Loan Apps Rise as Rates Dip Below 5 Percent

Average mortgage rates dipped below 5 percent last week, driving mortgage application volume up 11.3 percent to 723.4 from 649.7 the previous week on an adjusted basis, according to the Mortgage Bankers Association weekly survey. On an unadjusted basis, the index increased 11.6 percent compared with the previous week and was up 5.7 percent compared with the same week a year ago.The increase was reflected in the government purchase index (mostly FHA), which rose 10.4 percent. The overall purchase... Read More

Pricing Disagreement: What Is a Home Worth?

Homebuyers and the real estate professionals they choose to sell their homes don’t always agree over what the property is worth, and many buyers think both of them are setting prices too high, according to a survey by HomeGain.com Inc. The survey found that 63 percent of homeowners believe the price their practitioner recommended is too low. About 45 percent of sellers think prices should be 20 percent to 30 percent higher, while 14 percent believe their home should be priced a whopping 30... Read More

Fed Prepares for Commercial Market Bailout

Real estate experts agree that the best hope for avoiding a commercial real estate crisis similar to the residential one is another bailout from the federal government. Last week, Federal Reserve Chair Ben Bernanke suggested at least $1 trillion in credit would be forthcoming in order to avoid a “looming crisis.” Analysts say that while delinquencies are few, office vacancy rates are nearing record levels. This leaves banks holding $1.72 trillion in outstanding commercial loans and many of them... Read More

Experts Weigh Rent-to-Buy Pros and Cons

The weak housing market has prompted some home sellers to offer rent-to-buy agreements to prospective buyers. These buyers pay an up-front fee of approximately 1 percent of the sales price for the option to buy, and all the payments they make during the rental period go toward the principal. Most rent-to-buy agreements last for two to five years; and if the occupants decide not to go through with the purchase, they lose the option fee plus the rental payments. Those that agree to purchase the home... Read More

Is Now the Best Time to Invest in Apartments?

Industry experts say consider investing in a duplex, triplex or small apartment building. “Smaller units are typically older … and during a downturn people prefer lower-quality properties with fewer amenities,” says Hessam Nadji, managing director of research at real estate brokerage Marcus & Millichap. Nadji also pointed out that young people are the most likely tenants in these older units and that segment of the population is growing. The baby boom peaked in the 1950s and... Read More

6 Tips for Home Owners Who Turn Into Landlords

Home owners who decide to rent out their properties have to stop thinking of themselves as home owners and instead consider themselves as running a small business, experts say. Thinking like a businessperson means focusing on the monthly cost of maintenance, mortgage and taxes, as well as being aware of landlord-tenant regulations and avoiding liabilities. Here are key issues to consider: Set a fair rent. Setting the right price will make it more likely that a landlord will be able to keep the place... Read More

Green Building: Housing’s Few Bright Spots

Energy-efficient home manufacturing could be one of the few industries to grow and thrive in the present economy, according to the U.S. Green Building Council (USGBC). Consumers are looking for dwellings that are both affordable and sustainable, while manufacturers are eager to reduce production costs as well as reliance on foreign energy. In Turner Construction Company’s survey of real estate developers, agents, brokers, builders, and other industry experts, 83 percent said they would be “extremely”... Read More

How the Stimulus Can Help Your Business

Time will tell if the newly passed economic stimulus package and the components related to the real estate industry will have a positive impact on the housing market in the country, says Wendy Forsythe, vice president of broker services at the Better Homes and Gardens Real Estate franchise network. She believes that real estate professionals across the U.S. can affect the ultimate outcome of this government initiative. Forsythe offers three ways that real estate salespeople can take advantage of... Read More

What’s Next for Fannie, Freddie?

What’s to become of Fannie Mae and Freddie Mac, which are bleeding red ink as home owner defaults continue to increase? The rising losses will force the government to decide whether to keep putting money into the firms to keep them operating or divide them into smaller businesses and remove government support. Daniel Mudd, a former Marine, was Fannie Mae’s CEO before the government fired him and put James Lockhart, director of the Federal Housing Finance Agency, in charge. He likened the situation... Read More

30-Year Rates Inch Up This Week

Freddie Mac reports an increase in the 30-year fixed mortgage rate to 5.07 percent for the week ended Feb. 26. Rates rose slightly, from 5.04 percent the prior week. “Mortgage rates were little changed this week amid mixed data reports of a slowing economy,” said Frank Nothaft, Freddie Mac vice president and chief economist. He said that lower house prices and affordable mortgage rates have yet to spur housing demand. For instance, house prices declined by 8.7 percent for the 12 months... Read More

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