Buyer Optimism is up

Interest Rate Update

Interest Rate Update

November 25, 2013

Interest rates have eased down a tiny bit over the last few weeks. Some "experts" say rates

could dip down again for a short period of time to keep the housing market moving.



Back From The Brink

30 Year Fixed up to $417,000 3.99% to 4.25%

30 Year Fixed "Agency" up to $625,500 4.125% to 4.625%

30 Year Fixed FHA up to $417,000 3.75% to 4.0%

30 Year Fixed FHA "Jumbo" up to $729,500 3.75% to 4.125%





Pending Home Sales Slow


A report just out shows the pending home sales slowed a bit last month which is a good thing.

First of all the report deals with data nationwide. Our area is still experiencing strong sales.

Secondly a little slower pace would actually be good for the market. We have seen record sales

and record appreciation rates over the last 6 to 8 months and that is a pace that is not sustainable

over the long run. We are also seeing many first time or limited down payment buyers having

trouble getting offers accepted due to properties selling over sales price. Sellers are opting for

larger down payment buyers in anticipation of possible appraisal problems.



How Does This Affect You ?
Hopefully the inventory of homes for sale will increase a bit and move the market back to a

more normal pace. Experts believe that the next 5 to 10 years will be very good for the real estate

market. As the economy improves and unemployment stabilizes, more and more people

will feel confident in buying real estate again. Interest rates will move upward at some point

which will also help the market get back to a more normal situation.

Small Home Improvements with Big Returns for Sellers

Experts say a few key home improvement projects can help seller increase their listing price and decrease the time their homes sit on the market, but not all projects will result in the same return. Curb appeal is a big factor, and new paint in neutral colors can show an owner's commitment to maintenance. Read the full story

Homeowners with more equity want to improve their homes

As the housing market has improved, homeowners have seen their home equity levels rise. However, in the difficult lending environment that consumers are currently experiencing, it can be difficult to tap into this home equity to finance remodeling projects. Institutions reportedly remain hesitant about providing home equity lines of credit at a time when more homeowners are interested in restoring their properties, according to a new report from Fitch Ratings. The home improvement sector still faces challenges, such as elevated unemployment levels and weakened consumer confidence. Making sense of the story According to Compass Point Research & Trading, homeowners have watched their equity increase $571 billion in the second quarter of 2013 and $2.2 trillion over the past year. If institutions change course, rising equity could support the issuance of home equity loans by banks and potentially increase the pool of borrowers eligible for refinancing. While lending standards remain tight, another hurdle is banks, thrifts, and credit unions have not explored various products to tap into a new market of profitability, according to Business Loan Connection. For example, one loan product specifically focuses on home improvement loans, which goes up to roughly $30,000. The Fitch Ratings report notes that remodeling spending is expected to pick up for the remainder of the year and into 2014 since more homeowners are revisiting restoration projects they previously deferred.  Homeowners are now more willing to undertake discretionary projects and purchases, whereas most investments in home improvements over the past few years were focused on necessities.

Sellers lose grip on the market

Are sellers losing their dominant position in the housing market? A new poll from Redfin found that 72 percent of surveyed agents describe now as a good time to sell compared to 86 percent in the second quarter. Read the full story

7 reasons rentals are rocking the housing market

The Week spells out seven key reasons why homeownership is facing some challenges, such as the lingering impact from the foreclosure crisis, tight lending conditions, the impact of investors on reshaping the market, and Millennials renting before buying. That being said, buying a home is 35 percent cheaper than renting in the long term. Read the full story

‘Vampire’ foreclosures could damage housing market

RealtyTrac has coined the new term “vampire foreclosures” to describe the growing number of homes around the country that have been seized by a bank, but are still lived in by the original owners. In some major cities, up to 65 percent of bank-owned homes are considered vampire foreclosures. Read the full story

Improving Housing Market May Boost U.S. Credit, IMF Reports

According to the International Monetary Fund, small- and medium-sized businesses stand to benefit from improvements in the U.S. housing market, as they can use housing as collateral to obtain more loans. Large corporations are more likely to benefit from relaxed financial conditions and expanding corporate markets than smaller enterprises. Read the full story

Mortgage Updates

Interest Rate Update


Interest rates have eased down a tiny bit over the last few weeks. Some "experts" say rates

could dip down again for a short period of time as Congress and the Senate continue to fight

and bicker over the budget and debt ceiling.

30 Year Fixed up to $417,000 3.99% to 4.25%

30 Year Fixed "Agency" up to $625,500 4.125% to 4.625%

30 Year Fixed FHA up to $417,000 3.75% to 4.0%

30 Year Fixed FHA "Jumbo" up to $729,500 3.75% to 4.125%





　

How Does This Affect You ?
It appears that the inventory of homes for sale has picked up a little bit which is a good thing.

We need the market to cool a bit so the first time buyers can get back in the game. Seems most

of the listings are being bought by all cash offers or buyers with large down payments. I have

several FHA or 5% down payment buyers who have been unable to get any offers accepted. I

still believe the next several years will be excellent for all people in our industry.