Mack's Blog » Market Data

Rates Bumped Up Slightly

Magoo — Mon, 31 Aug 2009 20:15:54 +0000

Long-term mortgage rates bumped up slightly this past
week, but
they remain near record lows. Freddie Mac reported that average
interest on a 30-year fixed loan was 5.14
percent, up from 5.12 percent a week ago. Rates for
15-year home loans, meanwhile, rose to 4.58 percent from 4.56
percent last week.

[SOURCES: Freddie Mac; Information, Inc.]

Rates Ease Up Slightly

Magoo — Tue, 11 Aug 2009 16:08:29 +0000

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 5.22 percent during the week ended Aug. 6 from 5.25 percent the prior week. Over the same period, the 15-year fixed-mortgage rate slipped to 4.63 percent from 4.69 percent. As for adjustable-mortgage rates, the five-year fell to 4.73 percent from 4.75 percent, and the one-year dipped to 4.78 percent from 4.80 percent.

[SOURCES: Freddie Mac; Information, Inc.]

The THDA Stimulus Second Mortgage Program

Magoo — Tue, 05 May 2009 23:15:44 +0000

Earlier this year, Congress passed the American Recovery and Reinvestment Tax Act of 2009 (”2009 Tax Act”). In division B, Title I, Section 1006, there is a provision for a First Time Homebuyer Tax Credit (Form 5405) up to $8,000 or 10% of the purchase price. This act provides for an exception for principal residences purchased between January 1, 2009, and November 30, 2009, which enables a first time homebuyer to receive the tax credit with no repayment required if the homebuyer occupies the property for 3 years. The 2009 Tax Act also provides for use of this credit with loans purchased with proceeds of tax-exempt mortgage revenue bonds. Therefore, this credit can now be used with THDA’s mortgage programs.

THDA now has a new second mortgage program, the THDA Stimulus Loan Program, for downpayment and closing cost assistance. This program will complement THDA’s existing Homeownership Choices incorporating the tax credit. In order to be eligible for the second mortgage program, THDA MUST be providing funding for the first mortgage through the Great Rate or Great Advantage programs for the borrower(s) to purchase the home. Both the first and second mortgage must close on or before November 30, 2009. The November 30, 2009, date also applies to new construction. The new home must be complete and the loan closed on or before November 30, 2009.

For program terms and details, go HERE.

[SOURCE: THDA]

First-Time Buyers Could Boost Sales!

Magoo — Tue, 05 May 2009 23:08:50 +0000

The National Association of REALTORS says over 50 percent of March’s home sales were tied to first-time buyers, many of whom snapped up foreclosed homes and other distressed properties. Experts believe getting first-time buyers off the sidelines to take advantage of historically low interest rates and federal tax credits will reduce the glut of homes on the market and spark a recovery, and some point out that first-time buyers are helping to revitalize communities in Florida, California, and other states hit hard by foreclosures. However, distressed properties often sell for 20 percent less than traditional dwellings, and the increase in lower-end sales is driving down the national median home price.

[SOURCES: USA Today; Information, Inc.]

VIDEO: Realogy CEO Talks About Jump-Starting the Housing Market

Magoo — Fri, 01 May 2009 19:53:55 +0000

Realogy CEO Richard A. Smith was a featured speaker at the prestigious Milken Institute 2009 Global Conference on April 28 as part of a lively panel titled “Jump-Starting the Housing Market.” During the hour-long panel discussion, Smith stated that while the Obama administration has focused on the foreclosure issue, the solution to the problem is on the demand side. Smith demonstrated Realogy’s thought leadership by explaining how the government could take stronger action by lowering mortgage interest and expanding tax credits from first-time buyers to all homebuyers. Both of those actions would spur home sales activity and thus create a positive overall impact on the economy. The panel was moderated by Fox Business News anchor Brian Sullivan.

Click here to visit the Milken Institute site, and click “play” to watch the complete panel discussion.

A Small Drop in Rates

Magoo — Tue, 21 Apr 2009 15:14:38 +0000

Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended April 16 from 4.87 percent the prior week, while interest on 15-year fixed loans fell to an average of 4.48 percent from 4.54 percent. The five-year hybrid adjustable mortgage rate slipped to 4.88 percent from 4.93 percent, but the one-year ARM rose to 4.91 percent from 4.83 percent.

Freddie Mac chief economist Frank Nothaft says, “The housing industry is starting to exhibit some positive signs, albeit scarce and too early to tell how permanent.”

[SOURCES: Freddie Mac; Information, Inc.]

Gains in Pending Sales

Magoo — Tue, 21 Apr 2009 15:10:06 +0000

From NAR’s Research Division this past week:

*** BEGIN QUOTE ***
Pending home sales have edged up, hinting at a possible pickup of sales activity in coming months, according to the National Association of REALTORS. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, rose 2.1 percent to 82.1 from a reading of 80.4 in January, but is 1.4 percent below February 2008 when it was 83.3.

Lawrence Yun, NAR chief economist, said the market is continuing to underperform. “Pending home sales have a way to go for there to be a meaningful increase, but recent increases in shopping activity are hopeful indicators that we’ll see additional sales gains,” he said. “More buyers are getting into the market to take advantage of stimulus incentives and much improved housing affordability conditions, but it will take a few months before we could see this turn up in measurable sales contract activity.”
*** END QUOTE ***

[SOURCE: NAR]

Dreaming of Lake Front

Magoo — Fri, 17 Apr 2009 22:26:59 +0000

Looking for a lake front lot to build your dream home on? Do you like Tennessee? Would you like to build in Tennessee on Tims Ford Lake?
Then take a look at this lot.

Visual Tour of Lot

Rates Rise, But Still Under 5

admin — Tue, 14 Apr 2009 15:01:43 +0000

Freddie Mac reports a jump in the 30-year fixed mortgage rate to 4.87 percent during the week ended April 9 from record lows posted during the last couple of weeks. The 15-year fixed mortgage rate climbed to 4.54 percent from 4.52 percent. Meanwhile, the five-year hybrid adjustable rate bumped up to 4.93 percent from 4.92 percent; and the one-year ARM rose to 4.83 percent from 4.75 percent.

[SOURCES: Freddie Mac; Information, Inc.]

30-Year Rates Hit Record Low!

admin — Tue, 31 Mar 2009 05:53:14 +0000

With the Federal Reserve planning to purchase another $750 billion in mortgage-backed securities and up to $300 million in Treasuries, Freddie Mac reports a drop in long-term mortgage rates. The average interest on a 30-year loan fell to a 38-YEAR LOW OF 4.85 PERCENT during the week ended March 26 from 4.98 percent the prior week!

Frank Nothaft, Freddie Mac vice president and chief economist, noted: “Rates for 30-Yr FRMs peaked last year at 6.63 percent on July 24th. With this week’s 30-Yr FRM, the interest rate difference is almost 2 percentage points, which amounts to a savings of about $225 in monthly mortgage payments for a $200,000 loan.”

“And potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales, according to the National Association of REALTORS. In addition, mortgage applications for home purchases consecutively rose over the first three weeks in March, based on figures published by the Mortgage Bankers Association.”

[SOURCE: Freddie Mac]