Daily Real Estate News
June 28, 2011
Freddie Mac: Better Days Ahead in Housing
Freddie Mac's chief economist is optimistic that the housing market and economy will improve in the second half of 2011.
Freddie Mac Chief Economist Frank Nothaft said mortgage rates will likely remain historical lows of between 4.5 percent and 5 percent for the remainder of the year. Also, he expects more buyers to stop waiting on the sidelines as recent price drops in home prices have improved affordability.
Nothaft said consumers' uncertainty about the economy has caused them to delay home purchases and other "big-ticket items."
"Some potential buyers who have the means to buy are awaiting clearer signs that home values have firmed," Nothaft says.
But Nothaft says they should be getting their signs in the second half of th e year, with projected job gains, and a growing, improved economy.
"Even though near-term concerns over income and sales growth are restraining consumer spending, business hiring, and new building, a number of positive signs in the economy indicate that growth will continue and is likely to accelerate in the second half of this year," Nothaft said. "Look for a gradual improvement in housing activity in the coming year."
Source: "Freddie Mac Economist Sees Sunny Economy in Second Half," HousingWire (June 27, 2011)
Wednesday, June 29, 2011
Thursday, June 23, 2011
Monday, June 13, 2011
Mortgage Rates Hit 2011 LOW
Rates Hit Another 2011 Low
With employers adding far fewer private-sector jobs than anticipated, the latest Freddie Mac data shows that home loan rates fell for an eighth consecutive week to a new low for the year. The 30-year fixed mortgage averaged 4.49 percent, down from 4.55 percent the prior week. Interest on 15-year fixed loans, meanwhile, dipped to 3.68 percent from 3.74 percent. Five-year adjustable-rate mortgages sank to 3.28 percent from 3.41 percent, and one-year ARMs dropped to 2.95 percent from 3.13 percent.
[SOURCES: Freddie Mac; Information, Inc.]
With employers adding far fewer private-sector jobs than anticipated, the latest Freddie Mac data shows that home loan rates fell for an eighth consecutive week to a new low for the year. The 30-year fixed mortgage averaged 4.49 percent, down from 4.55 percent the prior week. Interest on 15-year fixed loans, meanwhile, dipped to 3.68 percent from 3.74 percent. Five-year adjustable-rate mortgages sank to 3.28 percent from 3.41 percent, and one-year ARMs dropped to 2.95 percent from 3.13 percent.
[SOURCES: Freddie Mac; Information, Inc.]
Home Prices Hit Lowest Level in 2 Years
Home Prices Hit Lowest Level in 2 Years
The S&P/Case-Shiller index shows that U.S. home prices slid 4.2 percent in the first three months of this year, falling to the lowest point since 2009. The movement, with values now below pre-crisis levels, represents a "double dip." Wells Fargo Securities senior economist Mark Vitner notes that there are 2.2 million homes in foreclosure and another 2 million mortgages that are more than 90 days late. For prices to stabilize, he says, about a third of those foreclosures must be cleared.
[SOURCES: Washington Post; Information, Inc.]
The S&P/Case-Shiller index shows that U.S. home prices slid 4.2 percent in the first three months of this year, falling to the lowest point since 2009. The movement, with values now below pre-crisis levels, represents a "double dip." Wells Fargo Securities senior economist Mark Vitner notes that there are 2.2 million homes in foreclosure and another 2 million mortgages that are more than 90 days late. For prices to stabilize, he says, about a third of those foreclosures must be cleared.
[SOURCES: Washington Post; Information, Inc.]
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