Economy Still Driving Low Mortgage Loan Interest Rates

Despite the pall and gloom surrounding the nation’s real estate market, there are pockets across the country showing some recovery signs. A new economic index released by the National Association of Home Builders measuring improvement in areas such as housing permits, employment and housing prices for at least six months found a string of cities slowly emerging from the housing slump. On the spotlight are: Alexandria, LA; Anchorage, AK; Bangor, ME; Bismarck, ND; Casper, WY; Fairbanks, AK; Fayetteville, NC; Houma, LA; Midland, TX; New Orleans, LA; Pittsburgh, PA and Waco, TX. “By examining key indicators of home prices, employment and housing permits data, we are using a comprehensive, but conservative method in determining which markets are improving,” said NAHB Chief Economist David Crowe in a press release. “Last year at this time, there was not a single market that showed improvement using these criteria, and now we can point to 12 examples of growth.” Crowe said many of the states represented in the list were energy-rich areas with strong employment driving housing demand. Whatever the reason, any sign of growth is a bonus these days and we can all surely hope that the good showing in these cities would rub off on its neighbors.

Low Mortgage Loan Interest Rates Continue

Yet more nudging for potential homebuyers from the mortgage industry. Mortgage loan interest rates plummeted to the lowest level in four decades this week, according to Bloomberg. The average rate for a 30-year fixed loan slid 4.12 percent, down from 4.22 percent earlier, according to Freddie Mac. That’s the lowest in the company’s history since 1971, according to Bloomberg. The average rate for a 15-year fixed loan tumbled to 3.33 percent. But are homebuyers getting lured by the attractive interest rates? Apparently not, according to Patrick Newport, economist at IHS Global Insight. “The reason interest rates are dropping recently is that the outlook for the economy has gotten weaker,” Newport told Bloomberg. “A smart person would be very careful about buying a home unless he thinks his job is very secure.” Looks like a lot of people are considering the economic outlook. According toMortgage Bankers Association, applications for mortgages decreased 4.9 percent in the week ended Sept. 2.

Refinancing Mortgage Loans May Not Work

Remember all that talk about making refinancing easier and stimulating the dreary housing market? A recent report by the non-partisan Congressional Budget Office said that it would “not address many of the problems facing the U.S. Housing market,” and the benefits would be not as significant when compared to the size of the housing market, the mortgage industry and the overall economy. The plan would be expensive for mortgage investors even though it would help borrowers and lower federal guarantee costs, the report said. The CBO paper would ruin the chances of an already shaky Team Obama finding broad support for its refinancing proposal, according to Reuters. The White House plan aims at cutting borrowers’ monthly payments and increasing their cash on hand. CBO estimated that it would provide $7.4 billion in savings for borrowers in the program’s first year, but private investors would take a hit of $13 billion to $15 billion. From the looks of it, it seems highly unlikely that the White House’s proposal will find supporters in Washington. We all may have to wait for some more new ideas to come through.

Group Warns Against Further Housing Market Decline

Consumer advocacy group National Mortgage Complaint Center wants Congress to act on legislation to restore buyer tax credit. The group, which follows and responds to complaints in the residential real estate market, is asking all qualified buyers be offered a tax credit. The group came down heavily on the Obama administration, calling the President’s attempts to help homeowners in foreclosures or loan modifications “an utter failure and a waste of taxpayer money.” "We desperately need to stabilize the US residential real estate markets, and we think restoring the Federal Tax Credit for a home purchase would a huge step in the right direction,” the group said in a press release. NMCC suggests that the tax credit be increased to $15,000 and should apply to everyone including investors.

Information on Wheaton Homes For Sale and Glen Ellyn Homes For Sale provided by Katie Oakes Professional Resume at Keller Williams Premiere Properties. Visit WheatonHomes4Sale.com now to start viewing homes for sale in your area.

How do I Find out How Much a House in My Neighborhood Sold For?

A CMA will Show what Prices Houses Sold for in Your Neighborhood

If you’re looking to sell your home, a real estate agent will be able to give you the prices houses sold for in your neighborhood. This will help you determine how much you should list your home for.

If you’re selling your home, you need to get the best and most accurate pricing data you can find. The best way to do that is by contacting a real estate agent. There is typically no charge for getting specific information on how much houses in your neighborhood sold for. A realtor will go through your home and provide a Comparative Market Analysis (CMA). This is typically free of charge, and there is no obligation for you to list with anyone who prepares the Comparative Market Analysis. The CMA will provide information on how much several comparable houses in your neighborhood sold for.

Just ask a local real estate agent to give you a Comparative Market Analysis or information on the prices of houses that sold within the past three months in your neighborhood. You'll also want to know which of the houses sold in your neighborhood were short sales and bank owned.

Using Tax Assessor’s Data to Find House Prices in Your Neighborhood

If you’re thinking about selling your own home as "For Sale By Owner” or if you’re just doing research out of curiosity for future planning, many counties have their real estate records online. These are typically found through the county tax assessor’s data. If your city doesn’t have this information available online, you could go down to the courthouse and look it up. Keep in mind that doing this research can be time consuming.

If you are hoping to sell your home without a realtor, there is one thing to consider when finding out how much houses sold for in your neighborhood. Statistically, For Sale By Owner homes usually sell for less and remain on the market longer than those represented by a licensed real estate agent. An agent would contact his or her network of realtors and potential buyers to quickly get the word out about your property, and your home would be listed in at least one Multiple Listing Service (MLS), giving other agents a way of finding out that your home is on the market. If you’re a good negotiator and willing to do a lot of leg work, you’ll be fine, but you could end up losing money in the long run.

Using Online Databases to Find House Prices in Your Neighborhood

If you’re not using a real estate agent and you don’t feel like making a trip down to the courthouse, you can read the property transfers in your local newspaper or research online databases where you can find the information you’re looking for. Many states have a public MLS that will show you comparable properties. One word of caution, though: the accuracy of online pricing databases can sometimes be a little questionable. Public records and search engines could give you an incomplete picture of the market, because they gather sold property data from public records, which can be outdated and incomplete.

Most Important Factors When Finding Out How Much a House Sold For

When you find out how much a house in your neighborhood sold for, don’t forget to truly compare your house to the houses for which you have data. Does your house really have similarities, and is it comparable in size? How many bedrooms and bathrooms does it have? Does your home have the same curb appeal? Have you done any bathroom or kitchen upgrades? Just make sure you only compare properties that are really comparable.

Finally, the easiest and fastest way to find out how much a house in your neighborhood sold for is to find a reputable real estate agent and have him or her provide a Comparative Market Analysis.

Info provided by Katie Oakes with Keller Williams Premiere Properties.

Carol Stream Homes For Sale April 2011 - Present

Year over in Carol Stream the number of homes sitting on the market has dropped over 40% while the number of homes under contract have increased about 125% and Carol Stream is just one of hundreds of towns experiencing this change in supply and demand in our area. Home prices may very likely be on the verge of an upswing; don't wait and miss your opportunity to buy now! Visit WheatonHomes4Sale.com to start searching for your new home now or contact Katie Oakes with Keller Williams to discuss the purchasing opportunities in your area.

When Will Home Prices and the Real Estate Market Rebound?

Consumers Want to Buy, but Waiting for the Right Time

A survey released this week by Hanley Wood shows that recovery is still evading the U.S. housing market. Consumers are in no hurry to buy a home even though they believe in homeownership as well as the significance of a healthy housing market in aiding economic recovery. “We thought people would be soured after watching home values fall, but instead we found the typical American still places high value on homeownership,” said Frank Anton, CEO of Hanley Wood in a release.

The media and data research company polled about 3,000 homeowners and renters in June and more than 68 percent of respondents believed that the time was right to buy a house. But, their belief and wishes were dampened by the realities of today’s economy, the survey found. Unemployment, strict lending practices and an uncertain future continue to take its toll on consumers. “As long as buyers are uncertain about what’s happening in the economy and where house prices are headed, they are going to be slow to move. There is no urging the market,” Kent Colton, a senior fellow at Harvard University’s Joint Center for Housing Studies told Reuters. There is a silver lining though. The survey found that 29 percent of renters and 19 percent of homeowners are considering buying a home in the next two years. Those numbers mean an upward of two million potential buyers are waiting for the right time to plunge into the market.

Now that could definitely be a game changer.

Home Prices May Not Climb Upward Soon

Without an aggressive and creative solution, home prices will not pick up and aid in economic recovery, according to new forecasts. Home values will continue to fall for years, says a poll conducted by the Professional Risk Managers’ International Association for research firm FICO. The poll conducted among industry experts found that bankers expect delinquencies on consumer loans to rise, underwriting to be stricter. They also expect the housing market to continue to struggle for a while. Forty-nine percent of the respondents said they don’t expect home prices to touch 2007 levels before 2020. Mortgage delinquencies will remain at a high for at least another five years, an overwhelming 73 percent of respondents said. The findings indicate that more needs to be done to aid the housing market toward a speedy recovery. Aggressive steps toward creating jobs is not a good enough catalyst for rejuvenating the housing market. Also, the never-before-seen low mortgage rates are good, but they are doing little to help the market when lenders are following strict lending guidelines.

Miami Magic Returns

Sellers are again smiling in the Miami market. Home sales in the city are up 50 percent so far this year, according to the Miami Association of Realtors. “People were saying, ‘Oh look at all those empty buildings in Miami,’ Oliver Ruiz, managing broker at Fortune Realty and former residential president of the Miami Realtors’ Association told the Voice of America. "Well, all those empty buildings are now full." Foreign buyers are responsible for the major turnaround. Miami has always been an attractive destination with its beaches, nightlife and fine dining. Buyers are pouring in from all over the world to have “a piece of the pie in Miami,” Ruiz said.

Cap on Mortgages Eligible for Federal Loans Reduced

As if falling prices and stricter lending were not enough blows, the housing market received another terrible punch when the cap on mortgages eligible for federal loanswas lowered. According to The Real Deal, only loans of $625,500 or less would be eligible for lower down payments and interest rates as compared to the previous limit of $729,750. This rule, of course, applies to the country’s most expensive markets. The changes baffled experts who are wondering why the government decided to act on this when the market is already comatose. Certainly not good news for sellers and buyers, who are already struggling.

Homeownership Sees Biggest Drop Since Depression, Despite Second Largest Ownership Rates

Homeownership rates plummeted to 65.1 percent in 2010, according to new data released by the U.S. Census this week. Tighter credit, unemployment rate and reduced government involvement could prevent the country from returning to its home ownership peak levels earlier in the decade, the story said. The trend is driven by more and more young adults moving in with their parents. Also, homeownership levels among middle-aged adults are at their lowest because of foreclosures or bankruptcy. Another significant find was that the homeownership gap between whites and blacks is at its widest since 1960, the AP story said.

For more information or to begin viewing homes for sale in your area visit WheatonHomes4Sale.com

Can I Make Money Renting a Room in My House?

If you have more space than you have cash, renting a room in your house can be a good way to make ends meet, especially in towns near local colleges. Visit WheatonHomes4Sale.com or email KatieOakes@WheatonHomes4Sale.com now for more information or to find out home much rent your home can generate for you!

Should you get a Roommate to Help Make Extra Money?

 

If you’re a homeowner with extra space in your place and you don’t mind a roommate digging around in your fridge late at night, renting a room in your house can be a super way to raise some cash. Renting a room can also help to cover the costs of home ownership such as maintenance and utilities. Sounds fantastic, right? Just follow these tips to keep your roommate situation safe and satisfying.

Marketing Your Room for Rent

Craigslist offers free classifieds that allow you to make custom postings for roommates, as do many newspaper websites. For clues on how to price your rental, visit the Craigslist.com site for your metro area and select “rooms/shared housing” from the menu. You can use existing postings to figure out how to price and market your rental. Take note of how landlords use photos and details to market their rooms for rent.

Finding a Good Roommate to Rent a Room in Your House

Think about the kind of person with whom you’d like to share your home and write ads that reflect your lifestyle and requirements. If you’re a vegetarian household, be clear about that. If you dislike noise after 9 p.m., be clear about that also. You should specify what percentage of the utilities the person will pay in addition to rent and how you plan to manage food sharing and preparation.

Be meticulous in identifying how household responsibilities will be split and all charges that are associated with the room rental such as a weekly cleaning fee, pool service, Internet access or other general household expenses. Be sure to articulate your house rules with regard to guests visiting and spending the night. If you’re not careful, you can end up with two roommates for the price of one.

Background & Credit Checks

Never, ever rent a room without first doing background research. Before you invite someone to live with you, be sure to order criminal, sex offender and credit checks. There are affordable and simple online services that are designed for landlords – some as low as $25 or $50. As a part of the application process, you can ask the tenant to pay a non-refundable credit check fee to cover the cost. This will deter tenants with bad credit problems or criminal histories from pursuing your rental. If someone isn’t able to pay for a credit check, swallow the cost or tack it on to their rent.

Interviewing Roommates Prior to Renting a Room in Your House

Take some time to identify what is important to you from a lifestyle perspective before interviewing prospective roommates. Whether you are a quiet, contemplative person who spends a lot of time at home or a very social, active person who likes to have friends over, you should ask questions that identify a good fit for you:

• Do you wear headphones when you listen to music?
• How much time do you spend at home?
• Do you have lots of friends or do you tend to keep to yourself?
• Do you like to entertain friends at your home?

Make a list of questions and details that are important to you, then take the time to learn whether or not your potential tenant is really a good fit. This exercise may also reveal that you really don’t want a roommate. If you’re very sensitive and particular, it could be that you’re better off finding a different way to bring in extra cash.

Crafting a Lease

Before renting a room in your house, or even marketing your property, determine the type of lease that best suits your situation. If you don’t mind the ebb and flow of new tenants, a month-to-month lease or shorter period lease (such as three or six months) can be a good way to start. Since you have to share common space with the tenant, you will want to carefully consider the type of commitment that you’re willing to make – just in case the tenant turns out to be less than wonderful.

It is never wise to rent a room without a lease. Though it seems easier, it can be difficult to remove a problematic tenant or to recoup rent costs if you do not have some legal documentation to support your arrangement. Make the effort upfront to protect yourself and your property from ill-intentioned renters.

You can Make Money Renting a Room in Your House

If you can tolerate a roommate situation and are clear about your household rules along with the financial responsibilities of the tenant, you can definitely make some money renting a room in your house. However, before committing to a roommate, ask yourself if you’re willing to do the work to ensure that your tenant is a safe bet who will honor a lease agreement. If not, you should consider alternative ways of enhancing your income.

Information provided by Katie Oakes with Keller Williams Premiere Properties.

Wheaton Homes for Sale: Wheaton Real Estate Sales 2011-2012

The housing market in Wheaton has been experiencing a significant drop in the number of units listed for sale from April 2011 to April 2012, decreasing about 40%, while the number of homes under contract have gone up about 12% over the past year. This data shows that the market is heading for a turn around and that there is much less inventory of homes for sale than 12 months prior. To read more about the Wheaton real estate market, or about your housing market visit WheatonHomes4Sale.com or go straight to the Market Insider.


Information provided by Katie Oakes with Keller Williams Premiere Properties.

Latest Breaking News on Housing Market

Visit WheatonHomes4Sale.com to start browsing for homes in your area today!

First up is some positive breaking news for the housing market. Shadow inventory of homes is declining, providing a dose of good news for the glum housing market. Shadow inventory, or homes on the verge of foreclosure, fell to 1.6 million units representing a five-months supply in July compared to 1.9 million units representing a six-months supply a year ago, according to CoreLogic. It’s a good sign that troubled homes, normally headed toward foreclosures, are getting sold faster. Lesser inventory will help stabilize falling prices on homes for sale. Of course we won’t be seeing a drastic change in numbers, but even a small percentage of troubled homes off the market is a blessing for sellers and the industry as a whole.

"The steady improvement in the shadow inventory is a positive development for the housing market," CoreLogic Chief Economist Mark Gleming said in a press release. "However, continued price declines, high levels of negative equity and a sluggish labor market will keep the shadow supply elevated for an extended period of time."

Housing Prices Increase, but not Enough

Some more indication of baby steps toward a market recovery. For the fourth consecutive month, home prices were on the upswing in July compared to the previous month. But the bump wasn’t good enough to give the market a clean bill of health, yet. According to data released by S&P/Case-Shiller Home Price Indices, home prices across 20 major urban areas in July remained flat when adjusted seasonally, and down 4.1 percent compared to a year earlier, despite showing a 0.9 percent gain. The trend of prices rising is a good sign, analysts said.

"With July's data we are seeing not only anticipated monthly increases, but some fairly broad improvement in the annual rates of change in home prices," said S&P's David Blitzer, according to an AFP story. However, he said, "if you look at the state of the overall economy and, in particular, the recent large decline in consumer confidence, these combined statistics continue to indicate that the housing market is still bottoming and has not turned around." Prices across the country were at the level of 2003, according to the report.

Mortgage Rates Continue to Slide

Here’s more music for the ears of potential homebuyers. Nudged by the Federal Reserve’s proposal to reduce borrowing costs, mortgage rates fell to the lowest in Freddie Mac’s recorded history this week. Rates on a 30-year-fixed loan hit an unimaginable 4.01 percent, down from 4.09 percent. On a 15-year loan rates dropped to 3.27 percent. The lucrative rates are aimed to lure consumers toward buying and refinancing their existing mortgages. Many are taking the bait. According to the Mortgage Bankers Association, there was a 9.7 percent rise in loan applications last week. However, a good section of consumers have not been able to take advantage of the rates because of stricter lending standards.

Existing Home Sales Drop

Some good news for buyers which turns out to be not-so-good news for sellers. Sale of existing homes dropped 1.2 percent in August, according to an index by the National Association of Realtors. The measure shows that sales dipped to 88.6 percent in August from 88.7 percent the prior month. The data, which takes into consideration signed contracts but unclosed deals, shows that the numbers are higher when compared to the same period last year, but that’s hardly a consolation since last year’s showing was affected by the expiration of a federal tax credit for homebuyers. Lawrence Yun, NAR chief economist in a press release blamed the numbers on an uneven market.

“The biggest monthly decline was in the Northeast, which was significantly disrupted by Hurricane Irene in the closing weekend of August,” he said. “But broadly speaking, contract signing activity has been holding in a narrow range for many months.” If you are looking to buy, now may be a time to get involved in the market, Paul Dales, senior U.S. economist for Capital Economics, told the Wall Street Journal. But, a lot of people have been unable to cash in on the situation, he said. Some analysts blame the job market and slipping consumer confidence. In these shaky times, many people prefer to rent than invest their savings on a new home.

Information provided by Katie Oakes