October Home Sales Rose 12 Percent

October home sales, tabulated when a contract closes, rose 12 percent from the same month last year before adjusting for seasonal variations. Total home sales in 2010 were 4.9 million, compared with a peak of 7.07 million in 2005 during the boom. The number of previously owned homes on the market dropped to 3.33 million last month, the fewest since January 2010. At the current pace, it would take 8 months to sell those houses, down from 8.3 months at the end of September. A range of seven months to eight months supply is consistent with stable home prices. Distressed home sales, comprised of foreclosures and short sales in which the lender agrees to a transaction for less than the balance of the mortgage, accounted for 28 percent of the total in October. Home sales increased even as 33 percent of the group’s members reported having problems with contracts or cancelations in October, jumping from 18 percent the prior month. The surge last month was not easily explained, citing changes to conforming loan limits in September and consistent frustration over the loan-approval process. Existing single-family home sales increased 1.6 percent to an annual rate of 4.38 million.

The National Mortgage Rates Fall Below 4 Percent

The national mortgage rates fall below 4 percent. Rates on the 30-year fixed loan fell to 3.99 percent, down from 4 percent last week. Mortgage rates track the yield on 10-year Treasury note, which fell this week as investors shifted money into safer Treasurys amid fears Europe’s debt crisis could worsen. Low rates have down little to boost home sales. Refinancing activity jumped more than 12 percent last week from the previous week, to the highest level in a month. But refinancing is down 13.5 percent from a year ago and the four-week moving average for purchase and refinancing mortgage applications is down slightly, suggesting the low rates are failing to entice many Americans. High unemployment and declining wages have made it harder for many people to qualify for loans. Many Americans don’t want to sink money into a home that could lose value over the next three to four years. And most homeowners who can afford to refinance already have. The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5 percent. The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates.

Home Prices Increased In Some Major US Cities

Home prices increased in August in 10 of the 20 major cities tracked. That marked the fifth straight month that at least half of the cities in the survey showed monthly gains. There is a sign that prices are stabilizing in some hard-hit portions of the country. The biggest price increases were in Washington, Chicago and Detroit. The greatest declines were in Atlanta and Los Angeles. Some areas may have bottomed out and could be turning around. Cities in the Midwest like Chicago, Detroit and Minneapolis have shown some strength since May. In Detroit is a small rebound in the housing market. Home prices have risen 2.7 percent since August 2010, making it one of only two cities to show a year-over-year gain in that time. The other was Washington. The gains are relatively small compared to how far prices have fallen. In Minneapolis and Chicago, fewer homes are being put up for sale, leading to higher prices and better sales figures. That’s likely due to fewer foreclosures in those cities. September’s drop in homes for sale in the Twin Cities was the largest decline in inventory in more than seven years, according to the Minneapolis Area Association of Realtors. Prices are certain to fall again once banks resume millions of foreclosures. They have been delayed because of a yearlong government investigation into mortgage lending practices. The bulk of the decline in housing is behind us and indeed, one might even say that housing is more likely to improve from here. But given the overwhelming level of inventory that remains on the market, further price declines seem almost assured to help clear the market. Home prices have stabilized in coastal cities over the past six months, helped by a rush of spring buyers and investors. But this year, home prices in many cities, including Cleveland, Detroit, Las Vegas, Phoenix and Tampa, have reached their lowest points since the housing bust more than four years ago. The large number of unsold homes and foreclosures are sending prices lower and hurting sales. Sales of previously occupied home sales are on pace to match last year’s dismal figures. Sales of new homes fell to a six-month low in August and this year could be the worst since the government began keeping records a half century ago. Many people are reluctant to purchase a home more than two years after the recession officially ended. Even the lowest mortgage rates in history haven’t been enough to lift sales. Some can’t qualify for loans or meet higher down payment requirements. Many with good credit and stable jobs are holding off because they fear that home prices will keep falling. Click To See More Mortgage Info

Mortgage Rates Hit Six-Decade Low

Mortgage rates have hit their lowest levels in 60 years, but scores of struggling consumers aren’t in a position to take advantage of it. The average rate on a 30-year fixed mortgage fell to 4.12 percent this week – the lowest level since mortgage buyer Freddie Mac began tracking rates back in 1971. The last time rates were cheaper was in 1951, when most long-term home loans lasted just 20 or 25 years. The average on the 15-year fixed loan, a popular refinancing option, dropped to 3.33 percent this week. That’s also an all-time low, according to most economists. Most people who want to buy or refinance don’t qualify. A mortgage broker in La., said he’s turning away roughly 50 percent of customers seeking home loans and refinancing. Banks are insisting that applicants have higher credit scores and make 20 percent down payments. Click To See More Mortgages Info

Fixed Mortgages Hit 2011 Record Low – Could Mortgage Rates Go Lower?

Mortgage rates hit an eight-month low and are within striking distance of the lowest rates since World War II. Freddie Mac issued its weekly rates report. It told us that 30-year fixed-rate mortgages (FRMs) averaged 4.39%, down from 4.55% the week before. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.18%. That product was down from 3.25% a week earlier. But, unfortunately, the good news with mortgage loan rates may not offer much practical help. People still need to qualify to refinance, and that requires income. Click To See More Mortgages Info

Mortgage Free Living In 320 Square Feet Home

This family stopped working so hard, sold or gave away all of their extra stuff and began looking for the perfect tiny home. One day, they noticed an ad for a local Arkansas company custom building tiny homes for a price that could mean an end to house payments. Six weeks and $15,000 later they had their own fully paid-off dwelling. They live in a 320-square foot home that is exactly what they need. Click To See More Mortgages Info

Do Not Buy Real Estate In March 2011 Buy In 2012 And After

A second wave of adjustable loans will push real estate lower through the end of 2011. Invest all your money right now.This is the best time to buy Foreclosures. Foreclosures are at an all time high. Prices are crashed. Interest rates are at a 50 year low. Prices are likely to stay low until March 2012 when loans quit resetting. Then prices will only get stronger. Click To See More Real Estates Info