Monday, January 28, 2008

Morgage Rates at 4 year low

WASHINGTON - Rates on 30-year mortgages dropped for a fourth straight week to the lowest level in nearly four years, raising hopes that low rates will help spur a rebound in the hard-hit housing industry.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 5.48 percent this week, down from 5.69 percent last week.

It was the fourth consecutive decline and the third straight week that rates have been below the 6 percent level. The new rate marked the lowest point for 30-year mortgages since they averaged 5.40 percent the week of March 25, 2004.

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Economists attributed the decline to further weak news on the economy combined with the biggest reduction of a key interest rate by the Federal Reserve in more than 20 years, a move that has raised hopes the Fed will be making more rate cuts as it steps up its efforts to combat a threatened economic recession.

“When the Federal Reserve cut the target for the federal funds rate by three-quarters of a percentage point, the action was extraordinary in both the magnitude and the timing of the rate cut,” said Frank Nothaft, chief economist at Freddie Mac.

Other types of mortgages also showed declines this week.

Rates on 15-year mortgages, a popular choice for refinancing, dropped to 4.95 percent this week, down from 5.21 percent last week.

Rates on five-year adjustable-rate mortgages declined to 5.13 percent, compared to 5.40 percent last week while rates on one-year ARMs fell to 4.99 percent, down from 5.26 percent last week.

The mortgage rates do not include add-on fees known as points. Thirty-year mortgages, 15-year mortgages and five-year adjustable-rate mortgages all carried a nationwide average fee of 0.4 point. One-year ARMS had an average fee of 0.6 point.

A year ago, 30-year mortgages stood at 6.25 percent while rates on 15-year mortgages were at 5.98 percent. Five-year adjustable-rate mortgages averaged 6.00 percent and one-year ARMs were at 5.49 percent this time a year ago.

Wednesday, January 16, 2008

Williamson County Association of Realtors® Announces December 2007 Home Sales
January 7, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of December 2007. There were 305 residential and condominium closings reported for the month of December, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.

Compared to December of 2006, the single family residential closings decreased 30 percent and the median price decreased by 2 percent. Compared to 2005, the median home prices have increased by 20 percent. Condominiums closings have increased by 2 percent and the median price increased by 5 percent. Compared to 2005, the median price for condominiums has increased 37 percent. The average days on the market (DOM) for residential homes have increased by 21 days and condominiums have increased by 2 days. Days on the market have been consistent since the onset of 2007, with the days ranging from 58 - 72 days. Median prices have remained consistent since January 2007, ranging from $365,000 to $391,200. The median is a typical market price where half of the homes sold for more and half sold for less.


December 2007

Closings Median Price Average Price DOM
Residential 247 $ 385,757 $ 471,523 74
Condominium 58 $ 198,732 $ 217,309 51

December 2006

Closings Median Price Average Price DOM
Residential 356 $ 394,900 $ 456,445 53
Condominium 57 $ 190,000 $ 213,643 49

December 2005

Closings Median Price Average Price DOM
Residential 450 $ 320,704 $ 414,290 50
Condominium 46 $ 144,950 $ 180,452 31


"As expected the real estate market in Williamson County remained consistent with the other months of the fourth quarter producing approximately 250 residential closings each month. Real estate continues to be a strong investment in our area despite the seasonal slowdown that is consistent with the fourth quarter of every year. Nationally 2007 is the fifth best year for real estate since the National Association of REALTORS® began keeping records; more than 100 years ago. We expect 2008 to remain consistent with 2007 with an increased volume of transactions towards the middle of the year." said Kathie Moore, 2008 President of the Williamson County Association of REALTORS®.


Nick Woodard
Keller Williams Realty
615.566.9839
nick@nickwoodard.com
www.nickwoodard.com

Thanks and God Bless

Monday, January 7, 2008

December Home Sales Reports

Williamson County Association of Realtors® Announces December 2007 Home Sales
January 7, 2008 (Franklin, TN)-The Williamson County Association of REALTORS® today announces the sale of homes statistics for Williamson County, Tn. for the month of December 2007. There were 305 residential and condominium closings reported for the month of December, according to figures provided by RealTracs Solutions, the multiple listing service used by REALTORS® in the Middle-Tennessee area.

Compared to December of 2006, the single family residential closings decreased 30 percent and the median price decreased by 2 percent. Compared to 2005, the median home prices have increased by 20 percent. Condominiums closings have increased by 2 percent and the median price increased by 5 percent. Compared to 2005, the median price for condominiums has increased 37 percent. The average days on the market (DOM) for residential homes have increased by 21 days and condominiums have increased by 2 days. Days on the market have been consistent since the onset of 2007, with the days ranging from 58 - 72 days. Median prices have remained consistent since January 2007, ranging from $365,000 to $391,200. The median is a typical market price where half of the homes sold for more and half sold for less.


"As expected the real estate market in Williamson County remained consistent with the other months of the fourth quarter producing approximately 250 residential closings each month. Real estate continues to be a strong investment in our area despite the seasonal slowdown that is consistent with the fourth quarter of every year. Nationally 2007 is the fifth best year for real estate since the National Association of REALTORS® began keeping records; more than 100 years ago. We expect 2008 to remain consistent with 2007 with an increased volume of transactions towards the middle of the year." said Kathie Moore, 2008 President of the Williamson County Association of REALTORS®.


Nick Woodard
Keller Williams Realty Franklin, TN
615.566.9839
www.nickwoodard.com

Sunday, January 6, 2008

Standardizing Mortgage Tactics


WASHINGTON - Seven states on Wednesday launched a standardized and mandatory process to more thoroughly license and track tens of thousands of mortgage brokers.

The effort could be expanded upon by Congressional Democrats, who are expected in 2008 to continue pushing for tighter national standards. Mortgage brokers have come under scrutiny over the past year as home loan defaults grew and housing market troubles worsened. Experts say loose licensing standards made it easy for shady operators — even those with criminal records — to work in the business.

While mortgage regulations vary dramatically from one state to another, the new system creates a uniform application for mortgage brokers and a database that banking regulators, and eventually consumers, can use to track down brokers who try to work in one state after being banned from another. Consumers should have access by next year.

Idaho, Iowa, Kentucky, Massachusetts, Nebraska, New York and Rhode Island are the initial states participating. In total, 42 state agencies — including those in Washington, D.C., and Puerto Rico — have committed to joining by the end of 2009,

The system is mandatory for brokers doing business in those states, and brokers can be penalized for operating without a license.

Lending-reform legislation does face tough odds this year, but mortgage industry consultant Howard Glaser said the consensus emerging from Democrats and Republicans is clear: More oversight of mortgage brokers is necessary.

“To have true uniformity, you would need to have a federal rule,” Glaser said. “It shouldn’t make a difference where you live.”

The state system applies to mortgage brokers and loan officers at state-regulated banks, but not employees at nationally supervised banks. In the works since fall 2004, it was developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

A bill passed by the House in November would require all states to participate in the licensing system and would mandate criminal background checks for everyone involved in selling home loans. The bill would also mandate minimum education standards for brokers and completion of a written test.

Of the 53 state agencies that regulate mortgage lending, 41 require criminal background checks, 32 require continuing education and 17 have require some sort of testing requirement, according to the state banking supervisors group.

John Ryan, executive vice president of the banking supervisors group, said his group can’t force states to strengthen their laws, but many are already doing so. “We’ve focused on where we could get consensus,” he said.

The National Association of Mortgage Brokers fought the banking supervisors’ effort, arguing that bank loan officers should be subject to the same standards.

Mortgage brokers’ share of new mortgages rose from 20 percent in 1987 to more than 60 percent for much of the past decade, according to Wholesale Access, a Columbia, Md. consulting firm. But their market share is likely to slip this year, as the industry returns to more traditional loans backed by government-sponsored mortgage giants Fannie Mae and Freddie Mac. Those loans have typically been the business of mortgage banks, not brokers.