Archive for May, 2012

Mortgage Rates Dip to New Record Lows

Mortgage Rates Dip to New Record Lows

 Mortgage rates moved into record low territory again last week, with the average rate on the benchmark 30-year fixed mortgage rate ticking lower to 4.09 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.43 discount and origination points.

The average 15-year fixed mortgage rate pulled back to 3.28 percent—also a record low t—while the jumbo 30-year fixed mortgage held at 4.61 percent. Adjustable mortgage rates were mixed, with the average 3-year adjustable down for a third consecutive week to a new low of 3.06 percent, while the 7-year and 10-year ARMs both inched higher, to 3.20 percent and 3.53 percent, respectively.

Although corporate earnings have been strong, recent economic data has been more suspect and the European debt crisis is an ongoing saga. Together, these are keeping both bond yields and mortgage rates at historic lows. Mortgage rates are closely related to yields on long-term government debt.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.09 percent, the monthly payment for the same size loan would be $965.24, a difference of $276 per month for anyone refinancing now.

For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com

I have a handful of great lenders I can refer you to.  Give me a call!

Joel Thompson RE/MAXAlliance

joelathompson@hotmail.com 303-877-0060

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Boulder Area Markets Continue Rebound

Boulder Area Markets Continue Rebound

March 2012 single family home sales in Boulder area markets improved significantly from February 2012; 270 compared to 172 respectively, up 57%. When compared to the 212 single family home sales in March 2011 there is a strong 27% increase. Condo and Townhome sales improved in March 2012 over February 2012 by more than 42%, 88 units versus 62. And, when compared to March 2011’s 75 units sold, March 2012 saw a 17% increase in units sold. Go to http://www.baraonline.com/sites/bara/files/statistics/March12stats.pdf to view stats.  http://www.baraonline.com/sites/bara/files/statistics/March12PricePoints.pdf to view sales by price point.

Joel Thompson RE/MAXAlliance

joelathompson@hotmail.com 303-877-0060

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Homeowner Vacancy: Tightest Housing Markets in the U.S.

Homeowner Vacancy: Tightest Housing Markets in the U.S.

A simple measure of tightness in a market for owner-occupied housing is the homeowner vacancy rate (number of homes for sale divided by the number either for sale or owner-occupied). Builders are often interested in markets that are tight by this measure, because it indicates prospective buyers will have difficulty finding a suitable home among the available existing units.

Several federal government surveys provide homeowner vacancy rates, but the one with the greatest geographic detail by far is the Census Bureau’s American Community Survey (ACS). In a recent study, NAHB tabulated the most recent (2010) ACS this data for all metropolitan areas in the country.

Overall, the tightest markets tend to be relatively small: Corvallis, Ore. (with a homeowner vacancy rate of 0.23 percent), Lebanon, Pa. (0.49 percent), Billings, Mont. (0.54 percent), San Angelo, Texas (0.61 percent), and Eau Claire, Wis. (also 0.61 percent).

The two tightest large markets in 2010—Nassau-Suffolk, N.Y. and Santa Ana-Anaheim-Irvine, Calif.—were also the two tightest large markets the last time NAHB looked at the ACS data in 2008.

The NAHB study provides a rundown of the top-10 metros according to nine key measures, including: owner-occupied housing units; homeownership rate; home owner vacancy rate; share of single-family detached homes; value of homes owned; home owner incomes; growth in stock of single-family detached homes; and share of homes built recently. It also has a spreadsheet that shows how more than 350 other metro areas stack up in each category.

Read the original article at the National Association of Home Builder blog, Eye on Housing

Joel Thompson RE/MAXAlliance

joelathompson@hotmail.com 303-877-0060

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