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Homeowner headlines

"Unsustainable" price rises won’t be sustained

Home prices can’t keep rising this quickly forever. That’s what Realtor magazine is reporting that CNBC is reporting that NAR has said. (I know, right?)

Here’s the deal: In May, NAR reported that home prices were up 15.4 percent from the year before. And that marked six months of those kind of double-digit price jumps. Said NAR’s chief economist Lawrence Yun, "[I]t cannot continue."

Consumer confidence rising

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

Is there a new housing bubble forming?

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?

Buy a greener home, qualify for a better mortgage?

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.

Government will subsidize flood insurance for another year

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.

Administration extends HAMP and HARP programs two years

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.

Interest rates: soaring, skyrocketing, or just going up?

I find this headline from DSNews amusing: "Freddie Mac: Fixed Rates Soar to Highest Level in a Year."

Yep, interest rates have risen almost a half-percent since the beginning of May. Now they are 3.81 percent (assuming 0.8 points). What’s funny is talking about interest rates soaring to 3.81 percent. I remember being thrilled when I got 7.5 percent on my house in Roanoke, way back when!

April home sales report is here

According to April home sales data, its a great time for homes to be put on the market.  The Virginia numbers match the positive buzz humming nationally.  Thanks to housing contributing to economic growth and the job market looking more hopeful, the economy seems to be picking up.  So, let’s look at the signs for Virginia:


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