November 2013

Found 13 blog entries for November 2013.

What started out as a quiet first half of the week has suddenly turned nightmarish for interest rates, stemming from some comments from St Louis Fed President Bullard.

What's Happening?

The market has been bearish for quite some time but the inconsistent pattern of the various economic reports has kept most investors in the market.  With Fed Chairman Bernanke on his way out, no clear indication that the economy is improving significantly and nominee for the Chairmanship, Yellen stating that she doesn't support starting the tapering of mortgage purchases anytime soon, there has been little immediate pressure on the market to increase rates. Today, St Louis Fed President Bullard decided to make some headlines for himself and spoke of increasing the

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When mortgage loan gatekeepers Freddy Mac and Frannie Mae replaced the standard 3% down conventional mortgage loan with a 5% standard last Saturday, many viewed the switch as a tightening of underwriting policies and increased constriction within the industry.

“The more equity you have in your home, the less chance of foreclosure having a negative impact on the lender/investor,” explains Premier Lending’s, Trevor Bellows; “When we see policies and guidelines tighten like this, it’s usually a product of poor performance—foreclosure—of this type of loan”

With the economy on the up-swing, such measures are being taken to prevent such catastrophic economic downfalls as Americans have been familiar with in recent years.

The housing market historically

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Correct me if I'm wrong, but didn't the collapse of the economy mostly rest on the shoulders of low-down payment mortgages? I know it's far more complex than that, but for all intents and purposes, banks were handing out mortgages to unqualifed applicants for little money upfront.

Following the collapse of the housing market, buyers were required to pay as much as 20% down or they had to turn to the Federal Housing Administration for a low down-payment loan. But as the FHA has been raising premiums and started requiring borrowers to buy private mortgage insurance for the life of the loan, many prospective borrowers are looking elsewhere.

Since 2008, low-down payment loans, such as 5% down, were far too risky for private lenders, the banks, to take

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Its been very quiet since Friday and rates are holding steady.  With six reports out Thursday and Friday though, that could change.

What's Happening?

With the bond market closed Monday and no reports of consequence out Tuesday or Wednesday, rates have stayed in a very small range.  In summary, nothing is happening.

What To Expect?

Thursday and Friday have three major reports and three secondary reports coming out.  With the numbers from the end of last week being pessimistic for rates, the market will take any "good for the economy" news to heart more so than weak economy, "good for rates" news. Thursday the markets will be looking for International Trade Balance numbers to stay somewhat consistent at $-39.1 billion.  Numbers showing a smaller

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Just because some home features were abandoned years ago doesn’t mean they should have been or are not useful and even attractive today. Here are a few once-popular details that today’s home owner may consider for their practicality and, in some cases, their attractiveness, according to BobVila.com:

1. Dutch doors – Popular with the 18th-century Dutch settlers of New York and New Jersey, Dutch doors are split horizontally in the middle, so light and air can come in while keeping animals out. To make one, saw any wood door in half and then attach each half to the door frame with two hinges apiece. A simple sliding bolt joins the top and bottom as a single, solid panel.

2. Sleeping porches – Sleeping porches grew in popularity in the 20th century,

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Although the Boulder area real estate market is “relatively healthy,” it is not a “pure” market, according to Ken Hotard, Boulder Area Realtor® Association’s senior vice president of public affairs, noting artificial market features are making it difficult to foresee much change.

The “health” of the market – at least the single-family portion – comes from the fact that 332 single-family homes sold in October, a 5.4 percent increase over the 315 homes that sold in October 2012 and a 7.8 percent increase over September.

Also, every Boulder community saw impressive increases in both average and median sales prices for single-family homes sold in October.

However, the “relatively” part comes in with the fact that the number of homes on the market in

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Realtor.com®’s recently released National Housing Trend Report for September shows that Denver – along with three other metros – ranks third for homes spending the least amount of time on the market.

Homes in Denver as well as San Francisco, San Jose and Stockton-Lodi, Calif., spend an average of 45 days on the market, according to the report.

Realtor.com® noted that a handful of markets experienced very fast-paced sales cycles in September – some at roughly half of the national median of 93 days on market. Oakland, Calif., stands alone with the least number of days on the market at 28 days, and California cities make up half of the top 10 metros.

Median Age of Inventory

10 MSAs with the Shortest Median Days on Market

 

The report

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The following are figures released by the Federal Emergency Management Agency (FEMA) in October regarding assistance provided to Coloradans affected by the flood of 2013 in September:

  • $49.4 million+ – The amount FEMA has approved in housing assistance and grants for other essential disaster-related needs, including medical, dental and funeral expenses and lost or damaged personal possessions.

  • $50.7 million – The amount the U.S. Small Business Administration has approved in federal disaster loans to Colorado homeowners, renters, businesses and private nonprofit organizations that sustained damage from the severe storms and flooding.

The remaining figures were valid as of their release on Oct. 11:

  •  $60.7 million – The

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From trends in real estate investing to recovering from disasters such as the September flood among the topics, attendees at this year’s Boulder Valley Real Estate Conference and Forecast will receive an invaluable education on the Boulder Valley market.

The event is set for 9:30 a.m. to 5:30 p.m. Thursday, Nov. 21, at the University of Colorado Stadium Club at Folsom Field, 2400 Colorado Ave.

Brad Blackwell, executive vice president, Portfolio Business Manager, Wells Fargo, is returning as one of two keynote speakers. Blackwell will speak on “The National Picture: Mortgage Markets in 2014.” He last spoke at the conference in 2010, when he was retail national sales manager for Wells Fargo Home Mortgage.

  Tom Binnings, senior partner of Summit

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A rough ending to the week for rates as the 10 year bond jumped 15 basis points to its highest level since mid September and mortgage rates moved back up to 4.375%.

What's Happening?

Since Wednesday morning we had seen slow but steady improvement in rates as the 10 year bond dropped from Tuesday's close of 2.67% down to a low of 2.59% at Thursday's close and mortgage rates had drifted back to 4.25%. Thursday's GDP report for the third quarter was stronger than expected and above the top of the consensus range.  That should be bad for rates but most all of the gain was from an increase in inventories not increased demand. Overall demand remains sluggish, import growth has decelerated and exports continued to grow but at a much slower pace than

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