Pending Home Sales Index Just Short Of 100-Buy NOW - 07/29/12 05:46 AM

Home sales appear headed for a mid-summer breather.
One month after posting a multi-year high, the Pending Home Sales Index retreated to 99.3 in June -- a strong reading in its own right.
A "pending home sale" is a home that is under contract to sell, but not yet sold. June's value of 99.3 marks the 14th consecutive month during which the index showed year-to-year gains.
Last year in June, the index read 90.7.
For home buyers in Maple Grove and nationwide, the 14-month winning streak is one worth noting -- specifically because the Pending Home Sales Index is different from … (2 comments)

Home Values Rise 0.8% In May 2012 - 07/28/12 05:15 AM
The housing market's bottom is 9 months behind us. Home values continue to climb nationwide.
According to the Federal Home Finance Agency's Home Price Index, home values rose 0.8% in May on a monthly, seasonally-adjusted basis. May's reading marks the sixth time in seven months that home values rose.
Values are now higher by 4 percent since the market's October 2011 bottom.
As a Plymouth home buyer or seller, though, it's important to understand what the Home Price Index measures. Or, more specifically, what the Home Price Index doesn't measure.
Although widely-cited, the HPI remains widely-flawed, too. It should not be … (1 comments)

Existing home supply ticks higher to 6.6 months - 07/23/12 06:32 AM

Home resales slipped more than 5 percent last month, putting a damper recent housing market enthusiasm.
According to the National Association of REALTORS®, Existing Home Sales fell to 4.37 million units in June 2012 on a seasonally-adjusted, annualized basis. This is 250,000 fewer home sales per year as compared May's figures which NAR has revised 2 percentage points higher.
The pace at which homes are selling has slowed, too. As compared to May, the Existing Home Supply rose 0.2 months. At the current pace of sales nationwide, the national home supply would now be exhausted in 6.6 months.
A home supply of … (1 comments)

Foreclosure Starts Rise For 2nd Straight Month Including in Minnesota - 07/17/12 06:19 PM

The number of U.S. homes receiving foreclosure notices topped one million through the first six months of 2012, according to RealtyTrac.
There were 1.046 million foreclosure filings between January - June 2012, says the foreclosure-tracking firm in its Midyear 2012 Foreclosure Market Report. The tally represents a 2 percent increase from the immediate six months prior.
A "foreclosure filing" includes all of the following foreclosure-related actions : (1) Default notices, (2) Scheduled auctions, and (3) Bank repossessions. 
One notable fact from within the report is that, even as the number of repossessed homes dropped nationwide, the number of homeowners receiving a Notice of … (0 comments)

Fed Minutes Suggest Additional Fiscal Stimulus This Year - 07/13/12 05:01 AM
The Federal Reserve released the minutes from its June Federal Open Market Committee meeting, revealing a Fed divided on the future of the U.S. economy. Mortgage rates are higher after the release of the minutes.
The Fed Minutes is the detailed recap of an FOMC meeting. It is the companion piece to the more brief, more well-known post-meeting FOMC press release.
For a comparison, whereas the Fed's June 20, 2012 press release contained 5 paragraphs and 490 words, the same meeting's minutes contain 62 paragraphs and 7,508 words. The extra detail afforded by the extra words Wall Street gives insight into the nation's central … (0 comments)

Home Purchasing Power Jumps - 07/10/12 12:59 PM
With mortgage rates down to all-time lows, you can buy a lot more home for your money. Home affordability is at an all-time high.
According to last week's Freddie Mac mortgage rate survey, the average 30-year fixed rate mortgage has dropped to 3.62% nationwide. This is down from 4.08% in March, and down from 4.60% from one year ago.
Mortgage rates are "on sale".
Falling mortgage rates can make one of two changes to the way a Maple Grove home buyer looks at properties. They can either make a given home's monthly housing payment that much more affordable to a buyer, … (0 comments)

30-Year Fixed Rate Mortgage Rates Fall To 3.62% Nationwide On Average - 07/07/12 05:25 AM
30-year fixed rate mortgage rates made new, all-time lows once again this week.
According to Freddie Mac's weekly mortgage rate survey of more than 125 banks nationwide, the average 30-year fixed rate mortgage rate fell 4 basis point to 3.62% nationwide.
The rate is available to conforming, prime borrowers. A "prime" mortgage applicant typically has excellent credit, verifiable income, and at least 25% equity in their home.
And, it's not just the 30-year fixed rate mortgage that made new lows in this holiday-shortened week, either. The 15-year fixed rate mortgage did, too, falling 5 basis points to 2.89%, on average.
Today's low rates … (2 comments)

Pending Home Sales Index Hits A 2-Year High - 07/04/12 04:59 AM
Homes are going under contract at a faster pace.
In May, for the second time in 3 months, the Pending Home Sales Index crossed the 100 barrier, stretching to 101.1. A “pending home sale” is a home under contract to sell, but not yet sold.
Statistically, the Pending Home Sales Index reading is significant for two reasons.
First, the index’s reading is at its highest since April 2010. From this, we infer that today’s pace of home buying in Minnesota and nationwide is approaching the “stimulated” levels of two years ago — but without the federal stimulus.
This is a positive signal for … (0 comments)