Oct 27, 2014 | Market Outlook
Last week’s economic news included a few developments connected with housing and mortgage industries. While no economic reports were released on Monday, the rest of the week provided good news for existing home sales, home prices and mortgage rates.
The National Association of REALTORS® reported that existing home sales in September exceeded expectations and the prior month’s reading with a seasonally adjusted annual rate of 5.17 million sales.
Three of four U.S. regions posted higher sales of previously owned homes with only the Midwest region reporting a decline in existing home sales. Analysts said that consistent job growth and improved access to mortgage loans are two keys to improving U.S. housing markets.
FHFA, the agency that oversees Fannie Mae and Freddie Mac reported that home prices for properties associated with Fannie Mae and Freddie Mac mortgages rose by 0.50 percent in August.
In a separate development, FHFA Director Mel Watt said that the agency is reviewing policies that could lessen lender concerns over requests to repurchase Fannie and Freddie loans due to early defaults or other deficiencies. This was seen as a possible solution to current strict mortgage approval requirements that are limiting access to home loans by first-time and moderate income buyers.
Mortgage Rates Fall, Weekly Jobless Claims Rise
After falling below four percent the prior week, last week’s mortgage rates continued to decrease. The average rate for a 30-year fixed rate mortgage fell by five basis points to 3.92 percent; 15-year fixed rate mortgages had an average rate of 3.08 percent, a decrease of 10 basis points. The average rate for a 5/1 adjustable rate mortgage was one basis point below the prior week’s reading at 2.91 percent.
Average discount points were unchanged at 0.50 percent. Lower mortgage rates help with making home loans more affordable, but analysts again noted the importance of improved access to mortgage loans for would-be home buyers.
Weekly jobless claims were higher at 283,000 new claims filed as compared to projections of 285,000 and the prior week’s reading of 266,000 new claims filed. While higher than in recent weeks, new jobless claims have remained below 300,000 for six weeks. The Labor department reported that new claims over the past month fell by 3000 to 281,000 new claims. This reading was the lowest since May 2000. Due to week-to-week volatility, financial analysts and economists view the month-to-month readings as a more consistent data source.
New Home Sales Hit Six-Year High in September
Sales of new homes in September ended the week on an upbeat note and exceeded expectations; they reached a six-year high in spite of downward adjustments to sales figures reported earlier. September’s reading was 467,000 new homes sold on an annual basis as compared to expectations of 455,000 new homes sold and August’s reading of 466,000 new homes sold.
What’s Ahead
Next week’s scheduled economic news includes pending home sales, the Case-Schiller home price index reports, the Federal Open Market Committee (FOMC) post-meeting statement and reports on consumer sentiment and consumer confidence. The Freddie Mac PMMS and Weekly Jobless Claims reports will be released as usual on Thursday.
Oct 24, 2014 | Market Outlook
After months of reports of slowing home price momentum and forecasts of a lagging housing market, we are pleased to report an increased volume of existing home sales as reported by the National Association of REALTORS®.
The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, reported rising prices for homes connected with Fannie Mae and Freddie Mac mortgages. Here are the details.
Pedal to the Metal: Existing Home Sales Achieve Fastest Rate in a Year
September sales of previously owned homes reached a seasonally adjusted annual rate of 5.17 million sales against expectations of 5.10 million sales and August’s reading of 5.05 million sales.
The National Association of REALTORS® reported that the national reading for sales of previously owned homes rose by 2.40 percent to a seasonally-adjusted annual rate of 5.17 million sales.
Analysts had expected September’s reading for existing home sales to reach 5.10 million based on August’s reading of 5.05 million existing homes sold.
Three of four regions posted month-to-month gains in existing home sales for September; only the Midwest showed a decline. Overall, September’s sales pace for existing homes was 1.70 percent lower year-over-year.
Steady home prices and lower mortgage rates contributed to a higher pace of existing home sales, but obstacles remain. Lawrence Yun, chief economist for the National Association of REALTORS® said that September’s reading for existing home sales reflected ongoing economic uncertainty; he said that labor markets will need to strengthen in order to maintain the pace of existing home sales.
Mr. Yun also said that restoration of more “normal” lending standards would allow more first-time and moderate income buyers to qualify for mortgage loans and could potentially increase home sales by 10 percent.
FHFA: Home Prices Rise, Mortgage Credit Standards May Ease
FHFA reported that home prices of properties connected with Fannie Mae and Freddie Mac mortgages rose by 0.5 percent in August as compared to a month-to-month revised increase of 0.20 percent in July. August’s reading represents a year-over-year increase of 4.80 percent as compared to July’s year-over-year increase of 4.60 percent.
In related news, FHFA Director Mel Watt hinted at some welcome news during a meeting on October 21 in Las Vegas.
Strict mortgage requirements are frequently cited as a cause of lukewarm home sales, but there is some hope that mortgage credit requirements may return to pre-housing bubble standards. Mr. Watt said that the agency is working on relaxing certain rules affecting how and when mortgage lenders are required to repurchase loans that they’ve sold to Fannie Mae and Freddie Mac.
These changes are designed to clarify FHFA regulations and to narrow the criteria for when repurchasing loans is required. Lenders have been using strict mortgage approval standards as a protection against Fannie and Freddie requests to repurchase loans categorized as “early defaults.”
Oct 23, 2014 | Home Buyer Tips
If you’re moving to a new city with children, one of your likely considerations is finding a family-friendly community where you can settle in and call home.
In this post we’ll share a handful of tips that you may find helpful if you’re searching for a family-friendly neighborhood in a new city.
Check Out The Quality Of Local Schools
Schools are one of the cornerstones of a community and high-quality schools are a sign that a community is suitable for your family. When you’ve made your short list of communities that you are considering, take some time to research the local elementary or high schools to see how they stack up against other schools in the surrounding area.
You may also want to connect with the school’s principal or dean to ask about the environment and whether or not it would be suitable for your children.
Look Around For Local Churches And Other Community Groups
Great communities are those which are filled with engaged citizens who are actively working to better the area for everyone. When you drive through a community that you’re considering, look around to see if there are churches and other groups that get local residents together on a regular basis.
You may find that these groups make for an excellent welcoming committee who can introduce you to the area and help to get your family settled.
Parks And Other Gathering Spaces Are A Good Sign
Another excellent way to determine if a community is suitable for raising a family is the number of nearby parks and public gathering spaces. You’ll want to ensure that your children have a nice area to run around and play with your family pet, or that you have a nice park in which to have the occasional picnic lunch to spend some quality time together.
When In Doubt: Ask The Locals
If you’re visiting a community or touring through homes, spend some time talking to the locals to hear their thoughts and opinions on how family-friendly the local area is. If you haven’t yet, you should also connect with a local real estate agent who can share the ups and downs of the community you’re thinking about moving to.
Follow these tips and trust your instincts, and you’ll be able to find a great new community that makes a perfect home for your family.
Oct 22, 2014 | Uncategorized
By Amy Tierce
Good salespeople are always trying to improve their game, to up the ante and grow. Many salespeople get sucked into the ‘shiny-new-object’ trap. They’re looking for the next big thing to implement: a strategy, an app, a new program or campaign. They ask themselves, “What’s the next breakthrough product that will take my career to a higher level?”
I’m in the process of building a whole new business and all day long I’m engaged in networking with salespeople, referral partners and business leaders as we grow our presence in New England. As I was struggling to lay out a business plan, I finally asked myself an important question “You’ve done this before. What worked then, will it work today, and why aren’t you doing it?” At that moment, I realized that I didn’t need to create a new strategy – I needed to review my past success and replicate the actions that got me there. Perhaps I could add a tweak or two for the times, but don’t mess with what’s worked.
I counsel you to ask yourself those same questions.
We’re frequently chasing the next new thing when we already have all the tools, ideas and action plans necessary to achieve our present goals. Much like Dorothy in The Wizard of Oz – the power was always there, but her thoughts prevented her from seeing it.
Try to recall the best professional week – or month, or quarter, or year, or any period of time – that you’ve experienced in your career. What were you doing? What was working for you? Where did the energy come from? What made that period feel good? What made that a successful time for you?
Figure that out – then do it again, and repeat!
Instead of looking for the next big thing, dig deep and look at what actions have been a big thing in your career. Then consider how to recreate them, or continue doing them with greater consistency!
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Amy Tierce is Regional is Vice President at Winturst Mortgage
She can be reached at: (781) 453-8900
atierce@wintrustmortgage.com
Oct 22, 2014 | Home Seller Tips
Have you decided to sell your home, perhaps to make an upgrade to a newer, larger house? Whatever your reasons for selling, you’ll have a number of decisions to make as you craft your listing and begin receiving offers from buyers but few are as important as your initial selling price.
Let’s take a look at three reasons why setting your listing price is the most important factor in your home sale.
Reason #1: You Can Scare Off Potential Buyers With A High Price
You’ll receive the majority of your buyer interest in the first few days and weeks after you place your home up for sale, so it’s critical that your price isn’t set so high that it scares a number of buyers off.
While some sellers believe that it’s better to price high and let buyers submit lower offers, this can actually work against you. It’s better to have your home priced fairly from the beginning as you can always refuse offers that you deem are too low.
Reason #2: Your Price Directly Impacts How Long Your Sale Will Take
If you’re interested in seeing your home sell quickly it’s going to be in your best interest to have it priced competitively. Buyers will be shopping around for similar homes in your community and if there are other listings with lower prices on the market you may find it takes you a while to get your home sold.
Also, if you do find a buyer that is interested they’ll likely try to enter into price negotiations with you which can extend the length of the sale by a week or more as you go back and forth to reach an agreement.
Reason #3: A Low Price Means Leaving Money On The Table
While pricing too high can cause issues with your sale, pricing your home too low isn’t going to benefit you either. While you’ll likely find that you receive a high number of offers very quickly, you’ll end up leaving some of your home equity on the table – equity that you could easily have realized as buyers would have been willing to pay the difference.
Remember – the best way to ensure your home is priced competitively is to have it valued by a real estate professional. Contact your local real estate agent when you’re ready to sell your home and they’ll be able to determine the true value of your home.
