Archive for the 'Home prices' Category
Home Sales May Grow Thanks to Affordable Housing
May 20th, 2011
Written by Frost Mortgage
Housing experts predict home sales will rise between 7 and 10 percent in 2011 from last year, thanks to an improving job market, sustained economic growth and greater housing affordability.
Low interest rates also are helping many transition from renting to owning in a market that is still facing a glut of distressed homes. Based on the National Association of Realtors’ Affordability Index, those earning the national median income have 170 percent of the income they need to purchase a median-priced home.
International Business Times (05/20/11) Chongchua, Phoebe
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Cheaper to Buy Than Rent in 78 Percent of Major Cities
April 28th, 2011
Written by Frost Mortgage
Owning a home is more affordable than renting in 39 of the nation’s 50 most-populated cities, based on the latest quarterly rent vs. buy index from Trulia. Falling home prices and rising rents make buying cheaper in 78 percent of cities, up from 72 percent in the previous quarter; the price-to-rent ratio fell quarter-to-quarter in most of the 50 cities. Las Vegas is the top locale to buy vs. rent, followed by Phoenix; Arlington, Texas; Fresno, Calif.; Miami; Mesa, Ariz; Jacksonville, Fla.; Sacramento, Calif.; Detroit; and Omaha, Neb.
Inman News (04/28/11)
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New-Home Sales Up, But Pace Is Still Lagging
April 26th, 2011
Written by Frost Mortgage
New-home sales climbed in March after three straight months of declines, reports the Commerce Department. Sales increased 11 percent from February to an annual rate of 300,000 units, but the pace is still far short of the 700,000 units a year that economists consider healthy. Economists believe it could take years for sales to return to those levels. Commerce also reports that the median price of a new home rose nearly 3 percent from February to $213,800.
Washington Post (04/26/11) P. A12
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Existing-home sales up 3.7% in March
April 20th, 2011
Written by Frost Mortgage
Existing-home sales rose 3.7% between February and March, but still remain below year-ago levels as consumers struggle to obtain mortgage financing, the National Association of Realtors said Wednesday.
However, the homebuyers joining the market are enjoying record-low mortgage rates. NAR’s home affordability index shows the monthly mortgage principal and interest payment on a median-priced home is only 13% of gross household income, the lowest level since 1970.
“Given that FHA (Federal Housing Administration) and VA (Veterans Affairs) government-backed loan programs turned a modest profit over to the U.S. Treasury last year, and have never required a taxpayer bailout, we believe low down payment loans should continue to be available for those consumers who have demonstrated financial responsibility and are willing to stay well within their budget,” NAR President LawrenceYun said.
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Discounts Expected in Spring Housing Market
March 22nd, 2011
Written by Frost Mortgage
The National Association of Realtors reports a 9.6 percent drop in home resales in February and a decline in the median price to a nine-year low of $156,100 – which it attributes in part to poor weather, a jump in distress sales and abandoned deals due to lowball appraisals. Observers anticipate a similar trend for new homes, prompting some builders to hike discounts and broker commissions. Experts say low interest rates and bargain pricing could draw more buyers during the spring home-buying season.
Wall Street Journal (03/22/11) P. A5 Kalita, S. Mitra; Wotapka, Dawn
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U.S. Home Sales Accelerate as Prices Decline Amid Rebound
March 8th, 2011
Written by Frost Mortgage
The National Association of Realtors reports a drop in the resale home price to a median of $158,800 in January — the third decrease in three years and a nine-year low. Falling prices helped boost sales 22 percent from October; but the rebound may be short-lived, with the Mortgage Bankers Association expecting interest rates to near 6 percent by year-end and experts projecting lower demand due to higher energy prices.
Bloomberg (03/08/11) Howley, Kathleen M.
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Home Affordability Returns to Pre-Bubble Levels
February 9th, 2011
Written by Frost Mortgage
Data from Moody’s Analytics shows that U.S. home affordability returned to pre-bubble levels in a growing number of markets over the last year as price depreciation set the stage for a housing rebound. Of the 74 markets tracked, affordability at the end of the third quarter had either returned to or surpassed the average reached between 1989 and 2003 in 47 of those markets. At the same time, however, price drops left more borrowers owing more on their mortgage than the property is worth.
(More)
Wall Street Journal (02/09/11) Timiraos, Nick
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Home Builders Are Cautiously Optimistic
January 11th, 2011
Written by Frost Mortgage
While signs of economic growth could mean good news for U.S. home builders, they are cautious in their optimism–especially since project financing remains elusive for many.
Federal Reserve Gov. Elizabeth Duke notes that sustained recovery in jobs and income, a firming up of home values and a decrease in the supply of vacant homes are necessary for a housing market rebound. Moreover, Weiss Research analyst Mike Larson says builders face intense competition from discount properties.
MarketWatch
Hoak, Amy
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Albuquerque’s housing market still unsettled
November 19th, 2010
Written by Frost Mortgage
The Albuquerque housing market reached a new low in October, and there are foreboding signs that it will continue falling through next spring.
Closed sales of existing homes declined 37.6 percent compared to Oct. 2009, according to the latest report from the Greater Albuquerque Association of Realtors.
Many thought the market had bottomed last year, and were surprised by the steep October drop. They now say 2009 was a false bottom, and with foreclosures on the rise, the market is heading toward its ultimate depths.
The Albuquerque metro region’s housing market has been sliding since early summer, when government subsidies …
New Mexico Business Weekly – by Steve Ginsberg
Read more: Albuquerque’s housing market still unsettled | New Mexico Business Weekly
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Business Better as Rates Retreat
November 12th, 2010
Written by Frost Mortgage
| Mortgage activity picked up this week as interest rates were lower. But jumbo mortgage prices worsened relative to conforming rates.
The conforming 30-year fixed-rate mortgage declined to 4.181 percent from 4.230 percent in the Mortech-Mortgage Daily Mortgage Market Index report for the week ended Wednesday. Meantime, the 30-year jumbo was unchanged at 5.070 percent — inflating the jumbo-conforming spread to 89 basis points from last week’s 84 BPS. The Mortgage Market Index, itself, jumped to 311 from 288 seven days earlier. The improvement appears to be the work of rising refinances; the total refinance share moved up to 61 percent from 60 percent last week. This week’s share included a 46 percent rate-term share and a 15 percent cashout share. The average U.S. loan amount rose to $214,267 from the previous week’s $212,501 — indicating average origination fees also increased. The highest average mortgage amount was Alaska’s $295,095, and the lowest was Nebraska’s $151,977. |
By MortgageDaily.com staff
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