Friday, December 30, 2011

Pending Home Sales Index Rises Back Above 100

Pending Home Sales IndexLow home prices and mortgage rates have combined to push home affordability to record levels nationwide. Home buyers are taking advantage.

The Pending Home Sales Index rose 7 percent in November to rise to its highest level since April 2010, the last month of last year's home buyer tax credit program. 

The Pending Home Sales Index is published monthly by the National Association of REALTORS®. It measures homes under contract nationwide, but not yet "sold". 

In this way, the Pending Home Sales Index is different from other housing market indicators. It's a "forward-looking" figure; a predictor of future home sales. According to the National Association of REALTORS®, more than 80% of homes under contract close within 60 days. 

By contrast, housing data such as the Existing Home Sales report and the New Home Sales report "look back".

November marks the second straight month of Pending Home Sales Index improvement. The housing market metric made big gains of 10 percent in October 2011, as well.

On a regional basis, each part of the country showed an increase in homes under contract.

  • Northeast Region: +8.1 percent from October 2011
  • Midwest Region : +3.3 percent from October 2011 
  • South Region : +4.3 percent from October 2011
  • West Region : +14.9 percent from October 2011

However, here in Phoenix, we must discount the value of even the regional data, somewhat. Like else in real estate, the volume of homes going under contract vary by locality.

Throughout the West Region, for example, the region in which pending home sales increased the most from October, there are nearly a dozen states. Undoubtedly, some of those states performed better than others in terms of "homes under contract", but we don't have an indication of which states those were.

In addition, within each state, every city, town, and neighborhood realized its own unique market in November, and produced its own sales statistics.

For buyers and sellers throughout Arizona and the country, therefore, it's more important to watch data on a local level than on a national one. Reports like the Pending Home Sales Index are helpful in showing national trends, but as an individual, what you need are local trends.

For local real estate data, be sure to ask your agent.

Thursday, December 29, 2011

Nationally, Home Prices Off 18.3 Percent From April 2007 Peak

Home Price Index since April 2007 peakThe government confirms what the private-sector Case-Shiller Index reported yesterday. Nationwide, average home values slipped in October.

The Federal Home Finance Agency's Home Price Index shows home values down 0.2% on a monthly, seasonally-adjusted basis. October marks just the second time since April that home values fell month-over-month.

The Case-Shiller Index 20-City Composite showed values down 0.7 percent from September to October.

As a home buyer in Chandler , it's easy to look at these numbers and think housing markets are down. Ultimately, that may prove true. However, before we take the FHFA's October Home Price Index at face value, we have to consider the report's flaws.

There are three of them -- and they're glaring. As we address them, it becomes clear that the Home Price Index -- like the Case-Shiller Index -- is of little use to everyday buyers and sellers.

First, the FHFA Home Price Index only tracks home values for homes backed by Fannie Mae or Freddie Mac mortgages. This means that homes backed by the FHA, for example, are specifically not computed in the monthly Home Price Index.

In 2007, this was not as big of an issue as it is today. in 2007, the FHA insured just 4 percent of the housing market. Today, the FHA is estimated to have more than one-third of the overall housing market.

This means that one-third of all home sales are excluded from the HPI -- a huge exclusion.

Second, the FHFA Home Price Index excludes new home sales and cash purchases, accounting for home resales backed by mortgages only. New home sales is a growing part of the market, and cash sales topped 29 percent in October 2011.

Third, the Home Price Index is on a 60-day delay. The above report is for homes that closed in October. It's nearly January now. Market momentum is different now. Existing Home Sales and New Home Sales have been rising; homebuilder confidence is up; Housing Starts are showing strength. In addition, the Pending Home Sales Index points to a strong year-end.

The Home Price Index doesn't capture this news. It's reporting on expired market conditions instead.

For local, up-to-the-minute housing market data, skip past the national data. You'll get better, more relevant facts from a local real estate agent.

Since peaking in April 2007, the FHFA's Home Price Index is off 18.3 percent.

Wednesday, December 28, 2011

New Home Sales Approach Bull Market Territory

New Home Supply 2010-2011New home inventory is approaching bull market territory.

According to the Census Bureau, the number of new homes sold rose 2 percent in November. On a seasonally-adjusted, annualized basis, home buyers bought 315,000 newly-built homes last month.

November's New Home Sales data marks the 4th straight month of rising sales volume, lifting the housing-market metric to a 7-month high, and adding to the housing market's recent show of strength. 

Last week, we learned that Existing Home Sales also climbed in November.

The big story in the New Home Sales report, though, is the remaining new home supply nationwide.

With just 158,000 homes "on the market" and the pace of home sales hastening, the complete, national inventory of "new homes" would now be sold in just 6.0 months, a 0.2-month improvement from October. This is the quickest home sales pace in nearly 6 years for the new construction market. 

It's even faster than in April 2010 -- the buyer-deadline month of last year's federal home buyer tax credit.

Home builders expect the trend to continue, too. Buyer foot traffic is on the rise and builders have a strong outlook for the next 6 months.

It's an unsettling series of developments for today's Phoenix home buyers. As home supplies drop and builders gain confidence, the ability of an buyer to negotiate for price reduction and/or upgrades shrinks.

If you're a home buyer in search of new construction, therefore, consider that the best new construction "deals" of the next 12 months may be the ones you find today.

Tuesday, December 27, 2011

America's To 10 Safest Cities, Ranked

America's safest citiesLooking for safe cities in which to live? A recent study may help you.

Titled "America's Safest Cities", Forbes Magazine compiled data from more than 70 cities with populations of 250,000 or more, and ranked them by violent crime rate as reported by the Federal Bureau of Investigation.

A "violent crime" is one that can be categorized as murder, robbery, and assault, among others. Then, for each metropolis, local traffic-fatality rates were added to the area's violent crime rate, and averaged into the data.

Forbes presents the 10 safest large cities in America as :

  1. Plano, Texas
  2. Henderson, Nevada
  3. Honolulu, Hawaii
  4. Santa Ana, California
  5. Lincoln, Nebraska
  6. San Jose, California
  7. Mesa. Arizona
  8. Colorado Springs, Colorado
  9. Aurora, Colorado
  10. New York, New York

Forbes is quick to note that "gridlocked" traffic patterns help keep cities safe; which may explain why cities like Honolulu and New York City made the Top 10. When cars are forced to move more slowly, the report states, traffic-related fatalities tend to plummet.

Don't rush to make a home-buying decision based on Forbes data alone, however. Like everything else in real estate, data is local and city-wide statistics are too broad to be helpful to an everyday buyer in Chandler.

For accurate, real-time, local crime data, be sure to ask a real estate profession.

Friday, December 23, 2011

Pay Your Mortgage Early, Boost Your 2011 Federal Income Tax Deductions

Increase your 2011 tax deductionsTime is running out to boost to your 2011 federal tax refund. All you have to do is make your January 2012 mortgage payment while it's still December.

It's a simple tax strategy that works because of how mortgage interest is paid, and of how the U.S. tax code is written.

Different from rent which is paid for the month ahead (i.e. "you're paying January's rent"), mortgage payments are made only after mortgage interest has accrued (i.e. "you're paying for money you've already borrowed from the bank").

This is called "paying interest in arrears" and U.S. tax code states that the mortgage interest is tax-deductible in its year paid, subject to limitations.

By making the January 2012 mortgage payment in December 2011, therefore, homeowners who itemize their on their tax returns can apply their January mortgage payment's interest portion to their 2011's tax returns.

The alternative is to pay the mortgage on schedule, and wait for April 15, 2013 to claim the credit.

If you choose to pre-pay your mortgage and typically send your payment via USPS, give your check ample time to be delivered to your lender, and processed. Mail your check no later than Saturday, December 24.

For Chandler homeowners that pay electronically, the process is simpler. Edit your online bill pay program to have your mortgage payment post no later than Thursday, December 29.

Make note, however. Not all mortgage interest is eligible for tax-deductibility, and not all homeowners throughout the state of Arizona who pay mortgage interest should itemize said interest on their tax returns.

Before prepaying on your mortgage, ask your tax professional for advice.

Thursday, December 22, 2011

Home Supplies Fall To 7.0 Months Nationwide; Buyer Demand Strong

Existing Home Supply 2010-2011

Home resales moved to a 10-month high in November, the latest in a series of strong showings from the housing sector.

According to the National Association of REALTORS®, November's Existing Home Sales rose to a seasonally-adjusted, annualized 4.42 million units nationwide --  a 4 percent climb from October 2011.

An "existing home" is a home that has been previously occupied and cannot be categorized as new construction.

Home buyers and sellers throughout Phoenix should take note of November's numbers because -- behind the headlines -- there's a series of statistics that foretell higher home prices ahead.

First, the total number of homes for sale nationwide dipped to 2.58 million, an 18% reduction from November 2010 and represents the fewest number of homes for sale since February 2007. 

At the current sales pace, the complete home resale inventory would be sold in 7.0 months.

And, second, the real estate trade group reports that 33% of all homes under contract "failed" for some reason last month.

Contract failures can occur because of mortgage denials in underwriting; home inspection issues; and homes appraising for less than their respective purchase prices.

In other words, despite a reduction in the number of homes for sale, and a rash of failed contracts, Existing Home Sales volume is still on the rise.

Broken-down by buyer-type, here's to whom home sellers were selling in November :

  • First-time buyers : 35% of home resales, up from 34% in October 2011
  • Repeat buyers : 46% of home resales, down from 48% in October 2011
  • Investor buyers : 19% of home resales, up from 18% in October 2011

Given high demand for home resales and shrinking home supplies, we should expect that home prices will rise through December 2011 and into early-2012, at least. Recent Housing Starts data supports this notion. 

Thankfully, mortgage rates remain low. Low mortgage rates help keep homes affordable.

Wednesday, December 21, 2011

Housing Starts Show Strength In Housing

Housing Starts 2007-2011

The new construction housing market continues to show strength across the country.

According to the U.S. Census Bureau, Single-Family Housing Starts rose to 447,000 units on a seasonally-adjusted, annualized basis in November -- a 2 percent increase from October.

A "Housing Start" is defined as breaking ground on new home construction.

November's figures mark the third straight month of Single-Family Housing Starts gains. The new construction metric is now 15 percent above its all-time low, set in February of this year.

None of this should be a surprise to new home buyers in Phoenix.

Housing data has been trending better since September with sales volumes rising and home inventories falling. Basic economics tells us that home prices should soon rise.

The good news is that low mortgage rates should keep homes affordable.

Since mid-November, the average, conventional 30-year fixed rate mortgage has hovered near 4.000% nationwide with an accompanying 0.7 discount points plus closing costs. 1 discount point equals one percent of your loan size. This is down from near 4.500% six months ago, and the drop has made a big impact on home affordability. 

  • June 2011 : $200,000 mortgage costs $1,013.37 per month
  • December 2011 : $200,000 mortgage costs $954.83 per month

This represents $700 in savings per year. It's no wonder home builders report the highest buyer foot traffic in 3 years

Meanwhile, the market shows little signs of slowing down. Building Permits are on the rise, too.

Permits for single-family homes rose to their highest levels of year in November and 89 percent of those homes will start construction within 60 days. This means that Single-Family Housing Starts should stay strong through the early part of 2012, and into the spring.

If you're planning to buy new construction in Arizona , therefore, talk to your real estate agent soon and consider moving up your time frame. With mortgage rates low and next year's buying season approaching, you may find that the best "deals" will come within the next few weeks only.

Tuesday, December 20, 2011

Home Builders Experiencing Heavy Foot Traffic And Higher Sales Volume

Housing Market Index 2010-2011In another good sign for the housing market, today's home builders believe that the housing market has turned a corner.

For the third straight month, the Housing Market Index -- a home builder confidence survey from the National Association of Homebuilders -- reported strong monthly gains.

December's Housing Market Index climbed 2 points to 21 in December after a downward revision to last month's results. The index is now up seven points since September 2011, and sits at a 19-month high.

When home builder confidence reads 50 or better, it reflects favorable conditions in the single-family new home market. Readings below 50 reflect unfavorable conditions.

The Housing Market Index has not crossed 50 since April 2006.

The HMI itself is actually a composite reading; the result of three related home builder surveys. The National Association of Homebuilders asks its members about their current single-family home sales volume; their projected single-family home sales volume for the next 6 months; and their current buyer "foot traffic".

The results are compiled into the single Housing Market Index tally.

In December, builder survey responses showed strength across all 3 questions :

  • Current Single-Family Sales : 22 (+2 from November)
  • Projected Single-Family Sales : 26 (+1 from November)
  • Buyer Foot Traffic : 18 (+3 from November)

These results support the recent New Home Sales and Housing Starts data, both of which show an increase in single-family sales, and a decrease in new home housing supply.

When demand rises and supplies fall, home prices climb.

It's also noteworthy that the Housing Market Index put buyer foot traffic at newly-built homes at its highest level since May 2008. With even more buyers expected to enter the market, new home prices are expected to rise across Phoenix in 2012 -- especially in the face of shrinking home supplies. 

For now, though, with home prices stable and mortgage rates low, buyers can grab "a deal". 60 days forward, though, may be too late.

The Spring Buying Season unofficially starts February 6, 2012. 

Monday, December 19, 2011

How To Keep Your Dishwasher Mold- and Mildew-Free

How to clean a dishwasher Your dishwasher is a breeding ground for mold and mildew. It's warm, it's dark, and there is a bevy of decaying, organic material in the form of both food particles and soap.

Therefore, you'll want to periodically scrub and disinfect your dishwasher so that it remains it clean and healthy, and so that your dishes stay that way, too.

Here's how to clean your dishwasher :

  1. Remove all racks from the dishwasher. Wash with dish-washing detergent and set aside to dry. 
  2. Mix 1 part vinegar with 4 parts very hot water into a spray bottle.
  3. Spray the mixture on the dishwasher seal and anywhere else you see discoloration, mold or mildew.
  4. Scrub the affected areas with a non-abrasive scrub brush.
  5. Replace racks in the dishwasher.
  6. Fill a small, dishwasher-safe bowl with white vinegar and place on the top rack.
  7. Without soap, run the dishwasher at the highest temperature setting available.

Then, after performing these steps, you find that your dishwasher still has an "odor", or if mold or mildew remnants remain, immediately pour 1 cup of baking soda on the floor of your dishwasher, and run the cycle a second time at the highest temperature setting available.

If your mold/mildew problem persists, you should check the dishwasher's drain line. If it's kinked, water may be unable to drain and will pool at the bottom of your dishwasher -- a mold-breeding situation.

You should also check the food trap at the base of the dishwasher for too-large-to-drain pieces of food.

A good dishwasher will last years with proper care and maintenance. Keep yours mold- and mildew-free. 

Friday, December 16, 2011

Mortgage Payments Fall 12% Since February 2011

Mortgage payments in 2011

As mortgage rates drop, so do housing payments. It's a good time to consider refinancing your home, or making an offer on a new one. Mortgage payment affordability has never been so high in history.

According to Freddie Mac, the average 30-year fixed rate mortgage rate is now 3.94 percent -- an all-time low -- with an accompanying 0.8 discount points. This means that in order to get access to the 3.94 percent rate, Phoenix  homeowners and home buyers should expect to pay a loan fee equal to 0.8% of the borrowed amount, plus "normal" closing costs.

Last week, the average 30-year fixed rate mortgage rate was 3.99 percent with an accompanying 0.7 discount points.

Mortgage rates in Arizona have been in decline for most of the year. Since peaking in early-February, the average home owner's principal + interest payment on a 30-year fixed rate mortgage had now dropped by 12.2 percent.

Here is how mortgage payments compare, then and now, not accounting for your individual tax-and-insurance escrow :

  • February 10, 2011 : Payment of $539.88 per $100,000 borrowed
  • December 15, 2011 : Payment of $473.96 per $100,000 borrowed

For existing homeowners, the dramatic drop in payments is reason to reach out to your loan officer. A refinance could save you tens of thousands of dollars over the life of your loan -- especially if you chose to refinance your mortgage into a 15-year program.

The 15-year mortgage, says Freddie Mac, is also at an all-time low, registering 3.21 percent with 0.8 discount points, on average.

For home buyers, today's low rates present an interesting opportunity.

Mortgage rates are the key factor in determining your monthly housing payment so, with average mortgage rates below 4 percent, it's no wonder home affordability is cresting. However, the housing market is showing signs of recovery. Home supplies are dwindling, buyer demand is rising, and the economy appears to be mending.

Home prices are expected to rise in 2012 and, as they do, they'll take housing payments with them. The best time to buy a home may be now; before the recovery completes.

Thursday, December 15, 2011

Bank Repossessions Drop To A 44-Month Low

Foreclosure concentration November 2011Foreclosure activity continues to concentrate over just a few states.

According to foreclosure-tracker RealtyTrac, November's foreclosure filings fell 3 percent as compared to October, and 14 percent from November 2010.

"Foreclosure filing" is a catch-all term for the various "action steps" throughout the foreclosure process. The grouping comprises default notices, scheduled home auctions, and bank repossessions.

As in most months, though, foreclosure activity remains concentrated by state. More than half of last month's bank repossessions can be traced to just 6 states.

  1. California : 14.8% of all bank repossessions
  2. Florida : 12.7% of all bank repossessions
  3. Texas : 7.0% of all bank repossessions
  4. Georgia : 6.9% of all bank repossessions
  5. Arizona : 6.7% of all bank repossessions
  6. Michigan : 6.3% of all bank repossessions

Meanwhile, with just 5 repossessions, South Dakota topped the list of states with the fewest bank repossessions in November. The Mount Rushmore State accounted for just 0.009% of REO nationwide in a month in which bank repossessions dropped to a 44-month low point across the United States.

The drop in REO is coming at a tough time for today's Phoenix home buyers. Distressed properties are in high demand -- mostly because they sell at steep discounts.

According to the National Association of REALTORS®, distressed homes accounted for 28 percent of all home sales in October. As fewer bank-owned homes become available, though, there will be fewer "deals" to be had.

Especially as the broader housing market continues to signal its recovery.

If you plan to buy a bank-owned foreclosed property, do your research first. As supplies drop, the price for foreclosed homes throughout Arizona relative to non-distressed homes may rise, rendering REO properties less of a relative "value".

Before you write a contract, therefore, talk with a licensed real estate agent. There's plenty of foreclosure data available online but, when it's time to buy, you should have an experienced agent on your side.

Tuesday, December 13, 2011

A Simple Explanation Of The Federal Reserve Statement (December 13, 2011 Edition)

Putting the FOMC statement in plain EnglishTuesday, the Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.

The vote was nearly unanimous for the second straight month. Just one FOMC member dissented in the vote, favoring additional policy stimulus beyond what the Federal Reserve currently provides.

In its press release, the Federal Reserve sais that the the U.S. economy is improving, noting that since its November 2011 meeting, the economy has been "expanding moderately". The Fed also added that domestic growth is occurring despite some "apparent slowing in global growth" -- a nod to ongoing uncertainty within the Eurozone.

The Federal Reserve expects a moderate pace of growth over the next few quarters, and believes that the jobs market will continue to improve, but slowly.

Other potential soft spots within the economy include :  

  1. A slowdown in business investment
  2. A "depressed" housing market
  3. Strains in global financial markets

The Federal Reserve added no new policies at its December meeting, and made no changes to existing ones. It re-iterated its plan to leave the Fed Funds Rate within its current range of 0.000-0.250 percent "at least until mid-2013" and re-affirmed "Operation Twist" -- the stimulus program through which the Fed sells Treasury securities with a maturity of 3 years or less, and uses the proceeds to buy mortgage bonds with maturity between 6 and 30 years.

Mortgage bonds are mostly unchanged since the Fed's announcement, giving mortgage rates in Chandler little reason to rise or fall.

Mortgage rates remain near all-time lows and, for homeowners willing to pay points + closing costs, 30-year fixed rate mortgages can be locked at less than 4 percent. If you're thinking of buying or refinancing a home, it's a good time to lock a mortgage rate.

The FOMC's next meeting will be its first scheduled meeting of the new year. The meeting is slated for January 24-25, 2012.

America's Best Places To Raise A Family, Listed By State

Great Places To Raise A FamilyBusinessWeek recently released its 2011 America's Best Place to Raise a Family rankings. College-town Blacksburg, Virginia took top honors, breaking a 2-year win streak for the Chicago, Illinois region.

In 2009, suburban Mount Prospect, Illinois placed first. Last year, it was Tinley Park, Illinois.

The BusinessWeek report employs data from real estate information firm Onboard Informatics to make its rankings, compiling data across categories such as education, crime, and jobs plus access to parks and affordable homes. All selections are limited by population; all selections are home to 50,000 residents or fewer. Median incomes are within 20 percent -- plus or minus -- of the state's median income levels.

BusinessWeek names one winner in each state. The winners in the 10 most populous states and their nearest "big city" are listed below

  1. California : East San Gabriel (Los Angeles)
  2. Texas : Wells Branch (Austin)
  3. New York : Hampton Manor (Albany)
  4. Florida : Niceville (Fort Walton Beach)
  5. Illinois : Morton Grove (Chicago)
  6. Pennsylvania : Cecil-Bishop (Pittsburgh)
  7. Ohio : St. Henry (Dayton)
  8. Michigan : Spring Arbor (Jackson)
  9. Georgia : Hoschton (Atlanta)
  10. North Carolina : Tryon (Spartanburg, SC)

The winners in all 50 states can be found on the BusinessWeek website.

Rankings like the BusinessWeek America's Best Place to Raise a Family can be useful for home buyers in Chandler , but like everything in real estate, statistics do not apply to every home equally. Even within the "best towns", there are areas in which school systems are better, crime figures are lower, and amenities are more plentiful.

Therefore, before you make the decision to buy a home, talk with a real estate agent who has local market knowledge. It's the most effective means to get data that matters to you.

Monday, July 11, 2011

JUNE 2011 SALES UP and REO Inventory LOW

JUNE was an unbelievable month in REAL ESTATE here in AZ... We have been consistently hearing and seeing articles on how the Bank Owned homes are not being released to the market. The JUNE 2011 Cromford REPORT reinstated this fact with this headline:

"Foreclosure activity declining and active REO inventory is at the lowest level for several years". WOW and still 400+ foreclsoures daily... WHERE IS THE INVENTORY... ??

What a true statement!! More and More on a daily basis there are BID WARS, like 2010! My partner, Gabriel Ostrovsky and I were calling on homes last week and a Surprise home (Bank Owned) was on the market for 4 days had 12 Offers, yes I said 12 that is NOT a typo! .....

Maricopa County also had the HIGHEST month of closings in JUNE 2011 as well. Our brokerage, Green Street Realty, alone closed 66 transactions and my partner and I closed 14, ending a spectacular month!

It is still a buyers market, between prices being so low and interest rates so low as well still less than 5%!

Between the Mortgage Debt Relief Act expiring in December 2012 and the low inventory, Sellers should be contacting their area short sale specialist, EZSHORTSALEOPTION.com for a FREE Short Sale Consultation to get their home on the Market before the Protection laws VANISH! This way the buyers can buy and the sellers can work on their credit and TEAM up with us to help them get into a NEW home sooner than the later!

DONT HESITATE TO CALL WITH ANY QUESTIONS!!!

Tuesday, March 1, 2011

Great Article from the Wall Street Journal

Great information as to why is a good time to buy!!!


If you have been sitting on the fence trying to decide whether to buy a new house or refinance a mortgage, you should act soon. New loans are starting to get costlier.

The mortgage market is facing pressures from new laws and regulations, still-declining home prices and the ongoing need for government-owned mortgage players to shore up their finances. The Mortgage Bankers Association predicts mortgage originations, which reached $3 trillion in 2005, will be less than $1 trillion this year, the lowest level since 1997.

"The price of mortgage money is going to go up, and the availability of mortgage money may also be impinged," says Keith Gumbinger, vice president at HSH Associates, which tracks mortgage data.

The silver lining is that the rate for a 30-year fixed loan is hovering around 5% for those with good credit. That is up about a percentage point from last year's lows but is still an attractive rate by historical standards, though expected to keep climbing as the economy improves.

Home prices in some areas are still falling, but they are bottoming out or firming up in others. It may not be the perfect time to buy a home—but better mortgage options today may be a worthy trade-off to the possibility of lower prices tomorrow.

Still not convinced? Consider the following:

• New costs.Fannie Mae and Freddie Mac, which provide liquidity to the mortgage market by buying mortgages and selling securities backed by them, are adding new fees to loans to people with the best credit and raising existing loan fees. Freddie's new fees start March 1, while Fannie's kick in April 1.

Neither Fannie nor Freddie have been assessing fees on most loans for borrowers with credit scores above 720, even if the down payment was small. But citing a need to address risk and price their services appropriately, they will assess a fee of 0.25% to 0.5% of the loan value on borrowers with credit scores of 720 or higher who put down less than 25% of the purchase amount. The current fee for those with credit scores of 700 to 719 who put down less than 20% of the purchase price will double to a full percentage point of the loan value from half a point.

Brokers expect the higher fees will translate into slightly higher mortgage rates.

In addition, the Federal Housing Administration, saying it needs to bolster its capital reserves, is raising its required annual mortgage-insurance premium for FHA loans by 0.25% of the loan value. As a result, FHA loans—which are aimed at first-time home buyers and those with moderate incomes—will include an upfront mortgage insurance payment of 1% of the loan amount and an annual premium of 1.1% to 1.15% when the increase goes into effect on April 18.

For regular loans, private mortgage insurance—which is required when you put down less than 20% of the home's value—is tougher to get than it once was. Generally, it is available only for buyers who make a down payment of at least 5% and have a credit score of 700 or higher.

• Dodd-Frank fallout. The Consumer Financial Protection Bureau, established by the Dodd-Frank financial overhaul, opens its doors for business in July and is expected to take a close look at how interest rates and closing costs are disclosed to borrowers. That could create new costs that lenders are likely to pass along to consumers. In addition, a Federal Reserve rule that takes effect April 18 will change how mortgage brokers are paid, a move intended to curb practices such as steering home buyers to higher-cost loans.

The new rules, which limit the kinds of compensation brokers can receive, have brokers in a tizzy. The brokers claim the changes will raise mortgage costs and put some of them out of business, shrinking the market. How it will play out isn't clear, but given both the changes and the Fannie and Freddie pricing, mortgage prices may vary more than usual, say those in the industry—making it wise for borrowers to shop for rates even more aggressively.

• More restrictions. Earlier this month, the Obama administration proposed a wide-ranging overhaul of the mortgage market, including phasing out Fannie Mae and Freddie Mac, requiring a down payment of at least 10% and reducing the share of FHA loans, which are almost 30% of the market now, up from a historical market share of 10% to 15%.

In addition, the administration recommended letting Fannie and Freddie loan limits for high-cost areas fall back to $625,500. The limits were temporarily increased to $729,750 in 2008 when the market for "jumbo" loans—those above the loan limits—all but disappeared, and that increase is now scheduled to expire Sept. 30. (The $417,000 loan limit for homes in most other markets would remain the same.)

What those proposals will mean depends on where you live. In Manhattan, where the average home price is still around $1 million, a drop in the loan limit means more buyers will need jumbo mortgages, says Melissa Cohn, CEO of Manhattan Mortgage Co. Those currently have rates that are about half a percentage point higher than conventional loans.

Richard Peek, president of the Florida Association of Mortgage Professionals, says much of his business right now is in FHA loans, which allow down payments of as little as 3.5%. Requiring a 10% down payment, he says, would put homes out of reach for many Florida customers.

—karen.blumenthal@wsj.com

Saturday, February 19, 2011

What Caliber of agent do you have working for you?

HI All-

Its been awhile since my last Blog... but what can I say it has been a crazy last quarter of 2010 and first month of 2011. I am proud to present that I was congratulated with the TOP PRODUCER award from my Brokerage Green Street Realty for 2010. This also carried into being TOP PRODUCER January 2011. I am so excited about Real Estate and sharing the opportunities with buyers and seller alike.

I wanted to share with everyone the excitement that I am participating in this week. I am getting my CIAS (Certified Investor Agent Specialist) designation. In 2009 I was able to complete the CDPE (Certified Distressed Property Expert) Designation. This designation has set myself and my TEAM apart from the rest. We have a 98% success rate when completing short sales. You may wonder what a CIAS it is simply the following:

A Certified Investor Agent Specialist™ (CIAS) finds, creates, and closes with residential real estate investors with the knowledge and tools earned through comprehensive education and experience. CIAS-designated agents can streamline the process of real estate investment to increase returns for investor clients.

CIAS-designated agents help real estate investors navigate:

Investment Strategies
Self-directed IRAs
1031 Exchange
Leverage Options
Key Calculations
Return-on-Investment
Capitalization Rate
Average Returns
Cash Flow
And much more!

Adding this designation is very EXCITING and I am looking forward to bringing a new element into our TEAM.

My partner, Gabriel Ostrovsky and I have specialized in the Distressed Market in Arizona since 2008. We have excelled in not only Bank Owned Properties and Short Sales.. we have also helped many buyers and investor find some AWESOME OPPORTUNITIES in this market!

Feel free to contact me for any of your Real Estate needs! Have a prosperous 2011!!!