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        <title>Latest Real Estate, Economic, and Financial News </title>
        <link>http://www.russlrobinson.com/blog/</link>
        <description>Check out the latest news and headlines in real estate, the economy, and financial news. Russ Robinson is Atlanta's top real estate agent and Georgia's short sale expert. Learn about short sales including how to prevent foreclosure, the short sale pr</description>
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            <guid>http://www.russlrobinson.com/blog/check-those-batteries.html</guid>
            <link>http://www.russlrobinson.com/blog/check-those-batteries.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Check Those Batteries! </title>
            <description> <![CDATA[ 
When you have a functional smoke alarm in your home,  it cuts your risk of dying in a home fire by one-half. That means it's time to mark your calendar to remember to check your batteries. Set yourself a monthly or quarterly routine for testing your alarms.


 


Most smoke and carbon monoxide alarms have a button on the outside that you can press to test if the alarm is operational. Performing this simple task could be a real life saver. Be sure to remember, however, that on a carbon monoxide detector, a test button doesn't always show accuracy of a sensor. Instead, pay close attention to the product age and when the manufacturer recommends replacing the unit.


Before installing a detector or an alarm, Pennsylvania State Fire Commissioner Ed Mann suggests writing the purchase date inside the unit. Whether a unit is battery-powered or hardwired, it should be replaced every 8-10 years.


Carbon monoxide is created when combustible materials burn incompletely. Often called "the silent killer," it is an odorless, colorless, tasteless gas that can incapacitate victims before they're aware they've been exposed.


Sources include wood-burning fireplaces and stoves, gas-fired appliances, grills, and motor vehicles. Symptoms of carbon monoxide poisoning are often mistaken for the flu and include nausea, headaches, dizziness, disorientation and fatigue.


Every year an average of 170 people die in the United States from CO poisoning. Don't become a statistic.


The US Consumer Product Safety Commission (CPSC) says that CO alarms always have been and still are designed to alarm before potentially life-threatening levels of CO are reached. The safety standards for CO alarms have been continually improved and currently marketed CO alarms are not as susceptible to nuisance alarms as earlier models.


The same goes for your home's smoke alarms. You should have them on all levels of your home and in various rooms. According to FEMA, “A properly installed and maintained smoke alarm is the only thing in your home that can alert you and your family to a fire 24 hours a day, seven days a week. Whether you're awake or asleep, a working smoke alarm is constantly on alert, scanning the air for fire and smoke.”


According to the National Fire Protection Association, almost two-thirds of home fire deaths resulted from fires in properties without working smoke alarms. A working smoke alarm significantly increases your chances of surviving a deadly home fire.


If your alarm starts beeping at you as a warning of low battery life, don't just unplug the battery to stop the annoyance. Change the battery. This simple act could very well save your life. Need a new alarm in your home? You can buy a smoke alarm for  anywhere from $6 to $20. Now, that's a very reasonable investment in your safety!


                                                                                                                                                                                                            Copyright 2012 Realty Times
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            <pubDate>Wed, 16 May 2012 10:54:51 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/know-your-expenses-before-you-buy.html</guid>
            <link>http://www.russlrobinson.com/blog/know-your-expenses-before-you-buy.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Know Your Expenses Before You Buy</title>
            <description> <![CDATA[ 
For many, homeownership is still a dream. Moving from renting can seem like it’s an impossible mission. But if you plan ahead and carefully budget, the goal of homeownership can be yours.


 


When budgeting how much home you can afford, it’s important to understand and anticipate the costs of owning and maintaining a home. Here are a few things that some first-time buyers forget to include.


Private Mortgage Insurance


This is added on to your mortgage when the down payment is less than 20 percent. You can buy a home with less money but you’ll pay the PMI which covers the lender should  a homebuyer default on the loan. As you build up equity, your PMI drops off.


Taxes


Property taxes generate revenue for municipalities, counties, and schools. It’s an expense that can vary across the U.S. However, on average, it’s 1.38 percent of the home’s value. Back East tends to have the highest property taxes.


HOA Fees


Homeowners’ Association fees (HOA) can add several hundred dollars to your monthly household expenses. These HOAs help to maintain common areas, typically within condominium complexes. They also govern what can be done to the unit and the surrounding area. While there is an up side to HOAs, some buyers prefer to have more freedom over their property, perhaps, until the neighbor paints his house turquoise with red accents.


Homeowner’s insurance


Lenders require homeowner’s insurance on your property. The amount you’ll pay depends on many variables including: where you live, the age, type, size of your home. For example, older homes can cost more to insure due to the fact that they may require more repairs than newer homes. Also,  high-hazard areas can cost more to insure and some insurance companies may not offer an insurance policy for your home, if you’re in a high-risk area.


Utilities and appliances


These areas can be overlooked because, often, when people are renting the appliances  are taken care of. When you own your own home, be sure to consider expenses such as the water heater or dishwasher breaking down. While, you can’t exactly figure out when an appliance is going to quit working, you can set a monthly allowance aside to start establishing a household repair fund. Just don’t touch the account or when you really need it, you’ll find it’s not there for you.


Inspections, appraisals, and closing costs


Many buyers understand they will have closing costs but they fail to budget for other items such as a home inspection. Sometimes inspections are paid for by the seller but it’s usually the buyer who pays for the inspection. And, even if the homeowner recently had a home inspection and has the report, a buyer still might want to pay for an inspector to have another look to compare the findings.


Depending on the home, there may also be other inspections such as for lead paint, pests or radon gas.


While the extra expenses do add up quickly, if you carefully budget and plan ahead, the goal of homeownership is achievable and very satisfying.


                                                                                                                                                                                                           Copyright 2012  Realty Times
 ]]> </description>
            <pubDate>Wed, 16 May 2012 10:50:49 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/green-construction-predicted-to-grow.html</guid>
            <link>http://www.russlrobinson.com/blog/green-construction-predicted-to-grow.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Green Construction Predicted to Grow</title>
            <description> <![CDATA[ According to the latest McGraw-Hill construction SmartMarket Report the share of green homes on the market is expected to grow by leaps and bounds in the next four years.

 


      The report found that 2011's green home share is expected to be about 17 percent, but that number is predicted to rise to a staggering 29 to 38 percent by 2016.


      "In the current residential market, there is an enormous need to differentiate your homes for consumers," says Harvey Bernstein, Vice President of Industry Insights and Alliances at McGraw-Hill Construction. "When builders are able to offer homes that not only are green, but also offer the combination of higher quality and better value, they have a major competitive edge over those building traditional homes."


      Consumers are seeking out green homes for a couple good reasons. First, they save the consumer money in the long-run.  Also, they are seen to be of higher quality construction.


      The report found other factors are driving growth in the green home market. . About two-thirds of builders and remodelers surveyed said they have customers requesting green homes and projects. These consumers are seeking out lower energy costs.


      The higher costs of building green are less of a factor now than they were in 2008. Today's market has a good supply of green products meaning prices have fallen more in line with traditional projects.


      The report also noted, "Higher quality for both new home builders and remodelers. For those doing a high volume of green homes (at least 60% of the homes they build), its importance is magnified, with 90% who regard higher quality as an important trigger for building green, compared to 72% of builders overall."


      There is a definite shift taking place in the market as green practices spring to the forefront.


      The report found that "more than 80% report that energy efficiency is making today's homes greener compared to two years ago. Use of energy-efficient features is pervasive in the market - the top practice by nearly all surveyed builders and remodelers, regardless of their level of green building activity."


      Also tops in consideration are indoor air quality, with 95 percent of high volume home builders including these features, and durable materials being emphasized by remodelers.


      "These findings confirm the shift we've seen in the market," says Jim Halter, Vice President, Construction Solutions for Waste Management. "Builders and remodelers are placing more emphasis on energy efficiency, increases in sustainability focused waste management practices and more products made from post-consumer materials. These important factors are pushing our industry forward."


                                                                                                                                                                                                        Copyright 5/2012  Realty Times
 ]]> </description>
            <pubDate>Wed, 16 May 2012 10:42:55 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/understanding-appraisals.html</guid>
            <link>http://www.russlrobinson.com/blog/understanding-appraisals.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Understanding Appraisals</title>
            <description> <![CDATA[ 
It's a term homeowners and sellers hear all the time. What does "appraisal" really mean and how will it affect your ability to make a deal?


 


As the market dips and continues to struggle across the nation,  many sellers are finding themselves in an unhappy predicament. They have a buyer lined up and an offer on the table, but wait...... the buyer's financing has now fallen through. The asking price of the home has come in over the appraised value.


This has led to a unnaturally high number of contract cancellations. According to the National Association of Realtors (NAR), "Twenty-one percent of NAR members in January reported delays in contracts, and 33 percent said contracts fell through.. The number of contract cancellations remains mostly unchanged from December. An increase in the past year of contract cancellations or delays has been blamed on more lenders declining mortgage applications from stricter underwriting standards and low appraisals coming in under the agreed upon contract price."


Here are some things you need to know about appraisals:


First, it's true that lenders usually won't write a mortgage for more than a home is "worth". This sets them up for a large financial burden should the prospective borrower default on their loan. They will, instead, write a mortgage for whichever price is less, be it the sale price or the appraised value. From a business standpoint it is logical. For a stalled and unpredictable housing market,  it is downright frustrating.


An appraisal is figured by your local tax office (appraiser's office). They calculate what the market value of your home is based on,  the square footage and specifics of your home. Do you have a fireplace, hardwood floors, and four bedrooms? You'll pay more in taxes and have a higher appraised home than the same home with no fireplace and laminate floors.


You generally receive a statement from the tax office each year showing you the appraised value of your home. If you feel this is in error be sure to contest it!


It is much more likely in this market that homes are appraised for less than sellers are wanting to sell their home for. This is due partly to an ailing labor market that continues to drag home prices down.


Appraisals are a tricky business. They are objective and are easily influenced by local market factors.


Your local area's market conditions directly affect the appraised value of your home. If there are 10 houses on your street and 4 of them are in foreclosure, you're in for a shock when it comes to the current value of your home. These foreclosed homes could sell at a 15 to 20 percent discount over your home.


According to the NAR, "Distressed sales, which tend to sell at steep discounts, continue to hamper home prices nationwide. Foreclosures and short sales accounted for 35 percent of all January home sales, which is up slightly from 32 percent in December."


                                                                                                                                                                                Copyright 5/2012  Realty Times
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            <pubDate>Wed, 16 May 2012 10:39:14 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/real-estate-outlook-median-existing-home-prices-balance.html</guid>
            <link>http://www.russlrobinson.com/blog/real-estate-outlook-median-existing-home-prices-balance.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Real Estate Outlook: Median Existing Home Prices Balance</title>
            <description> <![CDATA[ 
The latest quarterly report from the National Association of Realtors (NAR) shows that median existing single-family home prices are indicating more balanced conditions.


 


Lawrence Yun, NAR chief economist, said there is some volatility in the price performance.  "Home prices are more volatile than normal because of sudden upswings in buyer activity in some localities, and also are affected by the prevalence of distressed sales," he said.


He continued that "home prices lag sales activity because the transactions were negotiated mostly in the previous quarter. Given the steadily dwindling supply of inventory and notably higher listing prices that are being negotiated today, prices are expected to show further improvements in the near future."


The median existing home price rose in around half of the MSAs, or metropolitan statistical areas. We're seeing improving sales and a declining inventory.


Overall inventory shows that at the end of the first quarter there were 21.8 percent fewer homes available for sale, leaving the number at 2.37 million existing homes.


The NAR reports that there has been a downtrend since inventories hit their peak in the Summer of 2007, coming in at 4.04 million available homes.


Yun says a big part of the current story on housing is housing inventory.  "We now have broad shortages of lower priced homes in much of the country, with very tight supply in Western states for homes through the middle price ranges.  This is good news for many sellers who wish to list now, or for those waiting for prices to improve."


The first quarter national median existing single-family home price came in $158,100. This is only slightly -- 0.4 percent -- less than year ago levels. Distressed homes are now making up a smaller percentage of the market. They were 32 percent of first quarter sales, as opposed to 38 percent a year ago.


NAR President Moe Veissi, reports that "housing supply and demand are roughly balanced with overall housing supply at the lowest level in six years, putting sellers on an even footing with buyers in most markets."


Regionally, the largest increase in first quarter sales was seen in the Northeast, which rose 8.6 percent. The West and Midwest followed a close second and third, at 5.9 and 5.5 percent. The South also rose by 2.1 percent in the first quarter.


Median existing home prices rose in both the Midwest and South, though only marginally. The Northeast saw sales decline 3.2 percent. The West fell 0.9 percent.


"This is the highest first quarter sales pace since 2007," Yun said.  "With strong market fundamentals, total home sales this year should rise 7 to 10 percent."


                                                                                                                                                                                                  Copyright 5/2012 Realty Times


 
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            <pubDate>Wed, 16 May 2012 10:36:09 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/short-sales-surpass-foreclosures-as-banks-agree-to-deals.html</guid>
            <link>http://www.russlrobinson.com/blog/short-sales-surpass-foreclosures-as-banks-agree-to-deals.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Short Sales Surpass Foreclosures as Banks Agree to Deals</title>
            <description> <![CDATA[ 
The number of U.S. home short salessurpassed foreclosure deals for the first time as banks became more agreeable to selling houses for less than the amount owed on their mortgages, according to Lender Processing Services Inc. (LPS)


Short sales accounted for 23.9 percent of home purchases in January, the most recent month available, compared with 19.7 percent for sales of foreclosed homes, data compiled by the Jacksonville, Florida-based company show. A year earlier, 16.3 percent of transactions were short sales and 24.9 percent involved foreclosures.


“It’s a fairly recent phenomenon that short sales have been increasing,” Jonathon Weiner, a vice president in the applied analytics division of Lender Processing Services, said in a telephone interview. “Short sales should be the dominant way of disposing of assets” in distress, he said.


Lenders are catching up to short sales after being slow to provide the staffing and incentives necessary to complete the deals, Weiner said. The transactions typically fetch a higher price for banks than sales of homes that have gone through foreclosure. In January, foreclosed homes sold for an average of 29 percent less than comparable non-distressed properties, compared with a 23 percent discount for short sales, according to Lender Processing Services. The gap has narrowed as short sales become more common, Weiner said.


Distressed-Property Inventory


The growing percentage of short sales, which don’t require going through the drawn-out foreclosure process, is a sign that the U.S. is making progress in working through its inventory of distressed properties, Weiner said. The increase in short sales also may help values find a floor quicker.


“Our baseline scenario is that home prices will hit a bottom at the end of this year,” he said.


The Federal Housing Finance Agency ordered loan servicers to respond to all short-sale offers within 30 days, and approve or reject them within 60 days, in an effort to expedite a process that can take months longer than conventional home sales, the agency said in a statement today.


The FHFA, which oversees mortgage companies Fannie Mae andFreddie Mac, wants to improve the short-sale process “to prevent foreclosure, keep homes occupied and help maintain stable communities,” Edward J. DeMarco, the agency’s acting director, said in the statement. Freddie Mac and Fannie Mae completed 125,456 short sales last year, the most recent period for which figures are available.


Cash Incentives


Banks including Wells Fargo &amp; Co. (WFC) and JPMorgan Chase &amp; Co. (JPM)last year began giving cash inducements as high as $35,000 to selected homeowners who agreed to a short sale as a way of speeding up the process.


Bank of America Corp. paid $19.9 million in the first two months of this year for 22,534 homeowners to relocate after short sales and deeds in lieu of foreclosure, when borrowers agree to return the property deed in exchange for debt forgiveness, the Charlotte, North Carolina-based company said March 16. Its short sales rose 31 percent in January and February from a year earlier.


Banks have struggled to reduce losses from delinquent mortgages. Almost 4.4 percent of homes with loans had received a notice of foreclosure sale at the end of 2011, the 11th consecutive quarter the rate has been higher than 4 percent, according to the Mortgage Bankers Association.


Falling Foreclosures


Foreclosure filings, including notices of defaults and bank repossessions, fell 16 percent in the first quarter from a year earlier after lenders under legal scrutiny slowed actions against delinquent homeowners, RealtyTrac Inc. reported April 12.


Lender Processing Services, a 2008 spinoff from title-insurance company Fidelity National Financial Inc. (FNF), counts short sales by tallying mortgage and property transfer documents filed with county recorders, Weiner said.


Other reports haven’t shown the same magnitude of short-sale growth. The National Association of Realtors reported that 13 percent of transactions were short sales and 22 percent were foreclosures in January. In February, short sales increased to 14 percent and foreclosure-related transactions declined to 20 percent, the group said March 21.


Showing an ‘Uptick’


The Realtors collect their data from transactions on the Multiple Listing Service, a database of homes on the market, and a survey of about 3,000 members, said Walter Molony, a spokesman for the association.


“The February data is showing a bit of an uptick,” he said in an e-mail from Washington. “We’re hearing the process is going a bit more smoothly now, so that comes as no surprise.”


The U.S. Department of Housing and Urban Development reported a preliminary 19,600 short sales in January, compared with the Lender Processing Services tally of 48,721. An April 6 HUD report showed that the number of short sales rose 4.3 percent from a year earlier as the number of real estate owned, or REO, sales -- another name for foreclosure sales -- fell 39 percent.


Before agreeing to accept a loss on a short sale, lenders usually require homeowners to show evidence of hardship, such as inability to afford their mortgage payments or the need to relocate for a job, said Weiner of Lender Processing Services.


California, Arizona


Short sales outnumbered foreclosures in states with some of the largest shares of homes facing foreclosure, such as Arizona, California, Florida, Nevada and New Jersey, Lender Processing Services reported.


In New Jersey, short sales have exceeded REO deals every month since June 2010. In January, short sales accounted for more than 15 percent of the 3,033 New Jersey homes sold, compared with 3.9 percent for foreclosures. It took 966 days for banks to repossess a home in New Jersey, second only to New York, according to RealtyTrac. Both states require judicial hearings for foreclosure approval.


In New York, where it takes 1,056 days to repossess a home, 7.9 percent of purchases in January were short sales while 2.3 percent involved bank-owned properties.


“In general, markets where larger incentives are provided usually have extended foreclosure timelines, such as Florida,”Tom Goyda, a spokesman for Wells Fargo, said in an e-mail from Ellisville, Missouri. Wells Fargo, which doesn’t disclose its short-sale totals, offers homeowners as much as $20,000 to relocate, he said.


Florida Short Sales


In Florida, the number of short sales has exceeded foreclosures since July, according to Lender Processing Services. That’s about nine months after banks imposed a moratorium on home seizures amid allegations they used improper documentation and forged paperwork to claim title to properties with delinquent mortgages. The five largest loan servicers, including Wells Fargo, Bank of America and JPMorgan, agreed in February to a $25 billion settlement of the allegations.


In California, which has the largest number of homes facing foreclosure, short sales have outnumbered sales of bank-owned homes since August. In January, 37.2 percent of homes sold in the state were short sales compared with 25.8 percent for foreclosures, according to Lender Processing Services.


Banks have sped up the short-sale approval process, requiring less paperwork to prove hardship, especially for homeowners who haven’t made a mortgage payment for months on their primary residence. Banks have offered  as much as $13,000 to relocate, an incentive that gets the homeowners engaged in selling the home.


                                                                                                                                                                                             Copyright 2012 Bloomberg


 
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            <pubDate>Fri, 20 Apr 2012 10:16:08 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/commercial-real-estate-forecasted-to-improve.html</guid>
            <link>http://www.russlrobinson.com/blog/commercial-real-estate-forecasted-to-improve.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Commercial Real Estate Forecasted to Improve</title>
            <description> <![CDATA[ 
The latest National Association of Realtors quarterly commercial real estate forecast indicates that all major commercial real estate sectors are seeing improved fundamentals.


 


Lawrence Yun, NAR chief economist, said vacancy rates are improving in all of the major commercial real estate sectors. "Sustained job creation is benefiting commercial real estate sectors by increasing demand for space," he said. "Vacancy rates are steadily falling. Leasing is on the rise and rents are showing signs of strengthening, especially in the apartment market where rents are rising the fastest."


The rental market has undergone some dramatic changes since the real estate bubble burst several years ago. Recession conditions and continued lagging in the economic recovery have led to more renters and subsequently rising rental rates


Over the next year vacancy rates are expected to decline even further. The office sector is forecasted to see a 0.4 percent decline. The industrial real estate market is forecasted for an 0.8 percent decline and 0.9 percent in the retail sector. The multi-family rental market is expected to see a 0.2 percent decline this year.


This projection will continue to increase the role of the landlord demanding bigger rent increases.


After rising 2.2 percent last year, average apartment rent is expected to increase 3.8 percent in 2012 and another 4.0 percent next year. Multifamily net absorption is forecast at 209,900 units this year and 223,600 in 2013.


"Household formation appears to be rising from pent-up demand," Yun said. "The tight apartment market should encourage more apartment construction. Otherwise, rent increases could further accelerate in the near-to-intermediate term."


Vacancy rates for the multi-family market, specifically, are likely to drop from 4.7 percent this first quarter to 4.5 percent in the first quarter of 2013.


                                                                                                                                                                                                    Copyright 2012 Realty Times
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            <pubDate>Wed, 18 Apr 2012 13:16:04 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/mortgage-rates-staying-low-on-renewed-euro-zone-debt-concerns.html</guid>
            <link>http://www.russlrobinson.com/blog/mortgage-rates-staying-low-on-renewed-euro-zone-debt-concerns.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Mortgage Rates Staying Low on Renewed Euro Zone Debt Concerns </title>
            <description> <![CDATA[ 
It is now obvious that the Euro zone financial crisis did not end with the Greece debt swap that took place recently. This week, Spain has become the latest region of concern as bond yields for that country rose to over 6 percent. In the background, Italy continues to be watched very closely as the financial situation there is also not very stable.


 


With all of this happening in Europe, worldwide investors are becoming cautious once again as they watch this new scenario play out and the impact it may have on other economies. Here in the U.S., mortgage rates are staying low on these renewed Euro zone debt concerns and have investors turning back to the safety of government bonds. Freerateupdate.com'ssurvey of wholesale and direct lenders shows that all mortgage rates, except jumbo 30 year fixed mortgage rates, have been steady throughout the week. Current 30 year fixed mortgage rates are at 3.750%, 15 year fixed mortgage rates are at 3.000% and 5/1 adjustable mortgage rates are at 2.375%, all of which are available with 0.7 to 1% origination fee for well qualified borrowers.


According to the Mortgage Banker's Association's Weekly Mortgage Applications Survey for the week ending April 6th, mortgage applications were down 2.5 percent. This could be due to both the holiday week and being the first week of the month, since most closings take place towards the end of each month. Of this number, the Refinance Index fell 3.1 percent and the seasonally adjusted Purchase Index dropped 0.5 percent. Refinances should begin to increase as more existing borrowers head for the Harp 2.0 program which is for underwater borrowers who have loans with Fannie Mae and Freddie Mac. Borrowers can search Harp 2.0 mortgage rates online in order to compare what lenders are offering.


FHA has now delayed implementing the latest credit qualifying guidelines until July 1, 2012. These guidelines are for borrowers who have default and/or collections totaling $1,000 and above. Until July, FHA will be taking comments and concerns into consideration while clarifying their guidelines. Current FHA 30 year fixed mortgage rates are at 3.375%, FHA 15 year fixed mortgage rates are at 2.875% and FHA 5/1 adjustable mortgage rates are at 2.875%. FHA's streamline refinance with no cash out will have reduced upfront and annual mortgage insurance premiums effective June 11, 2012. Any borrower who has already submitted a mortgage application, but has not closed, can have the lender cancel their FHA case number so that they can take advantage of these latest changes when they are in effect. Until that time, there will be a drop in applications for FHA refinances as everyone waits this time out in order to get the better deal. For normal FHA mortgages, the closing costs (APR) are high because of the upfront mortgage insurance premium and other FHA fees, but FHA allows these expenses to be added to the mortgage amount as long as the necessary loan to value remains in place.


The only change seen this week was for jumbo 30 year fixed mortgage rates which are now at 4.250%. Remaining the same, jumbo 15 year fixed mortgage rates are at 3.375% and jumbo 5/1 adjustable mortgage rates are at 2.500%. These low jumbo mortgage rates are available with 0.7 to 1% origination fee for borrowers who have maintained excellent credit. Jumbo mortgages, which are necessary for mortgage financing above the conforming and FHA loan limits, usually have stricter guidelines that are set by the lender. Since these are risky loans, lenders require larger down payments and additional month of reserves in order to reduce their exposure.


Average mortgage rates, which move in the opposite direction of MBS prices, remained stable since MBS prices (mortgage backed securities) were mostly up this week. Data released showed Import Prices for March increased 1.3% which was higher than expectations. PPI Inflation minus energy and Core PPI were both higher than expected, while March PPI was flat.


The Trade Deficit was smaller than predictions and U.S. Exports increased to an all time high. Jobless claims rose to the highest level since January and influenced Consumer Sentiment which fell according to The Thomson Reuters/University of Michigan's preliminary index. Despite this, retail sales rose 0.8% in March. In the housing market, Builder Confidence fell for the first time in seven months according to the National Association of Home Builders. While European issues continue to influence investor decisions, economic growth data for China, which came in weaker than expected, also affected markets this week. Corporate earnings will continue to be released, but are having little influence on market decisions.


FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.


                                                                                                                                                                                                                 Copyright 2012 Realty Times
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            <pubDate>Wed, 18 Apr 2012 13:13:19 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/real-estate-outlook-improving-markets.html</guid>
            <link>http://www.russlrobinson.com/blog/real-estate-outlook-improving-markets.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Real Estate Outlook: Improving Markets</title>
            <description> <![CDATA[ 
The latest National Association of Home Builders/First American Improving Markets Index (IMI) numbers show that a total of thirty-five states are now represented.


 


In order to be considered an improving market these metro areas must have shown improvement in housing permits, employment, and home prices for the last six months straight. This data is comprised from reports employment growth reports from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau.


"While housing markets across the country continue to struggle under the weight of overly tight lending conditions and other challenges, the April IMI indicates that at least 101 individual metros are showing measurable and consistent signs that they are headed in the right direction," said NAHB Chairman Barry Rutenberg. "A total of 35 states are now represented on the list, with 10 states having four or more entries. This positive news is in line with what our builder members have observed regarding firming conditions and improved buyer interest in certain locations."


Each month new markets have been joining this list, while some previously "improving" markets have slipped from their ranking.


The newest entrants this month included 13 new metro areas. Some of these new to the list areas are Rome, Ga.; Coeur d'Alene, Idaho; Greenville, N.C.; Brownsville, Texas; St. George, Utah; and Huntington, W.Va..


What do these latest rankings tell us about housing across the nation? We are currently entering the Spring selling season, a typically robust time of year for real estate. "The fact that the number and geographic distribution of improving housing markets continued to expand beyond the 100 mark in April bodes well for the start of the spring home buying season, and should be an encouraging sign for those who are considering a home purchase," added Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.


Additionally, there appears to be a stabilizing in many markets, with the Index beginning to plateau.  "After five consecutive months of gains, the IMI recently began to plateau, with many markets holding steady and a few experiencing the ups-and-downs that are typical in a choppy recovery," observed NAHB Chief Economist David Crowe. "The IMI is designed to highlight markets that are showing consistent improvement, and those markets that have registered the smallest gains are more susceptible to dropping off the list due to a minor setback in prices, permits or employment," he explained. At the same time, "as stronger markets approach stability, it will get harder for them to keep charting improvement, which will also limit the expansion of the IMI."


                                                                                                                                                                                                                             Copyright 2012 Realty Times
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            <pubDate>Wed, 18 Apr 2012 13:09:15 -0400</pubDate>
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            <guid>http://www.russlrobinson.com/blog/saving-for-a-home.html</guid>
            <link>http://www.russlrobinson.com/blog/saving-for-a-home.html</link>
            <author>kim@russlrobinson.com (Russ Robinson)</author>
            <title>Saving For a Home </title>
            <description> <![CDATA[ 
With home affordability at the highest rate seen in decades, now is prime time to make a purchase.


 


Many renters are wanting to turn over a new leaf by investing in a starter home. Current homeowners are wanting to take advantage of low prices and buy the home of their dreams.


The key to buying in today's market is having the funds and financial stability needed. How can you go about saving to buy a home?


Financial wiz Suze Orman tells her readers and viewers all the time about the benefits of homeownership, but also the importance of being financially ready for this move. She writes, "Never buy a home or piece of real estate if you do not have at least 10% to 20% to put down. While buying a home is a great investment, if you do not have at least 10% to 20% of the purchase price to put down, then you can't afford the home and are buying before you have demonstrated the ability to save, which is a bad idea in the current market."


How do you get to that point? The first and most important step is to commit to the goal of homeownership. This requires a change in habits. Many households today spend every penny that they make each month. Instead of saving 10, 20, or 30 percent of their monthly income like they should, they strategically make minimum payments. Still others spend further beyond their means and slip further into debt with each purchase.


Both of these habits are incredibly risky in an economy that sees a near 9 percent unemployment rate and slowed growth in most cities. In order to change old habits you must replace them with new habits.


Start by working out a budget. It can be very sobering to see the real numbers on your spending. Keep track of your spending for a month. See how much you are truly spending on dining out, entertainment, household spending, clothes, and all those little extras that add up. This goes double for cash purchases. Be sure to keep every single receipt.


Now that you have the facts, it's time to come up with a new budget. Set aside money for all of the necessities first (rent, mortgage, car payment, food, medical, etc).


Cut out the unnecessary items. Do you have to have cable? Perhaps you can change over to a smaller package that costs less each month. Do you need to go out to dinner multiple times a week? Instead choose to cook at home as a family.


Now that you've cut out the unnecessary and refocused your spending (or not spending) towards buying a home, it's time to funnel those extra funds into a savings account. Some people new to the savings game find it easiest to set up an automatic savings transfer each month that transfers a set amount. This keeps you obligated to your goal.


You'll have some wants that will be part of this budget. Some people like to dine out, shop for clothes, see movies, or go to concerts. This is fine if you can afford it, but in a real down and dirty savings game you might want to consider alternatives.


Rent movies instead of taking the whole family out for new releases. Play staycations in your own city instead of paying traveling and hotel costs. Finally, pack that daily lunch instead of dining out.


When you go shopping, including the grocery store, always go armed with a list. This will help reduce impulse shopping. Only buy items that are truly needed, not that simply catch your eye. Give bigger purchases some time and thought. Do you need that new TV? Wait a week or two and do comparison shopping and decide on what you really can afford.


Ultimately, learning to save is about learning to follow your own instincts. Our gut tells us when we're making an impulsive buy or spending more than we should. It tells us when we could easily bring lunch from home instead of going out to eat. It just takes listening.


                                                                                                                                                                                             Copyright 2012 Realty Times
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            <pubDate>Wed, 18 Apr 2012 13:05:22 -0400</pubDate>
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