Realtors reading about a CoreLogic story were quick to call shenanigans, making for an amusing read.
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Mortgage rates plummeted last week… er, sorry. I mean "mortgage rates dropped slightly last week." Either way, average mortgage rates in the country were down a bit — the first drop in six weeks.
30-year fixed went from 3.98 percent to 3.93 percent (with 0.8 point; I’m still trying to find out how typical 0.8 point is.)
15-year fixed went from 3.10 percent to 3.04 percent (with an average 0.7 point).
FannieMae reported that “American’s confidence in their ability to buy and sell their home climbed sharply in May, “according to their Monthly National Housing Survey. The large boost in pace of residential sales from April to May, according to the Virginia Home Sales Report, suggests that Virginians are equally confident. The latest Virginia unemployment rate is 5.2%, much lower than the US rate which was at 7.6% last month. In fact, the Virginia rate
For the first time since 2006, a survey of the nation’s homebuilders found them with a positive outlook about the market. It’s not scientific, but it’s still nice to see.
The Economist took a look at Standard & Poor’s housing data and concluded that there probably isn’t a housing bubble at the moment. And when you see the charts you can see why.
For example, if you start at the end of 1987 (giving it a value of "100"), here is what real house prices look like.
Once upon a time there were two shamans in a tribe. They both tried to predict how bad the upcoming winter would be. One threw rabbit bones and predicted a harsh winter. The other threw squirrel bones and predicted a mild winter.
The winter was mild, thus proving that throwing squirrel bones was a more accurate way of predicting the weather.
In an unrelated note, there is some speculation that we might be starting to inflate a new housing bubble, as prices are rising more quickly than is typical.
So, are we? Is there a bubble growing?
There are a handful of tax breaks for homeowners who improve the energy efficiency of their homes — essentially, the government reduces your taxes if you make your house greener.
Now a bill introduced in the Senate by senators Michael Bennet (D-Colo.) and Johnny Isakson (R-Ga.) would give a different kind of incentive — it would require lenders to take into account the energy-efficient features of a home when calculating a borrower’s income/expense ratio.
The National Flood Insurance Program was in the black until Hurricane Katrina; since then it’s been in debt to the tune of about $20 billion. (Which, of course, illustrates why it’s a government program and not offered by private insurers.)
So in 2012 Congress reformed the program to try to keep it from bleeding money.
The Obama administration has extended its Making Home Affordable program, which includes two sub-programs designed to help homeowners refinance so they can stay in their homes.
Making Home Affordable includes the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP). It was set to expire at the end of the year, but homeowners now have until December 31, 2015 to apply for modifications.