FANNIE AND FREDDIE LOAN LIMITS DON'T CHANGE FOR 2013

The maximum dollar limits for conforming mortgage loans will remain unchanged for Freddie Mac and Fannie Mae in 2013. The GSEs' conservator, the Federal Housing Finance Agency (FHFA), announced on Thursday that the baseline limit that will apply to most of the country will be $417,000 for one unit properties. Differing limits, ranging as high as $625,000, will prevail in so-called "high cost" counties but in each instance will remain the same as in 2012.

Interesting Home Sales Numbers Posted for October

On Wednesday we saw some price movement during the day, but for the most part MBS prices were pretty flat on below-normal volume. We learned that New Home Sales decreased 0.3% in October, but is up 17.2% year over year. The median sales price was $237,700; the average was $278,900. The seasonally adjusted estimate of new houses for sale at the end of October was 147,000, which represents a supply of only 4.8 months at the current sales rate. The press doesn't seem to be focused on that "shadow inventory" any more.

 

What is the impact of losing the Mortgage Deduction?

With all the talk about limiting tax loopholes and simplifying our income tax system, ther eis bi-partisen support for elimination of the home interest tax credit. Few in the real estate or lending industry want the government to do away with the mortgage interest tax deduction. It is interesting to note , the deduction a) is rare in other countries, b) has a much larger perceived benefit than actual benefit. Besides, a move will probably be gradual. They'll probably go from $1 million down to $500k, making it politically acceptable. Lastly, "The Mortgage Interest Deduction is of limited value because of low rates and low house prices. A $300,000 house with a 30-year mortgage at 3.25% pays just $7,800 in mortgage interest, yet the 2012 standard deduction is $11,900 if married filing jointly. If the MID is nixed, placing your house into a corporation and having the corporation rent the home to you, allows you to continue deducting all mortgage interest." (So wrote economist Elliot F. Eisenberg - if you want to receive his free 70 word updates shoot him an e-mail at elliot@graphsandlaughs.net.)

Experts Expect Mortgage Rates Will Rise in 2013

With mortgage rates hitting record lows in 2012 it is expected in 2013 rates will inevitably rise in 2013. The Mortgage Bankers Association expects that they'll gradually increase over coming 12 months, with rates for 30-year fixed loans averaging 3.8% in Q4 of 2012, 3.9% in Q1 of 2013, and eventually climbing to 4.4% by this time next year. It is a safe bet that rates, at some point, will move higher, but the MBA has been incorrect for the last several years. For example, the MBA forecast that the average rate for 2012 would be 4.4%, and the annual average is estimated to be closer to 3.8%.

Coastal Residential Real Estate is Now a Sellers' Market

A sellers' market appears to be emerging in some areas in California. The California Association of Realtors® (C.A.R.) said Thursday that favorable home prices and record-low interest rates are making the market competitive to the point that nearly six of ten houses are receiving multiple offers. C.A.R. made the comments as it released results of its 2012 Annual Housing Market Survey.
Fifty-seven percent of home sales featured multiple offers in 2012, the highest in at least the past 12 years. Each home that received a multiple officer received an average of 4.2 compared to 3.5 offers in 2011. Lower priced homes and distressed properties -bank-owned real estate (REO) and short sales - had more multiple offers than market sales, seven out of ten compared to one-half.

http://www.mortgagenewsdaily.com/11012012_house_prices.asp

Do you think you NOW qualify (again) to buy a home after short selling your home?

It's time for families who were forced to short sale their homes two or more years ago to come back into the home buying market and forego throwing their money away on rent. Are you unsure if you qualify? Call me at 714-478-3153.
http://blogs.wsj.com/developments/2012/10/31/scared-americans-still-skipping-homeownership/?blog_id=36&post_id=21428