Beginning with new loan applications taken January 1st, there will be a new Good Faith Estimate form that all mortgage lenders will now be required to use. And it’s not just a new form that’s being released…but a whole new set of regulations that accompany this new form.
The Government will now regulate when a Good Faith Estimate can be provided to a consumer. A lender must have ALL of the following 6 pieces of information before issuing a Good Faith Estimate: borrower’s name, income, social security number, estimated property value, loan amount, & property address. In addition, some of the closing cost estimates provided on the GFE are now binding figures…meaning they cannot change by more than 10% from the original quote.
Since the information contained in the new GFE is drastically different from what consumers are used to seeing, the new form will take on a different role than it has traditionally served. Per the new law, the GFE no longer provides the consumer with their total monthly payment or total cash to close; rather it is intended to be more of an accurate & binding disclosure of closing costs.
At LoanCentral, we have created new worksheets to ensure the consumer is aware of their total monthly payment and total cash to close. This is important information borrowers need at their fingertips to assist them in making financial and buying decisions regarding their new home purchase.
~ Courtesy of Wendy Charles, LoanCentral LLC, 425.468.9321, WendyC@LoanCentral.com
Wednesday, December 30, 2009
National Real Estate News
Last week presented us with divergent housing news. First, November Existing Home Sales came in UP 7.4%, at an annual rate of 6.54 million. This was way ahead of estimates and a 44.1% sales jump over a year ago. We had increases in all regions of the country, all due to single-family homes.
The median price went up to $172,600, down 4.3% from a year ago, but a big improvement from January, when prices were off 17.5% from the prior year. The supply declined to 6.5 months, as inventories fell to 3.52 million, their lowest level since December 2006. In the past three months, Existing Home Sales are up 28.5%. One more sign of housing market recovery came in a report that prices for homes financed with conforming mortgages increased 0.6% in October.
Now for the news in the other direction. November New Home Sales fell 11.3%, to an annual rate of 355,000. But November was an unusual month, with uncertainty over the tax credit slowing things down. New Home Sales are still UP 7.9% from January and inventories dropped in November to 235,000. This is the lowest level since 1971 and a 58.9% decline from the mid-2006 inventory peak. So even at this slower sales pace, experts feel home building will have to increase over the next few months to meet the demand that's out there.
~ Courtesy of Chuck Chrobak, Golf Savings Bank, 425.330.9657, CChrobak@GolfSavingsBank.com
The median price went up to $172,600, down 4.3% from a year ago, but a big improvement from January, when prices were off 17.5% from the prior year. The supply declined to 6.5 months, as inventories fell to 3.52 million, their lowest level since December 2006. In the past three months, Existing Home Sales are up 28.5%. One more sign of housing market recovery came in a report that prices for homes financed with conforming mortgages increased 0.6% in October.
Now for the news in the other direction. November New Home Sales fell 11.3%, to an annual rate of 355,000. But November was an unusual month, with uncertainty over the tax credit slowing things down. New Home Sales are still UP 7.9% from January and inventories dropped in November to 235,000. This is the lowest level since 1971 and a 58.9% decline from the mid-2006 inventory peak. So even at this slower sales pace, experts feel home building will have to increase over the next few months to meet the demand that's out there.
~ Courtesy of Chuck Chrobak, Golf Savings Bank, 425.330.9657, CChrobak@GolfSavingsBank.com
Monday, December 21, 2009
National Real Estate News
We saw strong evidence last week that homebuilders are well on their way to recovery. Housing starts for November were UP 8.9%, to an annual rate of 574,000 units. Single-family starts were 35.0% higher than their January and February lows. The very volatile multi-units starts were UP 67.3% from the previous month's cyclical low. And get this -- starts were UP in every major region across the country!
Building permits are the future of homebuilding and guess what. They were UP 6.0% for November, to an annual rate of 584,000 units. This was above expectations and the fastest rise in a year. Single-family permits were UP 5.3%, registering their best pace since September 2008, when the economic mess began. Overall, homebuilding is UP in Q3 and many experts anticipate another gain in Q4 and even bigger increases in 2010-2011.
Mortgage rates continue at attractive levels, though they're creeping up. Fannie Mae's survey for the week ending last Thursday showed 30-year fixed-rate mortgages averaging 4.94% with an average 0.7 point (including the origination fee) for 80% loan-to-value (LTV) ratio loans. Last week the Fed confirmed they would end their purchase program for Mortgage Backed Securities on March 31, 2010. This is expected to cause mortgage rates to keep inching up. One more reason for buyers to act now!
~ Courtesy of Chuck Chrobak, Golf Savings Bank, 425.330.9657, CChrobak@GolfSavingsBank.com
Building permits are the future of homebuilding and guess what. They were UP 6.0% for November, to an annual rate of 584,000 units. This was above expectations and the fastest rise in a year. Single-family permits were UP 5.3%, registering their best pace since September 2008, when the economic mess began. Overall, homebuilding is UP in Q3 and many experts anticipate another gain in Q4 and even bigger increases in 2010-2011.
Mortgage rates continue at attractive levels, though they're creeping up. Fannie Mae's survey for the week ending last Thursday showed 30-year fixed-rate mortgages averaging 4.94% with an average 0.7 point (including the origination fee) for 80% loan-to-value (LTV) ratio loans. Last week the Fed confirmed they would end their purchase program for Mortgage Backed Securities on March 31, 2010. This is expected to cause mortgage rates to keep inching up. One more reason for buyers to act now!
~ Courtesy of Chuck Chrobak, Golf Savings Bank, 425.330.9657, CChrobak@GolfSavingsBank.com
Monday, December 14, 2009
National Real Estate News
Last week gave us more proof the country's housing market is heating up. According to Freddie Mac's quarterly national Conventional Home Price Index (CMHPI), home prices were UP 0.9% in Q3 for their second quarterly increase in a row! And the Q2 number was revised upward to 2.0%! These rises have taken back about two-fifths of the price declines seen in Q4 of 2008 and Q1 of this year.
Freddie Mac's chief economist said, "the home-price gains of the past two quarters reflect improving existing-home sales.... Sales volume was up 15% between the first and third quarters of this year." He also added: "The lowest average fixed-rate mortgage rates in a half-century, lower house prices, incentives to encourage first-time buyers, and loan modification efforts to stem foreclosures have worked together to support sales and reduce the inventory of unsold homes." The Standard & Poor's/Case-Shiller Home Price Index also reported a second consecutive quarterly price increase, theirs at 3.1%!
A separate study came in with inventory declines for the 17th straight month, showing listings down 2.42% for November versus October and down 27.64% from last year! A monthly Foreclosure Market Report showed an almost 8% decrease for November, down 15% from the July peak. We're still above last year's numbers, but finally trending in the right direction!
~ Courtesy of Chuck Chrobak, Golf Savings Bank, 425.330.9657, CChrobak@GolfSavingsBank.com
Freddie Mac's chief economist said, "the home-price gains of the past two quarters reflect improving existing-home sales.... Sales volume was up 15% between the first and third quarters of this year." He also added: "The lowest average fixed-rate mortgage rates in a half-century, lower house prices, incentives to encourage first-time buyers, and loan modification efforts to stem foreclosures have worked together to support sales and reduce the inventory of unsold homes." The Standard & Poor's/Case-Shiller Home Price Index also reported a second consecutive quarterly price increase, theirs at 3.1%!
A separate study came in with inventory declines for the 17th straight month, showing listings down 2.42% for November versus October and down 27.64% from last year! A monthly Foreclosure Market Report showed an almost 8% decrease for November, down 15% from the July peak. We're still above last year's numbers, but finally trending in the right direction!
~ Courtesy of Chuck Chrobak, Golf Savings Bank, 425.330.9657, CChrobak@GolfSavingsBank.com
Friday, December 11, 2009
Changes to the Homebuyer Tax Credits To Know About
The IRS has issued formal guidelines for those applying for the new $6,500 homebuyer tax credit and the extended version of the $8,000 first-time homebuyer tax credit. Legislation known as the Worker, Homeownership, and Business Assistance Act of 2009 implements these credits until April 30, 2010.
At the top of the list of changes is that all home purchases after November 6th must use the new version of IRS Form 5405 to claim the credit. This revised form is not yet available from the IRS. If your purchase closed after November 6th, wait to file for your credit until the new form is available or your request may not be processed. Other highlights of the changes:
• Income limit has been raised to $125,000 for single filers and $225,000 for joint returns
• Single filers with income up to $145,000 or joint filers with incomes up to $225,000 may be eligible for a partial tax credit
• $800,000 is the new maximum purchase price
• No one under 18 can claim the credit under any circumstances
• Anyone who is considered a dependent on another’s federal taxes is ineligible
For more information visit www.irs.gov, contact your tax professional, or call LoanCentral!
~ Courtesy of Wendy Charles, LoanCentral LLC, 425.468.9321, WendyC@LoanCentral.com
At the top of the list of changes is that all home purchases after November 6th must use the new version of IRS Form 5405 to claim the credit. This revised form is not yet available from the IRS. If your purchase closed after November 6th, wait to file for your credit until the new form is available or your request may not be processed. Other highlights of the changes:
• Income limit has been raised to $125,000 for single filers and $225,000 for joint returns
• Single filers with income up to $145,000 or joint filers with incomes up to $225,000 may be eligible for a partial tax credit
• $800,000 is the new maximum purchase price
• No one under 18 can claim the credit under any circumstances
• Anyone who is considered a dependent on another’s federal taxes is ineligible
For more information visit www.irs.gov, contact your tax professional, or call LoanCentral!
~ Courtesy of Wendy Charles, LoanCentral LLC, 425.468.9321, WendyC@LoanCentral.com
Wednesday, December 9, 2009
National Real Estate News
Positive economic reports on housing continue, with October Pending Home Sales UP 3.7%. This was the ninth month in a row Pending Home Sales rose and the index is now 31.8% over October last year. Since this tracks the level of contracts on existing homes, Existing Homes Sales should continue their impressive rise for the next couple of months.
The National Association of Realtors also predicted sales of previously owned homes would go UP 4.8% this year, reversing the downward sales trend of the previous two years. For 2010, the NAR projects existing home sales UP 10.8%, with a 3.6% hike in the median price. For new homes, the median price is expected to rise 3.9%. Of course, smart homebuyers will act now to avoid these anticipated price increases AND take advantage of the newly extended and expanded tax credits. High net worth individuals are already showing up--in a recent survey, 35% said they planned to increase their investments in real estate. 45% of them contend there are significant opportunities in residential markets, with many bargains to be had.
Anyone need further incentive? Freddie Mac reported mortgage rates down for the fifth straight week, now at record lows! The 30-year fixed-rate mortgage averaged 4.71%, with an average 0.7 point, for prime borrowers with 20% down payments. That's a new low for the survey which has been tracking rates since 1971.
~ Courtesy of Chuck Chrobak, 425.330.9657, CChrobak@GolfSavingsBank.com
The National Association of Realtors also predicted sales of previously owned homes would go UP 4.8% this year, reversing the downward sales trend of the previous two years. For 2010, the NAR projects existing home sales UP 10.8%, with a 3.6% hike in the median price. For new homes, the median price is expected to rise 3.9%. Of course, smart homebuyers will act now to avoid these anticipated price increases AND take advantage of the newly extended and expanded tax credits. High net worth individuals are already showing up--in a recent survey, 35% said they planned to increase their investments in real estate. 45% of them contend there are significant opportunities in residential markets, with many bargains to be had.
Anyone need further incentive? Freddie Mac reported mortgage rates down for the fifth straight week, now at record lows! The 30-year fixed-rate mortgage averaged 4.71%, with an average 0.7 point, for prime borrowers with 20% down payments. That's a new low for the survey which has been tracking rates since 1971.
~ Courtesy of Chuck Chrobak, 425.330.9657, CChrobak@GolfSavingsBank.com
Sunday, December 6, 2009
Eastside Statistics - November, 2009
Current Residential & Condo listings - 4,156 (down 14.85% from last year)
New listings taken this month - 854
Pending sales this month - 643 (up 50.59% from last year)
Percent of listings that sold this month - 15.47%
Median closed sales price - Nov. ‘08, $489,500
Median closed sales price - Nov. ‘09, $445,000
Rate of appreciation = -9.09%
~ Courtesy of NWMLS
New listings taken this month - 854
Pending sales this month - 643 (up 50.59% from last year)
Percent of listings that sold this month - 15.47%
Median closed sales price - Nov. ‘08, $489,500
Median closed sales price - Nov. ‘09, $445,000
Rate of appreciation = -9.09%
~ Courtesy of NWMLS
King County Statistics - November, 2009
Current Residential & Condo listings - 11,474 (down 15.50% from last year)
New listings taken this month - 2,571
Pending sales this month - 1,984 (up 37.40% from last year)
Percent of listings that sold this month - 17.29%
Median closed sales price - Nov. ‘08, $365,000
Median closed sales price - Nov. ‘09, $337,000
Rate of appreciation = -7.67%
~ Courtesy of NWMLS
New listings taken this month - 2,571
Pending sales this month - 1,984 (up 37.40% from last year)
Percent of listings that sold this month - 17.29%
Median closed sales price - Nov. ‘08, $365,000
Median closed sales price - Nov. ‘09, $337,000
Rate of appreciation = -7.67%
~ Courtesy of NWMLS
Snohomish County Statistics - November, 2009
Current Residential & Condo listings - 5,063 (down 21.05% from last year)
New listings taken this month - 1,128
Pending sales this month - 787 (up 38.80% from last year)
Percent of listings that sold this month - 15.54%
Median closed sales price - Nov. ‘08, $310,000
Median closed sales price - Nov. ‘09, $274,950
Rate of appreciation = -11.31%
~ Courtesy of NWMLS
New listings taken this month - 1,128
Pending sales this month - 787 (up 38.80% from last year)
Percent of listings that sold this month - 15.54%
Median closed sales price - Nov. ‘08, $310,000
Median closed sales price - Nov. ‘09, $274,950
Rate of appreciation = -11.31%
~ Courtesy of NWMLS
Move-up buyers, extended/expanded tax credits boost home sales; Northwest MLS brokers expect momentum to continue in 2010
Home sales continued to outperform year-ago totals and prices continued to show signs of stabilizing, according to the latest report from Northwest Multiple Listing Service. Brokers credit move-up buyers as one factor for the positive activity.
"This winter will not be 'business as usual' for the housing market," proclaimed the CEO of one brokerage while expressing optimism for 2010.
Pending sales for November tapered off from October's surge during the rush to beat a looming tax credit deadline, but compared to November 2008, home sales jumped more than 31 percent. Members notched 4,888 pending sales (mutual acceptance of an offer) last month, which compares to 3,727 pendings for the same period a year ago.
Pat Grimm, a member of the NWMLS board of directors, said the strength of the first-time buyer market is no surprise. "What has been surprising is the strength in the move-up market," he remarked. First-time buyers led the market recovery, according to Grimm, the designated broker at Windermere RE/Capitol Hill, Inc. "Move-up buyers have definitely picked up the baton," he exclaimed.
Closed sales of single family homes and condominiums (combined) for November outgained year-ago totals by an impressive 76 percent, rising from 2,937 completed transactions to 5,168 closings across the NWMLS service area. Last month's total number of closings (5,168) exceeded the number of pending sales (4,888), a ratio that had not occurred since October 2008.
The median sales price area-wide was down about 7 percent from a year ago, the lowest percentage decline all year. Prices had been off every month this year by double digits until June (down 9.5 percent) and August (down about 8.8 percent), but for past three months the decline has been under 7.5 percent.
Grimm described the market within Seattle as "strong," noting stable prices during much of the year and a brisk pace of activity. "The shift was made away from a buyer's market early this year into a balanced market, and in some areas close to the city core, it's a seller's market," he commented.
Inventory for the MLS map areas encompassing Seattle is down more than 16 percent from a year ago, while pending sales jumped about 33 percent. For single family homes (excluding condos) within the Seattle map areas, inventory declined 20.6 percent from a year ago. The median selling price of $399,995 is 3.6 percent less than twelve months ago.
Inventory area-wide is at its lowest level in nearly two years. At the end of November, brokers reported 36,266 active listings (30,084 single family homes and 6,182 condominiums) across the NWMLS market area. That's down from 43,584 active listings in the system twelve months ago, a drop of nearly 17 percent. Not since January 2008, when brokers represented 34,950 home sellers, has inventory been that low.
"This winter will not be 'business as usual' for the housing market," said Lennox Scott, chairman and CEO of John L. Scott Real Estate. "Thanks to historically low interest rates, adjusted home prices, and the passage of the extended/expanded tax credit, we are getting a running start on the New Year," he added.
Last month, Congress passed new legislation that extends the first-time home buyer tax credit of up to $8,000 to buyers who purchase by April 30, 2010. The legislation also authorized a tax credit of up to $6,500 for qualified repeat home buyers.
Holidays can be favorable time to buy, sell
Although seasonal slowdowns are typical for housing activity, industry experts say now can be a good time for both sellers and buyers. Buyers tend to encounter less competition for the most desirable homes. Also, qualified buyers can expect above-normal attention from service providers who are experiencing a slowdown in their business, including lenders, home inspectors, appraisers and title companies. Lenders may even be willing to extend very favorable mortgage terms or forgo some fees as they vie for business.
Agents are able to devote more time to clients and the smaller selection of homes on the market. Sellers can also benefit from showcasing their homes with tasteful holiday decorations, although home stagers caution them to show restraint and not overdo the décor.
~ Courtesy of NWMLS
"This winter will not be 'business as usual' for the housing market," proclaimed the CEO of one brokerage while expressing optimism for 2010.
Pending sales for November tapered off from October's surge during the rush to beat a looming tax credit deadline, but compared to November 2008, home sales jumped more than 31 percent. Members notched 4,888 pending sales (mutual acceptance of an offer) last month, which compares to 3,727 pendings for the same period a year ago.
Pat Grimm, a member of the NWMLS board of directors, said the strength of the first-time buyer market is no surprise. "What has been surprising is the strength in the move-up market," he remarked. First-time buyers led the market recovery, according to Grimm, the designated broker at Windermere RE/Capitol Hill, Inc. "Move-up buyers have definitely picked up the baton," he exclaimed.
Closed sales of single family homes and condominiums (combined) for November outgained year-ago totals by an impressive 76 percent, rising from 2,937 completed transactions to 5,168 closings across the NWMLS service area. Last month's total number of closings (5,168) exceeded the number of pending sales (4,888), a ratio that had not occurred since October 2008.
The median sales price area-wide was down about 7 percent from a year ago, the lowest percentage decline all year. Prices had been off every month this year by double digits until June (down 9.5 percent) and August (down about 8.8 percent), but for past three months the decline has been under 7.5 percent.
Grimm described the market within Seattle as "strong," noting stable prices during much of the year and a brisk pace of activity. "The shift was made away from a buyer's market early this year into a balanced market, and in some areas close to the city core, it's a seller's market," he commented.
Inventory for the MLS map areas encompassing Seattle is down more than 16 percent from a year ago, while pending sales jumped about 33 percent. For single family homes (excluding condos) within the Seattle map areas, inventory declined 20.6 percent from a year ago. The median selling price of $399,995 is 3.6 percent less than twelve months ago.
Inventory area-wide is at its lowest level in nearly two years. At the end of November, brokers reported 36,266 active listings (30,084 single family homes and 6,182 condominiums) across the NWMLS market area. That's down from 43,584 active listings in the system twelve months ago, a drop of nearly 17 percent. Not since January 2008, when brokers represented 34,950 home sellers, has inventory been that low.
"This winter will not be 'business as usual' for the housing market," said Lennox Scott, chairman and CEO of John L. Scott Real Estate. "Thanks to historically low interest rates, adjusted home prices, and the passage of the extended/expanded tax credit, we are getting a running start on the New Year," he added.
Last month, Congress passed new legislation that extends the first-time home buyer tax credit of up to $8,000 to buyers who purchase by April 30, 2010. The legislation also authorized a tax credit of up to $6,500 for qualified repeat home buyers.
Holidays can be favorable time to buy, sell
Although seasonal slowdowns are typical for housing activity, industry experts say now can be a good time for both sellers and buyers. Buyers tend to encounter less competition for the most desirable homes. Also, qualified buyers can expect above-normal attention from service providers who are experiencing a slowdown in their business, including lenders, home inspectors, appraisers and title companies. Lenders may even be willing to extend very favorable mortgage terms or forgo some fees as they vie for business.
Agents are able to devote more time to clients and the smaller selection of homes on the market. Sellers can also benefit from showcasing their homes with tasteful holiday decorations, although home stagers caution them to show restraint and not overdo the décor.
~ Courtesy of NWMLS
Saturday, December 5, 2009
Rates Increase This Week
We have been warning of increasing mortgage rates for awhile now, and this week we have started to see it happening! This week marks the worst week for mortgage rates in months.
The Labor Department reported this morning that only 11,000 jobs were lost in November, which is much lower than the 125,000 expected. In addition, the Unemployment Rate improved to 10% when expectations were for 10.2%. While all of this is good news for the economy, it’s not such good news for mortgage rates which rose in reaction to the reports.
It’s not time to panic yet…rates are still at historically low levels. It is, however, time to take advantage of these rates if you haven’t done so already.
With the government stimulus programs (tax credits for purchases & expanded lending guidelines for refinances) there are numerous opportunities both for those looking to purchase or those looking to refinance. Don’t miss out on this opportunity!
~ Courtesy of Wendy Charles, LoanCentral LLC, 425.468.9321, WendyC@LoanCentral.com
The Labor Department reported this morning that only 11,000 jobs were lost in November, which is much lower than the 125,000 expected. In addition, the Unemployment Rate improved to 10% when expectations were for 10.2%. While all of this is good news for the economy, it’s not such good news for mortgage rates which rose in reaction to the reports.
It’s not time to panic yet…rates are still at historically low levels. It is, however, time to take advantage of these rates if you haven’t done so already.
With the government stimulus programs (tax credits for purchases & expanded lending guidelines for refinances) there are numerous opportunities both for those looking to purchase or those looking to refinance. Don’t miss out on this opportunity!
~ Courtesy of Wendy Charles, LoanCentral LLC, 425.468.9321, WendyC@LoanCentral.com
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