Ending the reporting week on Thursday, Freddie Mac survey of residential mortgage brokers are reporting residential mortgage rates are at 4.79% for a thirty year fixed interest mortgage.  The fifteen year rate is at 4.20%.  The thirty year mortgage requires an average of 0.8 point down and the fifteen requires 0.7.  Positive trends are continuing to emerge including a decline in the number of delinquencies.  Righting wrongs committed by Countrywide,  Bank of America is settling federal charges with a payment of $108 million to homeowners who were charged outrageous fees when they faced financial troubles and impending foreclosure.  The bad behavior was actually the result of Countrywide activities before BoA bought them.

The Federal Reserve Bank of New York has released a report in which the Fed attempts to determine the true homeownership in the United States.  The numbers that have been in the media generated by the Census Bureau on a quarterly basis indicate we are currently at 67.2%. When the Fed study took out homeowners in the process of losing their home and unlikely to recover, the gap was actually five percentage points lower.  Breaking the numbers down a little bit demonstrates that the largest gap is seen in areas of the country with the highest foreclosures and declines in home value.  The obvious are Las Vegas, Phoenix, Detroit and Miami.  The Rocky Mountain area demonstrated a decline of less than 2.5% with an effective homeownership rate of approximately 60%.  The Rocky Mountain and New England regions are consistently demonstrating stability and a great foundation for long term recovery.

Looking at the local stats in the Pikes Peak region, there are currently 5,551 active listings in the PPMLS. One year ago, there were just over 5,000 active listings.   Year to date, there have been 3,439 sales (3,023 one year ago).  The median sales price is $194,450, a modest improvement over the number same time last year of $189,130.  With the closure of the Homebuyer Tax Credit, we are expecting to see a modest decline in the numbers as they relate to the number of transactions.  The areas most likely to see a decline in activity will be to the southeast and east portions of the region and under a price point of $250,000.  We are hoping to be pleasantly surprised and see the numbers continue in seasonally appropriate upward trend.  The numbers overall look pretty solid; be sure to check out next week’s blog in which we will start breaking down the numbers by area. Ending May, there is certainly enough data to begin studying the 2010 recovery.   During this recession, we have been reminded that specific areas, even neighborhoods, are dramatically impacted by new construction, price point and accessibility to larger employers.  We will be looking closely at Black Forest, Tri-Lakes, Broadmoor and western areas of the PPMLS.

Freddie Mac's survey of mortgage lenders indicates a weekly average rate for a thirty (30) year fixed rate mortgage came in at 5.06% basically remains flat at 5.07%.  The fifteen year fixed rate remains flat at 4.39%).  To obtain the rates, an average of 0.7 point down was required to get the rate.  The West region required a slightly higher amount down.   In 2009, the average 30 year mortgage rate was 5%.  This trend is bearing out so far in 2010 as well.

Fannie Mae is busy implementing some new rules which can help struggling homeowners facing the possibility of foreclosure.  At present, if a homeowner is foreclosed upon, it will be four years before they can be eligible for another home loan backed by Fannie Mae.  Interest rates are typically lower and terms more favorable.  The new rules will reduce this time to two years if the owners voluntarily transfer ownership through "died in lieu" or short sale.  When ready to apply for the new mortgage in two years...

If you are considering any home remodeling, be sure to check out the latest Federal Tax Credits.  Some of the tax credits are for up to 30% for such things as windows, insulation, roofs, HVAC and even biomass stoves.  Homeowners can be eligible if the improvement is for an existing home and is your principal residence.  Installation fees typically are not eligible for the tax credit.  The IRS has issued guidelines to begin preparation for filing 2010 taxes worth grabbing now to begin planning for later in the year. 

Once again the troubled housing market remains the center of media attention as Goldman-Sachs faces federal charges related to its dealings around hedge funds.  The charges are bringing to light a segment of the financial markets that many average people didn't know existed.  In the world of hedge funds, the basic premise is to bet the something will or will not happen; not that dissimilar to the futures market wherein investors speculate future oil, corn or even cattle pricing.  What is disturbing many is ...

Besides mortgage activity, the big news was the release of the latest Case Shiller numbers.  This week saw the release several economic reports.  All showed moderate improvement but the improvement needed is so great that the news still seemed bleak!  Unemployment is barely below 10%; this is a measure of those filing jobless claims.  A little discussed number is the one that captures true unemployment.  This takes into account those who either never had eligibility or have lost eligibility and are underemployed. Underemployment means a person who desires full-time employment but can only find part-time employment.  True unemployment is just over 17%.  This is a little discussed number because it is high and scary!  Once this number begins to decline, the housing market can sustain true stabilization and ultimately growth. 

The latest Case Shiller report includes data through March 31 measuring activity in both a 10 and 20 city index.  The 10 city home price index fell by 0.4% and the 20 city saw 0.7% decline; the Pikes Peak MLS saw very similar trends in January.  The Pikes Peak region data indicates an increase in February and March; PPMLS data closely mirrors national trends so we expect the next Case Shiller report to show slight improvement.  The two cities seeing greatest improvement are both in California which has sustained a long term freefall in pricing.  The best news is that the rate of decline in a year over year analysis continues marked slowing.  Denver demonstrated a year over year increase of 2.6%.  Month to month saw a decline but this is easily explained by slowed seasonality in the market and weather.  We like to focus on the year over numbers since they provide a broader picture.  The trouble areas are Charlotte, N.C., Las Vegas, Seattle and Tampa; all are experiencing the lowest prices and greatest declines since the financial crisis began.  Notable improvements include San Francisco(up 15.2%) and Minneapolis (up 12.9%) over their trough.  Good news for both cities which were in freefall for a long time. 

Weekly Wrap Up March 26, 2010

If you are a faithful reader of Springsblog.com, you should be also receiving a monthly update from one of our new neighborhood sites.  These monthly reports are great.  The latest report for the Black Forest area indicates that there are 51 active listings and 6 sales in the last thirty days with a median sale price of $427,750.  In the 80923 area of Powers and Dublin, Ridgeview at Stetson Hills neighborhood has 155 current listings and 59 homes have sold in the last thirty days.  The median sold price is $230,000.  The Woodmen Hills area has seen 56 sales in the last thirty days at a median price of $268,200.  There are 246 listings in the Peyton area.  The range of homes that have sold is $193,000 to $445,870.

The report is personalized: it charts market activity-- current up-to-the-minute --with homes in your area of interest, including such data as sold homes, properties for sale, inventory counts and even days-on-market. There are many 'intangibles' behind this data, such as whether homes were fixed up or not, special amenities and the like. Visit one of our neighborhood sites and sign up for monthly reports with no obligation or hassle.

This week’s wrap up looks at the current state of mortgage interest rates, activity in the local Pikes Peak area as well as national and international real estate news.

This week, 30 year rates closed the week at 4.96% which is comparable to last week’s average of 4.95%.  The 15 year rate closed the week at 4.33% also comparable to last week’s average of 4.32%.  Fannie Mae surveys mortgage lenders across the country on a weekly basis to determine the average mortgage rates and the points required to get that rate.    The Mortgage Banker’s Association reports that the seasonally adjusted year over year FHFA House Price Index changed very little; only down 1.2%.

This property tax season and Colorado fares pretty well compared to some states around the country.  While home prices have fallen in the double digit percentages, the National League of Cities reports that 25% of major cities have raised property taxes to combat declining sales tax revenue.  Dozens of states and counties across the U.S. have seen voters turn down requests to increase taxes.  There are a few options for disgruntled homeowners receiving a higher tax bill this year:

This week’s wrap up looks at the current state of mortgage interest rates, activity in the local Pikes Peak area as well as national and international real estate news.  

Each week Fannie Mae surveys lenders across the country to determine the average 15 and 30 year mortgage rates and the points required to get that rate.  This week the 30 year rate ended the week at 4.95% which is down slightly from last week.  The 15 year rate ended the week at 4.32% also slightly down from last week.   The Mortgage Banker’s Association reports that residential real estate mortgage applications are up and the percentage of those for home purchase rather than refi are on the increase; both good signs.  The Wall Street Journal compiled some great information on the refinance situation many current homeowners can’t or won’t participate in.  Record low interest rates are no match for new credit standards, decreased value which may require additional private mortgage insurance and thousands upfront in fees.  Current homeowners should take a read because it does provide some interesting information.

A recent report published by the Appraisal Institute states that Zillow isn't really all that accurate in estimating home values and is typically over estimating by 10%.   Zillow is a website launched in 2006 which maps neighborhoods and pulls data from appraisal district data, MLS, and local assessor files.  The availability of real time data plus the ability to even access the data is an underlying problem.  The proprietary Zillow program collects data from a variety of sources on home sale prices and models typical prices for a home.  The formula works fairly well in a stable market but cannot pick up nuances of micro-markets or take into account some of the recent challenges faced by markets that have vacant homes or foreclosures.  The Appraisal Institute is the national professional organization for appraisers and has closely followed Zillow in an effort to determine how close actual appraised value and the Zillow estimates come.  The report is a little heavy but an interesting read.  One of the more interesting sections of the reports discusses ...

Considering a jump into the real estate market?  Our favorite local site has video of local neighborhoods, educational tips for buyers and sellers, and cutting edge search tools.  One of the great aspects to living in Colorado is that it is pretty easy to find a house with a view of the mountains.  Sellers are interested in quantifying a view as a part of their asking price and buyers aren't sure what they would really pay for a great view.  Check out our advice on the topic.  There are some pretty consistent guidelines for consideration of view and its impact upon price.  Looking for a different way to catch up on relevant real estate topics?  Check out real estate radio sponsored by the National Association of Realtors.  The range of topics is broad and the guest speakers vary.

This week's wrap up reports that the weekly average mortgage survey is showing interests are moving in an upward trajectory closing the week at 5.05% for a 30 year fixed rate mortgage and the 15 year fixed rate mortgage is 4.4%.   Concern continues about what is the best way to stem the future risk of inflation by making money too expense while balancing premature pops of activity as demonstrated by investors.  A recent nationwide study showed that over 60% of all purchases under $225,000 are made with cash requiring no financing.  In this price bracket, individuals with cash are investors who subsequently take out a loan against their recent cash purchase.  The Federal Reserve Board announced this week that rates would remain relatively low for the foreseeable future.  As the federal purchase program slows in just a few weeks, the rates are widely expected to continue inching upward.

The American Banker's Association reports the lowest number of mortgage applications hitting a 13 year low.  Credited for the drop is  the move of 30 year interest rates above 5%; a mental roadblock for many homebuyers.  Historically, the current rates are still phenomenal!  To stay abreast of local trends and real estate activity consider visiting one of our neighborhood sites. At a neighborhood site, listings specific to that area are available and users can sign up to receive monthly reports.  Check out a sample…

In the most recent QUE (Quarterly Updates and Estimates) by Fred Crowley, Senior Economist with UCCS, all signs are showing continued stabilization of the local Colorado Springs economy.  The QUE demonstrates through the BCI or Business Conditions Index the state of the local economy and indicates future performance.  The indicators making up the BCI include single family and town home permits, new car sales, employment rate, foreclosures, ES202 employment and ES202 wages and salaries.  The QUE reports that the new construction permit activity are up through December 31, 2009; this activity is actually down 25% from three years ago.  Also, monitoring the vacancy rates in the local market ...