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Fixed mortgage rates hit record lows again

Frank Glaab — Sat, 19 May 2012 15:22:54 +0000

MCLEAN, Va. – May 18, 2012 – Fixed mortgage rates again hit new record lows in Freddie Mac’s weekly survey. The 30-year fixed-rate mortgage at 3.79 percent continues to remain well below 4 percent, and 15-year fixed-rate mortgages are also slightly down at 3.04 percent.

“The European debt crisis overshadowed improving economic indicators for the U.S. and allowed … fixed mortgage rates to ease for another week,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “For instance, industrial production rose 1.1 percent in April – the largest gain since December 2010 – and consumer sentiment in May rose to its highest reading since January 2008, according to the University of Michigan.”

At 3.79 percent, the 30-year fixed-rate mortgage (FRM) is down from last week when it averaged 3.83 percent. Last year at this time, the 30-year FRM averaged 4.61 percent. For the week ending May 17, 2012, it had an average 0.7 point.

The 15-year FRM this week averaged 3.04 percent with an average 0.7 point, down from last week when it averaged 3.05 percent. A year ago, the 15-year FRM averaged 3.80 percent.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.83 percent this week, with an average 0.6 point – an increase from last week when it averaged 2.81 percent. A year ago, the 5-year ARM averaged 3.48 percent. The one-year Treasury-indexed ARM averaged 2.78 percent this week with an average 0.5 point, up from last week when it averaged 2.73 percent. At this time last year, the one-year ARM averaged 3.15 percent.

Fla. in top five for home price appreciation

Frank Glaab — Thu, 10 May 2012 19:26:24 +0000

NEW YORK – May 10, 2012 – Tighter housing inventories are starting to lift home prices, says Anand Nallathambi, CoreLogic’s CEO.

CoreLogic’s latest home price index, which includes distressed sales, shows a slight month-over-month nationwide increase of 0.6 percent in home prices from February to March. But some markets are seeing much more of a price boost this spring, including Florida, which ranked No. 5 overall for home price increases.

“This spring, the housing market is responding to an improving balance between real estate supply and demand, which is causing stabilization in house prices,” says Mark Fleming, CoreLogic’s chief economist. “Although this has been the case in each of the last two years, the difference this year is that stabilization is occurring without the support of tax credits and in spite of a declining share of REO sales.”

States with highest appreciation

According to CoreLogic, the following states had the highest appreciation in March (this includes distressed sales):

• Wyoming: +5.9%
• West Virginia: +5.3%
• Arizona: +5.1%
• North Dakota: +4.7%
• Florida: +4.5%

States with biggest depreciation

Meanwhile, the states with the greatest depreciation, when also figuring in distressed sales, are:

• Delaware: -10.6%
• Illinois: -8.3%
• Alabama: -8%
• Georgia: -7.3%
• Nevada: -5.8%

Source: Melissa Dittmann Tracey, Realtor® Magazine Daily News

Fla. second-best U.S. state for business

Frank Glaab — Thu, 03 May 2012 18:44:14 +0000

NEW YORK – May 3, 2012 – An annual survey of CEOs conducted by Chief Executive Group finds that Florida is the second-best U.S. state for businesses. The same survey in 2011 ranked Florida third.

Gov. Rick Scott cited the magazine’s results last year in his efforts to increase the number of jobs in Florida. In a letter, he jokingly told Texas Gov. Rick Perry that he was aiming for the No. 1 spot. The 2012 results still found Florida falling short of that goal, but it’s now nipping on Texas’ heels.

According to Chief Executive, the one-level boost in Florida’s ranking results from pro-business laws enacted since Scott came into office, including business tax and regulatory reforms, a 2.1 percent unemployment drop and 140,000 private sector jobs.

Texas received points for the quality of its workforce that, according to Chief Executive, is second only to Utah.

North Carolina, Tennessee, Indiana, Virginia, South Carolina, Georgia and Utah rounded out the top 10 states that are best for business. California landed at the bottom of the list.

The results are based on responses from 650 business leaders that graded states where they did business.

Boost home’s value with curb appeal

Frank Glaab — Tue, 01 May 2012 01:09:53 +0000

NEW YORK – April 30, 2012 – First impressions matter, especially when it comes to selling a home.

A home’s curb appeal – how its exterior looks to a buyer from the street – can either provide an inviting enticement for a prospective buyer or produce a negative impression.

Several websites offer a host of information for improving the curb appeal value of a residential property. Here are a few with good insights:

• Bankrate.com: Covers eight tricks to improve the curb appeal of a home.

• Good Housekeeping: Lists five ways to boost curb appeal.

• HandyAmerican.com: Serves up extensive list of home improvements to maximize a home’s curb appeal.

• Home Gain: Offers spending considerations and guidelines for remodeling a home.

• Kiplinger.com: Spotlights curb appeal beautification options for free, $100 and $500.

March pending home sales rise, market recovering

Frank Glaab — Thu, 26 Apr 2012 19:54:51 +0000

WASHINGTON (April 26, 2012) – Pending home sales increased in March and are well above a year ago, another signal the housing market is recovering, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index (PHSI), a forward-looking indicator based on contract signings, rose 4.1 percent to 101.4 in March from an upwardly revised 97.4 in February, and it’s 12.8 percent above March 2011 when it was 89.9. The data reflects contracts but not closings.

The index is now at the highest level since April 2010 when it reached 111.3.

“First quarter sales closings were the highest first quarter sales in five years,” says Lawrence Yun, NAR chief economist. “The latest contract signing activity suggests the second quarter will be equally good. The housing market has clearly turned the corner. Rising sales are bringing down inventory and creating much more balanced conditions around the county, which means home prices will be rising in more areas as the year progresses.”

The PHSI in the Northeast slipped 0.8 percent to 78.2 in March but is 21.1 percent above March 2011. In the Midwest, the index declined 0.9 percent to 93.3 but is 16.9 percent higher than a year ago.

Pending home sales in the South rose 5.9 percent to an index of 114.1 in March and are 10.6 percent above March 2011. In the West, the index increased 8.7 percent in March to 108.0 and is 9.0 percent above a year ago.

2313 NW 24th Ter, Cape Coral, FL 33993

Frank Glaab — Thu, 26 Apr 2012 16:35:23 +0000

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Frank Glaab — Thu, 26 Apr 2012 15:05:41 +0000

Existing home prices rise in Lee

Frank Glaab — Thu, 26 Apr 2012 00:57:14 +0000

The median price of a single-family home in Lee County sold with the assistance of a Realtor was $124,000 in March, up from $120,000 in February, according to statistics released by Florida Realtors.

There were 1,278 single-family homes sold in the month, up from 988 in February.

The National Association of Realtors said Thursday that home sales fell 2.6 percent last month to a seasonally adjusted annual rate of 4.48 million. That followed a revised 4.6 million sold in February.

Local statistics comparing year-over-year sales and median prices weren’t available because Florida Realtors since January has been using a different methodology to calculate those numbers.

In March 2011, Florida Realtors reported the median price was $101,900 and the number of sales was 1,641. Those numbers were compiled using a different methodology, however.

Brett Ellis of Remax Realty Group said March was a good month for residential real estate.

“We’ve had strong demand and the inventory is not great,” he said. “It feels like this market’s been cherry picked. We’ve had strong demand in the season, with some properties coming onto the market but not as many as are leaving the market.”

Nationally, Americans bought fewer previously owned homes in March, a reminder that the housing market remains weak.

A mild winter may have encouraged more people to buy earlier, essentially stealing sales from March.

More purchases in January and February made this the best winter for sales in five years. The increase offered some encouragement ahead of the spring buying season.

Even with the gains, sales remain far below the 6 million per year that economists equate with healthy markets. And the weaker March figures suggest any momentum from the winter has stalled, said Dan Greenhaus, chief global strategist at BTIG in New York.

“We are most certainly not set to declare that the housing recovery is over but a strong start to the spring selling season is simply not in the data,” said Greenhaus.

There were some signs of modest improvement.

First-time buyers, who are critical to a housing recovery, rose to 33 percent of all purchases last month. In healthy markets, they make up at least 40 percent.

The supply of homes on the market fell 1.3 percent last month to 2.37 million. A decline in the supply typically encourages more people to put homes up for sale. That generally improves the overall quality of the homes on the market, which drives prices higher.

And the number of homes at risk of foreclosures declined, making up 29 percent of sales. That’s down from 34 percent in February but still high. In healthier markets, foreclosures typically make up less than 10 percent of sales.

Nationwide, the median sales price of homes rose for the second straight month in March to $163,800.

— The Associated Press also contributed to this report.

Fla. unemployment drop best in 20 years

Frank Glaab — Tue, 24 Apr 2012 18:37:50 +0000

TALLAHASSEE, Fla. – April 23, 2012 – Job statistics released Friday by the Florida Department of Economic Opportunity show Florida’s unemployment rate for March 2012 declined from 9.4 to 9.0 – the largest monthly unemployment rate drop in 20 years. The last time jobs picked up that quickly was in 1992.

Florida added 10,800 jobs in March.

“The largest monthly unemployment rate decline in 20 years is a milestone all Floridians can celebrate,” Gov. Rick Scott said in a release. “Florida’s unemployment rate is declining at a much faster rate than the national unemployment rate. Clearly, we’re doing the right things to get our economy growing in Florida.”

Only two other states, Alabama and Michigan, have had a stronger improvement in their unemployment rate.

“Even if you look at payroll growth … throughout the year, (Florida) has been stronger than average. I believe the state will continue to recover at a faster pace,” PNC Financial Services Group Economist Mekael Teshome told the Tampa Tribune. He credits the rebound, in part, to an upswing of new residents moving to Florida from other states and countries, which is boosting demand for services and supplies.

NAR economist: Fla. prices up 10% by 2013

Frank Glaab — Wed, 18 Apr 2012 19:45:08 +0000

WEST PALM BEACH, Fla. – April 18, 2012 – There is little to prevent another housing run-up and subsequent bust as long as there are people who want to get rich quick, said the chief economist of AIG during a business conference Tuesday at the Palm Beach County Convention Center.

Ardavan Mobasheri, who spoke to about 100 people gathered for a real estate discussion at the International Economic Forum of the Americas, said the financial crisis that began in 2008 can “easily trace its roots to the excesses of the housing market” but can’t as easily be stopped from happening again.

“So long as individuals have the liberty and freedom to be greedy, the speculative bubbles will be inevitable, and we’ll have to deal with the outcome of the bursting of that bubble,” Mobasheri said. “There is no measure we can take to prevent investors who want in a short period of time to become rich.”

AIG, a multinational insurance company, was a major contributor to the economic crisis when it imploded in September 2008. A credit rating downgrade required it to put up billions of dollars in cash collateral, which triggered a lack of liquidity. Its federal bailout package of $182.3 billion was the single largest of any company in U.S. history. AIG has paid back billions of dollars. Its remaining debt to the Troubled Asset Relief Program is about $35.7 billion.

Although there is no cure for greed, changes in mortgage application requirements and underwriting guidelines will help thwart a repeat of the multitude of bad loans granted during the housing boom, said Lawrence Yun, chief economist for the National Association of Realtors, who spoke during the same session as Mobasheri.

“Back in 2005 investors came in with exotic mortgages and liar loans, but that’s not the case today,” Yun said. “These investors are coming in solidly with cash deals.”

Yun was optimistic about a housing recovery, predicting Florida existing-home prices will jump 10 percent by the end of 2012.

Several Realtors in the session said bidding wars are again commonplace and that they are having trouble finding homes for traditional buyers, especially those getting a loan instead of using cash. One Realtor told the panelists she worries that another mini-bubble is forming.

“The home is on the market for $115,000 and people are bidding $150,000,” she said. “It’s not a fair game for people trying to purchase with financing.”

In February, there was a six-month supply of homes for sale in Palm Beach County, down from nearly 14 months during the same month last year, according to the Realtors Association of the Palm Beaches.

Yun’s pricing prediction was buoyed Tuesday by a Realtor.com report that found Palm Beach County listing prices were up 15 percent to $225,000 in March compared to the same time in 2011. Nationally, the list price was up 5.5 percent.

A backlog of homes in foreclosure will eventually expand the housing supply, a development welcomed by Florida Realtors President Summer Greene.

“When you put a foreclosure on the market you have, two, three, four offers coming in,” she said.

While real estate may be bouncing back, other speakers Tuesday were more reluctant to forecast a rapid overall fiscal recovery.

“Risks remain high and the path forward is shrouded in uncertainty,” said Lisa Shalett, chief investment officer of Merrill Lynch Global Wealth Management, during her keynote speech. “The global economy is far from out of the woods.”