Average Mortgage Rates Up Slightly

Freddie Mac's Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.07 percent with an average 0.7 point for the week ending February 26, 2009, up from last week when it averaged 5.04 percent. Last year at this time, the 30-year FRM averaged 6.24 percent.

"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. "Both the core Producer Price and Consumer Price Indexes ticked up in January, higher than the market consensus, while consumer confidence in February fell to the lowest reading since records began in January 1967.
"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. However, existing home sales (excluding condominiums and co-ops) fell 4.7 percent in January to 4.05 million units (annualized), the slowest pace since July 1997."

Case-Shiller Index Findings for Miami/Fort Lauderdale
The market value of single family homes in the Miami/Fort Lauderdale market declined 2.7% in December. The decline is a bit higher than November (-2.1%) but an improvement from the years’ steepest decline of -4.51% in March. Based on this index the value of single family homes decreased an average of 33.52% for 2008.

Case-Shiller Index Tiered Value for Miami/Fort Lauderdale
The index through December shows continued rapid decline in the “high tier” (lime green line). More valuable homes withstood the decline early in the changed market but forces seem to be catching up now.

The statistical references used for High/Medium/Low have changed as follows from the peak in 2006:

While difficult for many sellers, the continued downward pressure on the average price of a home will improve the affordability of our market and hopefully lead to a more vibrant real estate environment.

Upside Down?
Thanks to a recent agreement with the Keyes Company, I am now able to bring the resources of Short Sale Operations, LLC to homeowners who qualify. I'll apply all the tools of marketing and representation simultaneously with Short Sale Operations' efforts in negotiation and follow up with lenders. Call today to discuss if a short sale is possible in your situation:

A seller may qualify for a short sale if:

1. Their liabilities exceed assets
2. There is insufficient income, after reasonable living expenses, to make mortgage payments
3. The seller understands that they will not receive any money from the sale of the property
4. The seller understands there is no guarantee; however their Realtor and Short Sale Operations, LLC will work diligently to close a successful short sale transaction.

Imperial Point Area Best Buys

We're all hearing it's a 'Buyers' Market'; here are a few that I feel are the best buys in the Imperial Point area as of this week. Click on the link below to see what I've found. Call me if you'd like more information on any of these great homes!

Imperial Point Area Best Buys

Good News! (for mortgage interest rates)

All that bad economic news we’ve been enduring this week has at least resulted in another drop in average mortgage interest rates. "Mortgage rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "And consumer sentiment fell in February for the first time in three months to near its lowest level since May 1980, while industrial production slowed in January by more than the market consensus. In addition, the Federal Reserve lowered its growth forecasts for this year during its policy-setting meeting on January 27-28, noting a deeper contraction in the economy as the credit crunch tightens.

Average Mortgage Rate Drop Spurs Refinancing Activity

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.16 percent with an average 0.7 point for the week ending February 12, 2009, down from last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 5.72 percent.

"Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance," said Frank Nothaft, Freddie Mac vice president and chief economist. "This would translate into a monthly payment savings of around $188 on a $200,000 mortgage".

Broward County January Sales

Analysis of last month's sales of single family homes shows that nearly two-thirds of the closed sales were distressed (forclosure/reo and short sales). It is interesting to note that the median selling price of the distressed properties is about 35% below that of the one-third that sold as "arms length".

Rates Respond to Economic GOOD News (hmmm)

"Interest rates for fixed-rate mortgages rose this week amid economic reports that were somewhat better than consensus forecasts had anticipated," said Frank Nothaft, Freddie Mac vice president and chief economist. "The economy slowed by 3.8 percent in the fourth quarter of 2008, less than the market consensus, with inflationary pressures held at bay. Meanwhile, personal incomes fell by only half as much as some market forecasters predicted.