By Dennis Norman, on November 19th, 2019 In August, the overall mortgage delinquency rate (30 or more days past due) was 3.7% for the U.S. which is a 0.2 percentage point decline from a year ago and is the lowest overall delinquency rate in 14-years, according to date just released by CoreLogic. The delinquency rate for August of 3.7% marks the lowest delinquency rate during the month of August in 20 years. The serious delinquency rate (120+ days late) decline of 1.2% a year ago to just 1.0% in August 2019, nearly a record low. The Foreclosure Rate fell in August 2019 to 0.4% from 0.5% a year ago.
Missouri mortgage delinquency rates are low as well…
During August 2019, the overall mortgage delinquency rate for Missouri was exactly the same as the national rate, 3.7%. The serious delinquency rate in Missouri was 1.1%, just slightly above the national rate, and the foreclosure rate was 0.2%, half of the national rate.
See the current mortgage interest rates here.
By Dennis Norman, on November 3rd, 2019 Thanks to a strong economy and low-interest rates, the actual cost of a home today in St Louis is lower than it was a year ago, in spite of the fact that the median price of homes sold in St Louis has increased by 5.64% in the past year. Most people buying a typical home in St Louis finance nearly all of the purchase price, therefore, the cost of financing plays a significant role in the true cost of a home. Buyers decide what they can afford (as do lenders) based upon the house payment, not the price of the home.
The cost of a home today in St Louis versus a year ago…
As our STL Market Chart below shows, the median price of a home sold in the St Louis 5-County core market in October of this year was $200,000, 5.3% higher than last October when the median price of homes sold was $189,900. However, as our mortgage interest rate chart below shows, the rate for a 30-year fixed-rate mortgage is currently 3.78%, over a full percentage point less than October 2018 when the rate was 4.83%.
If we do a little math and use our mortgage payment calculator, we find that if someone bought a median-priced home in St Louis in October of 2018 at $189,900 and financed 100% of the purchase at the current rate at the time (4.83%), their payment would have been $1,027 per month. If a person were to buy a median-priced home in St Louis today at $200,000 and finance 100% of the purchase at the current rate of 3.78%, their payment would be $958. So, even though the price of the home increased over 5%, the payment on the home (at current prices) actually dropped by 7.2% showing just how much impact interest rates have on the cost of a home.
What are buyers waiting for?
We are entering the “slow season” for real estate, winter, a time when, year after year, home prices typically decrease until hitting a low around January and then start to increase as the weather warms. Therefore, we are in the period when home prices will be the lowest they will be for the year, interest rates are near the lowest they have been, so, if I were considering buying a home, I would jump into action as I just don’t see how it’s going to get better than this anytime soon.
Continue reading “Actual “Cost” Of St Louis Home Today Over 7 Percent Lower Than Year Ago“
By Dennis Norman, on August 1st, 2019 Yesterday afternoon, the Federal Reserve released a statement that was quite a vote of confidence for how the economy is doing. The Fed Reserve’s statement included “…the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low.” and went on to say “Market-based measures of inflation compensation remain low;”.
As a result of the positive economic conditions, the Federal Open Market Committee announced it would lower the target range for the federal funds rate to 2 to 2-1/4 percent. The committee went on to give a very positive outlook on the future economy as well saying that “sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes…”.
Will the move by the Fed Reserve cause lower mortgage interest rates?
It’s hard to say if this announcement will prompt immediate lower interest rates as the mortgage market takes a little longer view of things. However, while we don’t know if mortgage rates will decline or, if so by how much, I think, absent some major shift or change in the economy, it is safe to say that mortgage rates are not going up at this time or in the very near future.
Mortgage interest rates have been at historic lows for years…
Continue reading “Strong Economy and Low Inflation Prompt Fed Reserve To Lower Interest Rates“
By Dennis Norman, on February 19th, 2019 After mortgage interest rates on a 30-year fixed rate mortgage nearly hit 5 percent back in November, they have steadily declined and this past week fell to an average of 4.37% according to the Freddie Mac Primary Mortgage Market Survey. Last weeks 30-year fixed rate mortgage rate of 4.37% was the lowest average rate report by the survey since Feb 8, 2018, when the average rates were 4.32%.
The outlook for mortgage interest rates looks promising as well with the most recent Fannie Mae Housing Forecast predicting the 30-year fixed rate will stay at 4.5% through the end of 2020.
30-Year Fixed Rate Mortgage Average In The U.S.
click on chart for live, interactive chart
By Dennis Norman, on October 20th, 2018 The Mortgage Bankers Association (MBA), in their Mortgage Finance Forecast released this week predicted that interest rates on home mortgages will continue to rise this year and will hit 5% early next year. According to the report, the interest rate on a 30-year fixed rate mortgage is expected to come in at an average of 4.6% for the 3rd quarter, which just ended and then rise to an average of 4.9% during the last quarter of this year. Interest rates are then forecast to hit 5.0% during the 1st quarter of 2019, rise to 5.1% by the second quarter, then stay around 5.1% through the end of 2020, according to the report.
St Louis Mortgage Interest Rates
(click on chart for live, interactive chart)
By Dennis Norman, on July 19th, 2018 Today, Freddie Mac, through their Primary Mortgage Market Survey® revealed that for the current average interest rate on a 30-year fixed-rate mortgage is at 4.52%. which is just a slight decline from a week ago when the rate was 4.53% and the same as the week before that. After 30-year fixed-rate mortgages hit 4.66%, the highest rate in 7-years, back in late May, they have been trending downward a little, which is good news for the real estate market!
30 Year Fixed Rate Mortgage Average – 2000 – Present
(Click on Chart for LIVE chart with current data)
By Dennis Norman, on June 15th, 2018 Mortgage interest rates have been on the rise and hit their highest level in seven years toward the end of May, however, the higher rates don’t appear to be having an effect on the number of people in St Louis obtaining home loans yet. The table below is based upon the latest data from ATTOM Data Research, just released yesterday, and shows that there were 6,830 home purchase mortgage loans obtained in the St Louis metro area during the 1st quarter of this year. This represents an increase of nearly 10% from the number of home purchase mortgage loans that were obtained in St Louis a year ago. Even if we go back to the first quarter of 2016, when the average 30-year fixed rate mortgage rate was below 4%, there were just 6,093 home purchase loan originations, 12.1% fewer than the most recent quarter.
The number of St Louis homeowners refinancing their home mortgages during the first quarter of this year dropped over 10% from a year ago and was down over 15% from the first quarter of 2016.
Continue reading “Home Loan Origination Data Showing Impact Of Interest Rates On Refi’s But Not Home Purchases In St Louis“
By Dennis Norman, on May 25th, 2018 Freddie Mac has been tracking average mortgage rates since 1971 through their Primary Mortgage Market Survey® and yesterday it revealed that, as the chart below shows, the average interest rate on a 30-year fixed-rate mortgage was at 4.6%, the highest rate in over 7 years. The last time mortgage interest rates were this high was back on May 5, 2011 when the 30-year rate hit 4.71%.
Even with the recent increase, mortgage interest rates are still reasonably low from a historical perspective. As the second chart below illustrates, 20 years ago the rates were around 8 percent. Mortgage interest rates then spent nearly a decade around the 5% – 6% range before beginning the descent after the housing bubble burst in 2008.
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Mortgage Interest Rates – 2018- Chart
Mortgage Interest Rates – 1995 -2018- Chart
By Dennis Norman, on December 9th, 2016 According to the Freddie Mac Primary Mortgage Market Survey (PMMS) released yesterday for the past week, interest rates on a 30-year fixed rate mortgage increased 5 basis points (1/20th of 1%) to 4.13 percent , the highest rate they have been at during 2016. Last year at this time the PMMS showed average interest rates at 3.95 percent so, while rates have increased over the past year, the amount has been fairly small.
However, mortgage interest rates are being forecasted by many economists and industry guru’s to hit 4.5% – 5.0% during 2017. While we’ve seen predictions like that for a couple of years in a row now, I think it’s going to come true this time therefore, if you have been thinking about buying, you may want to start looking now!
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Search St Louis Homes For Sale HERE
See ALL Homes That Will Be Open In St Louis This Weekend
Coming Soon Listings – Be The First!
Continue reading “Mortgage Rates Hit Highest Rate In 2016 This Week“
By Dennis Norman, on May 6th, 2016 In mid-April the Federal Housing Finance Agency (FHFA) announced a new program aimed to help homeowners with a Fannie Mae or Freddie Mac loan that are seriously underwater on equity, meaning that their mortgage balance is at least 115 percent of the current value of their home. This new principal reduction modification program offers, to those that qualify, a one-time reduction in the balance of their mortgage to bring them out of a negative equity position.
Below is an outline of the program details as well as link to Principal Reduction Fact Sheet:
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Search St Louis Homes For Sale HERE
Principal Reduction Program Fact Sheet
Find the Current Value of your home in under a minute!
Continue reading “Help For Underwater Homeowners – One-time principal reduction plan“
By Dennis Norman, on February 14th, 2016 For those that have been reading my articles for a while, you know I am not a Pollyanna when it comes to the real estate market, opting instead to tell it like it is, even when the news is not so encouraging. For that reason, as well as the data behind my opinion, I think my suggestion that now is a good time to buy a home in St Louis should be considered to be a credible opinion from an industry insider.
So, why buy a home in St Louis now?
- Interest rates are LOW. As the chart below shows, the current average 30 year fixed rate mortgage interest rate in the U.S. is 3.65%, almost an historic low. Interest rates are not forecasted to remain this low. Freddie mac, as the table below shows, is forecasting that mortgage interest rates will rise this year to 4.5% by year end and continue to rise in 2017 until hitting 5.25% by the end of 2017. An increase from the current rate, even to just the projected rate by year-end of 4.5% increases the payment on a typical St Louis home by over 10%, therefore, the same money buys less house!
- Home prices are on the rise. As the chart below shows, St Louis home prices have risen about 4% during the past year and the trend has been fairly consistent. As the median list prices show (the blue line on the chart) list prices of homes for sale is on the rise at a greater rate than the increase in recent sold prices. Granted, this may be the result of overly optimistic sellers that believe spring will bring increased home prices (as is the norm) but even if prices remain flat, increased interest rates will still make the home more costly.
- Gas prices are low and forecasted to remain the same. As the chart below from the U.S. Energy Administration illustrates, gasoline prices this year have hit the lowest price level in about 14 years and the forecast for the rest of this year and through 2017 shows gas prices remaining low. This, along with the other issues noted, should help the St Louis real estate market remain healthy and fairly strong in the short term which will most likely result in continued price appreciation, particularly for areas that are farther out and subject to gas prices.
- More affordable to buy than rent but may change soon. There are two charts at the bottom of this article that illustrate what I’m talking about here. The first is a chart from the St Louis Federal Reserve that shows the St Louis home price index and home rental rates from 1970 to present. The chart illustrates that rental rates increase at a very consistent rate and home prices follow along at a similar pace. Presently, home prices have fallen behind rental rates which, based upon history, will result in home prices increasing. Therefore, currently, in many markets it is more expensive to rent than it is to buy but the savings of homeownership will probably shrink, and perhaps disappear, as home prices rise going forward, particularly if home price appreciation begins outpacing rental rate appreciation, which is likely the happen. The next chart, the Housing Affordability Index from the St Louis Federal Reserve, also illustrates how affordable home ownership is presently. Granted, not as affordable as when home prices hit bottom in 2012, the result of the housing bubble burst in 2008, but illustrating that home ownership is more affordable now than at any time prior to the housing bubble burst in 2008.
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
St Louis Home Price Trends By City/Municipality
2016 SMART Guide For Home Buyers
2016 SMART Guide For Home Sellers
Continue reading “4 Reasons Why You Should Buy A Home Now In St Louis“
By Dennis Norman, on July 7th, 2015 The median price of homes sold in St Louis (the 5-county core market) this year thus far has been $169,000, an increase of 5.7 percent from when the market peaked in 2006 at $159,900. While the peak of the housing bubble is considered to be 2006, as the chart below shows, St Louis home prices actually peaked in 2007 at $162,000 but, in either event, St Louis home prices have regained what was lost when the housing bubble burst and then some.
This is in contrast to what is happening at the national level with regard to home prices as evidenced by comments made by two of the top economists as teh National Association of Real Estate Editors (NAREE) conference last week. At the conference, Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) said he “anticipates home prices will return to their 2006 peak sometime this year” and Frank Nothaft, Chief Economist for Corelogic (and formerly for Freddie Mac) predicted home prices nationally would not return to 2006 levels until the end of 2017.
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Search St Louis Homes For Sale HERE
See ALL Homes That Will Be Open In St Louis This Weekend
Continue reading “St Louis Area Home Prices Have Surpassed 2006 Peak Prices“
By Dennis Norman, on July 2nd, 2015 St Louis bank and government owned home sales are down as banks and government enterprises such as Fannie Mae, FHA, VA and Freddie Mac whittle down their inventory of foreclosed homes while, at the same time, new mortgage delinquencies and foreclosure rates continue to decline. While this is good for the St Louis real estate market, it makes it tough on investors, as well as owner occupants, who are looking for a deal on a distressed sale, as the competition is growing fierce driving prices up and opportunities down.
St Louis Bank and Government owned home sales down over 30% from year ago:
As the charts below show, year to date, through the end of May, there have been a total of 1,598 bank or government owned homes sold in the St Louis 5-county core market (the city of St Louis and counties of St Louis, St Charles, Jefferson and Franklin), according to data available from MARIS, the REALTORS® MLS for the area, which is a decline of 31.4% from the same time a year ago when there were 2,100 bank and government owned home sales.
St Louis Distressed Home Sales Selling At Record Percentage of List Price:
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Search St Louis Homes For Sale HERE
See ALL Homes That Will Be Open In St Louis This Weekend
Want be successful buying distressed property? Check out my video on how to buy distressed sales here. Continue reading “Bank and Government Owned Home Sales Down But Selling For Record Percentage of List Price“
By Dennis Norman, on April 22nd, 2015
The Federal Housing Finance Agency (FHFA) issued a release yesterday stating that while that agency acts as conservator for Fannie Mae and Freddie Mac, no “property of the Agency shall be subject to levy, attachment, garnishment, foreclosure, or sale without the consent of the Agency.” The release went on to say that Title 12 United States Code Section 4617(j)(3) “precludes involuntary extinguishment of Fannie Mae or Freddie Mac liens while they are operating in conservatorships and preempts any state law that purports to allow holders of homeownership association (HOA) liens to extinguish a Fannie Mae or Freddie Mac lien, security interest, or other property interest.”
Just in case a homeowners association or others are still considering giving it a try to have their lien take priority over a Fannie Mae or Freddie Mac lien, not that back in December 2014 the FHFA said they have an obligation to protect Fannie Mae and Freddie Mac’s rights and “will aggressively do so by bringing or supporting actions to contest HOA foreclosures that purport to extinguish Enterprise property interests in a manner that contravenes federal law.”
By Dennis Norman, on November 25th, 2014 Today, the Federal Housing Finance Agency (FHFA) told Fannie May and Freddie Mac to change their policies to allow foreclosed homeowners the opportunity to buy their home back at the property’s fair-market value, just like any other purchaser can. Currently, if a foreclosed homeowner wanted to buy their home back from Fannie Mae or Freddie Mac they would be required to pay the entire amount owed on their previous mortgage although a non-related purchaser, not buying the home for the benefit of the former homeowner, only has to pay the current fair market value.
“This is a targeted, but important policy change that should help reduce property vacancies and stabilize home values and neighborhoods,” said FHFA Director Melvin L. Watt. “It expands the number of potential buyers of REO properties and is consistent with the Enterprises’ practice of requiring fair-market value for those properties.”
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
By Dennis Norman, on October 22nd, 2014 Around this time of year every year, people start asking me “Where is the real estate Market headed next year?” The real estate market is affected by so many factors that predictions on what the market will do are hard, however there are some basic fundamentals that can be looked at to make a good educated guess. One of the industry experts out there that I think does a good job at this and, offers a somewhat less biased look at the market than some, is Frank Nothaft, Chief Economist at Freddie Mac. Below are highlights of his most recent report on the outlook of the housing market along with my comments relating his projection to our St Louis market:
Home Sales:
- 5.31 million total homes (new and existing) sold in 2014, a 3.6% decrease from 2013. Projection for 2015 is an increase of 5.5% to 5.6 million homes sold.
- For St Louis (the 5-county core market), I am projecting that home sales will be down roughly the same as above, maybe just slightly higher, perhaps 4%, for 2014 from 2013. I would also project an increase in home sales in St Louis in 2015 at a rate close to the rate projected by Mr. Nothaft for the market as a whole.
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Continue reading “Where The Real Estate Market Is Headed In 2015“
By Dennis Norman, on September 19th, 2014 Mortgage Interest Rates rose this week to an average of 4.23 percent for a 30-year fixed rate home loan, up from 4.12 percent last week, marking the largest one-week jump in interest rates we have seen thus far this year, according to data just released by Freddie Mac. Mortgage interest rates for fixed-rate loans have now hit the highest level since May 1st.
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Search St Louis Homes For Sale HEREMortgage interest rates from the Freddie Mac report:
- 30-year fixed rate mortgages averaged 4.23%
- Last week the rate was 4.12%
- Last year at this time the rate was 4.5%
- 15-year fixed rate mortgages averaged 3.37%
- Last week the rate was 3.26.
- Last year at this time the rate was 3.54
- 5-year hybrid adjustable rate mortgages averaged 3.06%
- Last week the rate was 2.99%
- Last year at this time the rate was 3.11%
- 1-year adjustable rate mortgages averaged 2.43%
- Last week the rate was 2.45%
- Last year at this time the rate was 2.65%
By Dennis Norman, on August 15th, 2014 Mortgage interest rates fell to an average of 4.13 percent in July on a 30-year fixed rate mortgage, marking the lowest mortgage interest rate we have seen in over a year. The last time mortgage interest rates were this low was back in June of 2013 when the average interest rate on a 30-year fixed-rate mortgage was 4.07 percent, according to the latest data from Freddie Mac.
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Search St Louis Homes For Sale HERE Source: Freddie Mac
By Dennis Norman, on July 18th, 2014 Mortgage interest rates, in spite of predications to the contrary by many, are actually lower today than a year ago, according to the latest date available from Fredde Mac. According to Freddie Mac, the U.S. average interest rate for a 30 year mortgage was 4.15 percent on July 10, 2014, down significantly from July 11, 2013 when the average 30 year mortgage rate was 4.51 percent.
As the interactive chart below from the St Louis Fed Reserve shows, mortgage interest rates have definitely risen from the historic lows we say in 2012 and part of 2013 however are still lower than 5 years ago. So, will this trend continue and will the predictions of interest rates topping 5 percent next year not come to fruition? It’s very hard to say as a lot of it hinges upon what happens in the economy and the housing market as well. My guess is, there is a much better chance of rates increasing over the next year than decreasing but that’s just my opinion.
(We work hard on this and sure would appreciate a “Like”)[iframe http://www.facebook.com/plugins/like.php?href=https%3A%2F%2Fwww.facebook.com%2FStLouisRealEstateNews&send=false&layout=standard&width=50&show_faces=false&font&colorscheme=light&action=like&height=35&appId=537283152977556 100 35 ]
Get current mortgage interest rates, mortgage calculators and more HERE.
Continue reading “Mortgage Interest Rates Lower Today Than A Year Ago To The Surprise of Many“
By Dennis Norman, on October 7th, 2013  As we enter the 7th day of the government shut down, concern grows among home buyers and sellers as to how this may affect the transactions here in St Louis. The short answer is that, fortunately, it appears the impact will be minimal for the most part. This morning at a meeting of the St Louis Industry Forum, which I chair, this topic was discussed and from the input of the real estate-related professions represented, it appears the impact of the government shutdown on real estate transactions here will be minimal.
Shelly Clark, President of Cardinal Surveying, said that there should not be any impact on obtaining a survey, however there will be some impact for homes located in a flood zone Continue reading “How Will The Government Shut Down Affect The St Louis Real Estate Market?“
By Dennis Norman, on March 5th, 2013  According to a recent report by the Loan Modification Scam Prevention Network (LMSPN), a national anti-scam effort comprised of Fannie Mae, Freddie Mac, the Lawyers’ Committee for Civil Rights Under Law, the Homeownership Preservation Foundation (HPF), and NeighborWorks America, there have been more than 30,000 loan modification scams reported in the past three years. According to the group, the scammers are becoming “increasingly aggressive online, using targeted web advertisements to reach homeowners who are searching for mortgage relief over the Internet.” The group cautions that homeowners should be aware that no one other than your present lender can guarantee any form of mortgage relief.
Below are six (6) warning signs to look for that may indicate you are dealing with a loan modification scammer: Continue reading “How to avoid being the victim of a loan modification scam“
By Robert Fishel, on December 19th, 2012  Mortgage rates have flattened out, but some borrowers are lowering their rates further by opting for a loan with a shorter term.
Freddie Mac says about 30% of borrowers this year have opted for shorter-term home loans when they refinance, with most picking a 15-year mortgage. Shorter-term loans are particularly attractive to people “who have been homeowners for a number of years…or who want the security of knowing they will own their home free and clear when they retire,”
 Continue reading “Saving interest…shorten your term; St Louis Mortgage Interest Rate Update“
By Dennis Norman, on December 11th, 2012  I continue to see encouraging news about the housing market and today was no exception. The Freddie Mac housing market outlook for December was released and included a very encouraging outlook for the real estate market in 2013 by its chief economist, Frank Nothaft. Not that I’m on the same level as Northaft, but I will be coming out later this month with a short market recap video for 2012 as well as an outlook for 2013, both specifically for the St Louis real estate market. In the meantime, below are the highlights from Mr Nothaft’s projections for the U.S. real estate market for 2013.
Continue reading “2013 looks to be a good year for real estate“
By Dennis Norman, on November 1st, 2012 For anyone that has been through the short sale process, or knows someone that has, they will attest to the fact that short sales are not “short” but, instead, are typically long, drawn out processes with many layers of approvals and much red tape. Good news! Beginning today, Fannie Mae and Freddie Mac took steps to shorten the short sale process as well as reduce the amount of red tape, by no longer requiring approved private mortgage insurance companies to come to them (Fannie and Freddie) for approvals on short sales or deeds in lieu of foreclosure. This is a significant change from the current policy and should definitely make the short sale process less drawn out going forward.
If you are looking to buy a short sale and would like to search all the short sales available in the St. Louis, click here.
By Dennis Norman, on September 20th, 2012 
In spite of warning from the Mortgage Bankers Association (MBA), the St. Louis Association of REALTORS (SLAR) and other housing-related groups of the damage the “Mortgage Foreclosure Intervention Code” (Bill #174 introduced by Hazel Erby, District 1) could do to the already struggling St Louis housing market, including increasing the cost of home mortgages, last month the St. Louis County Council passed the bill, it was signed into law by County Executive Charlie Dooley and will go into effect on September 28, 2012. Then, just last week, Lewis Reed, President of the St. Louis Board of Alderman, introduced what is a basically the same bill in an attempt to get the same law enacted by the City of St. Louis.
Opponents of the law, including SLAR and the MBA, say this law will likely lead to higher cost mortgages in St Louis County (and, assuming they pass it, the city of St Louis) as lenders will increase fees to cover additional costs they will have in complying with this new law and proponents of the law say this is not so. I think the proponents of the bill are wrong and am confident that this will lead to higher cost mortgages in areas that have enacted the Mortgage Foreclosure Intervention Code or similar laws. So, why am I so sure? It just so happens that yesterday, the Federal Housing Finance Agency (FHFA), the agency charged with overseeing Fannie Mae and Freddie Mac, issued a notice of a proposal to increase mortgage fee pricing (guarantee fees that Fannie Mae and Freddie Mac charge) on loans in states where, due to laws and the requirements imposed upon lenders (or other investors) to “manage a default, foreclose and obtain marketable title to the property backing a single-family mortgage“, foreclosures take longer. Continue reading “Home mortgages may become more costly in St. Louis thanks to local law“
By Dennis Norman, on August 24th, 2012  I have good news for homeowners that are underwater on the mortgage and need to do a short sale, or for buyers looking to buy a short sale. The Federal Housing Financing Agency just issued new guidelines to lenders that service Fannie Mae and Freddie Mac loans that are intended to “offer a streamlined short sale approach” which will be music to the ears of anyone that has been through the process. I don’t always agree with the actions of the FHFA but I think this is a good move and will help the market. The new guidelines (see below for highlights) go into effect November 1, 2012 Continue reading “Short sales just got better“
By Peter Wright, on July 5th, 2012 
Interest rates have been strong all year, last week however, we saw mortgage backed securities rally each day and with the release of unemployment figures on Friday we are now officially sitting at historic lows! If you have not taken advantage of these rates…what are you waiting for? Maybe you have been told that you don’t have enough equity in your home due to the housing market trending down over the past few years?
Well there is something here for you too! The Home Affordable Refinance Program (HARP) is a program developed by Fannie Mae and Freddie Mac that helps folks with little or no equity in their homes take advantage of today’s fantastic mortgage rates. Continue reading “Historic low mortgage interest rates, Refinancing Options & New HUD program“
By Robert Fishel, on March 21st, 2012
Mortgage rates have been rising nonstop since the end of last week. If you are considering a refinance or taking the plunge and buying a new home, you’d better get moving. I just had a prospect shop rates and terms for his new home over the last couple of weeks and just called back; he finally decided on a lender and wanted an updated rate quote to lock his loan. Needless to say, he was terribly disappointed…the rates we originally spoke about on a 30 year fixed rate a couple of weeks ago was in the high 3’s, my quote yesterday was 4.25% (4.45% APR ). Continue reading “St. Louis Mortgage Rate Update; "You’ll never buy at the bottom" Interest rates are on the rise“
By Peter Wright, on March 5th, 2012 There are approximately 11-Million homeowners that are underwater, which represents about 23% of all outstanding mortgages. So, here comes another program to help the America Homeowner! Is it hype…or will it help?
Well, the new HARP program (Home Affordable Refinance Program) was released in Continue reading “Is the New Home Affordable Refinance Program Hype or Help?“
By Robert Fishel, on February 23rd, 2012 Freddie Mac recently released their fourth-quarter refinance analysis and it shows that 85 percent of homeowners who refinanced their mortgages during the fourth quarter of 2011 maintained or reduced their principal balance by paying-in additional money at the closing table. Frank Nothaft, Freddie Mac’s vice president and chief economist, said savvy homeowners are taking advantage of some of the lowest fixed-rates in more than 60 years to lock in interest savings.
According to Nothaft, the typical borrower who refinanced during the fourth quarter reduced their interest rate by approximately 1.4 percentage points. During the fourth quarter, 37 percent of homeowners who refinanced their mortgage maintained about the same loan amount and 49 percent reduced their principal balance. The percentage of cash-in borrowers was the highest in the 26-year history of the analysis. Continue reading “St. Louis Mortgage Rate Update; Refinancing Homeowners Reduced Debt In Fourth Quarter“
|
Recent Articles
|
