Lakeville, MA

Mortgage Rate Forecast for August 26, 2010 - Improving, or...?

Here are some of the events affecting mortgage rates today:

What Mortgage Backed Securities (MBS) Are Doing Today:

• The price of the FNMA 30-Year 4.0% MBS coupon opened at 102.89 this morning - the same as yesterday's close.
  
  
• At 10:00 AM, the 4.0% MBS coupon was trading at 102.95 - up 2/32 from its opening.

Remember, on mortgage backed securities (MBSs), as the price goes up, the yield comes down - and so do mortgage rates. I expect that mortgage rates will be about the same in price this morning as compared to yesterday.

Price Trend in Mortgage Backed Securities:

The chart below shows the price trend of the FNMA 30-Year 4.0% coupon over the past 30 days from 7-27-2010 to 8-26-2010:

Economic Reports, News, and Events Affecting Mortgage Rates Today:

• Jobless Claims - 473,000 new claims for unemployment were filed last week, 22,000 less than expected, and 31,000 less than the upwardly revised 504,000 claims filed the previous week. The four-week average for unemployment rose by 4,000 to 486,750, the highest level since November 2009, while continuing claims for the week of August 14 fell by 62,000 to 4.456 million. This report shows that employers are cutting jobs as the economic recovery slows, and some who have been unemployed for a while have exhausted their benefits. While significant, this report had no impact on the mortgage market or mortgage rates this morning.

In other news, the Treasury Dept. will be auctioning $29 billion in 7-Year Notes today. The Notes are used to finance the massive government debt. If there is a strong demand for the Notes, we should see the bond market move higher (resulting in lower mortgage rates) during afternoon trading. However, a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to a broader selling in bonds and mortgage backed securities. The selling of mortgage backed securities could result in higher mortgage rates.

Trend in Mortgage Rates:

The chart below shows the trend in mortgage rates over the past 15 years:

Mortgage Rate Forecast:

Mortgage rates are at their historic lows. They haven't been this low since the early 1950s. These low mortgage rates may be with us for some time - or they may not. Usually, mortgage rates go up during the summer months during the peak home buying season, then go down as the fall and winter seasons approach. But these are not "normal times." It's possible that mortgage rates will continue to slowly fall. However, as a few days last week have shown, they could turn at any time.

If you're thinking about refinancing your mortgage and if these low mortgage rates make sense to you, then take advantage of them while you can. If you're happy with the mortgage rate being offered to you today and if you don't want to risk mortgage rates moving higher, then you should apply and lock in now. It's better to have locked when you should have floated than it is to float when you should have locked.

Are you in need of a mortgage to purchase a home? Or want to refinance an existing mortgage into a lower permanent fixed rate? Or want to take cash out of the equity of your home? Or consolidate debt and reduce the monthly bills? Then be sure to request a mortgage rate quote today!

The Trend in Home Sales in Lakeville MA - Improving, or...?

Home prices in Lakeville on average are falling! Home prices have fallen 9.5% since July of 2009.

The current average listing price of homes for sale in Lakeville MA is $354,144, down just 0.8% from a month ago. Compare this to the current median sales price of $243,950 - where half of sales are above this amount and half below it.

Prices of 2 bedroom homes are down 27.5% from year ago levels while prices of 3 bedroom homes are up just 1.2%. Below is a chart of the trend of median prices of homes for sale in Lakeville MA over the past 5 years through July 2010:

Lakeville Recently Sold Homes

Although cyclical, the number of sales for all homes have been fairly flat over the past 5 years:

Lakeville Recently Sold Homes

So what does all this mean? Well, if you're looking for a 2 bedroom home in Lakeville, you can probably find a bargain. Still, lowball offers won't cut it in a market like this.

However, if you're looking for a 3 bedroom home in Lakeville, you better not mess around too much. While sales are overall are relatively flat, prices of these homes are climbing. Sellers aren't in control of the market either, so both buyers & sellers should be reasonable when negotiating.

You can still buy a home with no money down with a VA Loan or with a USDA Rural Development Home Loan. With the FHA Mortgage program, you can purchase a home with as little as 3.5% down. With a MassHousing loan, you can purchase a home with as little as 3.0% down. When you're ready to buy a home, find out how much house you can afford to buy in Lakeville or in the surrounding area.

Be sure to contact me, Lew Corcoran, toll free at 1-800-984-3341, when you're looking to get pre-approved for a purchase of your next home in Lakeville or in the surrounding area. Otherwise you may end up frustrated, disappointed and, unfortunately, perhaps misled.

The Massachusetts Association of Realtors (MAR) has reported that sales for October 2009 are up 17.7% from October 2008. Statewide 3,828 single family homes sold this October vs. 3,252 in October 2008. It was also the largest single month gain since November 2004, and the largest increase of sales from September to October since 2002.

I took a closer look at some of the statistics for Lakeville Massachusetts single family homes sales for October and here is how they stacked up compared to the state statistics.

Here is a chart showing the past 10 years of single family home sales and the median sales prices for Lakeville Massachusetts.

Here is a chart showing the past 10 years of single family home sales and the median sales prices for Plymouth County Massachusetts.

Here is a chart showing the past 10 years of single family home sales and the median sales prices for Massachusetts.

I liked the following chart best of all, here I have combined the town of Lakeville with Plymouth County and Massachusetts sales for a side by side visual of what has been happening with median sales prices and number of home sales throughout the past 10 years. Note that the sales volume has been adjusted for Plymouth County (x10) and Massachusetts (x100).

Where will prices go over the next few years? What will happen with sales volume now that the first time homebuyer tax credit has been extended and expanded to provide a Home Buying Trifecta?

Although these statistics might be a little closer than using national statistics, it is still not a clear indication of what might be happening in your town or neighborhood. Real estate is local and in some instances, hyper-local. One area may be realizing better than average results while another has seen fewer sales and larger price reductions. The results can vary dramatically or can follow a similar trend to the national or state sales results. The best way to determine what the results are and how to interpret them is through the help and guidance of a local Realtor.

Stay tuned and while you are at it, subscribe to my blog - "Call on Judy".

Single Family home sales in Lakeville Massachusetts are struggling. First quarter started off with 107 listings, 14 sales and an inventory supply of 22.9 months.

Second quarter had an increase in listings (+15) and sales had a small increase (+4) bringing the months supply down ever so slightly to 20.3.

Third quarter also had an increase in inventory (+20) a decrease in sales (-1) putting the months supply of single family homes to 25.1.

Median sales price in Jan 2009 was $226,000 vs. $307,000 in 2008 (-26.4%)

Median sales price in Feb 2009 was $310,000 vs. $355,000 in 2008 (-12.7%)

Median sales price in Mar 2009 was $272,000 vs. $207,000 in 2008 (+31.4%)

Median sales price in Apr 2009 was $221,750 vs. $420,000 in 2008 (-47.2%)

Median sales price in May 2009 was $241,000 vs. $346,000 in 2008 (-30.8%)

Median sales price in Jun 2009 was $269,900 vs. $296,000 in 2008 (-8.8%)

Median sales price in Jul 2009 was $365,000 vs. $308,000 in 2008 (+18.5%)

Median sales price in Aug 2009 was $285,000 vs. $353,500 in 2008 (-19.4%)

Median sales price in Sep 2009 was $295,500 vs. $319,950 in 2008 (-7.6%).

Lakeville sales have decreased by 9 through the 3rd quarter of 2009 compared to 2008, and the Median sales price in Lakeville Massachusetts has dropped by 23.1%.

Lakeville Massachusetts Single Family home statistics for the month of October is showing 75 current listings, with 3 under agreement, and 13 sold to date.

With the $8,000 tax credit nearing the deadline for closing on or before November 30, 2009, it will be interesting to see if sales spike in October and November and what impact it will have on pricing. Stay tuned.

Take a look at the chart below- it shows the total number of single-family homes sold in Lakeville Ma in the last 3 months.

During the last 3 months in Lakeville Ma, there were a total of 10 homes sold-The chart shows us that the top 2 selling price ranges were the $200k-$249k and the $249k-$299 range. There was 1 home sold in the $400k-$449k, and 1 sold in the $300k-$349k, 1 in the 0-$49k, and 1 in the $150k-$199k range. These numbers hold far more information and value to a home seller because as a seller, it can help set your expectations as to home value and for average time on market. Please feel free to contact me by phone or email for any real estate related questions, whether you are a potential home buyer or seller. Todd, Todd K. Bazarewsky, Uptown Realtors, 774-269-2752, toddbaz@gmail.com or please feel free to visit my website at www.ToddBaz.com, where you can find other relevant information.