Mortgage Back to Record Lows

Fixed-rate mortgages are back at all-time record lows or hovering near them, Freddie Mac reports in its weekly mortgage market survey. For those who can qualify for a loan, the ultra-low mortgage rates are pushing housing affordability higher. 

"Following the Federal Reserve's announcement of a new bond purchase plan, yields on mortgage-backed securities fell, bringing average fixed mortgage rates to their all-time record lows, which should aid in the ongoing housing recovery,” says Frank Nothaft, Freddie Mac’s chief economist. 

Here’s a closer look at the national averages with mortgage rates for the week ending Sept. 20:

Housing Prices Hit Bottom

Economists are increasingly confident that home prices have bottomed out. 

For the last three years, home prices have usually risen in the spring and summer to only then lose all of those increases—plus more—in the fall and winter months. However, economists expect this year to be different and do not foresee such a big drop to occur to home prices in the colder months ahead, The Wall Street Journal reports. 

Mortgage Rates Still Near Record Lows

Fixed-rate mortgages continued to hover near all-time lows, keeping home buyer affordability high. 

Freddie Mac reports the following averages in this week’s mortgage market survey: 

• 30-year fixed-rate mortgages: 
averaged 3.55 percent, with an average 0.7 point, dropping from last week’s 3.59 percent average. A year ago at this time, 30-year rates averaged 4.12 percent. 

• 15-year fixed-rate mortgages: 
averaged 2.86 percent, with an average 0.6 point, holding steady from last week’s average. A year ago, 15-year rates averaged 3.33 percent. 

• 5-year adjustable-rate mortgages: 
averaged 2.75 percent, with an average 0.7 point, dropping from last week’s 2.78 percent average. Last year at this time, 5-year ARMs averaged 2.96 percent.

• 1-year ARMs: 
averaged 2.61 percent, with an average 0.4 point, falling from last week’s 2.63 percent average. A year ago, 1-year ARMs averaged 2.84 percent.

Source: Freddie Mac  

Save Electricity

With heating and cooling costs continuing to rise, it makes sense to look at one of the leading causes of energy inefficiency in the home: the windows. Installing energy-efficient windows can mean increased comfort as well as savings on utility bills in any climate. 

The transmission of air and light is generally the most important function of windows. However, this can mean heat loss in the winter, overheating in the summer, and higher energy bills. A typical home may lose up to 30% of its heat or cooling through windows. Properly installed energy-efficient windows can go a long way toward improving this situation. 

The Housing Recovery is Real

Customers, friends and family members have heard me preaching it for several months now: The housing recovery is real, South Florida hit its market bottom last winter, we're on our way back up.

Of course they poo-poo my opinion, choosing instead to believe the talking heads because they're "professionals".  They don't seem to understand that the journalists aren't in the field on a daily basis and the data they receive is typically 30 days or more old by the time it's reported.

It appears the "professionals" are now receiving their old data and are beginning to report the recovery as new news.  Many good articles from reputable sources are out there.  One of the more intuitive articles I have reviewed is available here via The Wall Street Journal.  Enjoy!

Just Listed on the Water

Americans Positive on Housing and Economy

Americans’ concerns over housing and the economy are subsiding, according to Fannie Mae’s National Housing Survey from February. 

An improving job market is a big part of what’s behind Americans feeling more confident about the housing market and the direction of the economy, according to the survey. 

“The pickup in the pace of hiring over the past few months has helped soothe consumer concerns, lifting their moods regarding their personal finances, the direction of the economy, and their views on the housing market,” says Doug Duncan, chief economist of Fannie Mae. “As a result, we’ve seen more potential for economic upside, creating a more balanced near-term outlook.”