Archive for August, 2010
Home Builder Confidence Falls Again; Home Buyers Gain Leverage?
August 17th, 2010 categories: Homebuilders
Home builder confidence in the newly-built, single-family housing market is down for the third straight month this month.
After reaching a 3-year high just 90 days ago, the National Association of Homebuilders’ Housing Market Index is now at a multi-year low. It’s since dropped by almost half.
As an economic indicator, the HMI’s goal is to “take the pulse of the single-family housing market”. It surveys home builders across the country and asks them to report on 3 facets of their business:
- How are market conditions today?
- How do market conditions look 6 months from now?
- How is the prospective traffic of new buyers for new homes?
Responses are then collated, weighted, and presented as the Housing Market Index.
The August HMI reading of 13 is the lowest since March 2009.
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30-Year Mortgage Rates Make New Lows, But Look Ready To Spike
August 16th, 2010 categories: Mortgage Rates
No doubt you’ve heard that mortgage rates are low. They’re lower than they’ve ever been in history. The news is everywhere.
Just check out some of these headlines from the last 24 hours:
- Mortgage rates set new lows for the 6th straight week (Reuters)
- Mortgage rates fall again; 30-year fixed at 4.54% (Wall Street Journal)
- Mortgage rates hit another low : 4.54% (NPR)
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Falling Consumer Confidence Helps Drag Mortgage Rates Lower. For Now.
August 16th, 2010 categories: Consumer Confidence
For the second consecutive month, U.S. consumer confidence is plunging. July’s official reading is its lowest since July of last year and the figures run in stark contrast to just two months ago, when the index touched a multi-year high.
According to The Conference Board, July’s figures are reflective of a more pessimistic consumer; one concerned about “business conditions and the labor market”.
Falling confidence numbers are presumed to be poor for the economy. For homeowner and home buyers in Maryville , however, they can create opportunity. Low confidence can influence the mortgage market in a positive manner, driving mortgage rates down.
Mortgage rates are already at their lowest levels of all-time.
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Home Values Within 12.5 Percent Of April 2007 Peak, Nationwide
August 16th, 2010 categories: Home Price Index
According the Federal Home Finance Agency’s Home Price Index, home values are now off just 12.5 percent from their April 2007 peak nationwide. This, after a half-percent monthly increase in prices in May, on average.
Given the state of the market since April 2007, the Home Price Index results are a positive for both the housing market and the economy, but we have to remember that May’s half-point increase is an average, and not specific to a particular area.
In contrast to “national markets”, the real estate markets in which you and I live are decidedly local. It’s a major difference and the distinction renders the Home Price Index somewhat less important.
After all, the HPI doesn’t account for housing activity in individual neighborhoods like Montgomery Cove , nor does it track value across cities like Knoxville. Instead, it summarizes data in giant chunks of geography.
A quick look at the HPI regional data proves the point. Of the HPI’s 9 tracked regions, only one was within one-tenth of one percent of the national, half-point average. The others varied by as much 1.3 percent.
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What Does It Mean To Escrow Taxes And Insurance?
August 16th, 2010 categories: Budgeting
The fiscal responsibility of a homeowner — in Knoxville and everywhere else — extends beyond the mortgage’s basic principal and interest repayments. Homeowners are also responsible for the real estate taxes on the home and its insurance premiums, too.
Failure to pay taxes can lead to foreclosure, and failure to insure is breach of your mortgage contract.
As a homeowner, you have a choice about how you manage your real estate tax and insurance bills. You can choose to pay them from your own bank account when the bills come due, or you can choose to pay 1/12 of the annual bill to your mortgage servicer each month, and then let your servicer pay the bills on your behalf when they come due.
Not surprisingly, servicers prefer the latter method — it reduces two major lender risks:
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How To Unclog A Sink That Won’t Respond To Drano
August 16th, 2010 categories: Buyers
Sometimes, a backed-up sink is too big of a job for a bottle of Drano. To clear the clog, you have to get your hands dirty. But what do you do? This quick, 2-minute video from Lowe’s is an excellent tutorial.
The video starts with basic safety preparation, then shows you how to:
- How to identify the J-trap beneath your sink
- Position a plastic bucket to catch water run-off
- Use your finger to clear out debris
- Replace the J-trap beneath the sink
Unclogging a sink can be simple homeowner project, but if you’re uncomfortable working with plumbing or just want to outsource, be sure to call a professional.
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Higher (And Lower) FHA Mortgage Insurance Premiums Start October 4, 2010
August 16th, 2010 categories: FHA Mortgages
For the second time this year, the FHA is modifying mortgage insurance.
Beginning with FHA case numbers issued on or after October 4, 2010, the FHA is changing its upfront and annual mortgage insurance premium structure.
Under the new terms, assuming a 30-year fixed rate FHA mortgage with at least 5 percent equity:
- Upfront MIP drops to 1.000% of the amount borrowed from 2.250%
- Annual MIP increases to 0.850% of the amount borrowed from 0.500%
For homeowners in Knoxville and everywhere else , this switch in MIP decreases the upfront cost of an FHA-insured mortgage, but increases the loan’s long-term costs.
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How Big Is The Foreclosure Market? It Depends On Where You Live, Of Course.
August 16th, 2010 categories: Foreclosures
Foreclosure filings rose 4 percent nationwide last month versus June, according to foreclosure-tracking firm RealtyTrac.com. For the 17th straight month, total filings topped 300,000.
A foreclosure filing is defined as default notice, scheduled auction, or bank repossession.
As with most months, just a handful of states dominated foreclosure activity nationwide.
- California : 14.9 percent of all activity
- Florida : 11.6 percent of all activity
- Arizona : 6.4 percent of all activity
- Michigan : 6.2 percent of all activity
- Georgia : 6.1 percent of all activity
- Texas : 4.9 percent of all activity
- Read the rest of this entry »
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Case-Shiller Shows Home Price Improvement In 95% Of Cities
August 15th, 2010 categories: Case-Shiller Index
Standard & Poors released its Case-Shiller Index Tuesday. On a seasonally-adjusted basis, between April and May 2010, home prices rose in 19 of Case-Shiller’s 20 tracked markets. It’s the second straight month of strong Case-Shiller findings.
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