Each month, the Commerce Department and the National Association of REALTORS® release national housing data.
The former's release is called the New Residential Sales report and the latter's is called the Existing Home Sales report.
Both reports highlight the "median sales price", the point at which half of the homes in the U.S. sold for more, and half sold for less.
Last month, the median sales prices were as follows:
The very definition of "median", however, males this data point useless for national housing statistics.
If a large amount of homes are sold in regions where home prices are traditionally high, the median sales price will trend higher.
If a large amount of homes are sold in regions where home prices are traditionally low, the median sales price will trend lower.
Again, all that the median sales price tells us is the price point at which half the homes in the country sold for more, and half sold for less.
Real estate is a local phenomenon and so grouping the entire country's supply of homes together makes little sense. A home in San Francisco has little to do with a home in Omaha.
To get a true gauge of your local market, talk to a real estate agent that knows the local market well. You'll not only get meaningful statistics about a neighborhood, but you'll get good insights, too.
John Topa, First Sunrise Mortgage, Northeast PA Mortgage Advisor. www.FirstSunriseMortgage.com
Consumer Confidence fell to its lowest point in three years and anybody who watches the evening news can understand why.
Each day, news programs barrage Americans with tales of economic woe and American Opinion is largely shaped by the media.
After enough time, the reporting becomes a self-fulfilling prophecy.
But, in the Consumer Confidence report, there was a choice piece of data that isn't getting reported by the news programs and it's a rather important piece.
Although fewer consumers expect to buy automobiles and appliances over the next six months, those with plans to buy homes is actually higher by 14 percent.
In other words, despite weakening confidence in the economy, an increasing number of Americans are planning to buy homes this season and next.
Consumers may be motivated to buy this year by a number of factors:
Regardless, the media is choosing to ignore this part of the story. Instead, the news programs are focusing on the negatives -- just look at the headlines.
It's no wonder that confidence is down -- bad news is all the American Public tends to hear.
John Topa, First Sunrise Mortgage, Northeast PA Mortgage Advisor. www.FirstSunriseMortgage.com
Each quarter, the Census Bureau releases the Homeowner Vacancy Rate, a housing statistic the measures the percentage of homes for sale that are vacant.
A home listed for sale may be vacant for several reasons including:
In Q4 2007, the Homeowner Vacancy Rate matched its all-time high of 2.8 percent.
The statistic can be misleading, however, because Homeowner Vacancy Rates appear to be seasonal and the fourth quarter is more prone to high figures.
As evidence: In 6 of the last 7 years, Q4 posted higher vacancy rates than for the preceding three quarters.
Vacancy rates may increase in the fall because homesellers without a "need" to sell tend to take their properties off the market during the Holiday Season. That leaves an over-weighting of empty homes for sale -- precisely what the Homeowner Vacancy Rate measures.
For an interactive version of the chart above, visit the Wall Street Journal Online.
Source
Housing Markets: A Vacant Look
The Wall Street Journal Online
March 21, 2008
http://online.wsj.com/public/resources/documents/retro-VACANCY08.html
John Topa, First Sunrise Mortgage, Northeast PA Mortgage Advisor. www.FirstSunriseMortgage.com
Since December 2007, mortgage lending guidelines have changed very quickly and often without notice.
Some of the more well-known changes include:
Some of the lesser-known restrictions relate to property type and occupancy status as well as debt-to-income levels and mortgage payment histories.
Because of the number of changes and their collective scope, home buyers should be prudent and get re-pre-approved for their home loan.
Even if you last spoke with your loan officer four weeks ago, it's important to know how market changes could ultimately impact your home loan approval.
The market really is that different. Talk to your loan officer about a re-pre-approval today.
John Topa, First Sunrise Mortgage, Northeast PA Mortgage Advisor. www.FirstSunriseMortgage.com
The Fed lowered the Fed Funds Rate by 0.750% to 2.250% yesterday.
Because it is tied to the Fed Funds Rate, Prime Rate also fell by 0.750% yesterday. Prime Rate is now to 5.250%.
Holders of home equity lines of credit and credit card debt benefited from the change and will see lower interest costs in next month's statements.
Mortgage rate shoppers didn't.
In the statement above -- as explained by The Wall Street Journal -- the Fed expresses a growing concern of inflation from rising commodity prices such as oil. In part, this caused the mortgage bond market to sell off immediately following the press release's issue.
Mortgage rates rose close to a quarter-percent yesterday.
The Federal Open Market Committee's statement leaves the possibility of future Fed Funds Rate cuts open. The FOMC's next scheduled meeting is a two-day affair April 29-30, 2008.
Source
Parsing the Fed Statement
The Wall Street Journal Online
March 18, 2008
http://online.wsj.com/internal/mdc/info-fedparse0803.html
John Topa, First Sunrise Mortgage. Northeast PA Mortgage Advisor www.FirstSunriseMortgage.com
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John Topa, Your Connection to Affordable FHA Mortgages. Serving PA since 1997. Contact me today to see how your clients can benefit from honest, informed mortgage advice. 570-344-6091.
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