Sticks in the Ground

MORTGAGE APPLICATIONS RISE

                                                 NEW YORK (CNNMoney) –  U. S. mortgage applications rose last week along with the demand for home purchase loans, according to data from the Mortgage Bankers Association (MBA).

The group’s seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ending April 3 increased 4.7 percent to 1,250.6.

Demand for home purchase loans, an indicator of home sales, far outweighed demand for refinancing. The MBA's seasonally adjusted purchase index of loans to buy homes rose 11.1 percent to 297.7.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 4.73 percent, up 0.12 percentage points from the record low reached the previous week.

The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was up 13.3 percent.

.....blogging from Kingwood, TX

Return to Top

Technorati Tags: Housing,Mortgage

GOING GREEN

COLLEGE STATION (Real Estate Center) – Last week, the entire world went “green”, and the Real Estate Center was no exception. Two articles in the latest edition of the Center’s quarterly journal, Tierra Grande, take a look at the green movement’s impact on the building industry.

You may be willing to pay extra for having environmentally friendly systems and amenities installed in your new home. But how will those green components affect the value of the property. Read “Green House Values” to find out.

“What’s in YOUR Building” discusses how more and more cities are requiring commercial buildings to be built to LEED standards, and how the trend may make it more difficult for existing buildings to maintain Class-A status.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top

NEW HOME SALES PLUNGE

WASHINGTON (Associated Press) – Sales of new homes dropped by 8.5 percent in March 2008 to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991, the Commerce Department reported late last week.

The median price of a home sold in March dropped by 13.3 percent compared with March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.

Sales were down in all regions of the country, dropping the most in the Northeast, a decline of 19.4 percent. Sales fell by 12.9 percent in the West, 12.5 percent in the Midwest and 4.6 percent in the South.

The National Association of Realtors reported that sales of existing homes also fell in March, dropping by 2 percent, with prices declining on a year-over-year basis by 7.7 percent.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top

Houston Property Sales Continue to Slide in February

Sixth consecutive monthly decline is tempered by notable increases in average and median single-family home prices

HOUSTON —
Total property sales for February 2008 registered 5,266, which represents a 10.2 percent drop compared to February 2007; it’s an improvement over last month’s 17.2 percent fall. Properties sold during the month totaled just over $1 billion compared to $1.1 billion in sales one year earlier, a 7.9 percent decline. The average price of a single-family home (existing and new construction) rose 5.6 percent last month, representing the biggest increase since last August. The median price of a single-family home increased 3.1 percent. The number of available homes (active listings) at the end of February was 51,308 properties, a 12.8 percent increase over February 2007. The figure was up 599 properties from January 2008, reflecting the continuing sales slowdown.

Single-Family Homes Update
The average sales price for single-family homes (existing and new construction) was $206,140 in February, up 5.6 percent versus the same period last year when it was $195,148. The overall median price of single-family homes in February was $151,430 compared to the national single-family median price of $201,100, according to statistics released by the National Association of REALTORS®.

Additionally, total sales of single-family homes in Houston in February came in at 4,431, which was 10.2 percent lower than February 2007 but a slight improvement over last month’s 12 percent decline.

Improved year-over-year sales activity continued to be observed in Houston’s low- and high-end single-family home markets, with increases of 11.1 percent among homes priced below $80,000 and 11.0 percent among homes priced above $500,000.

In February 2008, existing single-family home sales totaled 3,646, which was a 10.0 percent drop from February 2007. At $141,500, the median sales price for existing homes in the Houston area was up 1.8 percent compared to the same period last year. The average sales price of $190,553 for the month represented an increase of 5.0 percent from last year’s level

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top

Big Changes in Mortgage Insurance Requirements

According to sources in the mortgage brokerage business, I have learned that effective immediately, Mortgage Insurance providers such as Mortgage Guaranty Insurance Corporation and AIG United Guaranty (two of the largest in the industry) will no longer offer mortgage insurance (PMI) for borrowers seeking 100% financing. This is a huge change. Without the mortgage insurance (PMI) the 100% financing product will no longer be available to borrowers. Most 2nd lenders have pulled out of the 80/20 loan business too. This means that borrowers are going to have to be prepared to make a down payment when doing a purchase contract. 

These Mortgage Insurance providers have also increased their requirements for borrowers doing 97% financing (3% down payment); if the borrower does not have at least a 680 mid credit score they will not qualify for mortgage insurance. For borrowers whose mid credit score is below 620 there will be no mortgage insurance available, no matter if they put 10% or 15% down.

These changes pertain to Fannie Mae/Freddie Mac loans, not FHA.

Mortgage backed securities continue to have problems on Wall Street. Mortgages on clients with less than 20% equity in their property are some of the “least attractive” in the market. For that reason Lenders & Mortgage Insurers continue to increase the guidelines on these types of loans to make them more “attractive” to investors.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top

HOUSING HIGHS AND LOWS

WASHINGTON (Associated Press) – News from Washington, D.C., yesterday had its highs and lows, and, no matter how you looked at it, it spelled bad news for the national housing market.

Foreclosures Hit Record High
The Mortgage Bankers Association said the proportion of all mortgages nationwide that fell into foreclosure shot up to a record 0.83 percent in fourth quarter 2007. That surpassed the previous high of 0.78 percent set in the previous quarter.

Record Low for Home Equity
The Federal Reserve reported that homeowner equity actually slipped below 50 percent in second quarter 2007 and fell to just below 48 percent in the fourth quarter. This marks the first time since the Fed started tracking the data in 1945 that the amount of debt tied up in American homes has exceeded the equity homeowners have built.

Economy.com estimates that 8.8 million homeowners — about 10 percent of homes — will have zero or negative equity by the end of March. About 13.8 million households will be "upside down" if prices fall 20 percent from their peak.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top

BERNANKE URGES LOWERING MORTGAGE AMOUNTS

WASHINGTON (Bloomberg) – In what he called a "vigorous response" to the national housing crisis, Federal Reserve Chairman Ben Bernanke last week urged lenders to forgive portions of mortgages held by homeowners at risk of defaulting.

"Efforts by both government and private-sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done," Bernanke said in a speech to bankers in Orlando March 4th. "Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure."

Bernanke's call goes beyond the stance of the Bush administration and previous Fed comments, indicating that he sees housing as a serious threat to the economy that can't be addressed by fiscal or monetary policy alone. The Fed's Feb. 27 report to Congress called for lenders to "pursue prudent loan workouts" through means such as modifying mortgage terms and deferring payments.

The number of U.S. homeowners entering foreclosure rose 75 percent in 2007, with more than 1 percent in some stage of foreclosure during the year, according to RealtyTrac Inc.. For the year, more than 2.2 million default notices, auction notices and bank repossessions were reported on about 1.3 million properties.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top

Houston Housing Shows Some Stress

January saw the Houston area housing market continue to weaken with sales volumes hitting their lowest level in three years and prices showing signs of softness.

Single family home sales were down 12 per cent from last year. This follows a 16 per cent decline in  December 2007.

Prices declined to their lowest level since January 2006. The median price of $139,000 represents a 2.8 percent reduction, the first monthly decline since August 2004.

Homes are staying on the market longer. In January the average for the Houston area was 92 days, beating last years record level of 81 days by a substantial margin.

Lower priced homes ($80,000 to $150,000) which make up over one-third of the Houston market, showed the biggest volume decline with almost 20 percent less homes sold in January then last year at this time.

These declines are obviously a result of the overall national mortgage crisis and the resulting national housing slump.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top

Fingerprints & Background Checks

With the new year comes new requirements for Texas real estate brokers and salespeople. Now, before a person can apply for or renew their real estate license, they must be fingerprinted and submit to an FBI background check. Although fingerprinting is a one time requirement, effective January 2008, the FBI background check will be performed EVERY time the real estate license is renewed, typically every two years. The process is administered by the Texas Department of Public Safety.

This requirement is a positive step in an ongoing effort to safeguard the public and monitor the integrity of the real estate practitioner. As a consumer of real estate services YOU deserve the best representation possible.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top

GHBA Green Building Initiative

The GHBA Green Building Initiative is a new program designed to help bring more energy-efficient and environmentally friendly homes to the Houston area by providing a baseline for practical green building approaches for local builders.

This comprehensive program will help more home owners throughout Houston enjoy the benefits of green built homesresulting in utility savings, improved indoor air quality and less overall maintenance.

The GHBA Green Building Initiative guidelines will be based on fundamental green building principles including: minimizing solar heat gain, maximizing natural light and ventilation, creating a cool shell, reducing utility costs, ensuring efficient heating and cooling, using efficient appliances and lights and choosing "green" materials.

The GHBA Green Building Initiative provides technical expertise to help local builders use the guidelines and encourages the construction of green homes across Houston.

Visit us on the web at KingwoodTxHomesForSale.com

... blogging from Kingwood, TX

Return to Top