The Real Estate Geeks

Homebuilder Confidence Returns To Pre-Recession Levels

2012-02-16T06:19:00.001-08:00

New construction buyers , look out. The nation's home builders are predicting a strong 2012 for new home sales. It may mean higher home prices as the spring buying season approaches.

For the sixth straight month, the National Association of Homebuilders reports that homebuilder confidence is on the rise. The Housing Market Index climbed four points to 29 in February, the index's highest reading since May 2007.

The Housing Market Index is now up 8 points in 8 weeks. The last time that happened was June 2003, a month during which the U.S. economy was regaining its footing, much like this month. It's noteworthy that June 2003 marked the start of a 4-year bull run in the stock market that took equities up 54%.

The NAHB's Housing Market Index itself is actually a composite reading. It's the end-result of three separate surveys sent to home builders monthly.

The association's questions are basic :

How are market conditions for the sale of new homes today?
How are market conditions for the sale of new homes in 6 months?
How is prospective buyer foot traffic?

In February, builders reported marked improvement across all three areas. Builders report that current home sales climbed 5 points; that sales expectations for the next 6 months climbed 5 points; and that buyer foot traffic climbed 1 point.

Most notable of all of the statistics, though, is that the nation's home builders report that there are now twice as many buyers setting foot inside model units as compared to just 6 months ago.

This data is supported by the monthly New Home Sales report which shows rising sales and a shrinking new home inventory.

Because of this, today's new home buyers throughout California should expect fewer concessions from builders at the time of contract including fewer price breaks on a home and fewer free upgrades. Builders are optimistic for the future and, therefore, may be less willing to "make a deal".

This spring may mark the best time of year to buy a new home. 60 days forward, it may be too late.

With Retail Sales And Consumer Confidence Rising, Home Prices Are Expected To Follow

2012-02-15T06:24:00.001-08:00

The U.S. economy continues to show signs of a rebound.

According to the Census Bureau, Retail Sales climbed to $329 billion last month on a seasonally-adjusted basis, excluding automobiles. January's data marks the 18th time in 19 months that Retail Sales rose, a run that's increased total sales receipts by 11 percent.

This is big news because Retail Sales accounts for close to 70% of the U.S. economy.

In addition, consumer confidence is rising.

In a separate, joint report from the University of Michigan and Thompson Reuters, it was shown that consumer attitudes toward the economy and the future are improving, primarily the result of recent job gains.

The Survey of Consumers posted its highest value in 12 months.

It is not a coincidence that Retail Sales and consumer confidence both made multi-month highs -- the readings are more than loosely linked. As consumers feel more confident about the economy and their personal prospects for the future, they're more likely to spend money on goods and services, which leads to an increase in consumer spending.

For the housing market, the ramifications are two-fold.

First, from the financing side, an expanding economy is linked to rising mortgage rates. This is because Wall Street tends to chase risk in a growth economy and the bond market offers little in the way of risk. As demand for bonds drops, then, mortgage rates rise throughout California.

Second, rising consumer confidence can lead home values higher, too.

Confident consumers are more likely than fearful ones to become home buyers. They're more likely to stop renting and start buying; more likely to list their home and "move-up" to something bigger; more likely to "take the next step".

So, as more buyers enter the market at a time when the national home supply is shrinking, the supply-demand balance in housing is shifting toward the sellers. This creates price pressures and should lead to higher home valuations.

If you have plans to buy a home in 2012, the best time to buy may be now. Today's mortgage rates are low and so are the home prices -- a combination that's unlikely to last.

Fewer Jobless Claims Suggests Higher Home Prices Ahead

2012-02-14T06:20:00.001-08:00

Economists believe the strength of the 2012 housing market will be closely tied to jobs. If they're right, the housing market is ripe for a boost. It spells good news for home sellers and may mean the end of bargain-basement prices for buyers.

Since peaking in mid-2009, the number of U.S. workers filing for first-time unemployment benefits has dropped 44 percent. Over the same period of time, the U.S. economy has added more than 2 million jobs and the national Unemployment Rate is down more than 1 percentage point to 8.3%.

Employment's link to the housing market is both economic and psychological.

To make the economic link is straight-forward. A person with a job earns verifiable income and such income is required in order to be mortgage-eligible. For conventional and FHA purchase loans, for example, mortgage lenders want a home buyer's monthly income be more than double his monthly debts.

For the formerly unemployed that have since returned to work, having a full-time income makes buying homes possible. It also supports higher home valuations nationwide because home prices are based on supply-and-demand. All things equal, when the number of buyers in a market goes up, prices do, too.

The psychological connection between housing and employment is a tad more complicated, but every bit as important. It's not just out-of-work Americans that don't look for homes -- it's fearful Americans, too. People with concerns about losing a job are just as unlikely to shop for homes as people actually without a job. The same is true for people unsure of their prospects for a better-paying job, or their own upward mobility.

A recovering job market can lessen those fears and draw out buyers -- especially those who face a loss on the sale of an "underwater" home.

The Initial Jobless Claims rolling 4-week average is at its lowest level since 2008. Fewer Americans are losing jobs, and more are finding permanent placement.

It's one more reason to be optimistic for this year's housing market.

Top 10 Sunniest Cities In the United States

2012-02-13T05:46:00.001-08:00

As compared to gloomy days, do "sunny days" put you in a good mood? If you're like many people in California , the answer is "yes".

In a study of more than 1,200 people, researchers found that daily weather factors such as temperature, precipitation and length of day can alter a person's emotional state. Of all the weather factors, however, "sunshine" can have the most profound effect.

The most likely reason is because sunshine affects people in a physiological manner.

When the human brain detects sunlight, our bodies produce serotonin, a chemical which promotes happiness and well-being. By contrast, when the brain detect darkness, our bodies produce melatonin, a chemical which promotes sleep cycles.

Sunlight -- quite literally -- leads to happiness.

Understanding the effect of sunlight on human mood, therefore, we must consider the nation's "sunniest cities" as more than just a novelty list. It may be a link to personal well-being, too.

From the National Climactic Data Center, these are the Top 10 Sunniest Cities in the United States :

Yuma, AZ : Sunny on 90% of all days
Redding, CA : Sunny on 88% of all days
Las Vegas, NV : Sunny on 85% of all days
Phoenix, AZ : Sunny on 85% of all days
Tucson, AZ : Sunny on 85% of all days
El Paso, TX : Sunny on 84% of all days
Fresno, CA : Sunny on 79% of all days
Reno, NV : Sunny on 79% of all days
Flagstaff, AZ : Sunny on 78% of all days
Sacramento, CA : Sunny on 78% of all days

The sunshine rankings of other noteworthy cities include Key West, FL (#12 with 76% sunshine); Denver, CO (#30 with 68% sunshine); and Seattle, WA (#165 with 43% sunshine).

At the bottom of the list is Juneau. Just 30 percent of the Alaskan capital city's days are sunny.

The complete Sunshine Rankings as listed by Metropolitan Area is available on the NCDC website.

Revamped HARP : Unlimited Loan-to-Value And Same Great Rates

2012-02-10T06:05:00.001-08:00

The government's new, revamped HARP program is 6 weeks from release. Homeowners in California and nationwide are gearing up to refinance.

HARP is an acronym. It stands for Home Affordable Refinance Program. HARP is the government's loan product for "underwater homeowners". HARP makes current mortgage rates available to households which would otherwise be unable to refinance because the home lacks equity.

This is a big deal -- especially today. Mortgage rates are at an all-time low and millions of U.S. homeowners have been unable to take advantage. HARP aims to change that.

HARP originally launched in 2009. Its first iteration failed to reach a meaningful percentage of U.S. homeowners, however, because costs were high and loans were high-risk. With its re-release, the government has removed the hurdles to HARP, putting refinancing within reach for millions of U.S. households.

To qualify for HARP, homeowners must first meet 3 qualifying criteria.

First, their current mortgage must be backed Fannie Mae or Freddie Mac. FHA- and VA-backed loans are HARP-ineligible, as are jumbo loans and loans backed by portfolio lenders.

To check if your loan if Fannie Mae-backed, click here.
To check if your loan if Freddie Mac-backed, click here.

Second, the existing mortgage must have been securitized by Fannie Mae or Freddie Mac prior on, or before, May 31, 2009. If you bought your home or refinanced it after that date, you are HARP-ineligible.

There are no exceptions to this rule.

And, third, the existing mortgage must be accompanied by a strong repayment history. Mortgage payment must have been paid on-time for the last 6 months, at least, and there may not be more than one 30-day late payment in the last 12 months.

If these 3 qualifiers are met, HARP applicants should find the approval process straight-forward :

Fixed rate mortgages allow unlimited loan-to-value
The standard 7-year "waiting period" after a foreclosure is waived in full
Except in rare cases, home appraisals aren't required

Furthermore, HARP mortgage rates are expected to be on par with non-HARP rates, meaning that HARP homeowners will get the same rates and pay the same fees as everyone else. There's no "penalty" for using HARP.

The revamped HARP is expected to be generally available beginning Monday, March 19, 2012.

To get a head-start on HARP, check with your loan officer for the complete list of HARP eligibility requirements.

Quick Tips : Boost Your Credit Score For Better Mortgage Rates

2012-02-09T06:03:00.001-08:00

Credit scores play a huge role in today's mortgage market -- larger than at any time in recent history. Blame it on the high default rates of the last half-decade. Lenders are reserving their lowest rates for the customers most likely to make on-time repayments.

Mortgage rates are at an all-time low in California. However, the low rates you see advertised on TV and online are only available to the home buyers and would-be refinancers whose credit scores are pristine. Having a high credit score is often the difference between getting "the best rates" from your lender, and getting something worse.

The first part of improving your credit score is understanding how it works. In this 5-minute piece from NBC's The Today Show, you'll learn the basics :

Why you shouldn't close a credit card after you pay off a large debt
What is the maximize balance to leave on your credit cards, relative to your credit limit
What types of credit checks harm your credit scores, and which ones don't

You'll also learn how to shop for a mortgage with multiple lenders without having your credit score "dinged", as well as several proven methods to raise your credit score quickly.

In the end, good credit scores are the result of paying bills on time and staying with your means. Those with the best scores, get the best rates.

Federal Tax Deadline Extended To April 17, 2012

2012-02-08T06:07:00.001-08:00

Traditionally, federal income taxes must be filed with the IRS on, or before, April 15 each year. The date has become such a part of U.S. culture that many people simply call it "Tax Day".

This year, however, for the 3rd time in 7 years, your federal income taxes will not be due April 15. Instead, because of a combination of the calendar, a holiday, and tax law, Tax Day 2012 is delayed until Tuesday, April 17.

You will have two extra days to prepare and file your federal income taxes this year.

Here's why.

First, April 15 is a Sunday and all federal offices are closed on Sundays. This means that that taxes can't be filed on April 15, as regularly scheduled. Rather, the tax due date should roll over to the first available business day -- Monday.

However, Monday, April 16 is Emancipation Day, a holiday in the District of Columbia since 2005.

Emancipation Day honors President Abraham Lincoln's April 16, 1862 signing of the Compensation Emancipation Act. All of Washington, D.C. is closed for the local holiday -- including the offices of the IRS. Taxes can't be due on this date because there will be nobody at the Internal Revenue Service to receive them.

Therefore, Tax Day rolls over to the next available business day, and that's Tuesday, April 17. Despite the 2-day change, as a reminder, the deadline to file a federal tax return with extension has not changed. That filing date remains October 15, 2012.

Also, note that most states have chosen to mirror the IRS' tax deadlines this year even though Emancipation Day is a Washington, D.C-specific. Be sure to check with your accountant to confirm your local filing deadline.

Lock An Instant 13% Savings On Your Monthly Mortgage Payment

2012-02-07T06:03:00.001-08:00

Falling mortgage rates make owning a home more affordable. Mortgage rates are directly tied to monthly mortgage payment so as mortgage rates drop, so does the cost of home-ownership.

It's a money-saving time to buy a home -- or to refinance one. Mortgage rates have never been this low in history.

According to Freddie Mac, last week, the average 30-year fixed rate mortgage fell to 3.87% nationwide for borrowers willing to pay an accompanying 0.8 discount points plus closing costs. 0.8 discount points is a one-time closing cost equal to 0.8 percent of your loan size, or $800 per $100,000 borrowed.

This represents an incredible value as compared to February of last year.

It was exactly one year ago that mortgage rates begin their long slide lower. On February 11, 2011, the 30-year fixed rate mortgage reached its peak for the year, reading 5.05% in Freddie Mac's nationwide survey. If you are among the many U.S. households that bought or refinanced a home around that time, you could choose to replace your current home loan with a new one and save close to 13% on your monthly mortgage payment.

13 percent saved on your mortgage is a noteworthy statistic.

Look at this 30-year fixed rate mortgage payment comparison over the last 12 months :

February 2011 : $539.88 principal + interest per $100,000 borrowed
February 2012 : $469.95 principal + interest per $100,000 borrowed

Because of falling mortgage rates, a homeowner with a $250,000 30-year fixed rate mortgage would save at least $175 per month just by refinancing into a new loan at today's mortgage rates. That's $2,100 in savings per year.

Even after accounting for discount points and closing costs, the "break-even point" on a mortgage like that can come relatively quickly.

We can't predict mortgage rates so there's no promise rates will stay like this forever. If you're planning to buy a home or refinance one, the best way to keep your monthly payments down is to lock your rate while rates are still low.

The market looks ripe for that now.

The 10 Longest Commutes In The United States

2012-02-06T05:46:00.001-08:00

According to the Census Bureau, more than 3.2 million U.S. workers spend over 3 hours commuting to and from work each day.

Commutes exceeding 90 minutes in each direction are known as "extreme commutes" in Census Bureau parlance. As compared to typical commute times nationwide, they're aptly named.

The national, average commute time is just 25.1 minutes.

For home buyers in any U.S. city, make sure to make commute times a consideration before placing an offer on a property. The length of your daily commute will make an impact on your life.

Studies shows that shorter commutes are linked to higher levels of life satisfaction. Long commutes are linked to low levels of life satisfaction.

As ranked by the Census Bureau, here are the 10 cities with the longest average commute times, where commuting is defined as the total time to arrive at work, inclusive of all modes of transportation (i.e. automobile, train, subway, foot, or other) :

New York / North New Jersey / Long Island : 34.6 minutes
Washington, DC / Arlington / Alexandria : 33.4 minutes
Poughkeepsie / Newburgh / Middletown, NY: 32.2 minutes

Bremerton / Silverdale, WA : 30.8 minutes

Chicago / Naperville / Joliet, IL : 30.7 minutes

Winchester, VA : 30.3 minutes

Atlanta / Sandy Springs / Marietta, GA 30.1 minutes

Riverside / San Bernardino / Ontario, CA : 30.0 minutes

Stockton, CA : 29.8 minutes

Baltimore / Towson, MD : 29.7 minutes
Poughkeepsie / Newburgh / Middletown, NY: 32.2 minutes
Bremerton / Silverdale, WA : 30.8 minutes
Chicago / Naperville / Joliet, IL : 30.7 minutes
Winchester, VA : 30.3 minutes
Atlanta / Sandy Springs / Marietta, GA 30.1 minutes
Riverside / San Bernardino / Ontario, CA : 30.0 minutes
Stockton, CA : 29.8 minutes
Baltimore / Towson, MD : 29.7 minutes

By contrast, the shortest commute belongs to residents of Great Falls, Montana. The average commute for the city's 58,000 residents is 14.2 minutes.

A long commute to work should not deter you from moving to a particular home or neighborhood, but your time-en-route should be a consideration. Before making an offer on a home , therefore, practice the rush hour commute from your potential new neighborhood in the morning, and back to it again that evening.

Then, imagine making the commute every day.

Banks Start To Loosen Up In Underwriting

2012-02-03T06:03:00.001-08:00

After a half-decade of tightening mortgage guidelines, banks are starting to "loosen up".

The Federal Reserve conducts a quarterly survey of its member banks and, last quarter, not a single responding bank reported having tightened its mortgage guidelines for prime borrowers.

A "prime borrower" is defined as one with a well-documented credit history, high credit scores, and a low debt-to-income ratio.

53 banks responded to the Fed's survey and none said that mortgage guidelines "tightened considerably" or "tightened somewhat" between September and December 2011; 50 said that guidelines remained "basicaly unchanged"; 3 said that guidelines "eased somewhat".

Mortgage applicants sometimes remark that the mortgage approval process can be challenging. Last quarter's Fed survey hints that looser standards are coming.

Not since before the recession have banks lowered mortgage approval standards like this and it bodes well for this year's housing market. Real estate agents report that 1 in 3 home sale contracts fail with "declined mortgage applications" as a leading cause.

Looser mortgage lending standards should mean more home loan approvals for buyers, and fewer contract cancellations. This can spur the housing market forward.

Make note, though. "Looser standards" should not be confused with "irresponsible standards". It remains more difficult to meet bank standards as compared to 5 years. Today's underwriters are more conservative with respect to household income, overall assets and credit scores.

Even as compared to one year ago:

Minimum credit score requirements are higher
Downpayment/equity requirements are larger
Maximum allowable debt-to-income ratios are lower

For buyers and refinancing households gaining approval, though, the reward is the lowest mortgage rates in a lifetime. Mortgage rates in California continue to fall, helping home affordability reach new highs.

If you're in the market to buy a new home or refinance one, your timing is excellent.

Home Affordability Threatened By Friday's Jobs Report

2012-02-02T05:59:00.001-08:00

This week, once more, we find mortgage rates are on a downward trajectory. Conforming mortgage rates have returned to near all-time lows. After Friday morning's Non-Farm Payrolls report, however, those low rates may come to an end.

It's a risky time for California home buyers and would-be refinancers to be without a locked rate.

Each month, on the first Friday, the Bureau of Labor Statistics releases its Non-Farm Payrolls report for the month prior. More commonly called the "jobs report", Non-Farm Payrolls provides a sector-by-sector employment breakdown, and the nation's Unemployment Rate.

In December 2011, the government reported 200,000 net new jobs created, and an Unemployment Rate of 8.5%.

For January 2012, economists project 135,000 net new jobs with no change in the Unemployment Rate and, depending on how accurate those predictions are proved, FHA and conforming mortgage rates are subject to change. The monthly jobs reports tends to have an out-sized influence on the direction of daily mortgage rates.

The connection between jobs and mortgage rates is fairly direct.

Job growth is a key cog in the economic growth engine and mortgage rates change daily based on short- and long-term economic expectation. As more people join the workforce, economic expectations change; the economy tends to expand, breeding optimism among investment. When this occurs, it often spurs investment in the stock market, which tends to leads mortgage rates up.

In short, in a recovering economy, when job growth is strong, all things equal, mortgage rates rise. Home affordability suffers.

So, for today's rate shoppers, Friday's job report represents a risk. The economy has added jobs over 15 straight months, a streak that's added 2.1 million people to the workforce. Although the jobs market remains weak and well off its peaks from last decade, a 15-month streak is worth watching. More jobs means more more income earned nationwide, more money spent by households, and more taxes collected by governments.

This items build a foundation for economic growth and Wall Street is watching.

If tomorrow's Non-Farm Payrolls shows more jobs created than the estimated 135,000, mortgage rates are expected to rise. If the jobs figures falls short, mortgage rates should fall.

The Non-Farm Payrolls report is released at 8:30 AM ET.

Case-Shiller Index Says Detroit And Washington DC Lead The Market

2012-02-01T06:03:00.001-08:00

Standard & Poors released its November 2011 Case-Shiller Index this week. The index measures the change in home prices from month-to-month, and year-to-year, in select U.S. cities.

According to the data, for the second straight month, home values fell in 19 of the Case-Shiller Index's 20 tracked markets. In addition, also for the second straight month, Phoenix, Arizona was the lone Case-Shiller-tracked city in which home values rose.

Overall, November's Case-Shiller Index showed a 1 percent decrease in home values between October and November 2011, and a near-4 percent decrease between November 2010 and 2011, putting home values at roughly the same levels as 8 years ago. Don't read too far into it, however.

The Case-Shiller Index, though widely-cited, remains widely-flawed.

As a buyer or seller , relying on the Case-Shiller Index for market research can lead you to improper conclusions. To understand the Case Shiller Index's methodology is to understand why.

First, the Case-Shiller Index draws its data from a very limited geography.

There are more than 3,100 municipalities nationwide. The Case-Shiller Index tracks just 20 of them. And they're not the 20 largest, either. Four of the Top 10 Most Populous U.S. Cities are excluded (Houston, Philadelphia, San Antonio, San Jose) whereas Minneapolis and Tampa are not.

Minneapolis is the 48th largest city in the United States. Tampa is #55.

Next, when Case-Shiller Index gathers its data from its 20 cities, it only includes the home sale data of single-family, detached homes. This means that sales of condominiums and multi-unit homes are specifically excluded from the index. There are some cities -- Chicago and New York, for example -- where condominium sales represent a large percentage of the overall market.

The Case-Shiller Index ignores that.

And, lastly, when the Case-Shiller Index is published, it's published on a 60-day delay. Its data is not "current", therefore, and does little to tell buyers and sellers of the country what's happening in their home markets right this minute. Instead, the Case-Shiller Index tells us how the housing market looked two months ago.

If you're active in the real estate market, either as a buyer or a seller, the Case-Shiller Index does you little good. For real-time data that actionable, speak to a real estate professional instead. It's where you'll find your best, most reliable and relevant information.

Supply Of New Homes At 6.1 Months Nationwide

2012-01-31T06:02:00.001-08:00

New Home Sales slowed into the New Year but the market for newly-built homes remains strong. For home buyers in California and nationwide, December's New Home Sales report is yet one more signal that the housing market recovery may be underway.

According to the Census Bureau, the number of new homes sold in December 2011 slipped 2 percent to 307,000 units on a seasonally-adjusted, annualized basis nationwide.

A "new home" is a home that is considered new construction; a home for which the buyer will be the first owner and tenant.

As compared to December 2010, last months' sales volume fell seven percent. It's a statistic that suggests housing market weakness. However, in looking at a different component of the New Home Sales report -- the supply of homes for sale -- we're forced to reconsider.

At the current pace of sales, every new home for sale nationwide would be "sold" in a matter of 6.1 months.

Economists believe that a 6.0-month supply defines a market in balance -- anything quicker is termed a "seller's market". Statistics like that are enough to create urgency among today's home buyers.

Unfortunately, the Census Bureau's data may be wrong.

Although December's New Home Sales report shows sales down 2 percent, the government's data was published with a ±13.2% margin of error. This means that the actual New Home Sales figure may have been as low as -15.2 percent, or as high as +11.2 percent. And, because the range of possible values includes both positive and negative numbers, the Census Bureau had no choice but to assign its December data "Zero Confidence".

It will be a few months before final revisions are made to December New Home Sales data. Until then, therefore, buyers should take cues from the market-at-large and the market-at-large hints at recovery. One example of this is homebuilders showing more confidence in their product than at any time in the last 5 years.

If your plans for 2012 call for buying new construction, therefore, consider using this lull to "make a deal". As the year progresses, the great values in housing may be gone.

5 Simple Ways To Declutter Your Home

2012-01-30T05:46:00.001-08:00

When a home is listed for sale, its "clutter" can be the difference between a rapid sale and no sale at all.

Clutter, in its strictest sense, is defined as anything untidy; or in a disorderly state. In real estate, the term is broadened to include unnecessary furniture pieces; unwieldy artwork or collections; stacks of papers and/or magazines; and anything that otherwise restricts the open flow of a home's floor plan.

In other words, clutter is anything that distracts from your home's natural footprint.

As a home seller , understanding how your home's clutter can affect a buyer is paramount to helping your home sell faster, and at a higher contract price.

First, there's the psychological angle. A potential home buyer may see clutter and think "mess". Few people want to buy a house they find messy or otherwise disorganized.

Second, there's the practical angle. A home that appears full of "things" also appears as if its lacking in storage space. This, too, can turn off buyers.

When you list your home for sale, here are basic tips to de-clutter your home. Some of this advice may not be practical with respect to your home, in particular, so make sure to ask your real estate agent for follow-up help.

In each room, remove photos, trophies, plaques and other personal items on display.
Remove large collections such as dolls, cars, miniature cans, and the like.
Remove worn throw rugs
Remove items from kitchen countertops, including small appliances
Remove items from bathroom countertops

You should also consider removing distinctive artwork from your walls, or replacing pieces with items that are more bland.

The over-reaching goal of de-cluttering is to depersonalize and neutralize your home so a buyer can visualize himself/herself living there. De-cluttering your home can also make your home appear larger, accentuating the features of each room.

It's no wonder that minimally-cluttered homes tend to have a wider appeal among buyers.

Pending Home Sales Index Posts Second Best Month Since April 2010

2012-01-27T06:05:00.001-08:00

After 3 consecutive months of growth, the housing market appears to have eased a bit in December.

According to the National Association of REALTORS®, December's Pending Home Sales Index slipped 4 percent from the month prior. The index measures the number of homes under contract to sell nationwide, but not yet sold.

Despite falling below its benchmark "100 value", December's Pending Home Sales Index is the reading's second-highest value since April 2010 -- the last month of last year's home buyer tax credit program.

In other words, the housing market continues to show signs of improvement, propelled by low home prices and the cheapest mortgage rates of all-time.

Freddie Mac's mortgage rate survey put the 30-year fixed rate mortgage at an average of 3.96% in December -- a 75-basis point improvement from December 2010. This helps to make homes more affordable nationwide.

On a regional basis, December's Pending Home Sales Index varied :

Northeast Region: -3.1 percent from November 2011
Midwest Region : +4.0 percent from November 2011
South Region : -2.6 percent from November 2011
West Region : -11.0 percent from November 2011

But even regional data is only so helpful. Like everything in real estate, data must be local to be relevant.

Throughout the West Region, for example, the U.S. region in which pending home sales fell the most, several states must have performed better than the regional average. And, undoubtedly, there were cities, towns, and neighborhoods that experienced marked market growth.

Unfortunately, the Pending Home Sales Index can't capture that data. Nor can it identify the markets in which home sales suffered.

For today's home buyers and sellers, therefore, it's important to understand your local market and the drivers of local activity. Reports like the Pending Home Sales Index can paint a broad picture U.S. housing but for data that matters to you, you'll want to look local.

For local real estate data, talk to an experienced real estate professional.

A Simple Explanation Of The Federal Reserve Statement (January 25, 2012)

2012-01-25T10:11:00.001-08:00

Wednesday, the Federal Reserve's Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.

The Fed Funds Rate has been near zero percent since December 2008.

For the third consecutive month, the Fed Funds Rate vote was nearly unanimous. Just one FOMC member dissented in the 9-1 vote, objecting only to the language used in the Fed's official statement.

In its press release, the Federal Reserve noted that the the U.S. economy has "expanding moderately" since its last meeting in December 2011, adding that the growth is occurring despite "slowing in global growth" -- a reference to ongoing economic uncertainty within the Eurozone.

The Federal Reserve expects moderate economic expansion through the next few quarters but is wary of "strains" from global financial markets, and these three threats to the U.S. economy :

The housing sector remains "depressed"
The unemployment rate remains "elevated"
Fixed business investment has "slowed"

On the positive side, the FOMC said that household spending is rising and inflation remains in-check. The group also believes that employment will gradually improve nationwide going forward.

The Federal Reserve neither introduced new economic stimulus, nor discontinued existing market programs.

Immediately following the FOMC's statement, mortgage markets rallied, pressuring mortgage rates to fall.

Mortgage rates remain near all-time lows and, for homeowners willing to pay points plus closing costs, conventional, 30-year fixed rate mortgages can be locked at below 4 percent. If you're in the process of buying or refinancing a home in California , it's a good time to lock a mortgage rate with your lender.

The FOMC's next scheduled meeting is a one-day event slated for March 13, 2012.

The Federal Reserve Meets Today : Mortgage Rates Expected To Move

2012-01-25T06:02:00.001-08:00

The Federal Open Market Committee adjourns from a scheduled 2-day meeting today, its first of 8 scheduled meetings this year.

The FOMC is a designated, rotating, 12-person committee within the Federal Reserve, led by Federal Reserve Chairman Ben Bernanke. Members of the FOMC sub-committee are the voting members of the Federal Reserve; the ones that ultimately determine U.S. monetary policy.

The most well-known Federal Reserve monetary policy tool is the central bank's Fed Funds Rate. The Fed Funds Rate is the prescribed interest rate at which banks borrow money from each other for a period of one night.

The Fed Funds Rate can only be changed by FOMC vote.

For home buyers and would-be refinancing households , it's important to recognize that the Fed Funds Rate is an interest rate separate and distinct from "mortgage rates". Mortgage rates are not voted upon by the Federal Reserve. Rather, mortgage rates are based on the price of mortgage-backed bonds, a security bought and sold among investors.

Historically, there is little correlation between the Fed Funds Rates and 30-year fixed rate mortgage rates throughout California. Going back 20 years, the benchmark rates have been separated by as much as 5.29% and have been as near as 0.52%.

The spread has even gone negative, most recently in 1979 and 1981 -- a period marked by high inflation.

Today, the separation between the Fed Funds Rate and the average, 30-year fixed rate mortgage rate is roughly 3.60%. Beginning at 12:30 PM ET, however, that spread is expected to change. The FOMC will make its statement to the press at that time, and will release its quarterly forecast to the markets.

As Wall Street reacts to the Fed's press release and projections, mortgage rates will move.

Investors expect the Fed to vote the Fed Funds Rate unchanged from its current range near 0.000 percent, but are unsure of how the Fed will characterize the U.S. economy. If the Fed speaks optimistically on the economy, stock markets should rise and mortgage bonds should fall, driving mortgage rates higher.

Conversely, if the Fed shows concern for future economic growth, mortgage rates should drop. Either way, today figures to be volatile one for mortgage markets.

When mortgage markets get volatile, the safe play as a rate shopper is to lock your mortgage rate immediately. There too much risk in floating.

Existing Home Sales Approach Bull Market Territory

2012-01-24T06:02:00.001-08:00

The housing market finished 2011 with strength, and is carrying measurable momentum into 2012.

According to data from the National Association of REALTORS®, on a seasonally-adjusted, annualized basis, December's Existing Home Sales climbed by 120,00 units overall from the month prior on its way to an 11-month high.

An "existing home" is a home that's been previously occupied; that cannot be considered new construction.

After 4.61 million existing homes were sold in December, there are now just 2.38 million homes for sale nationwide. The last time the national home supply was this sparse was March 2005.

At today's sales pace, the complete, national home inventory would be exhausted in 6.2 months -- the fastest pace since before the recession. A 6.0-month supply is believed to represent a market in balance.

The December Existing Home Sales report contained noteworthy foreclosure and short sale statistics, too :

Foreclosures sold at an average discount of 22% to market value
Short sales sold at an average discount of 13% to market value
Together, foreclosures and short sales accounted for 32% of all home sales

Clearly, "distressed homes" remain a large part of the U.S. housing market.

Furthermore, in its report, the real estate trade group also noted that one-third of homes under contract to sell nationwide succumbed to contract failure last month. That's up from 9% one year ago.

Contract failure occurs for a multitude of reasons, most notably homes appraising for less than the purchase price; the buyer's failure to achieve a mortgage approval; and, insurmountable home inspection issues. December's high failure rate underscores the importance of getting pre-approved as a buyer, and of buying homes in "good condition".

For today's home buyer , December's Existing Home Sales figures may be construed as a "buy signal". Home supplies are dropping and buyer demand is rising. This is the basic recipe for higher home prices ahead.

If your 2012 plans call for buying a home, consider that home values throughout California are expected to rise as the year progresses. The best values of the year may be the ones secured this winter.

When Should I Change My Home's Air Filters?

2012-01-23T05:47:00.001-08:00

How long has it been since you last changed your home's air filters?

Home air filters trap and remove dust and particles from the air you breathe; leaving "clean air" to circulate your home.

Clean air in your home is important because it promotes better health.

One way to keep to keep your home's air as clean as possible is to replace its used air filters at least once per quarter; or once monthly in homes with shedding pets or that otherwise "get dusty".

Changing air filters is among the easier do-it-yourself chores for a homeowner; a task that takes less than one minute. The secondary benefit of doing it is that new filters help keep your HVAC unit in tip-top shape.

Here's how to change your home's air filter :

Open the air filter compartment door/slider on your HVAC unit.
Note the size of your current filter. It's typically written on the frame.
Note the direction in which the filter is pointing. There may be an arrow on its frame.
Purchase a new filter at a hardware store. Make sure the sizes matches the size from Step 2.
Remove the old filter.
Replace old filter with the newly purchased one from Step 4. Make sure the arrow is pointing in the same direction as the original filter's arrow.
Using a marker, note the date of filter change on the side of the filter.
Close the air filter compartment door/slider.

And that's it.

When you find a filter type and style that you like, consider buying them in bulk -- it can be helpful to have extra air filters laying around the home for when you need them -- especially during season changes when you may want to replace filters more frequently.

In addition, when purchasing air filters, don't opt for the cheapest available. Often, the least expensive filters allow large particles to recirculate through the HVAC unit, and back in to your home. Choose a middle- or top-line product instead.

Your home and your health will thank you.

Behind The Housing Starts Headlines, The Story That Matters

2012-01-20T06:03:00.001-08:00

When it comes to housing data, sometimes you have to look past the headlines. December's Housing Starts data offers a terrific illustration of why.

Each month, the Census Bureau tallies Housing Starts for the month prior. A "housing start" is a home on which construction has started.

The Housing Starts report is separated by property type. There is a count for single-family homes; a count for 2-4 unit homes; and a count for buildings of 5 units or more, a category including apartments and condominiums.

In December, as reported by the government, Housing Starts fell 4 percent nationwide overall. This runs contrary to recent strength in housing and the story was quickly picked up by the press :

U.S. Housing Starts Fall More Than Forecast (BusinessWeek)
U.S. Housing Starts Fall (MarketWatch)
December Housing Starts Are Worse Than Expected (Fox Business)

Now, although these headlines are factually true, they're also are a little bit misleading.

Housing Starts did fall 4 percent last month but that was for all Housing Starts, across all three property types. Data like this is somewhat irrelevant to home buyers in California or anywhere else nationwide.

Few buyers purchase 2-4 unit homes, and almost nobody purchases an entire apartment building. Rather, it's the Housing Starts reports' "single-family" tally that matters because that's the home type that the majority of home buyers purchase.

In December, for the fourth straight month, Single-Family Housing Starts increased.

Single-family housing starts climbed 4 percent last month to 470,000 units on a seasonally-adjusted, annualized basis. This is the highest number of Single-Family Housing Starts since April 2010 -- the last month of last year's home buyer tax credit.

The Single-Family Housing Starts data is the latest in a series of data that point to a housing rebound nationwide. New Home Sales, Existing Home Sales, Pending Home Sales and Homebuilder Confidence has each posted multi-month highs and all are poised for strong gains into 2012.

If you're planning to buy a home in 2012, consider buying in between now and March rather than at some point later. Home prices -- and mortgage rates- are likely to move higher.

The Real Estate Geeks: Will Home Values Rise This Year?

2012-01-19T06:45:00.001-08:00

Will your home gain value over the next 12 months? Nobody can know for sure, of course, but should recent housing trends continue, there's concrete cause for optimism.

The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down.

Mortgage rates are down, too, and that's good news for buyers. The combination of low rates and low prices has led home affordability to an all-time high. As you'll hear in this 4-minute interview with NBC's The Today Show, carrying a mortgage costs 25% less per month as compared to just 3 years ago.

Some other notes from the interview include :

There are more buyers out looking for homes today, which leads to more sales
The housing market is expected to get gradually better, month-by-month, in 2012
Foreclosures will continue to be a big part of the housing market

With housing supplies shrinking, buyers throughout California may find their best "deals" today -- before the Spring Buying Season begins in February.

However, we can't forget that housing markets are local -- not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.

For accurate, up-to-date data on the housing market, talk with a local real estate agent.

Thanks for checking out our videos & blogs - If you or someone you know is thinking about making a move within the next 30, 60, or even 90 days please give us a call at 714-720-2555 Our time is dedicated your buying & selling needs. We are always just a call or a click away... To stay up-to-date subscribe to our site located at http:www.TheRealEstateGeeksTv.com

Do you know someone who maybe in financial trouble? Someone who may even be facing a foreclosure? Have them visit - http:www.Help4Ca.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

Home Builders See More Sales, Higher Prices Ahead

2012-01-19T06:03:00.001-08:00

Homebuilder confidence is soaring.

For the fourth straight month, the National Association of Homebuilders reports an increase in its Housing Market Index. The index climbed 4 points to 25 this month -- its second four-point gain since October.

With home sales activity increasing across all four regions, the monthly HMI has now nearly doubled in value since June 2011.

The HMI is now at a 55-month high.

The Housing Market Index itself is a composite reading; the result of three home builder surveys sent by the National Association of Homebuilders to its members monthly. Home builders report back on current single-family home sales volume; projected single-family home sales volume for the next 6 months; and current buyer "foot traffic".

The NAHB then results compiles the surveys into a single reading.

In January, home builders reported improving sales conditions across all three categories :

Current Single-Family Sales : 25 (+3 from December)
Projected Single-Family Sales : 29 (+3 from December)
Buyer Foot Traffic : 21 (+3 from December)

The Housing Market Index corroborates recent U.S. government data that suggests housing is mending in California. Both Housing Starts and New Home Sales have out-performed expectations of late, it's been shown, and the stock of new homes for sale nationwide is dwindling.

All of this, of course, is happening as demand from buyers heats up. Foot traffic through builder homes is higher than it's been in more than 3 years, say the builders -- a time period that includes the duration of the 2010 home buyer tax credit.

It's no surprise, therefore, that builders expect a strong 2012.

Jobs data is improving, mortgage rates remain low, and housing momentum is building. For home buyers , however, it may spell higher home prices ahead. Big demand and small supply creates scarcity and scarcity correlates to rising prices.

If you're shopping new homes, the best "deal" may be the one you find today.

The Real Estate Geeks: Fed Minutes Show An Improving U.S. Economy Threatened By The Eurozone

2012-01-19T05:36:00.001-08:00

The Federal Reserve has released the minutes from its most recent Federal Open Market Committee meeting. The Fed Minutes are a detailed meeting recap; the companion piece to the more brief, more well-known press release.

As a comparison, the minutes of the last FOMC meeting contained 60 paragraphs and 7,027 words. The post-meeting press release was just 5 paragraphs and 382 words.

December's Fed Minutes shows Fed members with a positive, cautious, take on the economy.

Recent data suggests that the U.S. economy is expanding, the Fed said, but "strains" in global financial markets pose "significant risks" to the downside. This tell us that the Fed believes its economy-stimulating programs are working, but that officials remained concerned by events in the Eurozone.

The U.S. economy could be impacted by fallout.

Other meeting consensus included :

On growth : The economy is expanding, despite slowing in "global economic growth"
On housing : Data suggests the "depressed" market "could be improving"
On inflation : Prices are stable, and remain within tolerance levels

The Fed's analysis was of little surprise to Wall Street, and going forward, Fed Chairman Ben Bernanke wants to keep it that way. The Fed Minutes contained a passage regarding market communication, and how the Fed will be more pro-active about it in the future.

With the release of its minutes, in a section called "Market Policy Communications", the Federal Reserve showed its plans to release 4 times annually its economic forecasts, and plans for the Fed Funds Rate. This signals in a shift in Federal Reserve transparency.

The Federal Reserve will begin including the forecast in its economic projections beginning after its next policy meeting, January 24-25, 2012.

Mortgage rates in California were little changed after the release of the Fed Minutes.

Do you know someone who maybe in financial trouble? Someone who may even be facing a foreclosure? Have them visit - http:www.Help4Ca.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

Foreclosure Filings Fall To 49-Month Low

2012-01-18T06:01:00.001-08:00

Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.

In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.

The drop does not appear to be seasonal, either.

Last month's foreclosure filings were down 20 percent from December 2010 with "foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011's annual foreclosure rate was the lowest in 4 years.

One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona -- four states typically associated with high rates of foreclosures -- each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.

In fact, among the country's top 10 states for foreclosure activity, nine showed an annual foreclosure filing reduction.

Only Delaware worsened.

It’s also noteworthy that just 4 states accounted for half of last month's total foreclosure filings.

California : 25.8 percent of all foreclosure filings
Florida : 12.0 percent of all foreclosure filings
Michigan : 6.4 percent of all foreclosure filings
Illinois : 6.2 percent of all foreclosure filings

Foreclosures are heavily concentrated, in other words. By contrast, the last 1% of activity is spread across 14 states.

As a home buyer -- first-timer or investor -- foreclosures can be a great way to find value.

According to the National Association of REALTORS®, distressed homes typically sell at "deep discounts" as compared to like, non-distressed homes. However, when you buy a foreclosure home from a bank, it's different from buying a home from a "person". Purchase contract negotiations are different and months may pass before your closing is approved.

If you're buying foreclosure, therefore, seek the help of a professional real estate agent. Real estate agents have experience working in the process-heavy world of foreclosures and can help you come out ahead.

The Real Estate Geeks: Home Affordability Set To Worsen On Thursday's Retail Sales Data

2012-01-17T06:45:00.001-08:00

Consumer spending continues to rise nationwide, fueled by jobs growth and a rosier outlook for the U.S. economy. Unfortunately for mortgage rate shoppers |*STATE in % STATE**|, it may also lead to higher mortgage rates later this week.

Thursday morning, the Census Bureau will release its U.S. Retail Sales data for December. The report is expected to show an 18th consecutive monthly increase, with analysts projecting sales volume higher by 0.4 percent from November.

This would be double the increase from last month, which saw a 0.2 percent increase in Retail Sales.

The Retail Sales report tallies receipts collected by retail and food-service stores nationwide. When the sum of these receipts rise, it puts pressure on mortgage rates to do the same. The connection is straight-forward.

Retail Sales are the largest part of "consumer spending" and consumer spending accounts for the majority of the U.S. economy -- up to 70 percent, by some estimates.

As the economy goes, so go mortgage rates.

Remember: today's ultra-low mortgage rates have been partially fueled by weak economies -- both domestic and abroad -- going back 4 years. Stock markets have sold off as economies have faltered worldwide, leading investors to seek refuge in the relative safety of U.S.-backed mortgage bond market. The new-found demand for mortgage-backed bonds has helped drop mortgage rates to levels never seen in history.

When economic recovery is apparent, therefore, we should expect a mortgage rate reversal, and should expect for it to happen quickly. Stock markets should rise; bond markets should fall. Mortgage rates will climb. Rate shoppers will lose.

Last week's strong jobs report sparked hope for the U.S. economy. If Thursday Retail Sales data reveals similar strength, the risk in "floating" your mortgage rate may be too great. The safer play is to lock your rate today.

The Retail Sales report will be released at 8:30 AM ET.

Thanks for checking out our videos & blogs - If you or someone you know is thinking about making a move within the next 30, 60, or even 90 days please don't keep us a secret... Have them give us a call st 714-272-5369 Our time is dedicated your buying & selling needs. Call or click - We are always just a call or click away... To stay up-to-date subscribe/follow us http:www.TheRealEstateGeeksTv.com

Do you know someone who maybe in financial trouble? Someone who may even be facing foreclosure? They have options! Have them visit - http:www.Help4Ca.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

How To Clean An Exposed, Interior Brick Wall

2012-01-17T05:45:00.001-08:00

Exposed interior brick can add a nice, decorative touch to your home, but because brick is a porous material and prone to staining, it can be cumbersome to clean.

Standard household detergents alone are rarely enough to clean brick properly, so if your home features exposed interior brick, plan to use alternative cleaning methods instead.

Here is how to do it.

First, find a pair of sturdy rubber gloves to protect your hands from the harsh brick surface and from your cleaning agents. Then, with a dry dish cloth, gently wipe the entire surface of the brick wall to remove loose dirt and dust.

Next, pour a grease-cutting dish detergent into a small bucket. Do not add water to the detergent. Add a small amount of table salt instead.

Mix well.

Next, apply a thin layer of the soap-and-salt mix to the bricks using a cloth and allow the mix to sit on the bricks for 10-15 minutes. Then, with a hard-bristled scrub brush, gently scrub the brick to remove the stubborn dirt.

Lastly, dip a clean dishcloth into a warm water-filled bucket and use the dishcloth to remove the detergent mix from the wall.

Allow the wall to air dry.

Cleaning exposed interior brick is more complicated than cleaning other household surfaces but a clean brick wall can help reduce in-home health hazards and keep your brick in its best possible condition for the long-haul.

Will Home Values Rise This Year?

2012-01-13T06:01:00.001-08:00

Will your home gain value over the next 12 months? Nobody can know for sure, of course, but should recent housing trends continue, there's concrete cause for optimism.

The housing economy has suffered since 2007, knocking home values down nearly 20% nationwide. And while some areas have fared better as compared to others but, in general, home values are down.

Some other notes from the interview include :

There are more buyers out looking for homes today, which leads to more sales
The housing market is expected to get gradually better, month-by-month, in 2012
Foreclosures will continue to be a big part of the housing market

With housing supplies shrinking, buyers throughout California may find their best "deals" today -- before the Spring Buying Season begins in February.

However, we can't forget that housing markets are local -- not national. Each town and neighborhood has its own market drivers and prices where you live may have already started to climb.

For accurate, up-to-date data on the housing market, talk with a local real estate agent.

Fed Minutes Show An Improving U.S. Economy Threatened By The Eurozone

2012-01-12T06:00:00.001-08:00

As a comparison, the minutes of the last FOMC meeting contained 60 paragraphs and 7,027 words. The post-meeting press release was just 5 paragraphs and 382 words.

December's Fed Minutes shows Fed members with a positive, cautious, take on the economy.

The U.S. economy could be impacted by fallout.

Other meeting consensus included :

On growth : The economy is expanding, despite slowing in "global economic growth"
On housing : Data suggests the "depressed" market "could be improving"
On inflation : Prices are stable, and remain within tolerance levels

The Federal Reserve will begin including the forecast in its economic projections beginning after its next policy meeting, January 24-25, 2012.

Mortgage rates in California were little changed after the release of the Fed Minutes.

Home Affordability Set To Worsen On Thursday's Retail Sales Data

2012-01-11T06:04:00.001-08:00

This would be double the increase from last month, which saw a 0.2 percent increase in Retail Sales.

Retail Sales are the largest part of "consumer spending" and consumer spending accounts for the majority of the U.S. economy -- up to 70 percent, by some estimates.

As the economy goes, so go mortgage rates.

The Retail Sales report will be released at 8:30 AM ET.

The Real Estate Geeks: Lock Your Mortgage Rate : New Loan Fees Expected Within Days

2012-01-10T10:30:00.001-08:00

Starting soon, nearly all home buyers and refinancing households throughout California and nationwide will pay higher mortgage loan fees. Congress has made it law.

13 months ago, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress enacted a one-year cut to FICA payroll taxes.

FICA stands for Federal Insurance Contributions Act. Taxes collected under FICA fund such programs as Social Security and Medicare.

The stimulus plan temporarily lowered tax rates for salaried workers from 6.2% to 4.2%; and for self-employed persons from 12.4% to 10.4%. Effective January 1, 2012, "regular" tax rates were to return.

That is, until late-December 2011. In one of its last moves of the year, Congress passed a temporary, two-month extension to the payroll tax cut, extending it through February 29, 2012. The expected cost to the U.S. Treasury is $33 billion.

To recoup those costs, Congress has turned to Fannie Mae, Freddie Mac and the FHA.

Each entity has been ordered to collect news fees on each new mortgage is backs, and has been told to forward said fees to U.S. Treasury directly. There's no "workaround" allowed or forgiveness applied -- each new loan is subject to the payment.

The rules are listed on page 17 of the law's final draft, in a section unambiguously titled "Title IV -- Mortgage Fees and Premiums".

According to the law :

Fannie Mae and Freddie Mac must collect an average fee of no less than 10 basis points (0.1%) per new loan
The FHA must raise its monthly mortgage insurance premiums 10 basis points for all new loans

The expected cost to consumers is no less than $10 monthly per $100,000 borrowed. Some analysts, however, expect Fannie Mae and Freddie Mac to collect more than is minimally required. This could add an additional $30-50 to your monthly mortgage payment per $100,000 borrowed.

Therefore, if you've been shopping for a home or for mortgage rates , take advantage. Within days, lenders are expected to start collecting Payroll Tax Extension fees from mortgage applicants -- a move that will cost you money.

Lock today to avoid the big fees. Save yourself money.

Do you know someone who maybe in financial trouble? Someone who may even be facing a foreclosure? Have them visit - http:www.Help4Ca.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

Lock Your Mortgage Rate : New Loan Fees Expected Within Days

2012-01-10T06:01:00.001-08:00

Starting soon, nearly all home buyers and refinancing households throughout California and nationwide will pay higher mortgage loan fees. Congress has made it law.

13 months ago, as part of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Congress enacted a one-year cut to FICA payroll taxes.

FICA stands for Federal Insurance Contributions Act. Taxes collected under FICA fund such programs as Social Security and Medicare.

To recoup those costs, Congress has turned to Fannie Mae, Freddie Mac and the FHA.

The rules are listed on page 17 of the law's final draft, in a section unambiguously titled "Title IV -- Mortgage Fees and Premiums".

According to the law :

Fannie Mae and Freddie Mac must collect an average fee of no less than 10 basis points (0.1%) per new loan
The FHA must raise its monthly mortgage insurance premiums 10 basis points for all new loans

Lock today to avoid the big fees. Save yourself money.

Housing And Mortgage : The Experts Make Their 2012 Predictions

2012-01-09T10:59:00.001-08:00

As the new year begins, there are no shortage of stories telling us what to expect in 2012. Housing finished 2011 with momentum and mortgage rates closed at the lowest rates of all time.

Some expect those trends to continue through the first quarter and beyond. Others expect a rapid reversal.

Who's right and who's wrong? A quick look through the newspapers, websites and business television programs reveals "experts" with opposing, well-delivered arguments views. It's tough to know who to believe.

For example, here are some "on-the-record" predictions for 2012 :

Home prices will rise in 2012 (says Freddie Mac)
Home prices will fall in 2012 (says CBS News)
Mortgage rates will rise in 2012 (says American Banker)
Mortgage rates will fall in 2012 (ays the LA Times)

The issue for buyers, seller, and would-be refinancers nationwide is that it can be a challenge to separate a "prediction" from fact at times.

When an argument is made on the pages of a respected newspaper or website, or is presented on CNBC or Bloomberg by a well-dressed, well-spoken industry insider, we're inclined to believe what we read and hear.

This is human nature.

However, we must force ourselves to remember that any analysis about the future -- whether it's housing-related, mortgage-related, or something else -- are based on a combination of past events and personal opinion.

Predictions are guesses about what might come next -- nothing more.

For example, at the start of 2009, few people expected the 30-year fixed rate mortgage to stay below 6 percent, but it did. Then, at the start of 2010, few people expected the 30-year fixed rate mortgage to stay below 5 percent, but it did.

All we can know for certain about today's market is that both mortgage rates and home values are low, creating favorable home-buying conditions nationwide.

At that start of last year, few people expected mortgage rates to even reach 4 percent. Today, rates "with points" price in the 3s.

What 2012 has in store we just can't know.

New home inventory is approaching bull market territory.

According to the Census Bureau, the number of new homes sold rose 2 percent in November. On a seasonally-adjusted, annualized basis, home buyers bought 315,000 newly-built homes last month.

November's New Home Sales data marks the 4th straight month of rising sales volume, lifting the housing-market metric to a 7-month high, and adding to the housing market's recent show of strength.

Last week, we learned that Existing Home Sales also climbed in November.

The big story in the New Home Sales report, though, is the remaining new home supply nationwide.

With just 158,000 homes "on the market" and the pace of home sales hastening, the complete, national inventory of "new homes" would now be sold in just 6.0 months, a 0.2-month improvement from October. This is the quickest home sales pace in nearly 6 years for the new construction market.

It's even faster than in April 2010 -- the buyer-deadline month of last year's federal home buyer tax credit.

Home builders expect the trend to continue, too. Buyer foot traffic is on the rise and builders have a strong outlook for the next 6 months.

It's an unsettling series of developments for today's home buyers. As home supplies drop and builders gain confidence, the ability of an buyer to negotiate for price reduction and/or upgrades shrinks.

If you're a home buyer in search of new construction, therefore, consider that the best new construction "deals" of the next 12 months may be the ones you find today.

Thanks for checking out our videos & blogs - Our time is dedicated your buying & selling needs. Call or click - but contact us today For more current real estate market information just visit our website at http:www.TheRealEstateGeeksTv.com

If you or someone you know is facing foreclosure here's tons of FREE information that will be very useful - http:www.Help4Ca.com until Till Next Time

Take Care, Melissa Bayles (714) 720-2555 & "Chip" Richard Esajian (714) 272-5369 The Real Estate Geeks

Posted via email from The Real Estate Geeks

The Real Estate Geeks: New Home Sales Approach Bull Market Territory

2012-01-09T09:21:00.001-08:00