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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Foreclosure Market Report

According to RealtyTrac's Midyear 2013 Foreclosure Market Report, there were a total of 801,359 properties across the U.S. that have foreclosure filings in the first half of 2013. That signifies a 19% decrease from the previous six months. It is also down by 23% from the first half of 2012.

While there are so many programs today geared toward helping Americans avoid foreclosure, the report shows that 0.61% of all housing units in the country has had at least one foreclosure filing between January and June 2013, which accounts for 1 in 164 homes.

“Halfway through 2013 it is becoming increasingly evident that while foreclosures are no longer a problem nationally they continue to be a thorn in the side of several state and local markets, particularly where a backlog of delayed distress has built up thanks to a lengthy foreclosure process,” said Daren Blomquist, vice president at RealtyTrac. “The increases in judicial foreclosure auctions demonstrate that these delayed foreclosure cases are now being moved more quickly through to foreclosure completion."

There were 127,790 properties with foreclosure filings in June. This is down by 14% from May and down 35% from June 2012 which is the lowest monthly level we've seen in six and a half years.

If you are facing foreclosure, contact us! We'd love to help you refinance your home. Perhaps all you need is a lower monthly mortgage payment. Or we can help you sell your home and get into a smaller, less-expensive place! There's always a way! 888-883-5252

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How Are The Mortgage Rates Doing?

Two weeks ago, the average fixed mortgage rates saw their highest levels since mid-2011. This has made homebuyers weary of making their move. However, there is some good news. Last week, Freddie Mac's Primary Mortgage Market Survey said that the 30-year rates have dropped back down to 4.29 percent (from 4.46 two weeks ago.)  We realize these aren't ideal considering last year they were at 3.62 percent.

Over the Fourth of July weekend,,the rates fell due to an ease of market concerns about the Federal Reserve's pullback in bond purchases.  It is important to remember that even though rates are higher now than they have been in the past year, these rates are still low by historical standards. Even in the 4th percentile, we should continue to see people benefiting from housing affordability and the housing market will continue to recover.

Despite the rates being a bit higher, pending home sales have gone up by 6.7% in May, which is the strongest pace we've seen in over six years.

If you are in the market for a house and have questions, please call us at 888-883-5252 or 877-828-8851. We'd love to help ease your concerns and get your application started!

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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.com's Rebound Report for Top 100 Markets

We all know that the overall housing market is recovering well, but which markets are doing the best?

Homes.com has released a "Rebound Report." It is a new housing study that details the recovery in the top 100 U.S. Markets. It provides a deeper analysis of data from their Local Market Index. It shows how far these markets have rebounded from its deepest decline in index value to its current status.

According to the report, nine of the top 100 markets have completely rebounded back to the peak price levels that they were experiencing before the housing crisis. Some of the markets even increased as much as 200 percent of the decline amount!

While every market was hurt during the recession, every one of those markets are now also seeing some kind of recovery. The report really highlights how individual areas are doing. Some are thriving while others are struggling to get back on their feet.

The top 3 thriving metro areas include:
San Antonio, TX  (Rebounded 219.16%)
Houston, TX (Rebounded 210.50%)
Austin, TX (Rebounded 207.11%)

Looks like it is a good year for Texas!

The bottom three metros are:
Providence, RI (Rebounded 5.25%)
New Haven, CT (Rebounded 6.27%)
Las Vegas, NV (Rebounded 9.01%)

Click here if you would like to view the full Homes.com Rebound Report.

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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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Making Home Affordable Program is now Extended Through 2015!

Good news to start off your week: the Obama Administration's Making Home Affordable program has now been extended through December 31, 2015!  This was just announced by the Department of the Treasury and the Department of Housing and Urban Development (HUD) in association with the Federal Housing Finance Agency (FHFA). The goal was to align the deadline with that of the Home Affordable Refinance Program (HARP) as well as the Streamlined Modification Initiative for those with loans with Fannie Mae and Freddie Mac.

The Obama Administration has been working hard to provide relief to families on the brink of foreclosure. The Making Home Affordable Program has been an integral part of the housing market recovery. This two year extension of the deadline should further aid those affected by the housing crisis.

“The housing market is gaining steam, but many homeowners are still struggling,” said Treasury Secretary Jacob J. Lew. “Helping responsible homeowners avoid foreclosure is part of our wide-ranging efforts to strengthen the middle class, and Making Home Affordable offers homeowners some of the deepest and most dependable assistance available to prevent foreclosure. Extending the program for two years will benefit many additional families while maintaining clear standards and accountability for an important part of the mortgage industry.”

Originally launched in March 2009, this program has been able to help nearly 1.3 million homeowners. Another part of the Making Home Affordable Program is the Home Affordable Modification Program (HAMP) which works much like a refinance. Homeowners are able to modify the terms of their current mortgage and reduce their monthly payment in the hopes of avoiding foreclosure. More than 1.1 million homeowners have taken advantage of HAMP. Because of these modifications, the median savings is $546 per month! Would you like to save 38% of your previous payment?

“The Making Home Affordable Program has provided help and hope to America’s homeowners," said HUD Secretary Shaun Donovan. "Families across the country have used its tools to reduce their principal, modify their mortgages, fight off foreclosure and stay in their homes - helping further stimulate our housing market recovery. And with this extension, we ensure that the program keeps supporting communities for years to come.”

In addition to saving money, there are also new standards set in motion for the mortgage servicing industry that protect homeowners. Better communication, more efficient timing, and superior assistance are now expected to be norm for all lenders.  With the recent crack down on mortgage fraud, qualifications for a loan are more strict and monitored, but this is good for the borrower.

Now that the deadline for this great program is extended, struggling borrowers will find it easier to pay their mortgage payments and the number of foreclosures should decrease over time. If you feel like you are unable to pay your mortgage, please learn more about these assistance programs! There is no need for anyone to lose their home!

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