For the first time in three weeks, fixed mortgages rate moved up from their all-time lows, Freddie Mac reports in its weekly mortgage market survey.

One of the factors leading to higher fixed mortgage rates this week was signs of a gradually improving housing market, Freddie Mac Chief Economist Frank Nothaft says. For example, the Mortgage Bankers Association reported this week that seriously delinquent loans — those 90 days or more past due — and the inventory of foreclosures dropped 5.3 percent by the end of 2011, marking the lowest quarterly share since the beginning of 2009. Also, the National Association of REALTORS® reported this week that existing-home sales in January were at their strongest pace since May 2010. 

Here’s a closer look at how rates fared for the week ending Feb. 23:

• 30-year fixed-rate mortgages: averaged 3.95 percent, with an average 0.8 point, up slightly from last week’s all-time low of 3.87 percent. A year ago, 30-year rates averaged 4.95 percent. 
• 15-year fixed-rate mortgages: averaged 3.19 percent, with an average 0.8 point, inching up from last week’s 3.16 percent average. Last year, 15-year rates averaged 4.22 percent at this time. 
• 5-year adjustable-rate mortgages: averaged 2.80 percent this week, with an average 0.7 point, dropping from last week’s 2.82 percent average. Last year, 5-year ARMs averaged 3.80 percent at this time. 
• 1-year ARMs: averaged 2.73 percent, with an average 0.6 point, also dropping from last week’s 2.84 percent average. A year ago at this time, 1-year ARMs averaged 3.40 percent. 

Source: Freddie Mac

Chase announced it will donate at least 100 homes it owns to wounded military veterans as part of a program operated by a national nonprofit group known as Operation Homefront. 

Eligible military families must be on active duty, not currently own a home, and be financially capable of taking on home ownership. Spouses of military members killed in action will also be considered for the program. 

"These individuals have made tremendous sacrifices for our nation, and as they move back into civilian life in a tough economic environment, we hope that a mortgage-free home will make that transition a little easier," Frank Bisignano, JPMorgan Chase Chief Administrative Officer and CEO of Mortgage Banking, said in a statement. 

Military families can apply for the Homes on the Homefront program atwww.OperationHomefront.net/HomesOnTheHomefront.

The announcement comes months after Chase has taken steps to develop a foreclosure prevention and assistance program for military vets. Last year, Chase admitted to 14 wrongful evictions of military families. Other wrongful evictions of military families also surfaced from other banks last year, and the Justice Department is currently overseeing reviews by major banks of military members’ mortgages for any violations of the Servicemembers Civil Relief Act.   

Source: MarketWatch and REALTOR® Magazine Daily News

Fixed-mortgage rates continue to hover at record lows, with the 30-year fixed-rate mortgage staying at the record low of 3.87 percent since the first week of February, Freddie Mac reports in its weekly mortgage market survey. The 30-year fixed-rate mortgage, the most popular choice among home buyers, has been below 4 percent for the past 11 weeks. 

Here’s a closer look at mortgages rates for the week ending Feb. 16: 

30-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.8 point, matching last week’s average. A year ago at this time, 30-year rates averaged 5 percent. 

15-year fixed-rate mortgages: averaged 3.16 percent, with an average 0.8 point, also matching last week’s average. Last year at this time, 15-year rates averaged 4.27 percent. 

5-year adjustable-rate mortgages: averaged 2.82 percent this week, with an average 0.8 point, dropping slightly from last week’s 2.83 percent average. Last year, 5-year ARMs averaged 3.87 percent. 

1-year ARMs: averaged 2.84 percent, with an average 0.6 point, rising from last week’s 2.78 percent average. A year ago at this time, 1-year ARMs averaged 3.39 percent. 

Source: Freddie Mac

Tax time is nearing and once more rumors are circulating on the Internet and by e-mail that the health care reform law enacted two years ago includes a 3.8 percent transfer tax on real estate starting in 2013. That rumor is not true; NAR has material available to you to explain how that 3.8 percent tax works. It’s a tax on a very narrow band of investment income for high-wealth households (those who earn $250,000 in a joint return or $200,000 as an individual) that could come into play on the sale of a house if the sales gain is more than $500,000 for a married couple or $250,000 for an individual.

Even in the unlikely event the sales gain is more than that amount, the tax would only apply based on other considerations having to do with the household’s income and tax situation. The bottom line is that the tax, which was imposed to help shore up Medicare, will hit only some portion of investment income. Download a free brochure on how the tax works. Video and explanatory article. 

Source: National Association of REALTORS®

Four major banks have agreed to reimburse any military members found to have been wrongfully foreclosed upon in the last five years.

The Justice Department will oversee the reviews by the banks. The financial institutions involved are JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial. 

The banks will be conducting reviews of accounts dating back to Jan. 1, 2006, to find any military members who they may have mistakenly foreclosed upon — which violates the Servicemembers Civil Relief Act. 

"From our first conversations, these servicers made it clear that they shared our goal of ensuring that any servicemember harmed as a result of a violation of the SCRA will receive full compensation," U.S. Assistant Attorney General Thomas Perez said in a speech Friday. 

Two banks already have agreed to reimburse military members at least $116,785 each. They said they’ll also pay any lost equity in a home.

Some banks have already been compensating service members for wrongful foreclosures after allegations first surfaced nearly a year ago that violations of SCRA were made against military members by several banks. Chase has admitted to 14 wrongful evictions of military families and has agreed to give back the homes or offer compensation if the home was already resold. It has also developed a foreclosure prevention and assistance program for military vets. Bank of America has agreed to pay more than $20 million to 157 military members to correct wrongful evictions made from 2006 to 2009. 

Source: “Military Members May Get Six-Figure Payday for Wrongful Foreclosures,” HousingWire (Feb. 13, 2012)

The 30-year fixed-rate mortgage averaged 3.87 percent this week, matching last week’s all-time record low. As for other rates, they ticked up slightly this week, but still hovered around record lows compared to historical standards, Freddie Mac reports in its weekly mortgage market survey. 

“A strong January employment report added upward pressure to most mortgage rates this week,” Frank Nothaft, Freddie Mac’s chief economist, said. The unemployment rate dropped to 8.3 percent as the economy gained 243,000 jobs last month, the largest gain since April 2011. 

Here’s a closer look at rates for the week ending Feb. 9: 

• 30-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.8 points. A year ago at this time, 30-year rates averaged 5.05 percent. 
• 15-year fixed-rate mortgages: averaged 3.16 percent, with an average 0.7 point, rising slightly from last week’s record low of 3.14 percent. But 15-year rates were still far below what they averaged a year ago at this time — 4.29 percent.
• 5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.7 point, rising from last week’s 2.80 percent average. Last year at this time, 5-year ARMs averaged 3.92 percent. 
• 1-year ARMs: averaged 2.78 percent, with an average 0.6 point, rising slightly from last week’s 2.76 percent average. A year ago, 1-year ARMs averaged 3.35 percent. 

Source: Freddie Mac

A settlement announced this week among state and federal officials and the nation’s five largest banks is the largest joint state-federal settlement in history against an industry. The settlement, which amounts to somewhere between $25 billion and $26 billion, is aimed at fixing some of the mortgage abuses over the last few years that caused people to lose their home.

So what does the settlement mean for home owners? 

Home owners underwater on their house or struggling to make payments may have something to gain from the deal. Home owners who are eligible for payments or principal write-downs on their mortgage from the settlement will be notified by mail within the next nine months. 

Those who may be eligible for aid under the settlement include home owners who are currently struggling to make their payments and need a loan modification; borrowers who are current on their payments but owe more on their house than it’s currently worth; or borrowers who may have already lost their home to foreclosure. 

In the settlement, banks have agreed to write off a sum of the mortgage principal in select cases where home owners are struggling to make payments. Home owners will then be able to refinance and lower their monthly payments. Underwater borrowers also may receive aid, such as being able to refinance so they also can lower their monthly payments.

Borrowers who have already lost their home to foreclosure may be eligible for payments. About $2,000 per person will be doled out to 750,000 borrowers found eligible. 

Payments will be paid over a three-year period.

The banks participating in the settlement are Bank of America, JPMorgan Chase, Wells Fargo, Citi, and Ally/GMAC. Fannie Mae and Freddie Mac-backed loans are not eligible for the benefits. 

You can learn more about the settlement at the just-launched “National Mortgage Settlement” Web site. 

Source: “What the Mortgage Settlement Means to You,” MSNBC.com (Feb. 9, 2012)

Considered the heart of a home, the kitchen can be instrumental in selling a property.  Many buyers prefer dwellings with modern kitchens, especially since it's a room they'll use every day and a place where they will entertain guests. 

Attend open houses in the neighborhood to see how kitchens compare. If all the other homes have new appliances, your sellers will want to do the same or accept a lower price.

But a kitchen retrofit does not have to be extensive. A recent Realty Times article offers tips on attracting buyers with lower-cost kitchen upgrades.

• Repaint in a neutral color
• Eliminating clutter
• Clean, clean, clean
• Change light fixtures and hardware
• Opt for less expensive granite

Source: "Kitchens Sell a House," Realty Times (01/24/12)

(c) Copyright 2012 Information, Inc.

Fixed mortgage rates dropped even more this week, continuing the trend in reaching new record lows this year, Freddie Mac reports in its weekly mortgage market survey. The 30-year fixed-rate mortgage averaged 3.94 percent this week while 15-year rates sank to 3.21 percent — both all-time lows from their previous record lows set on Oct. 6. The 5-year adjustable-rate mortgage also set a new record this week. 

The Federal Reserve at a meeting this week reaffirmed its commitment from this summer that it would keep interest rates low for the next two years.

Here’s a closer look at rates for the week ending Dec. 15.

• 30-year fixed-rate mortgages: averaged 3.94 percent — a new record low — with an average 0.8 point, dropping from last week’s 3.99 percent average. A year ago, 30-year rates averaged 4.83 percent.
• 15-year fixed-rate mortgages: averaged 3.21 percent — also a new record low — with an average 0.8 points, a drop from last week’s 3.27 percent average. Last year at this time, 15-year rates averaged 4.17 percent. 
• 5-year adjustable-rate mortgages: averaged 2.86 percent this week, with an average 0.6 point, dropping from last week’s 2.93 percent average. Last year at this time, 5-year ARMs averaged 3.77 percent. 
• 1-year ARMs: averaged 2.81 percent with an average 0.6 point, inching up slightly from last week’s 2.80 percent average. Last year at this time, 1-year ARMs averaged 3.35 percent. 

Source: Freddie Mac

Mortgage rates continued to be near record lows this week, keeping housing at affordable levels for most households. 

"Thirty-year fixed-rate loans have declined 0.62 percentage points from a year ago, and median sales prices on existing homes are off 4.7 percent in the year ending with October,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. “These low rates and home prices have pushed housing affordability to record highs this year.”

Monthly principal and mortgage interest payments accounted for 12.6 percent of a median family incomes in October, Nothaft notes. For the sixth time this year, the National Housing Affordability Index reached another all-time record high, according to the National Association of REALTORS®. 

Here’s a closer look at mortgage rates for the week ending Dec. 8.

• 30-year fixed-rate mortgages: averaged 3.99 percent, with an average 0.7 point, down from last week’s 4 percent average. A year ago, 30-year rates averaged 4.61 percent. 
• 15-year fixed-rate mortgages: averaged 3.27 percent, with an average 0.8 point, just slightly above the all-time low of 3.26 percent it reached on Oct. 6. Last year at this time, 15-year rates averaged 3.96 percent. 
• 5-year adjustable-rate mortgages: averaged 2.93 percent this week, with an average 0.5 point, ticking up slightly from last week’s 2.90 percent average. Last year at this time, the 5-year ARM averaged 3.60 percent.
• 1-year ARMs: averaged 2.80 percent this week, with an average 0.6 point, edging up slightly from 2.78 percent last week. A year ago, 1-year ARMs averaged 3.27 percent.  

Source: Freddie Mac

Sixty percent of real estate professionals advise their sellers to list a home during the holidays because it’s a good time to sell, according to a new survey conducted by Realtor.com. 

Why are the holidays such a good time to sell? Seventy-nine percent of the agents surveyed said that more serious buyers come out during the holidays, and 61 percent say less competition from other properties make it a great time to sell. Plus, 17 percent of agents say the cold weather is actually a benefit, making homes feel more cozy. 

But online listing photos become even more crucial during the holiday season, according to the survey. Slightly more than half of agents say that the photos are more important because sellers tend to offer less open houses around the holidays, and so the online photos help buyers decide the properties to see and which ones to possibly bypass. 

The biggest hurdles sellers face during the holidays, however, are keeping a home ready to show (clean and staged) as well as winter weather conditions and buyers’ vacation schedules, the Realtor.com survey found. 

Source: “Survey Data Reveals Majority of Real Estate Professionals Recommend Clients List Their Homes During the Holidays,” 

Averages on fixed-mortgage rates continued to hover near historic lows for the week, while adjustable-rate mortgages inched down slightly to reach new record lows, Freddie Mac reports in its weekly mortgage market survey. 

"Mortgage rates were little changed this past week, with the average 30-year fixed-rate mortgage at or below 4 percent for the fifth consecutive week,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. “The extraordinarily low mortgage rates of the past month may provide a needed spur to housing activity.”

This week, the National Association of REALTORS® reported a 10.4 percent jump in pending home sales in October, the strongest pace since November 2010.

“More optimistic consumers, lower house prices, and bargain mortgage rates may have contributed to the 10.4 percent jump in pending home sales ... and may bode well for future home sales,” Nothaft says. 

Here’s a closer look at rates for the week ending Dec. 1:

• 30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, ticking slightly up from last week’s 3.98 percent average. A year ago at this time, 30-year rates averaged 4.46 percent.
• 15-year fixed-rate mortgages: averaged 3.30 percent, with an average 0.8 point, holding at last week’s average. Last year at this time, 15-year rates averaged 3.81 percent. 
• 5-year adjustable-rate mortgages: averaged 2.90 percent, with an average 0.6 point, dropping slightly from last week’s 2.91 percent average. Last year at this time, the 5-year ARM averaged 3.49 percent. 
• 1-year ARMs: averaged 2.78 percent this week, with an average 0.6 point, dropping from last week’s 2.79 percent average. A year ago at this time, the 1-year ARM averaged 3.25 percent. 

Source: Freddie Mac

Builders mostly have stayed on the sidelines the last few years in many metro areas while construction permits and housing starts have dropped to only a fraction of what they once were during the housing boom days and even prior to that. But in many areas across the country, housing starts and permits at least leveling off. What’s more, in some places they're rising. 

The cities that are seeing the most construction activity in single-family homes and multifamily units are ones that experienced only a mild recession so they have “less ground to make up during the recovery,” as well as areas with population growth, an article at U.S. News & World Reports notes. For example, Houston, Dallas, San Antonio, Texas, and Omaha, Neb., are nearly back to normal construction-permit activity. 

"What you're going to start to see is construction activity pick up in parts of the country where, although we have an excess supply of homes nationally, we don't in that location," Stan Humphries, Zillow’s chief economist, told U.S. News & World Reports. "The fact that we have vacant inventory is a national phenomenon, (but) we don't have vacant inventory in certain markets, which means new construction is going to pick up in some of these markets."

The top 10 metro areas by construction activity in the third quarter of 2011 are: 

1. Houston

2. Dallas

3. Raleigh, N.C. 

4. Omaha, Neb.

5. Austin, Texas

6. Salt Lake City

7. Charleston, S.C.

8. Charlotte, N.C.

9. San Antonio, Texas

10. Tacoma, Wash.

Source: “Where Builders Are Breaking Ground,” U.S. News & World Report (November 2011)