Real Estate Update
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Rates Under Five Percent
In Freddie Mac's results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage averaged 4.78 percent for the week ending November 25, 2009 - down from the previous week when it averaged 4.83 percent.
Last year at this time, the 30-year fixed-rate mortgage averaged 5.97 percent.
"Long-term mortgage rates eased for the fourth consecutive week to record levels," said Frank
Source: Realty Times
U.S. averages as of November 25, 2009:
30 yr. fixed: 4.78%
15 yr. fixed: 4.29%
1 yr. adj: 4.35%
Nothaft, Freddie Mac vice president and chief economist." Interest rates for 30-year fixed mortgage loans tied an all-time record low.
Green Renovations To
Gain Market Share
Green market research firm SBI Energy forecasts that in the next five years, the market for energy-efficient home renovation products will grow 15 percent, 50 percent faster than the renovations market as a whole.
According to the report, the energy-efficient market will reach $35 billion and claim 15 percent of all home renovation dollars spent.
"The growth will come as a result of the tax credits, new incentives, and the reality that more agencies and utilities are promoting the fact that adding improved energy efficiency is the most cost-effective way to decrease home utility bills," says Norman Deschamps, author and SBI Energy analyst.
How to Tell Mortgage
Rates Are Rising
What are some of the signs that mortgage rates, now at historic lows, are about to go up?
# One way is to monitor two important factors in our economy, they are: Declining unemployment:
The unemployment rate is sitting just under 10 percent. If lots of Americans go back to work, an increase in interest rates is likely to follow.
# Rising discount rate:
The rate the Fed charges banks that borrow from it directly stands at 0.5 percent. If it rises or the spread between it and the Federal Funds rate widens, then mortgage rate increases won’t be far behind.
Real Estate Market Is Active
Sales of single family homes, townhouses, condos and co-ops surged by a little over 10 percent in October, and were 24 percent above where they were a year before. Closed transactions rose by nearly 12 percent in the Northeast, 14. 4 percent in the Midwest, 12.7 percent in the South and by 1.6 percent in the West.
Why the big jump in activity? The number one reason, according to Dr. Lawrence Yun, chief economist for the National Association of Realtors, was that first time buyers rushed to wrap up deals before the scheduled November 30th original expiration date of the $8,000 federal tax credit
That program has now been extended through next June 30th.
Another factor: The near record-breaking affordability of housing - as measured by the prices of homes in local markets around the U.S. compared with household incomes and monthly payments at current mortgage interest rates.
The affordability equation is now at its most favorable point for buyers since 1970. Interest rates for 30-year fixed loans have been hovering under five percent . House prices meanwhile have remained well below where they were a year ago. In some areas, low prices - especially for entry-level houses - are triggering multiple-bid situations - something that hasn't been seen since the heady days of the housing boom in 2004 and 2005.
Century 21 Beggins Enterprises
6542 U. S. Hwy. 41 N.
Apollo Beach, FL 33572