Lansing in 2012 — especially in the face of shrinking home supplies.
For now, though, with home prices stable and mortgage rates low, buyers can grab “a deal”. 60 days forward, though, may be too late.
The Spring Buying Season unofficially starts February 6, 2012.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Mortgage markets improved last week, but by a slight amount only; not enough to move conventional mortgage rates in Michigan in any significant manner.
Wall Street watched as Eurozone leaders expressed little willingness to increase aid programs within the region, and as the Federal Reserve voted against new economic stimulus for the United States. The Fed Funds Rate remains near 0.000 percent and QE3 was not introduced.
Investors had expected the opposite outcome in both scenarios.
In most weeks, these stories would have led mortgage rates lower. There was, however, a fair amount of data suggesting that the U.S. economy is in recovery, and that tempered any major shifts in markets.
Manufacturing data proved to be strong
Inflation numbers are heating up
Jobless claims continue to drop, week-to-week
In addition, in its last meeting of the year, the Federal Reserve specifically mentioned that the economy has been “expanding moderately”.
These are all good signs for the future of the U.S. economy. Unfortunately, for mortgage rate shoppers and would-be home buyers, it may mean higher mortgage rates ahead.
Since early-November, mortgage rates have idled, moving within a range of less than 2 basis points and centered on 3.99%. According to Freddie Mac, this week’s average 30-year fixed rate mortgage fell to 3.94% which, at first glance, appears to be a “dip”.
To get access to that rate, however, requires more discount points as compared to prior weeks.
This week’s 3.94% with its accompanying 0.8 discount points is the financial equivalent of last week’s 3.99% with its accompanying 0.7 discount points. Going further, last week’s rates are actually less expensive to mortgage applicants for the first 3 years of a loan because the closing costs are so much lower.
So, given global economic conditions and the mortgage bond market’s status as a “safe market”, the failure of mortgage rates to fall suggests that this may be as low as mortgage rates get. It’s time to look at locking in.
This week is a holiday-shortened week. Markets will close early-Friday and volume is expected to be thin. Therefore, expect exaggerated movements in rates. There are 3 releases related to housing (Housing Starts, Existing Home Sales, New Home Sales) and a consumer sentiment release.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
As mortgage rates drop, so do housing payments. It’s a good time to consider refinancing your home, or making an offer on a new one. Mortgage payment affordability has never been so high in history.
According to Freddie Mac, the average 30-year fixed rate mortgage rate is now 3.94 percent – an all-time low – with an accompanying 0.8 discount points. This means that in order to get access to the 3.94 percent rate, Okemos homeowners and home buyers should expect to pay a loan fee equal to 0.8% of the borrowed amount, plus “normal” closing costs.
Last week, the average 30-year fixed rate mortgage rate was 3.99 percent with an accompanying 0.7 discount points.
Mortgage rates in Michigan have been in decline for most of the year. Since peaking in early-February, the average home owner’s principal + interest payment on a 30-year fixed rate mortgage had now dropped by 12.2 percent.
Here is how mortgage payments compare, then and now, not accounting for your individual tax-and-insurance escrow :
February 10, 2011 : Payment of $539.88 per $100,000 borrowed
December 15, 2011 : Payment of $473.96 per $100,000 borrowed
For existing homeowners, the dramatic drop in payments is reason to reach out to your loan officer. A refinance could save you tens of thousands of dollars over the life of your loan — especially if you chose to refinance your mortgage into a 15-year program.
For home buyers, today’s low rates present an interesting opportunity.
Mortgage rates are the key factor in determining your monthly housing payment so, with average mortgage rates below 4 percent, it’s no wonder home affordability is cresting. However, the housing market is showing signs of recovery. Home supplies are dwindling, buyer demand is rising, and the economy appears to be mending.
Home prices are expected to rise in 2012 and, as they do, they’ll take housing payments with them. The best time to buy a home may be now; before the recovery completes.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Foreclosure activity continues to concentrate over just a few states.
According to foreclosure-tracker RealtyTrac, November’s foreclosure filings fell 3 percent as compared to October, and 14 percent from November 2010.
“Foreclosure filing” is a catch-all term for the various “action steps” throughout the foreclosure process. The grouping comprises default notices, scheduled home auctions, and bank repossessions.
As in most months, though, foreclosure activity remains concentrated by state. More than half of last month’s bank repossessions can be traced to just 6 states.
California : 14.8% of all bank repossessions
Florida : 12.7% of all bank repossessions
Texas : 7.0% of all bank repossessions
Georgia : 6.9% of all bank repossessions
Arizona : 6.7% of all bank repossessions
Michigan : 6.3% of all bank repossessions
Meanwhile, with just 5 repossessions, South Dakota topped the list of states with the fewest bank repossessions in November. The Mount Rushmore State accounted for just 0.009% of REO nationwide in a month in which bank repossessions dropped to a 44-month low point across the United States.
The drop in REO is coming at a tough time for today’s Lansing home buyers. Distressed properties are in high demand — mostly because they sell at steep discounts.
According to the National Association of REALTORS®, distressed homes accounted for 28 percent of all home sales in October. As fewer bank-owned homes become available, though, there will be fewer “deals” to be had.
Especially as the broader housing market continues to signal its recovery.
If you plan to buy a bank-owned foreclosed property, do your research first. As supplies drop, the price for foreclosed homes throughout Michigan relative to non-distressed homes may rise, rendering REO properties less of a relative “value”.
Before you write a contract, therefore, talk with a licensed real estate agent. There’s plenty of foreclosure data available online but, when it’s time to buy, you should have an experienced agent on your side.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
BusinessWeek recently released its 2011 America’s Best Place to Raise a Family rankings. College-town Blacksburg, Virginia took top honors, breaking a 2-year win streak for the Chicago, Illinois region.
In 2009, suburban Mount Prospect, Illinois placed first. Last year, it was Tinley Park, Illinois.
The BusinessWeek report employs data from real estate information firm Onboard Informatics to make its rankings, compiling data across categories such as education, crime, and jobs plus access to parks and affordable homes. All selections are limited by population; all selections are home to 50,000 residents or fewer. Median incomes are within 20 percent — plus or minus — of the state’s median income levels.
BusinessWeek names one winner in each state. The winners in the 10 most populous states and their nearest “big city” are listed below
California : East San Gabriel (Los Angeles)
Texas : Wells Branch (Austin)
New York : Hampton Manor (Albany)
Florida : Niceville (Fort Walton Beach)
Illinois : Morton Grove (Chicago)
Pennsylvania : Cecil-Bishop (Pittsburgh)
Ohio : St. Henry (Dayton)
Michigan : Spring Arbor (Jackson)
Georgia : Hoschton (Atlanta)
North Carolina : Tryon (Spartanburg, SC)
The winners in all 50 states can be found on the BusinessWeek website.
Rankings like the BusinessWeek America’s Best Place to Raise a Family can be useful for home buyers in Okemos , but like everything in real estate, statistics do not apply to every home equally. Even within the “best towns”, there are areas in which school systems are better, crime figures are lower, and amenities are more plentiful.
Therefore, before you make the decision to buy a home, talk with a real estate agent who has local market knowledge. It’s the most effective means to get data that matters to you.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Mortgage markets were mostly unchanged for the 6th consecutive week last week as Wall Street’s uncertainty regarding the future of U.S. and global economies remain.
Mortgage bonds made gains made through the early part of the week, which caused mortgage rates in Michigan to drop Monday through Wednesday afternoon. Those gains were erased, however, as 23 of 27 Euro leaders reached agreement on fiscal coordination and budget planning, sparking optimism for the future of the Eurozone, in general.
Mortgage rates rose Thursday and Friday.
This week, the momentum may continue. The main story we’ll be watching is the Federal Open Market Committee’s Tuesday meeting — its 8th scheduled meeting of the year and its last until 2012.
When the Fed meets, mortgage rates are often volatile.
At its meeting, the FOMC is expected to vote the Fed Funds Rate unchanged within its current range near zero percent. However, it won’t be the Fed’s vote on the Fed Funds Rate that changes markets. Wall Street is keyed in to two other elements, instead.
The first element is the verbiage of the FOMC’s press release to markets. Issued upon adjournment, the FOMC’s press release identifies strengths and weaknesses in the U.S. economy, and offers an outlook for the future plus potential threats. The “tone” of the press release can change how mortgage bonds trade.
If the Fed describes an economy in recovery with few threat to growth, mortgage rates are likely to rise post-FOMC. By contrast, if the Fed says the economy has slowed, mortgage rates should fall.
The second element on which Wall Street is focused is the likelihood of new, Fed-led economic stimulus. Should the Federal Reserve modify existing support programs, or introduce new ones, mortgage rates are sure to shift. Unfortunately, we can’t know in which direction — it will depend on the size of the program and its expected impact on the U.S. economy.
The Fed adjourns Tuesday at 2:15 PM ET.
Beyond the Fed, there is other rate-moving news, too, including Tuesday’s Retail Sales report, Thursday’s Producer Price Index, and Friday’s Consumer Price Index. Each has the capacity to change mortgage rates throughout Okemos so if you’re floating a mortgage rate, it may be a good time to lock one in.
Freddie Mac reports the average 30-year fixed rate mortgage at 3.99% with 0.7 discount points, plus closing costs.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
For as low as 30-year fixed rate mortgage rates are in Michigan today, 15-year fixed rate mortgage rates are even lower.
According to Freddie Mac’s weekly mortgage rate survey, the average 15-year fixed rate mortgage rate is now 3.27% nationwide with an accompanying 0.8 discount points. 1 discount point is a closing cost equal to 1 percent of your loan size.
The current 15-year fixed rate reading is just one tick above the all-time, 15-year fixed rate mortgage low of 3.26% set in October 2011.
If you’ve ever thought of “going 15″, it’s a terrific time to talk to your lender.
The primary benefit of using a 15-year fixed rate mortgage as opposed to a 30-year fixed rate one is that a 15-year fixed rate mortgage dramatically cuts the long-term interest costs of your loan. The downside is that monthly payments are relatively large.
At today’s mortgage rates, per $100,000 borrowed :
15-year fixed rate mortgage : $704 principal + interest monthly
30-year fixed rate mortgage : $477 principal + interest monthly
So, for homeowners opting for a 15-year fixed rate mortgage, the monthly principal + interest payments will be 48% higher as compared to a 30-year fixed rate mortgage of the same loan size. Long-term, however, because the 15-year fixed rate mortgage interest rate is lower and because it pays off in half the time of a 30-year loan, a homeowner will save $45,000 in interest costs per $100,000 borrowed.
$45,000 per $100,000 borrowed is a huge amount of savings. It’s monies that can be used for college tuition, home improvement projects, retirement savings, or anything else.
That said, the 15-year fixed rate mortgage is not ideal for everyone.
Because it requires higher monthly payments, a 15-year fixed rate mortgage may add stress to your household budget. Furthermore, once you commit to a 15-year loan term with your lender, you can’t revert back to a 30-year loan term without a refinance and refinances can be costly.
Therefore, be sure of yourself when selecting a 15-year fixed rate loan. The rewards are great, but the risks can be, too.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
As a homeowner in East Lansing , your fiscal responsibility extends beyond just making mortgage payments. You must also pay your home’s real estate taxes as they come due, as well as your homeowners insurance policy premiums.
Failure to pay real estate taxes can result in foreclosure. Failure to insure your home is a breach of your mortgage loan terms.
There are two methods by which you can pay your real estate tax and homeowners insurance bills.
The first method is to pay your taxes and insurance as the bills come due, usually semi-annually. Depending on your home’s tax bill size and the cost to insure your home, these payments can feel quite large — especially if you’ve failed to budget for them properly.
The second method of paying your taxes and insurance is to give your lender the right to pay them on your behalf, a process known as “escrowing for taxes and insurance”.
When you escrow your real estate taxes and homeowners insurance, you pay a portion of your annual obligation to your lender each month, which your lender then holds in a special account for you, and disperses to your taxing entities and insurance company as needed. Lenders prefer that homeowners escrow taxes and insurance because, in doing so, the lender is assured that tax bills remain current and that homes stay insured.
Want a discount on your next mortgage rate? Tell your lender that you’re willing to escrow.
To help calculate your monthly escrow payment to your lender, do the following :
Find your home’s annual real estate tax bill
Find your home’s annual homeowners insurance premium
Add the two figures and divide by 12 months in a year
The quotient is your monthly “escrow”; the extra payment you’ll make to your lender each month along with your regularly scheduled principal + interest payment. Then, when your tax bills and insurance premiums come due, your lender will make sure the payments are made on your behalf.
If you’re unsure whether escrowing is right for you, talk to your loan officer and/or financial planner. There are valid reasons to choose either path.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage is 4.00 percent nationwide — roughly the same rate as it’s been for 5 weeks.
During that times, rates have ranged between 3.97 and 4.02 percent with an accompanying 0.7 discount points, plus “typical” closing costs. Closing costs vary by state and 1 discount point is equal to 1 percent of your loan size.
In other words, to get the weekly, published Freddie Mac rate, borrowers in Michigan should expect to pay a complete set of fees to their respective lenders. The larger the loan, the higher the costs. “Low-fee” and “no-fee” loans are available, too — typically in exchange for a slightly rate.
A breakdown of the Freddie Mac survey shows that interest rates and discount points vary by region. Typically, states in the West Region offer the lowest rates but with the highest costs. East Region states work in reverse; rates are often highest but the accompanying points are fewest.
North Central Region : 3.97% with 0.7 discount points
Southwest Region : 4.04% with 0.7 discount points
What’s most notable, though, is that in all 4 regions, rates are well below their 2011 highs. Since mid-April, mortgage rates have been in descent, dropping for 5 consecutive months before reaching to their current, “rock-bottom” levels in early-November.
Since then, however, rates have idled and the forces that combined to make rates low throughout East Lansing are subsiding. The U.S. economy is showing signs of a rebirth; the Eurozone is edging closer to solvency; and the housing market is recovering.
So, if you’ve been wondering whether now is a good time to refinance, or whether higher rates will harm home affordability, the answer is yes. Get in touch with your loan officer to review your home loan options because, looking ahead to 2012, mortgage rates look poised to rise.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
The Federal Open Market Committee released its November 2011 meeting minutes, revealing a Fed split on whether new stimulus is needed for the U.S. economy.
The Fed Minutes is published 8 times annually, three weeks after each scheduled Federal Open Market Committee meeting. It’s the official record of the meeting’s policy-shaping debates and dialogues.
The Fed Minutes is the lengthier companion piece to the FOMC’s more well-known, post-meeting press release.
As compared to press release which is concise and focused at 492 words, the Fed Minutes is comprehensive and broad, totalling 7,682 words over 11 pages, complete with charts.
The November minutes reveal Fed opinions on a variety of economic issues :
On employment : Unemployment will gradually decline through 2014
On housing : The market remains depressed. Foreclosures are “holding back” growth.
On rates : The Fed Funds Rate should remain low until mid-2013
There was also discussion about the government’s revamped HARP program, and how it should help more homeowners get access to low mortgage rates. The Fed sees this as a positive for housing, and for the economy.
There was little in November’s Fed Minutes to surprise Wall Street, however, the Fed did discuss the possibility of new market stimulus, a topic Wall Street expects the FOMC to address next week at its last scheduled meeting of 2011.
Should the Fed introduce new market stimulus next week, and should it arrive in the form of additional mortgage bond purchases, expect for mortgage rates to fall across Michigan and nationwide. If the Fed declines new stimulus, mortgage rates should rise.
The FOMC meets Tuesday, December 13, 2012.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Mortgage markets made little change last week for the fifth time in as many weeks.
As Wall Street watched both the Eurozone and the U.S. regain their respective footing, expectations for a new Fed-led stimulus increased, which prevented mortgage rates from rising.
According to Freddie Mac, the average 30-year fixed rate conforming mortgage rose just 2 basis points last week to 4.00% nationwide with an accompanying 0.7 discount points.
1 discount point is equal to 1 percent of your loan size.
For every $100,000 borrowed at 4.00 percent, therefore, today’s Michigan mortgage applicant should expect to pay $700 in “points”. Mortgage rates for “zero-point loans” are higher than Freddie Mac’s published, average value.
This week, with few economic releases set for release, last week’s big stories should carry over into the current one — the biggest of which was a worldwide, coordinated central bank effort to increase system liquidity.
The European Central Bank, Bank of England and U.S. Federal Reserve were joined by the central banks of Japan, Canada and Switzerland in the effort. Stock markets rallied on the news.
Another of last week’s big stories was the sharp drop in the U.S. Unemployment Rate.
After hovering near nine percent since April, the Unemployment Rate broke out of range, dropping to to 8.6% in November. This is the lowest national Unemployment Rate since March 2009, a milestone achieved via the combination of new jobs created (+192,000 in November with revisions) plus a smaller U.S. workforce.
Lastly, last week’s New Home Sales and Pending Home Sales Index releases support the growing belief that the U.S. housing market is in recovery. Both reports showed strong growth for October, corroborating what home builders have been saying — the housing market is improving and buyer ranks are growing.
Home supplies are lower in many U.S. markets.
This week, rate shoppers in Okemos should be on alert. Market momentum changes quickly, and rates are currently anchored by the expectation of new Federal Reserve stimulus. The Fed meets December 13, 2011. As that date approaches, expectations could change, causing rates to rise.
Mortgage rates remain near all-time lows. It’s a good time to lock a rate with your lender.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
If you’re waiting for home prices to reach its bottom, you may have missed your window.
After 3 consecutive months of easing, the Pending Home Sales Index jumped 10 percent in October, lending credence to the belief that housing is in recovery.
The Pending Home Sales Index is a monthly publication from the National Association of REALTORS®. It measures the number of homes under contract to sell nationwide. October’s reading is the highest for all of 2011, and the second-highest dating back to April 2010.
April 2010 was the last month of the last year’s federal home buyer tax credit.
For buyers and sellers in Okemos and nationwide, the Pending Home Sales Index is a housing metric worth watching. Different from the Existing Home Sales and New Home Sales reports which report on “the past”, the Pending Home Sales Index is a forward-looking housing market indicator.
According to the National Association of REALTORS®, 80% of homes under contract close within 2 months.
The majority of the rest close within Months 3 and 4.
The spike in October’s Pending Home Sales Index, therefore, foretells a strong Existing Home Sales report for November and December. Not that we should be surprised! Home builders have been telling us for weeks that the market is strengthening, and that home supplies are at multi-year lows.
The only wild-card is the market’s out-sized contract failure rate. One in three pending home sales failed to close in October — nearly double the rate of the month prior and 4 times the rate of October 2010. Should this high failure rate continue, the Pending Home Sales Index’s role as a forward-looking indicator would be muted.
Overall, though, new buyer demand for housing accompanied a smaller home supply will result in higher home prices through 2012. And, with mortgage rates expected to rise, monthly carrying costs will be higher, too.
Looking at the data, the best time to buy a home may be right now.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Have you been floating a mortgage rate? It may be time to lock.
At 8:30 AM ET Friday, the government’s Bureau of Labor Statistics will release its November Non-Farm Payrolls report. Better known as “the jobs report”, the monthly Non-Farm Payrolls figures provide sector-by-sector employment data, and tally the size of the current U.S. workforce size.
From these two elements, the national Unemployment Rate is derived.
Since topping out at 10.2% in October 2009, the Unemployment Rate has dropped to 9.0%. More than 2.3 million net new jobs have been made in the last 24 months.
Wall Street expect to see 125,000 more jobs added in November.
Depending on how closely the actual Non-Farm Payrolls data meets Wall Street expectations, East Lansing rate shoppers could find that the mortgage market landscape has shifted beneath them. The jobs report is a mortgage-market catalyst and when its reported value differs from Wall Street expectations, the impact on mortgage rates can be palpable — especially in a recovering economy.
The connection between the jobs market and the mortgage market is straight-forward — as the jobs market goes, so goes the economy.
When more people work, consumer spending increases
When consumer spending rises, businesses expand and invest
When businesses expand and invest, more people are put to work
Furthermore, employees and employers both pay taxes to governments. With more tax revenue, governments embark upon new projects which (1) require the hiring of additional workers, and (2) require the purchase and/or repair of additional equipment and supplies.
Employment can be a self-reinforcing cycle for the economy and that’s why Friday’s jobs report will be so closely watched. If the number of jobs created exceeds the 125,000 expected, mortgage rates will rise on the expectation for a stronger U.S. economy in 2012.
Conversely, if the jobs figures fall short, mortgage rates may fall.
Mortgage rates continue to hover near all-time lows according to Freddie Mac’s weekly Primary Mortgage Market Survey. The average 30-year fixed rate mortgage is sub-4.000 percent nationwide, with an accompanying fee of 0.7 discount points. 1 discount point is equal to 1 percent of your loan size.
If you’re under contract for a home or looking to refinance, minimize your interest rate risk. Lock ahead of Friday’s Non-Farm Payrolls release.
Get your rate lock in today.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Standard & Poor’s released its September 2011 Case-Shiller Index this week. The index tracks home price changes in select cities between months, quarters, and years.
The Case-Shiller Index for September showed drastic devaluations nationwide.
As compared to August, home values fell throughout 17 of the index’s 20 tracked markets, led by Atlanta’s 5.9% drop. On an annual basis, home values have now returned to early-2003 levels.
That said, home buyers and sellers in the Michigan State University area should be cautious when referencing the Case-Shiller Index. The index is a flawed metric and, as such, can lead to improper conclusions about the housing market overall.
The Case-Shiller Index’s first flaw is its most obvious — its limited sample set.
According to Wikipedia, there are more than 3,100 municipalities nationwide. Yet, the Case-Shiller Index includes data from just 20 of them in its findings. These 20 cities account for fewer than 1% of all U.S. cities, and just a small percentage of the overall U.S. population.
The “national figures” aren’t really national, in other words.
Even on a city-by-city basis, the Case-Shiller Index gets it wrong.
By lumping disparate neighborhoods into a single, city-wide result, the index ignores the relative strength of one area at the expense of another. In the aforementioned Atlanta, there are areas that fared much better than September’s -5.9% as cited by Case-Shiller. Some areas fared much worse.
A second flaw in the Case-Shiller Index is it’s methodology for measuring changes in home value. The index only considers “repeat sales” of the same home in its findings, and those homes must be single-family, detached property. Condominiums, multi-family homes, and new construction are not included.
In some cities — Chicago, for example — “excluded” property types can account for a large percentage of total monthly sales.
And, third, the Case-Shiller Index is flawed by “age”.
Because Standard & Poor’s publishes on a 60-day delay, the Case-Shiller Index is reporting on a housing that no longer exists. Sales that closed in September are based on contracts written from June-August –a time-frame that’s 6 months aged.
The best use of the Case-Shiller Index is as an analysis tool for economists and policy-makers interested in the long-term trends of U.S. housing. The index does very little good for every day buyers and sellers, unfortunately.
For up-to-date, accurate market data, talk to a real estate professional instead.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
If you plan to buy of new construction in Michigan sometime in 2012, don’t expect today’s low prices. Like everything in housing of late, the market for newly-built homes appears to be stabilizing and, in some markets, improving.
As foreshadowed by this month’s strong Homebuilder Confidence survey, the Census Bureau reports that the number of new homes sold rose to a 6-month high in October, climbing to 307,000 units on a seasonally-adjusted, annualized basis.
A “new home” is a home that is considered new construction. It’s the opposite of an “existing home”.
Home buyers are comparing new construction to home resales and liking what they see. At the current sales pace, the nation’s complete new home inventory would now be depleted in just 6.3 months. This marks the lowest home supply since April 2010 — the last month of the last year’s federal homebuyer tax credit.
By building only to meet new demand, builders are keeping home supplies in check, and home prices stable. They’ve also found a niche market – 80% of homes sold last month sold for less than $300,000.
Split by region, the Census Bureau reports October’s New Home Sales as follows :
Northeast Region : +0.0% from September 2011
Midwest Region : +22.2% from September 2011
South Region : -9.5% from September 2011
West Region : -14.9% from September 2011
Unfortunately, the data may be incorrect.
Although the October New Home Sales report says that sales climbed 1.3 percent last month, the government’s data was published with a ±19.7% margin of error. This means that the actual New Home Sales reading may have been as high as +21.0 percent, or as low as -18.4 percent. Because the range of values includes both positive and negative values, the Census Bureau assigned its October data “zero confidence”.
As home buyers, then, we can’t take our market cues from the published data. Instead, we should look to other metrics including Housing Starts data and the aforementioned homebuilder confidence survey. Each points to strength in the new home market, and foretells higher home prices in 2012.
If you’re in the market for new construction, consider writing an offer soon. Home prices remain low and mortgage rates do, too — a combination that keeps home payments low. Next year, that may not be the case.
Mortgage markets worsened slightly last week through a bouncy, holiday-shortened trading week. Markets were closed Thursday for Thanksgiving and re-opened only briefly Friday.
As in past weeks, though, economic, political, and financial news from the Eurozone dictated the direction of U.S. mortgage-backed bonds.
As Greece — and now Italy — have faltered, investors have sought to preserve their respective principal, moving money from unsafe assets to safe ones, a class which includes Fannie Mae- and Freddie Mac-backed mortgage bonds.
This investment pattern is known as “safe haven” buying and it’s why mortgage rates tend to improve when large economies grow unstable. Government mortgage bonds are considered among the safest securities available.
The average 30-year fixed rate mortgage is available for 3.98%, according to Freddie Mac, with borrowers expected to pay an accompanying 0.7 discount points. 1 “discount point” is a loan fee equal to 1 percent of your loan size.
“No-point loans” carry higher rates than the Freddie Mac-published figures, but come with lower closing costs.
This week, there are several reasons to expect mortgage rates to rise throughout Michigan.
First, markets are speculating that the IMF will lend Italy 600 billion euro to help avert financial crisis. This move would reverse the safe haven buying that’s characterized the last few weeks of trading, thereby leading mortgage rates higher.
A second reason is that they are early reports that Black Friday shoppers out-spent analyst estimates. Consumer spending is the largest part of the U.S. economy so, if spending is up, the economy should be up, too.
As before, this would reverse some of the safe haven buying that’s helped keep mortgage rates low.
Lastly, this week is stuffed with new data including Friday’s always-important Non-Farm Payrolls report. Wall Street expects 116,000 net new jobs created in November. If the actual figure is much higher, mortgage rates will rise.
Expect mortgage rates to be volatile this week. Your quoted mortgage rates could vary by as much as a quarter-percent from day-to-day. If you’re nervous about losing a low rate that’s been offered to you, consider locking in.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
A conforming mortgage is one that, literally, conforms to the mortgage guidelines as set forth by Fannie Mae and Freddie Mac.
Conforming mortgage guidelines are Fannie’s and Freddie’s eligibility standards; an underwriter’s series of check-boxes to determine whether a given loan should be approved.
Among the many traits of a conforming mortgage is “loan size”.
Each year, the government re-assesses its maximum allowable loan size based on “typical” housing costs nationwide. Loans that fall at, or below, this amount meet conforming mortgage guidelines. Loans in excess of this limit are known as “jumbo” loans.
Between 1980 and 2006, as home values increased, conforming loan limits did, too, rising from $93,750 to $417,000. Since 2006, however, despite falling home prices in many U.S. markets, the conforming loan limit has held steady. This will remain true for 2012 as well.
In 2012, for the 7th straight year, the national, single-family conforming mortgage loan limit will remain at $417,000.
The complete 2012 conforming loan limit breakdown, by property type :
1-unit properties : $417,000
2-unit properties : $533,850
3-unit properties : $645,300
4-unit properties : $801,950
However, there are some areas nationally that have earned ”loan limit exceptions” based on the local median sales prices. These areas are known as “high-cost” areas and loan limits within these regions range from $417,001 to a maximum of $625,500.
Some examples of high-cost areas include San Francisco (along with a most of California), New York City, and most of Hawaii and Alaska. Nationally, there are approximately 200 such “high-cost” areas.
Verify your local conforming loan limit and loan limits across Michigan via the Fannie Mae website. A complete county-by-county list is published online.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit
The housing market continues to signal that a broad rebound is underway. In October, despite sparse home inventory, the number of properties sold increased 1.4% nationwide.
According to data from the National Association of REALTORS®, on a seasonally-adjusted, annualized basis, October Existing Home Sales gained 70,000 units as compared to September, registering 4.97 million existing homes sold overall.
An “existing home” is a home that has been previously occupied and, as compared to prior months, the stock of homes for sale is depleted.
Just 3.3 million homes were listed for sale last month. This represents a 2 percent drop from September and marks the sparsest home resale inventory of 2011.
The current home supply would last 8.0 months at today’s sales pace — the fastest rate since January 2010.
34 percent of all sales were made to first-time buyers
29 percent of all sales were made with cash
28 percent of all sales were for foreclosed homes, or short sales
It also said that one-third of transactions “failed” as a result of homes not appraising for the purchase price; failure to achieve a mortgage approval; and, insurmountable home inspection issues.
This 33% failure rate is huge as compared to September 2011 (18%) and October 2010 (8%). It underscores the importance of getting pre-qualified to purchase, and of selecting a home “in good condition”.
For today’s Lansing home buyer, October’s Existing Home Sales may be a “buy signal”. Supplies are falling and sales are increasing. Elementary economics says home prices should begin rising, if they haven’t already.
Remember : The data we’re seeing is already 30 days old. Today’s market may be markedly improved already.
The good news is that mortgage rates remain low. Freddie Mac reports that the average 30-year fixed rate mortgage rate is 4.000% with 0.7 discount points, making homes as affordable as they’ve been in history.
With rising home values, you may end up paying more to purchase your new home, but at least you’ll pay less to finance it.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
After a brief return to lower, pre-2009 levels, FHA loan limits have been restored. As signed into law last Friday, maximum FHA loan limits are — once again — as high as $729,750.
The move creates additional mortgage financing possibilities in more than 650 U.S. counties, and promises to increase the FHA’s mortgage market share, which has grown from 6% in 2007 to roughly 30% today.
The change in FHA loan limits also marks the first time that FHA loan limits exceed those of conventional mortgage-backers Fannie Mae and Freddie Mac.
Conventional loans remain capped at a maximum of $625,500.
For home buyers in Lansing and nationwide, FHA-insured mortgage offer several advantages over comparable conventional loans, the most commonly cited of which is that FHA-insured loans require a down payment of just 3.5 percent.
FHA-insured mortgages carry other advantages, too, however.
First, FHA home loans are not subject to loan-level pricing adjustments (LLPA). This means that, all things equal, buyers and would-be refinancers with credit scores below 740; or, who live in multi-unit homes; or, who have high loan-to-values are not subject to additional loan fees as a conventional mortgage applicant might.
Second, after 6 months of on-time payments, FHA-backed homeowners are eligible for the FHA Streamline Refinance. The FHA Streamline Refinance is among the simplest loan products for which to qualify with no appraisal required. Even if you’re “underwater” on your mortgage, you can still be streamline-eligible.
And, lastly, at least in today’s market, FHA mortgage rates are below those of the conventional market.
The downside of FHA financing, however, is that all FHA mortgages require mortgage insurance and FHA mortgage rates are often higher versus a comparable conventional loan. This means that, although its mortgage rate may be lower, the payment for an FHA home loan may be higheras compared to a Fannie Mae mortgage with similar credit traits.
FHA loans aren’t always optimal, but with higher FHA loan limits, expect the FHA’s market share to increase.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Mortgage markets went unchanged last week as Wall Street traded on new debt stress within the Eurozone, and stronger-than-expected economic data here at home.
Rates moved very little from Monday to Friday and the storyline’s not expected to change much this week for today’s rate shoppers.
According to Freddie Mac, conforming 30-year fixed rate mortgages remain priced at 4.000% with 0.7 discount points on average, where 1 discount point equals one percent of the loan size. For people who prefer “zero-point” mortgages, expect a mortgage rate above 4.000%.
By contrast, loans with 1 point or more are priced below 4.000 percent.
However, in this holiday-shortened trading week, mortgage volatility should be up, and rates may finally break from the 4.000 benchmark we’ve hovered since November 1.
What’s unclear is whether rates will rise or fall.
For 8 months, we’ve talked of how events in Greece have influenced the U.S. mortgage market and, how each time Greece moved to the precipice of default, the U.S. mortgage bond market improved, causing mortgage rates to fall.
Last week, similar default concerns emerged for Italy and Spain. This applied downward pressure on U.S. mortgage rates, but a strong retail sales report; a better-than-expected New Home Sales data; and soaring homebuilder confidence renewed talk of domestic inflation in 2012 and beyond.
Inflation erodes the value of the U.S. dollar and leads to higher mortgage rates.
Wednesday : Jobless Claims; Personal Income and Outlays; Consumer Sentiment
In addition, Wednesday marks the deadline for the congressional “super-committee” tasked with finding $1.2 trillion in federal budget savings over the next 10 years. The committee was formed in the wake of August’s downgrade of U.S. federal debt by Standard & Poors.
If Congress fails to meet its goal in time, stock markets should suffer and mortgage rates may fall.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Another day, another signal that the market for newly-built homes is improving.
Single-Family Housing Starts rose to a seasonally-adjusted, annualized 430,000 units in October – a 4 percent increase from September and the highest reading in 3 months.
A “Housing Start” is a home on which ground has been broken.
The increase in surprised Wall Street analysts, although it shouldn’t have.
Earlier this week, the National Association of Homebuilders showed that Homebuilder Confidence is at its highest point since May 2010, the effect of better market conditions and more sold units. Rising housing starts amid a lift in builder confidence is to be expected — the two metrics have moved with loose correlation since mid-2000.
However, as with everything in real estate, Single-Family Housing Starts volume varied by location. The nation’s 4 regions posted wide-ranging results :
Northeast Region : + 10.0% from September
Midwest Region : -4.1% from September
South Region : +11.3% from September
West Region : -10.2% from September
Buyers of new construction in East Lansing can infer two key points from last month’s data.
First, with more homes will being built, home supply should rise, thereby softening pressure on rising home prices. This should help keep homes affordable.
However, the second point is that, with builder confidence rising, buyers are less likely to win price concessions and “free upgrades” in negotiations.
The last 6 weeks of 2011 may be your optimal time to buy new construction. Home prices remain affordable and mortgage rates are rock-bottom. In addition, because there are typically fewer active home buyers during the holidays, you’ll be more likely to locate one of the few remaining new construction “deals”.
Talk to your real estate agent about local trends and new construction.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Just two months after falling to a multi-month low, the Housing Market Index surged again in November, climbing another three points to 21. It’s the second straight month that the HMI posted a 3-point gain, catapulting the index to an 18-month.
The Housing Market Index is monthly report from the National Association of Homebuilders. It’s meant to measure confidence among the nation’s homebuilders, scored on a scale of 1-100.
When homebuilder confidence reads 50 or better, it reflects favorable conditions for homebuilders. Readings below 50 reflect unfavorable conditions.
The Housing Market Index has not read north of 50 since April 2006.
As an index, the HMI is actually a composite reading; the result of three separate surveys sent to homebuilders each month. The National Association of Homebuilders asks it members about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current “foot traffic”.
Current Single-Family Sales : 20 (+3 from October)
Projected Single-Family Sales : 25 (+1 from October)
Buyer Foot Traffic : 15 (+1 from October)
And, beyond the headline data, there is an important, noteworthy item in this month’s Housing Market Index.
In November, “Current Single Family Sales” climbed 3 points for the second straight month, and is now at the highest point since May 2010 — the month after last year’s home buyer tax credit expired. And, this increase in sales volume is occurring as new home construction is falling, thereby reducing home inventory nationwide.
That’s an important point for Okemos home buyers.
With more new home sales and fewer new home listings, prices are likely to increase into 2012. Especially with home builders predicting higher sales levels over the next 6 months, and seeing higher levels of buyer foot traffic through their properties today.
For now, though, home prices are stable and mortgage rates are low. This creates low-cost homeownership throughout Michigan , and helps new home construction remain affordable.
If you’re in the market for new home construction, the next 60 days may prove to be your best time to get “a deal”.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Tuesday, Fannie Mae and Freddie Mac unveiled lender instructions for the government’s revamped HARP program, kick-starting a potential refinance frenzy across Michigan and nationwide.
HARP stands for Home Affordable Refinance Program. The updated program is meant to give “underwater homeowners” an opportunity to refinance at today’s low mortgage rates.
In the two-plus years since its launch, HARP’s first iteration helped fewer than 900,000 homeowners. HARP II, by contrast, is expected to reach millions.
Lenders begin taking HARP II loan applications December 1, 2011.
To apply for HARP, applicants must first meet 4 basic criteria :
The existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior to June 1, 2009
The mortgage payment history must be perfect going back 6 months
The mortgage payment history may not include more than one 30-day late payment going back 12 months
If the above criteria are met, HARP applicants will like what they see.
For HARP applicants, loan-level pricing adjustments are waived in full for loans with terms of 20 years or fewer; and maxed at 0.75 for loans with terms in excess of 20 years.
This will result in dramatically lower mortgages rates for HARP applicants — especially those with credit scores below 740. Some applicants will find HARP mortgage rates lower than for a “traditional” conventional mortgage.
In addition, HARP applicants are exempted from the standard waiting period following a bankruptcy or foreclosure, which is 4 years and 7 years, respectively.
These two items are inclusionary and should help HARP reach a broader U.S. audience.
HARP contains exclusionary policies, too.
The “unlimited LTV” feature only applies to fixed rate loans or 30 years or fewer. ARMs are capped at 105% loan-to-value.
Applicants must be “requalified” if the proposed mortgage payment exceeds the current payment by 20%.
Applicants must benefit from either a lower payment, or a “more stable” product to qualify
And, of course, HARP can only be used once.
Fannie Mae and Freddie Mac will adopt slight variations of the same HARP guidelines so make sure to check with your loan officer for the complete list of HARP eligibility requirements.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
A “foreclosure filing” is any one of the following foreclosure-related events : A default notice on a home; a scheduled auction for a home; or, a bank repossession of a home. Because of this definition, a single home can account for up to 3 foreclosure filings — one from each category.
Because of this, we may glean more relevant insight into the foreclosure market by separating RealtyTrac’s foreclosure report into “event types”.
Default Notices : Up 10% from September 2011; Down 31% from October 2010.
Scheduled Auctions : Up 8% from September 2011; Down 38% from October 2010.
Bank Repossessions : Up 4% from September 2011; Down 27% from October 2010.
These breakdowns suggest that, although improved as compared to last year, the foreclosure market is growing. At least, it’s growing in some parts of the country. We can’t forget that — like everything real estate — foreclosures are a local phenomenon.
In October, just 4 states accounted for more than half of the country’s foreclosure filings. Those four states — California, Florida, Michigan and Illinois — represent just 26% of the U.S. population.
Top 10 Foreclosure States : 1 foreclosure per 341 households, on average
Bottom 10 Foreclosure States : 1 foreclosure per 7,434 households, on average
The nationwide foreclosure rate was 1 foreclosure per 563 households.
As a Okemos home buyer, foreclosures are worth watching. They account for 18% of home resales nationwide and, in some markets, can be bought at steep discounts versus a comparable “non-distressed” home. That is part of their appeal, in fact.
But just because foreclosed properties can be a “deal”, it doesn’t mean you should rush to buy one. Buying a foreclosed home from a bank is different from buying a non-foreclosed home from a “person”. The contracts and negotiation process are different, and foreclosed homes are sometimes sold as-is.
“As-is” means “this home may have defects”.
Therefore, if you plan to buy a foreclosed home, talk with a real estate professional first. You can learn a lot about the housing market online, but with respect to writing an offer on a property, you’ll want an experienced agent on your side.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Amid a dearth of new U.S. economic data, Eurozone developments led mortgage markets down in last week’s holiday-shortened trading week. Mortgage rates across Michigan worsened slightly, increasing week-over-week for the first time in a month.
Freddie Mac reports the average 30-year fixed rate mortgage at 3.99% with an accompanying 0.7 discount points. Discount points are loan fees, and 1 discount point is equal to 1 percent of your loan size.
Greece has dominated mortgage market headlines since February. As the nation-state aims to reign in its national spending, it has also adopted harsh austerity measures. The combination is meant to prevent future debt defaults, but global investors remain concerned that problems in Greece may spill over into other Eurozone nations.
As those concerns have grown, U.S. mortgage markets have benefited. This is because U.S. mortgage markets are backed by the U.S. government, and investors treat the U.S. mortgage market as “safe” compared to other security-types.
Safe investments are in high demand during uncertain times, often improving in price. This pattern is known as Safe Haven Buying and it’s one reason why mortgage rates tend to fall when the economy is sagging. Mortgage rates move opposite of mortgage bond prices.
This week, U.S. economic data returns, but markets will still be watching the Eurozone. Sunday, Italy changed leadership, in part, to restore market confidence in its ability to get its debt load under control.
Expect developments in Italy to sway U.S. mortgage rates this week. In addition, rates will respond to a rash of economic data and Fed speakers :
Mortgage rates remain near all-time lows, with not much room to drop. If you’re shopping for a mortgage rates, therefore, consider locking in. As Greece and Italy show signs of moving forward, expect Safe Haven Buying to recede, and mortgage rates to rise.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
As part of its quarterly survey to member banks nationwide, the Federal Reserve asked senior loan officers whether last quarter’s “prime” residential mortgage guidelines have tightened, loosened, or remained as-is.
A “prime” borrower is defined as one with a well-documented, high-performance credit history; with low debt-to-income ratios; and who chooses to finance a home via a traditional fixed-rate or adjustable-rate mortgage product.
After a 2-year easing cycle, the nation’s biggest bank banks report that they’ve reversed course, and are raising the bar on mortgage approvals.
For the period July-September 2010, 88% of responding loan officers admitted to tightening their prime guidelines, or leaving them “basically unchanged”.
If you’ve applied for a home loan of late, you’ve experienced this first-hand.
High delinquency rates and defaults since 2007 have caused the banks to rethink what they will lend, and to whom. As a result, today’s mortgage lenders scrutinize assets, incomes, and credit scores to make sure that nothing “slips by”.
For today’s home buyers and would-be refinancers, the mortgage approval process can be challenging as compared to how it looked just 18 months ago.
Minimum credit scores requirements are higher today
Downpayment/equity requirements are larger today
Debt-to-Income ratio requirements are more strict today
In other words, although mortgage rates are the lowest that they’ve been in history, fewer applicants can qualify. And, with more the housing market still in recovery, it’s likely that guidelines will tighten again in 2012.
Therefore, if you’re among the many people in Lansing wondering if it’s the right time to buy a home or refinance, consider that, although mortgage rates may fall, approval standards may not.
The best rate in the world won’t matter if you’re not eligible to lock it.
Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
With Halloween behind us, retailers are in the Holiday Spirit. Businesses know that consumers spent a median $556 on holiday gifts last year and they want this year to be just as strong.
That’s why it’s barely November and, already, Black Friday ads clog our mailboxes and the airwaves. Retailers want our dollars and they’re offering great deals to early shoppers.
There’s one discount a smart shopper should think twice, however — the ever-present ”Open A Charge Card Today And Save 15%” promotion. In the short-term, deals like this will save money.
Over the long-term, however, opening a charge card could cost you much, much more — especially if you plan to refinance your home or buy a new one.
Applying for a charge card can lower your credit score up to 85 points.
According to the myFICO.com website, as a category, “New Credit” accounts for 10% of your 850 possible credit points, comprising the following credit traits :
Your number of recently opened accounts
Your number of recent credit inquiries
Time elapsed since your recent credit inquiries
Your proportion of new accounts to all accounts
Each trait is a negative in the FICO-scoring credit algorithm which means that, with each in-store charge card application, your credit score is likely to fall. How far your score will fall depends on the rest of your credit profile.
Meanwhile, low FICO scores correlate to higher loan fees.
Using a real-life example, assuming 20% equity in a home, for either purchase or refinance, look how loan fees for a $200,000 conforming mortgage change by FICO score :
740 FICO : There will be no added loan costs
720 FICO : You’ll have a 0.250% increase in loan costs, or $500
700 FICO : You’ll have a 0.750% increase in loan costs, or $1,500
680 FICO : You’ll have a 1.500% increase in loan costs, or $3,000
660 FICO : You’ll have a 2.500% increase in loan costs, or $5,000
You can see first-hand how expensive low credit score can be — much more costly than the 15% saved at the mall. That’s why people planning to refinance to today’s low rates and soon-to-be Okemos homeowners, shouldn’t rush to save 15% at the register.
For people in want of a mortgage, high FICO scores are worth protecting.
Don Grimes, Senior Mortgage Loan Officer has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
A home appraisal is an independent opinion of your home’s value, performed by a licensed home appraiser. Appraisals are part of the traditional home purchase process, and lenders require them for most refinances, too.
Appraisers are trained professionals. First, they derive a base for your home’s value based on the recent sales prices of homes that are comparable to yours in terms of bedrooms, bathrooms, style, and square footage.
Then, accounting for features and amenities that make your home different, the appraiser applies “adjustments” to that base value.
This methodology is called the “Sales Comparison” approach and the result is your home’s appraised value.
It’s the most common appraisal method used by lenders.
As a homeowner in Okemos , you can’t affect the sales prices of your home’s comparable properties, but you can help your appraiser understand how your home stands apart from these homes. This, in turn, can affect your home’s adjustments, resulting in a higher appraised value.
With home appraisals, every valuation dollar can matter. With that in mind, here are a few tips for maximizing your home’s appraised value :
Be home for your appraisal so you can answer the appraiser’s question, if there are any.
Mention any new roofing, flooring, HVAC, plumbing, or windows you’ve installed since purchase.
Don’t mention projects or repairs you’re “about to undertake”. Appraisers don’t credit for unfinished projects.
Make minor household fixes prior to the appraisal (e.g.; leaky sink, running toilet, peeling paint).
Present a tidy home. This can contribute to a higher “overall condition” adjustment.
Lastly, schedule the appraisal for a time that is convenient for your entire household. An appraiser needs to see, measure, and take photos of every room in your home. If a room’s door is closed because of a resting child, for example, the appraiser may need to schedule a second appointment to complete the appraisal, and that can raise your appraisal costs.
Don Grimes, Senior Mortgage Loan Officer has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Mortgage markets improved last week as optimism for a Greek Bailout program faded, triggering a global flight-to-quality assets. Fear of a Eurozone rift outweighed positive economic remarks from the Federal Open Market Committee and an in-line U.S. jobs report.
Although the Federal Reserve said the economy had “strengthened somewhat“, a statement backed up by Friday’s Non-Farm Payrolls data which — with revisions — met analyst expectations, concern that Greece may not receive its aid caused mortgage to fall.
Conforming mortgage rates dropped throughout Michigan Monday and Tuesday, pushing rates to near their lowest levels of the year. Rates remained low through Friday.
According to Freddie Mac’s weekly mortgage market survey, the average 30-year fixed rate mortgage is 4.00% nationwide, plus closing costs and an accompanying 0.7 discount points.
A “discount point” is a one-time loan fee paid at closing, where 1 discount point is equal to 1 percent of your loan size.
As an example, 1 discount point on a $300,000 home loan costs $3,000.
This week, with no new economic due for release, the fate of mortgage rates in Lansing again depends on what develops in Europe. If Greece cannot reach accord within its own parliament, and cannot enact the austerity measures as dictated by its aid package, mortgage rates should fall this week, too.
However, if Greece can reach agreement and move forward, it will appease investors worldwide and U.S. mortgage rates should resume rising. Likely by a lot.
Remember : The U.S. economy has shown slow, steady improvement of late and, normally, this would result in higher mortgage rates for consumers. That’s not what we’ve experienced, however. Instead, fears of a Greek debt default have dominated headlines.
As soon as markets are certain that Greece has a way forward, attention will return to the U.S. economy, and mortgage rates are expected to rise.
Therefore, float your mortgage rate with caution this week. Depending on global events, mortgage rates may rise or fall. Eliminate your interest rate risk. Lock your rate today.
Don Grimes, Senior Mortgage Loan Officer has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
In the housing market, amenities and location have as much to do with a home’s value as the everyday forces of supply-and-demand. Whereas the latter causes home values to rise and fall over time, the former creates a starting point for said values.
Where you live — and the features of your home — determine your home’s price range. Naturally, homes in some areas are consistently higher-valued than homes in others.
Using data compiled by real estate market data firm Altos Research, Forbes Magazine presents America’s 10 most expensive ZIP codes. California and the New York Metro area dominate the list.
Alpine, NJ (07620) : $4,550,000
Atherton, CA (94027) : $4,295,000
Sagaponack, NY (11962) : $3.595,000
Hillsborough, CA (94010) : $3,499,000
Beverly Hills, CA (90210) : $3,469,891
New York, NY (10012) : $3,392,574
New York, NY (10013) : $3,317,962
Water Mill, NY (11976) : $3,300,000
Montecito, CA (93108) : $3,099,348
Old Westbury, NY (11568) : $3,095,000
In fact, of the top 50 most expensive ZIP codes, only 6 are located outside of California and New York regions. 3 are Colorado resort towns — Snowmass (81654), Aspen (81611) and Telluride (81435) — one is in Maryland, one is in Florida, and the last is in Washington State.
Chicago-suburb Kenilworth (60043) is the top-ranked Midwest ZIP code. It placed 86th overall.
The Forbes list may be interesting but, to home buyers or sellers in Lansing , it should not be the final word in home values. Real estate is a local market which means that — even within a given ZIP code — prices can vary based on street and neighborhood.
Look past general data and get specific. Talk to your real estate agent for local market pricing.
Don Grimes, Senior Mortgage Loan Officer has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Within the next 48 hours, mortgage rates may get bouncy. The Federal Open Market Committee will adjourn from a 2-day meeting and October’s Non-Farm Payrolls report is due for release.
Of the two market movers, it’s the Non-Farm Payrolls report that may cause the most damage. Rate shoppers across Michigan would do well to pay attention.
Published monthly, the “jobs report” provides sector-by-sector employment data from the month prior. It’s a product of the Bureau of Labor Statistics and includes the national Unemployment Rate.
In September, the economy added 103,000 jobs, and job creation from the two months prior was shown to be higher by 99,000 jobs higher than originally reported. This was a huge improvement over the initial August release which showed zero new jobs created.
When September’s jobs report was released, mortgage rates spiked. This is because of the correlation between jobs and the U.S. economy. There are a lot of economic “positives” when the U.S. workforce is growing.
Consumer spending increases
Governments start more projects
Businesses make more investment
Each of these items leads to additional hiring, and the cycle continues.
Wall Street expects that 90,000 jobs were created in October 2011. If the actual number of jobs created exceeds this estimate, it will be considered a positive for the economy, and mortgage rates should climb as Wall Street dumps mortgage-backed bonds in favor of equities.
Conversely, if the number of new jobs falls short of 90,000, it will be considered a disappointment, and mortgage rates should rise.
There is a lot of risk in floating a mortgage rate today. The Federal Reserve could make a statement that drives rates higher, and Friday’s job report could do the same. If you’re under contract for a home or planning to refinance, eliminate your interest rate risk.
Lock your mortgage rate today.
Don Grimes, Senior Mortgage Loan Officer has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
The Federal Open Market Committee begins a scheduled, 2-day meeting today, the seventh of its 8 scheduled meetings this year, and the eighth Fed meeting overall.
The FOMC is a 12-person sub-committee within the Federal Reserve. It’s the group responsible for setting the nation’s monetary policy and is led by Federal Reserve Chairman Ben Bernanke.
The FOMC’s most well-known role is as the steward of the Fed Funds Rate. This is the overnight rate at which U.S. banks borrow money from each other. The Fed Funds Rate is a unique, “banking” interest rate, and should not be confused with consumer interest rates, a category which includes ”mortgage rates”.
Mortgage rates are not set by the Federal Reserve.
Rather, mortgage rates are based on the price of mortgage-backed bonds. If mortgage rates correlated to the FOMC’s Fed Funds Rate, the chart at right would be linear.
That said, the FOMC does exert influence on mortgage markets.
After its FOMC meetings, the Federal Reserve issues a press release to the public. In it, the central banker summarizes economic conditions nationwide, highlighting threats to the economy and areas of strength.
When the Federal Reserve’s statement is generally “positive”, mortgage rates tend to rise. This is because a strengthening economy invites investors to assume more risk, spurring equity markets at the expense of all bonds types, including the mortgage-backed kind.
When bond markets lose, mortgage rates rise.
Conversely, when the Fed is generally negative, bond markets gain, pushing mortgage rates lower throughout Michigan.
The Fed can also influence mortgage rates via new policy.
At its last meeting, the FOMC launched a new, $400-billion round of mortgage-market stimulus known as Operation Twist. The added mortgage-bond support led mortgage rates lower post-FOMC meeting.
The Fed may expand Operation Twist as soon as Wednesday afternoon. It may also take no such steps at all. Unfortunately, there are few clues about what the Federal Reserve may do next, if anything at all. As a result, mortgage rates will be a moving target for the next 36 hours. First, they’ll be volatile before of the Fed’s statement. Then, they’ll be volatile after the Fed’s statement.
Even if the Fed does nothing, mortgage rates will change so your safest play is to lock a mortgage rate ahead of Wednesday’s 2:15 PM ET adjournment.
There too much risk in floating.
Don Grimes has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is with Amera Mortgage which is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Mortgage markets moved across a wide range last week before, ultimately, finishing unchanged. The bailout of Greece both dominated headlines and dictated market direction.
It was a wild ride for rate shoppers.
Early in the week, mortgage rates spiked. Eurozone leaders expressed optimism that a deal for Greece’s solvency would be made, rhetoric to which Wall Street responded selling mortgage bonds.
When markets closed Wednesday, conforming mortgage rates in Michigan were at their highest levels since September.
However, when markets opened Thursday, rates began to reverse lower. Investors deemed the details of the Greece fuzzy, and, once again, sought safety in the U.S. mortgage bond market.
As such, rates fell through Friday afternoon, closing the week precisely where they started.
It’s the FOMC’s 7th scheduled meeting of the year.
The FOMC is the Federal Reserve’s monetary policy-setting group. It does not set mortgage rates for citizens of Lansing , but it can exert an influence. For example, if the FOMC votes to increase the size of its Operation Twist, mortgage rates may respond favorably, causing rates to fall.
Conversely, if the FOMC scales back the size of its program because of inflationary concerns or otherwise, mortgage rates should rise.
The Federal Open Market Committee meeting ends at 2:15 PM ET Wednesday and mortgage rates are typically volatile in the hours surrounding the group’s adjournment. If you’re floating a mortgage rate or deciding whether to lock, keep this date and time in mind.
Don Grimes has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office with Amera Mortgage is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Nationwide, fewer homes are going under contract to sell.
According to the National Association of REALTORS®, the Pending Home Sales Index fell 5 percent last month. September marks the fourth consecutive month in which the index has dropped.
The Pending Home Sales Index is a monthly index which measures the number of homes under contract to sell, but not yet closed. As such, it’s among the few “forward-looking” housing indicators; a data set meant to predict future home sales.
80% of homes under contract close within 2 months so, if the September Pending Home Sales Index is to be believed, we should expect home sales to decline through October and November.
And that’s before we account for cancelled contracts.
Also from the National Association of REALTORS®, we learn that 18 percent of homes under contract failed to close in September. This is double the failure rate from September 2010 and it, too, should drag Existing Home Sales volume lower this fall.
On a seasonally-adjusted, regional basis, the Pending Home Sales Index fell everywhere.
Northeast Region: -4.7% from August
Midwest Region : -6.2% from August
South Region : -5.5% from August
West Region : -2.1% from August
For home buyers and sellers in Okemos , though, regional data remains too broad to be useful. Housing markets are local, meaning that each block on each street on each city has its own distinct economy. When 9 states are grouped into a single “region”, it’s neither helpful nor relevant to people making buy/sell decisions.
That said, the Pending Home Sales Index remains important because it’s about housing, and housing is a keystone of the U.S. economic recovery.
The market looks ideal for buyers. Home prices are rising, but slowly; and mortgage rates remain near rock-bottom levels. Home affordability is high and should remain that way for the next few weeks.
If you’re shopping for a home, it’s an excellent time to go under contract.
Don Grimes has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Home builders continue to sell homes and work through inventory.
According to data from the Census Bureau, the number of new homes sold in September jumped 6 percent from the month prior, beating analyst expectations. On a seasonally-adjusted, annualized basis, buyers in Michigan and nationwide closed on 313,000 newly-built homes last month.
It’s the highest reading since April and a major reason why the available number of new homes for sale is shrinking.
As compared to September 2010, there are 19% fewer homes for sale nationwide. At today’s sales pace, the complete new home inventory would be “sold out” in 6.2 months – the quickest sell-out pace since the April 2010 federal home buyer tax credit expiration.
It’s no wonder builder confidence is rising.
After averaging 15 through the first 9 months of the year, homebuilder confidence jumped 4 points for October, carried by low mortgage rates and the expectation for a strong winter/spring selling season.
For buyers in Lansing , this could be construed as a housing market-shifting signal. As builder confidence rises, it becomes more difficult to negotiate for upgrades and price reductions on a new home. “Great deals” get scarce.
Furthermore, it’s unlikely that mortgage rates will sustain their current, ultra-low levels into 2012. Rising rates lead to higher housing payments on a month-to-month basis.
If you’re in the market for a newly-built home, in other words, today’s homes may represent your best value of the year.
The August 2011 Case-Shiller Index was released this week. On an monthly basis, 10 of 20 tracked markets worsened. On an annual basis, valuation degradation was worse.
Only Detroit and Washington, D.C. posted higher home values in August 2011 as compared to August 2010, rising 2.7% and 0.3%, respectively.
However, the index has been moving in the right direction. Since bottoming out in March of this year, the Case-Shiller Index is up nearly 4 percent.
As home buyers and sellers in East Lansing , though, we have to remember that the Case-Shiller Index is a flawed product; its methodology too narrow to be the final word for housing markets.
The Case-Shiller Index has 3 main flaws.
The first Case-Shiller Index flaw is its relatively small sample size. Although it’s positioned as a national housing index, Case-Shiller data represents just 20 cities nationwide, and they’re not even the 20 most populous U.S. cities. For example, cities like Houston (#4), Philadelphia (#5), San Antonio (#7) and San Jose (#10) are excluded from the Case-Shiller Index findings.
By contrast, Minneapolis (#48) and Tampa (#55) make the list.
A second Case-Shiller Index flaw is the way in which it measures home price changes. The Case-Shiller Index formula ignores all home sales except for “repeat sales” of the same home. New homes don’t count for the Case-Shiller Index. Furthermore, the index ignores condominium and multi-family home sales, too.
In some cities, condos can account for a large percentage of sales.
And the third Case-Shiller Index flaw is that the data is reported on a 2-month lag. Next week marks the start of November, yet we’re still discussing data from August. A lot can change in two months (and it often does). Today’s market conditions are similar to — but not the same as — market conditions from before Labor Day.
The Case-Shiller Index is far from “real-time”.
As a monthly release, the Case-Shiller Index does more to help people with a long-term view of housing, including politicians and economists, than it does for everyday buyers and sellers of Michigan State University who negotiate prices based on current demand and supply.
A real estate agent can tell you which homes have sold in the last 7 days, and at what prices. The Case-Shiller Index cannot.
The Federal Home Finance Agency announced big changes to its Home Affordable Refinance Program Monday. More commonly called HARP, the Home Affordable Refinance Program is meant to give “underwater homeowners” opportunity to refinance.
With average, 30-year fixed rate mortgages still hovering near 4.000 percent, there are more than a million homeowners in East Lansing and nationwide who stand to benefit from the program overhaul.
To qualify for the re-released HARP program, you must meet 4 basic criteria :
Your existing home loan must be guaranteed by Fannie Mae or Freddie Mac
Your home must be a 1- to 4-unit property
You must have a perfect mortgage payment history going back 6 months
You may not have had more than one 30-day late payment on your mortgage going back 12 months
Most notable about the new HARP refinance program, though, is that the government is waiving loan-to-value requirements on a HARP loans. Homeowners’ participation in the program are no longer restricted by their home’s appraised value. In fact, the new HARP doesn’t even require an appraisal, in most instances.
With the new HARP program, underwater mortgages can be refinanced without LTV limit or penalty.
According to the government’s press release, pricing considerations for the new HARP program will be released on or before November 15, 2011; and lenders are expected to be offering the program as of December 1, 2011.
If you think you may be eligible, first confirm that either Fannie Mae or Freddie Mac is backing your loan. Both groups provide a simple, online lookup.
If your loan cannot be located on either of these two sites, your current mortgage is not backed by Fannie Mae or Freddie Mac, and is not HARP-eligible.
The FHFA’s official press release contains an FAQ section. In it, you’ll find minimum qualification standards, as well as information related to condominiums and to mortgage insurance.
The HARP program is meant to help a wide group of homeowners, but each applicant’s situation is unique. For specific HARP questions, be sure to talk with a loan officer.
Mortgage markets improved last week on worries that Eurozone leaders would decline to send aid to Greece. These concerns overshadowed optimism for the U.S. economy, the result of several strong data points.
Conforming rates across Michigan eased, giving homeowners and rate shoppers yet another chance to nab historically-low mortgage rates. FHA mortgage rates remained low, too.
According to Freddie Mac, the average 30-year fixed rate mortgage rate is now 4.11% with 0.8 discount points. For loans with zero points, expect to pay slightly higher rates.
Rate-shoppers and home buyers would do well to pay attention.
This week’s may be as good as mortgage rates get. Possibly forever. This is because the market conditions that helped rates stay low — a weak U.S. economy and uncertainty in Europe — are eroding.
The U.S. economy has posted strong jobs, spending, and confidence figures in the past 3 weeks and Eurozone leaders appear closing making a deal that will help Greece avoid a sovereign debt default.
Once markets no longer worry about these two events, rates are expected to surge.
Eurozone leads met all weekend and have chosen Wednesday, October 26, as a likely “decision date” for Greece. If that date holds, and if an agreement can be reached, U.S. mortgage bonds will sell-off and mortgage rates will rise.
The housing sector is set to release important news this week, too.
After last month’s increase in Housing Starts and steady Existing Home Sales report, Wall Street will watch for this week’s New Home Sales, Case-Shiller Index and Pending Home Sales Index. If momentum stays strong for housing, that, too, should pressure mortgage rates higher.
Mortgage rates remain near all-time lows. If you’ve yet to lock your mortgage rate, or are still shopping, consider that rates have more room to rise than to fall. The “safe play” is to execute a lock today.
Despite fewer homes for sale nationwide, the number of home resales remains steady.
According to data from the National Association of REALTORS®, on a seasonally-adjusted, annualized basis, September’s Existing Home Sales eased by 150,000 units, falling to 4.91 million units nationwide.
An “existing home” is a home that’s been previously occupied and, despite last month’s drop, September’s sales volume remains the second-highest on record since April 2011.
This statistic is noteworthy for two reasons :
There are 9.9% fewer homes available for sale as compared to 12 months ago
Contract “failures” are twice as high as compared to September 2010, now averaging 18 percent nationwide
A contract failure is typically the result of homes not appraising for the purchase price; mortgage denials in the underwriting process; and, insurmountable home inspection issues.
Because sales volume is steady, we can infer that more buyers are “in the market” than the final sales tallies would have us believe. This notion is also evident in the Existing Home Supply data.
In September, the number of homes for sale fell by 69,000 nationwide. At the current pace of sales, it would take 8.5 months to “sell out” the complete national inventory. This is more than 2 months faster as compared to September 2010 — a major improvement for the housing market and a sign that home prices should rise soon.
Today’s East Lansing market exemplifies Supply and Demand. Demand for homes is holding steady as home inventories fall. This creates pressure for home buyers to make offers, and multiple bidding situations become more common. Negotiation leverage shifts to the sellers and the result is that buyers pay higher prices for homes.
Thankfully, mortgage rates remain low.
Freddie Mac reports that the 30-year fixed rate mortgage ticked lower this week, averaging 4.11% nationwide with 0.8 discount points. This means that mortgage payments are lower by $46 per $100,000 borrowed as compared to the high-point of the year.
You may pay more for a new home, in other words, but you’ll pay a lot less to finance it.
Headlines in newspapers can be misleading — especially with respect to housing figures. Media coverage of the most recent Housing Starts data serves as an excellent illustration.
Wednesday, the Census Bureau released its September Housing Starts report. In it, the government said that national Housing Starts rose 15 percent in September as compared to August 2011, tallying 658,000 units on a seasonally-adjusted annualized basis.
The September reading is the highest monthly reading since April 2010, the last month of last year’s home buyer tax credit.
The sudden surge in starts is big news for a housing market that has struggled of late, and the press was eager to carry the story. Here is a sampling of some headlines:
U.S. Housing Starts Rise 15%, Hit 17-Month High (MarketWatch)
These headlines are each accurate. However, they’re also misleading.
Yes, Housing Starts did surge in September, but if we remove the “5 or more units” grouping from the Census Bureau data — the catgory that includes apartment buildings and condominium structures — we’re left with Single-Family Housing Starts and Single-Family Housing Starts rose just 1.7 percent last month.
That’s a good number, but hardly a great one. And for home buyers and sellers throughout East Lansing and nationwide, it’s the Single-Family Housing Starts that matter most. Individuals like you and I don’t buy entire apartment buildings. Most often, we buy single-family homes. Therefore, that’s the data for which we should watch.
The good news is that media tales work in both directions.
Building Permits dropped 5 percent last month when the volatile 5-unit-or-more-units category was included from the math. Isolating for single-family homes, we find that permits were unchanged.
This is good housing because 82% of homes begin construction within 60 days of permit-issuance, hinting at a steady, late-fall housing market.
Just one month after falling to a multi-month low, the Housing Market Index rebounded four points to 18 for October. It’s the highest reading for the HMI since May 2010 — the month after last year’s homebuyer tax credit expiration.
The Housing Market Index is published monthly by the National Association of Homebuilders and is scored on a scale of 1-100. Readings above 50 indicate favorable conditions for homebuilders. Readings below 50 indicate unfavorable conditions.
The index has been below 50 since May 2006 — a 66-month streak.
The Housing Market Index is a composite reading; the result of three separate surveys sent to home builders each month. Builders are asked about current single-family home sales volume; projected single-family home sales volume over the next 6 months; and current “foot traffic”.
Current single-family sales : 18 (+4 from September)
Projected single-family sales : 24 (+7 from September)
Buyer foot traffic : 14 (+3 from September)
Meanwhile, of particular interest to today’s East Lansing home buyers is that builders expect volume to surge over the next two seasons. And, with current sales volume rising and foot traffic strengthening, the fall and winter months could be strong ones in the new homes market.
In addition, the builder trade group press release states that rising costs for materials are squeezing building profit margins.
For buyers, it all adds up higher home prices ahead. As builders grow more confident about the housing market, they’re less likely to make concessions on pricing or upgrades. Rising building costs fortify that argument. The “great deal” will be tougher to negotiate.
At least mortgage rates are low.
Low mortgage rates are keeping homes affordable in Michigan and nationwide. If you’re looking for the right time to buy new construction, therefore, this month may be it.
Foreclosure activity continues to slow throughout the United States.
According to data from RealtyTrac, a national foreclosure-tracking firm, the number of foreclosure filings dipped below 215,000 in September 2011, a 6 percent decrease from August.
A “foreclosure filing” is defined as any foreclosure-related action including Notice of Default, Scheduled Auction, or Bank Repossession.
September marks the 12th straight month in which foreclosure filings fell year-over-year.
There are several reasons why foreclosure filings are down, including an increase in the amount of time it takes banks to move a foreclosure through its pipeline. It now takes a nationwide average of 336 days from the date of initial default notice to bank repossession.
Some states work quicker than others, however, because of a combination of state law and personnel.
Homes in New York take an average of 986 days to foreclose, for example, the longest in the country. Homes in Texas foreclose the quickest, registering just 86 days.
As in prior months, bank repossessions remain concentrated by state. Just 6 states accounted for half of the country’s REO last month:
By contrast, the bottom 6 states were home to just 192 repossessions last month — 0.3% of the national total. Those 6 states were Alaska, Wyoming, District of Columbia, North Dakota, South Dakota, and Vermont.
For home buyers in Okemos , shopping for foreclosed properties can be an excellent way to get “a deal”. Foreclosed homes typically sell at discounts as compared to “non-foreclosed” homes, but are often sold “as-is”. This means that homes listed for sale may be defective or out-of-code.
Before placing a bid on a foreclosed home, make sure that you’re represented by an experienced real estate professional.
Wednesday, the Federal Reserve released the minutes from its 2-day meeting September 20-21, 2011.
The release shows a divided Fed in disagreement about the current U.S. monetary policy. The group reached compromise for new economic stimulus, however, and maintained its commitment to accommodative interest rates.
Wall Street reacted tepidly to the minutes. Mortgage rates in East Lansing worsened slightly post-release.
The Fed Minutes gets less press than the FOMC’s post-meeting press release, but it’s every bit as important. Because it details the conversations that take place among voting and non-voting Fed members at FOMC meetings, the Fed Minutes is an inside-look at the debates and discussion that lead to new monetary policy.
On growth : Economic growth was slow, but “did not suggest a contraction”
On housing : The market continues to be “depressed by weak demand”
On rates : The Fed Funds Rate will remain low until mid-2013
Then, with Fed members divided on whether the central bank should add new stimulus, it reached a compromise instead, launching the $400 billion “Operation Twist” program. Operation Twist is meant to lower longer-term interest rates, including mortgage rates.
Since Operation Twist began, mortgage rates are higher by nearly 0.375%.
Also noteworthy within the Fed Minutes was concern for an economic slowdown and how the Federal Reserve may react. According to the record, a slowdown may prompt the Fed to introduce its third round of qualitative easing, or QE3. An out-sized stimulus plan would likely lead rates higher.
Nothing will happen until the Fed’s next meeting, however. Chairman Ben Bernanke & Co meet next November 1-2 for a 2-day meeting.
The American Consumer is alive and well, it seems.
Friday morning, the Census Bureau will release its Retail Sales figures for September. The report is expected to show an increase in gross receipts for the 15th straight month with analysts predicting a 0.6 percent increase from August.
The projected increase represents the largest jump in Retail Sales in six months and would likely lead mortgage rates higher for buyers in Lansing and nationwide.
The connection between Retail Sales and mortgage rates is fairly straight-forward. Retail Sales are the majority component of “consumer spending” and consumer spending represents the majority of the U.S. economy — up to 70 percent, by some estimates.
And, as the economy goes, so go mortgage rates.
10 months ago, mortgage rates shot forward to start the year. This is because expectations were high for a strong economic rebound. Conforming and FHA rates crossed 5 percent at the time and were headed toward six.
By mid-April, though, it was clear that economic data was falling short of predictions. As a result, mortgage rates declined, kicking off the 2011 Refi Boom. Then, by August, on ongoing economic softness, mortgage rates in Michigan fell further, making new all-time lows.
Expectations for a recovery have returned. Rates are now rising.
Last week’s strong jobs report sparked hope for the U.S. economy and investors have been voting with their dollars. Mortgage rates are now up 7 consecutive days and Friday’s Retail Sales report could cement the trend.
If you’re shopping mortgage rates today, there’s risk in “floating”. You may want to lock your rate before Friday’s Retail Sales report drives rates even higher.
The Retail Sales report will be released at 8:30 AM ET.
Mortgage rates are prepped to make big moves in the next 36 hours. Is it time for you to call in your rate lock?
Friday, at 8:30 AM ET, the Bureau of Labor Statistics will release the Non-Farm Payrolls report for September. Issued monthly, the ”jobs report” offers sector-by-sector job creation figures from the month prior, and reports on the national Unemployment Rate.
Last month, exactly zero net new jobs were created, the government said. This month, economists expect a net 60,000 new jobs created.
Depending on where the actual monthly figure falls, FHA and conforming mortgage rates in Lansing may be volatile. The jobs reports tends to have out-sized influence on the mortgage bond market.
The connection between the jobs market and the mortgage market is fairly straight-forward. As jobs go, so goes the economy. This is because more working Americans leads to a stronger economic base.
When more people work, consumer spending grows
When more people work, governments collect more taxes
When more people work, household savings increases
Each of these items are strengths to a recovering economy.
For rate shoppers, Friday’s job report could cause mortgage rates to rise — or fall. If the actual number of jobs created exceeded the 60,000 consensus estimate, look for mortgage rates to climb.
Conversely, if new jobs fell short of 60,000, expect that rates will drop.
Home affordability is at all-time highs because mortgage rates are at all-time lows. If you’re under contract for a home or looking to refinance, eliminate some of your interest rate risk. Lock ahead of Friday’s Non-Farm Payrolls release.
The government is confirming what the private sector has already shown — home values are on the rise.
The Federal Home Finance Agency’s Home Price Index shows home values rose 0.8% in July.
July marks the fourth straight month that home values climbed and the FHFA’s Home Price Index is the latest in a series of “rising home values” reports — an encouraging trend for buyers and sellers in Okemos and nationwide.
Nationwide, values are back to their highest levels since November 2010. Clearly, the housing market in Michigan is moving in the right direction. Or is it?
Although the data from the government and from private firms such as CoreLogic is encouraging, it’s also flawed. As such, we have to be careful about the conclusions we draw from the data.
The flaws of Home Price Index are glaring :
Only homes backed by Fannie Mae or Freddie Mac are included in the index. In today’s market, because of the FHA’s popularity, that leaves 1 of 3 homes “uncounted”.
Only home resales are counted. New home sales are omitted entirely.
The data comes with a 60-day delay. The October market is different from July’s.
Despite these shortcomings, however, the Home Price Index remains relevant. It’s among the most through home valuation models and it’s often used by economists and policy-makers.
When the Home Price Index is rising, Wall Street and Capitol Hill take notice. For residents of “Main Street”, however, the data may not be as important. To get local, up-to-date market statistics in Michigan State University, for example , talk with a professional real estate agent or Contact Don Grimes at Amera Mortgage
Since peaking in April 2007, the FHFA’s Home Price Index is off 17.6 percent.
For homeowners in high-cost areas nationwide, conforming and FHA loan limits have dropped by as much as 14 percent.
Effective October 1, 2011, the temporary mortgage loan limits that allowed for non-jumbo loan sizes of up to $729,750 are no longer.
$729,750 is above the “normal” loan limit of $417,000.
The elevated limits were put in place in 2008 as the economy and financial sector entered its crisis. At the time, there was little private money to serve buyers and would-be refinancers whose loan sizes exceeded Fannie Mae and Freddie Mac’s maximum $417,000 loan limits.
For most people whose loan sizes exceeded that threshold, mortgage financing was unavailable. There were no lenders to back the loan size.
This was of particular importance in places such as New York City, Los Angeles and Washington, D.C. where home prices routinely top $1 million. For people in these areas, unless they had a downpayment that could lower their respective loan sizes to $417,000 or lower, mortgages were mostly unavailable.
Congress recognized this and, as a result, gave Fannie Mae and Freddie Mac temportary authorization to purchase and securitize home loans of up to $729,750 in value, depending on where the subject property was located.
The program helped housing, leading Congress to pass more permanent, location-specific loan limits. Later that same year, Congress passed the Housing and Recovery Act of 2009 which, in part, made high-cost loan limit pricing permanent, albeit at $625,500.
The $729,750 temporary limits expired Friday, September 30, 2011. Today, the maximum allowable conforming loan size is $625,500.
If you live in a high-cost area, therefore, take note. Mortgage rates may be low, but the amount of loan for which you qualify may be less than you expect, and you may find yourself ineligible.
Mortgage markets deteriorated last week as optimism for a Greek rescue package increased, and as U.S. consumers showed that, despite falling income levels, spending will not be slowed.
As reported by the government, household income dropped in August, falling 0.1 percent and marking the first monthly dip since 2009. Yet, consumer spending still rose, tacking on 0.1 percent. Consumer spending accounts for 70 percent of the U.S. economy.
In addition, last week Eurozone leaders approved a funding increase for the European “bailout fund”. The additional funding raises the probability that Greece will avoid default on its sovereign debt, and that other nations including Italy, Spain, Ireland and Portugal will avoid similar default scenarios.
The moves drew money away from mortgage markets, causing rates to rise.
Conforming mortgage rates in Michigan climbed last week, stymying would-be refinancers in search of the lowest mortgage rates in 60 years. Nationally, fixed rate mortgages were higher by as much as 0.25%.
This week, rates may continue climbing.
First, European leaders are expected to finalize the details of a Greek aid package, a move that would reverse the “safe haven” bid which has played a large role in keeping U.S. mortgage rates lows.
Second, the jobs report is due.
Economists are expecting 65,000 net new jobs in September and a slight increase in the Unemployment Rate. A deviation from either consensus expectation should cause mortgage rates to move.
If it’s shown that more than 65,000 jobs were created last month, mortgage rates should rise on the prospect of a recovering economy. To the contrary, though, if it’s shown that fewer than 65,000 jobs were created, mortgage rates should fall.
The jobs report will be released Friday morning, 8:30 AM ET.
If you’re shopping for a mortgage right now, be aware that rates could move in either direction, but there’s a lot more room for rates to rise than to fall. The “safe” course of action is to lock a rate today.
Despite the lowest mortgage rates of all-time, home buyers are slowing the pace at which they’re buying homes.
According to the National Association of REALTORS®, on a seasonally-adjusted basis, the Pending Home Sales Index fell 1 percent in August.
The Pending Home Sales Index measures homes under contract, but not yet sold, nationwide. In this respect, the Pending Home Sales Index is a forward-looking housing market indicator; a predictor of future home sales.
It’s one of the few national indices that “looks ahead” to future market conditions. Most housing data, by contrast, describes past events.
On a regional basis, only the South Region showed improvement in August’s Pending Home Sales Index report :
Northeast Region: -5.8%
Midwest Region : -3.7%
South Region : +2.6%
West Region : -2.4%
That said, even the value of regional data can be questioned. Like all things in real estate, the number of homes going under contract will vary on the local level.
For example, in the Northeast Region where pending home sales slipped in August, there are close to a dozen states. Some of those states performed better than others, and there is no doubt that cities and towns exist in the region in which pending home sales actually climbed.
As a national/regional report, the Pending Home Sales Index cannot show local market data and, for that reason, it’s somewhat irrelevant to everyday buyers and sellers in East Lansing. If you’re in the market to buy or sell a home today, it’s your local housing market data that matters to you.
We watch the Pending Home Sales Index because it paints a broad picture of housing nationwide. To get local market conditions, though, you’ll want to talk with a local real estate professional.
Standard & Poors released its monthly Case-Shiller Index this week. The Case-Shiller Index measures home price changes from month-to-month, and year-to-year, in 20 select U.S. cities. It also reports a “national” index; a composite of the values in said cities.
The most recent Case-Shiller Index shows a 0.9% rise in home values from June to July 2011. Home values were higher in 17 of the 20 tracked cities. Only Phoenix and Las Vegas fell. Denver was flat.
Also noteworthy is that, of all of the Case-Shiller cities, Detroit posted the strongest 1-year, home price improvement. As compared to July 2010, home values are higher by 1.2 percent in Detroit. This bests even Washington, D.C. — long-believed to be the nation’s healthiest housing market.
That said, we should be careful of the conclusions we draw from July’s Case-Shiller Index — both on a city-wide level, and on a national level. This is because, as with most “home price trackers”, the Case-Shiller Index has flaws in its methodology.
The first Case-Shiller Index flaw is its limited scope. Although it’s purported to be a “nationa”l housing index, the data that comprises the monthly Case-Schiller Index is sourced from just 20 U.S. cities. These 20 cities represent just 0.6% of the more than 3,100 municipalities nationwide.
The second Case Shiller Index flaw is that the sample sets include single-family, detached homes only. iCondominiums, multi-unit homes, and new construction are specifically excluded from the Case-Shiller Index.
In some markets, “excluded” home types outnumber included ones.
And, lastly, the Case-Shiller Index is flawed in that it takes 2 months to gather data and report it. It’s nearly October, yet we’re still discussing the real estate market as it existing in July. For buyers and sellers in Okemos , July in ancient history.
The Case-Shiller Index is useful for tracking long-term trends in housing, but does little to help individuals with their choices to buy or sell a home. For relevant, recent real estate data, talk to a real estate agent in your market. Real estate agents are often the best source for real-time, real estate data.
According to the Census Bureau, the number of new homes sold slid for the fourth straight month in August, easing 2 percent from July. On a seasonally-adjusted, annualized basis, home buyers bought 295,000 newly-built homes last month.
August marked the lowest new home sales tally since February. News outlets are jumping on the story, with at least one calling it a “blow” to the housing market.
That’s an unfair assessment.
It’s tough for the new home market to tally big sales numbers when the number of homes for sale is dwindling and, in August, that’s exactly what we saw. The number of new homes for sale nationwide fell to 162,000 last month. This is the fewest number of new homes for sale since at least 1993, the first year the Census Bureau tracked such data.
In other words, using New Home Sales as a housing market gauge may be misleading. A better metric may be new home supply.
In August, new home supply edged 0.1 months higher to 6.6 months. This means that, at today’s sales pace, the complete new home inventory would be sold out in 6.6 months.
It’s the second-fastest reading in 2 years.
The new home market represents an interesting opportunity for home buyers in Lansing. Builders are facing new competition from bank-owned homes and foreclosures, dragging builder confidence to all-time lows. Furthermore, builders have low expectations for the next 6 months.
As a buyer, you can use this to your advantage. Builders may be more willing to negotiate on price and finishes versus this time last year. You may find a good “deal” in new construction once you go in search of it.
Posted by: Don Grimes - Loan Officer at 5:18am
Tags: census bureau, new home sales, new home supplies.
According to the National Association of REALTORS®, Existing Home Sales rose 8 percent in August from the month prior, and 19 percent as compared to August of last year.
“Existing homes” are homes that are previously owned; ones that cannot be considered new construction.
A total of 5.0 million existing homes were sold last month on a seasonally-adjusted, annualized basis. This is slightly better than the 12-month home resale average, a statistic partially powered by “distressed sales”. Distressed homes — homes in various stages of foreclosures or sold via short sale – accounted for 31 percent of all home resales in August.
At the current rate of sales, the national home resale inventory would be depleted in 8.5 months. This pace is a full month faster as compared to July, and the lowest home supply reading since March 2011.
There are currently 3.58 million existing homes for sale nationwide
29 percent of home buyers paid cash in August
Real estate investors bought 22% of homes in August, up from 18% in July
Home prices throughout East Lansing are based on Supply and Demand and, at least right now, it appears the supply is dropping. Furthermore, with mortgage rates at all-time lows, it’s reasonable to expect demand to pick up. These two conditions should lead home prices higher.
If you’re shopping for a home right now, recognize the trends and work them to your advantage. It may be “cheapest” to buy now.
Posted by: Don Grimes - Loan Officer at 9:23am
Tags: : distressed homes, existing home sales, existing home supply
Mortgage markets improved last week as the Federal Reserve provided new market stimulus and the Eurozone continued to grapple with Greek’s sovereign debt issues.
Conforming mortgage rates fell in Michigan last week overall, dropping for the second straight week.
For rate shoppers, the best day on which to lock a mortgage rate last week proved to be Thursday.
Fresh off the Federal Reserve’s Wednesday afternoon announcement that the group will launch a $400 billion program in support of longer-term bonds, mortgage rates fell. This occurred because mortgage rates are based on the price of mortgage-backed bonds, and mortgage bonds are a beneficiary of the Fed’s new program.
Those gains were short-lived, however, because Friday morning, when the market opened, mortgage bonds were deteriorated, and that momentum carried through to the afternoon.
By the time the markets closed for the weekend, nearly all of the Fed-led gains had been drained from mortgage bonds.
Within a matter of 48 hours, the average 30-year fixed-rate mortgage rates had plunged — then surged — 0.250 percent.
The speed at which rates changed underscores how tough it can be to shop for a mortgage these days. If you were quick on Thursday, you locked your rate at its low. If you “slept on it”, though, or even took too much time to think, you not only missed the best mortgage rates in more than 50 years, you missed it by entire quarter-percent.
On a $200,000 mortgage, that’s an approximately monthly payment difference of $30 per month.
This week, mortgage rates should be similarly volatile. There is a lot of economic news set for release, and the Eurozone is rumored to have a plan to save Greece from debt default. Depending on the strength of said data, and the passage of a Greek default plan, just how mortgage rates will change is unknown.
If you’re shopping for mortgage rates, the safe path is to lock what you can. Mortgage rates may fall this week, but what if they don’t? Rates have a lot farther to rise than to fall.
Single-Family Housing Starts fell for the second consecutive month, dropping to a seasonally-adjusted, annualized 417,000 units in August 2011.
A “Housing Start” is defined as a home on which ground has broken.
We shouldn’t put too much faith in the findings, however. Although housing starts were lower last month, as noted by the Census Bureau, the margin of error in the August Housing Starts report exceeded the actual result.
From the official report:
August’s Published Results : -1.4% from July
August’s Margin of Error : ±10.3% from July
Therefore, August’s Housing Starts may have actually increased by up to +8.9% from July, or it may have dropped as much as -11.7%. We won’t know for sure until several months from now, after the Census Bureau has gathered more housing data.
One thing is certain, though — the long-term trend in Housing Starts is “flat”. There has been little change in new home construction since last summer.
The same can’t be said for Building Permits.
Considered a pre-cursor to Housing Starts, Single Family Building Permits climbed 2.5 percent with a minuscule Margin of Error of ±0.9 percent.
When permits are issued, 86 percent of them begin break ground within 60 days. Therefore, expect Housing Starts and new home inventory to rebound in the months ahead.
For now, housing remains steady. And, with mortgage rates at all-time lows, homebuyer purchasing power in an around Lansing is higher than it’s been in history. If you’re in the process of shopping for a home, talk with your lender to plan your mortgage budget.
Posted by: Don Grimes - Loan Officer at 12:56am
Tags: building permits, census bureau, housing starts,dongrimes,amera mortga
The Federal Open Market Committee adjourns from a two-day, scheduled meeting today, the sixth of 8 scheduled meetings this year, and the seventh Fed meeting overall.
The FOMC is a designated, 12-person committee within the Federal Reserve, led by Fed Chairman Ben Bernanke. The FOMC is the voting members for the country's monetary policy. Among its other responsibilities, the FOMC sets the Fed Funds Rate, the overnight rate at which banks borrow money from each other.
Note that the "Fed Funds Rate" is different from "mortgage rates". Mortgage rates are not set by the Fed. Rather, they are based on the price of mortgage-backed bonds, a security traded among investors.
As the chart at top illustrates, the Fed Funds Rate and conforming mortgage rates in Okemos have little correlation. Since 1990, the two benchmark rates have been separated by as much as 5.29 percent, and have been as close as 0.52 percent.
Today, the separation between the Fed Funds Rate and the national average for a standard, 30-year fixed rate mortgage is roughly 4 percent. This spread will change, however, beginning 2:15 PM ET Wednesday. That's when the FOMC adjourns from its meeting and releases its public statement to the markets.
There is no doubt that the Fed will leave the Fed Funds Rate in its current target range of 0.000-0.250%; Fed Chairman Bernanke plans to leave the benchmark rate as-is until at least mid-2013. However, the Fed is expected to add new support for markets.
Unfortunately, there are few clues about how the Fed will support markets, and there is no consensus opinion regarding the size of the said support. As a result, mortgage rates should be bouncy today. First, they'll be volatile ahead of the Fed's statement. Then, they'll be volatile post-Fed statement.
Even if the Fed does nothing, mortgage rates will change. This is because Wall Street is prepping for an announcement and -- no matter what the Fed says or does -- investors will want to react accordingly.
When mortgage markets are volatile, the safest move is to lock your mortgage rate in. There too much risk to float.
Posted by: Don Grimes - Loan Officer at 6:47am
Tags: ben bernanke, fed funds rate, fomc, don grimes,amera mortgage
Homebuilders are feeling worse about the market for new homes nationwide.
With construction credit tight and competition from foreclosures increasing, the National Association of Homebuilder's Housing Market Index slipped 1 point in September, falling to levels just below the index's 12-month average.
The HMI measures homebuilder confidence nationwide. It's the result of 3 separate homebuilder surveys, each designed to measure a specific facet of the homebuilder's business.
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?
Each component survey showed a drop-off from August. Responses fell 1 point, 2 points, and 2 points, respectively. Together, September's composite reading was 14 out of a possible 100 points. Readings over 50 are considered favorable.
The HMI not been above 50 since April 2006.
With homebuilder confidence low -- and stagnant -- buyers of new homes Lansing in should remain alert for "deals". Builders are more likely to offer free upgrades and other concessions to incoming buyers. The availability of such deals may increase as the seasons change and as the year comes to a close.
Low mortgage rates are making new homes attractive, too. Last week, 30-year fixed rate mortgage rates fell to their lowest levels of all-time. As compared to just 8 weeks ago, 30-year fixed rate mortgage payments are lower by 5 percent at all loan sizes, down $27 per month per $100,000 borrowed.
Mortgage bonds worsened last week as Eurozone default fears eased abroad, and expectations for a domestic stimulus increased.
Mortgage rates rose for the first time in three weeks last week, pushing conforming and FHA mortgage rates in Michigan off their all-time, historical lows. Rates were at their lowest Tuesday morning, then rose through Friday's afternoon closing.
Markets open this week with an eye toward the world's central banks.
In the Eurozone, central bankers (continue to) discuss the debt burdens of Greece and whether a coordinated intervention is necessary. Without it, some economists believe that the nation-state will default on its sovereign debt, which would then create additional financial stress within other nations in the region.
Italy is included among those countries.
In the United States, central bankers are making equally-important choices.
The Federal Open Market Committee will emerge from a 2-day meeting Wednesday and is expected to announce new stimulus for the U.S. economy.
Since 2009, the Federal Reserve has twice stimulated the economy via an open-market, bond buying initiative. The programs created demand for mortgage bonds which, in turn, lowered mortgage rates for U.S. homeowners. If the Fed chooses this path a third time, expect for mortgage rates to fall in East Lansing.
If the Fed's sponsored stimulus is something else, however -- or if the Fed choose to do nothing -- mortgage rates may rise.
There is economic data due this week, including the Existing Home Sales and Housing Starts report, but it will be the world's central bankers that sit in spotlights.
Expect volatile mortgage rates this week. Wall Street can only guess what governments will do to stimulate their respective economies and can lead to wild swings in pricing. The "safe play" is to lock a rate while we're still near all-time lows.
Once rates reverse higher, they're expected to rise quickly.
Posted by: Don Grimes - Loan Officer at 11:47am
Tags: eurozone, federal reserve, greece ,don grimes,amera mortgage
On an annual basis, foreclosure filings fell last month. As compared to August 2010, last month's foreclosure filings dropped 33 percent. "Foreclosure filing" is a catch-all term, comprising default notices; scheduled auctions; and bank repossessions.
The study was published by foreclosure-tracking firm RealtyTrac and this month's report reveals a slowing rate of foreclosure within each of the Top 10 most foreclosure-heavy states.
All news is not good, however.
On a monthly basis, foreclosure filings spiked, led by a surge in default notices. Default notices made their biggest one-month jump since August 2007 on the way to a 9-month high last month. Default notices are the first step in the foreclosure process so this jump may foreshadow a large number of bank repossessions as foreclosures "make their way through the process".
It's also noteworthy that just 6 states housed half of the nation's bank repossessions last month.
California : 18 percent of bank repossessions
Florida : 8 percent of bank repossessions
Georgia : 7 percent of bank repossessions
Michigan : 6 percent of bank repossessions
Texas : 6 percent of bank repossessions
Arizona : 6 percent of bank repossessions
As a home buyer in Lansing , foreclosures can save you money. The National Association of REALTORS® reports that distressed homes sell with typical discounts of 20 percent versus comparable, non-distressed homes. However, buying a home from a bank is a different process from buying a home from a "person". Contract negotiations are different and it can take months to finally close on a foreclosed home.
If you're buying a foreclosed, therefore, enlist the help of a professional real estate agent. Real estate agents can help you navigate the sometimes-complicated world of foreclosures, and help you come out ahead.
Posted by: Don Grimes - Loan Officer at 4:05am
Tags: bank repossessions, default notices, foreclosures,don grimes,amera mor
It's no secret. Rates are low right now. And, it's not just mortgage rates, either -- all types of rates are scraping rock-bottom. Borrowing rates, lending rates and savings rates are at or near their all-time lowest levels.
As a homeowner in Lansing , one way to take capitalize on today's low rates is to apply to refinance your home. But there are other ways to take advantage, too.
In this 5-minute piece from NBC's The Today Show, you'll learn of a half-dozen ways to exploit the current rate environment, including:
Refinance a car loan from a high rate to a low rate, for cheap, in an hour
Balance transfers between credit cards with teaser rates lasting up to 20 months
Move some savings to an "online" bank where savings rates are higher
The interview's theme is to examine both where you're spending and saving your money, and make sure you're doing what's best for your budget.
Federal Reserve Chairman Ben Bernanke has pledged to hold the Fed Funds Rate near 0.000% until at least 2013. So long as the Fed Funds Rate is low, there will be places you can save.
After 3 straight months of gains, the Pending Home Sales Index slipped 1 percent in July. The monthly report is published by the National Association of REALTORS® and measures the number of home under contract to sell nationwide.
The Pending Home Sales Index is closely watched by Wall Street and analysts because it’s a forward-looking housing market indicator. Unlike most housing market data, though, Pending Home Sales forecasts a future housing market event. In this case, the Existing Home Sales report.
In its methodology, the Pending Home Sales Index states that 80% of homes under contract close within 2 months, with most of the remaining home going to closing within Months 3 and 4.
We would expect home sales data to taper into the fall buying season, but this year, they may taper more than normal. This is because, in a separate report, the National Association of REALTORS® said that contract cancellation rates are running high.
As compared to a 4 percent contract cancellation rate in May 2011, June and July both registered 16 percent. This means that fewer homes tallied as part of July’s Pending Home Sales Index will show up as “closed sales” this fall.
Contracts can be canceled for any number of reasons including more stringent mortgage guidelines, appraisals falling short of the purchase price, and changing mortgage loan limits.
For home buyers in Lansing , the Pending Home Sales Index may represent an opportunity. Not only are fewer homes going under contract nationwide, but with cancellation rates spiking, sellers may be more willing to “make a deal”.
Note, though, like all real estate, the pace at which homes go under contract is a “local” statistic; you can’t assume national data applies to all markets equally. Your home market, for example, may out-perform — or under-perform — the national average.
For a closer look at what’s happening on your street including the speed at which homes are selling, talk to a local real estate agent.
Single-Family Housing Starts fell to a seasonally-adjusted, annualized 425,000 units in July, according to the Census Bureau.
A “Housing Start” is defined as a home on which construction has started and ground has broken.
Furthermore, Single-Family Housing Starts were revised lower for both May and June of this year, by 6,000 units and 2,000 units, respectively.
The data may be worthless, however.
Like in most months, the government’s official report states that the Housing Starts numbers have a margin of error exceeding their actual measurement. Mathematically, this renders the data statistically irrelevant.
July Published Results : +4.9%
July Margin of Error : ±8.9%
In other words, July Housing Starts made have increased by as much as 13.8%, or they may have dropped up to 4.0%. We won’t know for certain until several months from now, when the Census Bureau gathers more data.
Regardless, the trend in Housing Starts has been flat since last summer. July’s reading is in-line with the 12-month average and, not surprisingly, New Home Sales have been mostly flat over the same time span.
Also included in the Housing Starts report is the Building Permits tally. As compared to June, permits were higher by a half-percent nationwide, with varying results by region.
Northeast : +2.9 percent from June
Midwest : +0.0 percent from June
South : -1.4 percent from June
West : +4.9 percent from June
When permits are issued, 86 percent of them start construction within 60 days. This means that new home sales and housing stock should follow the Building Permits trend, but on a 2-month delay.
Two months after posting their worst confidence reading of 2011, home builders say they foresee no improvement in the immediate- or medium-term market for new homes nationwide.
The HMI is a monthly housing survey, published by the National Association of Homebuilders. It’s scored on a scale of 1-100 with readings over 50 suggesting favorable home builder conditions. Readings under 50 suggest unfavorable conditions.
The Housing Market Index has been below the 50-point benchmark since 2006.
To calculate the HMI, home builders are asked 3 separate questions, each addressing the different element of the new home sales business.
How are today’s market conditions for the sale of new homes?
How do you expect market conditions to be 6 months from now?
How are the current foot traffic of prospective buyers?
Based on the August answers to these questions, builders are witnessing an improvement with the current market, partially fueled by low mortgage rates, but expect momentum to fade into early-2012.
As a home buyer in Okemos , this may bode well for you. If you can wait to buy a home, you may find builders more willing to concede on price or upgrades.
The other side of that conversation, though, is that while you may save money on the home, you may lose it in your monthly payments. Rising mortgage rates can quickly zap your savings — adding tens of thousands in interest costs to your budget long-term.
For now, home prices remain low and mortgage rates do, too. Home affordability is at an all-time high. Take advantage of what the market gives you.
Mortgage markets improved again last week. The combination of global economic uncertainty plus a dour outlook from the Federal Reserve pushed mortgage bonds to highs for 2011, and drove mortgage rates below their all-time lows.
Bonds were volatile, driven by the stock market’s gyrations.
On 4 consecutive days, the Dow Jones Industrial Average moved by more than 400 points. Rate shoppers in Michigan had no choice but to go along for the ride.
Tuesday, rates idled ahead of the Federal Open Market Committee meeting. There was speculation that the Federal Reserve would introduce a new round of economic stimulus but that didn’t happen. Instead, the Fed pledged to keep the Fed Funds Rate in its current range near zero percent until mid-2013, at least.
Mortgage rates dropped on the announcement and continued to drop until they fell to their lowest levels of the year — and of all-time — late Wednesday afternoon.
This proved to be the lowest rates of the week.
Thursday and Friday were marked by better-than-expected jobless figures and an improving Retail Sales number. Mortgage rates rose slightly.
This week, mortgage rates should be equally as volatile.
In addition to new bailout talks within the Eurozone, there is a bevy of economic data due for release in the U.S., as well as a full Fed speaker docket:
Monday : Homebuilder Confidence Survey; Fed President Lockhart speaks
Tuesday : Housing Starts; Building Permits
Wednesday : Producer Price Index; Fed President Fisher speaks
Thursday : Existing Home Sales; Fed President Dudley speaks
Friday : Fed President Pianalto speaks
Mortgage rates have been trending lower in recent weeks and there are few reasons to think that trend will reverse. However, mortgage markets can be wildly unpredictable — especially when acted upon by an outside force such as the Federal Reserve or the U.S. government.
Stimulus and rheotoric can change mortgage rates in a hurry.
Therefore, if you see today’s rates and they fit within your budget, consider locking something in. Once rates start to rise, they’re going to rise quickly.
According to RealtyTrac, a national foreclosure-tracking firm, the number of foreclosure filings nationwide fell 35 percent as compared to July 2010, a statistic suggesting that the housing market continues to improve.
“Foreclosure filing” is a catch-all term encompassing default notices, scheduled auctions, and bank repossessions.
Filings fell to a 44-month low in July 2011.
For all the improvement, though, activity remains concentrated in just a few states. More than half of all bank repossessions last month occurred in just a handful of states.
In July, 6 states accounted for 52% of activity.
California : 19% of all repossessions
Georgia : 8% of all repossessions
Florida : 7% of all repossessions
Texas : 6% of all repossessions
Michigan : 6% of all repossessions
Arizona : 6% of all repossessions
At the other end of the spectrum is Vermont. With just 11 repossessions for all of July, Vermont accounted for 0.016% of repossessions nationwide.
Distressed homes are in high demand with today’s home buyers. According to the National Association of REALTORS®, they account for 30% of all home resales. That’s no surprise, either.
Distressed homes typically sell at 20 percent discounts as compared to non-distressed ones.
But, if buying a foreclosure is in your agenda, be sure to do your homework. Buying bank-owned homes is different from buying from “people”. The contracts are different, the negotiations are different, and the homes are sometimes sold with defects.
If you plan to purchase a foreclosure in Okemos , therefore, be sure to speak with a licensed real estate agent first. There’s plenty of available information online but when it’s time to buy, have an experienced agent on your side.
The latest Non-Farm Payrolls survey from the Bureau of Labor Statistics shows that 117,000 net new jobs were created in July, thumping analyst estimates and surprising Wall Street investors.
In addition, May and June’s originally-reported figures were both revised higher:
May 2011 was revised higher by 28,000 jobs
June 2011 was revised higher by 28,000 jobs
The national Unemployment Rate slipped to 9.1 percent.
The jobs report’s strong readings would typically be a boon to stock market and a threat to mortgage rates. This is because more employed Americans means more disposable income spent on products and services; and more taxes paid to governments at the federal, state and local level.
This combination fuels consumer spending and supports new job growth, a self-reinforcing cycle that spurs economic growth and often to draw investors into equities.
This month, however, the market reaction has been decidedly different.
Since the Friday release of the July Non-Farm Payrolls report, the Dow Jones Industrial Average has lost close to 6 percent of its value. Furthermore, mortgage bonds — which typically sink on a strong jobs figure — have thrived.
High demand for mortgage-backed bonds have pushed mortgage rates below their all-time lows set last November; the biggest cause of which is Standard & Poor’s credit downgrade of U.S. government-issued debt.
Ironically, the credit rating downgrade sparked a surge of safe haven bidding that has been tremendous to rate shoppers and home buyers in Okemos and nationwide. Bond buyers are flocking to the U.S.
If you’ve been shopping for a mortgage, therefore, or recently bought a home, use this week’s action to your advantage. Call your lender and ask about rates. You may be surprised at what you find.
Tuesday, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.
The vote was 7-3 — the first time in 5 meetings that the nation’s Central Bank was non-unanimous and the first time since 1992 that the FOMC adjourned with as many as three dissenters.
In its press release, the FOMC had little good to say about the U.S. economy, noting that since its last meeting in July:
Growth has been “considerably slower” than expected
Labor market conditions have deteriorated
Household spendng has “flattened”
The Fed also noted that the housing sector remains depressed.
On the positive side, the Fed said that business investment in equipment and software continues to expand, and that energy costs have dropped and no longer contribute to inflationary pressures on the economy.
In fact, the Fed worries that inflation may be running too low for the country’s good.
To that end, the Federal Reserve has pledged to keep the Fed Funds Rate in its current range near 0.000 percent “at least until mid-2013″. This is a departure from prior statements in which the Fed gave no such date.
Mortgage market reaction to the FOMC statement has been positive this afternoon. Mortgage rates in Michigan are improving, but note that sentiment can shift quickly — especially in a market as uncertain as this one.
If today’s mortgage rates look good in your household budget, consider locking in a rate.
Mortgage rates continue drifting downward, despite — or because of — a ratings downgrade on long-term U.S. government debt. Standard & Poors issued a single-notch downgrade after Friday’s market close, from AAA to AA+.
Of the roughly $9.4 billion in publicly-held U.S. debt, 72 percent is long-term (i.e. with duration of 2 years or longer).
U.S. short-term debt was not downgraded.
When an entity — government, business, or other — is cited for a credit downgrade, it means that the risk of lending money to that entity has increased. In theory, higher risk should lead to higher borrowing costs and higher consumer rates.
Except in today’s U.S. Treasury and mortgage bond markets, the opposite is occurring. U.S.-backed bonds are in demand, leading rates lower. It’s an unexpected response to the S&P downgrade.
There are 3 main reasons why mortgage rates aren’t rising.
First, Wall Street is “brushing off” S&P’s downgrade, citing the rating agency’s opinion as flawed. This is, in part, the result of a supposed “math error” in the S&P findings, as caught by the U.S. Treasury.
Second, global finance leaders have made public statements since the Friday downgrade re-asserting their faith in the U.S. government’s ability to repay its debts. This is helped stabilize bonds as well.
And, third, of the three major rating agencies, only Standard & Poor’s downgraded long-term U.S. debt. Competitors Moody’s and Fitch instead chose to re-affirm the top-status rating for U.S. government-issued debt after last week’s debt ceiling accord.
The likely cause for falling rates today is that the global economy is showing signs of a slowdown and the U.S. Treasury market remains the largest and most liquid bond market in the world. Ergo, they’re relatively safe — despite the credit rating of the nation backing them.
Mortgage markets were especially volatile last week, taking rate shoppers in Michigan on a roller-coaster ride. The week’s news schedule was full. It included debt ceiling debates, jobs figures, and ongoing maneuverings within the Eurozone.
Each story a material impact on mortgage rates and, as a result, rates varied wildly from day-to-day.
Throughout the early part of the week, mortgage rates fell.
Monday, bond markets improved as leaks of the congressional debt ceiling agreement surfaced. Investors approved of the accord’s general terms and bought U.S.-backed debt to prove it. Tuesday, when the final agreement was reached and the terms were made public, mortgage rates dropped again.
This is because the debt ceiling agreement is based on spending cuts and tax increases. In response, analysts revised lower their respective growth estimates for the United States, benefitting bonds.
By Thursday, markets were in full rally mode.
On the eve of the July jobs report, traders flocked to the ultra-safe bond market; “whispers” put the net jobs created figure at a negative. Wall Street feared the worst. By Thursday’s close, mortgage pricing was at its best levels since November 2010.
Friday morning, though, markets recoiled. When the Non-Farm Payrolls report showed much-better-than-expected growth, it triggered a bond market sell-off and rates reversed higher. Rates rose more Friday than on any single day since November 30, 2010.
If you were quoted a mortgage rate on Thursday, on Friday, the same mortgage rate cost 1 discount point more.
This week, rates may rise or fall — it’s too soon to tell.
Friday afternoon, after markets closed, S&P downgraded the long-term debt of the U.S. government a notch. Typically, lower credit ratings means higher borrowing costs which leads to higher mortgage rates, among other things. However, it’s unclear how markets will react to the S&P decision.
Plus, the Federal Open Market Committee meets Tuesday and that, too, can affect markets.
As always, the prudent move is to lock your mortgage rate if its payment and terms are sensible. There’s too much volatility to know what markets might do tomorrow.
Mortgage rates in Michigan plunged to new 2011 lows this week.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the national, average 30-year fixed rate mortgage fell to 4.39% this week — the lowest 30-year fixed reading since November 18, 2010.
The 0.16 drop from last week is the largest one-week rate drop in more than 2 years, and, although the 30-year fixed remains above its all-time lows from November 2010, two other benchmark products made new records this week.
Both the 15-year fixed rate mortgage and the 5-year ARM are reporting lower than at any time in recorded history.
Freddie Mac puts those average rates at 3.54% and 3.18%, respectively.
Mortgage rates are dropping for several reasons, including :
U.S. economic growth is slower-than-expected
The U.S. government plans to curb its spending
Global investors seek the safety of U.S.-backed bonds
The first two items are unfavorable for business and, as a result, stock markets have sold off all week. The Dow Jones Industrial Average posted an 8-day losing streak and Thursday it made its biggest one-day loss since 2008.
When equities lose, bonds tend to gain. This leads mortgage rates lower.
Mortgage rates also fell on “safe haven” buying; bond buys made because of their relative safety to risky assets. Mortgage bonds are considered “safe” so when economies and geopolitics are uncertain, mortgage rates improve.
Going forward, there are reasons for mortgage rates to fall again. The economy won’t rebound overnight and neither will investor confidence. However, markets can be fickle and rates have been known to reverse quickly.
With rates as low as they’ve been history, it’s an advantageous time to refinance your home loan, or purchase a new property.
More homes are going under contract this summer than went during the winter or spring seasons. Many of these homes are scheduled for late-August/early-September closings.
If your home is among them, plan ahead.
Like for the rest of the U.S. workforce, Labor Day is a popular vacation time in the real estate, title and mortgage industries. Closings come together more slowly when the parties involved are on holiday. In addition, when issues arise, they are often slower to resolve because not everyone is “present”.
Therefore, if you’re under contract to buy or sell your home, or have a refinance in-process with a lender, get proactive with your home and your loan. Finalize your approval as quickly as possible.
Here are some tips to help your loan clear faster:
Prepay your first year of homeowners insurance, effective your closing date. Provide proof of payment to your lender.
Document and deposit all gifts and retirement withdrawals to be used at your closing as early in the process as possible.
Get Power of Attorney forms signed by all parties, and lender-approved, if applicable.
When your lender makes a paperwork request, fulfill the request within 24 hours.
There are steps you can take to make your closing go more smoothly, too.
First, if your transaction is purchase, don’t leave your walk-through for the last-minute. Schedule it for as early as reasonable. This way, if there’s an issue, there’s ample time to resolve it. Remember, it’s harder to solve problems when one or more parties to the transaction is away on vacation.
Second, if you have planned time off between now and your closing, make it known, and be reachable in the event of emergency by phone, email or both.
Lastly, if possible, avoid scheduling your closing for the Friday before Labor Day or the Tuesday after. Real estate, title and lender offices are notoriously short-staffed and overworked on these two days. Routine tasks take longer than usual.
You can’t stop people from going on vacation, but you can plan for it. It would be foolish not to.
At 8:30 AM ET Friday, the Bureau of Labor Statistics will release the July 2011 Non-Farm Payrolls report. Mark it in your calendar. If you’ve been watching mortgage rates fall to new all-time lows this week and fear a mortgage rate reversal, Friday could be the day.
The monthly Non-Farm Payrolls data can swing a big stick in mortgage markets.
More commonly called “the jobs report“, Non-Farm Payrolls details the U.S. workforce, providing sector-by-sector analysis of workforce, as well as the national Unemployment Rate.
The jobs report affects mortgage rates because of how important jobs are to the U.S. economy.
When there are more working Americans:
There’s more consumer spending, a boost to businesses
There’s more tax collection, a boost to governments
There’s more personal savings, a boost to households
In July, analysts anticipate 85,000 new jobs created. This would be a 4-fold increase from June’s 18,000 figure.
The Unemployment Rate is expected to remain unchanged at 9.2%.
For rate shoppers and home buyers in Michigan , these Wall Street expectations can be as important as the actual data itself. Right now, traders placing bets, expecting 85,000 new jobs in July. If the final tally is more than 85,000, traders will load up on equities at the expense of bonds. This is because job growth is good for the economy.
When bonds sell off, rates rise.
Conversely, if jobs growth is less than 85,000, mortgage rates should drop.
Mortgage rates are near all-time lows this morning. By Friday, they could rise. The safe move is to lock your rate today. Rates may fall when the jobs report is released, but there’s much more room for rates to rise.
The United States is projected to reach its legal $14.294 trillion debt limit today. The limit was set by Congress February 12, 2010. The U.S. Treasury may not issue new debt beyond the debt ceiling.
Since April 2011, Congress has debated ways to remain below the nation’s $14.292 trillion borrowing limit. The debate commenced with the passage of the 2011 U.S. Federal Budget which featured a $1.645 trillion deficit.
This multi-trillion dollar deficit ensured that the debt ceiling would be touched at some point during the current fiscal year.
That date was May 16. It took an intervention from the Treasury Secretary to temporarily extend the limits; an “extraordinary measure” meant to keep the U.S. government from defaulting on its debt.
With additional room to borrow, then, the U.S. Treasury’s new debt ceiling date was moved to August 2. Congress has been debating the federal budget since mid-May with the dual-goal of (1) Remaining below the federal debt limit, and (2) Creating a budgetary surplus for the future.
For home buyers and rate shoppers in East Lansing , this is an important development. The debt ceiling agreement will influence mortgage markets and, as a result, require amendments to home affordability calculations. As mortgage rates change, your purchasing power does, too.
Unfortunately, we don’t know in which direction mortgage rates will go.
Since the prospect of a deal was first hinted Friday, mortgage rates have been improving. Conforming, 30-year fixed rates are down nearly 0.250 percent, lowering a $150,000 mortgage payment by $22 per month.
The final deal terms of a deal, however, could lead rates higher.
As always, the safest play is to lock your mortgage rate if you are comfortable with its proposed payment. Yes, mortgage rates may move lower in the future but, then again, maybe they’ll move higher.
Mortgage markets improved last week as the U.S. debt ceiling debate continued on Capitol Hill. Bonds traded in a range Monday through Thursday before breaking higher Friday morning.
30-year fixed conforming mortgage rates improved in Michigan last week, falling to levels just north the product’s all-time low set in November 2010.
5-year ARMs improved last week, too. The benchmark adjustable-rate mortgage’s average national rate is now tied with its all-time low, also set last November.
This week, the direction of mortgage rates depends on two events:
The resolution of the U.S. debt ceiling debate, due Tuesday
The July Non-Farm Payrolls report, due Friday
Mortgage rates will be volatile as markets grapple with the expectations for the above events, and their eventual outcomes.
Sunday evening, for example, congressional leaders reached an agreement to raise the U.S. debt ceiling by $2.1 trillion, and to introduce $2.5 trillion in budget cuts within 10 years. The deal must pass Congress, however, and until it does, speculation will push mortgage rates around.
Friday’s jobs report should swing mortgage rates, too.
After starting the year strong, the 2011 jobs market has faded. Net new jobs have dropped 5 months in the row and the national Unemployment Rate is climbing. Weak job growth portends weak consumer spending and a weak economy — typically two outcomes that are good for mortgage rates.
Because of doubt cast by the debt ceiling debate, though, it’s too soon to know how Wall Street will react to the jobs data — strong or weak.
For now, mortgage rates remain low. They may fall further, or they may not. The “safe bet” is to lock.
Standard & Poors released its May 2011 Case-Shiller Index this week. The index measures change in home prices from month-to-month, and year-to-year, in select U.S. cities.
May’s Case-Shiller Index showed a 1 percent increase from April 2011. Home values rose in 16 of the Case-Shiller Index’s 20 tracked markets. Only Detroit, Las Vegas and Tampa fell. Phoenix was flat.
Don’t look too far into the findings, though. Like the FHFA’s Home Price Index, the Case-Shiller Index is rife with flaws.
The first flaw of the Case-Shiller Index is its limited geography. Despite being positioned as a national housing index, Case-Schiller Index is sourced from just 20 cities nationwide. There are more than 3,100 municipalities nationwide.
The Case Shiller Index’s second flaw is that it ignores all home types excepts for single-family, detached homes in its findings. Condominiums, multi-family homes, and new construction are not included in the Case-Shiller Index.
In some markets, these excluded home types outnumber the included ones.
Furthermore, the Case-Shiller Index is flawed in that it takes 60 days to release.
The Case-Schiller Index reports on a housing market from 2 months ago — hardly helpful for today’s buyers and sellers in the Greater Lansing Area , trying to make sense of today’s real estate market data.
When you want real-time housing market data, therefore, look past the Case-Shiller Index and talk to a real estate professional instead. It’s where you’ll get your best, most relevant information.
According to Census Bureau data, the number of new homes slid 1 percent from May. On a seasonally-adjusted, annualized basis, home buyers bought 312,000 newly-built homes last month.
It’s the third straight month of falling sales and the headline data casts the Okemos housing market in a negative light.
Upon closer inspection, however, the numbers appear quite strong.
First, sales are down marginally. Total units sold have dropped just 2 percent from the highs of the year. And, second, the number of newly-built homes for sale is down markedly from last year
At today’s sales pace, the complete new home inventory would be sold in 6.3 months – the quickest sell-out window since the expiration of the 2010 federal home buyer tax credit.
Builders are feeling better about their business, too.
After falling to a 9-month low, homebuilder confidence rebounded this month, boosted by expectations for a strong fall season. For buyers across Michigan , this could be seen as a market-shifting signal.
When builder confidence rises, negotiating for upgrades and price reductions can be tougher; “good deals” get scarce.
If you’re a home buyer and are considering new construction, don’t let the headlines fool you. Sales figures are slipping, but that’s because there are fewer homes are for sale nationwide. The inventory is shrinking and that can push home prices higher.
With mortgage rates still low, today’s market may be your best value of the year.
Mortgage markets worsened last week as the Greek sovereign debt situation came closer to final resolution, and as the U.S. housing market showed signs of life.
After many weeks, European leaders agreed on a financial package for Greece that featured favorable loan terms designed to slow Eurozone contagion, along with a built-in, 37 billion euro “haircut” for private-sector investors.
The accord pleased Wall Street. Equities rallied after the announcement. Mortgage bonds sank.
Bonds also sank after a strong home builder confidence report Monday.
Last week, conforming and FHA fixed mortgage rates increased in Michigan and for the first time in 3 weeks. Adjustable-rate mortgages slipped slightly.
The interest rate spread between the Freddie Mac 30-year fixed rate and 5-year ARM is back near its all-time high.
This week, mortgage rates will be guided by Congress’s on-going U.S. debt ceiling debate. The United States government is expected reach its legal $14.294 trillion debt limit August 2, 2011. Congress must either vote to raise the debt ceiling, or take steps to reduce debt prior to August 2.
It’s unclear in which direction Congress will vote. Therefore, mortgage rates may be erratic until a deal is reached. If the debt limit is raised, expect mortgage rates to rise. This is because carrying high levels of debt can devalue the U.S. dollar and mortgage bonds are less valuable as the dollar weakens.
On the other hand, if Congress votes to make cuts in the budget, mortgage rates should fall. This is because fewer treasury securities will be issued, creating fewer inflationary pressures on the U.S. economy. Inflation is linked to higher mortgage rates.
Also this week : New Home Sales (Tuesday), Pending Home Sales (Thursday), Consumer Sentiment (Friday), plus Treasury auctions of 2-year, 5-year and 7-year notes. Each event can move mortgage rates so be ready to lock at a moment’s notice.
Mortgage rates remain low. By August 2, they could be much higher.
It’s the HPI’s second straight increase, and puts the monthly index at its highest point since January 2011.
As a home seller in Okemos , you may appreciate news such as “rising home prices”, but it’s important to remember that the Home Price Index has a several built-in flaws — the biggest of which its age.
Today, the calendar nearly reads August, yet, we’re still discussing May’s housing data. A 2-month delay does little to help buyers and sellers wanting to know the “right now” of housing.
Unfortunately, the Home Price Index data is even more aged than that.
Because the FHFA’s Home Price Index measures home prices as recorded at closing, the actual sales prices included in the index are from real estate contracts written 30-60 days prior.
In other words, when we look at the Home Price Index report for May, what we’re really seeing is a snapshot of the housing market as it existed in March. March’s housing market has little to do with the forces driving home prices today.
Today’s real estate market is driven by today’s economics.
The Home Price Index is a useful gauge for economists and law-makers; it shows long-term national trends in the housing market which can be used to allocate resources to a project, or to form new policy. For home buyers across the state of Michigan , though, it’s less helpful.
For today’s real estate buyers and sellers, there’s no substitute for real-time data. For that, talk to a real estate professional.
Google™ Calendar Managing Your Schedule Just Got Easier
Google™ is constantly coming up with innovative ways to provide us with quick and easy access to the information we need. In addition to hosting the biggest search engine in the world, Google™ also offers a great desktop search bar, a mapping program with detailed driving directions, and even a photo management system. Now Google™ has turned its sights on keeping our days organized with Google™ Calendar.
As with most of Google's applications, Google™ Calendar costs nothing and signing up is as easy as logging on to www.Google™.com/calendar and creating a free account. It will take you all of two minutes to accomplish this. Once you've registered, organizing your schedule is only a few clicks away. If you're still apprehensive, take comfort in knowing that Google™ Calendar works like most personal scheduling programs but with a few added perks.
For starters, Google™ Calendar is fairly user-friendly, offering daily, weekly, and monthly views of your schedule. The program also offers the ability to create personal calendars for things like American holidays or birthdays. Any calendar you set up can be easily integrated with Google™'s email program, Gmail. This allows you to quickly add events mentioned in Gmail conversations as well most other events you find online.
Google™ Calendar also gives you the ability to share your schedule with others and vice versa. Perfect for families on the go or business associates at opposite ends of the country, Google™ Calendar maintains your privacy by allowing you to pick and choose which events you want others to see. The program also allows you to plan and promote events by giving you the ability to send invitations as well as track RSVPs.
Perhaps the most exciting feature of Google™ Calendar is the options it gives you in terms of reminders. Whenever you schedule an important event, Google™ Calendar gives you the option of receiving a reminder via email, an online pop-up, or a SMS (short message service) which is a text message that arrives via your cell phone.
Google™ Calendar also has a really great tool which allows you to search all of your calendars for specific information. While the program integrates fairly well with most existing scheduling programs, it does require a little manipulation in some instances. One other feature worth noting is called "Quick Add". This enables you to add events to your schedule simply by clicking a link and then typing in the relevant event information in “natural language” (i.e. Tom's party next Saturday at 8:00pm).
Whether you're completely disorganized or simply on the fence about your current scheduling program, you may want to give Google™ Calendar a try. It may open your eyes to some interesting new options!
If you know of any helpful Internet tools, give me a call. I'd love to hear about them.
Home resales slipped for the 3rd straight month, according to data from the National Association of REALTORS®.
The Existing Home Sales posted a 1 percent drop from May as the number of homes sold fell to a seasonally-adjusted, annualized 4.77 million units. It’s the monthly report’s lowest reading since November 2010.
The report also showed the national supply of homes for sales rising to 9.5 months — also its highest reading since November 2010.
Home Supply is the amount of time it would take to exhaust the complete home inventory at the current pace of sales.
June’s Existing Home Sales data would have been stronger if not for a high contract cancellation rate. As compared to May’s 4 percent rate, June’s cancellation rate was 16 percent; an elevated figure that “stands out in contrast” to what’s typical, according to the REALTOR® trade group.
By region, home resale activity varied:
Northeast : -5.2% from May
South :+0.5% from May
Midwest : +1.0% from May
West : -1.7% from May
This disparity from region-to-region highlights an important housing market concept. Namely, that all real estate is local. Because just as the Existing Home Sales varies on a regional level, it varies on a state-wide level, too.
What’s true for California housing is not necessarily what’s true for Florida housing, for example. Each of the 50 states has its own trends, and within those 50 states, there are thousands of cities and neighborhoods, each with their own trends, too.
The “national housing market” doesn’t exist, so national data is rendered somewhat useless.
For data in East Lansing or your local market, talk to your real estate agent.
According to the Census Bureau, Single-Family Housing Starts rose to 453,000 on a seasonally-adjusted, annualized basis in June – a 9 percent spike from the month prior and the highest reading in 3 seasons.
A “Housing Start” is defined as a home breaking ground on new construction.
June’s reading is largest one-month jump since June 2009. The reading surprised Wall Street despite that the Homebuilder Confidence survey may have foreshadowed the results.
Monday, the National Association of Homebuilders reported that builders are more confident about the future of the new home sales market, and forecast a large increase in sales over the next 6 months.
For buyers of new construction, the news is mixed. Rising confidence may mean that builders in East Lansing are less willing to negotiate on upgrades and/or price, but rising construction levels add inventory to an already fragile market.
Adding to the nation’s home supply without a corresponding increase in buyer demand shifts negotiation leverage away from builders.
The Census Bureau also reported on Building Permits.
In June, permits for single-family homes rose by 1,000 units nationwide on a seasonally-adjusted, annualized basis. This, too, bodes well for housing because 89 percent of homes with permits start construction within 60 days.
Momentum should carry forward into fall.
If you’re buying new construction in Michigan , ask your real estate agent about local home supply, and how the market is trending. With mortgage rates low and the fall buying season approaching, you may find some of your best deals in the next few weeks.
One month after an unceremonious dip highlighted by poor sales figures and dim prospects for the future, the National Association of Homebuilder’s Housing Market Index rebounded two points to 15 in July.
The monthly Housing Market Index is scored on a 1-100 scale. Readings above 50 indicate favorable conditions for homebuilders and the “new home” market. Readings below 50 indicate unfavorable conditions.
The Housing Market Index has not read higher than 50 in more than 5 years.
As a housing metric, the HMI is actually a composite of three separate surveys, self-reported by builders. The surveys ask about current single-family home sales volume; projected single-family home sales volume; and current buyer foot traffic levels.
The most noteworthy reading is the rapid rise in Projected single-family home sales. Although builders aren’t experiencing more foot traffic, they think sales will spike between now and the New Year.
That could spell bad news for Michigan home buyers.
When builders harbor higher expectations for the future, they’re less willing to make concessions for upgrades and/or price. Your likelihood of getting “a great deal” as a buyer diminishes.
That’s why it’s good that mortgage rates are still so low. Low mortgage rates help with home affordability and can offset slight jumps in sale price.
Mortgage markets worsened last week as concerns for the global economy drove new rounds of “safe haven” buying. Fear continues to dominate mortgage bond market movement and Michigan rate shoppers are benefiting.
Conforming and FHA mortgage rates fell for the second straight week last week, and closed out Friday with favorable momentum to the downside.
There were three main mortgage market drivers last week.
The first is tied to the Eurozone.
Although the Greek Parliament reached agreement on austerity measures for the nation-state two weeks ago, concerns that a debt crisis could spill into Italy, Portugal, Ireland, and/or Spain resurfaced last week. The debt of both Ireland and Portugal was downgraded to Junk status, and Italy and Spain may follow soon.
U.S. bond markets gained on the news.
The second story was the just-released Fed Minutes. Notes from the FOMC meeting showed that Ben Bernanke & Co. debated a slowing U.S. economy, the weakening domestic jobs market, and whether a third round of economic stimulus would be necessary. This, too, dragged mortgage rates lower.
The third story is one that’s still forming — the U.S. Debt Ceiling Debate. For now, the issue remains on the market periphery, but as the August 2 debt limit deadline nears, expect more influence over day-to-day mortgage rates.
Other factors in mortgage rates this week include the Existing Home Sales report; Housing Starts data; Homebuilder Confidence Survey; and, Jobless Claims.
Mortgage rates are low but remain volatile. If you’re wondering whether now is a good time to lock your rate, consider that it’s better to be safe than sorry. If mortgage rates rise this week, the rise may be permanent.
Despite worsening jobless figures and an increase in the Cost of Living, Retail Sales are climbing. In June, for the 12th straight month, retail receipts rose, excluding cars and auto parts.
For home buyers and would-be refinancers in Okemos , this is a bit of unwelcome news. Mortgage rates are rising in the wake of the Retail Sales data release.
This is because Retail Sales account for roughly half of consumer spending, and nearly one-third of the economy overall. A rise in Retail Sales, therefore, suggests stronger growth ahead.
Here’s how it happens.
As consumers spend more money, businesses sell more product. So, to accommodate burgeoning demand, business hire additional employees, and are forced to make additional capital expenditures as well.
This rise in spending prompts other businesses to hire and spend; to meet their own respective demand surges. There’s a chain reaction-like effect.
Then, with businesses carrying larger payrolls and bigger staffs, federal, state and local governments realize bigger tax bases and can fund new and existing projects.
This, too, leads to hiring and the cycle repeats.
A weak economic outlook dragged down mortgage rates last week. This week’s Retail Sales data reversed that flow. Mortgage rates are higher by 1/8 percent — roughly $8 per $100,000 borrowed.
For the 9th straight month last month, foreclosure activity slowed.
According to foreclosure-tracking firm RealtyTrac, the number of foreclosure filings dropped 29 percent nationwide on an annual basis in June. The phrase “foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions.
June marked the ninth consecutive month of sub-300,000 filings after 20 months above it – a promising signal for the housing market in Michigan and nationwide.
It’s also noteworthy that each of the 10 most foreclosure-heavy states showed fewer foreclosures in June 2011 as compared to June 2010, led by Florida’s 54% decline. Florida is one of 4 states on the leading edge of foreclosure activity since 2007.
The other 3 states performed similarly well in June:
California : -22% on an annual basis
Arizona : -7% on an annual basis
Michigan : -25% on an annual basis
The decrease in foreclosure filings comes at a time when buyer demand is highest. According to the National Association of REALTORS®, “distressed properties” account for more than 30 percent of all home resales and no wonder — homes in various stages of foreclosure or sold by short sale are selling with discounts of 20 percent versus comparable non-distressed homes.
For buyers in search of foreclosures , talk with a licensed real estate. Buying homes in foreclosure follows a different process path as compared to buying a “traditional” home. Make sure you seek the help of a professional
More commonly called APR, Annual Percentage Rate is a government-mandated mortgage comparison tool. It measures the total cost of borrowing over the life of a loan into dollars-and-cents.
A loan’s APR is printed in the top-left corner of the Federal Truth-In-Lending Disclosure, as shown above. When quoting an interest rate, loan officers are required by law to disclose a loan’s APR, too.
APR is meant to simplify the process of choosing between two or more loans. The theory is that the loan with the lowest APR is the “best deal” for the applicant because the loan’s long-term costs are lowest. However, the loan with the lowest APR isn’t always best.
APR makes assumptions in its formula that can render it moot.
First, APR assumes you’ll pay your mortgage off at term, at never sooner. So, if your loan is a 15-year fixed rate, its APR is based on a full 15 year term. If you sell or refinance prior to Year 15, the math used to make your loan’s APR becomes instantly flawed and “wrong”.
Example: Let’s compare two identical loans in Michigan — one with discount points and a lower interest rate; and one without discount points and a higher mortgage rate. The loan with discount points will have a lower APR in most cases. However, if the homeowner sells or refinances within the first few years, the loan with the higher APR would have been the better option, in hindsight.
Second, APR can be “doctored” early in the loan process.
Because the APR formula accounts for third-party costs in a mortgage transaction, and third-party costs aren’t always known at the start of a loan, a bank can inadvertently understate them. This would make the APR appear lower than what it really is, and may mislead a consumer.
And, lastly, APR is particurly unhelpful for adjustable-rate loans. Because the APR calculation makes assumptions about how a loan will adjust during its 30-year term, if two lenders use a different set of assumptions, their APRs will differ — even if the loans are identical in every other way. The lender whose adjustments are most aggressively-low will present the lowest APR.
Summarized, APR is not the metric for comparing mortgages — it’s a metric. For relevant comparison points, talk to your loan officer.
Mortgage markets improved in roller coaster-like trading last week. And, not surprisingly, the week’s two big stories were the same two stories roiling mortgage markets since March — Greece and Jobs.
In both instances, rate shoppers won. Conforming mortgage rates in Michigan improved for the first time in 3 weeks last week.
Early in the week, mortgage rates fell as doubts resurfaced on the just-completed Greece aid package. Although an agreement had been reached by the Greek Parliament, investors are wondering if it’s a bona fide solution, or delaying an inevitable default.
Talk like this triggers a flight-to-quality, and last week, it led mortgage rates lower.
Then, mid-week, a strong preview of the Friday jobs report led to a reversal. Mortgage markets sold off sharply with the prospect of a blow-out Non-Farm Payrolls number. Analysts upped their estimates 50% — from 80,000 net new jobs created in June to 120,000 — and mortgage rates spiked in anticipation.
The rate rise was short-lived, however, because when the actual jobs report was released, it showed just 14,000 jobs added in June. Mortgage markets reversed and mortgage rates sunk to their best levels in 2 weeks.
This week, Greece should remain in the headlines, but there’s other rate-changing news, too:
If you’re still floating a mortgage rate, today marks a good week to lock. Mortgage rates could fall this week and next, but there’s more room for rates to rise than to fall.
Lock up today’s low rates while they’re still available.
The year is half-over. It’s an opportune time to take stock of analyst predictions made at the start of the year, and to recognize that the “experts” can be wrong as often as they are right.
For as much experience and authority an expert brings to the conversation, though, nobody can accurately predict the future.
As a layperson, how do you know who will be right?
In short, you can’t.
Predictions are a tricky business because they’re guesses about the future based on the world as it exists today. When the predictions listed earlier were made, the world was a different place.
A lot has changed since January:
Slowing job growth has suggested to slower U.S. economic growth
Food and energy costs have spiked, adding inflationary pressures to the economy
Eurozone debt issues have grown, punctuated by a near-Greek default
Tsunamis have caused widespread damage in Japan
Earthquakes, floods and volcanoes have harmed economic output
None of these events had occurred as of December, when the original predictions were made. Yet, each of these developments has made a deep impact on housing, and on the economy.
So, what’s a East Lansing homeowner to do? Think of the present instead.
First, mortgage rates are low today — extremely low by historical standards. Second, home values have been slow to rebound through most U.S. markets. Combined, these factors have made homes more affordable than it any time in recorded history. It’s not only cheap to buy a home right now, it’s cheap to refinance one, too.
Analysts are saying the home prices will rise this year, and mortgage rates will, too. Those predictions may ultimately be proven true. Until the future arrives, though, those predictions are just guesses.
As home buyers in the Lansing, MI area , we tend to research homes a lot. We look at square footage; at upgrades; at landscaping; at community statistics; and, at every other “number” on which we can get our hands.
But those are just statistics. What about the home’s “feel”?
In this 5-minute piece from NBC’s The Today Show, you’ll learn a dozen complementary home-shopping techniques to help you review and evaluate a home for purchase. Each is focused on findings you won’t see listed on a website.
For example, instead of scheduling your second showing for the same time of day as your first one, revisit a home during an “opposite” time. if you originally saw the home in daylight, go see it at nighttime. If you first saw a home on the weekend, go see it during the work week.
By seeing a home in two distinct settings, you can get a better feel for what the home and neighborhood are really like.
Some of the other tips from the video include:
Visit during Rush Hour and on a Saturday night. This will help you gauge sound levels of the street.
Go to Google Maps and study the aerial shot of the home. What’s nearby?
Talk to neighbors. They’ll share everything about the neighborhood with you — good and bad.
When you buy a home, you committing to more than just the property. You’re committing to the neighborhood, too. Armed with the methods described in this video, you’ll be better prepared to make a good decision.
Mortgage markets worsened last week as Wall Street’s renewed optimism pushed equities to their best one-week gain in 2 years. The change in sentiment was bad news for rate shoppers, however, as investors pored into stocks at the expense of bonds.
Last week, for the first time since February, mortgage rates rose 5 days in a row. By the time bond markets closed for the 3-day weekend, conforming fixed mortgage rates in Michigan had climbed to their worst levels since mid-May.
Mortgage rates are now at 7-week highs.
The biggest reason for last week’s mortgage rate turnaround is that lawmakers in Greece approved a national austerity plan. Reaching an accord on spending cuts and tax increases was a necessary step for the nation-state to avoid defaulting on its debt and falling into bankruptcy.
Until last week, it wasn’t clear whether the Greek Parliament would reach this agreement, and this fear is why mortgage rates were down through May and June. Faloout from a default would have created global economic uncertainty and uncertainty tends to be good for mortgage rates.
With agreement reached, though, that uncertainty is minimized. Mortgage rates are reversing.
This week, the big news will be June’s Non-Farm Payroll report, set for release Friday morning. If jobs growth is stronger-than-expected, stock markets should continue to post gains and mortgage rates should continue to rise.
The jobs report is a market-mover. If you’re floating a mortgage rate and wondering whether to lock, it may be prudent to lock ahead of Friday’s release.
The interest rate differential between fixed-rate and adjustable-rate mortgages continues to widen and has now reached historic levels.
There’s never been a better time to lock an ARM.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, homeowners in East Lansing who lock their mortgage rate today will save 129 basis points on rate, on average, by choosing a 5-year ARM as their mortgage product as compared to a 30-year fixed rate loan.
The average 30-year fixed rate is 4.51%. The average 5-year ARM rate is 3.22%.
It’s the biggest interest rate spread between fixed-rate and adjustable-rate mortgage rates in Freddie Mac’s recorded history; a gap which is the result, in part, of the 5-year ARM dropping to all-time lows this week.
Rates for the 5-year ARM are even lower than during last year’s historic Refi Boom.
Putting today’s “spread” in action against a hypothetical $250,000 loan size, a homeowner that chooses an ARM over a fixed-rate loan would save $184.30 monthly, and would have $500 fewer closing costs.
That’s a 5-year savings of $11,558 — nearly triple what you would have saved just 2 years ago.
The main reason why today’s adjustable-rate mortgages are priced so aggressively relative to comparable fixed-rate loans is that Wall Street expects the economy to drag for the next several quarters, after which it expects an acceleration.
ARMs tend to reflect short-term expectations for the U.S. economy which is why short-term mortgage rates are dropping. Fixed products, by contrast, take a longer view and expectations for an economic rebound are pulling fixed-rate mortgage rates up.
For now, mortgage applicants can exploit the difference — especially those who plan to move within the next 5 years — but adjustable-rate mortgages aren’t right for everyone. ARMs carry particular risks about which you should be aware before locking.
Before you choose an ARM, therefore, talk it through with your loan officer.
According to data from the National Association of REALTORS®, the Pending Home Sales Index smashed analyst expectations, jumping 8 percent on a monthly basis in May.
Wall Street calls were for an increase of just 0.5 percent.
It was a surprise result that, coupled with the recent stronger-than-expected New Home Sales and Existing Home Sales readings, has sparked housing market optimism in Michigan and nationwide.
The biggest reason for the optimism is because of what the Pending Home Sales Index measures.
In contrast to “traditional” housing data which reports on how housing performed two months ago, for example, the Pending Home Sales Index is a forward-looking indicator; a predictor of future market activity based on freshly-written contracts between buyers and sellers.
In other words, the Pending Home Sales Index looks ahead — not back. This is reflected in its methodology which states that 80% of homes under contract close within 2 months, and a large percentage of the rest close within Months 3 and 4.
Because May’s Pending Home Sales Index rose sharply, therefore, we can expect similar jumps in the Existing Home Sales figures of June and July.
For housing and home prices, this is a positive but the gains won’t apply to each home equally. The Pending Home Sales Index is still a national report for a market built on local sales. What’s happening on your particular street in your particular neighborhood may not reflect what’s happening somewhere else.
For accurate, real-time data in your local market, ask a real estate agent for statistics.
Maybe homes in Michigan are holding value better than we thought.
Between March and April of this year, home values rose 0.8 percent nationally, according to the Federal Housing Finance Agency’s Home Price Index. It’s the index’s first month-to-month improvement since May of last year.
Values are down 19 percent since peaking 4 years ago.
Private-sector data affirms the government’s report.
Tuesday, the S&P’s Case-Shiller Index also showed home values higher by 0.8 percent in April, on a monthly basis. Led by Washington, D.C. and San Francisco, 13 of the Case-Shiller’s 20 tracked markets showed improvement in April.
In March, just 2 markets did.
As a home seller , it’s nice to see reports of rising home prices after multiple months of “bad news”. However, the data may not be as rosy as it appears to be. National real estate surveys including the Home Price Index and the Case-Shiller Index are flawed for everyday buyers and sellers.
The biggest flaw is “age”. Both the Home Price Index and the Case-Shiller Index report on a near 2-month delay.
This week, the calendar turns to July. Yet, we’re still discussing housing news from April. The housing market of 60 days ago was very different from the housing market of today. Mortgage rates are different, market drivers are different, and the pool of buyers is likely different, too.
We can’t discuss today’s housing market with “April” in mind. The data is irrelevant.
Another flaw is that both reports are national in scope. Real estate, by contrast, is local.
When we cite the Home Price Index or the Case-Shiller Index, for example, and say “home values rose 0.8% in April”, we’re just giving a national average. On the local level, some markets rose by more, some rose by less, and others actually fell.
People buy homes on a specific block of a specific street in a specific neighborhood. Data for homes like that can’t be captured in a national survey.
The group that gets the most value from the Home Price Index and Case-Shiller is Wall Street and policy-makers. The indices do a fair job of reporting how housing behaves as a whole, but for individuals concerned with buying and selling homes, the best place to find real-time, accurate data is from a real estate professional.
A report issued Monday by the U.S. government showed core inflation rising 2.5 percent in the last 12 months for its biggest one-year gain since January 2010.
Everyday living is becoming expensive, it seems.
But there are some U.S. towns in which the cost of living remains affordable — and downright cheap — as compared to the national average. They’re detailed in a BusinessWeek piece titled “The Cheapest 25 Cities In The U.S“.
In comparing costs across 340 urban areas as compiled by the Council of Community & Economic Research, cities in Texas, Arkansas, Tennessee and Oklahoma ranked consistently high. Cities in Hawaii did not.
Take note, though. Although the BusinessWeek piece highlights inexpensive cities in which to live, a low cost of living does not necessarily correlate to a high standard of living. Cost-leader Harlingen, Texas, for example, boasts a poverty rate nearly triple the national average.
Other “Inexpensive Cities” feature similar poverty rates.
The Top 10 “cheapest cities”, as shown by BusinessWeek are:
Harlingen, Texas
Pueblo, Colorado
Pryor Creek, Oklahoma
McAllen, Texas
Cookeville, Tennessee
Commerce-Hunt County, Texas
Brownsville, Texas
Fort Smith, Arkansas
Muskogee, Oklahoma
Springfield, Illinois
And, at the other end of the spectrum, the top 5 most expensive cities/areas were, in order, Manhattan, New York; Brooklyn, New York; Honolulu, Hawaii; San Francisco, CA; and Queens, New York.
Manhattan’s cost of living is more than twice the national average.
Mortgage markets improved again last week on a revised economic outlook for the U.S. economy, and ongoing concerns about Greece and its sovereign debt.
Conforming mortgage rates in Michigan fell last week and now hover near the all-time lows set last November.
Adjustable-rate mortgages are especially low.
There were three big stories last week that will carry forward into this week.
First, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged in its current target range of 0.000-0.250 percent. This was expected. However, the Fed revised its growth estimates for the U.S. economy lower. This was not expected.
Mortgage rates dipped on the news.
Second, Greece moved closer to avoiding insolvency. The nation-state’s parliament must now pass a package of spending cuts and tax increases to appease Eurozone leaders and the IMF. Without passage, though, bankruptcy may be unavoidable.
Worries about Greece’s fate sparked a bond market flight-to-quality. This, too, helped mortgage rates ease.
And, lastly, Thursday, the U.S. and other members of the International Energy Agency chose to release 60 million barrels of oil to the market over the next month. You’ve likely experienced the impact as the gas pump already — gas prices are way down nationwide.
Lower gas prices means fewer inflationary pressures and inflation is the enemy of mortgage rates. Less inflation, lower mortgage rates.
This week, mortgage rates may reverse.
There isn’t much new data due for release — inflation data due Monday, housing data due Wednesday, and a series of confidence reports throughout the week — but there are 3 scheduled treasury auctions that could pull rates up or down.
Monday : 2-Year Treasury Note auction
Tuesday : 5-Year Treasury Note auction
Wednesday : 7-Year Treasury Note auction
If demand is high at any/all of the auctions, mortgage rates should drop. If demand is weak, mortgage rates should rise.
On paper, the market for newly-built, single-family homes looks healthy.
Last month, the number of new homes sold on an annualized, seasonally-adjusted basis tallied 319,000. The May reading is the second-highest of the year, and 6 percent above the current 12-month average.
These are strong numbers in isolation. However, after accounting for the dwindling supply of new homes for sale as well, the figures look even stronger.
In May, at the current pace of sales, the complete, national inventory of new homes for sale would have been sold in just 6.2 months.
That’s the quickest pace in a year and a 3-month improvement from a year ago.
To hear it from homebuilders, though, you’d think that sales were crashing.
Homebuilder confidence slipped to a 9-month low this month; builders report slowing foot traffic; and the prospects for the next 6 months appear weak. This is not the portrait painted by HUD’s May New Home Sales report.
As a home buyer in Lansing , this dichotomy may work to your advantage.
Falling supplies and rising demand correlate to higher home prices. Yet, builders are pessimistic for their market. Therefore, despite the economics, psychology may help buyers experience more favorable negotiations, including complimentary upgrades and other builder concessions.
If you’re a buyer in today’s market, it’s a reason to consider the new home market. There may be good value once you know where to look.
Home resales slipped 4 percent in May, falling below the 5,000,000-unit mark on a seasonally-adjusted, annualized basis for the first time since February.
April’s resales were revised lower, too.
Analysts were surprised by the figures because it runs counter to the National Association of REALTORS® monthly Pending Home Sales reports.
The association’s Pending Home Sales Index is purported to be a forward-looking indicator for the housing market because 80% of homes under contract close within 60 days and recent Pending Home Sales readings show an increase in “pending” homes.
This month’s Existing Home Sales, however, fell flat.
May’s drop in home resales wasn’t limited to a particular region or price point, either. All 4 geographic regions lag last May’s results. Five of the 6 valuation ranges fell, too.
$0-$100,000 : +6.7 percent annual change
$100,000-$250,000 : -21.6 percent annual change
$250,000-$500,000 : -16.0 percent annual change
$500,000-$750,000 : -11.0 percent annual change
$750,000-$1,000,000 : -20.7 percent annual change
$1,000,000 or more : -11.0 percent annual change
The Existing Home Sales report wasn’t all bad, however.
Although the months of housing stock rose to 9.3 in May, the number of homes for sale nationwide fell 1%. This suggests that there weren’t as many buyers in May as compared to April — a function of weather, jobs and the economy. Since April, the jobs market and the economy have shown steady, slow improvement and Mother Nature has been less destructive.
Home resales should rebound in June and July, therefore.
If you’re a buyer in today’s market, home supplies are higher and mortgage rates are lower. The combination makes for ample bargain-hunting. There’s excellent “deals” to be found in Lansing. Ask your real estate agent for help in finding them.
Posted by: Don Grimes - Loan Officer at 5:12am
Tags: existing home sales,existing home supply,nar
Despite rising new home sales and an increase in building permits nationwide, home builder confidence slipped to a 9-month low in June. The monthly Housing Market Index from the National Association of Homebuilders registered 13 this month — three ticks lower than last month, and its lowest level since September 2010.
June’s 3-point drop from May is the biggest one-month move since May 2010, the month after the expiration of the federal home buyer tax credit. The retreat could signal favorable pricing for new home buyers in Lansing in the months ahead.
When builders get less bullish on housing, they may be more willing to negotiate for upgrades and discounts. Ultimately, this can help new home buyers buy homes at better, lower prices.
A closer look at the Housing Market Index shows why this may be true.
The Housing Market Index is not a single-reading statistic. It’s a composite; the result of 3 separate surveys, each meant to measure a specific facet of a home builder’s business. The survey questions are:
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?
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?
When builders reply, their responses are tallied and mapped to a scale of 1-100. Readings over 50 are considered favorable. Readings under 50 are considered unfavorable. The HMI has not been higher than 50 in more than 5 years.
In June, the HMI composite reading of 13 was anchored by falling foot traffic and reduced expectations for “future sales”. Homebuilders expect new home sales to be down through the New Year.
Therefore, if you’re a home buyer in Michigan and have considered “buying new”, the time may be right for making an offer. Financing is cheap, home values are low, and builders are pessimistic — a terrific combination for today’s home buyer.
Mortgage markets improved last week as Wall Street managed news on both sides of the economic coin. There were several instances of higher-than-expected inflation – an event that tends to lead rates higher — but weak domestic jobs data and a soft manufacturing report suppressed the damage.
Rates were also held low by ongoing issues in Greece.
In Greece, the government is currently struggling to meet its debt obligations — despite a restructuring of existing debt negotiated in 2010.
Without a plan for its new debt, though, Greece will likely to default on what it owes. Eurozone and international banking leaders have failed to reach consensus on the situation, and now the citizens of Greece are in a state of social unrest.
The uncertainly surrounding the nation-state spurred a bond market flight-to-quality last week. That, too, helped to keep rates low.
Last week, mortgage rates fell for the sixth week out of nine, a streak that’s dropped conforming mortgage rates in Lansing to their lowest levels of the year.
This week, that could change.
Wednesday, the Federal Open Market Committee adjourns from a 2-day meeting and anytime the Fed meets, there’s a good chance that mortgage rates will move. The FOMC makes the nation’s monetary policy.
The meeting adjourns at 12:30 PM ET and Fed Chairman Ben Bernanke will follow with a press conference at 2:15 PM ET. The press conference is meant to give context to the FOMC’s decision, and allow for back-and-forth with the press corps. Wall Street will watch closely, too, for signals of the Fed’s next action(s).
In addition, this week will see the results of May’s Existing Home Sales report and New Home Sales report. Both are considered important to the housing market, and to the economy overall.
If you’re still floating a mortgage rate, falling mortgage rates have helped you. There’s not much room for rates to fall further, however. Consider calling your loan officer and locking something in.
The housing market received a jolt of good news Thursday. The Commerce Department reports that Single-Family Housing Starts improved in May.
As compared to April, last month’s Single-Family Housing Starts rose 4 percent to a seasonally-adjusted, annualized rate of 419,000 units, a figure slightly better than the 6-month average and the highest tally since January.
A “housing start” is defined as a home on which new construction has started.
In addition, Building Permits saw a boost in May, too, climbing nearly 9 percent overall. Building Permits are a gauge of future construction activity with 89 percent of permits leading to new construction within 60 days.
For several reasons, the May data surprised Wall Street analysts.
First, more homes being built suggests a healthier housing market, yet, earlier this week, the June homebuilder confidence report posted its lowest reading since September 2010.
Second, new home sales are only slightly higher than their all-time lowest annualized readings. Sales volume remains low in East Lansing and nationwide.
And, lastly, home prices have yet to recover in full. By adding additional inventory, builders may suppress price growth through the remaining portions of 2011.
For home buyers in Michigan , though, the Housing Starts data may be a signal that the market is turning. The data can be used to your advantage.
Home prices are a function of supply and demand and — based on the Housing Starts data plus the number of newly-issued Building Permits — home supply is likely to rise. Demand, on the other hand, despite low mortgage rates, may not. At least not in the short run.
As a buyer, you can use this information to your advantage. If you’re looking to buy new construction, ask your real estate agent about the current new homes supply. There are bargains to be found and May’s Housing Starts data should support low prices for at least the next few weeks.
According to foreclosure-tracking firm RealtyTrac, monthly foreclosure filings fell 2 percent in May to just under 215,000 filings nationwide. A foreclosure filing is defined as any one of the following: a default notice, a scheduled auction, or a bank repossession.
On an annual basis, foreclosure counts have dropped over 16 consecutive months, dating back to January 2010.
Like all things in real estate, though, foreclosures are local. 6 states accounted for more than half of the country’s foreclosure filings in May. Those six states — California, Michigan, Arizona, Florida, Georgia and Texas — represent just 34% of the U.S. population.
But even on a per household basis, the figures remain disproportionate.
Top 10 Foreclosure States : 1 foreclosure per 357 households, on average
Bottom 10 Foreclosure States : 1 foreclosure per 8,764 households, on average
The nationwide foreclosure rate was 1 foreclosure per 605 households.
As a home buyer in East Lansing , foreclosures matter. Distressed homes account for close to 40% of home resales and that’s because distressed properties often sell at steep discounts; in some markets, up to 20 percent less than a comparable, non-distressed home. Foreclosed homes can be a great “deal”, therefore, but only if you’ve done your homework.
Buying a bank-repossessed home is different from buying from “people”. The contracts and negotiation process are different, and homes are sometimes sold with defects.
If you plan to purchase a Michigan foreclosure, therefore, speak with a real estate professional first. With foreclosures, there’s a lot you can learn online, but when it comes time to submit an actual bid, you’ll want an experienced agent on your side.
The jobs market is recovering slower than expected, and so is housing. But neither condition has slowed U.S. consumers.
According to the Census Bureau, Retail Sales rose for the 11th straight month in May. Excluding cars and auto parts, sales receipts climbed to $322 billion last month. It’s an all-time high and another example of the U.S. economy’s resiliency.
Wall Street didn’t expect such results. As a result, mortgage rates worsened Tuesday.
By a lot.
The connection between Retail Sales and mortgage rates can be fairly tight in a recovering economy. Retail Sales accounts for almost half of all U.S. consumer spending, and nearly one-third of the economy overall. The May report, therefore, showed the economy may be on more solid footing than economists expect.
Plus, lately, as the economy goes, so go mortgage rates in Lansing and nationwide.
When the economy has shown signs of life, mortgage rates have increased. When the economy has shown signs of a slowdown, mortgage rates have dropped.
It’s why mortgage markets reacted the way they did Tuesday; May’s Retail Sales data was strong. The resultant surge in conforming mortgage rates — from market open to market close — turned into one of the year’s fiercest, raising average mortgage rates well off their 7-month lows established earlier this week.
At today’s rates, each 0.125 percent change in rates yields a payment difference of $7.50 per $100,000 borrowed. Yesterday, some product rates rose by as much as 0.250 percent. It put a dent in home affordability and household budgets.
With Retail Sales are up 8 percent from last year, therefore, and showing few signs of a slowdown, today may be a prudent date to lock a rate with your lender. As the economy continues to grow, rates are expected to rise.
Mortgage markets moved in feverish fashion last week, changing with extreme frequency, and eventually ending slightly worse on the week. Conforming mortgage rates fell to a 6-month low Wednesday but, by Friday, they had retreated higher.
Last week marked just the second time in 8 weeks that rates in East Lansing increased. During that span, Freddie Mac reports that mortgage rates have dropped 42 basis points, or 0.42%.
That equates to a monthly savings of $25.24 per $100,000 borrowed.
One reason why mortgage rates have been dropping is that the economy is growing more slowly than projected. In a speech last week, Federal Reserve Chairman Ben Bernanke described the U.S. recovery as “frustratingly slow”. In a separate speech, another Federal Reserve President, William Dudley, categorized the recovery as “subpar”.
Economic weakness tends to promote a low mortgage rate environment as equity markets sell off and investors seek safety of principal. Indeed, the Dow Jones Industrial Average fell for the 6th straight week, its longest losing streak since 2002.
Mortgage rates were also helped by ongoing uncertainty in Greece. The nation remains at-risk for default, and that’s spurring a bond market to flight-to-quality which benefits the U.S. mortgage market, too.
This week, mortgage rates may reverse their recent slide. There isn’t much data due for release, but the numbers that will hit the wires have the ability to move markets — especially the inflation-linked figures.
Tuesday : Producer Price Index, Retail Sales
Wednesday : Consumer Price Index
Thursday : Housing Starts
Friday : Consumer Sentiment
If you’ve been looking at mortgage rates for a purchase or refinance, now may be a good time to lock. FHA and conforming rates are at their lowest levels since December 2010.
Going forward, rates have much more room to rise than to fall.
A mortgage comes with many moving pieces and understanding them is the key getting a great deal. Unfortunately, studies show that few Americans have a firm grasp of how mortgages work — from mortgage types to mortgage fees.
In this back-to-basics interview on NBC’s The Today Show, you’ll learn some mortgage planning basics to help you get smarter with your next home loan in East Lansing or anywhere else — purchase or refinance.
Some of the topics covered include:
The mortgage applicants for whom adjustable-rate mortgages are a better choice than fixed-rate mortgages
Why you should include “How Good Is This Lender?”-type questions in the rate shopping process
What a pre-approval letter is good for, and what it is not good for
There is also one of the most simple explanations of “discount points” ever offered on network television.
The video runs 4-and-a-half minutes. For first-time buyers and experienced ones, it’s worth a watch. You’ll pick up some tips to use on your next mortgage.
Don Grimes has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Don Grimes can be reached at (517) 324-0400 or at (800) 249-4113 to find the most cost effective mortgage solution for you in the State of Michigan. Mortgage Loan Officer License NMLS #130686
It’s a fact: It’s more expensive to live in some cities than others. Beyond just the costs of buying a home, different cities also carry a different Cost of Living. For households relocating from Michigan and across state lines, the change in “life costs” can be jarring.
Depending on where you live, everyday expenses — from groceries to gasoline — make a different-sized dent in a household budget. And now you can see in numbers by how much your expenses might change.
The Cost of Living Comparison calculator is as basic as it is thorough. The calculator asks just 3 questions — (1) Where do you live now, (2) To what city are you moving, and (3) What is your salary — and uses your answers to produce a detailed, 60-item cost comparison between the two towns.
The city-to-city cost comparisons include:
Dry Cleaning Costs
Total Energy Costs
Beauty Salon Costs
Movie Costs
Dentist Visit Costs
The list also features a mortgage rate comparison, and a comparison of local home prices.
The Cost of Living calculator is based on data from the ACCRA. On the ACCRA website, a similar report sells for $5. At Bankrate.com, the information is free.
Mortgage markets improved last week, carried by the same stories that have led markets better since April. Worries of a Eurozone sovereign debt default mounted, and the U.S. economy’s revival showed itself to be slower than originally anticipated.
In Greece, the nation readied itself for its second bailout in two years. The austerity measures of last year have not worked as planned. There are concerns that a default would lead to contagion, delivering the Euro region into an economic tailspin.
These fears spurred a flight-to-quality in bond circles to the benefit of U.S. mortgage rate shoppers.
In addition, last week’s U.S. jobs data fell short of expectations, giving another boost to mortgage markets.
Each of these data points underscores the fragile nature of the U.S. recovery, and the weaker-than-expected readings helped mortgage rates improve.
It’s the sixth week of 7 that mortgage rates in Okemos have improved, setting the stage for a new wave of refinances.
This week, there is very little new data on which for mortgage bonds to trade. Therefore, expect the stories from recent weeks to continue to dominate headlines. If Greece’s austerity and/or bailout plan is met with investor optimism, mortgage rates should rise. If the plan falls flat, mortgage rates should fall.
There will also be chatter about the U.S. debt ceiling, another potentially negative force on mortgage rates.
If you’re floating a mortgage rate right now, consider locking in. There’s a lot more room for rates to rise than to fall.
Tomorrow morning, at 8:30 AM ET, the Bureau of Labor Statistics releases its Non-Farm Payrolls report for May. If you’re floating a mortgage rate right now — or are in the process of shopping for a loan — consider locking your rate sooner rather than later.
The Non-Farm Payrolls report can be a major market mover, causing large fluctuations in both conforming and FHA mortgage rates in Lansing. It’s because of the report’s insight into the U.S. economy.
More commonly called “the jobs report”, Non-Farm Payrolls is issued monthly. Sector-by-sector, it details the U.S. workforce and unemployment rates.
Jobs momentum has been strong. Through 7 consecutive months, the economy has added jobs, the government reports. Nearly 1 million new jobs have been created during that time. These are strong figures for a country that lost 7 million jobs in 2008 and 2009 combined.
However, Wednesday, a weaker-than-expected “preview” figure from payroll company ADP has Wall Street wondering whether this month is the month that the winning streak ends.
May’s ADP data fell so far short of expectations that investors have had to re-assess their job growth predictions. Earlier this week, the consensus was that 185,000 new jobs were created in May. Today, those estimates are much lower.
The change is leading mortgage rates lower, too.
The connection between jobs and mortgage rates is somewhat straight-forward. Job growth influences mortgage rates because jobs matter to the economy. As job growth slows, so does the economic growth, and that puts downward pressure on mortgage rates.
The opposite is true, too. Strong job growth tends to lead mortgage rates higher.
So, with job growth estimates revising lower, Wall Street has adjusted its “bets” and that’s benefiting rate shoppers across Michigan. Should the actual jobs figures not be so bad, though, expect a quick and sharp reversal; and much higher mortgage rates for everyone.
Another quarter, another sign that mortgage lending may be easing nationwide.
The Federal Reserve’s quarterly survey of senior loan officers revealed that an overwhelmingly majority of U.S. banks have stopped tightening mortgage requirements for “prime borrowers”.
A prime borrower is one with a well-documented credit history, high credit scores, and a low debt-to-income ratio.
Of the 53 responding “big banks”, 49 reported that mortgage guidelines were “basically unchanged” last quarter. Of the remaining four banks, two said mortgage guidelines had “eased somewhat”, and the remaining banks said guidelines “tightened somewhat”.
It’s the second straight quarter in which fewer than 5 percent of banks tightened guidelines, and the first quarter in nearly 5 years in which the number of banks that loosened guidelines equaled the number of banks tightening them.
The easing in mortgage lending is a positive development for the housing market; and for buyers in East lansing and nationwide. Looser lending standards means that more buyers will be approved for home loans, and that should spur home sales forward across the region.
However, don’t confuse “looser standards” with “irresponsible standards”. It’s much more difficult to get financing today as compared to 2006. Delinquencies and defaults have altered how a bank reviews a loan application.
Today, underwriters are more conservative with respect to household income, total assets and overall credit scores. Even as compared to just 6 months ago:
Minimum credit score requirements are higher
Downpayment/equity requirements are larger
Maximum allowable debt-to-income ratios are lower
If you can get approved, though, your reward is that mortgage rates are especially low. Since early-April, both conforming and FHA mortgage rates have been on a downward trajectory, and pricing is near a 6-month low.
Home affordability is at an all-time high, too.
Looser guidelines and lower rates should help fuel home demand through the summer months. If you’re in the market to buy, your timing appears to be excellent.
Pre-Qualify for this Mason 3 bedroom home with Don Grimes, Senior Mortgage Loan Officer with Amera Mortgage Corporation FHA, VA and USDA Mortgage Expert at www.DonGrimes.com or call or text (517) 927-8110. This Mason Homefeatures 3 Bedrooms with 1212 Square Feet.. This Mason home is located in the Mason School Disctrict and Close to downtown of Mason. To view This Mason home please click the “Find Out More” link or send me a text message to Mobile: (517) 927-8110. To schedule a private showing or to get more information I am available right now via text message.
Mortgage markets improved last week ahead of Memorial Day and a 3-day weekend. Bond pricing ending the week higher, pushing conforming mortgage rates in Michigan down for the 5th week out of six.
Most economic news reported worse-than-expected. Initial Jobless Claims increased sharply, GDP was unchanged, and Durable Orders posted the largest one-month decline since October. Each of these stories reduced inflationary pressures on the economy, contributing to lower mortgage rates.
However, the main driver for U.S. mortgage rates last week was Europe.
One year ago, Greece pledged to lower its spending, cut its deficit, and reduce the number of public programs and benefits. In economic circles, this is known as austerity. For more than a month, however, despite the austerity measures, there has been concern that Greece will fail to meet its debt obligations.
Last week, that concern spiked. It triggered a flight-to-quality that helped U.S. mortgage bonds, and led mortgage rates lower.
Conforming and FHA mortgage rates are now at their lowest levels in more than 6 months.
This week, the biggest news is May’s Non-Farm Payrolls report. Although, expect for rates to carve out wide ranges from day-to-day. Until the Greece scenario reaches a resolution, Wall Street will be on edge.
Tuesday : Consumer Confidence, Case-Shiller Index
Wednesday : ADP Challenger Report
Thursday : Initial Jobless Claims
Friday : Non-Farm Payrolls Report
Plus, four members of the Fed have scheduled speeches.
If you’re still floating a mortgage rates, or have otherwise not locked in, luck is on your side. Mortgage rates look poised to fall over the next few days, however, markets have been known to reverse quickly. Therefore, if you’ve been quoted on a rate that looks acceptable to you, you may not want to gamble on mortgage rates falling further.
The safest decision may be to commit to what’s available to you today.
Mortgage markets were unchanged last week, despite improving on four of five days. Economic data was worse-than-expected almost across the board, but neither FHA nor conforming mortgage rates in Michigan budged.
Instead, markets grappled with the just-released Fed Minutes which weighed heavily on investors and on Wall Street.With the release of the minutes, it’s increasingly clear that the Federal Reserve will end its support for bond markets on schedule in June, and that a Fed Fund Rate hike is possible within the next 12 months.
Not surprisingly, the date of the Fed Minutes release — Wednesday — was the singular “down day” for mortgage markets last week.
After falling for 4 straight weeks, Okemos mortgage rates appear to have troughed. This week they could rise, and there’s no shortage of data on which for bonds for trade.
Tuesday : New Home Sales; Speeches from Fed’s Plosser and Bullard
Wednesday : Durable Goods; FHFA Home Price Index
Thursday : GDP; Initial Jobless Claims
Friday : Core PCE; Pending Home Sales; Consumer Sentiment
There’s other forces on markets, too. First, there are 3 bond auctions — a 2-year, a 5-year, and a 7-year. Weak demand for any of the three will lead mortgage rates higher.
And, second, this is a holiday week. Memorial Day is next Monday and, with the 3-day weekend ahead, expect large numbers of Wall Streeters to skip out on Friday (and likely part of Thursday, too). As the week concludes, therefore, bond volume will thin, amplifying mortgage rate movement — up or down.
If you’re shopping for a mortgage, it’s a good time to look at locking in. As the week progresses, mortgage rates should become less predictable and more volatile.
The housing market recovery stalled last month. At least temporarily.
According to the National Association of REALTORS®, Existing Home Sales slipped 1 percent in April from the month prior, falling to 5.05 million units on a seasonally-adjusted, annualized basis. The reading is exactly in-line with report’s 6-month average which also reads 5.05 million units.
The data may appear “average”, but there’s another angle to consider.
In April, as compared to March, the supply of existing homes for sales spiked. At the current pace of home sales, it would now take 9.2 months to exhaust today’s complete home inventory. This is almost one full month worse than March. It’s the worst home supply reading of the year.
There are also more homes “on the market” today than at any time since September 2010.
31 percent of all homes sold in April were purchased with cash
First-time home buyers bought 36 percent of all homes in April
Distressed properties typically sold at a 20 percent discount
This “discount”, it should be noted, is a major reason why distressed properties accounted for 37 percent of the home resales in April. Home buyers are finding bargains when they’re willing to consider homes in various stages of foreclosure and short sale.
Overall, the April Existing Home Sales report represents opportunity for home buyers in and around Lansing. Home sales are stagnant, supplies are rising and there’s no shortage of properties from which to choose. Furthermore, mortgage rates remain low.
If you’re considering a home purchase this fall, home supply may not be as ample, and financing conditions may not be as favorable, post-Labor Day. Talk to your real estate agent about what’s possible today. You may want to move up your time frame.
Posted by: Don Grimes - Loan Officer at 5:45am
Tags: don grimes michigan loan officer
Don Grimes - Loan Officer
Your One Stop Mortgage Source
Don Grimes has focused in the home purchase market and the majority of his business comes from Real Estate agents, customer referrals and repeat clients. He is licensed in the state of Michigan and his office is located in East Lansing, home of Michigan State University, just 65 miles west of Detroit.
Homebuilder Confidence is on the rise once again.
After two weeks of no change, mortgage markets improved last week, pushing mortgage rates lower throughout Michigan.
Planning to close on your home at the end of May? Plan ahead. Memorial Day is coming and the holiday may delay your closing.
Despite an improving U.S. economy, the nation’s banks remain cautious about what they will lend, and to whom.
Mortgage markets were mostly unchanged last week for the second straight week. Spain made few moves to allay concerns from its investors, the Federal Reserve did little to change its message on the U.S. economy, and newly-released economic data was in-line with expectations.
Sales of new homes ticked lower in March, unexpectedly.
Mortgage markets were mostly unchanged last week, breaking a three-week winning streak. Wall Street grappled with surprising demand on Spain’s debt issuance and a series of weaker-than-expected data points on U.S. housing.
In March, for the second straight month, home resales slipped nationwide.
Tuesday, the government released its March 2012 New Residential Construction report.
For the first time in 3 months, homebuilder confidence has slipped.
Looking for a great place to raise a family? Forbes Magazine has a list that may help you.
In a week of up-and-down trading, mortgage markets improved for the second consecutive week last week. Weaker-than-expected jobs data plus evidence of a slumping Eurozone took mortgage bonds lower, capped by a furious Friday morning rally that dropped mortgage rates to near-record levels.
If you’re out shopping for a home this week, or trying to lock a mortgage rate, with Friday comes home affordability risk. Consider locking your mortgage rate today.
The Federal Reserve has 
Planning to use an FHA-backed mortgage for your next home loan? You might want to get your application in gear today.
Mortgage markets improved last week on renewed concerns of a European debt default, and Federal Reserve rhetoric.
Sales of “new homes” fell to the lowest levels in four months last month.
Mortgage markets carved out a wide range last week, eventually closing slightly worse. Mortgage-backed bonds sold off early in the week on rising investor sentiment. Then, they reversed higher on prepared remarks from Federal Reserve Chairman Ben Bernanke, which tempered Wall Street optimism.
The new construction housing market appears primed for growth this season.
Mortgage markets worsened last week as the Federal Reserve’s Federal Open Market Committee suggested economic recovery may be closer than it originally expected, and that inflation may be a near-term economic concern.
The Federal Open Market Committee meets today, its second of 
Mortgage markets were mostly unchanged last week despite a series of positive developments. In addition to Greece successfully reaching a deal with its private creditors, the U.S. economy turned out strong reports — most notably with respect to Non-Farm Payrolls.
The FHA is making more changes to its flagship FHA Streamline Refinance program.
Mortgage markets worsened last week as the U.S. economy continued to show that it’s in recovery, and as Federal Reserve Chairman Ben Bernanke publicly hinted at the same.
Beginning April 1, 2012, the FHA is once again raising mortgage insurance premiums (MIP) on its newly-insured borrowers throughout East Lansing and the country.
The housing market appears headed for a strong spring season.
Mortgage markets improved in a holiday-shortened week last week, drawing mortgage rates lower throughout East Lansing and nationwide.
The Federal Reserve has 
January’s home resales moved to a 20-month high — additional evidence that the nation’s housing recovery is underway.
Mortgage markets worsened last week as the Eurozone moved closer to a bailout agreement with Greece, and the U.S. economy displayed more signs of growth.
Mortgage markets were mostly unchanged last week as Greece — once again — was front-of-mind for Wall Street investors. The nation-state is attempting to avoid a debt default, and has been attempting to avoid default since May 2010.
Mortgage markets worsened last week as domestic job growth surprised Wall Street and the Eurozone moved yet one more step closer to reaching a lasting Greece sovereign debt solution.
Mortgage markets improved last week as news from the Federal Reserve, the U.S. economy, and Europe combined to spur new demand for mortgage-backed bonds.
The housing market finished 2011 with strength, and is carrying measurable momentum into 2012.
Mortgage markets gained last week, picking up momentum into the weekend. Global demand for mortgage-backed bonds helped push mortgage rates to new lows, and closing costs eased somewhat, too.
Starting soon, nearly all home buyers and refinancing households throughout Michigan and nationwide will pay higher mortgage loan fees. Congress has made it law.
Mortgage markets improved last week, pushing mortgage rates in Michigan lower for the second straight week. Conforming fixed and adjustable-rate mortgage cut new, all-time lows, and FHA mortgage rates did the same.
For buyers and refinancing households throughout Michigan , adjustable-rate mortgages are a relative bargain as compared to fixed-ones.
If you’re floating a mortgage rate, or have yet to lock one in, today may be a good day to call your loan officer. Friday morning, the government releases its Non-Farm Payrolls report at 8:30 AM ET.
As the new year begins, there are no shortage of stories telling us what to expect in 2012. Housing finished 2011 with momentum and mortgage rates closed at 
Low home prices and mortgage rates have combined to push home affordability to record levels nationwide. Home buyers are taking advantage.
The government confirms what the private-sector Case-Shiller Index reported yesterday. Nationwide, average home values slipped in October.
New home inventory is approaching bull market territory.
Mortgage markets worsened last week on renewed optimism from the Eurozone, additional evidence of a U.S. economic recovery, and ongoing strength in housing.
Time is running out to boost to your 2011 federal tax refund. All you have to do is make your January 2012 mortgage payment while it’s still December.
In another good sign for the housing market, today’s home builders believe that the housing market has turned a corner.
Mortgage markets improved last week, but by a slight amount only; not enough to move conventional mortgage rates in Michigan in any significant manner.
Foreclosure activity continues to concentrate over just a few states.
BusinessWeek recently released its 2011 
As a homeowner in East Lansing , your fiscal responsibility extends beyond just making mortgage payments. You must also pay your home’s real estate taxes as they come due, as well as your homeowners insurance policy premiums.
The Federal Open Market Committee released its November 2011 meeting minutes, revealing a Fed split on whether new stimulus is needed for the U.S. economy.
Mortgage markets made little change last week for the fifth time in as many weeks.
Mortgage markets worsened slightly last week through a bouncy, holiday-shortened trading week. Markets were closed Thursday for Thanksgiving and re-opened only briefly Friday.
The housing market continues to signal that a broad rebound is underway. In October, despite sparse home inventory, the number of properties sold increased 1.4% nationwide.
After a brief return to lower, pre-2009 levels, 
Another day, another signal that the market for newly-built homes is improving.
Homebuilder confidence continues to rise.
Amid a dearth of new U.S. economic data, Eurozone developments led mortgage markets down in last week’s holiday-shortened trading week. Mortgage rates across Michigan worsened slightly, increasing week-over-week for the first time in a month.
With Halloween behind us, retailers are in the Holiday Spirit. Businesses know that consumers spent a median 
A home appraisal is an independent opinion of your home’s value, performed by a licensed home appraiser. Appraisals are part of the traditional home purchase process, and lenders require them for most refinances, too.
Mortgage markets improved last week as optimism for a Greek Bailout program faded, triggering a global flight-to-quality assets. Fear of a Eurozone rift outweighed positive economic remarks from the Federal Open Market Committee and an in-line U.S. jobs report.
In the housing market, amenities and location have as much to do with a home’s value as the everyday forces of supply-and-demand. Whereas the latter causes home values to rise and fall over time, the former creates a starting point for said values.
The Federal Open Market Committee begins a scheduled, 2-day meeting today, the seventh of its 
Home builders continue to sell homes and work through inventory.
Mortgage markets improved last week on worries that Eurozone leaders would decline to send aid to Greece. These concerns overshadowed optimism for the U.S. economy, the result of several strong data points.
Headlines in newspapers can be misleading — especially with respect to housing figures. Media coverage of the most recent Housing Starts data serves as an excellent illustration.
Homebuilder confidence is rebounding sharply.
Foreclosure activity continues to slow throughout the United States.
Mortgage markets deteriorated last week as optimism for a Greek rescue package increased, and as U.S. consumers showed that, despite falling income levels, spending will not be slowed.
Despite the lowest mortgage rates of all-time, home buyers are slowing the pace at which they’re buying homes.
According to the Census Bureau, the number of new homes sold slid for the fourth straight month in August, easing 2 percent from July. On a seasonally-adjusted, annualized basis, home buyers 
Mortgage markets improved last week as the Federal Reserve provided new market stimulus and the Eurozone continued to grapple with Greek’s sovereign debt issues.
Single-Family Housing Starts fell for the second consecutive month, dropping to a seasonally-adjusted, annualized 417,000 units in August 2011.
After 3 straight months of gains, the Pending Home Sales Index 
Mortgage markets improved again last week. The combination of global economic uncertainty plus a dour outlook from the Federal Reserve pushed mortgage bonds to highs for 2011, and drove mortgage rates below their all-time lows.
Foreclosure activity continues to slow.
More Americans are getting back to work.
Tuesday, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.
Mortgage rates continue drifting downward, despite — or because of — a ratings downgrade on long-term U.S. government debt. Standard & Poors issued a single-notch downgrade after Friday’s market close, from AAA to AA+.
The United States is projected to reach its legal $14.294 trillion debt limit today. The limit was set by Congress February 12, 2010. The U.S. Treasury may not issue new debt beyond the debt ceiling.
Home builders are slowly reducing inventory.
Mortgage markets worsened last week as the Greek sovereign debt situation came closer to final resolution, and as the U.S. housing market showed signs of life.
A strong spring season helped home values recover, says the government.
The American Consumer will not be deterred.
Mortgage markets improved in roller coaster-like trading last week. And, not surprisingly, the week’s two big stories were the same two stories roiling mortgage markets since March — Greece and Jobs.
The year is half-over. It’s an opportune time to take stock of analyst predictions made at the start of the year, and to recognize that the “experts” can be wrong as often as they are right.
The summer housing market is heating up.
Mortgage markets improved again last week on a revised economic outlook for the U.S. economy, and ongoing concerns about Greece and its sovereign debt.
On paper, the market for newly-built, single-family homes looks healthy.
Home resales 
The housing market received a jolt of good news Thursday. The Commerce Department reports that Single-Family Housing Starts improved in May.
The jobs market is recovering slower than expected, and so is housing. But neither condition has slowed U.S. consumers.
Mortgage markets moved in feverish fashion last week, changing with extreme frequency, and eventually ending slightly worse on the week. Conforming mortgage rates fell to a 6-month low Wednesday but, by Friday, they had retreated higher.
It’s a fact: It’s more expensive to live in some cities than others. Beyond just the costs of buying a home, different cities also carry a different Cost of Living. For households relocating from Michigan and across state lines, the change in “life costs” can be jarring.
Mortgage markets improved last week, carried by the same stories that have led markets better since April. Worries of a Eurozone sovereign debt default mounted, and the U.S. economy’s revival showed itself to be slower than originally anticipated.
Another quarter, another sign that mortgage lending may be easing nationwide.
Mortgage markets improved last week ahead of Memorial Day and a 3-day weekend. Bond pricing ending the week higher, pushing conforming mortgage rates in Michigan down for the 5th week out of six.
Mortgage markets were unchanged last week, despite improving on four of five days. Economic data was worse-than-expected almost across the board, but neither FHA nor conforming mortgage rates in Michigan budged.
