Mortgage News:

11/23/2006

Mortgage Rates and Consumer Features...
  This Week Last Week  
30-Year Fixed 5.71% 5.72% Graph
15-Year Fixed 5.48% 5.48% Graph
Jumbo (30-Year) 6.03% 6.04% Graph
5/1 ARM 5.53% 5.54% Graph

Source: Bankrate.com

The rate has been hovering around 6.20% percent in recent weeks. The Mortgage Bankers Association expects it to inch up to 7.1 percent next year and 7.9 percent in 2007.

Mortgage Rates Inch Lower
Nov. 6, 2006
According to Freddie Mac, the national average commitment rate for a 30- year, conventional, fixed-rate mortgage was 6.40 percent in September, down from 6.52 percent in August.

Interest rates have fallen seven months in a row and are near 40 year lows
October 25, 2006.
Mortgage rates went up slightly, in a week in which markets awaited word on what the Federal Reserve would say about the economy. The answer: Clear skies, with a slight chance of inflation. The average 30-year fixed rate rose to 6.46 percent from 6.42 percent. The average 15-year fixed, which is a popular option for refinancing, rose 6 basis points, to 6.16 percent. A basis point is one-hundredth of a percentage point. On bigger loans, the average jumbo 30-year fixed rose to 6.7 percent from 6.67 percent. Adjustable-rate mortgages rose, too. The popular 5/1 ARM climbed 4 basis points, to 6.28 percent, while the 1-year ARM jumped 7 basis points, to 5.99 percent.

Rates weren't much affected by news that home resale prices fell again 
 
RISMEDIA, May 26, 2006- Average 30-year fixed rate mortgage moving to 6.69 percentFixed mortgage rates showed a slight increase in the past week, with the average 30-year fixed rate mortgage moving to 6.69 percent, according to Bankrate.com's weekly national survey of large lenders, which remains the highest since the week of June 12, 2002. The 30-year fixed rate mortgages in this week's survey had an average of 0.36 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing inched higher to 6.31 percent. On larger loans, the average jumbo 30-year fixed rate increased to 6.87 percent. Adjustable rate mortgages dipped this week. The average 5/1 adjustable rate mortgage slipped to 6.27 percent, and the average one-year ARM moved down to 5.90 percent.

Bankrate conducts its rate survey on Wednesdays, and last week, that fell on the same day that the Consumer Price Index for April was released. It showed that inflation was running higher than most investors had expected, and bond traders overreacted, sending bond yields and mortgage rates higher. Those rates and yields retreated a bit this week from that overreaction.
Enjoy the reprieve while you can. Most economists and mortgage bankers expect rates to generally rise the rest of this year, with the usual spikes and dips. The 30-year fixed has risen about half a point since January, and the Mortgage Bankers Association's chief economist David Duncan predicts that it will rise another 20 basis points or so by the end of the year.

Fixed mortgage rates have increased notably compared to one year ago. This time last year, the average 30-year fixed mortgage rate was 5.72 percent, meaning that the monthly payment on a loan of $165,000 was $959.75. Although fixed mortgage rates have been up and down since, the average 30-year fixed rate is now 6.69 percent, meaning the same loan originated now would carry a payment of $1,063.61.
 Fixed-Rate Mortgages Not Practical for Most
August 25, 2004) --   Fixed-rate mortgages are no longer practical for many borrowers, according to lenders, because it's so common for homeowners to move well before the end of their 15- or 30-year terms.

In an effort to generate business and meet the needs of their customers, lenders are marketing hybrid adjustable-rate mortgages with fixed rates for a certain period; interest-only loans that allow borrowers to save on their monthly payments during the initial years of ownership; and combinations of first and second mortgages that eliminate the need for private mortgage insurance.

However, these financing options can be risky, considering that interest rates and monthly payments on hybrid and interest-only loans will rise eventually. Meanwhile, borrowers with interest-only mortgages also fail to accumulate equity, aside from gains attributed to appreciation.

Source: Associated Press (08/23/04); Bradley, David

Author: Beth Bresnahan
By Emily Bregel . The Baltimore Sun

Publishing date: 08/20/04

RISMEDIA, August 20 (KRT) Benchmark 30-year fixed mortgage rates fell to 5.81 percent nationally this week, the lowest in four months, Freddie Mac reports.


It marked the third straight week that the 30-year rate averaged less than 6 percent and it was the lowest since the second week of April. Thirty-year rates averaged 5.99 percent in the Baltimore area this week, according to HSH Associates, the Pompton Plains, N.J. firm that studies mortgage markets.

Borrowing costs for housing have declined as the economy slowed from April though June and after recent data showed few signs of employment growth at the start of the current quarter. It has been welcome news to prospective homebuyers since many economists still predict that borrowing costs will rise by the end of the year.

"Suddenly, we get some negative economic news and the (Federal Reserve Board) may not be so eager to tighten credit," said Bob Kaestner, vice president in consumer real estate at the Bank of America and a spokesman for the Maryland Mortgage Bankers Association.

Thirty-year rates stood at 5.85 percent a week ago. The one-year adjustable rate dropped to 4.01 percent nationally this week, the lowest in two months, from 4.08 percent, said Freddie Mac, the second-biggest purchaser of U.S. mortgages. Fannie Mae is the largest.

The average 15-year fixed rate nationally, which often is a barometer of the costs to refinance existing loans, fell to 5.19 percent from 5.24 percent. In the Baltimore area, 15-year rates averaged 5.36 percent and one-year ARMS averaged 4.54 percent, according to HSH.

"Thanks in part to the low mortgage rates we have experienced thus far, 2004 will be another banner year for the housing industry," said Frank Nothaft, chief economist at Freddie Mac.

Maryland residents have experienced a stable economy and better job prospects than much of the nation. That, coupled with extraordinarily low mortgage rates, have pushed sales and price appreciation to records during each of the past three years.

Housing sales in Baltimore and its five surrounding counties were 12 percent higher through July compared with the first seven months of 2003, according to Metropolitan Regional Information Systems Inc.

The median sales price of an existing single-family home in the Baltimore area rose 23 percent to $251,700 during the second quarter compared with the corresponding three months last year, according to the National Association of Realtors. That appreciation rate tied Washington for the 15th fastest in the nation in a survey of 129 metropolitan areas.

"We're our own little island over here," said Cindy Ariosa, president of the Greater Baltimore Board of Realtors. "I think because of the (economic) diversity that the Baltimore and Washington area experiences, we may not have this downtrend that the rest of the nation has. Unfortunately, we are reaping the benefits of the downfalls of the economy in the other parts of the country."

At the current 30-year fixed rate nationally, borrowing costs for a $100,000 mortgage would be $587 a month, compared with $615 last year at this time when the rate was 6.24 percent.

Most experts believe the decline in average mortgage rates won't continue as the national economy improves. "I do think on a whole the interest rates will begin to climb (again)," Ariosa predicted. "This ... may just be a unique situation right now."

Bloomberg News contributed to this article.

2004, The Baltimore Sun. Distributed by Knight Ridder/Tribune Business News.

RISMEDIA welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com

What Does the Interest Rate Increase Mean for the Economy?

By William Neikirk Publishing date: 08/11/04 Chicago Tribune

RISMEDIA, August 11 (KRT) The Federal Reserve stood its ground Tuesday and raised interest rates modestly for the second time this summer, despite signs of a weaker job market and slower economic growth.

The central bank did not rule out another interest rate hike in September and, in fact, said its monetary policy, even with higher interest rates, is still "accommodative" - that is, enough to keep the economy rolling.

Unless the economy weakens significantly, said Mickey Levy, chief economist at the Bank of America, the Fed likely will raise interest rates again at its next meeting on Sept. 21, the last one before the Nov. 2 presidential election. Several other analysts agreed.

The central bank coupled its interest-rate hike with a sunny outlook, saying the economy is poised to shake off its sluggishness and resume "a stronger pace of expansion going forward," reassuring words that helped boost the stock market.

The 0.25 percent increases the Fed appears to have in mind are designed to bring extremely low interest rates up to a more normal level over time and to prevent prices from rising out of control. The "measured" pace of the increases is calculated to get interest rates back up without harming the economy.

Two straight months of weak job growth and a "soft patch" in economic conditions had caused many analysts to wonder if chairman Alan Greenspan's Fed would take a break from its strategy of steadily increasing interest rates over the next year.

The Fed's policy-making arm, the Federal Open Market Committee, answered with a firm no. First, it upped its benchmark short-term interest rate by one-quarter of 1 percent, the same increase as in June, and then served notice it would continue to boost interest rates at a "measured" pace over the longer haul.

The decision put the so-called federal funds rate, the rate at which banks borrow from each other, at 1.5 percent. This rate influences short-term rates across the economy, including the prime lending rate.

The Fed blamed the recent "soft patch" in the economy chiefly on a "substantial rise in energy prices" and implied that it expected that oil prices would not continue to increase in the immediate future.

Most economic analysts had expected the increase, but many added that they were surprised that the Fed is sticking with its "measured" plan for a series of interest rate increases amid new evidence the economy had begun to slow.

David Resler, chief economist at Nomura Securities International, said the Fed's statement was "a lot more upbeat than I would have expected would be the case" in view of recent downbeat economic statistics. But he added that he agrees with the central bank that the economy will get stronger.

Even with a modest increase in interest rates, the Fed said, "the stance of monetary policy remains accommodative and, coupled with robust underlying growth in productivity, is providing ongoing support to economic activity."

Agreeing with the decision was Brian Wesbury, chief economist at the Chicago investment banking firm of Griffin, Kubik, Stephens & Thompson Inc. He said holding the Fed's benchmark rate below the rate of inflation for an extended period would be a "recipe for stagflation (a stagnant economy with high inflation) and disaster."

"They didn't back off," said Bill Zadrozny, chief executive at Siemens Financial Services, commenting on reports that the central bank might soften its monetary stance.

But Peter Morici, business professor at the University of Maryland, disagreed sharply with the central bank, saying monetary policy is not as accommodative to economic growth as it appears.

Rising energy prices are not the only drag on the economy, he said. Others include an end to the fiscal stimulus provided by lower tax rates, a trade deficit that drains away jobs to other countries and a weak stock market, he said.

"Unemployment above 6 percent in 2005 is becoming a genuine risk," he said. It was 5.5 percent in July.

In today's economy, Morici said, the U.S. needs much lower interest rates to grow over the long run.

Another bearish statement came from Peter Schiff, president of Euro Pacific Capital, a California investment firm, who claimed the U.S. economy is beset with many deep problems, including heavy consumer debt, a housing market "bubble" and too many heavily indebted corporations. He said a deep recession is inevitable, and the Fed should bring it on more quickly to "purge all the mistakes of the boom."

But most economic analysts had more measured comments. Cynthia Latta, principal U.S. economist at Global Insight, a consulting firm, said she expected that the nation's chief monetary authority would revamp its statement slightly to take note of this summer's "soft patch."

"I guess they are a little hesitant to suggest things might be falling apart," she said.

Latta predicted the economy will grow by 3.9 percent in the second half of the year, less than the strong 5 percent bounceback the central bank has forecast. And 2005 looks like a solid year too, she said.

Many analysts, Resler among them, believe that the recent soft job numbers do not accurately reflect the strength of the employment market.

They say statistical quirks, essentially seasonal factors, understated the amount of hiring that actually took place in June and July. The Fed did not comment on this point of view, but didn't appear to be overly concerned about job developments.

2004, Chicago Tribune.

Distributed by Knight Ridder/Tribune Information Services.

RISMEDIA welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com
Author: Beth Bresnahan

Study Shows Poor, Minorities Prefer ARMs, But Understand Them the Least

By Richard Newman . The Record (Bergen County, N.J.)

RISMEDIA, July 28 (KRT) Interest rates are rising, and adjustable-rate mortgages are growing in popularity because they allow borrowers to start out with lower monthly payments.

And the borrowers most likely to prefer ARMs - low-income and minority homebuyers - have the least understanding of the potential cost, according to a new study.

"Given the high probability of interest rate increases, an adjustable-rate loan made to a family which can barely afford the initial monthly payments represents a ticking time bomb," said Stephen Brobeck, executive director of the Consumer Federation of America, which funded the study.

Unlike a fixed rate, in which a borrower locks in costs for the length of a loan, the rate on an ARM fluctuates with market conditions. If rates go down, the borrower benefits.

Federal Reserve Chairman Alan Greenspan said earlier this year that in the past decade, when rates hovered at historic lows, consumers could have saved thousands of dollars each if they had ARMs instead of fixed-rate loans. But with rates rising, that could change, adding hundreds or even thousands of dollars to a borrower's annual interest expense.

The average rate on a 30-year fixed loan was 5.6 percent in the first three months of 2004. The rate has been hovering around 6 percent in recent weeks. The Mortgage Bankers Association expects it to inch up to 7.1 percent next year and 7.9 percent in 2007.

According to the Mortgage Bankers Association, a Washington, D.C., trade group, ARMs accounted for only 19 percent of loan originations last year but are expected to account for 34 percent this year and 38 percent next year.

Hybrid ARMs - which have a fixed rate for three, five or seven years before the adjustable rate kicks in - particularly have been growing in popularity.

The survey found that two-thirds of those surveyed preferred fixed-rate loans and were aware of risks posed by ARMs. But those who were most likely to prefer ARMs were the younger, poorer and less educated respondents.

Hispanic and African-American respondents also were more likely to prefer adjustable-rate loans.

Opinion Research Council International polled 1,015 people - 64 percent of whom were homeowners and 26 percent renters - July 8-11.

When asked to estimate the increase in mortgage payments on a $200,000 loan that started at 6 percent and rose to 8 percent the respondents underestimated the amount by about 30 percent.

The correct answer is $3,210 over a year, but the average estimate by respondents was $2,248.

Hispanics, young adults, poor people and those with no high school degrees underestimated the true cost by 40 to 50 percent.

"The traditional role of ARMs is to be a tool for the wealthy, educated and most aware consumers to try to take advantage of market fluctuations," said Brad Scriber, the federation's housing coordinator. "We were surprised to find that low-income and minority borrowers prefer adjustable-rate mortgages. Predicting rates is as difficult as predicting the stock market."

Experts say that even in a rising rate environment, ARMs still have a role. For instance, a borrower who expects her income to increase substantially in future years might benefit. Or if a couple plans on selling a house in five years, a hybrid might make sense; they can sell the house before the rates go up.

Although the survey questions pertained only to home purchase loans, adjustable-rate home equity loans bring the same risks, said Scriber. Consumers should also be especially wary of the delayed financial impact of interest-only loans that many banks have been pushing, Scriber said. For millions of Americans homeownership acts as a forced savings plan as the principal paid is like money in the bank, he said. But with interest-only loans, a borrower builds up no equity.

"An interest-only mortgage doesn't contribute to wealth in the same way," he said.

The study, released Monday, "reinforces what we know to be the case," said Ken Zimmerman, executive director of the New Jersey Institute for Social Justice, a Newark-based research and advocacy group that studied home foreclosure patterns in low-income neighborhoods and supported an anti-predatory lending law in New Jersey. "The complexity of the mortgage process brings potential for abuse."

Heather McElrath, spokeswoman for the American Bankers Association, said the Federation "raises some valid points about consumer education," but "we have no evidence there have been aggressive tactics to promote ARMs to those who cannot afford them."

Doug Duncan, chief economist of the Mortgage Bankers Association, was more critical of the survey.
"They set out with a point of view that it was looking to have supported," he said.
Duncan said an executive summary of the study "inferred that lenders can be better off if a customer takes out a loan and goes into foreclosure." The opposite is true, he said.

The question that stumped respondents about the impact of higher interest rates was "not a realistic survey question," he said. "Even I couldn't answer that question without my HP financial calculator.''

2004, The Record (Bergen County, N.J.)Distributed by Knight Ridder/Tribune Information Services.

RISMEDIA welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com


Higher Interest Rates Won't Hurt Housing,
Says NAR Forecast

Author: Beth Bresnahan


Publishing date: 07/06/04

 

RISMEDIA, July 6-Interest rates are rising due to healthy economic growth and they won't dampen the general strength of the nation's housing market, according to the National Association of Realtors.

David Lereah, NAR's chief economist, said the cause of higher interest rates makes all the difference. "The reason interest rates are higher is that we are in a growing economy rather than dealing with inflationary pressures," he said. "This is good news because corporate profits are up 40 percent from two years ago, so companies are spending and jobs are being created at a strong pace. In the housing markets, this is largely neutralizing the effects of modestly higher interest rates."

"In fact, mortgage interest rates will remain very favorable in historic terms for the foreseeable future. One concern is for lower-income home buyers who are affected the most by a rise in financing costsour hope is that the improving job market will provide the means to also afford decent housing at the lower rungs of the housing ladder," Lereah said.

Short-term interest rates are rising slowly, and long-term rates rose previously in anticipation of the Federal Reserve Board move last week. The 30-year fixed-rate mortgage retreated last week to 6.21 percent after reaching the 6.3-percent range in May, but should creep up to 6.7 percent by the fourth quarter. Unemployment is trending down and is expected to be 5.2 percent by the beginning of next year.

Lereah forecasts existing-home sales to hit a record 6.31 million this year, up 3.4 percent from 2003. New-home sales are expected to rise 6.4 percent to 1.16 million in 2004, also a record. Housing starts should grow by 2.6 percent to 1.90 million, the highest level since the impact of the baby boom generation in 1978.

The median existing-home price should rise 6.7 percent this year to $181,500; the median new-home price is seen at $209,600, up 7.9 percent from 2003.

NAR projects the U.S. gross domestic product to grow 4.5 percent this year, while the Consumer Price Index should rise 2.7 percent in 2004.

Inflation-adjusted disposable personal income is expected to grow by 3.8 percent this year, and the consumer confidence index will trend up to101 in the fourth quarter.

More detailed information about NAR's economic outlook, as well as other analysis of real estate industry statistics, can be found in the July issue of NAR's Real Estate Outlook: Market Trends and Insights. The publication may be purchased by calling 800/874-6500.

RISMEDIA welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com


(June 18, 2004) --   Freddie Mac reports an uptick in the 30-year mortgage rate, to 6.32 percent from 6.30 percent during the week ended June 17.

"The recent increase in mortgage rates has given the housing market a slight breather from the frantic pace in lending that has been prevalent over the last few years," says Frank Nothaft, Freddie Mac's chief economist.

He attributes the recent decline in housing starts to a weakening in the multifamily sector but insists that single-family building activity remains robust.

Interest on 15-year loans rose as well, inching up to 5.70 percent from 5.67 percent; but the one-year adjustable mortgage rate slipped a notch to 4.13 percent from 4.14 percent.

Source: The Wall Street Journal (06/18/04)

One Small Step for Fixed Mortgage Rates, One Giant Leap for Adjustable Rates, Bankrate Reports. Publishing date: 06/10/04

RISMEDIA, June 10-Fixed mortgage rates continue to move in small steps, but rates on one-year adjustable rate mortgages jumped significantly this week.

According to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed rate mortgage increased from 6.34 percent to 6.36 percent, while the average one-year adjustable rate mortgage increased from 4.12 percent to 4.32 percent.

The average 30-year fixed rate mortgage has fluctuated between 6.34 percent and 6.37 percent for the past month, while the average one-year ARM is now the highest since January 2003. The 30-year fixed rate mortgages in this week's survey had an average of 0.3 discount and origination points.

The 15-year fixed rate mortgage popular for refinancing climbed 5 basis points to 5.75 percent, while the jumbo 30-year fixed rate mortgage inched 1 basis point higher to 6.54 percent. A basis point is one one-hundredth of one percentage point.

Although fixed mortgage rates have been treading water over the past month, short-term interest rates have been particularly sensitive to the prospect of looming Federal Reserve interest rate hikes. Another strong employment report released June 4, and Alan Greenspan's hawkish comments about inflation on June 8 affirmed that the Fed will begin boosting interest rates at the end of June, Bankrate reports.

Yields for short-term Treasury bills, a common benchmark for adjustable rate mortgages, increased to reflect the likelihood of upcoming interest rate hikes. After rising rapidly between March and May, long-term Treasury yields responded in a more modest fashion. Mortgage rates are closely related to the yields on government bonds.

One year ago, mortgage rates reached historic lows. On June 11, 2003 when the average 30-year fixed rate mortgage was 5.28 percent, the monthly payment for a $165,000 loan was $914.20. With mortgage rates now more than one full percentage point higher at 6.36 percent, the monthly payment for the same size loan is $1,027.77. The difference in monthly payments is $113.57 or nearly $41,000 over the loan term.

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For more information, visit Web site: http://www.bankrate.com/

RISMEDIA welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com

Author: Beth Bresnahan

 

 

Home Equity Loans on the Rise, LendingTree Projects

Found at: http://www.rismedia.com/index.php/article/articleprint/6760/-1/1/

Author: Beth Bresnahan

Publishing date: 06/09/04

RISMEDIA, June 9-The popularity and prevalence of home equity loans is on the rise, indicating that 2004 will become the year of the home equity loan, according to LendingTree, Inc.

The inaugural LendingTree Survey on Consumer Trends in Home Equity Lending polled a representative sample of homeowners, and results underscore the fact that borrowers have caught on to the financial value and versatility that home equity loans and lines of credit (HELOC) offer today's homeowner.

"It's clear that homeowners are becoming more sophisticated about tapping into their home's borrowing power," said LendingTree Chief Consumer Officer Brian Regan. "When used wisely, home equity loans are a sound choice for many consumers. They can be used for virtually anything -- from home repairs to college costs to debt consolidation, even buying a car or covering unexpected medical expenses -- their interest rates are usually lower than other forms of credit, and the interest paid on the loan may be tax deductible."

Key findings of the survey include:

* Home Equity Loans on the Rise: By the end of 2004, a projected 23.5% of respondents will have secured a home equity loan, double the number who did so in 2003. For comparison, 11.7% secured home equity loans in 2003, 6.7% in 2002, and 5.5% in 2001.

* Home Equity Loans Equal Smart Debt: 55.4% considered home equity loans the most financially responsible lending option, as compared to 20% for personal loans, 17.5% for mortgage refinancing with cash out option,
and 7.1% for credit card loans.

* Giving Credit to Lines of Credit: The popularity of home equity lines of credit has increased dramatically over the past decade. In just the first four months of 2004, 68.3% of homeowners selected a home equity line of credit instead of a home equity loan. For comparison, 37.5% selected HELOC in 1999, 23.1% in 1994.

* Eligibility: Even though a majority of homeowners are eligible for home equity loans (approximately 80% according to industry estimates), a significant group of the homeowners surveyed didn't realize they were eligible. Of those surveyed, 35% were either unsure of their eligibility or certain they do not qualify for a home equity loan.

* Understanding Home Equity Loans: As financially savvy as some homeowners have become, many are still confused about the specific characteristics of home equity loans. 80.2% of homeowners were unsure if a home equity loan and a second mortgage are the same thing.

* Trading Bad Debt for Smart Debt: For those who secured a home equity loan for debt consolidation purposes, almost half (49.1%) indicated that their current financial circumstances had significantly improved. After that, 36.6% said their financial circumstances remained about the
same.

* Versatile Uses: The most popular uses for home equity loans were home improvement at 38.1%, debt consolidation at 31.9%, home purchase at 4.6%, auto purchase at 4.3%, college tuition at 2.9%, and small business expenses at 2.2%.

* Creative Uses by Age and Demographic: Among 18-35 year-olds, 7.4% felt that a home equity loan would be a good tool for covering baby-related expenses. Among 36-54 year-olds, 18.8% indicate home equity loans would be ideal for healthcare expenses, and 20.4% think they would be
useful to cover college costs. Among those ages 56 and over, 17.0% thought home equity loans would be ideal for a new auto purchase.

* Internet Benefits: More than 44% of respondents used the Internet for financial/consumer transactions, and 71.3% of them cite convenience and speed as the primary benefit of using the Internet. After speed and convenience, the ability to compare multiple offers was seen as the most beneficial aspect of using the Internet for consumer and financial
transactions.

More Homeowners Take Equity Lines of Credit, Census Bureau Reports

Found at: http://www.rismedia.com/index.php/article/articleprint/6720/-1/1/

Author: Beth Bresnahan

Publishing date: 06/03/04

RISMEDIA, June 3-About 7.2 million homeowners took out home equity lines of credit last year, up 12 percent from 2001 when 6.4 million such credit lines were established, according to tabulations released by the U.S. Census Bureau.

The source of this information, the American Housing Survey (AHS), sponsored by the Department of Housing and Urban Development, entered its fourth decade with the publication of 2003 results.

First conducted for 1973, the AHS provides information on a variety of topics, including homeownership, characteristics of homes and their owners, housing costs, vacation homes, gated communities and peoples views of their neighborhoods.

Some highlights from the 2003 AHS:

* About 3.8 million homeowners had lump-sum home equity mortgages, down nearly 20 percent from 2001, when there were 4.7 million such loans.
* Homeowners occupied more than 72 million homes. Overall, the nation had about 106 million occupied housing units.
* Renters occupied 33.6 million housing units.
* The nations median current mortgage interest rate was 6.7 percent, down from 7.5 percent in 2001
* The median value of owner-occupied homes was $140,000.
* Between 2001 and 2003, the number of owner-occupied units with four or more bedrooms increased by about l million to 18.7 million.
* There were 3 million owner-occupied homes in gated communities.
* The vacancy rate for rental housing units was 9.6 percent, up from 7.8 percent in 2001.
* On a scale of 1-to-10, with 10 being the best, 3-in-4 homeowners rated their neighborhood an 8 or higher.

The statistics released on the Internet will be available in printed reports later in the year. Statistics from surveys are subject to sampling and nonsampling error. For more information, visit www.census.gov.

RISMEDIA welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com

NAR Backs Zero Downpayment Bill

Found at: http://www.rismedia.com/index.php/article/articleprint/6733/-1/1/

Author: Beth Bresnahan

Publishing date: 06/04/04

RISMEDIA, June 4-First-time home buyers would be able to roll downpayment and closings costs into loans backed by the Federal Housing Administration (FHA), in legislation supported by the National Association of Realtors and approved this week by the U.S. House Financial Services Committee.

The Zero Downpayment Act of 2004, H.R. 3755, a bipartisan bill that would authorize the development of zero-downpayment product for FHA borrowers, was introduced earlier this year by U.S. Rep. Patrick Tiberi (R-Ohio) and was included in the president's 2005 budget. Realtors affirmed their support for the program at NAR's Midyear Legislative Meetings last month.

The NAR says that a new zero downpayment product will greatly expand the reach of the FHA program. As housing prices continue to rise in many communities, prospective home buyers might qualify for an FHA loan but can't come up with the downpayment and closing costs necessary for homeownership.

The Zero Downpayment Act would eliminate this problem and create a whole new market of home buyers who could afford the American dream," said NAR President Walt McDonald, broker-owner of Walt McDonald Real Estate in Riverside, Calif.

"NAR proudly supports new programs that reduce home buying costs and help more people achieve the American dream of homeownership. Unfortunately, the ability to come up with downpayment and closing costs on a home remains a challenging hurdle for many Americans," McDonald said.

The Zero Downpayment Act would require borrowers to meet FHA's underwriting criteria, but their downpayment and closing costs could be rolled into the loan. Borrowers would pay a higher upfront premium, have higher monthly premiums for five years, be required to attend pre-purchase counseling, and the loans would have an interest rate that is 1/4 percent higher than a traditional FHA loan.

RISMEDIA welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com

Mortgage Rates Stabilize for Second Week in Row

Author: Beth Bresnahan

Publishing date: 05/27/04

RISMEDIA, May 27-Mortgage rates stabilized for the second consecutive week, with the average 30-year fixed rate mortgage remaining unchanged at 6.35 percent according to Bankrate.com's weekly national survey of large lenders.

Last week, the average 30-year fixed rate mortgage dipped from 6.37 percent to 6.35 percent. The mortgages in this week's survey had an average of 0.39 discount and origination points.

The 15-year fixed rate mortgage popular for refinancing retreated from 5.74 percent to 5.71 percent. The jumbo 30-year fixed rate mortgage and one-year adjustable rate mortgage each declined 1 basis point to 6.54 percent and 4.11 percent, respectively. A basis point is one one-hundredth of one percentage point.

Mortgage rates have shown comparatively little movement over the past two weeks compared with a sharp jump during the preceding eight-week span. Mortgage rates have stabilized as investors are coming to grips with the outlook for higher interest rates, rising oil prices, and uncertainty around the globe. From March 17 through May 12, the average 30-year fixed rate
mortgage increased from 5.41 percent to 6.37 percent in response to good economic news and long-awaited evidence of job growth.

Since then, the average 30-year fixed mortgage rate has settled at 6.35 percent as demand for long-term Treasury securities has moderated. Mortgage rates are closely related to
the yields on long-term government bonds.
Mortgage rates and monthly mortgage payments are both significantly higher than two months ago. As of March 31, when the average 30-year fixed rate mortgage was 5.6 percent, the monthly payment for a $165,000 loan was $947.23.
Today, with the average rate at 6.35 percent, the monthly payment on the same loan is $1,026.69. The difference in monthly payments of $79.46 amounts to more than $28,600 over the loan term.

For more information, visit http://www.bankrate.com/RTI

RISMEDIA welcomes your questions and comments. Send your e-mail to: editorial@rismedia.com

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 Aventura

South Beach

Downtown

 North Miami  Fisher Island  Uptown

Sunny Isles

Miami (Mid) Beach

Miami River

Hallandale Beach

North Bay Village
& Normandy Isle

  Brickell area
 Hollywood Beach  

Surfside

  Brickell Bay
Ft Lauderdale   

Bal Harbour

Design District
Midtown

South Side

Upper East Side

 Coral Gables Pre Launch & VIP Lists
Enroll Here 		 Biscayne Blvd.
East to the Bay
 Coconut Grove

Request Information

 On & Off Biscayne
Boulevard

click on the name of the area of your interest  to jump directly to new projects listings arranged by location  & feel free to browse through the pages to learn and appreciate the extent of the changes going on.
.

For more information
CONTACT US & WIN

Omar H. Scandura,P.A.
Realtor®, e-PRO
Mortgage Consultant

Email me At: info@MiamiRealtyShow.com
For a private consultation.
Please call me

   


(305) 962-4532


Carson Realty Group, Inc.
                   

BUYERS, INVESTORS: 
Why using a Realtor
when buying new construction property. Benefits.
                                                                                        
Need financing? 

Would you like to request brochures or information on any New Construction projects in Miami?

COMPRADORES, INVERSIONISTAS: 

Necesita Financiacion?

Porque usar un agente al comprar nueva construccion es un beneficio para Ud.
sin costo alguno?
                                                                                        
Do you Need financing?      Para financiamiento oprima aqui

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Information believed to be accurate but not guaranteed. Prices, Terms & Availability are subject to change without notice. Subject to errors, omissions, prior sale and withdrawal at any time. Square footage is believed to be accurate, but may be revised. All Names and Pre-Construction information are property of their corresponding developers. The material in this site is based upon information which we consider reliable, we cannot represent that it is accurate or complete and it should not be relied upon as such.

Oral representations cannot be relied upon as correctly stating the representations of the Developer. For correct representations make reference to the brochures and to the documents required by Section 718.503 Florida Statues to be furnished by a developer to a buyer or lessee.

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Nothing on this pages should be constructed as legal or financial advise. Information shown for informational purposes only.

Please consult your private consultants to discuss your alternatives and best options based upon your own circumstances.