My Real Estate Blog

The average interest on a 30-year mortgage fell to a 38-year low of 4.85 percent during the week ending March 27 from 4.98 percent the prior week, Freddie Mac reported.

The decrease came on the heels of the Federal Reserve's announcement that it plans to purchase another $750 billion in mortgage-backed securities and up to $300 million in Treasuries. President Obama says refinancing is now possible for 40 percent of mortgages and encourages home owners to reap the benefits of the record-low rates.

Source: Boston Globe (03/27/09)

I am asked many times when I think is a good time refinance or will a Loan Modification work for me.  Here in Sahuarita and Green Valley AZ refinancing may not be a possibility.  But, a loan modification might be your answer.

If you have a home in Green Valley or Sahuarita contact me for a private interview.

Thank you,

Ralph Schnelle
ReMax-Valley Properties
520-940-0614- cell
888-401-4788- fax
www.myRealEstateofArizona.com

RESIDENTIAL REAL ESTATE MARKET REPORT

March 2009

Pending Sales, Closings, and Foreclosures Increase: Listings Decrease

There were 1172 Pima County foreclosure filings in February, up from 955 in January according to RealtyTrac, 1 in every 378 housing units for Tucson, 1 in 101 for Marana, 1 in 95 for Sahuarita and 1 in 58 for Vail. RealtyTrac states the average foreclosure sales price for Pima County at $157,247.

TAR/MLS February Statistics were published March 9, 2009 with the continuing bright spot, an increase in pending sales – up 8.4% from January 09.

Home Units closed also increased, up 12% in February from January. February contained 659 closed sales, compared with 664 in February of ‘08 – less than 1% decline from last year.

Active Listings declined 17.84% to 7532 this February from last year’s 9168, trending down from January’s number of 7,694. Average days on market remained at 84, holding steady after a four month down cycle.

The Median Sales Price increased 9.04% to $178,000 – up from $163,250 in January. Average Sales Price for February 2009 increased by 6.76% from January to $222,207– off from $254,381 last year by 12.65%.

Are these signs of a possible turn in the market?  We are watching the market in Green Valley and Sahuarita AZ very closely.
Ralph

Loan Apps Rise as Rates Dip Below 5 Percent

Average mortgage rates dipped below 5 percent last week, driving mortgage application volume up 11.3 percent to 723.4 from 649.7 the previous week on an adjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, the index increased 11.6 percent compared with the previous week and was up 5.7 percent compared with the same week a year ago.

The increase was reflected in the government purchase index (mostly FHA), which rose 10.4 percent. The overall purchase index was up 7.1 percent. The refinance share increased to 67.9 percent, up slightly from the previous week when it was at 66.9 percent.

Mortgage rates were down to the second-lowest rate in the history of the survey, with the record low being 4.89 percent for the week ending Jan. 9, 2009.

• 30-year fixed-rate mortgages decreased to 4.96 percent from 5.14 percent;
• 15-year fixed-rate mortgages decreased to 4.54 percent from 4.73 percent;
• 1-year ARMs increased to 6.21 percent

"Fellow REALTOR®,

You may have seen news reports about President Obama’s Budget Proposal that was released today at 11:30 a.m., Eastern Time. A small section of the sweeping budget plan has the potential to become a major impediment to a recovery in real estate markets across the nation. NAR is 100 percent opposed to the provision that modifies the Mortgage Interest Deduction and is prepared to use its formidable array of resources against its enactment.

As currently drafted, the plan changes the Mortgage Interest Deduction by reducing the amount of mortgage deductibility on families earning over $250,000. This proposed change in the Mortgage Interest Deduction will result in further erosion of home prices and home values. If this proposal is enacted it will set off a new round of price depreciation, will cause greater distress on the balance sheets of banks as the collateral value of mortgage backed securities declines. A second credit crisis could emerge before the first one is resolved.

As you read this NAR is launching a multiphase plan of action to eliminate this provision from the budget plan. In the next 24 hours, NAR will be expressing our concerns directly to President Obama, to all members of the United States House of Representatives and the Senate, placing advertisements in the publications read by Washington, D.C., decision makers. Additionally, NAR will be forming a coalition with other groups affected by this proposal.

This communication is the first salvo of our response, we will continue to update you as the situation and events warrant."

 30-Year Rates Inch Up This Week
Freddie Mac reports an increase in the 30-year fixed mortgage rate to 5.07 percent for the week ended Feb. 26.

Rates rose slightly, from 5.04 percent the prior week.

"Mortgage rates were little changed this week amid mixed data reports of a slowing economy," said Frank Nothaft, Freddie Mac vice president and chief economist.

He said that lower house prices and affordable mortgage rates have yet to spur housing demand. For instance, house prices declined by 8.7 percent for the 12 months ending in December 2008 and were down 10.9 percent from their highs set ion April of 2007, according to the Federal Housing Finance Agency's purchase-only monthly home price index.

Meanwile, existing home sales fell 4.7 percent in January to 4.05 million units, the slowest pace since July 1997, he said.

The five-year adjustable-mortgage rate rose to 5.06 from 5.04 percent over the same period, while the one-year ARM bumped up to 4.81 percent from 4.80 percent.

However, the 15-year fixed mortgage rate held steady at 4.68 percent.

Source: Freddie Mac