Table Source: Mortgage Success Source
Last week, CoreLogic reported that home prices across the U.S. rose by nearly 12 percent from June 2012 to June 2013. By comparison, home prices only rose 3.76 percent from June 2011 to June 2012. In addition, research and analytics firm Clear Capital said that prices rose 9.3 percent in the year ending in July.
While housing markets have turned the corner, this pace of growth may be unsustainable. With home loan rates rising over the past several months, this rate of appreciation could slow.
Weekly Initial Jobless Claims rose by 5,000 in the latest week to 333,000, below the 340,000 expected. This followed the Jobs Report for July, somewhat disappointing with less jobs created than expected.
What does this mean for home loan rates? When will the Fed start tapering its bond purchases? The Fed has been buying $85 billion of bonds a month to help stimulate the economy and housing market. This includes mortgage bonds, to which home loan rates are tied, and these purchases have helped home loan rates remain attractive.
The Fed has said the rate of its purchases will continue to depend on economic data and could be increased or decreased accordingly. Last week, several Fed members spoke out in favor of tapering these purchases as early as the Fed’s meeting in mid-September. However, with our economy growing at sub 2 percent, economic data between now and September will be a key factor in this decision.
Home loan rates remain attractive compared to historical levels and now remains a great time to consider a home purchase or refinance.
From Weekly Update by Quy Huynh
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An interesting article from CNBC about the national housing market.
John W. Schoen | CNBC | July 30, 2013 at 3:02 PM ET
If you tried to buy a home in Phoenix a year ago, you probably would have been able to land it for well under the asking price.
Those days are gone. In a city that was hit hard after the housing bubble burst in 2007, you’re more likely to encounter a bidding war for that split-level ranch on the cul-de-sac you had your eye on.
Prices have leapt 20 percent in the last year in Phoenix. Real estate agent Tucker Blaylock says they will keep rising as long as interest rates remain near historic lows, thanks to the Federal Reserve. Read more…
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RISMEDIA, Thursday, July 25, 2013—
Existing-home sales declined in June but have stayed well above year-ago levels for the past two years, while the median price shows seven straight months of double-digit year-over-year increases, according to the National Association of REALTORS®.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, dipped 1.2 percent to a seasonally adjusted annual rate of 5.08 million in June from a downwardly revised 5.14 million in May, but are 15.2 percent higher than the 4.41 million-unit level in June 2012. Read more…
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RISMEDIA, Tuesday, July 16, 2013
Homeowners in the U.S. paid a median price of $110,000 for their homes, according to a 2011 American Housing Survey profile released recently. This is an increase of 2.3 percent from the $107,500 reported in the 2009 survey. The median purchase price of homes constructed in the past four years was higher at $235,000, down 2.1 percent from the $240,000 reported for new construction in 2009.
The profile released this week provides information on the nation’s housing costs, mortgages and a variety of other physical and financial characteristics about housing in the U.S. The statistics come from the American Housing Survey, which is sponsored by the Department of Housing and Urban Development (HUD) and conducted by the U.S. Census Bureau, and is the most comprehensive housing survey in the United States. National data are collected every odd-numbered year and metropolitan area data are collected on a rotating basis. The Census Bureau also released profiles for 29 selected metro areas.
“The last five years remind us how central housing is to each of us personally, to the fiscal health of our cities and counties, and the national economy. For 40 years, the American Housing Survey has provided a unique set of data that connects the detailed characteristics of who is living in homes to the detailed characteristics of the homes themselves,” said Kurt Usowski, HUD’s Deputy Assistant Secretary for Economic Affairs. “From the American Housing Survey, we can see why people chose to move, how often homes need repairs, and the extent to which housing costs are outpacing income growth. All this information can help inform policy making around continued recovery in the U.S. and in metropolitan areas around the country.” Read more…
By Nick Caruso
RISMEDIA, Saturday, July 13, 2013— The housing market is on the road to recovery and you know what that means: There is more good news to be shared and celebrated in the industry. According to reports from Kiplinger, 12 metropolitan areas fared the best in 2012, thanks to below-average unemployment rates, an improving economy and increased buyer confidence. All of these factors and more are helping transform these cities into seller’s markets:
• Phoenix, Ariz.
• Provo, Utah
• Cape Coral-Ft. Myers, Fla.
• Minneapolis, Minn.
• Akron, Ohio
• Youngstown, Ohio
• Seattle, Wash.
• Salt Lake City, Utah
• Boise, Idaho
• San Jose, Calif.
• Washington, D.C.
• Tucson, Ariz.
This upturn is without question positive news. According to Pat Esswein, associate editor for Kiplinger’s Personal Finance magazine, there are many positive and healthy drivers aiding in these cities’ turnaround. Read more…
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By Nick Caruso | RISMEDIA, Tuesday, June 25, 2013
The housing market is on the road to recovery and you know what that means: There is more good news to be shared and celebrated in the industry. According to reports from Kiplinger, 12 metropolitan areas fared the best in 2012, thanks to below-average unemployment rates, an improving economy and increased buyer confidence. All of these factors and more are helping transform these cities into seller’s markets:
• Phoenix, Ariz.
• Provo, Utah
• Cape Coral-Ft. Myers, Fla.
• Minneapolis, Minn.
• Akron, Ohio
• Youngstown, Ohio
• Seattle, Wash.
• Salt Lake City, Utah
• Boise, Idaho
• San Jose, Calif.
• Washington, D.C.
• Tucson, Ariz.
This upturn is without question positive news. According to Pat Esswein, associate editor for Kiplinger’s Personal Finance magazine, there are many positive and healthy drivers aiding in these cities’ turnaround. Continue reading…
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