St Louis Real Estate NewsDaily St. Louis real estate news, market analysis, home prices, and mortgage rate updates from local industry professionals. |
St. Louis MORTGAGE RATES for February 2, 2011:
Conventional 30-Year Fixed 4.875% Conventional 15-Year Fixed 4.250% Conventional 5/1 ARM 3.250% FHA/VA 30 Year Fixed 4.750% Jumbo 5/1 ARM 3.500% Jumbo 15 yr Fixed 4.250% Jumbo 30 yr Fixed 5.375% Continue Reading →
Yesterday my wife received a letter from the condo association for a complex she owns a rental in with “OWNER ALERT!!!!!!!” (yes, that many exclamation points) at the top of it in big letters. The reason for the “alert” was to let condo owners know that FHA certification for this condominium complex expired December 31, 2010 (as it did for many complexes across the country) and that, in order to be eligible for FHA-insured financing the complex would have to obtain re-certification.
Now, in this particular case, the board is using this as a scare tactic to try to convince Continue Reading →
RealtyTrac released their foreclosure report for 2010 which showed some mixed results. During 2010 there were 2,871,891 foreclosure filings in the U.S., an increase of 1.67 percent from 2009. However the metro areas with the 10 highest foreclosure rates all saw decreases in foreclosure filings in 2010 from the year before, in fact six of the ten metros even had decreased foreclosure activity from 2008.
The Federal Housing Administration (FHA) announced the temporary waiver of the “anti-flipping” rule has been extended through December 31, 2011. In my opinion the “anti-flipping” rule was a bad idea to start with and in the current housing market the last thing we need is anything to discourage investors from buying homes so this is a good move by FHA.
Dennis Norman
The National Association of REALTORS Pending Home Sales Index for December shows an increase of 2.0 percent in the index from the month before (seasonally adjusted), and a 4.2 percent decrease from a year ago.
Even though over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name”, there are truly benefits to them including:
ARM rates are now more attractive than ever before. Rates have fallen to 3.50% for a 5/1 ARM. ARMs are predictable. Rates are capped so there are no surprises for borrowers. Rates adjust only on the remaining principal of the loan. Rate adjustments could decrease (increases are limited to the prevailing index in which the ARM is based). Lower Monthly Payments – Increases the buying power of borrowers which attracts buyers to new homes. Continue Reading →
Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for December 2010 showing an increase of 17.5 percent from the month before, but a decrease of 7.6 percent from a year ago.
The seasonally-adjusted new home sales rate for December was 329,000 homes, a 17.5 percent increase from November’s revised rate of 280,000 homes. The supply of new homes on the market decreased from an adjusted 8.4 month supply in November to a 6.9 month supply in December. The median new home price increased for the month to $241,500 whopping 12.0 Continue Reading →
Dennis Norman
Today the S&P/Case-Shiller Index report for November was released and confirms concerns that I have discussed previously that the housing market is headed for a double dip in home prices.
The report revealed that home prices decreased in 19 or the 20 metro areas covered by the report from their October levels and only four of the metro’s showed a year-over-year price gain in November.Furthermore, nine metros – Atlanta, Charlotte, Chicago, Detroit, Las Vegas, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007.
Dennis Norman
The St. Louis foreclosure rate shot up 7 percent in November to 1.67 percent, according to a report published by CoreLogic. The report also shows that the rate of serious mortgage delinquencies in St. Louis (90+ days delinquent) increase slightly to 5.18 percent in November from 5.17 percent the month before.
A “first-look” report issued by Lender Processing Services, one of the countries largest loan servicers and aggregators of loan performance data, is somewhat encouraging as it shows the U.S. mortgage delinquency rate (not including foreclosures) for December was 8.83 percent which is a decrease of 2.1 percent from November’s rate of 9.02 percent.
Today’s existing home sales report from the National Association of REALTORS(R) shows St. Louis area existing home sales for December were 3.1 percent higher than a year ago and St. Louis area home prices in December were 7.8 percent higher than the year before.
Nationally, existing home sales in December were at at a seasonally adjusted-annual rate of 5.28 million units which is an increase of 12.3 percent from November and is a decline of 2.9 percent from a year ago. Preliminary numbers for 2010 show 4,908,000 existing homes sold which is a decrease of 4.8 percent from 2009 when Continue Reading →
Private Mortgage Insurance, also known as PMI, is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio — the amount of your mortgage loan divided by the value of your home — is greater than 80 percent.
Mortgage Insurance isn’t a bad thing — it allows you to make a lower down payment and still qualify for a mortgage loan. In fact without PMI, many of us would not be able to Continue Reading →
The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for December 2010 showing a 5.5 percent increase in single-family home building permits from November, but a 9.0 percent decrease in new home starts compared to the month before.
You finally reach a deal with a buyer to sell your house, or strike a deal with the seller of your dream home, only to see the deal fall apart later when the house doesn’t appraise for the price that has been agreed upon…what are you to do? This is a plight that has become all too common today for many buyers and sellers. Why? Several reasons….appraisers have, after being blamed by many for causing or contributing to the downfall of the housing market, understandably so become cautious and somewhat conservative when putting a value on a home today. Not Continue Reading →
A report released by CoreLogic showed that the St. Louis foreclosure rate increased in October marking the fourth-consecutive month of increases. The report shows St. Louis to have a foreclosure rate in October of 1.58 percent, a slight increase from September’s 1.57 percent, however an increase of over 11 percent from a year ago. The foreclosure rate in the U.S. in October was 3.33 percent, an increase of 14 percent from the year before.
The FHA 203K rehab program is intended to promote and facilitate the restoration and preservation of existing homes. It enables borrowers to finance the acquisition and rehab of a property in one step; the loan value is based on the projected value of the home at the completion of the rehab.
Today, CoreLogic released its November Home Price Index (HPI) showing that home prices in the U.S. declined for the fourth-straight month. The report shows home prices declined by 5.07 percent in November 2010 compared with November 2009.
St. Louis home prices fell by 7.57 percent in November 2010 compared with November 2009, right at 50 percent more than the national home price decline.
The real estate market has not been very nice to us over the past 3 years or so and we are all anxious to see the light at the end of the tunnel. With that in mind, and 2011 in front of us, where is the real estate market headed in 2011? Before I take my humble stab at answering this question I need to remind you I am not an economist nor do I have a PhD behind my name, in fact I have nothing behind my name. All I can offer is a whole lot of experience “in Continue Reading →
The President has signed the bill extending Mortgage Insurance tax deductibility through December 31, 2011. Borrowers can use Mortgage Insurance (MI) to buy a home sooner and enjoy predictable payments, while benefiting by deducting the premiums from their income taxes. And MI can be canceled once the home buyer builds enough equity. MI is required on all mortgage loans that exceed an 80% loan to value.
As 2010 quickly comes to an end I sat here early this morning pondering the real estate market and reading reports on the housing industry. One thing that caught my attention was an article titled “The Mortgage Interest Deduction and Negative Equity” by Ted Gayer, the co-director of economic studies at the Brookings Institute (and occasional contributor to this blog). Ted’s article made some interesting points related to the mortgage interest deduction, negative equity and home-ownership rates in the U.S.
In his article Ted states “It seems semantically incorrect to call someone who owes more on an asset than it’s Continue Reading →
Dennis Norman
The National Association of REALTORS Pending Home Sales Index for November shows an increase of 3.5 percent in the index from the month before (seasonally adjusted), and a 5.0 percent decrease from a year ago.
As your kids grow up, you support them through their bumps and bruises, pay for their braces, school and much, much more.
Over the past few years, I have run into the issue of young adults not being able to qualify for a mortgage without a parent’s help. So, the big question is: should you offer to co-sign on your child’s loan? Your kid may need something more than your money…
Dennis Norman
Yesterday the S&P/Case-Shiller Index report for October was released and was filled with bad news on the housing market. The report revealed that home prices decreased in all 20 metro areas covered by the report from their September levels and only four of the metro’s showed a year-over-year price gain in October.Furthermore, six metros – Atlanta, Charlotte, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007.
This news comes at a time when we have seen a couple of bits of positive news on Continue Reading →
It seems we always need to find someone to blame for our problems…
When it comes to the meltdown in the housing market that has taken place over the past three years there has been no lack of finger pointing by many inside and outside the industry as to factors that either caused or contributed to the collapse of the housing market. Sub-prime lending, Wall Street, mortgage fraud, the mortgage industry, banks, community reinvestment act, real estate brokers and agents, fannie mae, freddie mac, federal government over-regulation, federal government under-regulation, appraisers, unemployment, the economy in general, “flipping”, sellers, buyers and Continue Reading →
The Justice Department today announced a $1.25 million agreement with Warren Properties Inc., Warren Village (Mobile) Limited Partnership and Frank R. Warren to settle allegations that the defendants violated the Fair Housing Act by refusing to grant a tenant’s requests for a reasonable accommodation. This settlement is the largest ever obtained by the department in an individual housing discrimination case.
Today, the U.S. Department of Housing and Urban Development and U.S. Census Bureau released new home sales data for November 2010 showing an increase of 5.50 percent from the month before, but a decrease of 21.2 percent from a year ago.
The seasonally-adjusted new home sales rate for November was 290,000 homes, a 5.5 percent increase from October’s revised rate of 275,000 homes. The supply of new homes on the market decreased from an adjusted 8.8 month supply in October to a 8.2 month supply in November. The median new home price increased for the month to $213,000 from $197,200 Continue Reading →
First-time home buyers receive a forgivable 3% cash assistance loan for down payment and closing costs.
The Missouri Housing Development Commission (MHDC) provides a competitive interest rate on a safe 30-year fixed rate 1st mortgage. Your 3% advance loan is treated as a 2nd mortgage completely forgivable after five years of continuous occupancy. New, Constant Funding means MHDC will have the monies available for the borrowers regardless of bond issuance.
For more information about this program, go to http://www.box.net/shared/s2x9zriz1g or www.MHDC.com .
A report released this week by Standard & Poor’s and Experian showed an increase in monthly default rates on first mortgages to 3.05 percent and an increase in default rates on second mortgages to 1.80 percent. The increase in default rates for first mortgages is the first increase since December 2009. The good news is that even though the rate in November increased, it is still down 34.84 percent from a year ago at the same time.
Today’s existing home sales report from theNational Association of REALTORS(R) shows existing home sales in November were at at a seasonally adjusted-annual rate of 4.68 million units which is an increase of 5.6 percent from October and is a decline of 27.9 percent from a year ago.
Great Desire to Own a Home by Growing Ethnic and Immigrant Populations Could Drive Future of the Housing Market
Fannie Mae just released a report which included a study on “Renting and Owning Behaviors by Race, Ethnicity, and Immigration Status and Economics of Owning and Renting Through the Cycle and Across Geographies” in which was shown that “all racial and ethnic groups polled, as well as immigrants, strongly aspire to own a home, despite current disparities in homeownership rates for these groups.“