New-Home Prices Pick Up Strength

Sales of new single-family homes posted the first annual gain in seven years as median prices continued to rise, the Commerce Department reports. The median price of new homes increased to $248,900 last month, a 1.3 percent increase compared to November. The median price of new homes sold was up 9.6 percent in December compared to a year ago. Meanwhile, new home sales increased nearly 20 percent from 2011 to 2012, the Commerce Department reports. While the gains were large, sales last year were still the third worst on record (2010 and 2011 also marked record lows in sales). For all of 2012, 367,000 new homes were sold—about a third of the record number of sales reached in 2005. Just for December—the latest month available—new-home sales dropped 7.3 percent compared to the previous month to a 369,000-unit annual rate. But numbers are subject to substantial revisions, as in November where sales were revised much higher to a 398,000-unit rate—marking the highest pace in nearly three years.

Loan Demand Rises as Rates Inch Up

For the third consecutive week, mortgage applications rose, even as mortgage rates inched up slightly, the Mortgage Bankers Association reports. The bulk of the increase in applications this week came from a 7.7 percent rise in applications from refinancings. Applications for home purchases, viewed as a leading indicator for future home sales, rose 2.5 percent. Overall, the mortgage application index -- which includes both refinancings and loans for purchase -- increased 7 percent in the week ending Jan. 18, the MBA reports. Meanwhile, 30-year fixed-rate mortgages averaged 3.62 percent last week, an increase of 1 basis point over the prior week, the MBA reports. Source: “U.S. Mortgage Applications Up for Third Week Despite Rate Rise,” Reuters (Jan. 23, 2013)

4 Ways Buyers Can Mess Up a Loan Approval

Your home buyers have gotten approved for a mortgage and now they’re just waiting to make it to the closing table. Make sure they don’t throw their loan approval into jeopardy by making one of these common mistakes: Making a big purchase: Tell your buyers to avoid making major purchases, like buying a new car or furniture, until after they close on the home. Big purchases could change the buyer’s debt-to-income ratio that the lender used to approve the buyer’s home loan and could throw the approval into jeopardy. Opening new credit: Inform your buyers that now isn’t the time to open up any new credit cards. Missing any payments: Home buyers need to be extra vigilant about paying all their bills on time, even if they’re disputing one. Cashing out: Avoid any transfers of large sums of money between your bank accounts or making any undocumented deposits — both of which could send up “red flags” to your buyer's lender.

Weekly info 1/11/2013

Markets barely moved this week, and there was no new data of note except the NFIB survey of small business. Its economist, Bill Dunkelberg: "The current Index value of 88 is a recession level reading." The index has had some better days recently, but is in the same basic place it has been since early 2008. The NFIB work is so sound, so long-running (same format since 1973), that those claiming a stronger national recovery underway have some explaining to do. The Consumer Financial Protection Bureau created by the Dodd-Frank spasm released its long-awaited Thou Shalt Not to the mortgage industry. After more than a year of probing, at who knows what taxpayer cost, the CFPB report and new rules found not one single mortgage practice underway today which should be stopped. A witch hunt worthy of Massachusetts in 1692 could not find a solitary agent of Satan.

4 Strategies for Selling in 2013

4 Strategies for Selling in 2013

From all the MLS's Highlights 1/10/13

Residential Highlights: 7.7% increase in the number of closed sales year-over-year (194) 18.2% increase in the number of closed sales year to date (5727) 29.9% decrease in average days on market (75) 28.1% decrease in number of active listings 14.5% increase in average price - sold ($315,451) Condo Highlights: 14.9% increase in number of closes sales year-over-year (1185) 36.8% decrease in average days on market (67) 37.4% decrease in number of active listings 12.3% increase in average price - sold ($186,877)

Week Info 1/4/2013

Long-term interest rates rose sharply this week, the 10-year T-note's 1.93% the highest since last April, and mortgages above 3.50% the top since summer. Three forces are in play: the Fed's December meeting minutes released yesterday indicated a 2013 end to QE4 bond-buying; second, hints of a better economy; and third, markets less than thrilled by fiscal substance-abusers. As always the economy trumps all, and the first week of each month brings the freshest data. December payrolls grew on forecast, 155,000 jobs, but no change in trend. The ISM manufacturing index in December flipped from just below stall speed at 49.5 to just above, 50.7; and its service-sector twin popped from 54.7 to 56.1. No recession, no acceleration; theories behind either are as suspect as ever since 2009.