CNN recently ran this story. Lower rates equal lower monthly payments. Together with lower home prices the market is looking good for buyers.
NEW YORK (CNNMoney) — The nation’s extremely favorable mortgage rates sank even lower this week, setting records for both the 30-year and 15-year fixed rate loans.
The 30-year fell to 3.31% from 3.34% last week, according to Freddie Mac(FMCC, Fortune 500), the government controlled mortgage backer. The 15-year rate averaged 2.63%, compared with 2.65% a week ago.
According to Keith Gumbinger, vice president of mortgage information company HSH Corp., the current conditions mean it may make sense for current mortgage borrowers and new home buyers to look at shorter-term loans.
“If you’re looking for Black Friday deals and door-busters, it’s pretty hard to beat the savings,” he said. “To really rack up savings, you might also consider a purchase or refinance using a loan with a term shorter than the traditional 30 years.”
The numbers add up like this: Homeowners current paying off 30-year loans with rates of 4% spend about $1,098 a month in mortgage payments on a $200,000 balance, paying a total interest cost of $143,739.
Refinancing at 2.63% for 15 years would cost them about $250 a month more, but they would wind up paying just $42,250 in total interest and their payments would end years earlier.
Refinancing into another 30-year loan at 3.31% would cost homeowners only $877 a month, saving $221 from the existing loan. But the total interest paid would come to $115,725 over the life of the loan, a difference of more than $73,000 compared with the 15-year mortgage.
Low interest rates are very helpful to the housing market by slashing the monthly costs of ownership, which homebuyers often focus on when calculating if they can afford to buy a home. With home prices also down about 30% from their recent peak, according to the S&P/Case-Shiller home price index, and employment numbers gradually improving, affording a home has rarely been easier.
The report adds to other recent good news for housing markets, with with existing home sales, prices and new construction all recording upticks.
By Les Christie @CNNMoney November 21, 2012: 11:02 AM ET
Condo Market Remains Strong
Naples, FL (November 16, 2012) – The single family home median closed price rose 10 percent overall with increases in all zip codes for the 12-months ending October 2012. In addition, the condominium median closed price increased 4 percent in all zip codes for the same time period, according to a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
The NABOR® October report provides annual comparisons of single-family home and condominium sales (via the SunshineMLS), price ranges, and geographic segmentation and includes an Overall Market summary.
The NABOR® October sales statistics are presented in chart format, with these overall (single-family and condominium units) specifics:
– The overall median closed price increased 11 percent from $177,000 at the end of October 2011 to $197,000 for the 12-month period ending October 2012.
– Overall pending sales increased 21 percent in the $500,000 to $1 million category, from 947 units to 1,149 units, for the 12-month period ending October 2012. Overall pending sales increased 17 percent in the $1 million to $2 million category, from 418 units to 490 units, for the 12-month period ending October 2012.
– Overall inventory decreased by 13 percent, from 7,325 listed properties in October 2011 to 6,409 in October 2012. Pending sales with contingent contracts are included in the overall inventory number.
– The average DOM (Days on the Market) fell in all price segments except in the $0 – $300,000 price zone, resulting in a one percent increase from 169 days on the market in October 2011 to 170 days on the market in October 2012.
– Overall pending sales in the Naples coastal area increased 14 percent from 1,783 units to 2,037 units, and closed sales increased 10 percent, from 1,615 units to 1,776 units, for the 12-month period ending October 2012.
The result of the inventory decline from 12,157 in February 2007 to 6,409 in October 2012 is that buyers, in many cases, are desperate for inventory,” said Jo Carter
To view the entire report, visit www.NaplesArea.com
The Naples-Marco Island metro area is projected to grow more strongly than approximately twelve other Florida metro areas. A recent report issued by the University of Central Florida’s Institute for Economic Competitiveness indicates the highest personal income growth of 5.7 percent in the reports 12 metro areas.
In addition the Naples-Marco Island metro area is expected to have a high average wage growth rate of 2.7 percent and average 1.9 percent population growth. A 2.7 percent employment growth leads the areas in the study. A 8.3 unemployment rate is also forecast.
Southwest Florida International Airport has announced a new nonstop service to Wisconsin. MetJet will offer a weekly Wednesday flight to Green Bay’s Austin Straubel International Airport.
Contact www.metjet.net/wherewefly.asp or 1-855-563-8538 for more information.
With Collier County showing an approximately 30% increase in building permits, many new construction projects are coming:
a) New 1,800 acre community being developed by Taylor Morrison. Located on the Northwest intersection of Collier Blvd. and Immokalee Roads, the development will have approximately 1,100 homes with an 18
hole championship bundled golf course.
b) Riverstone by G.L. Homes opened off Immokalee Road (North Naples) in January 2012 and has sold over 150 homes.
c) Hacienda Lakes is a new 1,700 home development located at the intersection of Rattlesnake Hammock Road and Collier Blvd.
d) Canadian builder Minto has announced the 2,300 acre – 1,600 home Sabal Bay in Naples and Bonita Isles in Bonita Springs.
e) Toll Brothers has opened Bonita Lakes on Imperial Pkwy. in Bonita Springs
f) There is a resurgence of construction within Fiddler’s Creek, Twin Eagles, and Treviso Bay.
g) ***Stock Construction has just completed the purchase of all remaining lots (100plus) in Quail West and plans to complete the community. I just finished a private tour and viewed the new models and neighborhoods.
Price range is approximately $850,000 to multi millions. Two story clubhouse is dramatic. Contact me for more details pertaining to the golf course, fees, etc.
