The number of properties on the market dropped to 2.38 million, the fewest since March 2005. At the current sales pace, it would take 6.2 months to sell those houses, down from 7.2 months at the end of November.
The new Fannie Mae program known as HARP 2 in the first two weeks are seeing applications surge. Aimed at severely underwater home owners, applications to refinance jumped 9.4 percent last week, according to the Mortgage Bankers Association. Wells Fargo reports applications doubled since the first of the year, while Bank of America telephone recording says call back in six months.
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Foreclosures comprised 20% of all U.S. residential sales compared to 30% in 2010. This compares to 5% of all sales prior to 2007. The main reason, less foreclosed properties on the market. This will change by the end of 2012
FHA today at 4% interest, 3.5% down and credit score 640 or higher. Why rent that $100,000 house for $950 per month, when mortgage payment, tax and insurance is $550 per month. Plus you write off the interest and save on income taxes. Don’t be upset the rich guys try to lower their income tax, this one is for you.
The number of properties on the market has dropped to 2.38 million, the fewest since March 2005. At the current sales pace, it would take 6.2 months to sell those houses, down from 7.2 months at the end of November. A pickup in sales and a drop in foreclosures has helped. With over 5 million properties either in foreclosure or with delinquent mortgages, many more properties will come on the market later this year. Right now is a window of opportunity to sell while fewer homes are for sale and coming into the spring buying season. Not to mention mortgage rates are still low.
After releasing their minutes of the Federal Reserve Open Market Committee meeting from November, more quantitative easing is projected by buying up to one trillion dollars of mortgages. This would keep mortgage companies very liquid and able to make more mortgage loans. In the past, from lack of confidence, these mortgage companies/banks just used the money to buy more treasury bills and tightened their mortgage standards. Hopefully this time around, with the economy starting to stabilize they in fact start making mortgage loans again. This is just what the housing market needs.
Since 2004, when homeownership rates peaked, the population of 20-34-year-olds grew by 2.8 million, according to researchers at CoStar Group, a commercial real estate information company. But the number of households shrunk by 300,000. In other words, younger Americans were doubling up with roommates or moving back in with their parents.
The average age of passenger cars on the road is now at 11.1 years old, the highest on record according to to R.L. Polk & Co., an automotive market research firm. There is pent up demand for the next two years to buy new cars. But wait, if I buy a new car and finance it, that payment reduces how much I can qualify for a new mortgage. You should buy the house first, get a mortgage, then go out and buy the new car.
At the end of the year, the national average of mortgage debt was $173,876 per person, very close to past year levels. Californians had the most mortgage debt: an average of $313,749. West Virginia residents had the lowest level: $104,279. With refinancing at lower rates, most are paying much less per month.