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During my 30+ years in the real estate business, I have learned that there are two basic truths relating to the real estate market.
 1.) All real estate markets are local. Our market here is unique and is never as bad
or good as the Metro area or other national markets at any given time.
The primary reason for this is that the supply of properties of all types is relatively
limited here and always will be.
2.) The only constant factor relating the local market is change. The market is dynamic;
constantly being influenced by numerous factors: local, regional and national. The
person best qualified to recognize and advise you on current local market conditions
is the experienced, local real estate professional.
Whether you are thinking about buying or selling property in our market, please feel free to call me to find out how current market conditions will impact your individual situation.
The following information is provided for your consideration:
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Rate on 30-year mortgage down to record 3.88 pct.
Average rate on 30-year fixed mortgage down to record low of 3.88 pct.; 15-year to 3.17 pct.
By Derek Kravitz, AP Real Estate Writer | Associated Press
Thu, Jan 19, 2012
The average rate on the 30-year fixed mortgage fell again this week to a record low. The eighth record low in a year is attracting few takers because most who can afford to buy or refinance have already done so.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year fixed mortgage dipped to 3.88 percent this week, down from the old record of 3.89 percent one week ago.
The average on the 15-year fixed mortgage ticked up to 3.17 percent from 3.16 percent, which was also a record low. Records for mortgage rates date back to the 1950s.
Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.
For the past three months, the 30-year fixed mortgage rate has hovered near 4 percent. Yet cheap rates on the most popular mortgage option have done little to boost home sales.
High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don't want to sink money into a home that they fear could lose value over the next few years.
Previously occupied homes are selling just slightly ahead of 2010's dismal pace. New-home sales in 2011 will almost certainly be the worst on records going back half a century.
Builders are hopeful that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose strongly in December and January.
So far, the low rates have had minimal impact. Mortgage applications have risen about 6 percent on a seasonally adjusted basis over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.
To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.
The average rates don't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for the 30-year loan rose to 0.8 from 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.
For the five-year adjustable loan, the average rate was unchanged at 2.82 percent. The average on the one-year adjustable loan fell to 2.74 percent from 2.76 percent.
The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.
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Buyer interest leaves homebuilders less gloomy
By DEREK KRAVITZ, AP Real Estate Writer
Jan. 18, 2012
WASHINGTON - Increased interest by potential buyers left U.S. homebuilders less pessimistic about the housing market for the fourth straight month in January. But tighter lending standards are still keeping many of those buyers from purchasing new homes.
The National Association of Home Builders/Wells Fargo builder sentiment index rose four points to 25 in January. That's the highest level since June 2007. It's just the third time the index has been at 20 or above in two years.
Still, any reading below 50 indicates negative sentiment about the housing market. The index hasn't reached 50 since April 2006, the peak of the housing boom.
Last year, the number of people who bought new homes fell to its lowest level on records going back nearly a half-century. The figure for 2011 will likely be below that level.
Builders are struggling to compete with foreclosures, which have forced down prices of previously occupied homes. And many buyers are finding it hard to qualify for loans or meet higher required down payments.
Low appraisals are scuttling some deals after contracts have been signed. As a result, some buyers who want to buy a new house are holding off because they can't sell their home.
Those in a position to buy are benefiting from lower prices and mortgage rates. The average rate on the 30-year fixed mortgage is at a record low 3.89 percent. Yet those factors have done little to boost home sales.
David Crowe, the builder group's chief economist, pointed to some regional pockets of strength. New Orleans, Pittsburgh and other smaller areas, in particular, have reported increased buying.
New homes make up a small portion of housing sales. But they have an outsize impact on the economy. The builder trade group says each new home built creates an average of three jobs for a year and generates about $90,000 in taxes.
Sentiment about current single-family home sales rose three points to 25, according to a separate gauge in the survey. Builders are also more optimistic about future sales.
The outlook improved across the country, rising nine points in the Northeast, five points in the West, two points in the South and one point in the Midwest.
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Dale Lundblad, Associate BrokerB.I.C. Realty
Hwy. 53 and River St.P.O. Box 1165Cook, MN 55723
(218) 666-5352
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