Realty Times – Sell Your Home With The Right Images

Realty Times – Sell Your Home With The Right Images.

 

by Phoebe Chongchua

Listing your home for sale is the start of a journey that can go smoothly, if you take some necessary steps to make your home appealing to the right audience. Of course, it can also be a lesson in frustration.

These days much of the shopping for homes, like many items, is done online. That means that images (both photos and video) are rapidly becoming popular marketing tools to entice potential buyers.

The adage is, a photo is with a thousand words and, I add, a video is priceless. Actually, though, both are worth a whole lot. In fact, they could be worth the price of your home because images sell.

Think about the commercial market. Ads on TV and in print are always selling a concept about how consumers will feel, look, and benefit from buying a particular product. When it comes to selling a home, however, some sellers aren’t as concerned with how their home is pictured and that can cause the home to stay on the market longer or, worse, generate little or no interest.

With the Internet filled with a sea of homes and sellers everywhere vying for attention from buyers, it only makes sense to make the online photos scream, “I am a must-see home. I won’t last long in this market.”

But, too often, fatal mistakes are made. Professional pictures and video aren’t taken. Instead, a point-and-shoot camera is quickly grabbed and put to work (without special lighting) and, while you can get some nice images, I think most understand that professionals use pro cameras, lights, and editing tools for a reason. This isn’t about “doctoring” photos so that they don’t tell a real picture; rather it’s about making your home look its best-just like getting dolled up for a first date.

In fact, if your professional photographer goes too far and takes too many liberties with touch-ups, you might find that potential buyers are turned off or even angry about what they see when they arrive at your home.

There have been some cases where small areas were enhanced with special lighting, lenses, and photography techniques, only to disappoint the potential buyers. The room looked much more spacious in the listing ad than it did in real life.

Making a home picture (and video) perfect is about showcasing it, preferably, with home staging completed. It’s about taking the pictures using the best light possible and showing off the way each area comes to life. Think model home photos. Often there are people in the picture or a subtle suggestion about how this room is used.

When natural light isn’t enough or available, filtered or diffused lighting is a good option. Non-professionals often make the mistake of using too harsh lighting. The picture is blown out and doesn’t give the home a warm, inviting appeal.

I realize nowadays many people have digital high-quality, single, lens reflex cameras. If that’s the case and you’re determined to shoot photos of your home, here are a few tips.

• Always use a tripod
• Use a remote to activate the shutter to avoid shake and photo blur
• Make sure you have a wide-angle lens
• Give careful consideration to your composition
• Remove clutter, cords, debris, stacks of paper. You don’t want to have to do this in a software editing program
• Take a few bracketing shots–changing the lighting a couple of exposures lighter/darker
• Be sure to shoot exteriors
• Take plenty of photos

Enjoy…these may be the best pictures to remember your home.

Published: January 13, 2012

Realty Times – Keep Your Energy Bill Low While Selling Your Home

Realty Times – Keep Your Energy Bill Low While Selling Your Home.

 

by Phoebe Chongchua

Whether you are moving into a new home, getting ready to sell yours or a vacant home, keeping energy costs down is desirable to both buyers and sellers.

Even though there are many energy-efficient options these days, there are a growing number of energy-suckers.

You might be surprised to learn just how much that beautiful water feature costs to keep it running 24/7 year-round. Depending on where you live and the wattage needed, that fountain could cost an extra $30 per month.

If your house is on the market and sitting empty, that cost (without the enjoyment of usage) can really make you feel like you’re pouring money down the drain.

Now, if you’ve read some of my other columns, I know what you are thinking. Phoebe is an advocate for water features! Yes, it’s true. I love them and I really like them placed on properties where neighborhood noise or traffic is roaring competition to a bit of silent tranquility. They can make buyers feel more relaxed and comfortable.

So, it’s not necessarily the case that you should do away with them. However, you might consider turning them off when the home isn’t being shown.

On that topic of turning things off, a conversation with the gas and electric company out here in California was enlightening.

Just turning appliances off, it seems, isn’t enough. These energy-thirsty devices continue to suckle away at the giant electric grid nipple … sucking up energy and draining your bank account. Pretty sneaky!

So here’s a tip. It goes hand in hand with other columns I’ve written about getting rid of clutter. Put away the cords and the appliances! If you are selling your home, show it off like a model home-no electrical cords. By unplugging the toaster, blender, toaster grill, juicer, hair dryer, electric toothbrush, phone chargers, and computers, (and every other charger cord you have), you will de-clutter and save money on your utility bill, says the electors company. Individually these appliances may only use up a little bit of energy while turned off, but collectively they can amount to tens of dollars each months.

I know it’s not how we live, but it sure does look nice to walk into a home with minimal appliances. You can actually see the counter tops and the floor beneath a desk, instead of an electrical nest.

This isn’t just for sellers. It’s good for all of us. While we may not put every cord away routinely, we can conserve a bit more by unplugging (from the wall) the appliance; it stops the energy bleed.

Energy-efficient appliances could actually be costing less than heating a room in the house with a 1500 watt space heater.

It’s a good idea to get your heating system checked. A buyer’s home inspection will reveal issues but if you can start the energy-saving practices ahead of time, you’ll be in good shape when buyers ask, “So, what’s the average electric bill for this place?”

Published: January 6, 2012

Use of this article without permission is a violation of federal copyright laws.

Realty Times – Falling In The Cracks

Realty Times – Falling In The Cracks.

 

by Richard Thompson

When faced with a homeowner association maintenance or repair issue, the starting point is to determine whether the HOA has the duty to maintain or repair. This may not be as simple as it sounds. While the governing documents generally define the common elements and repair responsibilities, sometimes the item in need of repair may fall into a gray area. For example, while the governing documents may state that the HOA has the duty to maintain the floor between unit levels, what happens when a unit owner requests that the HOA fix his squeaky floor? The answer depends: Is the squeak related to a structural problem or the hardwood flooring installed by the unit owner? If it’s a defect in the structure, the HOA fixes, if the flooring, it’s typically on the unit owner.

To sort this all out, it is helpful to create a matrix that can serve as a quick reference guide for determining the maintenance and repair responsibilities of the HOA versus owner. The matrix should conform to requirements of the governing documents. (For a sample Areas of Responsibility Policy, seewww.Regenesis.net)

When it comes to repair requests, the board should have a standard policy of prompt action prioritized by urgency: a broken pipe is urgent, a squeaky floor much less urgent. Sidewalks that are heaving and creating a tripping hazard require quicker action than scheduling the repainting of signs or buildings. Reaction time should fit the situation. If not urgent, repairing within a few weeks is reasonable.

The importance of prompt response was made clear by a jury verdict in the Los Angeles Superior Court in the case of Mary Jamison Moller v. The Atherton Homeowners Association. The jury found the HOA liable for $495,000 in water damage to a resident’s unit. The resident had made repeated complaints to the board in of water damage, mustiness and moistness in her unit. The board failed to act for three years, when an architect was hired to design a drain system to alleviate the problem. By then, the unit condition had grown worse, and the new drain system was not installed properly. The resident developed health problems, allegedly because mold and mildew began to grow inside the unit’s walls. Among other things, the jury found that the board was negligent and had breached its fiduciary duties. The resident was awarded damages for pain and suffering and the trial judge ordered the HOA to raise $250,000 to pay for repairs to the unit.

How soon should a board take action to make a repair? At least one court has held that an HOA must perform a repair within a “reasonable time”. What constitutes a “reasonable time” depends on the circumstances. In Lemon v. Golf Terrace Owners Association, the Supreme Court of Alabama found that the HOA acted within a reasonable time when it took over three years for a re-roofing project. The resident in that case had a serious roof leak in his unit and sued the the HOA for failing to fix it within a reasonable time. The roofs in the project were over 16 years old and defectively designed.

More and more roofs began to deteriorate and leak. The board appointed a committee to develop a plan to deal with the roof problem and an architect was hired to prepare a design. The board was constrained in its actions, the Court noted, because it was required by the governing documents to submit the new design for a vote of the owners. Once approval was obtained, the board then had to secure competitive bids from roofing contractors, one of which then had to again be submitted for owner approval.

The Court expressly acknowledged that “the delay in the construction appears to have resulted from the fact that the board governing documents for making extensive had to follow the procedure set out in the structural alterations to the roofs. The record affirmatively shows that the board took the owner’s problem seriously.” The Court then went on to document extensive efforts undertaken by the HOA to try to stop the leaks in the owner’s unit while awaiting construction of the new roof. So, as long as the board’s repair efforts are constrained by the governing documents, “reasonable time” could be months or even years.

It has long been presumed that the “business judgment rule” would usually insulate a board from liability for a business decision made in good faith, so long as the board members acted on an informed basis, were disinterested and independent, and were reasonably diligent in informing themselves of the facts. However, a dent was placed in this “shield” from liability by a California appellate court in Lamden v. La Jolla Shores Clubdominium Homeowners Association (1998). In that case, the complex experienced a major termite problem and an exterminator recommended fumigation to control it. The board decided against fumigation and decided to spot treat the infested areas. A unit owner sued alleging that the HOA should fumigate instead of spot treat. The board defended the lawsuit by stating that its conduct was in conformity with the “business judgment rule”, and the trial court agreed, holding that the board had acted in good faith and had a rational basis for the decision to reject fumigation.

On appeal, however, the trial court’s decision was reversed. The appellate court essentially held that the “business judgment rule” is not the applicable standard when reviewing maintenance and repair decisions. The court reasoned that the HOA was “for all practical purposes” the complex’s landlord, and must, therefore, exercise due care for the “tenant’s” property. The court stated that this relationship between the HOA and the unit owner required that the HOA was to exercise due care to protect the co-owner’s unit from undue damage. The court held that the board’s conduct should be scrutinized under a standard of reasonableness rather than good faith. Accordingly, boards should also consider whether their maintenance and repair decisions are reasonable and prudent, in addition to being made in good faith and represent an informed business judgment.

Like other duties, the board must take its maintenance and repair duties seriously and take prompt action when possible. Neglecting a needed repair can have deleterious consequences. To avoid a problem with funding repairs, the board should also set aside adequate reserves. If a board acts diligently, does so in good faith, while being well informed, it will significantly reduce any legal claims that it did not live up to its obligations.

Published: January 4, 2012

Use of this article without permission is a violation of federal copyright laws.

Realty Times – Keep Your Eyes On These Real Estate Markets In 2012

Realty Times – Keep Your Eyes On These Real Estate Markets In 2012.

 

by Phoebe Chongchua

Many of us have had a skeptical eye on real estate markets over the last few years. But the new year may bring new possibilities.

Trulia.com recently released its top five markets to watch in the coming year and there might be some surprises.

Topping the list are two cities in Texas, Austin and Houston. Trulia reports that these two markets are seeing steady job growth and a revival in construction which make the markets potentially promising and definitely worth watching in 2012.

According to Trulia’s chief economist, Jed Kolko, “Smart cities are hot.” What exactly does that mean?

It means that cities that can foster new and stronger job growth will benefit from seeing increased rising home prices in their market which correlates to fewer empty homes creating an overall better real estate market as well as spurring spending in associated home-furnishing industries. It also means that the areas on the top five list share common bonds. For instance, several of them are technology centers. Others are, literally, smart. The education levels are well above the national average.

Coming in at number three on the list is San Jose, California. This may seem quite ironic considering how inflated the housing market was in California–not to mention the ongoing barrage of foreclosures that continue to wreak havoc for many homeowners.

According to Trulia, California’s market is as diverse as the United States. So, while prices may steeply decline in one area of California, they may rise in another area. The inland areas experienced tremendous foreclosures but the costal regions were not as affected.

In an article on Trulia.com, the company writes, “San Jose’s perennially tight housing market makes it faster to bounce back. The San Jose market –which includes most of Silicon Valley – has rapid job growth and the lowest vacancy rate in the country.”

Head to the east coast and you’ll find the fourth market to watch next year. Boston, Massachusetts and, in particular, the Cambridge-Newton-Framingham market, which is located west of Boston will likely be positively impacted by a “strong jobs engine”. Like most of New England, this market also avoided the worst of the housing crisis.

Why this market? It seems that the Cambridge-Newton-Framingham market along with Worcester (a little further west), and the norther suburbs near Peabody in Boston, offer benefits to homeowners. They’re less crowded and expensive and offer exactly what many homeowners are looking for: “more suburban or smaller areas”.

Closing out the top five markets to watch next year is Rochester, New York. And, yes, this is surprising. The economy and many big businesses have taken a beating in New York in the past few years. However, the city makes the top five list because Trulia says prices are “stable, and the economy has weathered blow after blow and is expanding”.

So, highly educated, tech-savvy cities may steer the way out of the pot-holed and badly marred real estate markets, creating a new road map to a better and brighter housing and job market for 2012… let’s hope.

 

Published: December 30, 2011

Realty Times – Keeping New Year’s Resolutions

Realty Times – Keeping New Year’s Resolutions.

by Carla Hill

Have you made a new year’s resolution? If you’ve tried to keep up with a resolution the whole year through, you already know how difficult it can be to stick to your guns.

We can become easily distracted by day-to-day activities or simply fall victim to old habits and routines.

Making a new year’s resolution is about just that. It’s about breaking old habits and retraining or reprogramming the way you live or approach your life.

 

1. Post It: We have a way of thinking of a grand idea and then forgetting it. If you make a chart, graph, or simple journal entry detailing what you want to accomplish, you are more likely to keep at it. Hang a post-it note on your mirror or a note on the fridge as a daily reminder! 
2. Get a Buddy:
3. Keep a Journal:
4. Be Kind:
5. Set Time Specific Goals:
6. Have Consequences:Setting a new year’s resolution is an admirable task! The new year is a great time to mark a new way of thinking, being, or d

Published: December 28, 2011

Realty Times – 30-Year Fixed-Rate Mortgage Matches All-Time Record Low at 3.94 Percent

Realty Times – 30-Year Fixed-Rate Mortgage Matches All-Time Record Low at 3.94 Percent.

 

In Freddie Mac’s results of its Primary Mortgage Market Survey® (PMMS®), the average fixed mortgage rates at or near their all-time lows. The 30-year fixed matched the average all-time record low of 3.94 percent, and a new all-time record low was set for the 15-year fixed, both previously set in the October 6, 2011 Freddie Mac PMMS. The 5-year ARM also set a new all-time record low at 2.86 percent for the week.

 

• 30-year fixed-rate mortgage (FRM) averaged 3.94 percent with an average 0.8 point for the week ending December 15, 2011, down from last week when it averaged 3.99 percent. Last year at this time, the 30-year FRM averaged 4.83 percent. 
• 15-year FRM this week averaged 3.21 percent with an average 0.8 point, down from last week when it averaged 3.27 percent. A year ago at this time, the 15-year FRM averaged 4.17 percent. 
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent this week, with an average 0.6 point, down from last week when it averaged 2.93 percent. A year ago, the 5-year ARM averaged 3.77 percent. 
• 1-year Treasury-indexed ARM averaged 2.81 percent this week with an average 0.6 point, up from last week when it averaged 2.80 percent. At this time last year, the 1-year ARM averaged 3.35 percent.Quotes attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

  “Mortgage rates were at or near all-time record lows this week amid a rough environment for housing.  In its December 13th monetary policy announcement, the Federal Reserve reiterated the housing market remains depressed. Over the first nine months of 2012, households lost almost $400 billion in property values which contributed to a $1.4 trillion reduction in overall net worth. In addition, serious delinquency rates (90 or more days delinquent plus foreclosures) on mortgages increased slightly between June 30 and September 30 of the year, breaking a six-quarter consecutive decline, according to the Mortgage Bankers Association.”

Published: December 16, 2011

Realty Times – Keep Your Home Warm

Realty Times – Keep Your Home Warm.

 

by Carla Hill

Heating expenses have skyrocketed in the past few years and many homeowners are finding it hard to make ends meet while keeping toasty. Here are some simple tips you can try in order to keep warm and on budget.

First, consider your options when it comes to what method of heating you use. Gas, both natural and propane, can easily break the bank when temperatures dip.

Many homeowners are switching to energy efficient infrared heaters that can be moved from room to room as needed. These homeowners swear by these small units and note that their heating bills dropped dramatically after starting their use.

If there are multiple electric companies offering services to your area be sure to check and see who has the cheapest rates. You’d be surprised how much their charges can vary!

Next, do you have the option to burn wood? Many homes come equipped with wood-burning fireplaces and wood stoves. With the proper fans or duct-work you can heat an entire home.

If you live in a rural area and have access to trees, you may have free firewood at your disposal (after putting in a little sweat and time). Otherwise, most cities have local businesses that sell wood by the bundle or rick.

It’s not all about what heaters you use, though. Sometimes it’s about keeping cold air out and warm air in. First, check around all your windows and doors for places that need recaulked. Be sure all windows are firmly closed and if you have a drafty door, consider installing an outside storm door.

The same maintenance check goes for older homes’ insulation. Insulation can be insufficient or entirely lacking. Take a good look at your attic and decide if you need to install do a little upgrading.

There are multiple options, including those large fluffy rolls (in varying grades for varying temperatures), spray insulation, and even thin sheets that can reflect cold air out.

Insulated curtains can also be a beautiful way of keeping warm air inside your home. Some claim to reduce energy loss by as much as 40 percent.

These are just a few tips! Keeping warm can be difficult in the coldest of days this season. Take a few precautions and do research on the latest energy prices and you’re sure to stay on budget.

Published: November 29, 2011

Realty Times – Four Rules For Your Financial Future

Realty Times – Four Rules For Your Financial Future.

 

by Dirk Zeller

Most Agents begin their real estate career with the hope of gaining financial independence. They are attracted by the possibility of earning large sums of money. Even when Agents make more than a six-figure income, the vast majority have not dramatically improved their financial balance sheet. After looking at hundreds of agents’ profit and loss statements and personal spending habits, I’ve determined that real estate agents are poorly prepared for financial independence. Why should real estate agents be any different from the American population in general?

According to the Social Security Administration, statistics indicate that, out of a randomly selected one thousand people from age twenty-five to age sixty-five:

• 190 would have died – 19%
• 150 would have incomes over $30,000 – 15%
• 660 would have incomes less than $30,000 – 66%

Let’s look at these numbers. There are more people who have deceased than are earning something even close to a decent quality of life. Of the people still alive, 66% exist on less than $30,000 per year. My question is which group do you want to be in? Which group are you heading for based on your financial plan, investment choices, and savings plan? These are the top three reasons people fail in their finances:

• They never create a financial plan.
• They make poor investment choices.
• They put off starting a savings plan.

Let me share with you a few simple rules that will ensure that you don’t join the 66% group. I have used these rules with hundreds of agents to transform their financial picture in a short period of time.

Rule #1 – Track your expenses, both business and personal

You must know where your money is going. Separate your business expenses from your personal expenses. Establish a business checking account and pay all business bills through it. Too many agents co-mingle their business commission checks and business bills with personal and household expenses. It is more difficult to control your money when you can’t track it. Enter all of your expenses and revenue in an accounting software program. I think the easiest is Quicken. Quicken will allow you to accurately track your costs to run the business, then you can run a monthly profit and loss statement to see where you are spending your money. The money you earn in real estate can come in bunches. It can become very easy to spend that large commission check that’s burning a hole in your pocket.

When we have money, a want looks like a need because we have the ability to buy it. We begin to rationalize our wants into needs. For most of us, a want is something that our neighbor already owns, so it becomes a need.

Rule #2 – Adjust your lifestyle

Spending less than you earn makes up 90% of financial planning. The premise involves saving money and making sacrifices. The ability to pay now, in the form of adjusting your lifestyle and saving the difference, will allow you to play later. To play later, you will need more than $30,000 per year. Thomas Stanley, who wrote the book The Millionaire Next Door, summed up how the vast majority accumulated their millions: “They lived well below their means.” Living beyond our means is a national epidemic. Consumer credit card debt in the United States is in excess of $528 billion. Roughly two-thirds of Americans who have credit cards do not pay off their monthly balance. We are clearly living beyond our means. Take a close look at your monthly obligations and evaluate where you are spending your money.

Rule #3 – Aggressively reduce your debt

There is an old Proverb that speaks of a borrower being a servant to the lender. The weight and pressure of debt can be crippling. I have seen this happen to Agents for years. I have even seen it manifested in my own life. I have not always made the wisest choices with my money. Fortunately, I have made more wise choices than foolish ones.

If you have credit card debts, make a decision to pay them off. Start with the highest interest rate credit card first. Decide on a monthly amount that you can commit to start reducing your debt. If you stretch, you will be able to find a few hundred dollars per month to pay towards your debt. Most credit card companies require you to pay 2% of the balance owed monthly. Let’s look at that practice. Let’s say you have a debt of $2,705 with an interest rate of 18.38%. Your 2% toward the outstanding balance would take you twenty-seven years and two months to pay off. You would pay $11,047 of total interest. How do you feel about eating out more often now? If you increased your payment to 8% or to $216.40 per month, it would take two years and one month to pay it off. You would pay $94.00 in interest. You need to accelerate your payments to reduce your debt. You must adopt a cash mentality. This cash mentality will allow you to charge only what you have funds to pay for.

Rule #4 – Create a savings plan now

The biggest enemy in financial planning is procrastination. People wait too long to start saving. The truth is becoming a millionaire is not very difficult. The power of compounding interest will take care of your needs. According to Investors Business Daily, a twenty-year-old person only needs to invest $1,014 per year, or $2.78 per day, with an annual return of 11% to have $1 million saved by the age of sixty-five. Look at the daily number of $2.78. Who couldn’t save that amount per day, even at the age of twenty? Even someone working for minimum wage could do that with ease. My mentor, Jim Rohn, used to say, “What is easy to do is also easy not to do”. It’s easy to save the $2.78, but it’s also easy to buy a latte every day at Starbucks instead of saving. That’s all we are talking about here – choosing financial independence planning rather than the latte.

We need to create a system to automatically remove the money when we receive it. We need to transform ourselves into savers. Savers pay themselves first. It’s amazing how little you miss money that never comes into your possession. We are not a nation of savers, although we really need to be. On average, Americans save less than 5% of their disposable income.

The secret to saving is writing the check to savings first. Do it before paying other bills and obligations. Savings is a habit to be forged. Here is the formula I used on each of my commission checks for many years:

• 20% went to a tax account
• 10% went to a retirement savings account
• 10% went to a business savings account

These percentages ensured that my taxes were always current and my retirement account was always fully funded.

Published: November 25, 2011

Realty Times – U.S. Won’t be Nation of Renters

Realty Times – U.S. Won’t be Nation of Renters.

 

by Carla Hill

According to the National Association of Realtors®, (NAR) the U.S. will not become a nation of renters.

Currently, over 65 percent of Americans are homeowners, a rate that has held since the 1960′s. It’s no wonder why most Americans seek out a home of their own.

Homeownership has both financial and social benefits. According to the most recent data from the Federal Reserve Board, a homeowner’s net worth is 45.9 times that of a renter’s.

“We knew that homeowners, on average, accumulate more wealth than renters,” said Ken Johnson, editor, Journal of Housing Research at Florida International University. Johnson spoke at the session and conducted the analysis with Eli Beracha. “These findings indicate that homeownership is a self-imposed savings plan. Not everyone should own a home, but from a financial perspective, people who are planning to stay in a property over the long term can benefit from buying.”

This is no wonder why. Despite recent declines in home prices, historically prices do rise over the long-term. This means an owner is paying towards an asset. They are building equity. A renter, on the other hand, is paying for a living space for that month. It is not money invested.

Homeownership is also at a generational high when it comes to afforadability. Recent studies show all 50 states are at 30-year record levels of affordability, based on mortgage-to-income ratios. Couple that with historically low interest rates and there are deals to be had.

Many buyers are still uncertain about entering the market, though. Unemployment and rampant media reminders of an ailing economy create fear and reserve.

Regardless of the ups or downs of the economy, however, social benefits of homeownership remain. Realty Times has reported on these benefits for years, knowing that buyers don’t buy simply because it’s the right financial time. They buy to provide stability and security for growing families.

In the NAR study, “Measuring the Benefits of Homeowning: Effects on Children,” there were significant findings that homeownership has a strong positive effect on educational achievement. Children are more likely to graduate, teenage girls are less likely to experience teenage pregnancy, and children of homeowners are more likely to be financially reponsibly adults.

The study says, “Homeowners are required to take on a greater responsibility such as home maintenance and acquiring the financial skills to handle mortgage payments. These life management skills may get transferred to their children.”

Additionally, higher levels of homeownership have been shown to reduce crime rates. “Homeowners have a lot more to lose financially than do renters. Property crimes directly result in financial losses to the victim. Furthermore, violent non-property crimes can impact the property values of the whole neighborhood. Therefore, homeowners have more incentive to deter crime by forming and implementing voluntary crime prevention programs.” (NAR)

“These findings are no surprise to Realtors®,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “We, like the nation’s 75 million homeowners and many other who aspire to one day own a home, know homeownership is an investment in the future of our families, communities, and nation. That is why we will continue to fight for public policies that promote responsible, sustainable homeownership; we believe that anyone who is able and willing to assume the responsibilities of owning a home should have the opportunity to pursue that dream.”

Published: November 15, 2011

Realty Times – 30-Year Fixed-Rate Mortgage Averages 3.99 Percent

Realty Times – 30-Year Fixed-Rate Mortgage Averages 3.99 Percent.

 

MCLEAN, Va., – Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates changing little from the previous week amid a mix of economic data reports as the 30-year fixed-rate mortgage averaged 3.99 percent, dropping below 4.00 percent for the second time this year. The 30-year fixed averaged 3.94 percent in the October 6, 2011 survey.

30-year fixed-rate mortgage (FRM) averaged 3.99 percent with an average 0.7 point for the week ending November 10, 2011, down from last week when it averaged 4.00 percent. Last year at this time, the 30-year FRM averaged 4.17 percent.

15-year FRM this week averaged 3.30 percent with an average 0.8 point, down from last week when it averaged 3.31 percent. A year ago at this time, the 15-year FRM averaged 3.57 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.98 percent this week, with an average 0.6 point, up from last week when it averaged 2.96 percent. A year ago, the 5-year ARM averaged 3.25 percent.

1-year Treasury-indexed ARM averaged 2.95 percent this week with an average 0.6 point, up from last week when it averaged 2.88 percent. At this time last year, the 1-year ARM averaged 3.26 percent.

Frank Nothaft, vice president and chief economist at Freddie Mac, reports, “Fixed mortgage rates were little changed this week amid a mix of economic data reports. The economy added 80,000 net jobs in October, below the market consensus forecast, but employment gains over the prior two months were revised up by 102,000 and the unemployment rate fell to 9.0 percent, the lowest in six months. Factory orders improved in September, yet the expansion in the service industry slowed in October.”

“Soft house prices and low mortgage rates have kept home-buyer affordability historically high, according to the National Association of Realtors® (NAR). In the third quarter, 74 percent of the NAR’s metropolitan areas exhibited annual house price declines, compared to 72 percent in the second quarter. In addition, 30-year fixed mortgage rates averaged 4.3 percent in the third quarter as opposed to 4.7 percent in the second. These factors helped raise September’s NAR Housing Affordability Index to the third highest reading on record which dates back to 1971.”

Published: November 11, 2011