Well, we knew it was tough to get a loan in 2007...hopefully that will change some in the next couple of years, but here is why 07 was so hard...some of this we have seen thus far in 2008, but it does seem to be getting better. Let us know your feedback on our Forum Section of InvestSmarter.com so we can see if our investors and friends are experiencing the same things.
Daily Real Estate News September 12, 2008
Report: Getting a Loan Tough in 2007
Mortgage lending fell sharply in 2007 because lenders denied nearly one-third of loan applications, according to a report by the Federal Reserve.
Minorities were most affected. The number of mortgage loans made to Hispanic borrowers fell 49 percent and the number to African-American borrowers declined 35 percent between the first half of 2006 and the second half of 2007. The number of loans to white borrowers also declined by 22 percent during the same time period.
Black and Hispanic borrowers were more likely to receive high-rate loans. In the second half of 2007, 29.5 percent of first-lien home-purchase loans to African-Americans and 24.3 percent of such loans made to Hispanics exceeded the high-rate threshold, compared with 9.2 percent for non-Hispanic whites. (The figures exclude government-backed loans.)
The following are the main reasons given for loan denials in 2007, according to Fed researchers. (The analysis excludes investment properties and home-equity loans. The percentages add up to more than 100 percent.)
Credit history, 30.25 percent
Not enough collateral, 23.4 percent
Other, 23.3 percent
Debt-to-income ratio, 20.7 percent
Credit application incomplete, 14.2 percent
Unverifiable information, 8.4 percent
Insufficient cash, 3.8 percent
Employment history, 2 percent
Mortgage insurance denied, 0.2 percent
Source: The Wall Street Journal, Ruth Simon and Tom McGinty (09/12/08)
The Destin Florida Home market has stayed fairly average compared to the nation, but like everywhere else there are wonderful deals to be found and all of the listed property in the Destin Florida Home market is available online at http://www.destin-florida-mls.com/ you can find ever listing right there without leaving your home! Of course with the price of gas these days, it makes a lot more sense to do that!!!
If you are looking for other areas in Florida, please also visit http://www.randbcoastalrealestate.com/ which looks at the entire Northwest Florida area.
Saturday, September 13, 2008
Wednesday, August 6, 2008
Housing Declines to Remain Small
Well I'm glad to hear taht the declines are remaining small...but pretty sure they already dropped. So it that a fair/accurate statement? The Destin Florida Real Estate market has seen ups and downs to today's needs but we agree that the Decline has leveled off. We are back to the preboom pricing in many areas and what we continue to see is more and more attention to the cost limiting factor to most. We talk about this more on www.InvestSmarter.com The article below sheds some interesting light on the national outlook:
Economists: Housing Declines to Remain Small
A team of economists who created a variety of forecasting models concludes that predictions of further large housing price declines are greatly overblown.They point to the house price index of the Office of Federal Housing Enterprise as most reflective of reality. Its data reveals that only four states — Arizona, California, Florida, and Nevada — have had declines of more than 4 percent in home prices over the past year.These economists, including professors from Columbia University and from the Center for Real Estate at Wichita State University in Kansas, discount more drastic figures from the Standard & Poor's/Case-Shiller housing price index. They say this index is faulty because it doesn’t include data from 13 states and offers only partial coverage of 29 others, making its results an inaccurate reflection of middle-market homeownership.Using a model constructed from the OFHEO price index, foreclosures, home sales, permits and employment, the economic team concluded that declines in house prices are highly likely to remain small. “Our analysis reveals, unsurprisingly, that foreclosures and home prices have negative effects on each other over time, but this does not imply a vicious cycle of collapsing prices. Our models predict that as foreclosures continue to climb in many states, house prices will remain flat or decline in those states — but will not collapse.“One reason for this is that the effect of foreclosure shocks on house prices is small. Furthermore, other fundamental factors (such as employment growth and a slowing of the growth of the housing supply over the past year and a half) will cushion the impact of foreclosures,” the economic team said.Source: The Washington Post, Charles W. Calomiris, Stanley D. Longhofer and William Miles (08/04/08)
Economists: Housing Declines to Remain Small
A team of economists who created a variety of forecasting models concludes that predictions of further large housing price declines are greatly overblown.They point to the house price index of the Office of Federal Housing Enterprise as most reflective of reality. Its data reveals that only four states — Arizona, California, Florida, and Nevada — have had declines of more than 4 percent in home prices over the past year.These economists, including professors from Columbia University and from the Center for Real Estate at Wichita State University in Kansas, discount more drastic figures from the Standard & Poor's/Case-Shiller housing price index. They say this index is faulty because it doesn’t include data from 13 states and offers only partial coverage of 29 others, making its results an inaccurate reflection of middle-market homeownership.Using a model constructed from the OFHEO price index, foreclosures, home sales, permits and employment, the economic team concluded that declines in house prices are highly likely to remain small. “Our analysis reveals, unsurprisingly, that foreclosures and home prices have negative effects on each other over time, but this does not imply a vicious cycle of collapsing prices. Our models predict that as foreclosures continue to climb in many states, house prices will remain flat or decline in those states — but will not collapse.“One reason for this is that the effect of foreclosure shocks on house prices is small. Furthermore, other fundamental factors (such as employment growth and a slowing of the growth of the housing supply over the past year and a half) will cushion the impact of foreclosures,” the economic team said.Source: The Washington Post, Charles W. Calomiris, Stanley D. Longhofer and William Miles (08/04/08)
Thursday, July 10, 2008
Rates Up Some But More Applications Hit the Market
Well some people are still buying property so that's a good thing! Mortgage applications are on the rise and hopefully that will lead to more approvals! It has been a tough few months that's for sure...many things are changing and many more changes are to come. Stay tuned to www.InvestSmarter.com and the forum section to stay on top of the latest news and to help others stay on top of what's going on in today's Real Estate Market. The Destin Florida Home market has been an interesting one that's for sure!
We have seen pretty decent growth and some fabulous trends of late. Prices are down to a normal rate and we have begun publishing other information about Real Estate in Destin Florida online so please take some time to look at it today.
Mortgage Applications Rise
Mortgage applications rose 7.5 percent from 477.5 the previous week to 513.4 last week, the highest level in more than a month, according to the Mortgage Banker Association’s weekly survey.The numbers are adjusted to account for the July 4th holiday. On an unadjusted basis, the index decreased 14.1 percent compared to the previous week and was down 18.1 percent compared with the same week a year ago.Despite rising interest rates, the refinance share of mortgage activity rose 8.7 percent, while the purchase index increased 6.7 percent.
30-year fixed-rate mortgages increased to 6.43 percent from 6.33 percent;
15-year fixed-rate mortgages increased to 5.94 percent from 5.90 percent;
1-year ARMs increased to 7.24 percent from 7.14 percent.
Source: Mortgage Bankers Association (07/09/2008)
More and more we are seeing the minium monthly payment thoughts and this just comes back into play here. So when looking online at www.Destin-Florida-MLS.com make sure that you are looking to see what's available and use our investment calculators to dig deeper into your overall costs.
We have seen pretty decent growth and some fabulous trends of late. Prices are down to a normal rate and we have begun publishing other information about Real Estate in Destin Florida online so please take some time to look at it today.
Mortgage Applications Rise
Mortgage applications rose 7.5 percent from 477.5 the previous week to 513.4 last week, the highest level in more than a month, according to the Mortgage Banker Association’s weekly survey.The numbers are adjusted to account for the July 4th holiday. On an unadjusted basis, the index decreased 14.1 percent compared to the previous week and was down 18.1 percent compared with the same week a year ago.Despite rising interest rates, the refinance share of mortgage activity rose 8.7 percent, while the purchase index increased 6.7 percent.
30-year fixed-rate mortgages increased to 6.43 percent from 6.33 percent;
15-year fixed-rate mortgages increased to 5.94 percent from 5.90 percent;
1-year ARMs increased to 7.24 percent from 7.14 percent.
Source: Mortgage Bankers Association (07/09/2008)
More and more we are seeing the minium monthly payment thoughts and this just comes back into play here. So when looking online at www.Destin-Florida-MLS.com make sure that you are looking to see what's available and use our investment calculators to dig deeper into your overall costs.
Thursday, July 3, 2008
Mortgage Applications on the Rise
One of the biggest problems we have seen lately relates to banks and lenders being tighter than normal when it comes to loaning money. Even strong credit doesn't help much these days!! We have published more information online with www.InvestSmarter.com discussing financing options and more information around the key basic portions of the Real Estate financial market. It seems to be in constant change as seen below:
Mortgage Applications Rise
Mortgage applications rose 3.6 percent last week on a seasonally adjusted basis to 477.7 from 461.3, according to the Mortgage Bankers Association weekly survey.On an unadjusted basis, the index increased 3.2 percent compared to the previous week, but it was down 22.8 percent compared with the same week last year.The refinance index increased 4.7 percent and the purchase index rose 2.8 percent, at least in part because mortgage rates declined slightly after hitting yearly highs earlier in the month.Mortgage rates were mixed last week:
30-year fixed-rate mortgages decreased to 6.33 percent from 6.39 percent
15-year fixed-rate mortgages decreased to 5.9 percent from 5.95 percent
1-year ARMs increased to 7.14 percent from 7.09 percent.Source: Mortgage Bankers Association (07/02/2008)
More people are leaning to the 1 year ARMs which bother us some at www.Destin-Florida-MLS.com because this is part of the problem we have been seeing within the constraints of what's available. It might be a quick and ok fix for someone that is already owning the home, i.e. refinancing, but for a new loan or purchase you could be setting yourself up for failure. The only second thought to that would be if it's a property you are being forced to close on and are trying to flip out of. Keeping your monthly payment as low as possible is important.
We hope we can continue to provide more information on topics such as these in the months to come. Stay tuned for more!!!
Mortgage Applications Rise
Mortgage applications rose 3.6 percent last week on a seasonally adjusted basis to 477.7 from 461.3, according to the Mortgage Bankers Association weekly survey.On an unadjusted basis, the index increased 3.2 percent compared to the previous week, but it was down 22.8 percent compared with the same week last year.The refinance index increased 4.7 percent and the purchase index rose 2.8 percent, at least in part because mortgage rates declined slightly after hitting yearly highs earlier in the month.Mortgage rates were mixed last week:
30-year fixed-rate mortgages decreased to 6.33 percent from 6.39 percent
15-year fixed-rate mortgages decreased to 5.9 percent from 5.95 percent
1-year ARMs increased to 7.14 percent from 7.09 percent.Source: Mortgage Bankers Association (07/02/2008)
More people are leaning to the 1 year ARMs which bother us some at www.Destin-Florida-MLS.com because this is part of the problem we have been seeing within the constraints of what's available. It might be a quick and ok fix for someone that is already owning the home, i.e. refinancing, but for a new loan or purchase you could be setting yourself up for failure. The only second thought to that would be if it's a property you are being forced to close on and are trying to flip out of. Keeping your monthly payment as low as possible is important.
We hope we can continue to provide more information on topics such as these in the months to come. Stay tuned for more!!!
Sunday, May 11, 2008
Overflowing Inventory...What does that mean for our Market?
Analysts are seeing a shrinking of inventory all over the United States. That being said....who's picking these homes up? There are investors and homeowners stepping in. The market is coming down to a more even spot. When you begin looking at levels of pricing(removing the 2004-early 2006 range) we find that the majority of markets are back on the normal 7-10% appreciation. Mortgage Rates are staying level and continuing to drop a little bit more. More information on rates and what you can afford can be found at www.InvestSmarter.com. Even CNN Money discussed this in the article below. Very good insight. The Destin Florida Real Estate market is following a very similar trend. These trends are also within another blog on this site showing the stabilization of the market. Destin Florida is still on of the hottest spots to invest in or retire in. The wonderful beaches make this place stand out and the prices are still very low when you compare Destin Florida Real Estate to other Florida Real Estate markets.
From CNN: The supple inventory of homes available for sale in major metropolitan areas rose in April, according to figures compiled by ZipRealty Inc. But analysts believe the supply of houses may plateau.The inventory was up about 6 percent from April 2007 in the 18 metro areas for which Zip, a California-based real-estate brokerage, has comparable year-earlier data.Compared with March of this year, inventories expanded 3.5 percent in the 29 markets the company tracks. However, the number of homes on the market normally increases during this month-to-month timeframe.Michael Larson, a real estate analyst with Weiss Research, says, “Inventories in some cities may be topping out” because there are fewer new homes being built and builders and banks have been very aggressive in selling off foreclosures and previously built homes.
Source: The Wall Street Journal, James R. Hagerty, and CNNMoney.com, Les Christie (05/08/2008)
For more information on the Destin Florida Real Estate market or what's available for sale in Destin Florida, Niceville Florida, Crestview Florida or Fort Walton Beach Florida please visit the following:
www.RandBCoastalRealEstate.com
www.Destin-Florida-MLS.com
www.Destin-Florida-Condominiums.info
Have a great day!
From CNN: The supple inventory of homes available for sale in major metropolitan areas rose in April, according to figures compiled by ZipRealty Inc. But analysts believe the supply of houses may plateau.The inventory was up about 6 percent from April 2007 in the 18 metro areas for which Zip, a California-based real-estate brokerage, has comparable year-earlier data.Compared with March of this year, inventories expanded 3.5 percent in the 29 markets the company tracks. However, the number of homes on the market normally increases during this month-to-month timeframe.Michael Larson, a real estate analyst with Weiss Research, says, “Inventories in some cities may be topping out” because there are fewer new homes being built and builders and banks have been very aggressive in selling off foreclosures and previously built homes.
Source: The Wall Street Journal, James R. Hagerty, and CNNMoney.com, Les Christie (05/08/2008)
For more information on the Destin Florida Real Estate market or what's available for sale in Destin Florida, Niceville Florida, Crestview Florida or Fort Walton Beach Florida please visit the following:
www.RandBCoastalRealEstate.com
www.Destin-Florida-MLS.com
www.Destin-Florida-Condominiums.info
Have a great day!
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