The market has changed significantly over the last 12 months forcing everyone in the buying, selling, and rental markets to re-evaluate what a good deal is, what a property is worth, what the rental value is, and how to price a property to sell quickly.
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30 Year FixedRate Falls To AT A 37 Year Low
30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
30-year fixed-rate mortgage: Averaged 5.19 percent with an average 0.7 point for the week ending December 18, 2008, down from last week when it averaged 5.47 percent. Last year at this time, the 30-year FRM averaged 6.14 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
15-year fixed-rate mortgage: Averaged 4.92 percent with an average 0.7 point, down from last week when it averaged 5.20 percent. A year ago at this time, the 15-year FRM averaged 5.79 percent. The 15-year FRM has not been lower since April 1, 2004, when it averaged 4.84 percent.
Five-year Treasury-indexed adjustable-rate mortgages ARMs: Averaged 5.60 percent this week, with an average 0.6 point, down from last week when it averaged 5.82 percent. A year ago, the 5-year ARM averaged 5.90 percent.
One-year Treasury-indexed ARMs: Averaged 4.94 percent this week with an average 0.5 point, down from last week when it averaged 5.09 percent. At this time last year, the 1-year ARM averaged 5.51 percent.
Commentary from the Freddie Mac Site:
“Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“The decline was supported by the Federal Reserve announcement on December 16th, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant.”
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Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.
http://yourpropertypath.blogspot.com/
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Long-Term Rates Follow As Short-Term Rates Rise
30-year fixed-rate mortgage: Averaged 5.47 percent with an average 0.7 point for the week ending December 11, 2008, down from last week when it averaged 5.53 percent. Last year at this time, the 30-year FRM averaged 6.11 percent. The 30-year FRM has not been lower since March 25, 2004, when it averaged 5.40 percent.
15-year fixed-rate mortgage: Averaged 5.20 percent with an average 0.7 point, down from last week when it averaged 5.33 percent. A year ago at this time, the 15-year FRM averaged 5.78 percent. The 15-year FRM has not been since February 7, 2008, when it averaged 5.15 percent.
Five-year Treasury-indexed ARMs: Averaged 5.82 percent this week, with an average 0.6 point, up from last week when it averaged 5.77 percent. A year ago, the 5-year ARM averaged 5.89 percent.
One-year Treasury-indexed ARMs: Averaged 5.09 percent this week with an average 0.4 point, up from last week when it averaged 5.02 percent. At this time last year, the 1-year ARM averaged 5.50 percent
From the Freddie Mac Site
Following the release of the November employment report, which showed the largest monthly decline in jobs since December 1974, bond yields fell slightly this week allowing fixed-rate mortgage rates room to ease back a little further,” said Frank Nothaft, Freddie Mac vice president and chief economist. The housing market still hangs in the balance, however,” continued Nothaft. On a year-over-year basis, after rising in both August and September, pending existing home sales fell 1.0 percent in October, based on figures from the National Association of Realtors®. Meanwhile, conventional mortgage applications for home purchases over the week ending December 5th were up 2.0 percent from four weeks prior, but were still 51 percent below the same period last year, according to the Mortgage Bankers Association.
I am a property manager and we recently chose to use an online rent collection company. I found this to be such an exceptional service, I chose to represent the company. Their property management software makes rent collection easy and saved us time and money. Tenants pay the bulk of the fees and we found most were happy to sign on. I have developed some tenant marketing materials for the program. If anyone has interest in learning more about how to limit the drudgery of rent collection and lower operating costs, please reach me here…
Thanks for Reading
Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.
http://yourpropertypath.blogspot.com/
Trade talk for the San Francisco real estate industry. Your source for property management tips, policies and market trends.
Your Property Path Amazon Store
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Finally, A Bail Out for Industry and For People
1. The Federal Reserve announces that it would spend 600 billion to buy mortgage backed securities issued by Fannie and Freddie, pumping some liquidity into the market. Interest rates dropped 1% on the news. This is not a trial balloon but a fact, a program to be put in place. The net result will provide some much needed cash for new loans and workouts for the two quasi public agencies.
2. Treasury is also considering buying 600 billion of mortgage backed securities from Freddie. Fannie and Ginnie Mae, causing a huge influx of mortgage re-fi’s. Treasury is looking to use the buying power of Freddie and Fannie to push mortgage rates down to 4.5% by soaking up supply and providing a sense of trust because there are buyers of mortgage loans again.
3. The FDIC has a loss sharing plan which aims to reduce monthly payments to 31 percent of the borrower’s income. This proposal is designed to promote wider adoption of such a systematic loan modification program:
a. by paying servicers $1,000 to cover expenses for each loan modified according to the required standards; and
b. sharing up to 50% of losses incurred if a modified loan should subsequently re-default This proposal focuses on the fact that lenders have been slow to renegotiate or work out problem loans.
FDIC thinks this plan can help the estimated 1.4 million non-GSE mortgage loans that were 60 days or more past due as of June 2008, plus an additional 3 million non-GSE loans that are projected to become delinquent by year-end 2009.
Reports indicate that we will be looking at 2.25 million foreclosures this year, up from just over a million last year and no doubt, getting worse. This is just not sustainable if we are to look at keeping industry afloat and start putting people back to work. Finally….we are looking at helping people as well as industry. Although this amounts to a direct bailout of home owners and the nationalization of our capital markets, it may be the only way of saving us from a complete collapse.
Thanks for Reading
Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.
http://yourpropertypath.blogspot.com/
Trade talk for the San Francisco real estate industry. Your source for property management tips, policies and market trends.
Your Property Path Amazon Store
http://astore.amazon.com/yourpropertypath20-20
super deals on agent open house tools We hand picked Amazon for the tools you need
This real estate article was posted from Your Property Path
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The Urban Land Institute surveyed real estate professionals looking for the best commercial markets for investment in this economic climate. The top five markets according to the professionals surveyed were:
1. Seattle
2. San Francisco
3.Washington DC
4.New York
5.L.A.
The common qualities shared by all five cities were diversified by industry, did participate in the residential market boom and therefore did not have a housing glut and are able to attract international investments. There is no indication that commercial real estate precedes a healthy residential market, but it seems that a good business climate would certainly make that more likely. Note: If you look at the case Shiller index, you see San Francisco down more than 29%…..I think that means that the index is tracking homes rather than commercial property and apartment buildings. The Urban Land Institute shows San Francisco to be the #2 market for multi family and I can tell you we are probably the best rental market in the country to date. Apartment buildings didnt participate in the building boom and so there is no glut.
I am a property manager and we recently chose to use an online rent collection company. I found this to be such an exceptional service, I decided to represent the company. Their property management software makes rent collection easy and saved us time and money. Tenants pay the bulk of the fees and we found most were happy to sign on. I have developed some tenant marketing materials for the program. If anyone has interest in learning more about how to limit the drudgery of rent collection and lower operating costs, please reach me here…
Thanks for Reading and happy holidays!
Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.
http://yourpropertypath.blogspot.com/
Trade talk for the San Francisco real estate industry. Your source for property management tips, policies and market trends.
Your Property Path Amazon Store
http://astore.amazon.com/yourpropertypath20-20
super deals on agent open house tools We hand picked Amazon for the tools you need
This real estate article was posted from Your Property Path
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Case Shiller Index Tracks Actual Prices of Home Sales
This is an important index to follow because it tracks actual the actual sales price of a property each time it sells. Its a real indication of whether a price for the same property has gone up or down year over year. S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, shows continued broad based declines in the prices of existing single family homes across the United States, a trend that prevailed since 2007.
. The Case Shiller index shows San Francisco off a whopping 29.5%, indicating that perhaps its weighted towards home rather than apartment or commercial property.
1-Year Change (%)
Atlanta - 9.5%
Boston - 5.7% Charlotte - 3.5%
Chicago -10.1%
Cleveland -6.4% Dallas -2.7%
Denver -5.4%
Detroit -18.6%
Las Vegas -31.3%
Los Angeles -27.6%
Miami -28.4%
Minneapolis -14.4%
New York -7.3%
Phoenix -31.9%
Portland -8.6%
San Diego -26.3%
San Francisco -29.5%
Seattle -9.8%
Tampa -18.5%
Washington -17.2%
** All markets are down
I am a property manager and we recently chose to use an online rent collection company. I found this to be such an exceptional service, I chose to represent the company. Their property management software makes rent collection easy and saved us time and money. Tenants pay the bulk of the fees and we found most were happy to sign on. I have developed some tenant marketing materials for the program. If anyone has interest in learning more about how to limit the drudgery of rent collection and lower operating costs, please reach me here…
Thanks for Reading
Howard Bell
A web site of over
450 articles related to real estate focused primarily on property management.
http://yourpropertypath.blogspot.com/
Trade talk for the San Francisco real estate industry.
Your source for property management tips, policies and market trends.
Your Property Path Amazon Store
http://astore.amazon.com/yourpropertypath20-20
super deals on agent open house tools We hand picked Amazon for the tools you need
This real estate article was posted from Your Property Path
Popularity: 4% [?]