Mortgage Rates Now Sit at Lowest Level in 2017

30-year mortgage rate falls below 4%

low rates

As forecasted, mortgage rates continued to drop in the latest Freddie Mac Primary Mortgage Market Survey. And not only did rates drop, but they now sit at their lowest mark of the year.

Last week, mortgage rates fell slightly, but remained above the 4% mark. Freddie Mac Chief Economist Sean Becketti said at the time, “The 30-year mortgage rate fell three basis points this week to 4.02%. However, this week’s survey closed prior to Wednesday’s flight to quality.”

The latest survey results showed that the 30-year fixed-rate mortgage averaged 3.95% for the week ending May 25, 2017. This is down from last week when it averaged 4.02%, but up from 3.64% a year ago.

The 15-year FRM averaged 3.19%, down from last week when it averaged 3.27%. In 2016, the 15-year FRM averaged 2.89%.

In addition, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.07% this week, falling from last week’s 3.13%. A year ago at this time, the 5-year ARM averaged 2.87%.

“As we predicted, the 30-year mortgage rate fell seven basis points this week in a delayed reaction to last week’s sharp drop in Treasury yields. The survey rate stands at 3.95% today, a new low for the year,” said Becketti about this week’s rates.

The chart below shows how mortgage rates have performed over the last year.

Click to enlarge

rates

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9 Unexpected Ways Paint Can Reboot your Curb Appeal

9 Unexpected Ways Paint Can Reboot Your Curb Appeal https://www.houselogic.com/remodel/painting-lighting/how-to-increase-curb-appeal/#Paint #CurbAppeal

http://www.houselogic.com, May 29th, 2017

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Existing Home are Flying off the Market, but Sales Fall Back from Record Pace

Days on market falls to shortest timeframe since 2011

Spring house

Existing homes stayed on the market for less time in April than in any month since 2011, but tight inventory drove a decline in existing home sales over March’s record pace, a new report from the National Association of Realtors shows.

Total existing-home sales, which NAR categorizes as completed transactions that include single-family homes, townhomes, condominiums and co-ops, fell 2.3% to a seasonally adjusted annual rate of 5.57 million in April from a downwardly revised 5.7 million in March.

March’s pre-revision seasonally adjusted rate of 5.71 million made March the best month for existing home sales since February.

The newest report from NAR, covering April’s sales, shows that despite the decline in April, sales are still 1.6% above a year ago and at the fourth highest pace over the past year.

According to Lawrence Yun, NAR’s chief economist, demand from buyers is still far exceeding the available supply, leading to both the decline in existing home sales and the fact that homes are flying off the market.

NAR’s report shows that homes typically stayed on the market in April for a new record low of 29 days, down from 34 days in March and 39 days in April 2016.

April marks the first time since NAR began tracking time on market in 2011 that the time on market has been less than 30 days.

The previous shortest time on market before April’s 29 days was May 2016, when homes stayed on the market for an average of 32 days.

NAR’s report also showed that 52% of homes sold in April were on the market for less than a month, which is a new high.

According to NAR’s report, there were several markets that are far hotter than the national average, including San Jose-Sunnyvale-Santa Clara, Calif., where homes sold in an average of 23 days; San Francisco-Oakland-Hayward, Calif., where homes sold in an average of 25 days; Denver-Aurora-Lakewood, Colo., where homes sold in an average of 27 days; and Seattle-Tacoma-Bellevue, Wash., where homes sold in an average of 28 days.

“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2%, and new and existing inventory is not keeping up with the fast pace homes are coming off the market,” Yun said. “Demand is easily outstripping supply in most of the country and it’s stymieing many prospective buyers from finding a home to purchase.”

According to Yun, every major region besides the Midwest saw a decline in existing sales in the month of April.

NAR’s report also showed that the median existing-home price for all housing types in April was $244,800, up 6% percent from April 2016 ($230,900).

April’s price increase marks the 62nd straight month of year-over-year gains, NAR’s report showed.

Additionally, NAR’s report showed that total housing inventory at the end of April climbed 7.2% to 1.93 million existing homes available for sale, but that figure is still 9% lower than one year ago (2.12 million).

Total housing inventory has also fallen year-over-year for 23 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.6 months a year ago, NAR’s report showed.

“Realtors continue to voice the frustration their clients are experiencing because of the insufficient number of homes for sale,” Yun said. “Homes in the lower- and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher.”

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Inventory Challenges Continue!

KCM Crew. May 28th, 2017

Inventory Challenges Continue! [INFOGRAPHIC] | MyKCMSome Highlights:

  • After a surge in March, existing home sales and new home sales slowed due to a drop in inventory available for sale in the start-up and trade-up categories.
  • Median existing home prices surged for the 62nd straight month, up 6.0% over last year to $244,800.
  • New home prices slowed as builders have started to turn their focus toward single family, smaller homes.

 

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Rising Demand, Shrinking Inventory Fuel Median Price Growth

DSNews.com. May 28th, 2017

New report from the New York State Association of Realtors, or NYSAR, shows that housing trends in the Empire State are a microcosm of the U.S. market. NYSAR’s April housing market numbers show strong buyer demand and an ongoing decline in the number of homes for sale.

This dynamic was fueled a 7.8 percent increase in the April statewide median sales price (to $235,000) and an 11.2 percent drop in new listings compared to a year ago, according to the report. In real numbers, that’s a drop from just over 22,000 new listings to just above 19,600.

There were 18 percent fewer homes for sale in New York compared to last April (about 65,000 compared to about 80,000 in 2016). Inventory constraints also led to a 5 percent decline in home sales for the month compared to last year.

“As anticipated, the continued decline in the number of homes currently on the market has slowed the sales pace as many buyers are challenged to find an available home that meets their needs,” said Duncan MacKenzie, CEO of NYSAR. “Realtors are reporting that buyer demand remains strong and newly listed homes are selling quickly. Basic economics are at play with high demand and low inventory driving selling prices higher.”

In other words, New York State in April was as much a sellers market as anywhere. MacKenzie said that as the market heads into what looks to be typically busy summer months, the housing market “holds great opportunity for sellers. Without the return of sellers to the market, home sales will likely be constrained during the summer of 2017.”

Like the national market, New York’s April market had its pockets of hot and cold activity. While statewide new listings declined year-over-year by 11 percent (as did affordability), new listings dropped by more than 30 percent in Greene, Cortland, and Clinton counties. On the other hand, new listings rose in seven counties. Lewis County saw an 18.4 percent rise in new listings last month; Kings and Tompkins counties each saw a 17 percent rise.

The April sales total of 8,495 represents a decrease of 5 percent from the April 2016 total of 8,944‒‒which actually was a record.

April’s pending sales declined 4 percent from a year ago to reach 12,760. Meanwhile, the months supply of homes for sale dropped 21.6 percent at the end of April to 5.8 months supply, just shy of what is considered a normal, healthy supply. Inventory was at 7.4 months at the end of April 2016.

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Who’s to Blame for the Housing Shortage?

DSNews.com, May 24th, 2017

The most pressing problem facing the housing industry today is the tight inventory, and according to Realtor.com, millennials may be partly to blame.

As many young potential buyers move into cities and away from the suburbs, housing construction has been notoriously weak. Cities like New York, San Francisco, Boston, and Los Angeles have seen their suburban areas shrink.

According to Jed Kolko, Chief Economist at job-search site Indeed and senior fellow at the Terner Center for Housing Innovation at the University of California, the amount of young people living in the Washington D.C. urban area increased by 8.6 percent between 2000 and 2014 as the preferences of young people change.

The difference is younger generations are choosing better location over better homes, according to BuildZoom Chief Economist Issi Romem.

Builders are producing less housing overall as they shift from cheaper suburban areas to “trendy” urban markets. Builders have had to focus on high-end city housing for high earners, leaving young people just starting out behind.

Realtor.com calls this “one of the most vexing aspects of the housing recovery.” Prices for new homes are steadily rising even though there are fewer being built. But as millennials get older, starter home demand begins to bounce back. BuildZoom analysis shows that in metro areas where land is less expensive and there are fewer land-use restrictions, starter homes are on the rise.

In Austin, Texas, new residential sales over 20 miles away from city center rose 12 percent between 2000 and 2015. Romem states that this shows how looser land-use rules lead to increased home sales, making it economical for builder to make starter homes.

“Do you care about preserving things the way they are, so that only wealthy people can continue buying in, or do you want to [encourage more density], so that housing is more affordable for everyone?” he asked

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5 Reasons to Hire a Real Estate Professional When Buying or Selling!

KCM Crew, May 23rd, 2017

5 Reasons to Hire a Real Estate Professional When Buying or Selling! | MyKCMWhether you are buying or selling a home it can be quite an adventurous journey, which is why you need an experienced real estate professional to guide you on the path to your ultimate goal. In this world of instant gratification and internet searches, many sellers think that they can For Sale by Owner or FSBO.

The 5 reasons you NEED a real estate professional in your corner haven’t changed, but have rather been strengthened by the projections of higher mortgage interest rates & home prices as the market continues to pick up steam.

1. What do you do with all this paperwork?Each state has different regulations regarding the contracts required for a successful sale, and these regulations are constantly changing. A true real estate professional is an expert in his or her market and can guide you through the stacks of paperwork necessary to make your dream a reality.

2. Ok, so you found your dream house, now what?There are over 180 possible steps that need to take place during every successful real estate transaction. Don’t you want someone who has been there before, someone who knows what these actions are, to make sure that you achieve your dream?

3. Are you a good negotiator?So maybe you’re not convinced that you need an agent to sell your home. After looking at the list of parties that you will need to be prepared to negotiate with, you’ll soon realize the value in selecting a real estate professional. From the buyer (who wants the best deal possible), to the home inspection companies, to the appraiser, there are at least 11 different people who you will need to be knowledgeable of, and answer to, during the process.

4. What is the home you’re buying/selling really worth?It is important for your home to be priced correctly from the start to attract the right buyers and shorten the amount of time that it’s on the market. You need someone who is not emotionally connected to your home to give you the truth as to your home’s value. According to the National Association of REALTORS, “the typical FSBO home sold for $185,000 compared to $245,000 among agent-assisted home sales.”

Get the most out of your transaction by hiring a professional.

5. Do you know what’s really going on in the market?There is so much information out there on the news and the internet about home sales, prices, and mortgage rates; how do you know what’s going on specifically in your area? Who do you turn to in order to competitively, and correctly, price your home at the beginning of the selling process? How do you know what to offer on your dream home without paying too much, or offending the seller with a lowball offer?

Dave Ramsey, the financial guru, advises:

“When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman.”

Hiring an agent who has his or her finger on the pulse of the market will make your buying or selling experience an educated one. You need someone who is going to tell you the truth, not just what they think you want to hear.

Bottom LineYou wouldn’t replace the engine in your car without a trusted mechanic. Why would you make one of the most important financial decisions of your life without hiring a real estate professional?

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