Delavan Real Estate – Housing Numbers Are Rising

Posted on May 18, 2012 by Travis Egan

Click the post title above to watch today’s video! Catch all your Delavan real estate and Delavan mortgage news with Frank Garay and Brian Stevens here at www.DelavanREalEstateBlog.com!

The RAZ Room

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Delavan Real Estate – Housing Starts On Single-Family Homes Powers Ahead

Posted on May 17, 2012 by Travis Egan

Delavan Mortgage - Housing Starts April 2012The new construction housing market continues to improve.

One day after the National Association of Homebuilders reported a 5-year high in homebuilder confidence, the U.S. Census Bureau reports that single-family housing starts rose 2 percent for the second straight month last month.

In April, on a seasonally-adjusted, annualized basis, the government reports 492,000 single-family housing starts.  A “housing start” is a home on which ground has broken.

In addition, March’s single-family housing starts were revised higher.  What was previously reported as a three percent loss was re-measured and changed to a 0.2% gain.

The April tally marks a six percent increase over the one-year moving average and, along with the March revision, suggests that the springtime housing market may have just been seasonal. 

In March, a number of reports suggested a housing retreat:

Since then, though, low Delavan mortgage rates and affordable home prices appear to have sustained the new construction market, which now appears poised for a strong 2012. 

As one mark of proof, active buyers of newly-built homes in Lake Geneva, Wisconsin and nationwide are scheduling “model home” showings at the fastest pace since 2007.  The burst of foot traffic high has builders upping their sales expectations for the next 6 months.

A scenario like this would normally lead new home prices higher, but the pressure for prices to rise may be offset by the amount of new home supply coming online.

In addition to a rise in Housing Starts, the Census Bureau also reports that, in April, the number of Building Permits for single-family homes rose 2 percent to move to its second-highest level since March 2010 — the month preceding the end of the 2010 federal Home buyer tax credit.

86 percent of homes break ground within one month of permit issuance.

It’s unclear whether housing is on a steady path higher, but there’s a growing body of evidence that suggests the market bottom has already passed.

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Delavan Real Estate – Realtor Income Rises For First Time in 9 Years!

Posted on May 17, 2012 by Travis Egan

Click the post title above to watch today’s video!  Catch all your Delavan real estate and Delavan mortgage news with Frank Garay and Brian Stevens here at www.DelavanRealEstateBlog.com!

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Delavan Real Estate – Homebuilder Confidence Moves To 5-Year High

Posted on May 16, 2012 by Travis Egan

Delavan Mortgage - NAHB HMI Homebuilder Confidence is on the rise once again.

After a brief dip in April, the National Association of Homebuilders reports that the Housing Market Index rose 5 points in May to 29.  The increase marks the sharpest climb in homebuilder confidence on a month-to-month basis in 10 years, and raises the index to a 5-year high.

The Housing Market Index is scored from 1-100.  Readings above 50 indicate favorable conditions in the single-family new home market overall.  Readings below 50 indicate poor conditions.

The HMI has not been above 50 since April 2006.

The Housing Market Index itself is a composite reading as opposed to a straight-up homebuilder survey.  The published HMI figure is a compilation of the results of three specific questionnaires sent to NAHB members monthly.

The survey questions are basic:

  1. How are market conditions for the sale of new Delavan, Wisconsin homes today?
  2. How are market conditions for the sale of new homes in 6 months?
  3. How is prospective buyer foot traffic?

This month, builders are reporting strong improvement across all three surveyed areas.  Current home sales are up 5 points; sales expectations for the next six months are up 3 points; and buyer foot traffic is up 5 points to its highest point since 2007.

With Delavan real estate mortgage rates low and home prices suppressed, the market for new homes is gaining momentum, a conclusion supported by the New Home Sales report which shows rising sales volume and a shrinking new home inventory nationwide.

The basics of supply-and-demand portend higher new home prices later this year — a potentially bad development for buyers of new homes in Delavan, Wisconsin and nationwide.  With demand for new homes rising, builders may be less likely to make sale price concessions or to offer “upgrade packages” to buyers of new homes.

If you’re shopping for new construction in or around Williams Bay, Wisconsin therefore, consider moving up your time frame.  Home affordability is high today.  It may not be tomorrow.

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Delavan Real Estate – Foreclosure Activity, Homebuilder Confidence, And The Road Ahead…

Posted on May 16, 2012 by Travis Egan

Click the post title above to watch today’s video! Catch all your Delavan real estate and Delavan mortgage news with Frank Garay and Brian Stevens here at www.DelavanRealEstateBlog.com!

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Delavan Real Estate Home Affordability Getting A Springtime Boost From Greece

Posted on May 15, 2012 by Travis Egan

Delavan Mortgage - Greece affects U.S. mortgage ratesHome affordability is receiving a boost from across the Atlantic Ocean this spring.

For the third time in as many years, a weakening Eurozone is pushing May Delavan mortgage rates to new lows throughout Wisconsin and nationwide.

The story centers in Greece and begins in 2010.

2 years ago, it was uncovered that successive Greece governments had purposefully misreported the nation-state’s economic statistics in order to meet European Union standards.  The fraudulent data had permitted Greek governments to spend beyond their means while hiding deficits from EU auditors.

The realization that Greece was heavy in debt with little means to repay its creditors resulted in a massive bailout from the IMF and the rest of the Eurozone nations.  The terms for Greece said that, in order to receive its €110 billion aid package, Greece would be required to enact strict spending controls.

This is known as “austerity” and the deal was met with outrage by the Greek public.  There’s been general social unrest ever since and, on May 6 of this year, Greece held a special “early election” to elect all 300 members to its legislature.

No party won majority in the elections.

7 different groups garnered seats in the parliament last week with anti-austerity groups faring well.  It’s spurred concern that Greece will end its bid for fiscal restraint, and that Greece may choose to leave the 17-nation Eurozone.

The uncertainty surrounding Greece is helping U.S. mortgage rates to make new lows.  As concerns mount for the future of Greece — and the Eurozone, in general — global investors seek safer markets for their money.

The U.S. mortgage-backed bond market is one such market.

With the implied backing of the U.S. government, mortgage-backed bonds are viewed as nearly risk-less and investors clamor for safety of principal during uncertain times.  The boost in demand drives bond prices up and bond yields down, resulting in lower mortgage rates for home buyers and refinancing households of Lake Geneva, Wisconsin.

So long as Greece struggles to form its government and flirts with a sovereign debt default, mortgage rates should continue to face downward pressure.  U.S. rates may not fall week after week, but analysts expect any rise in rates to be muted.

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Delavan Real Estate – Where In The Heck Is The Shadow Inventory?

Posted on May 15, 2012 by Travis Egan

Click the post title above to watch today’s video!  Catch all your Delavan real estate and Delavan mortgage news with Frank Garay and Brian Stevens here at www.DelavanRealEstateBlog.com!

 

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What’s Ahead For Delavan Real Estate Mortgage Rates This Week: May 14, 2012

Posted on May 14, 2012 by Travis Egan

Delavan Mortgage - Homebuilder ConfidenceDelavan mortgage markets worsened slightly last week as positive U.S. economic news overshadowed growing concerns for the Eurozone’s future.  Political and economic issues continue to weigh on Greece and Spain, and it’s still unknown how France’s new President will change that nation’s fiscal direction. 

Conforming mortgage rates in Delavan, Wisconsin edged higher on the week overall.

Last week was light on economic data, but the figures released suggest an improving U.S. economy.

For example, the Bureau of Labor Statistics reported 3.7 million job openings nationwide this past March, marking the highest amount since July 2008.  Voluntary separations (i.e. “quit jobs”) increased, too — also at levels not seen since 2008.

Voluntary separations may hint at labor market improvement because employees rarely leave a steady-paying job without the prospect of a new job ahead.  Furthermore, the four-week moving average of first-time unemployment claims fell for the first time in a month.

The jobs market is one of two key sectors expected to lead the economy forward this year.

The other is housing and, this week, there will be two key housing reports for Wall Street to review.  The first is Tuesday’s homebuilder confidence survey from the National Association of Homebuilders.  The second is Wednesday’s Housing Starts data for April.

Delavan real estate mortgage rates may also be affected by the Tuesday release of the Retail Sales report and Consumer Price Index report; and, by the Federal Reserve’s Wednesday release of the FOMC Minutes from its last meeting.

For home buyers and mortgage rate shoppers, mortgage rates remain at all-time lows.  According to Freddie Mac, the average 30-year fixed rate mortgage rate nationwide is 3.83% for borrowers willing to pay 0.7 discount points and a full set of closing costs — the lowest rate-and-fee combination in Freddie Mac’s recorded history.

However, low mortgage rates may not last much longer — especially if the Eurozone can reverse course on its ailing economies.

Mortgage rates remain volatile and sensitive to changes in market conditions.  If today’s mortgage rates fit your budget, consider locking in.

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Delavan Real Estate – 2010 Census Shrinks The USDA Home Loan Program

Posted on May 14, 2012 by Travis Egan

Click the post title above to watch today’s video!  Catch all your Delavan real estate and Delavan mortgage news with Frank Garay and Brian Stevens here at www.DelavanRealEstateBlog.com!

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Delavan Real Estate Mortgage Rates Make New All-Time Lows (Again)

Posted on May 11, 2012 by Travis Egan

Delavan Real Estate Mortgage Rates

Conforming Delavan real estate mortgage rates continue to drop.

For the second straight week, the 30-year fixed rate mortgage fell to a new, all-time low nationwide.  According to Freddie Mac’s weekly mortgage rate survey, the average 30-year fixed rate mortgage rate dropped 1 basis point to 3.83% this week for borrowers willing to pay 0.7 discount points plus a full set of closing costs.

The 15-year fixed rate mortgage also set a mortgage rate record, registering 3.05% with an accompanying 0.7 discount plus closing costs.  Walworth State Bank does not “typically” charge points on their mortgage loans.

Discount points are a one-time, up-front closing cost, based on loan size. 0.7 discount points is equal to 0.7% of the borrowed amount.  A home buyer in Williams Bay, Wisconsin opening a $200,000 mortgage and paying 0.7 discount points, therefore, would be subject to a one-time $1,400 fee paid at closing.

Borrowers wanting to avoid paying discount points can expect higher mortgage rates than Freddie Mac’s reported national average.

Falling mortgage rates are nothing new throughout Wisconsin.  Since peaking in February 2011, mortgage rates of all types have been in steady decline.  The 30-year fixed rate mortgage has shed 122 basis points since that date, falling from 5.05%; the 15-year fixed rate mortgage has shed 124 basis points, falling from 4.29%.

Low mortgage rates give today’s home buyers additional purchasing power, stretching home affordability to new heights.

Low rates also help existing homeowners to lower monthly mortgage payments.  For example, as compared to mortgage rates just 15 months ago, homeowners refinancing into today’s 30-year fixed rate mortgage stand to save 13.4 percent on their respective mortgage payments. 

A comparison:

  • February 2011: $539.88 principal + interest per $100,000 borrowed
  • May 2012: $467.67 principal + interest per $100,000 borrowed

A homeowner with a $300,000 mortgage at February 2011 30-year fixed rate mortgage rates would save $2,600 annually with a refinance to this week’s low rates.  Even accounting for discount points and closing costs, the “break-even point” on savings like that comes relatively quickly.

Delavan mortgage rates can’t be predicted so there’s no guarantee of low rates forever.  If today’s rates meet your budget, consider locking something in.  Speak with your loan officer about your options.

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