As rules continually change in the financing world, FHA continues to show it's merit as our new best friend. The word on the street is that you now need 10% down for a conventional loan - no small feat for a first time buyer!! There are still effective 0 down programs with FHA and their rates are better too. Buh-bye conventional, hello FHA.
Fixed Conventional
30 year - 6.125%
20 Year - 6.00%
15 Year - 5.75%
30 Year Fixed FHA/VA
FHA - 6.00%
VA - 6.00%
Friday, May 30, 2008
Tuesday, May 27, 2008
Weekly Market Activity Report
From the Minneapolis Area Association of Realtors
For the first time in ten months—and only the second time in the last two years—the number of purchase agreements (pending sales) signed for our most recent weekly activity set was slightly ahead of one year ago. There were 714 purchase agreements signed for the week ending May 17, which is 1.7 percent higher than one year ago. A hearty 27.5 percent of these sales were mediated by a financial institution as a foreclosure or short sale.Over the last three months, the number of pending sales is still down 10.3 percent compared to 2007, and the number of new listings is down 13.9 percent for the same time period. The total number of homes for sale is 700 units behind this time last year—a year-over-year fall of 2.0 percent, a gap which should only widen as sellers continue to cut back on new listings.
Access the full report
For the first time in ten months—and only the second time in the last two years—the number of purchase agreements (pending sales) signed for our most recent weekly activity set was slightly ahead of one year ago. There were 714 purchase agreements signed for the week ending May 17, which is 1.7 percent higher than one year ago. A hearty 27.5 percent of these sales were mediated by a financial institution as a foreclosure or short sale.Over the last three months, the number of pending sales is still down 10.3 percent compared to 2007, and the number of new listings is down 13.9 percent for the same time period. The total number of homes for sale is 700 units behind this time last year—a year-over-year fall of 2.0 percent, a gap which should only widen as sellers continue to cut back on new listings.
Access the full report
Monday, May 12, 2008
Weekly Market Activity Report
From the Minneapolis Area Assocation of Realtors:
In Minnesota, warmer weather typically equates to listing increases. But compared to previous years, the run-up to the 2008 summer selling season in the Twin Cities housing market has been meek. The number of new listings for the week ending May 3 was 16.6 percent behind the same time last year—the ninth consecutive week of decline relative to a year ago. Buyer activity is also slower. Over the last three months, pending sales are hovering around a 16 percent year-over-year decline.This week's edition of the MAAR Weekly Market Activity Report features updated figures for several important metrics. As the spring season begins, the Average Days on Market Until Sale decreased to 154 while the Percent of Original List Price Received at Sale increased slightly to 91.7. The Housing Affordability Index decreased to 151, due to slight seasonal increases in sales price and interest rates. Finally, the Months Supply of Inventory increased to 10.2 months; a 5- to 6-month supply rate is considered indicative of a balanced market.
Click here to see the complete report.
In Minnesota, warmer weather typically equates to listing increases. But compared to previous years, the run-up to the 2008 summer selling season in the Twin Cities housing market has been meek. The number of new listings for the week ending May 3 was 16.6 percent behind the same time last year—the ninth consecutive week of decline relative to a year ago. Buyer activity is also slower. Over the last three months, pending sales are hovering around a 16 percent year-over-year decline.This week's edition of the MAAR Weekly Market Activity Report features updated figures for several important metrics. As the spring season begins, the Average Days on Market Until Sale decreased to 154 while the Percent of Original List Price Received at Sale increased slightly to 91.7. The Housing Affordability Index decreased to 151, due to slight seasonal increases in sales price and interest rates. Finally, the Months Supply of Inventory increased to 10.2 months; a 5- to 6-month supply rate is considered indicative of a balanced market.
Click here to see the complete report.
Friday, May 9, 2008
Wahoo - Interest Rates Come Down!
Here are today's rates from Burnet Home Loans:
Conventional Fixed
30 Year - 5.875%
20 Year - 5.625%
15 Year - 5.375%
FHA/VA Fixed
FHA 30 Year - 5.625%
VA 30 Year - 5.625%
Conventional Fixed
30 Year - 5.875%
20 Year - 5.625%
15 Year - 5.375%
FHA/VA Fixed
FHA 30 Year - 5.625%
VA 30 Year - 5.625%
Tuesday, May 6, 2008
Foreclosures and "Traditional Sales" - A Tale of Two Markets
Yesterday the Minneapolis Area Association of Realtors released a new report: Foreclosures and Short Sales in the Twin Cities Housing Market to members and today that report was released to the press. The report is an attempt to tease apart what is happening in this huge sea of the Twin Cities housing market. There are definitely different streams that make up the sea - sorting them out can be tricky.
Here is my take on the key points in the report:
Lender-mediated sales (foreclosures or short-sales) are definitely making up a larger portion of the market. In the 13 county metro area lender meditated homes made up 3.5% of closed sales in first quarter (Q1) of 2006, they made up 9.3%of closed sales in Q1, 2007, and jumped to 27.6% of closed sales in Q1 2008.
The actual number of "traditional" seller new listings has fallen dramatically. New "traditional" listings are down 27.4% over the last two years. Home owners are holding onto their homes longer and new construction starts are definitely down. This decrease in ready to go "traditional" listings provides an opportunity for rehabbers as there is a decrease in supply in homes that are "move-in ready". Lender mediated homes tend to have more deferred maintenance and work than your average home buyer is ready to take on. The process of buying a lender-mediated home is also much more difficult for most first time home buyers who are likely moving out of a rental situation.
Declines in value are weighted towards lender-mediated sales. It has been widely reported that median sales prices of homes in the Twin Cities was down 10.3% from Q1 of 2007 to Q1 of 2008. When you tease the markets apart, you find that the median sales price of "traditional" homes showed a 3.9% one year decline, and a 3.5% two year drop. However, lender-mediated median sales price had a 10.4% one year decline and a 15.9% two year drop.
The number of lender-mediated listings are heavily weighted toward lower listing prices. Lender-mediated inventory makes up 51.8% of listings under $120,000 and 38.2% of listings $120,001 - $150,000. The percentage of lender-mediated inventory steadily declines as the listing price increases. Lender-mediated listings make up 10.5% of the $250,001 - $350,000 price range.
To see the report for yourself click here. I would be interested in hearing your comments!
Here is my take on the key points in the report:
Lender-mediated sales (foreclosures or short-sales) are definitely making up a larger portion of the market. In the 13 county metro area lender meditated homes made up 3.5% of closed sales in first quarter (Q1) of 2006, they made up 9.3%of closed sales in Q1, 2007, and jumped to 27.6% of closed sales in Q1 2008.
The actual number of "traditional" seller new listings has fallen dramatically. New "traditional" listings are down 27.4% over the last two years. Home owners are holding onto their homes longer and new construction starts are definitely down. This decrease in ready to go "traditional" listings provides an opportunity for rehabbers as there is a decrease in supply in homes that are "move-in ready". Lender mediated homes tend to have more deferred maintenance and work than your average home buyer is ready to take on. The process of buying a lender-mediated home is also much more difficult for most first time home buyers who are likely moving out of a rental situation.
Declines in value are weighted towards lender-mediated sales. It has been widely reported that median sales prices of homes in the Twin Cities was down 10.3% from Q1 of 2007 to Q1 of 2008. When you tease the markets apart, you find that the median sales price of "traditional" homes showed a 3.9% one year decline, and a 3.5% two year drop. However, lender-mediated median sales price had a 10.4% one year decline and a 15.9% two year drop.
The number of lender-mediated listings are heavily weighted toward lower listing prices. Lender-mediated inventory makes up 51.8% of listings under $120,000 and 38.2% of listings $120,001 - $150,000. The percentage of lender-mediated inventory steadily declines as the listing price increases. Lender-mediated listings make up 10.5% of the $250,001 - $350,000 price range.
To see the report for yourself click here. I would be interested in hearing your comments!
Monday, May 5, 2008
Weekly Market Activity Report
From the Minneapolis Area Association of Realtors:
Ring the bell, sound the alarms, shout from the mountaintops: the number of homes for sale in the Twin Cities region as of today is less than the number for sale at this point last year, a new benchmark which marks an encouraging sign that the market is in an early stage of recovery.
This is the first time since MAAR began tracking inventory figures that we have been able to show a year-over-year decline in listing supply. There are currently 32,448 residential properties for sale, a decline of 134 units from this time in 2007. With sellers still holding back on putting their homes on the market (new listings are down 11.4 percent from last year over the last three months), this downward year-over-year trend in inventory should continue into the summer.This week's edition of the MAAR Weekly Market Activity Report features a new figure for our Supply-Demand Ratio of 7.53, which means there are approximately 7.53 homes on the market for each buyer in May— up 12.9 percent from May 2007 when the figure was 6.67
Click here to see this weeks activity report from the Minneapolis Area Association of Realtors
Ring the bell, sound the alarms, shout from the mountaintops: the number of homes for sale in the Twin Cities region as of today is less than the number for sale at this point last year, a new benchmark which marks an encouraging sign that the market is in an early stage of recovery.
This is the first time since MAAR began tracking inventory figures that we have been able to show a year-over-year decline in listing supply. There are currently 32,448 residential properties for sale, a decline of 134 units from this time in 2007. With sellers still holding back on putting their homes on the market (new listings are down 11.4 percent from last year over the last three months), this downward year-over-year trend in inventory should continue into the summer.This week's edition of the MAAR Weekly Market Activity Report features a new figure for our Supply-Demand Ratio of 7.53, which means there are approximately 7.53 homes on the market for each buyer in May— up 12.9 percent from May 2007 when the figure was 6.67
Click here to see this weeks activity report from the Minneapolis Area Association of Realtors
Friday, May 2, 2008
Interest Rate Watch
After the fed 1/4 point drop mortgage rates did inch down a bit. Here are the rates from Burnet Home Loans:
Fixed Conventional
30 Year - 5.875%
20 Year - 5.75%
15 Year - 5.375%
FHA/VA Fixed
FHA 30 Year - 5.75%
VA 30 Year - 5.75%
Fixed Conventional
30 Year - 5.875%
20 Year - 5.75%
15 Year - 5.375%
FHA/VA Fixed
FHA 30 Year - 5.75%
VA 30 Year - 5.75%
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