San Diego Realtors at Americorp Comment on Fannie Mae Survey Revealing …
San Diego Short Sale Specialist
This 40 percent figure represents the highest level of confidence experienced by home sellers since Fannie Mae began to release this survey three years ago.
San Diego, California (PRWEB) June 19, 2013
The San Diego realtors at Americorp Financial Realty Services provide a wide array of real estate-driven help to clients in San Diego County. The firm helps homeowners sell their homes, they help people with short sales of their homes and they assist with VA loans. The team at Americorp would like to comment on the results of a recent survey that was completed by Fannie Mae regarding the level of confidence currently enjoyed by people who would like to sell their homes.
According to Fannie Mae’s Monthly National Housing Survey, which was published in the beginning of June and centered on statistics regarding the national real estate market in May of 2013, 40 percent of survey respondents felt confident about their ability to sell their homes. That number stood at 30 percent in April of 2013 and it came in at 24 percent during May of 2012. This 40 percent figure represents the highest level of confidence experienced by home sellers since Fannie Mae began to release this survey three years ago.
In addition to the rising level of confidence in home sellers, home buyers also showed an increase in this attitude according to the results of this survey. A total of 66 percent of those surveyed believe that now is a good time to purchase a home. This number also represents the highest percentage in terms of home buyer confidence in the three-year history of Fannie Mae’s monthly housing survey.
The San Diego realtors at Americorp Financial Realty Services, in their work in helping homeowners sell their homes, have experienced this uptick in confidence on both sides of these potential transactions. The team at Americorp feels that this is a strong time to sell a home for many reasons and that those who are considering such a step should look more deeply into this possibility.
About Americorp Financial Realty Services
Americorp Financial Reality Services is a team of San Diego realtor professionals who help homeowners list and sell their homes across San Diego County. The team has been successfully selling homes since 1992 and Americorp Financial Realty Services has maintained an A+ rating with the Better Business Bureau.
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San Diego Realtors at Americorp Comment on Fannie Mae Survey Revealing Surging Confidence in Home Sellers
San Diego Short Sale Specialist
This 40 percent figure represents the highest level of confidence experienced by home sellers since Fannie Mae began to release this survey three years ago.
San Diego, California (PRWEB) June 19, 2013
The San Diego realtors at Americorp Financial Realty Services provide a wide array of real estate-driven help to clients in San Diego County. The firm helps homeowners sell their homes, they help people with short sales of their homes and they assist with VA loans. The team at Americorp would like to comment on the results of a recent survey that was completed by Fannie Mae regarding the level of confidence currently enjoyed by people who would like to sell their homes.
According to Fannie Mae’s Monthly National Housing Survey, which was published in the beginning of June and centered on statistics regarding the national real estate market in May of 2013, 40 percent of survey respondents felt confident about their ability to sell their homes. That number stood at 30 percent in April of 2013 and it came in at 24 percent during May of 2012. This 40 percent figure represents the highest level of confidence experienced by home sellers since Fannie Mae began to release this survey three years ago.
In addition to the rising level of confidence in home sellers, home buyers also showed an increase in this attitude according to the results of this survey. A total of 66 percent of those surveyed believe that now is a good time to purchase a home. This number also represents the highest percentage in terms of home buyer confidence in the three-year history of Fannie Mae’s monthly housing survey.
The San Diego realtors at Americorp Financial Realty Services, in their work in helping homeowners sell their homes, have experienced this uptick in confidence on both sides of these potential transactions. The team at Americorp feels that this is a strong time to sell a home for many reasons and that those who are considering such a step should look more deeply into this possibility.
About Americorp Financial Realty Services
Americorp Financial Reality Services is a team of San Diego realtor professionals who help homeowners list and sell their homes across San Diego County. The team has been successfully selling homes since 1992 and Americorp Financial Realty Services has maintained an A+ rating with the Better Business Bureau.
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The Fannie Mae/Freddie Mac Dilemma Won’t End Soon
The U.S. Treasury is in a bind. Everyone seems to agree that Fannie and Freddie, wards of the government, should be downsized. But how to do it without damaging the housing recovery? Extreme conservatives even want to abolish them, along with the Federal Reserve, Departments of Commerce, Education, etc., etc. That isn’t practical, of course–especially abolishing Fannie and Freddie because they currently supply more than 90 percent of all mortgages!
That is one reason even a hint by Fed Chairman Bernanke and others that the Fed might “taper” QE purchases has caused interest rates to rise sharply. Because former Goldman Sachs chief economist Jim O’Neill and others have trumpeted that bond interest rates could reach 4 percent, if and when the Fed slows its QE purchases, returning to “more normal valuations” when the economy does recover.
This in turn means that mortgage rates would return to their recent 6 percent range for conforming 30-year fixed rates, from today’s 4 percent. But that would be devastating to a recovering housing market. Household incomes are still stagnant–in fact have been for the past 30 year, when accounting for inflation.
Keeping interest rates so low has made housing more affordable at these lower income levels. That is the major reason for the Fed’s QE3 buying program.
The Fed has also said unemployment has to fall further, as we have said, and there are few signs that GDP growth will be more than 2 percent this year.
Bond investors also watch inflation, and right now inflation is falling. It is currently 1 percent, which is 1 percent below the Fed’s target of 2 percent. So why would the Fed even begin to “taper” their $85 billion per month in security purchases when neither is happening; and real estate is at the beginning of its recovery?
And sure enough, the Fed has just hinted in a recent Wall Street Journal Op-ed by John Hilsenrath that they aren’t in a hurry to taper their QE3 purchases–just yet. “The Fed, he (Bernanke) said in his March press conference and again at testimony to Congress last month, expects a “considerable” amount of time to pass between ending the bond-buying program and raising short-term rates. He seems likely to press that point at his press conference next week, given that the markets are telling him they don’t believe it.”
“In recent years, the search for yield has gone wider and deeper,” said O’Neill. “The resulting deviation from normal valuations has been amplified by the shift of pension funds and insurance companies out of equities into fashionable bonds, and by the lingering effects of the great financial crisis of 2008 and 2009. It seems inevitable that some version of the shock of 1994 is going to happen again.”
What “shock of 1994″? That was when Orange County went bankrupt because then Fed Chairman Greenspan boosted interest rates abruptly in the spring of 1994, after holding them at record lows in 1992-93, to cure the 1991 recession. But Greenspan did it without any warning, which is why Orange County lost so much money betting that interest rates would continue to fall.
So, really the panicked selling of stocks and bonds, and recent rise in interest rates are a sign that economic growth is still fragile, so that even a hint of credit tightening will depress markets. It is the Federal Reserve that is goosing growth, after all, especially in the real estate sector.
Corroborating the Fed’s efforts are Southern California home sales at the highest since May 2006, reports DataQuick, The median price paid for all new and resale houses and condos sold in the six-county Southland was $357,000 last month, up 23.1 percent from $290,000 in April 2012, and the highest since June 2008, when the median was $360,000. “What seems obvious is that if prices keep rising fast they’ll cause many more people to list their homes for sale,” said DataQuick President John Walsh.
But that can’t happen if interest rates continue to rise as quickly–and certainly not if they return to more “normal valuations”, per O’Neill. So government shouldn’t be in a hurry to downsize Fannie and Freddie, either, since it doesn’t look like Wall Street or the banks are willing to support the housing market without Fannie and Freddie’s help.
Harlan Green © 2013
Follow Harlan Green on Twitter:
www.twitter.com/HarlanGreen
Better Business by Robb Hicken: Hire the right real estate agent to sell your home
The National Association of Realtors’ quarterly report shows current pending home sales increased in the first quarter of 2013. But in the West, supply is holding sales back.
A few trends emerging at Better Business Bureau this past quarter are mortgage/financing problems, foreclosure issues, bidding wars and real estate agent problems.
Financing a mortgage can be complicated or easy. It begins with a trustworthy lender. Although a majority of mortgage lenders are trustworthy, the best way to gain peace of mind during this process is to be prepared and ask questions.
Foreclosure problems, either for seller or buyer, can be resolved by speaking to the right person.
Bidding wars are used on both ends of the sale – remember, it all hinges on location. If you’re selling, create a website for your home. Stage the home – presentation is a differentiator. Talk with a listing agent to establish a relative asking price. Host an open house. Get an agent who works for you. Do your homework and check into the agent’s background.
Other tips:
Ask for referrals. Ask friends and family members who have recently bought or sold their homes for recommendations. Ask if they were satisfied with their experiences and if they would use their agents or companies in the future. Look for residential agents and companies in the area so they will be knowledgeable about the neighborhood and the community.
Interview candidates. Once you have assembled at least four prospective agents, schedule a time to meet with them in person. If you are selling your home, each agent will make a listing presentation. This presentation allows you to become familiar with an agent’s background, marketing plan and market analyses that include information about similar houses in your area that have recently sold. Make sure to find out how long the agent has been practicing, how long he or she has been with their company, and if he or she works full or part time.
Request references. Ask an agent to provide a list of references who have previously used the agent’s services to buy or sell similar types of properties. Ask the references about their experiences with the agent. Check out the agency/brokerage at bbb.org and the Idaho Real Estate Commission, irec.idaho.gov.
Ask if the agent is a Realtor. A real estate agent is required to take real estate courses and pass a licensing exam before practicing. Every Realtor has taken the same courses and passed the same exam, but a Realtor is a member of the National Association of Realtors, or NAR. That is recommended.
Discuss compensation. Usually agents and Realtors are paid through commission. The fee is usually 5 percent to 7 percent of the selling price but may vary from area to area. The percentage of the commission fee can sometimes be negotiated depending on the housing market.
Carefully read the contract. Be wary of agents who pressure you to sign documents immediately. Carefully and completely read the documents and make sure the agent clearly answers any of your questions. If you are selling your home, usually you sign a contract granting the agent exclusive rights to sell your property within a period of time.
rhicken@boise.bbb.org, 947-2115
Higher Mortgage Rates Won’t Hurt Housing Affordability: Freddie Mac
NEW YORK (TheStreet) — Mortgage rates will have to rise as high as 7% before home purchases becomes unaffordable in most parts of the country, according to economists at housing giant Freddie Mac.
The economists estimate that median-income families can afford to purchase a median-priced home with a 10% down payment and a 30-year fixed-rate mortgage in most parts of the country with the exception of some high-cost markets (primarily San Francisco south to San Diego, and Washington, D.C., north to Boston).
Affordability is calculated by requiring that principal, interest, taxes and insurance not exceed 28% of gross monthly income.
According to the economists, most of these markets can easily absorb the impact of higher interest rates without derailing the housing recovery.
Here’s a chart on how rising interest rates impact affordability in the top 30 metros.
“With homebuyer affordability remaining very high, we expect that rising interest rates will have only a small, slowing effect on the home purchase market,” economists Frank Nothaft and Leonard Kiefer wrote in a report.
Ultra-low mortgage rates has helped fuel a housing recovery over the past year. In recent months, however, a blend of fear that the Federal Reserve will ease its quantitative easing program and improving confidence in the economy has sent interest rates higher.
The 30-year mortgage rate has moved from about 3.4% to about 4% since May. The speed of the rise in rates and the likelihood of further increases as the economy improves have raised concerns about the sustainability of the housing recovery.
But the Freddie Mac economists believe the concerns are overdone with real interest rates — interest rates adjusted for inflation — still half of what they were prior to the recession. The recent capital market action will, if anything, draw buyers into the housing market. “The capital-market signal is that rates are up from the cyclical trough and are likely to move gradually higher in the coming year. In the short term this may spur renters and other first-time homebuyers who have the financial capacity, to get off the fence and buy a home before financing costs go higher,” they wrote.
The outlook for refinancing is however much more pessimistic, given that it is a lot more rate-sensitive. The economists expect refinancing volume to touch $1.1 trillion in 2013, down from $1.5 trillion in 2012.
The economists cite Bureau of Economic Analysis data that shows the average effective interest rates on mortgages to be 4.7%, less than a percentage point higher than the 30-year rate Freddie Mac fixed-rate mortgage rate of 4%. The slim differential may reduce the incentive to refinance.
– Written by Shanthi Bharatwaj New York.
Contact by Email.
Realtors(R) Call for Legislative Changes to New Rules Limiting Affordable Borrowing Options
WASHINGTON, DC–(Marketwired – Jun 18, 2013) – Congress should consider redefining the new ability-to-repay requirements for Qualified Mortgages to avoid limiting affordable borrowing options for creditworthy buyers, said the National Association of Realtors® today in testimony before the House Financial Services Committee.
NAR President Gary Thomas implored Congress to revisit the definition of fees and points applied to affiliated mortgage lenders that require the counting of title company charges, the amount of homeowner’s insurance held in escrow, loan level price adjustments, and payments made by lenders in wholesale transactions towards the 3 percent cap in the QM rule. Thomas said the current calculation of fees and points discriminates against affiliated title companies, small and mid-size lenders, community banks and credit unions.
“Many of the mortgages available from affiliated businesses might not qualify as a QM without a higher interest rate,” said Thomas, broker-owner of Evergreen Realty, in Villa Park, Calif. “As the leading advocate for housing issues, NAR is committed to working with Congress to fix the unintended consequences of the ability-to-repay rule. To that end, NAR supports the bipartisan H.R. 1077/S.949, the Consumer Mortgage Choice Act, which would address the problematic fees and points definition and ensure broad consumer choice and access to safe, affordable mortgages.”
In his testimony, Thomas said that H.R. 1077 is essential to maintain competition and consumer choice in mortgage origination. Without this legislation, one-quarter to as much as one-half of loans currently being originated by affiliated lenders would likely not be eligible for the QM safe harbor, he said. Consequently, those loans would likely not be made or would be concentrated amongst the largest retail lenders, thereby limiting consumer choice.
Thomas said another area of concern about QM underwriting standards is the 43 percent debt-to-income limit on jumbo and non-government backed loans. He said it is particularly problematic in high cost areas where high-income borrowers are more likely to obtain jumbo financing. Thomas urged support for greater flexibility with regard to DTI limits so that credit would not be restrained in high cost communities.
Thomas also urged Congress to support regulatory changes to the proposed Qualified Residential Mortgage standards to substantially mirror the broad QM definition. NAR believes that this would prevent possible issues with creating another class of loans, such as those that are QM but not QRM, which could affect their overall marketability and cost.
“Congress and the Consumer Financial Protection Bureau have done important work to protect consumers from predatory lending products and processes that led to the mortgage crisis,” said Thomas. “Now is the time for additional steps to improve the QM and align the QRM with it so that consumers who have the ability to repay their loans will have access to affordable credit.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the “News, Blogs and Video” tab on the website.
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Realtors® Call for Legislative Changes to New Rules Limiting Affordable …
WASHINGTON, DC – June 18, 2013 – (RealEstateRama) — Congress should consider redefining the new ability-to-repay requirements for Qualified Mortgages to avoid limiting affordable borrowing options for creditworthy buyers, said the National Association of Realtors® today in testimony before the House Financial Services Committee.
NAR President Gary Thomas implored Congress to revisit the definition of fees and points applied to affiliated mortgage lenders that require the counting of title company charges, the amount of homeowner’s insurance held in escrow, loan level price adjustments, and payments made by lenders in wholesale transactions towards the 3 percent cap in the QM rule. Thomas said the current calculation of fees and points discriminates against affiliated title companies, small and mid-size lenders, community banks and credit unions.
“Many of the mortgages available from affiliated businesses might not qualify as a QM without a higher interest rate,” said Thomas, broker-owner of Evergreen Realty, in Villa Park, Calif. “As the leading advocate for housing issues, NAR is committed to working with Congress to fix the unintended consequences of the ability-to-repay rule. To that end, NAR supports the bipartisan H.R. 1077/S.949, the Consumer Mortgage Choice Act, which would address the problematic fees and points definition and ensure broad consumer choice and access to safe, affordable mortgages.”
In his testimony, Thomas said that H.R. 1077 is essential to maintain competition and consumer choice in mortgage origination. Without this legislation, one-quarter to as much as one-half of loans currently being originated by affiliated lenders would likely not be eligible for the QM safe harbor, he said. Consequently, those loans would likely not be made or would be concentrated amongst the largest retail lenders, thereby limiting consumer choice.
Thomas said another area of concern about QM underwriting standards is the 43 percent debt-to-income limit on jumbo and non-government backed loans. He said it is particularly problematic in high cost areas where high-income borrowers are more likely to obtain jumbo financing. Thomas urged support for greater flexibility with regard to DTI limits so that credit would not be restrained in high cost communities.
Thomas also urged Congress to support regulatory changes to the proposed Qualified Residential Mortgage standards to substantially mirror the broad QM definition. NAR believes that this would prevent possible issues with creating another class of loans, such as those that are QM but not QRM, which could affect their overall marketability and cost.
“Congress and the Consumer Financial Protection Bureau have done important work to protect consumers from predatory lending products and processes that led to the mortgage crisis,” said Thomas. “Now is the time for additional steps to improve the QM and align the QRM with it so that consumers who have the ability to repay their loans will have access to affordable credit.”
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
Media Contact:
Jenny Werwa / 202-383-1193
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Company opens new headquarter offices in West Chester Twp.
A real estate services company has moved its headquarters from Sharonville to Butler County, and celebrates the opening of the new facility Friday, according to a corporate announcement and township officials.
The company is SentriLock LLC, which makes electronic lockbox systems for the real estate industry.
SentriLock is a subsidiary owned by National Association of Realtors.
The new headquarters building at 7701 Service Center Drive in West Chester Twp. is a larger space than the company had before, SentriLock said. About 100 existing employees moved with the company from Hamilton County to Butler County. SentriLock officials said the company anticipates creating up to 30 new jobs in the next three to five years.
“The new headquarters more than doubles SentriLock’s previous square footage and will accommodate the company’s corporate offices and manufacturing, repair and customer service operations,” reads SentriLock’s announcement released Tuesday.
SentriLock bought the building in November 2012 for $3.6 million, according to property records from the Butler County Auditor’s Office.
The company lists its address as 2710 East Kemper Road on its website.
Company officials could not be reached Tuesday. On Friday, the CEO of National Association of Realtors Dale Stinton and SentriLock CEO Scott Fisher will make a public presentation to celebrate the new facilities.
SentriLock has more than 675,000 lockboxes in use by 250,000 real estate agents in the United States and Canada.
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