Updates from March, 2011

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• Federal Housing Finance Agency Reports Mortgage Interest Rates

  MSC Marketing 10:21 am on March 31, 2011 | Comments:0
  Tags: Buyer information (36), FHA (7), Interest Rates (39), mortgage (61), Mortgage rates (6)   Filed under: Buyer Info, Federal Goverment, FHA, Interest Rates, mortgage

  RISMEDIA, March 31, 2011—The Federal Housing Finance Agency has reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.79 percent based on loans closed in February. This is an increase of 0.08 percent from the previous month. This Contract Rate series can be found at http://www.fhfa.gov/Default.aspx?Page=251.

  The average interest rate on conventional, 30-year fixed-rate mortgage loans of $417,000 or less increased 12 basis points to 4.97 percent in February. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the Feb. 22-28 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-January. (More …)

  
   
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• If Prices Are Falling, Why Are the Rich Buying?

  MSC Marketing 4:33 pm on March 15, 2011 | Comments:0
  Tags: Buyer info (72), Luxury (28), Seller information (41), upper end housing market   Filed under: Buyer Info, Consumer news and advice, Credit, economy, Federal Goverment, Home owner information, Luxury, People, Seller Info, The Housing Market

  by The KCM Crew on March 14, 2011

  There is an interesting phenomenon taking place in the real estate market. While house prices are falling, the rich are starting to purchase. DataQuick Information Systems reported last week that sales on homes $1 million or more rose 18.6% last year after four consecutive years of decline. This is at the same time that sales outside of this price point actually fell 2.8%.

  And even more amazing is that homes over $5 million have also increased substantially. Housing Wire reported that:

  In 2010, 975 homes sold in this bracket, up nearly 14% from the year prior.

  Why would the wealthy be starting to purchase especially when everyone is predicting that prices will soften? The people of wealth understand finances. They realize that the COST of real estate is a much more important than its PRICE. With the government attempting to make massive changes to the residential lending business, the wealthy know financing  a home may never be better. They realize it is time to buy. They can purchase a million dollar+ home for a rate lower than at almost any time in history.

  Rates are at historic lows and the spread for jumbo loans has shrunk dramatically. As CNN Money explained: (More …)

  
   
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• February Housing Scorecard Shows Increase in Existing Home Sales as Home Affordability Remains High

  Beth Ward 10:41 am on March 10, 2011 | Comments:0
  Tags: Consumer news and advice (162), economy (72), Federal Housing Authority, Seller information (41), Statistics (63)   Filed under: Buyer Info, Consumer news and advice, economy, Federal Goverment, Seller Info, Statistics

  RISMEDIA, March 4, 2011—The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury released the February 2011 edition of the Obama Administration’s Housing Scorecard. The latest housing figures show increased existing home sales as home affordability remains high, but officials caution that the market remains fragile, as prices are unsettled.“In the face of the deepest economic recession and housing crisis in decades, the Obama Administration has taken unprecedented action to promote stability in the market—keeping millions of families in their homes and helping millions more to save money by refinancing. But the data clearly show that the market remains extremely fragile,” said HUD Assistant Secretary Raphael Bostic. “While we cannot stop every foreclosure, we know that many responsible homeowners are still fighting to make ends meet. Through the broad range of programs this Administration has put in place, we can put help in reach to those homeowners as early as possible.” (More …)

  
   
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• Homeownership: What Americans Think

  MSC Marketing 10:28 am on March 10, 2011 | Comments:0
  Tags: Buyer information (36), FHA (7), mortgage (61), Seller information (41), Statistics (63)   Filed under: Buyer Info, Federal Goverment, FHA, mortgage, Seller Info, Statistics

  by The KCM Crew on March 8, 2011

  There is a growing number of people debating whether the government should continue its level of support for homeownership. Mortgage assistance is being pulled back and even the mortgage-tax-deduction is now up for debate. We want to look at how the people of this country view owning a home and the reasons they buy. Last week, Fannie Mae released the National Housing Survey. Here are the survey’s more interesting findings.

   

  Belief in Homeownership

  • 96% of all homeowners said homeownership has been a positive experience.
  • 84% of Americans still believe that owning a home makes more sense than renting. Even 68% of renters believe owning makes more sense.
  • 64% consider buying a home as a safe investment. Buying a home was considered safer than buying stocks by over three times the number of people (64% vs 17%).
  • 2 in 3 Americans believe that lifestyle benefits of homeownership (65%) are superior to the financial benefits (32%).

  Top Non-Financial Reasons to Buy a Home

  Lifestyle Benefits: The broader security and lifestyle benefits of homeownership, such as providing a good and secure place for your family and children, where you have the control to make renovations and updates if you want, and in a place that’s in a community and location that you prefer.

  1. It means having a good place to raise children and provide a good education
  2. You have a physical structure where you and your family feel safe
  3. It allows you to have more space for your family
  4. It gives you control over what you do with your living space (renovations & updates)
  5. It allows you to live in a nicer home
  6. It allows you to live in a location that is closer to work, family, or friends

  Top Financial Reasons to Buy a Home

  Financial Benefits: The financial benefits of homeownership: its value as an investment (especially compared to paying rent), its value as a way to build up wealth for retirement or to pass on to your family, and the tax benefit. 

  1. Paying rent is not a good investment
  2. Buying a home provides a good financial opportunity
  3. Owning a home is a good way to build up wealth and pass it along to my family
  4. It is a good retirement investment
  5. Owning a home provides tax benefits
  6. Owning a home gives me something I can borrow against if I need it

  Bottom Line

  The people of this country have always seen great value in owning their own home. They still do. We believe we should never underestimate the importance of homeownership as a crucial piece of the American Dream. 

  http://kcmblog.com/2011/03/08/homeownership-what-americans-think/#more-7429

  
   
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• Was Bailout Not as Costly as Previously Estimated?

  MSC Marketing 8:58 am on March 3, 2011 | Comments:0
  Tags: economy (72), federal (4), goverment, Tax (5)   Filed under: Consumer news and advice, economy, Federal Goverment, Tax, The Economy

  By Jim Puzzanghera

  RISMEDIA, March 3, 2011—(MCT)—Almost three years after a series of government bailouts began, what many feared would be a deep black hole for taxpayer money isn’t looking nearly so dark. The brighter picture is highlighted by the outlook for the bailouts’ centerpiece—the $700 billion Troubled Asset Relief Program. “It’s turning out to cost a lot less than what we all thought at the beginning,” said Ted Kaufman, a former U.S. senator from Delaware who heads the congressionally appointed panel overseeing TARP.

  In mid-2009, the program was projected to lose as much as $341 billion. That’s been reduced to $25 billion—partly because of the controversial decision to pump much of the TARP money into banks instead of launching a large-scale purchase of securities backed by toxic subprime mortgages.

  There is now broad agreement that the bailouts worked, stabilizing the financial system and preventing an even deeper crisis. (More …)

  
   
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• America Needs an Affordable and Adequately Regulated Secondary Market, Says NAR

  MSC Marketing 8:23 am on February 16, 2011 | Comments:0
  Tags: Credit (22), Federal Goverment (4), mortgage (61), NAR (40)   Filed under: Consumer news and advice, Credit, Federal Goverment, mortgage, NAR, National Association of Realtors

  RISMEDIA, February 16, 2011—The National Association of REALTORS® welcomes the Obama Administration’s call for an orderly transition from the current form of the secondary mortgage market to a new structure that would enable Americans to achieve affordable, sustainable mortgages.

  “NAR believes that we cannot have a restoration of the former secondary mortgage market with entities that took private profits while pushing losses onto the taxpayer. The new system must involve some government presence, outside of FHA, USDA, and the Department of Veterans Affairs, to ensure a continued flow of capital to housing markets during economic downturns when large lenders flee the housing market,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., in response to the plan.

  “As the leading advocate for homeownership, NAR recognizes that the existing system failed and that changes are needed to protect taxpayers from an open-ended bailout. We believe there must be a certain level of government participation to provide middle-class families access to affordable mortgages at all times and in all markets,” Phipps said. (More …)

  
   
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• Government Support of Housing Finance to be Gradually Eliminated Over Next Five to Seven Years

  MSC Marketing 8:29 am on February 15, 2011 | Comments:0
  Tags: Buyer info (72), Federal Goverment (4), mortgage (61)   Filed under: Buyer Info, Federal Goverment, mortgage

  By Alan J. Heavens

  RISMEDIA, February 15, 2011—(MCT)—In a move that had been widely anticipated, the Obama administration said last week that it wants to get the government out of the mortgage business by winding down operations at Fannie Mae and Freddie Mac over the next five to seven years.

  “Fundamental reform” is the aim, Treasury Secretary Timothy Geithner said in announcing the plan to not only “shrink the government footprint in housing,” but also “strengthen consumer protection and preserve access to affordable housing for people who need it.”

  The plan calls for:

  -Withdrawing government support of housing finance by gradually eliminating Fannie Mae and Freddie Mac, which would bring private capital back into the market. The government now guarantees nine of every 10 home loans, which Geithner says has discouraged private capital’s return. (More …)

  
   
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• Does Health Care Bill Contain 3.8% Home Sales Tax?

  MSC Marketing 9:09 am on January 27, 2011 | Comments:0
  Tags: Buyer info (72), Consumer news and advice (162), Federal Goverment (4), seller info (62), Tax (5)   Filed under: Buyer Info, Consumer news and advice, Federal Goverment, Seller Info, Tax

  by The KCM Crew on January 26, 2011

  As the states and the new Congress renew the debate about the Administration’s Health Care Bill, we are again getting many questions about a possible 3.8% tax on home sales that some claim is in the bill. To answer these questions, we have decided to re-run a blog post we did last year. – The KCM Crew

  We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.

  A little history on the confusion

  Fact Check.org explains it this way:

  The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home. (More …)