Existing Home Sales Rebound in December

U.S. existing-home sales rebound in December

http://on.wsj.com/1QppQZy

Median Home Prices of Existing Homes in 4th Quarter Rise 6% from a Year Earlier

Dear Clients and Affiliate Partners:
Here is something from WSJ.com that might interest you:
Median price of existing homes in 4th quarter: $208,700, up 6% from a year earlier
http://on.wsj.com/1Iwo59O
The market is beginning to heat up ever since we entered the buying season last month!
With interest rates on the rise, don’t miss out on securing a property you can afford.
A good statistic I share with people is that as mortgage rates rise, purchasing power falls. More specifically, a 1% rise in interest rates on a 30yr fixed mortgage cuts buyer purchasing power by 10.75%.
If you’re looking to buy a home, get pre-approved for a loan BEFORE you go house hunting, so you are prepared to submit a solid, well received purchase offer.
Call me to get pre-approved today!
Regards,

Tom

2015 Home Affordability Still a Challenge for Buyers

Southern California appears to be one of the most challenging markets for home affordability.
http://www.wsj.com/articles/housing-market-enters-2015-on-a-steady-note-1420137294

Fannie 3% Down is Back!

Good news! The Fannie Mae 97% LTV is back! The 3% down payment is once again available for both purchase and limited cash-out refinances. Fannie Mae is providing multiple options to help serve creditworthy borrowers. Program Will allow LTV ratios greater than 95% up to amaximum of 97% for: ·         Purchase transactions if at least one borrower is a first-time home buyer and pre-purchase home-buyer education is completed ·         Limited cash-out refinances (non-MCM) of existing Fannie Mae loans. ·         All loans must be fixed-rate and secured by a one-unit principal residence. Manufactured housing is not permitted. ·         Fannie Mae will now allow reserves to come from gifts.  Call me Today to Learn More About This Exciting Program Sure to Boost 1st Time Home Buyer Purchases and Home Refinances in 2015!

California Leads U.S. Growth of +$1M Luxury Home Sales

Redfin, the large national real estate firm based in Seattle, is reporting that, while sales of homes costing over $1 million is still outpacing the rest of the market, the source of these sales is changing.  The company says that the luxury housing market, which was the first segment to recover after the housing crisis, continues strong, driven by a record high stock market, low interest rates and by foreign investors.

Sales of home costing more than $1 million increased by 9 percent in the third quarter of 2014 even as all home sales were down 1.2 percent when compared to the third quarter of 2013.  However Redfin says that overseas investment in these homes is beginning to flag and those markets which have benefitted the most from foreign investors are seeing "a steady and dramatic decline in sales of million-dollar-plus homes."  Those cities where there is less reliance on investors, both foreign and domestic, are still seeing a steady increase in high-end sales. 

Looking forward the company says that luxury home sales will continue strong for the rest of this year and the next but, at just under 3 percent of the market, those sales will have a limited impact on overall market growth.  "This sector of the market, particularly in the places that have typically had strong foreign interest, will need traditional (and well-heeled) buyers to offset disappearing demand from international investors."

Internet Lender Hit with $20 Million Plus in Penalties

WHY MORTGAGE INTEREST RATES ARE RISING

The bond and mortgage markets started this morning where they left off yesterday, interest rates are increasing and mortgage rates going higher. Yesterday’s surprise 4.0% Q2 GDP, Q1 revised from -2.9% to -2.1% and the Q2 deflator at 2.0% took all of the bullishness out of the rate markets. Geopolitical situations are also being pushed back as increasing belief that Ukraine/Russia and Israel/Hamas are more regional and won’t escalate to wider perspectives. The US stock market, the European stock markets are under pressure and likely will sell off more as economic reports increase the outlook that the Fed will increase interest rates sooner than expected. In the policy statement yesterday the Fed said it will keep the FF rate at current levels for an extended period. The Fed concerns that the employment gains show significant under utilization in the labor markets (low paying and part time jobs) went nowhere in the minds of traders in stocks and bonds. Under the headlines there is more dissension within the FOMC on when to increase the FF rate; we get the sense that more members are leaning toward an earlier increase than what was stated in the policy statement. That is what markets are also thinking.