Tag Archives: South Salem Homes

Bankrate: Mortgage Rates Show Little Movement | South Salem Homes

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Mortgage rates saw very little change this week, with the benchmark 30-year fixed mortgage rate inching lower to 4.48 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.31 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage stepped back to 3.50 percent, while the larger jumbo 30-year fixed mortgage climbed to 4.51 percent. Adjustable rate mortgages were slightly up this week, with the average 1-year ARM moving up to 3.29 percent and the 5-year ARM rising to 3.30 percent.

Mortgage rates have been in a docile state over the past few weeks, as uncertainty regarding global markets has receded. While the pace of the U.S. economic recovery is still an open question, things have transitioned to a wait-and-see mode that translates into tame movements in mortgage rates. The surge of monthly economic releases over the next ten days may answer some of those economic questions, and be a catalyst for renewed volatility in the bond market, and ultimately, mortgage rates. Mortgage rates are closely related to yields on long-term government bonds.

On May 1, 2013, the average 30-year fixed mortgage rate was 3.52 percent. At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.48 percent, the monthly payment for the same size loan would be $1,011.00, a difference of $111 per month for anyone that waited too long.

 

 

http://finance.yahoo.com/news/bankrate-mortgage-rates-show-little-123000542.html

4 signs the real estate market is in trouble | South Salem NY Real Estate

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wish I’d said this (and in a few weeks I will have, I’m sure) but Ramsey Su at Acting Man Blog did it first and in a way I’ve been searching for the words to explain.

Every week or so we get another indicator that’s supposed to tell us how the housing market is doing.

And every part of the industry trumpets whichever metric best serves its own purpose. Thus you have the Mortgage Bankers Association touting this “good news” about interest rates, while the National Association of Realtors touts how rising home prices are a great sign, and on and on.

But none of these measures – home sales, home starts, home prices, interest rates – tell the real tale.

Then along comes this boy named Su, who gets right to the heart of the matter:

The strength of the real estate market should not be measured by price appreciation, or the number of new and existing home sales. It should be measured by the support of underlying fundamentals and whether they can help to withstand economic cycles without policy makers having to go hog wild just to avoid a total collapse.

How healthy is the real estate market today?

He looks at some troubling measures we’ve noted at HousingWire – the decline of income growth, the bulk of Americans having subprime credit, and the fact that there’s nothing left in the Fed for another bailout if (when) things go pear-shaped again.

1. The Subprime Majority

Recently, I came across a report by the Corporation for Enterprise Development (CFED) titled Assets and Opportunity Scorecard. Some of their findings are quite interesting. According to the CFED Scorecard, 56% of all consumers have sub-prime credit. Sub-prime is “earned”. A consumer has to miss a few payments, or default on a loan or two to earn that status. These 56% cannot, or should not, be taking on more debt, especially a large debt like a mortgage.  They may also be struggling with a mortgage that they should not have taken out in the first place.

And with so few companies willing to loosen credit standards, even the worthy subprime don’t have many options.

2. Liquid Asset Poor

CFED found that 44% of households in America are Liquid Asset Poor, defined as having saved less than three months of expenses. As one would expect, 78% of the lowest income households are asset poor, but 25% of middle class ($56k to $91k) households also have less than three months of expenses saved.

How much of a down payment can you expect them to have on hand?

 

 

http://www.housingwire.com/blogs/1-rewired/post/28994-signs-the-real-estate-market-is-in-trouble

Washington housing market uneven in fourth quarter | South Salem NY Real Estate

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Washington state’s housing market softened in the fourth quarter of 2013 compared to the quarter before, but remained stronger than a year ago, according to the Runstad Center for Real Estate Studies at the University of Washington.

Sales of existing homes declined 8.6 percent in the September-December quarter of 2013, but still were 9.2 percent higher than the same time in 2012.

The seasonally adjusted sales rate was 91,340 homes, meaning that if the quarter’s pace continued unchanged for a year, that number of homes would be sold.

“Washington’s housing market is finding its balance,” said Glenn Crellin, associate director of the Runstad center. “Sales throughout 2013 totaled 93,730 units, well above any of the last five years, but still well below the pre-recession frenzy.”

An inadequate supply of listings available for sale continues to be a problem and contributes to increases in home prices, Crellin said.

The statewide median home sales price during the fourth quarter was 6 percent above a year ago at $256,300. Price increases were especially strong in the metropolitan Seattle area.

Median prices were lower than a year earlier in 16 counties, but most declines were less than 2 percent. Median prices ranged from $70,000 in Lincoln County to $421,000 in King County.

 

http://south-everett.villagesoup.com/p/washington-housing-market-uneven-in-fourth-quarter/1117564

 

First Person: Why Generation X Needs to Be Mortgage Free | South Salem NY Homes

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According to some headlines, Generation X has the most financial stress compared to any other generation. Many of us bought homes during the housing bubble. We are sending our children to college at a time when private college tuition costs as much as a house (not a house payment). In order to feel less stressed financially, I have made paying off my mortgage my No. 1 goal. So many experts scoff at the idea of putting extra money toward a mortgage when interest rates are so low. I have a mortgage rate of 2.75 percent. Because my interest rate is so low, I don’t usually have enough mortgage interest to make it worth my while to itemize my deductions. Therefore, I don’t deduct my mortgage interest. According to a recent article by The Street, people who are 35 to 44 have the most financial worries. A Pew study shows Generation X lost an average of $33,000 per person after the Great Recession. Although I’m dealing with stagnant wages, layoffs in my family and high college costs, I know owning my home outright will provide economic security for the rest of our lives.

Owning instead of renting

If I could come out ahead even though I bought a home during the top of the housing bubble, I am confident my Gen-X peers will come out ahead by buying a home at this time. Even though real estate prices are not at the bottom, it’s still more affordable to buy now than it was during the housing bubble. We pay just $900 a month to own our home, but renting a similar home would cost $1,300. When we retire, we will just have to pay property taxes as well as optional home owner’s insurance.

 

http://finance.yahoo.com/news/first-person-why-generation-x-needs-mortgage-free-184800194–finance.html

US mortgage applications near flat in latest week: MBA | South Salem NY Real Estate

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Applications for U.S. home mortgages edged slightly lower in the latest week, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, slipped 0.2 percent to

The index hit its lowest level since December 2000 at the end of last year, soon after the U.S. Federal Reserve announced it would start pulling back on its $85 billion per month bond-buying program as the economy grows strong enough to stand on its own.

The interest rate on fixed 30-year mortgages averaged 4.52 percent last week, the lowest level since November and down 5 basis points from the previous week.

 

http://www.cnbc.com/id/101371017

3 proclamations from social media ‘experts’ | South Salem Realtor

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Social media “experts” abound these days. Many send conflicting messages every time technology changes, delivering “urgent” signals to hop on the next big thing or be left in the dust.

If someone refers to themselves as a social media expert, your first red flag should go up. The landscape of social media is huge. Someone may be an expert in strategies, tactics or particular channels (for example, Mari Smith is an expert in Facebook), but an expert in all of social media? Nope.

If you hopped on every bandwagon as instructed, you would be in a constant state of disarray. How could you possibly have time to run your business?

The following are directives you may receive as you search the Web, and things to consider as you hear them.

1.  ”Be on every social media channel or be left behind”

Particularly for those just getting started, this will take you down before you begin. If you have a goal of running a marathon, are you going to put “run 26.2 miles” on your calendar tomorrow morning? No. You would map out a plan that takes you from point A to the point of reaching your goal in digestible pieces. This sort of overwhelming statement is what causes people to procrastinate — sometimes for years

 

 

 

– See more at: http://www.inman.com/next/3-proclamations-from-social-media-experts-that-will-kill-your-implementation-strategy/?utm_source=20140127&utm_medium=email&utm_campaign=dailyheadlinesam#sthash.qAKuE3yS.dpuf