After several positive housing reports released this month, the National Association of Realtor’s Pending Home Sales Index decreased 3.5% in December. Since it tends to be a slow month for housing due to several holidays, this report should not come as a shock. According to the Commerce Department, New Home Sales were also down 2% for the month of December. For another week, while mixed reports flourish, mortgage rates have remained low and stable according to Freerateupdate.com’s weekly survey of wholesale and direct lenders. Borrowers are still looking at all time low mortgage rates with 30 year fixed conforming mortgage rates at 3.500%, 15 year fixed mortgage rates at 2.875% and 5/1 adjustable mortgage rates at 2.250%. Good credit is essential in order to receive these lowest mortgage rates with 0.7 to 1% origination fee. Last week, the Federal Housing Finance Agency’s Home Price Index showed an increase of 1% from October to November on a seasonally adjusted basis. Any increase needs to be taken seriously by potential home buyers who want to get in at the lowest possible home price.

FHA may see an increase in mortgage loans now that the higher loan limit is in place for borrowers who would otherwise need to obtain a jumbo mortgage. Current FHA 30 year fixed mortgage rates are at 3.250%, FHA 15 year fixed mortgage rates are at 2.750% and FHA 5/1 adjustable mortgage rates are at 2.750%. FHA mortgage rates are not risk based and, therefore, are not affected by credit scores. Credit scores are used only to determine the required down payment which is either 3.5% with a score as low as 580 and 10% with scores between 500 and 580. FHA mortgages still allow down payment assistance from several sources such as approved gifts and housing grants and loans. Co-borrowers can also be used to strengthen the mortgage application. FHA offers several different types of loan programs and options which make up for the higher FHA closing costs (APR) which is caused by the upfront mortgage insurance premium and other FHA fees.

Once again, jumbo 30 year fixed mortgage rates dropped back down to 4.125%, a decrease of .125%. Jumbo 15 year fixed mortgage rates are at 3.375% and jumbo 5/1 adjustable mortgage rates are at 2.500%. It is necessary for borrowers to have excellent credit to secure these lowest jumbo mortgage rates with 0.7 to 1% origination fee. Stricter guidelines for jumbo mortgage approval are set by lenders, who do so in order to reduce their risk, since these are considered portfolio loans. Lenders look for long term, steady employment that must be fully documented and verified. Assets, although not necessarily cash, must be substantial to cover the larger down payment requirements and additional months of reserves that are necessary.

Since mortgage rates move in the opposite direction of MBS prices, it is not a surprise that mortgage rates have remained intact. MBS prices were mostly up this week as investors turned to the safety of U.S. debt. European financial talks, that are not producing any definite results, are keeping investors on the edge. The Fed’s announced last week that they plan to keep rates low through 2014 which is longer than anyone expected. Durable Goods rose higher than expected in December. Jobless claims increased according to the Labor Department, but was close to predictions. A weaker than expected GDP report disappointed investors, but Consumer Sentiment and Personal Income was higher than predictions. Core PCE price index rose 0.2% in December. The flow of mixed reports has investors cautious, but on the other hand, is keeping mortgage rates down.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.

Published: February 1, 2012

More than ever having a healthy credit score is important. It may mean the difference between securing a home loan or not. Don’t let old debts or an inaccurate report stand in your way of taking advantage of historically low interest rates and great deals on housing.

The first order of business is to arm yourself with the facts. What is the state of your credit report and score? You can visit annualcreditreport.com three times a year for free to view your credit report. You will have to pay a nominal fee in order to view your score.
Once you have accessed your report be sure to check it over carefully for errors.
Correcting the errors is a bit time consuming, but worth the effort. Make sure that only the name you use is on the report and that there are no variations.
Now that your existing report is in good working order and safeguarded from theft, it’s time to start making repairs. First reduce the amount of hard inquiries. The home buying process is not a time to start opening new accounts and lines of credits.
Resist the urge to buy high ticket items, such as a new car, furniture or other items that will put a strain on your credit cards. Wait to make those purchases after you’ve closed on your home.
Start paying down balances on credit cards. While some revolving accounts like car payment and home mortgages show you are a responsible borrower, having high balances on your cards dramatically reduces your score.
The key is to start paying down balances. Once you’re positive that your mortgage and loans are in place you can then consider closing card accounts.
Next, never pay late. If you need to set up payment reminders or automatic withdrawals for certain bills in order to pay on time then by all means do it. If you fear that you will miss a payment or will be late be sure to contact lenders or creditors before this happens. Many lenders will work with you without reporting the missed month to the credit bureaus. Every reported late payment docks your score and stays on your report for years.
Finally, pay off debt instead of moving it from one card to another. It might be tempting to put this debt on that card and so on, but that doesn’t remove the history from your credit report. In fact, if you have now opened a new card, you might have just dinged your score.
Responsible spending and payments are how you build a credit report. There is no overnight fix to a score (don’t buy into those scams)! Do your work to pay down debt and over the next months and years your credit score will soar.

Naturally, more jobs should mean more home sales.  However, that relationship does not always hold up if mortgage availability or consumer confidence move in a less favorable direction.  In the past few years, jobs have been added and rates have been falling, but home sales have barely moved up.  Consider that from the cyclical low point for jobs in America in early 2009 (3 years ago), the total net payroll job additions have been 2.7 million.  But home sales in 2011 came in at 4.26 million — not that much different from the 4.34 million existing home sales figure in 2009 and the 4.19 million tally in 2010.

What was happening to consumer confidence over this time period?  Despite the job creation, consumer confidence as measured by the Conference Board has been moving along sideways.  The ticks, both upward and downward, to confidence look to have impacted the home sales in the same direction.

This time last year, the consumer confidence index reached 72 before sliding down.  But towards the end of 2011 there was some revival in confidence, which presumably also brought about an upward trend to home sales.  Let’s hope that consumer confidence this year does not replicate last year’s pattern of sliding down after a good start.

As a Myrtle Beach home seller you might be wondering if you should put your home on the market now or wait till Spring. The answer is why wait? If you are interested in selling your home put it on the market now!

Here are the reasons why:
1.    Less competition: Most home sellers are waiting for the “selling season” to begin. By putting your home on the market early, buyers will have less to choose from and your home will stand out.

2.    Interest Rates: They are still at historical lows. Buyers are out looking at homes now and taking advantage of these terrific interest rates

3.    Buyers are out home shopping now: Home Buyers and investors are out in force.

If you are a home seller and are serious about selling your home don’t wait! Remember to price it right, have good home staging and make sure the exterior areas are in good shape and offer “curb appeal”. Most importantly, consult a REALTOR® whenever you sell a home. They have the expertise to help you price it correctly and get it sold!

Read more: http://www.houselogic.com/home-advice/tax-deductions/tax-deductions-vacation-homes/#ixzz1kRIPgIlS

From  Real Estate Briefings www.realestatebriefings.com

by Phoebe Chongchua

Real estate agents use comparable sales or “comps” (properties recently sold in the area) to see what the market bears for a listing price or value range marketing.

But what makes a home a good comp? A few things must line up in order for the agent to utilize the comp to justify your listing price. The same neighborhood, school district, similar street and, of course, similar housing features and size. If these things align, then a comp can be used to provide a current estimated value of your home.

Ideally, using a comp from a home that is the same model in the same subdivision is key. Even better is if a sold comp closed escrow very recently. Taking comps from many weeks or months before can weaken the comp.

The expertise of a highly knowledgeable real estate agent can save you many hours of research and headaches. Most people don’t really know how to compare real estate properties, which is why they hire an agent. Good agents take the work out of selling your home and give you solid reason to understand why the agent is pricing the home at a particular price.

Location, upgrades, amenities, sale date, extras, foreclosures, short sales, and unique nuances of the home all affect the listing price and how your home is compared to a comp.

Taking a closer look at each of these shows exactly what people in your area might be looking for when it comes to buying a home. For instance, a higher price on a home that has a pool can indicate that this is a family neighborhood and buyers put an increased value on amenities that create family/social fun. Your home may not have a pool but it might have another type of amenity: tennis courts, gym, or putting green.

Agents look at both what is similar and what makes your home stand out. They search for the best characteristics to showcase and, when comparing your home to others that have sold, they look to see how yours stacks up from a buyer’s perspective.

Agents can add value to a home that might not have, say, for instance, the pool. Instead, your home might have an extra bedroom or den complete with floor-to-ceiling, high-quality bookcases.

Reviewing the comps can provide a lot of insight about sales in your neighborhood. Physically viewing the properties can be even more eye-opening. Agents who routinely work in the neighborhood may have an excellent grasp of which homes will sell fastest. It’s not a lucky guess.

They’ve been inside these homes and have seen the notable upgrades or the tragic flaws of a home. They also know which homes were foreclosures or short sales. Generally, a foreclosed home is in poor condition. However, a short sale can be in much better condition. Both of these sales are at discounted rates. So, if a comp is used from one of these types of sales, your agent will take careful consideration to evaluate the distinct differences that may increase the value and, ultimately, the listing price on your home.

Daily Real Estate News | Friday, January 20, 2012

Fallen home prices and record-low mortgage rates have pushed housing affordability to a 40-year high. Meanwhile, rental prices are continuing to rise at a fast pace, according to a new report released by Hotpads.com, a rental listing service.

Rental prices in 20 of the largest metro areas increased 3.75 percent in 2011, and prices are expected to continue to rise in 2012. Meanwhile, home prices fell by 1.83 percent in 2011, according to the report.

“In a lot of cases it’s getting to a point where it makes more sense for people to buy because rent has been going up significantly faster, while home prices have been falling,” Paul Gleger, author of the report, told AOL Real Estate.

According to the report, New York has the highest rental prices, with a two-bedroom apartment’s median rent at $2,653. Other cities posting some of the highest median rents in the country: Boston ($1,929), Miami ($1,748), San Francisco ($1,607), Los Angeles ($1,717) and Chicago ($1,552).

Source: “U.S. Rental Market Stays Hot in 2011,” Hotpads.com (January 2012) and “Rental Prices Climb, Buying Remains More Affordable,” AOL Real Estate News (Jan. 18, 2012)