The department of Housing and Urban Development, HUD, is updating the stimulus package of 2009. In that economic stimulus package, there was an 8 thousand dollar tax credit allotted for first time home buyers. The intention was to offset the cost of closing a home mortgage. Unfortunately, due to the nature of the clause, people [...]
The department of Housing and Urban Development, HUD, is updating the stimulus package of 2009. In that economic stimulus package, there was an 8 thousand dollar tax credit allotted for first time home buyers. The intention was to offset the cost of closing a home mortgage. Unfortunately, due to the nature of the clause, people have been unable to access this money until they file their 2009 taxes by April 15th 2010. HUD knows people need it much quicker.
The government agency known for making home ownership possible, is still working toward that goal. They are looking for a way to allow first time home buyers access to their 8,000 dollar credit, at closing instead of next year. The Federal Housing Authority has a list of approved lenders. These aforementioned lenders will be able to loan the money as an advance to the first time home buyers. Currently there is not a timetable, but this process has already begun.
Several states have begun to develop similar plans to help first time home buyers now. This state level loan gives home buyers the ability to open up funds to spend on furnishings and other items for the new home. This money will then do exactly what it was intended to do, stimulate the economy. This will enable growth and recovery. It is only a brief matter of time before Austin will see the benefits.
For Immediate Release Contact: Corinne Russell (202) 414-6921
February 24, 2009 Stefanie Mullin (202) 414-6376
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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and financial institutions.
RECORD HOME PRICE DECLINES IN FOURTH QUARTER;
ISOLATED POCKETS [...]
For Immediate Release Contact: Corinne Russell (202) 414-6921
February 24, 2009 Stefanie Mullin (202) 414-6376###
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and financial institutions.RECORD HOME PRICE DECLINES IN FOURTH QUARTER;
ISOLATED POCKETS OF STRENGTHWASHINGTON, DC – U.S. home prices posted record declines in the fourth quarter of
2008 according to the Federal Housing Finance Agency’s House Price Index (HPI). The
FHFA seasonally-adjusted purchase-only house price index, based on data from home
sales, was 3.4 percent lower on a seasonally-adjusted basis in the fourth quarter than in
the third quarter. This decline was greater than the 2.0 percent decline in the third quarter
and the largest in the purchase-only index’s 18-year history. Over the past year,
seasonally-adjusted prices fell 8.2 percent from the fourth quarter of 2007 to the fourth
quarter of 2008.FHFA’s all-transactions House Price Index, which includes data from home sales and
appraisals for refinancings, showed significantly less weakness over the latest quarter than
the purchase-only index. The all-transactions HPI fell 0.2 percent in the latest quarter. It
was down 4.5 percent over the four-quarter period, the largest four-quarter drop in the
index, which extends back to 1975. These data reflect trends as of Dec. 31, 2008.
FHFA has also included its monthly house price index through December 2008.
Prices increased 0.1 percent from November to December on a seasonally-adjusted basis
after a downward adjustment for November and are down 10.9 percent since their April
2007 peak.“Price declines continued in the fourth quarter although not as rapidly as some had
expected,” said FHFA Director James B. Lockhart. “We are hopeful the housing initiatives
announced last week by President Obama will begin to provide much-needed stability to
the housing markets.”While the national purchase-only house price index fell 8.2 percent between the fourth
quarters of 2007 and 2008, prices of other goods and services rose 1.4 percent.
Accordingly, the inflation-adjusted price of homes fell approximately 9.6 percent over the
latest year.Significant Findings:
Purchase-only Index:
1. Prices fell over the last four quarters in 44 states and Washington, D.C.
2. Four-quarter price declines exceeded five percent in 22 states and were in excess
of 10 percent in eight states.
3. All nine Census Divisions experienced price declines in the latest quarter. Prices
were weakest in the Pacific Census Division, which experienced a 7.1 percent
seasonally-adjusted price decline in the quarter and the West South Central
Division was strongest, with a seasonally-adjusted decline of 0.9 percent.
All-transactions HPI:
4. The MSAs with the greatest appreciation over the past year were: Decatur, AL
(6.6%), Monroe, LA (6.3%), Kingsport-Bristol-Bristol, TN-VA (6.3%), Austin-Round Rock, TX (4.4%).
5. Of the 20 ranked cities with the greatest price declines over the last four quarters,
all but one (Las Vegas-Paradise, NV) was in California or Florida.
6. The MSAs with the sharpest depreciation over the year: Merced, CA (-49.5%),
Stockton, CA (-40.2%), and Modesto, CA (-37.8%).
The complete list of state appreciation rates is on pages 15 and 16.
The complete list of city (MSA) appreciation rates is on pages 30–46.Highlights/Technical Note
The quarter’s Highlights article updates an analysis that was provided in the last HPI
discussing alternative weighting systems that might be used in constructing the national
house price index. This release uses data through the fourth quarter to produce an
alternative, state-weighted national index and compares that index against the standard
Census Division weighted index. FHFA continues to study options for reweighting the
national index.Background:
FHFA’s purchase-only and all-transactions house price indexes track average house price
changes in repeat sales or refinancings of the same single-family properties. The purchaseonly
index is based on more than five million repeat sales transactions, while the alltransactions
index includes more than 36 million repeat transactions. Both indexes are
based on data obtained from Fannie Mae and Freddie Mac for mortgages originated over
the past 34 years.FHFA analyzes the combined mortgage records of Fannie Mae and Freddie Mac, which
form the nation’s largest database of conventional, conforming mortgage transactions. The
conforming loan limit for mortgages purchased since the beginning of 2006 has been
$417,000. Loan limits for mortgages originated in the latter half of 2007 through
December 31, 2008 were increased to as much as $729,750 in high-cost areas in the
continental United States. The American Recovery and Reinvestment Act, passed on Feb.
16, 2009, extended those limits for 2009 originations in places where those limits were
higher than those originally calculated for 2009.This HPI report contains four tables: 1) A ranking of the 50 States and Washington, D.C. by
House Price Appreciation; 2) Percentage Changes in House Price Appreciation by Census
Division; 3) A ranking of 292 MSAs and Metropolitan Divisions by House Price
Appreciation; and 4) A list of one-year and five-year House Price Appreciation rates for
MSAs not ranked. Note that the Office of Management and Budget (OMB) announced
three new MSAs in late 2008: Cape Girardeau-Jackson, MO-IL, Manhattan, KS, and
Mankato-North Mankato, MN. Metropolitan area index series are now available for these
cities.
So, I read this and it validated my gut feeling about the market that we are in in Austin. (You can read the full report here) Austin has been virtually immune to the housing market woes that are causing widespread panic, loss, and foreclosure. That is not to say that we haven’t felt some impact to the curent economic turmoil, but moreso that we have seen a market adjustment to the hay days of 2006-2007, but that Austin is still growing and appreciating within our 4-7% “norm”.
I have to admit that watching the local and national news has started to skew my own view of the local economy. It’s too bad that there’s not a more balanced way to get the daily news. I suppose we have to chalk it up to misery, crime, drama, etc sells. Getting back to the report, I pulled these snippets from the full report and wanted to share them.
HUD has just announced the new (old) FHA loan limits:
SFR/Condos – $288,750
2-units – $369,650
3-units – $446,800
4-units – $555,300
This essentially takes us back to last year’s loan limits!
Conventional conforming limits stay the same at $417,000.
FHA is expected to account for almost 40% of all loans originated this year. If you have [...]
HUD has just announced the new (old) FHA loan limits:
SFR/Condos – $288,750
2-units – $369,650
3-units – $446,800
4-units – $555,300
This essentially takes us back to last year’s loan limits!
Conventional conforming limits stay the same at $417,000.
FHA is expected to account for almost 40% of all loans originated this year. If you have any questions on FHA contract, guidelines, etc., just give me a call!
Marie Funston
Senior Mortgage Advisor
Cell: (512) 750-7270
Office: (512) 691-6757
Fax: (512) 343-1224
Considering the epidemic of home foreclosures, now would be a good time to step back and take honest stock of whether you are financially ready to take on this responsibility. Freddie Mac has guidelines to help you in determining your ability to purchase and maintain your own home.
First and foremost is the purchase price. [...]
Considering the epidemic of home foreclosures, now would be a good time to step back and take honest stock of whether you are financially ready to take on this responsibility. Freddie Mac has guidelines to help you in determining your ability to purchase and maintain your own home.
First and foremost is the purchase price. Chances are, unless you’re independently wealthy, you will need a mortgage. Most responsible lenders want to be sure you have a steady income enough to pay the mortgage, plus interest, and – in most cases – the escrow required for property taxes. Then, you have closing costs that will include the down payment, financing fees, title search, and any other costs you agreed to pay as part of the purchase negotiations. And this is just the beginning.
You’ll need to furnish the house, heat and/or cool it, run appliances, use water, and have enough left over to repair or maintain the various systems and parts of your home. Owning a house may entail a lifestyle change: less dining out, fewer expensive vacations, buying your groceries at the discount supermarket instead of the gourmet take-out place.
Though the costs may seem intimidating, home ownership has many long-run advantages. At the top of the list is it’s yours. You have an asset that will probably increase in value, as long as you keep up with the maintenance. Next is the savings. You often pay less on a mortgage than you would for rent and it’s entirely possible your federal income taxes will be reduced. Interest on a home mortgage and property taxes can be deducted from your yearly tax return. And, in the end, provided you’ve planned well, you own a piece of the American Dream.
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 6.03%
Last Week: 6.24%
1yr Ago: 6.14%
15-yr Fixed – Lower
This Week: 5.47%
Last Week: 5.72%
1yr Ago: 5.86%
5/1 ARM – Lower
This Week: 5.34%
Last Week: 5.43%
1yr Ago: 5.90%
Highlight of This Week’s Major Economic Reports
According to Freddie Mac, “Weak economic reports that indicated declines [...]
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 6.03%
Last Week: 6.24%
1yr Ago: 6.14%
15-yr Fixed – Lower
This Week: 5.47%
Last Week: 5.72%
1yr Ago: 5.86%
5/1 ARM – Lower
This Week: 5.34%
Last Week: 5.43%
1yr Ago: 5.90%
Highlight of This Week’s Major Economic Reports
According to Freddie Mac, “Weak economic reports that indicated declines in the job market, slowing in manufacturing, and low consumer confidence drove bond yields lower this week and mortgage rates followed. Interest rates for 30-year fixed-rate mortgages are now at the same levels as they were two weeks ago, erasing last week’s upward jump.
“Meanwhile, the housing market continues to take a toll on the rest of the economy. Residential fixed investment shaved 1.25 percentage points off economic growth in the fourth quarter of 2007. More recently, the median sales price of new homes fell 15.1 percent in January, representing the largest annual drop on record. Residential construction fell 19.7 percent over the twelve-months ending January 2008, the largest decline since March 2007.”
Moreover, as liquidity continues to be a concern in the financial markets, the Fed has announced an expansion of its Term Auction Facility, which will open up an additional $40 billion in “cheap money” to banks and lenders. This should help keep money flowing and loans going.
Finally, HUD finally announced changes to conforming and FHA loan limits, as outlined by the Economic Stimulus Package. For the Austin metro area, FHA loans can now be made for up $288,750 for single-family residences. The conforming loan limit, however, will stay put at $417,000, so there is no change to what will be classified as jumbo loans for our market.
What to Look for Next Week
Retail Sales and the Consumer Price Index will help to determine the direction of rates.
Short-Term Rate Outlook
Stable
Tools to Help Your Buyers & Sellers
Rate Protection from Coldwell Banker Mortgage can provide that win-win situation for your clients!
Whether rates go up or down, with Pre-Purchase Rate Protection, it doesn’t matter! Protect your buyers’ purchasing power by offering them the ability to cap their interest rate for up to 90 days at no cost while still offering a “float down” option to take advantage of possible rate improvements.
Call me to learn more @ (512) 691-6757
Remember all of those stories back in 2000 about people who invested their life savings in Pets.com? Or the stories about successful businessmen who gave it all up to be day traders? Well the collapse of the real estate bubble has largely lacked those same kinds of implausible anecdotes…until now.Realtors and lenders are increasingly reporting [...]
Remember all of those stories back in 2000 about people who invested their life savings in Pets.com? Or the stories about successful businessmen who gave it all up to be day traders? Well the collapse of the real estate bubble has largely lacked those same kinds of implausible anecdotes…until now.Realtors and lenders are increasingly reporting on a trend that’s a sure indication as to just how far we’ve come. It’s called “taking the inside of the house with you” and it’s what happens when disgruntled homeowners trash their foreclosed homes before abandoning them. Think of it as a reverse housewarming gift for their bank.
Pigs left to trash house: Police believe homeowner left pigs in this home without food or water, hoping they would trash the place after he was forced out by foreclosure.
How crazy is this? I was watching the debates tonight when I heard some commentary from Glenn Beck. He was talking about the mortgage crisis and mentioned these photos from his website and I couldn’t resist. As an active agent who occasionally works REOs and HUDs, I have seen some dumps before, but this takes the cake. I understand how angry, demoralized, and scared people must be when going through a foreclosure, but when people start destroying other people’s property something needs to be done. We all end up paying for the damage in the end in the form of higher interest rates or less flexible terms.
What’s the worst damage a property has sustained from people losing their home to foreclosure that you’ve ever seen?
The worst I’ve seen was a home that had all the major AND all the minor appliances removed. Holes in the walls and ceilings where said appliances used to reside. Additionally, the owners must have gotten their rebuilt their motorcycle in the living room because the carpet in the living room was covered with 10W30. I can understand that, but dripping the oil throughout the house must have taken some time because it was on everything. I wonder if that would be a potential source of fire since they always tell you never to leave oily rags lying around? Anyway, it was a damned shame.
