Archive for June, 2010
Bank Reposessions Reach Record Levels For The Second Straight Month
June 17th, 2010 categories: Foreclosures, Knoxville Short Sales, Market Trends, Sellers
According to foreclosure-tracking firm RealtyTrac.com, bank repossessions reached record levels for the second straight month in May, topping 93,000 properties nationwide.
As compared to May 2009, all 50 states now show an increase in annual REO activity.
Data like that won’t surprise today’s active home buyers in Farragut. Foreclosed homes are prevalent, available and accounted for one-third of all home resales made in April.
Furthermore, total foreclosure actions — the sum of REO, default notices, and foreclosure auctions in May — topped 300,000 for the 15th straight month.
Foreclosures remain a huge influence on the housing market.
However, two interesting trends emerged in the data:
| Discussion: No Comments »
Change Your Air Filters Monthly (But Don’t Go Cheap)
June 17th, 2010 categories: Home Appliances
As the mercury rises into the summer months, don’t forget to change your home’s air filters regularly. It not only extends the life of your HVAC unit, but can help keep your energy costs down, too.
Not all air filters are created alike, however. Don’t go cheap.
Your local hardware store carries a variety of air filters ranging in price from less than a dollar to $20 or more per filter. They’re all purported to do the same job, but after watching this 1-minute video, you’ll see why cheaper isn’t necessarily better.
Airborne particles are smaller than most mesh filters. Pleated filters are recommended instead.
Most high-quality air filters start around $11 and can be purchased in bulk from Amazon at discounts of up to 20 percent. 3M’s Filtrete line of products is a popular, well-selling brand and can last up to 3 months.
If your home has shedding pets or is dust-prone, consider changing them monthly.
| Discussion: No Comments »
Conforming Loan Costs Are Rising, Says Freddie Mac
June 9th, 2010 categories: Adjustable Rate Mortgages, Buyers, FHA Mortgages, Market Trends, Mortgage Guidelines, Mortgage Rates, Sellers
Mortgage rates may be dropping, but mortgage costs are not.
According to Freddie Mac, the average required discount points on a conforming mortgage rate are higher by 0.1 percent since early-May.
A “discount point” is prepaid mortgage interest; an up-front fee paid by a borrower in exchange for a lower mortgage rate. In most cases, discount points are tax-deductible.
Tax-deductible or not, though, rising costs are rising costs and Freddie Mac glosses over it. In its weekly press release, the government group offers mortgage rate comparisons to weeks prior, but doesn’t do the same for required points.
The press fails to mention discount points entirely.
An increase of 1/10 percent in discount points costs homebuyers and refinancing households in Maryville an extra $100 per $100,000 borrowed.
The hike reminds us that there’s more to a mortgage than just its rate — costs matter, too. And if you’ve only been watching the headlines, you would have missed how costs are rising.
| Discussion: No Comments »
Fannie Mae’s Loan Quality Initiative : Repulling Your Credit Just Before Closing
June 8th, 2010 categories: Adjustable Rate Mortgages, Buyers, Existing Home Sales, FHA Mortgages, Market Trends, Mortgage Guidelines, Mortgage Rates
A new loan quality initiative from Fannie Mae is making it harder for Farragut home buyers and refinancing homeowners everywhere to close on a mortgage.
Beginning June 1, 2010, with all new applications, Fannie Mae wants lenders to verify that borrowers have not taken on new debt during the underwriting phase of the mortgage.
If new debts are found, the mortgage is subject to a re-underwrite and a possible turndown.
| Discussion: No Comments »
May 2010 Jobs Report Gives A Temporary Boost To Home Affordability
June 4th, 2010 categories: General, Jobs
On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls data from the month prior.
The release is more commonly called “the jobs report” — a major factor in mortgage rates and monthly payments.
Especially now.
With the recession officially over and growth returning to the U.S. economy, the recovery’s next frontier is jobs. As job growth increases, home affordability should take a hit. Here’s why:
- As the number of working Americans increases, so should total consumer spending
- As consumer spending increases, so should a return to risk-taking on Wall Street
- As risk-taking returns to Wall Street, bond markets should start to lose
Mortgage rates, therefore, should rise.
| Discussion: No Comments »
Pending Home Sales Data Shows Great Deals On Homes Are Getting Harder To Find
June 3rd, 2010 categories: Pending Home Sales
The Pending Home Sales Index shot higher in April as low mortgage rates and a soon-to-expire federal tax credit spurred home buying in Farragut and across the county.
A “pending home sale” is a home that’s under contract to sell but not yet closed.
Region-by-region, April’s pending home sales varied versus March’s data:
- Northeast Region: +29.5%
- Midwest Region : +4.1%
- South Region : -0.6% (after a +15.9% posting in March)
- West Region : +7.5%
On an annual basis, the Pending Home Sales Index is higher by 22 percent.
| Discussion: No Comments »
Case-Shiller Shows Home Price Improvement In 90% Of Cities
June 2nd, 2010 categories: Case-Shiller Index
Standard & Poors released its Case-Shiller Index Tuesday. The index is a monthly home valuation report from select cities and among the private sector’s most popular home pricing models.
In reviewing the April Case-Shiller Index and its accompanying analysis, it appears that the housing market’s rebound is gathering momentum.
| Discussion: No Comments »
Consumer Confidence Hints At Higher Home Prices And Higher Mortgage Rates, Too
June 2nd, 2010 categories: Consumer Confidence
The Consumer Confidence Index is rising, a potentially double-edged sword for residents of Farragut and for Americans, in general.
According to The Conference Board, economic confidence is as high as it’s been since August 2007 — 4 months before the start of the recession. Americans are optimistic again.
Confidence matters to the economy because as confidence increases, in theory, consumer spending follows. Consumer spending accounts for 70 percent of the U.S. economy.
It’s why Wall Street is responsive to confidence data.
When consumer confidence is rising, households start to make big-ticket purchases they may have otherwise put off indefinitely. Maybe it’s a replacing old appliances; or, trading in an old automobiles; or, splurging on a vacation.
Rising confidence can also spur real estate sales.
| Discussion: No Comments »
How To Replace Your New Home’s Deadbolt Locks
June 1st, 2010 categories: Home Decor, Home Gadgets, Home How To, Home Improvement, Kitchen Gadget
After moving into a new home in Knoxville , you should immediately replace its deadbolt locks. It’s not just the home’s former residents that have the key, after all, but so might a relative, a friend, a neighbor, a dog-walker, and others.
You may call a locksmith for the job, but you can save some money if you can do-it-yourself.
In this detailed, 2-minute video, you’ll learn how to remove and replace a deadbolt lock using nothing but a Phillips screwdriver and a deadbolt from a hardware store. It’s a simple project that requires little mechanical skill.
And one that can make your new home more safe.
| Discussion: No Comments »
