Posts Tagged ‘Interest Rates’

Lowest Interest Rate in 65 Years

December 28th, 2012 Comments off

According to Freddie Mac’s Primary Mortgage Market Survey, HousingWire reports interest rates will finish out the year at near record lows. For the week ending Dec. 27, the average 30-year fixed-rate mortgage (FRM) hit 3.35 percent, down from 3.37 percent the previous week, and well below 3.95 percent from a year ago. Frank Nothaft, Freddie Mac chief economist and V.P., says, “The 30-year fixed-rate mortgage averaged 3.66% for 2012, the lowest annual average in at least 65 years. Unchanged from last week was the 15-year FRM at 2.65 percent, but well below 3.24 percent a year ago. As MHProNews has learned, with the 30-year FRM nearly .06 points below the Jan 1, 2012 rate, a borrower could save almost $98,600 over the life of a $200,000 mortgage.

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Rise in Lumber Prices will Reflect in New Homes

December 17th, 2012 Comments off

Bloomberg tells MHProNews of all the 24 commodities tracked by Standard & Poor’s GSCI Spot Index, lumber features rose to a six-year high, having surged 37 percent this year. Following the collapse of the housing market in the U.S., a glut of wood drove prices down, but they have more than doubled since 2009. On the Chicago Mercantile Exchange today lumber futures for Jan. delivery hit $360.80 per 1,000 board feet, the highest point since April 2006, before settling at $358.20. Hakan Ekstrom, of Wood Resource International LLC in Seattle says as the U.S. economy improves, the price of homes will rise, which will offset the increased price of lumber. Noting if people believe prices will be higher next year, they should consider buying sooner rather than later. “Interest rates might not go much lower than where we are, so the earlier they can buy a house the better, because it’s not going to get much better from a buyer’s perspective,” says Ekstrom.

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Brokerage: Sales, Prices Stronger in 2013

December 17th, 2012 Comments off

Real estate brokerage Redfin of Seattle says survey results indicate there will be strong consumer demand for homes starting in early Jan., and combined with low inventory should keep prices rising. According to originationnews, the number of people looking for a new home who expect the price to rise has more than doubled since the first quarter of the year. The Q4 survey shows 71 percent of the respondents believe prices will rise in the coming 12 months as opposed to 34 percent in Q1, 2012. Almost 60 percent say now is a good time to buy because the interest rates are low, the prime motivating factor to buy. MHProNews has learned the survey showed only five percent are concerned about the fiscal cliff and the possible loss of the mortgage interest deduction.

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Is the Sky Falling on Manufactured Housing?

December 13th, 2012 Comments off

The Wall Street Journal says as interest rates remain low and the housing recovery continues to pick up, more people will be buying traditional houses instead of manufactured homes. Citing the drop in production of manufactured homes the last two months following 16 months of consecutive industry growth, and the fall in earnings of two of the biggest MHC owners nationwide in the last three months, analysts say it’s the high interest rate on MH that is causing the drop, especially compared to conventional mortgages. While they expected the climb to continue, they are far from dismayed. Sam Landy, president of MHC owner UMH Properties, Inc., while noting the “real boom in sales” is not here yet, remains confident, adding manufactured home sales are up 33 percent since 2009. Monthly rentals comprise 11 percent of UMH’s portfolio, an increase from under nine percent in 2009. As MHProNews knows, UMH owns a portfolio of 41 properties comprised of over 9,000 home sites.

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Loan Mods Rise in August

October 16th, 2012 Comments off

NationalMortgageNews reports loan modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP) rose to 76,000 in August, an increase over the 66,000 in July and 46,400 in June. Of the 59,459 proprietary loan modifications in August, Hope Now says 93 percent had fixed interest rates of five years or more. Eighty-two percent of the proprietary modifications have reduced principal and interest payments. Seventy-one percent had reductions of ten percent or more. Hope Now tells MHProNews over the last five years 5.75 million loan revisions have been completed.

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Foreclosure Notations, Mortgage Debt both Drop

August 30th, 2012 Comments off

HousingWire says, according to the Federal Reserve Bank of New York, household indebtedness fell $53 billion from Q1 to the second quarter of 2012 to $11.38 trillion, $1.3 trillion below household debt from the third quarter of 2008. Delinquency rate for mortgages in the second quarter was at 6.9 percent, while home equity lines of credit rose slightly to 4.9 percent. At the same time, mortgage debt is declining as more borrowers take advantage of lower interest rates, pushing mortgage originations to $463 billion. As MHProNews has discovered, foreclosure notations on credit reports for the second quarter of 2012 fell to 256,000, the lowest number since the same period of 2007.

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Mortgage Apps Fall, Interest Rate Rises

August 23rd, 2012 Comments off

nationalmortgagenews reports the Mortgage Bankers Association (MBA) says mortgage applications fell 7.4 percent for the week ending Aug. 17, and the refinance share dropped from 81% to 80% to its lowest level in six weeks, while average interest rates for a fixed-rate 30-year mortgage (FRM) nudged up ten basis points from the previous week to 3.86 percent. Home Affordable Refinance Applications (HARP) made up 24 percent of all refi apps. MHProNews has learned the average 15-year FRM rose three basis points to 3.15 percent.

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Housing Shortage: The Next Crisis?

August 23rd, 2012 Comments off

The Huffington Post reports Alex Charfen, CEO of the Charfen Institute and considered to be an expert on the U.S. housing market and the foreclosure crisis, says the coming housing crisis will be a housing shortage. Home sales and median sales price have both increased, while existing inventory has declined 24.4 percent, when comparing Q2 2011 to Q2 2012. Average home construction has been 1,531,900 each year between 1968 and 2008, but dropped to 647,600 between 2009 and 2011, according to the U.S. Census. The Joint Center for Housing Studies says the nation will need 1.18 million to 1.38 million housing units per year to meet the demand between now and 2020. Writes Charfen: “We will see a constrained inventory market in the immediate future. Couple this with the fact that housing is more affordable than it has ever been, and interest rates are at record lows, and the picture of an oncoming national shortage becomes much clearer.” As MHProNews has learned, due to the slowdown of the homebuilding industry in terms of supplies, suppliers, and available labor, the market could not respond to an increased demand very quickly.

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Mortgage Apps Rise, Interest Rates Fall

July 19th, 2012 Comments off

HousingWire reports mortgage applications increased 16.9 percent for the week ending July 13 over the previous week, and the Mortgage Bankers Association (MBA) says 80.1 percent of that figure was refinance applications, up from 77 percent the previous week. MBA’s Mike Fratantoni says, “Applications for HARP refinance loans accounted for 24% of refinance activity last week, in line with the HARP share for the past few weeks.” The average interest rate for a 30-year fixed rate mortgage (FRM) backed by the Federal Housing Administration (FHA) fell from 3.63% to 3.55%. The 15-year, FRM dropped from 3.15% to 3.12%.

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MH Should Assess Less than Site-Built

June 28th, 2012 Comments off

From Canandaigua, New York writing in MPNnow, Don Semifero offers percentages of differences between a site-built and a manufactured home to make his case to the Victor, NY assessor that they should be assessed at different rates. He ticks off the percentages MH owners lose: 2-3 percent for not owning the land and thereby losing upgrade value; another 2-3 percent for not having the storage of an attic or basement; five percent sales tax on MH; the difference between a mortgage and a chattel loan in payments and interest rates, ten percent; MH owner cannot get a home equity loan to upgrade residence (minus five percent), nor claim taxes on income tax return, 7-10%; and MH depreciates like automobiles. MHProNews has learned he suggests an assessment rate of 60-65% of market value.

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