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Pending Home Sales Point To Seller’s Market This Summer - 04/29/11 09:53 AM
The National Association of REALTORS® Pending Home Sales Index rose for the third straight month last month.
A “pending home sale” is a home under contract to sell, but not yet closed.
The Pending Home Sales Index rose 5 percent in March, posting its second-highest reading since April 2010. Not coincidentally, that month marked the expiration of last year’s federal home buyer tax credit.
Home buyers and sellers in Laguna Beach would do well to watch the Pending Home Sales Index each month. This is because — unlike most government and private data — the Pending Home Sales Index is a … (0 comments)
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A Simple Explanation Of The Federal Reserve Statement (April 27, 2011 Edition) - 04/27/11 01:21 PM
Earlier today, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.
The vote was 10-0 — the third straight meeting after which the FOMC vote was unanimous.
In its press release, the FOMC noted that since its March 2011 meeting, the economic recovery is proceeding “at a moderate pace” and that labor markets conditions are “improving gradually”. Household spending and business investment “continue[s] to expand” but the housing sector remains “depressed”.
Furthermore, the FOMC’s statement discussed the Federal Reserve’s dual mandate of (1) Managing inflation levels, and (2) Fostering maximum … (0 comments)
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Mortgage Rates — And Home Affordability — At The Whim Of The Federal Reserve - 04/26/11 09:39 AM
The Federal Open Market Committee starts a two-day meeting today, the third of its 8 scheduled meetings this year.
The FOMC is a special, 12-person committee within the Federal Reserve. It’s led by Fed Chairman Ben Bernanke and the group is responsible for voting on our nation’s monetary policy. This includes setting the Fed Funds Rate, the rate at which banks borrow money from each other overnight.
The general public tends to confuse the Fed Funds Rate for “mortgage rates” but, as shown in the chart at top, the two interest rates are very different. There is no direct correlation between … (0 comments)
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What’s Ahead For Mortgage Rates This Week : April 25, 2011 - 04/25/11 09:49 AM
ortgage markets improved slightly through last week’s holiday-shortened trading sessions. Better-than-expected housing data led mortgage rates higher Tuesday and Wednesday, but rates retreated Thursday morning in advance of Good Friday.
Markets were closed Thursday afternoon and Friday. They re-open this morning.
Conforming mortgage rates in California ended last week unchanged overall. It’s a strange outcome considering that Standard & Poor’s issued a downgrade on U.S. debt Monday.
In most instances, a debt downgrade would lead investors away from a particular group of securities — in this case, a group that includes mortgage-backed bonds. However, Wall Street reacted in the opposite.
When S&P issued … (0 comments)
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Demand Is Rising, Supplies Are Falling : Home Prices Set To Rise? - 04/21/11 10:45 AM
Home resales rose 4 percent last month, according to the March Existing Home Sales report. A total of 5.1 million homes were sold on an annualized, seasonally-adjusted basis.
The strong results re-establish the national, long-term trend toward rising home resales.
March marked the 6th month out of eight in which sales volume has increased and sales are up 32 percent from July 2010 lows.
Home supply has resumed its downward trajectory, too.
At the current pace of sales, the entire home resale inventory would be depleted in 8.4 months. This is 0.1 months faster as compared to February, and a full … (0 comments)
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Building Permits Rise In All 4 Regions - 04/20/11 11:19 AM
According to the Census Bureau, seasonally-adjusted, single-family Housing Starts rebounded in March, increasing 8 percent over February’s 2-year low.
We can’t put too much faith in the data, however, because for the second straight month, the government reports that the data’s margin of error — 15 percent – exceeds its actual measurement.
As written in the footnotes, there’s no “statistical evidence to conclude that the actual change [in Housing Starts] is different from zero.”
In other words, single-family Housing Starts may have dropped up to 7 percent last month, or may have increased by as much as 22 percent. We won’t know for certain until several … (0 comments)
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As Buyer Traffic Grows, Homebuilder Confidence Slips - 04/19/11 09:47 AM
Homebuilder confidence is falling — a good sign for buyers of newly-built homes in and around Corona Del Mar.
According to the National Association of Homebuilders, the Housing Market Index slipped one point to 16 in April. It’s the 5th time in 6 months that the index read 16 — a figure exactly in line with the 1-year average, but still considered “poor”. The Housing Market Index reports on a scale of 1-100.
Values of 50 or better representing “favorable conditions”. Values below 50 are considered “unfavorable”.
It’s been 5 years since the Housing Market Index read north of 50.
As an index, the … (0 comments)
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What’s Ahead For Mortgage Rates This Week : April 18, 2011 - 04/18/11 10:27 AM
Mortgage markets improved last week, buoyed by two days of out-sized gains. Mortgage rates bounced off their 8-week highs on much weaker-than-expected inflation data, and debt concerns abroad.
It’s an abrupt change in mortgage rate momentum.
Since the Federal Reserve’s March 2011 meeting, in which the Fed said rising energy costs are “putting upward pressure on inflation“, inflation chatter has figured big for Costa Mesa mortgage rates. With each tick higher in gas prices; in every conversation on U.S. debt load; as fruits and vegetables get more expensive at the supermarket, Wall Street’s fears of inflation have grown, and rate shoppers … (0 comments)
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Foreclosures Drop 35 Percent Year-Over-Year - 04/15/11 10:43 AM
Foreclosure activity is much slower this year than last.
According to foreclosure-tracking firm RealtyTrac, the number of national foreclosure filings plunged 35 percent in March 2011 as compared to March 2010, a statistic that reflects a more healthy housing market and more robust outlook for 2011.
A “Foreclosure filing” is defined as any of the following : a default notice, a scheduled auction, or a bank repossessions. Foreclosures filings were down in all but 8 states last month.
Activity remains concentrated, too. More than half of all bank repossessions can be tied to just a handful of states.
In March, 6 states accounted … (0 comments)
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Inflation Pressures Mounting; Mortgage Rates Rising - 04/14/11 12:41 PM
nflation pressures are mounting in the United States. And, Friday, the Consumer Price Index should prove it.
More commonly called “The Cost of Living Index”, CPI measures cost changes in the typical items bought by American households. Among others, CPI measures goods and service in apparel and recreation; medical care and education; and housing and transportation.
The March CPI data is expected to show an increase in the cost of livingfor the 17th straight month — a reading that would take CPI to an all-time high.
If you’ve filled your gas tank, sent a child to school, or shopped for groceries, you’re likely not surprised. … (1 comments)
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Retail Sales Report Should Spell Higher Mortgage Rates For Wednesday - 04/12/11 11:00 AM
Consumer spending is alive and well, it seems — unwelcome news for today’s home buyers.
Wednesday, the Census Bureau will release its March Retail Sales figures and the report is expected to show higher sales receipts for the 9th straight month. A strong reading like that should spell higher mortgage rates in Costa Mesa and nationwide.
The connection between Retail Sales and mortgage rates is fairly tight. Retail Sales are “consumer spending” and consumer spending accounts for the majority of the U.S. economy. The U.S. economy, of course, is a dominant force in setting the direction in which mortgage rates are headed.
… (0 comments)
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What’s Ahead For Mortgage Rates This Week : April 11, 2011 - 04/11/11 11:24 AM
Mortgage markets worsened last week as energy costs remained high, and jobs data looked strong. The safe haven buying that characterized the March mortgage market has subsided.
it’s driving mortgage rates higher across California.
Conforming and FHA mortgage rates rolled back 8 weeks worth of improvements last week and are now back to mid-February levels. The rise in rates is hurting refinance activity and home affordability.
The biggest story from last week figures to carry forward into this one — the Federal Reserve’s take on inflation.
In the minutes from its March meeting, the FOMC was shown to have discussed the possibility … (0 comments)
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Military Members : You Have 3 Weeks To Buy A Home, Claim Up To $8,000 In Tax Credits - 04/08/11 12:43 PM
If you’re an eligible federal employee or qualified military personnel, you have 3 weeks from this Saturday to use the federal home buyer tax credit, and to claim up to $8,000 in federal income tax credits.
According to the IRS, eligible persons include members and spouses of the uniformed services, members and spouses of the Foreign Service, and intelligence community employees who served at least 90 days of qualified, extended duty service outside of the United States between January 1, 2009 and April 30, 2010, and their spouses.
Eligible persons must be under contract for a new home on or … (0 comments)
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How Does Your Real Estate Tax Bill Compare To Other Parts Of The Country? - 04/07/11 12:03 PM
Mortgage rates may be a function of free markets, but real estate taxes are a function of government. And, depending on where you live, your annual real estate tax bill could be high, low, or practically non-existent.
Compiling data from the 2009 American Community Survey, the Tax Foundation, a non-partisan educational organization in Washington D.C., published property taxes paid by owner-occupied households, county-by-county.
The report shows huge disparity in annual property taxes by region, and by state.
As a percentage of home valuation, Southeast homeowners tend to pay the fewest property taxes overall, while Northeast homeowners tend to pay the most. But … (1 comments)
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March Fed Minutes Show Inflation Risks And Rate Hikes On The Horizon - 04/06/11 11:14 AM
The Federal Reserve released its March 15 meeting minutes Tuesday. The notes revealed a Federal Reserve split between optimism and caution for the U.S. economy.
The minutes’ official name is “Fed Minutes”. It’s a periodic publication, published 3 weeks after each meeting of the Federal Open Market Committee. The FOMC meets 8 times annually, so the Fed Minutes is published 8 times annually, too.
The Fed Minutes is similar to the meeting minutes released after a condo board gets together, or after a meeting of the Board of Directors at a large corporation. The minutes give a detailed account of the important … (0 comments)
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Plan To Sell Within 5 Years? Consider An Adjustable-Rate Mortgage. - 04/05/11 04:28 PM
Plan To Sell Within 5 Years? Consider An Adjustable-Rate Mortgage.
Which is better — a fixed-rate mortgage or an adjustable-rate mortgage? It’s a common question among home buyers and refinancing households in California.
The answer? It depends.
Fixed-rate mortgages give the certainty of a known, unchanging principal + interest payment for the life of the loan. This can help you with budget-setting and financial planning. Some homeowners say fixed-rate loans they offer “peace of mind”.
Adjustable-rate mortgages do not.
After a pre-determined, introductory number of years, the initial interest rate on the note — sometimes called a “teaser … (1 comments)
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Scott Springborn
Newport Beach,
CA
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