Mortgage Applications Fall, Refi Activity Up

Mortgage applications fell 2.8 percent last week on a seasonally adjusted basis to 654.2, according to the Mortgage Bankers Association weekly mortgage applications survey.

On an unadjusted basis, the index decreased 3.3 percent compared with the previous week, but was up 15.4 percent compared with the same week a year ago.The refinance share of mortgage activity increased to 46.4 percent of total applications from 43.5 percent the previous week.

Mortgage rates rose for fixed-rate products and dropped slightly for ARMS:

• 30-year fixed-rate mortgages increased to 6.38 percent from 6.29 percent;
  
• 5-year fixed-rate mortgages increased to 6.06 from 5.99 percent;
  
• One-year ARMs decreased to 6.09 from 6.39 percent.

While these numbers look like more bad news, Doug Duncan, chief economist for the association, says they don’t accurately reflect the total housing story, and he offers these statistics to put the situation in perspective.

Duncan says the foreclosure problem is predominantly based in seven states. In Michigan, Ohio and Indiana homes are in foreclosure because of job losses. Since 2001, Michigan alone has lost 300,000 jobs.

The other four hard hit states are California, Florida, Arizona and Nevada where there has been significant overbuilding. About 25 percent of the foreclosures in these states are on properties held by investors.

In 43 states, foreclosures have fallen in 2007 from 2006. Only 9 percent of all mortgages are subprime and 75 percent of all subprime mortgages are performing. In all, 98 percent of all mortgages in the U.S. are performing and 35 percent of the homes in the country don’t have a mortgage at all.

Source: Mortgage Bankers Association (09/26/07)/Realtor magazin

Movie-star mecca is tops in home prices

Coldwell Banker index ranks most expensive, most affordable U.S. markets

Beverly Hills, Calif., topped the list as the most expensive real estate market in the country while Killeen, Texas, ranked as the most affordable among 317 U.S. markets, according to Coldwell Banker Real Estate LLC's latest Home Price Comparison Index, released Wednesday.

Beverly Hills also ranked as the most expensive market in the 2006 index report, while Minot, N.D., last year ranked as the most affordable market.

The index compares similarly sized homes in different markets and is based on the benchmark of a 2,200-square-foot, four-bedroom, 2.5-bath single-family home with a family room or equivalent and a two-car garage in neighborhoods or ZIP codes within markets that are typical for corporate middle-management transferees.

A home matching the index criteria in Beverly Hills would cost $2.21 million, while a home with similar characteristics would cost $136,725 in Killeen, Coldwell Banker reported, based on the average sales price of sold listings through July 2007 or a comparative market analysis of homes that were previously evaluated for the 2006 index.

The cumulative average sales price of the homes surveyed in the 317 U.S. markets, which includes one market in Puerto Rico, is $422,343, according to the latest index, compared with a U.S. median home price for all existing-homes of $218,200, based on National Association of Realtors data.

The average sales price of the defined subject home is slightly lower than the $423,950 average sales price of homes in the 2006 index. And 139 markets saw a decline in value among index subject homes from 2006 to 2007, while 148 experienced a price increase.

Six of the nation's 10 most affordable communities ranked in the index are either in the same market area or in close proximity to major U.S. military posts, according to the index report.
Dublin, Ireland is the most expensive international market included in the index, with subject homes selling for an average $2.1 million in U.S. dollars. Next on the list is Milan, Italy, at $1.9 million, followed by Rome and Paris at $1.7 million (all in U.S. dollars). Bogotá, Colombia, ranks as the most affordable international market, at $140,100, followed by Egypt's Sharm El Sheikh at $144,896; Charlottetown, Canada, at $157,630; and Granada, Nicaragua, at $158,375. Warsaw, Poland, at $417,760, is closest to the $422,343 U.S. average of all of the foreign markets covered in the latest index.

Jim Gillespie, president and CEO for Coldwell Banker Real Estate LLC, noted that the National Association of Realtors reported that 32 percent of all Realtors in the U.S. had at least one international client during the past year, and the company's index "serves as a guide for these world travelers and interested consumers to get a sense of how much a typical middle-management home may cost in various markets around the globe."

Eight of the top 10 most expensive markets recorded in the index are in California. Greenwich,
Conn., moved from the eighth most expensive market last year to second this year, with an average subject home price of $2 million.

Sixteen U.S. markets exceeded an average $1 million price for the subject home, and Manhattan was excluded because of the lack of comparable single-family homes.

The Northeast Corridor -- from Maine to Washington, D.C. -- and California account for 35 of the 40 most expensive U.S. markets in the Coldwell Banker index, while two locations from those regions appear in the 40 most affordable markets.

Vancouver, British Columbia, ranked as the most expensive Canadian market with an average subject home price of $1.33 million. That compares with Charlottetown on Prince Edward Island in Canada, which was that nation's most affordable market with an average subject home price of $157,630.


The Coldwell Banker System has about 3,800 residential real estate offices and about 120,000 sales associates in 41 countries and territories.

Source: Coldwell Banker 2007 Home Price Comparison Index/ Published Inman News, September 27, 2007

Housing, Job Opportunities Favor Texas

NAR expects the national median price of homes to drop to $218,200 in 2007. In Dallas, where it's warm, wide-open, and there are lots of jobs, the median home price is going up. One of the few bright spots of the retreating housing market, Dallas is beating national numbers in jobs, culture, and inflation in terms of housing appreciation. And with a median-priced home only two-thirds the price of the national median at $156,000, the city is a screaming, stomping bargain.

There's just one little problem. Dallas is moving into a financial press-led housing recession, too. Why blame the financial press? Because buyers aren't paying attention to the positives. Fear has them sitting on the sidelines just when they could score the housing touchdown of their lives.

Dallas sat out the housing boom of 2001-2006. In fact, Dallas homes appreciated below the national median for over 16 years, until this year. Recovering from the oil embargo of the 70s, the Savings and Loan crisis of the 80s and technology meltdown of the aughts, Dallas never got up off its knees. Exacerbating the problem was a squabbling, racist city council and school system. People with means high-tailed it for the suburbs, and Dallas deteriorated.

But the smell of money is in the air. Forbes magazine recently ranked Dallas-Fort Worth among the Best Cities to Live as number one in cost of living; number five for job growth, number nine both in the best cities for singles and in the culture categories.

Other Texas cities fared well, too. Austin came in at number 12 on the Best Cities list, and Houston wasn't far behind at number 14. Houston (Harris County) added 79,400 jobs between September 2005 and 2006, the nation's largest increase in employment among the nation's 325 largest counties, according to the U.S. Census.

Opportunity has attracted among the youngest and most educated workforce in the southwest in hubs like Dallas, Austin, and Houston, but Texas is a close second to Florida in luring older workers and retirees, according to a report by Thomas, Warren + Associates for the National Active Retirement Association in Charlotte, N.C.

In 2005, Texas gained 27,000 new residents over the age of 65, bringing a total of $732 million in added income to the state. While that's less than half of Florida's gain at 68,000 new older population and $1.9 billion, what's significant is a large number of workers and retirees are not "following a job" to the state, but choosing to live there on the Texas' merits.

One reason Texas is attracting young and old is the outlook for jobs. A Harris Interactive monthly survey in July found that more Texas workers are feeling confident about the job market and the future of their current employer. About 47 percent felt that the economy is coming along nicely, and a whopping 82 percent felt they were unlikely to lose their jobs.
Yet housing is struggling in Dallas. According to the North Texas Real Estate Information System which collects data from 18 MLS partners across 29 counties, the Dallas-Fort Worth hub sold 10 percent fewer homes (8,480) in August than last year. Homes are staying on the market three percent longer at 69 days than last August.

Yet median prices -- up four percent to $156,000 compared to $150,000 last year in Dallas-Fort Worth -- are bucking the trend, despite rising foreclosures in Fort Worth and mid-cities Arlington, up five percent for the first half of 2007, says RealtyTrac. Elsewhere in Texas, foreclosure filings were down more than 13 percent from mid-year 2006.

"The decline in filings and properties with filings reflects the continued steady increase in Texas residential property values, the continued stable economy and employment and the fact that Texas did not rely on extreme, exotic loan terms to the same extent as other, higher-priced markets," said Dr. Jim Gaines, research economist with the Real Estate Center at Texas A&M University in a newsletter.

Gaines says a great deal of the national foreclosure market is concentrated in a handful of states, primarily the previously hot markets in California, Florida, Nevada and Arizona, as well as as Michigan, Ohio and Indiana, where the pullback in the automotive industry has resulted in job losses.

Texas is looking more and more like the land of opportunity.

Published: September 13, 2007 by Blanche Evans / Realty Times

Money Magazine Names Best Places to Live

Middleton, Wis., is Money magazine’s top 2007 Best Place to Live.

The magazine, whose annual selection of attractive locales has the power to turn a sleepy borough into a blossoming hot spot, says that this year it focused on small cities, between 7,500 and 50,000 in population. It chose areas that offered the best combinations of economic opportunity, good schools, safe streets, things to do, and a real sense of community.It also added a ranking for ethnic and racial diversity, and it paid special attention to home prices and property taxes. That meant that some expensive locales that had done well in the past slid in the rankings.Visitors to the "Best Places to Live" section of CNNMoney.com will be able to see the latest homes for sale, recent home sales, and "Million Dollar Homes" for all of the cities highlighted in the annual feature. Users can click on city maps powered by Trulia.com to view data for each home, including location, price, photos, bedrooms/baths, and square footage.

Here’s the top-10 list:

1. Middleton, Wis.
2. Hanover, N.H.
3. Louisville, Colo.
4. Lake Mary, Fla.
5. Claremont, Calif.
6. Papillion, Neb.
7. Milton, Mass.
8. Chaska, Minn.
9. Nether Providence, Pa.
10. Suwanee, Ga.

Source: CNNMoney, Kate Ashford, Asa Fitch, Stephen Gandel, Josh Hyatt, Sarah Max, Jennifer Merritt (07/16/07)

Mortgage Rates Inch Up Slightly

Freddie Mac reports a small jump in the 30-year fixed mortgage rate to 6.34 percent this week from 6.31 percent a week ago, which is still less than the year-earlier rate of 6.4 percent.

Meanwhile, the one-year adjustable mortgage rate dropped slightly to 5.65 percent from 5.66 percent over the same period.

Freddie Mac chief economist Frank Nothaft expects the Federal Reserve's decision to cut the federal-funds rate to 4.75 percent to "dissipate some of the volatility in short-term interest rates."

Source: The Wall Street Journal (09/21/07)

10 Tips for Buying a Fixer-Upper

Buying a basically sound house and updating the cosmetics is a profitable thing to do in almost any market. But be careful what you buy or it may end up costing you later on.Here are 10 things to consider when selecting a fixer-upper:

1. Purchase homes that are at least 30 percent below the market value of comparable nearby homes.

2. Choose a location with a low crime rate, good schools, and quiet streets. There isn’t anything you can do to cure a poor location.

3. Choose a house with three or four bedrooms. Smaller homes are unlikely to have enough buyer appeal.

4. Avoid homes that need major unprofitable repairs, include wiring, major plumbing, foundation repairs, major kitchen and bathroom renovation, room additions, and/or a new room. Spending money on these basics doesn’t add value. Buyers expect them.

5. Find a home that needs profitable cosmetic improvements like fresh paint inside and out, new light fixtures, new carpets and flooring, and fresh landscaping.

6. Look for affordable, low down-payment financing, such as taking over an existing mortgage, lease with option to buy, seller carry-back financing, or a combination.

7. Avoid obtaining new bank financing until the fix-up work is completed and the home’s market value has increased.

8. Don’t buy a fixer-upper that is more than 60 minutes from your current residence because it is important to visit everyday while the renovation work is being done.

9. Make sure that the seller or tenants will vacate immediately upon transfer of title.

10. Look for sellers who are motivated to sell and who want to make the sale happen

Source: Inman News, Robert J Bruss /09/01/07

Foreclosures Climb to Record Highs in August

The number of foreclosures filed in the United States in August more than doubled compared to August 2006, and rose 36 percent from July.A total of 243,947 foreclosure filings were reported in August, up 115 percent from 113,300 in the same month a year ago, reported Irvine, Calif.-based RealtyTrac Inc. on Tuesday.The August total was the largest since the company began tracking monthly filings two years ago, representing one filing for every 510 households nationwide.Nevada, California, and Florida had the highest foreclosure rates in the country last month, the firm said. Georgia, Ohio, Michigan, Arizona, Colorado, Texas, and Indiana rounded out the 10 states with the highest foreclosure rates.

Source: The associate preess, Alex Veiga (09/18/07/

Market trend

Below you will find links for overall market activity for NTREIS, as well as activity by county. This format is designed to provide you with important market information in an easy to use format without your having to go look for it. Of course, if you need more detailed information about particular, ZIP, City just ask me and will provide it to you.

Click on the links below for Market Trend data for your county, or all areas served by NTREIS, for the month of August, 2007.

All areas: https://www.cbdfw.net/public/markettrend/all_feb.html

Collin County: https://www.cbdfw.net/public/markettrend/collin_feb.html

Dallas County : https://www.cbdfw.net/public/markettrend/dallas_feb.html

Denton County : https://www.cbdfw.net/public/markettrend/denton_feb.html

Ellis County : https://www.cbdfw.net/public/markettrend/ellis_feb.html

Rockwall Countty:

https://www.cbdfw.net/public/markettrend/rockwall_feb.html

Tarrant County: https://www.cbdfw.net/public/markettrend/tarrant_feb.html

Protect yourself

There is a current practice being employed by several of the major credit bureaus.

In short, these credit bureaus are selling lists of consumers who have had inquiries from mortgage companies. However, I am providing a link below to a web site that you can use to “opt out” and keep the credit companies from selling your information and to protect you from the imposition of unsolicited phone calls, and/or mail solicitations.
Please review the below information along with the link that we are providing which will help you protect yourself from credit bureaus who wish to sell your personal information.

. Several major credit bureaus are offering products that provide customer information in regards to consumers who have applied for a recent mortgage to other mortgage companies. This information is being purchased by lenders who wish to aggressively solicit you with the knowledge that you have recently inquired about a mortgage.

. This practice can impact customers regardless of which lender they choose for their mortgage financing.

. The only preventive action preventing these calls is to opt-out of such offers. We are providing you with the following link to a website that you can use to “opt out” and keep credit bureaus from selling your name and details of your recent credit inquiries - www.optoutprescreen.com. By utilizing this link to Opt Out, you are protecting yourself for 5 years - ensuring that you and your personal information are protected for any future credit inquiries you may have well into the future.

. The Credit Bureaus maintain that their marketing of overnight mortgage inquiry leads violates no federal or state rules, and is merely a speed-up version of their routine sales of lists for other pre-approved offers of credit.

. CB Home Loans does not sell consumer information and have strict consumer privacy policies.

100% financing is still possible

If you have over 740 points credit score you will be able to be financed %100. You will be qualified for a second loan with over 660 points or %10 down payment. Your score is between 600 - 660 points, you are still in the prime flow but need to put some money down.

Almost the same deal is with the investment properties but all of the lenders require %5 down payment. The interest rate depends on how much cash will be put on the table and fluctuates between 0.25 - 1 point over the regular conventional loan. Lenders do not consider second home over 50 mils away from your homestead as an investment property and the interest rate will be just a little higher than the regular one.

I am providing a link where you would be able to obtain more detailed information or get pre-approved for a loan:

http://ritalewis.coldwellbankerhomeloans.com/

Mortgage Problems Dampen Home Sales

Mortgage Problems Dampen Home SalesTighter credit for home mortgages will measurably soften home sales in the short term and postpone an expected recovery for existing-home sales until 2008, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

Lawrence Yun, NAR senior economist, says unusual disruptions in the mortgage market are dampening the outlook for home sales, notably for August and September. “There’s been an unusual hit to home sales, starting in March when subprime problems emerged and more recently when problems spread to jumbo loans, with many potential buyers on the sidelines,” Yun says. “However, the jumbo loan market is now beginning to settle, and FHA-insured loans are helping to fill the subprime vacuum. The volume of existing-home sales this year will be better than 2002, which was the second year of the housing boom.”

Housing Outlook

Existing-home sales are projected at 5.92 million this year and then expected to rise to 6.27 million in 2008, compared with 6.48 million in 2006. New-home sales should total 801,000 in 2007 and 741,000 next year, below the 1.05 million in 2006.

“A sharp production pullback by homebuilders deep into 2008 is a healthy trend that will help trim down housing inventory,” Yun says. Housing starts, including multifamily units, are expected to total 1.37 million this year and 1.26 million in 2008, compared with 1.8 million in 2006.

“The mortgage markets will calm further in the months ahead, but it’s important to underscore the fact that conventional loans — the vast majority of available financing — are available to creditworthy borrowers,” Yun says. “Patient buyers in most areas who do their homework will recognize that housing remains a good long-term investment.”

Existing-home prices are likely to slip 1.7 percent to a median of $218,200 this year before rising 2.2 percent in 2008 to $223,000. The median new-home price is estimated to drop 2.2 percent to $241,100 in 2007, and then increase 1.7 percent next year to $245,100.

Here are some other economic factors that will likely influence the housing market:

The 30-year fixed-rate mortgage is projected to average 6.4 percent for the balance of the year and then edge up to the 6.5 percent range in 2008. “We expect the Fed to cut rates two times before the end of the year, which will lower interest rates for prime borrowers and FHA-insured loans,” Yun says. “FHA modernization could buffer the fallout of subprime loans, which would raise our sales forecast in the future.”


Growth in the U.S. gross domestic product is forecast at 2 percent in 2007, below the 2.9 percent growth rate last year; GDP will probably grow 2.7 percent in 2008.


The unemployment rate should average 4.6 percent for 2007, unchanged from last year. Inflation, as measured by the Consumer Price Index, is estimated to be 2.8 percent in 2007, compared with 3.2 percent last year. Inflation-adjusted disposable personal income is likely to increase 3.6 percent this year, up from 3.1 percent in 2006.

Published by Realtor Magazin Online on 09/14/2007