Tag Archives: Home Sales

Mortgage interest rates have dropped to their lowest level in decades, and even with tight credit conditions, more borrowers are beginning to take advantage. The Mortgage Bankers Association (MBA) reported Wednesday that its index measuring mortgage loan application volume increased 2.7 percent for the week ending August 27, 2010, after interest rates dropped yet again. Refinance activity was up 2.8 percent, while home purchase applications rose 1.8 percent.

Home prices rose in June for the third consecutive month - a precipitate of the homebuyer tax credit that sparked a flurry of purchase activity in the spring. Buyer demand, though, has now dropped off substantially, and it's a trend that will likely rob the market of the recent rebound in home prices. According to the S&P/Case-Shiller index released Tuesday, home prices rose 1.0 percent in June compared to May. While June itself was positive, growth rates have already decelerated in 14 of the 20 metros included in S&P's study.

Moody's Investors Service says it expects home price appreciation to be ""soft"" for the next couple of years. The company says there were 1.8 million more vacant homes sitting on the market than what is considered the norm at the end of the second quarter, reflecting a rise in the number of homes that lenders are repossessing. According to Moody's, it will not be until 2012 that demand and supply conditions are balanced enough to drive price appreciation that matches the pace of inflation.

After a worse than expected falloff in home sales during the month of July, buzz about a possible revival of the federal homebuyer tax credit has begun to surface. Sales of previously owned homes plummeted 27 percent last month, hitting their lowest mark in 15 years. New home sales also took a dive, dropping nearly 13 percent. HUD Secretary Shaun Donovan says the July numbers were worse than was expected and are cause for concern, and he's not ruling out a return of the tax credit incentives.

Home sales activity in Illinois paused in July after nearly a year of home sale gains statewide. The lull is reported to be caused by the rush to meet the homebuyer tax credit deadline combined with weak job and economic reports. According to the Illinois Association of Realtors, the state's single-family and condo sales totaled 8,135 in July 2010, down 29.7 percent from July 2009's 11,566 homes. The median price was also down from $167,185 in July 2009 to $160,000 last month.

Mortgage interest rates are already at their lowest level in decades, and this week, they headed even lower. The descent was prompted largely by fears that another housing downturn could hamper the economic recovery, after July's home sales took a deeper plunge than expected. Freddie Mac reports that 30-year fixed-rate mortgages are now averaging 4.36 percent, and 15-year mortgages are at 3.86 percent. Bankrate says the larger jumbo 30-year fixed rate also slipped to a new record low of 5.22 percent.

July home sales in the state of California were down 19.9 percent from June and 21.9 percent from a year ago, MDA DataQuick reports. In the Bay Area, home sales for that month dropped sharply to their lowest level in 15 years, down 22.8 percent from July 2009. Southern California was also pummeled with its biggest year-over-year drop in more than two years, down 21.4 percent from 2009. On the positive end, the median price paid for a home last month in California was up 7.2 percent compared to a year ago.

The Mortgage Bankers Association (MBA) reported Wednesday that its index of mortgage application volume climbed 4.9 percent for the week ending August 20. Refinance activity was the driving force behind the increase. Record-low interest rates are prompting existing homeowners to take out new loans and lower their monthly mortgage payments.

Sales of previously owned homes in the United States plummeted 27.2 percent in July compared to the previous month, according to data released Tuesday by the National Association of Realtors (NAR). The market was bracing for a noticeable falloff as payback for the tax credits that pulled sales forward into the spring months, but the reality was worse than projected - nearly double the decline analysts were expecting. The July plunge pushed existing-home sales down to an annual rate of 3.83 million units, their lowest level since May of 1995.

Now that the federal government's homebuyer tax credit stimulus is in the rear view mirror, residential home sales are in a period of correction, according to RE/MAX. The real estate conglomerate's July housing report tracks market conditions in 54 major metropolitan areas across the country. It revealed that closed transactions in July were 27.8 percent lower, while prices were 1.3 percent higher than during July 2009. Home prices in California marked the highest year-to-year gains in the survey, accompanied by Honolulu and Boston.