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Posts Tagged ‘themortgagereports’

Pending Home Sales Index Inches Up in June

July 28th, 2016 Comments off

Pending_home_sales_index_thru_6_2016__themortgagereports__credit postedDailyBusinessNewsMHProNewsThe National Association of Realtors (NAR) informs MHProNews June’s Pending Home Sales Index rose slightly from May, and now is at 111, its 26th consecutive month of reading above 100, the baseline used from 2001 when the index began. Any number above 100 means that homes are going to contract faster than they did in 2001—and 2001 was a good year for U. S. housing.

According to themortgagereports, 80 percent of homes under contract close within two months, making it a definite indicator of the future.

Regionally, the Northeast saw a three percent increase from a year ago, and the Midwest index rose one percent. Both the South and the West slipped one percent from a year ago.

Loan software maker Ellie Mae said 75 percent of home purchase loan applications were approved in June, up from 60 percent two years ago. ##

(Graphic credit:themortgagereports–Pending Home Sales Index Jan. 2012-June 2016)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

First Time Home Buyers Returned in June

July 22nd, 2016 Comments off

Mortgage App   texaslendingtoday credit postedDailyBusinessNewsMHProNewsMarking the best month for existing home sales since Feb. 2007, the National Association of Realtors (NAR) reports homes sold at a seasonally-adjusted annual rate (SAAR) of 5.57 million homes in June, marking the fourth consecutive month of strong home sales.

With an increase of over one percent from May, and a three percent increase from a year ago, first-time home buyers accounted for 33 percent of the market, marking a four-year high.

Existing home supply dropped to 4.6 months, as themortgagereports tells MHProNews. Anything below six months indicates it’s a seller’s market, prompting bidding wars with buyers competing for homes. Home sellers are taking advantage of the fact that home prices have risen year-over-year for 52 consecutive months.

NAR suggests that continuing low interest rates coupled with job and wage growth are spurring people to buy. Although home prices rise, mortgage rates are dropping fast enough to make homes affordable. ##

(Image credit: texaslendingtoday)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews.

Unique Homes may be Tough to Finance

January 14th, 2016 Comments off

unique_homes__themortgagereports__creditMortgage lenders are reluctant to finance unusual residences because they are difficult to appraise, and if they should fall into foreclosure, they are tough to sell, according to themoretgagereports. The article includes a manufactured home with a couple of barns on ten acres as an unusual asset to evaluate, and that’s because determining real estate values is very much based on the value of nearby residences.

If you build a house with straw bales, old tires or cans filled with concrete, make sure there is a green something similar nearby against which it can be valued, or be prepared to get turned down for a mortgage. Lenders will look away. No problem if you pay cash.

The same may apply to log homes, but they are dependent on location and the home’s construction. Comparisons are more prevalent in northern Wisconsin or Maine where there are log cabins that have sold. Without comparables, an appraiser may reduce the value, which will increase the down payment for the buyer, as MHProNews understands.

Building a do-it-yourself log cabin kit home may be very tough to obtain mortgage approval.

Mortgages for the residential part of a mixed-use development may be obtained providing the square footage of the commercial area does not exceed 25 percent of the total square footage of the building.

Out of the ordinary homes with unusual floor plans such as the kitchen and dining room on different floors, or peculiar architecture, will likely be difficult to value, and whenever that happens, the lender will under value the home because they are to tough to sell.

Finally, any residence of less than 400 square feet cannot be called a home, and thus will not garner a mortgage. Additionally, it must be properly attached to a foundation, be taxed as real estate, and pass local building codes. ##

(Image credit:themortgagereports)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

New Home Sales Rise Sharply from Last Year

January 5th, 2016 Comments off

home buyers  viewpoint caWith favorable mortgage rates and incomes rising as stimulus, new home sales rose nine percent November year-over-year, and four percent above October, according to statistics from the Census Bureau and the Department of Housing and Urban Development (HUD), according to themortgagereports.

Nationwide mortgage rates are around four percent, and with private and government program lenders offering low down payments, now is a very good time to buy a home. Nov. 2015 saw 409,000 new homes sold at a seasonally-adjusted annual rate (SAAR). There are only 232,000 new homes left to sell across the country.

November sales were so strong that at the current pace of sales, all available homes would be sold within 5.7 months. Rule of thumb says when the supply of homes is below six months, it becomes a “sellers market,” with negotiations in their favor because of the low supply. New home supply has been below six months for 46 or the previous 48 months.

Similarly, homebuyers will have little leverage over builders, with fewer add-ons and no price breaks. Since 2012, home values nationwide have risen 25 percent. ##

(Image credit:viewpoint.ca)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Homes Selling Quicker than Six Months Ago

August 24th, 2015 Comments off

sold home  mattheafeyAccording to themortgagereports, the National Association of Realtors (NAR) says rising rents, a favorable lending environment and low mortgage rates are driving the market for homes nationwide. In January, the median time for homes to be on the market was 69 days—half the homes sold in less than 69 days, the other half took more time to sell. In July, that number dropped to 42 days, which amounts to a 40 percent reduction of time being listed with MLS.

Although median days on the market is not a foolproof housing metric, it can be instructive. However, homeowners may take risks if they perceive the economy is performing well, and jump into buying a home. But it could also mean sellers are anxious about finding a buyer, and may be willing to accept a lower than desired price, which can affect the days on the market.

The third reason for quicker home sales could be the rise in rents. In some markets, MHProNews understands a house payment may be less than monthly rent—it’s certainly true across the board in the manufactured home market—which can be an encouragement to take assume risk.

However, the current 4.8 month supply of homes for sale is said to favor sellers over buyers in negotiations, given that low supply should strengthen demand and thus increase the price. If job growth and wages increase, and the economy improves (notwithstanding the downturn in the stock market), home sales will likely rise regardless. ##

(Photo credit: mattheafey)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

 

Manufactured Home Purchases Available for Military Veterans

June 4th, 2014 Comments off

According to themortgagereports.com, Veterans Administration (VA) loans for buying a home through the Department of Veterans Affairs are often the least expensive route for homeownership for current and former U. S. military personnel. VA loans allow up to 100 percent financing with no required mortgage insurance and can be used to buy manufactured homes (MH). The program, which has helped millions of veterans and service personnel in the last 70 years, covers primary residences, not investment property or second homes. The VA does not make the loan, it only insures a portion of the loan, MHProNews has learned. The VA Guaranty gives lenders the backing to offer 100 percent LTV (loan-to-value) mortgages to qualified borrowers, but lenders have to meet certain guidelines set by the VA. Qualified borrowers can often obtain mortgage rates lower than those offered by Fannie Mae and Freddie Mac. ##

(Image credit: theblaze.com)