Average Mortgage Rates Eased Lower + Home Prices UP!

Here is the gist of it: Freddie Mac says that for the second week in a row, the average fixed mortgage rates have eased up.  What does that mean? Well, the 30-year FRM averaged 4.31% as of July 25th, which is down from 4.37% the week before.

Even though we were looking much better this time last year with a cool 3.49% for the 30-year, the current 4.31% isn't that bad!

Yes, the economists have been concerned about the recovery of the housing  market slowing down after its been rapidly improving over the past year. However, sales for existing homes in June reached the second-highest level that its been at since November 2009, and new home sales are now as strong as they've been since May 2008.

What does that mean? People are still buying and selling houses.

There is currently a low inventory of homes available to purchase which causes housing prices to rise.  This is good if you're trying to sell a house because your home is a hot commodity and you'll get a prettier penny for it than you would have a year ago.

If you're looking to buy, you'll need to be very careful and do your research. Hunting for the perfect home is hard in and of itself, but now you've got to be quick since homes are in hot demand, and the prices are higher than they were previously.

Yes, the mortgage rates are also higher than they were but you know what? If you look at the history of mortgage rates, you'll see that they have always averaged a bit higher than 4.31%.  You could always refinance again in the future if the rates decide to drop to the mid-3% again.

Bottom line: If you need a new home, don't hesitate to buy one just because the rates are a teeny bit higher than they were before. Remember, they just dropped a bit since last week! They could drop again next week! Even if they go back up, don't put your life on hold because of statistics and numbers.

Call us if you need help applying for a mortgage for your new home! We work quickly! :)
888-883-5252

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Housing Starts, Home Prices, and Talk of an Impending Bubble?

In May, housing starts rose nationwide by 6.8 percent due to an increase in the production of multifamily homes. That equals roughly 914,000 units on a seasonally adjusted annual basis.

Much of the country received wet weather in May which slowed the building of single-family homes, however despite the setback, there was an increase in permits issued for single-family units. This goes to show that housing is slowly but surely recovering.  Single-family housings starts remained at a steady pace of roughly 599,000 units in May.

Builders across the country are able to respond to this demand for construction of new homes as well as rental apartments. The only problem that is keeping the new housing industry from booming is that lack of available building materials, lots and willing laborers.

Despite great figures in housing starts, the actual issuance of new building permits has declined in May by 3.1 percent, which relates to 974,000 units. This is because of a spike in multifamily permits in April that led to a 10 percent decline of units. However, the single-family side of the coin has seen their best pace in five years with permits increasing by 1.3 percent to 622,000 units in May.

The country has also been seeing an rise in home prices and this has caused many to worry that we may be entering into another "bubble" that will eventually burst and cause another recession. The prices have climbed more than 10 percent nationally in March and April, and these double-digit gains in prices are unsustainable, but many economists believe it may be too early to say we are currently in a bubble.

The current average home prices are relatively low today when compared to historical values. They are still 28 percent below what they were during July 2006's price peak.

So while many fear that we are heading for a bubble, others argue that it is premature to assume such. Yes, the market is recovering steadily but we still have a long way to go to catch up to the levels we were once at before the recession. Home prices will continue to rise and, for now, it should be perfectly fine. We will continue to monitor the situation.

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Home Prices Continue to Increase!

We recently took at look at CoreLogic's HPI report for April. It showed that Home Prices nationwide, including distressed sales, have increased by 12.1 percent! This is on a year-over-year basis, comparing April 2013 to April 2012.  This is the biggest year-over-year increase since February 2006!

April was the 14th consecutive month to see an increase in home prices.  Over the past few years, because of the recession, home prices have dropped significantly. This is one of the reasons why so many have faced foreclosure. Their homes were suddenly worth much less than they owed on them and they were unable to sell them. Once the unemployment rates went up as well, people struggled!

We are thankful now that everything is stabilizing once again. We've helped so many people to refinance their mortgages which gives them better rates and a lower monthly mortgage payment. Many have avoided foreclosure because of this. Now that home prices are increasing, fewer people find themselves "underwater" and can sell their homes for a decent price.

If you find yourself struggling to make your payments, consider refinancing! Visit us at CrossCountryMortgages.com  or call 888-883-5252. We can help!

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Rates Rising: Lock It In While You Can!

After weeks of falling, the mortgage rates have recently rose to their highest point in six weeks. Previously pressing to set record-lows, the current mortgage rates for a 30-year mortgage are averaging 3.51 percent.  The average 15-year rate also increased to 2.69 percent.

Earlier this month, the 15-year rate set a record-low at 2.56 percent. Last November saw the lowest rate for a 30-year mortgage with an average of 3.31 percent. Most recently, we saw 3.35 percent.

With the rates steadily climbing again, we tend to encourage borrowers to lock in these somewhat low rates while they can. There is no guarantee that they will drop again since the housing market is recovering and home prices are increasing. There is an increased demand for homes due to a tight inventory. The whole market seems to be growing more and more competitive. Home buying season has been strong and moderately priced homes are selling fast!

California currently holds 8 out of 10 spots on the list of markets with the largest increase in median list price throughout the country. This means that these markets were hit the hardest by the crisis and are in turn rebounding the highest now that the housing recovering is gaining momentum.

Visit the links on the right side of this page to find the right company for you.

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Home Data Index Market Report Summary

According to Clear Capital's Home Data Index Market Report from September 2012, the uncertainty of the fiscal cliff is threatening to slow the rate at which the housing market has been recovering. (The fiscal cliff is a term describing the issues the U.S. Government will face at the end of 2012 when the Budget Control Act of 2011 takes effect.)

The report also states that the national yearly price of homes has increased by 3.6% and it is predicted that it will increase another 2.2% over the next six months. If we can avoid the fiscal cliff, there is still a risk that confidences will be damaged which is essential for the recovery. Overall, though, most markets are improving rather than declining and it looks good that recovery will survive the winter. It is possible that the fear of a potential fiscal cliff could sway consumer confidence and discourage home buyers, but we are optimistic that everything will be fine.

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Economic Improvement

Quest Loans is feeling pretty optimistic about the current status of the housing market. Sure, there is always room for improvement, but most things are pointing in the right direction. For instance, the price of single-family homes has risen once again in July for the sixth straight month. It was not a huge increase, but more economists would agree that the market is definitely heading down the road of recovery. As of August, home resales and new home construction has been improving as well. Because of all this good data, the stock market has even seen some gain. Quest Loans would like to help you take advantage of this progress. If you are looking for a great lending company, look no further! We would love to help you get started on your home loan today! 888-883-5252.

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Existing-Home Sales Prices Increased 3.4%

According to the National Association of Realtors, existing-home sales have increased in the month of April, and home prices are continuing to climb. These sales rose 3.4% compared to March throughout the country. This is a good indication that the housing market is finally recovering. It is not just the investors who are buying these homes anymore, we are seeing an increase in homes being sold to actual occupants again. This is helping home sales of all prices, causing the market to become more balanced. Housing inventory rose 9.5% at the end of April, totaling out at 2.54 million existing homes that are for sale. The national median price for an existing home is $177,400, which is up 10.1% from last April. It is expected that 2013 will bring further increase in sale prices.

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March Saw Increase in Home Sales

The National Association of Realtors (NAR) says that the housing market is definitely recovering. Pending home sales have increased in the month of March, putting them well above where they were a year ago. Since there is an overall national increase in sales, the inventory is slowly being lowered which helps to bring a balance to the housing market. This indicates that home prices will also be rising through 2012. In fact, first quarter sales closings were at higher levels this year than they have been in the past 5 years. According to the lastest contract signing activities, we should also see great data for the 2nd quarter.

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Outlook for the Housing Market in 2012

As of December 2011, unemployment rates fell to their lowest level in three years with the addition of 200,000 jobs. This means good news overall for the real estate market since the country's economy is beginning to improve. This recovery is essential for the housing market and it is expected to continue throughout 2012. As we reported earlier, the Fed has announced that interest rates will not be raised until 2014 in the hopes of continuing in this economy recovery. The interest rates are currently at historic lows and are expected to stay that way to ensure a slow but steady rise by the end of the year. Therefore, taking out a mortgage is a very affordable thing at this time.

Predictions for the 2012 housing market include these continued low interest rates as well as the stabilization of home prices. This should lead to an increase in home sales: roughly 12% of existing homes and 74% of new homes; and there will also be a rise in inventory mostly due to increased foreclosures throughout the country. Distressed properties will make up about half of all home sales. There will also be an improved short-sale process so we can further avoid foreclosures. Homeownership rates are expected to continue to fall. Foreign and domestic investors will be likely to buy 25% of homes. And there will be an increased reliance on real estate agents in 2012. We will continue to report on these matters to see if these predictions pan out over the next year.

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