Austin Mortgage Update
Austin Mortgage Update – Week Ending 2/27/09
March 2, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac survey **
30-yr Fixed – Slightly Higher
This Week: 5.07%
Last Week: 5.04%
1yr Ago: 6.24%
15-yr Fixed – Unchanged
This Week: 4.68%
Last Week: 4.68%
1yr Ago: 5.72%
5/1 ARM – Slightly Higher
This Week: 5.06%
Last Week: 5.04%
1yr Ago: 5.43%
Highlight of This Week’s Major Economic Reports
With many of the able buyers still waiting in anticipation for the government to slash mortgage rates to 4.5% — or, gasp, maybe even to 4% — it’s not much of a surprise that sales of new and existing homes continue to tumble. January saw Existing Home Sales fall 5.3%, while New Home Sales dropped 10%. The good news, however, is that inventory levels are continuing to drop; and prices, while still declining, are overall holding firm as the market tries to find a balance between supply and demand.
What to Look for Next Week
February’s employment report will be the headliner for the week, and the numbers aren’t expected to be pretty. Weekly unemployment claims have averaged 600K over the past few weeks, so it’s anticipated that the nation’s unemployment rate will rise again. The silver lining to this dreary projection is that it may help mortgage rates improve or at least hold steady.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
“Texas Home Prices Up” from the Texas A&M Real Estate Center
Latest home appreciation rates released this week by the Federal Housing Finance Agency (FHFA) indicate Texas home prices increased 2.1 percent last year.
Midland led the way with a 10.4 percent increase between fourth quarter 2007 and fourth quarter 2008. At the other end of the spectrum were Odessa and Brownsville, where prices fell 2.7 percent and 2.6 percent, respectively.
In the final quarter of 2008, Texas home prices increased 0.2 percent.
“The data indicate what we have believed all along,” said Real Estate Center Research Economist Dr. Jim Gaines. “Texas fared well in 2008, especially compared with the rest of the country.”
According to FHFA, here’s how home prices in select Texas cities did last year:
Austin–Round Rock – up 4.4%
College Station–Bryan – up 5.5%
Dallas-Plano-Irving – up 1.9%
Houston–Sugar Land–Baytown – up 3.7%
Killeen–Temple–Fort Hood – up 2.5%
San Antonio – down 1.6%
Waco – down 1.7%
Nationally, prices dropped 4.5 percent last year for the overall index (which includes financings and refinancing) and 8.2 percent based on purchases-only data.
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Austin Mortgage Update
Austin Mortgage Update – Week Ending 2/13/09
February 13, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Slightly Lower
This Week: 5.16%
Last Week: 5.25%
1yr Ago: 5.72%
15-yr Fixed – Slightly Lower
This Week: 4.81%
Last Week: 4.92%
1yr Ago: 5.25%
5/1 ARM – Slightly Lower
This Week: 5.23%
Last Week: 5.26%
1yr Ago: 5.19%
Highlight of This Week’s Major Economic Reports
After much anticipation and ongoing debate, Congress finally passed a stimulus bill that is aimed at reviving the economy and creating 3-4 million jobs for American workers. The slimmed-down $789 billion economic recovery plan includes a $8,000 tax credit available only to first-time homebuyers who meet the income requirements, and the credit has been extended for purchases through the end of November. An exciting twist to this tax credit is the removal of the repayment feature as long as the home is not sold within three years.
And, while the stimulus plan also extended the higher loan limits for Fannie Mae and Freddie Mac, this won’t have an impact on us, since Texas is not considered a “high cost region,” thereby leaving our conforming loan limits at $417,000.
Additionally, the newly minted Treasury Secretary announced plans (with details to be laid out in the coming weeks) to utilize the remaining $350 billion TARP money to combat the foreclosure crisis and help banks remove “toxic assets” from their balance sheets. We’ll all be anxious to learn more about the specifics behind these plans, as they will undoubtedly determine the direction of mortgage rates in the near term.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
“Texas Tops in Job Growth” from BizJournals and Texas A&M Real Estate Center
Texas was top in job growth last year, according to a recent analysis by bizjournals.com.
Five Texas cities ranked among the top ten, with three securing the top three spots.
Houston added 57,300 jobs in 2008, giving it the best year of any U.S. market. Dallas–Fort Worth was next with 43,300 additional jobs, then San Antonio, which was up by 14,900 jobs.
Austin ranked fifth with 9,600 jobs added, and El Paso’s 5,300 additional jobs landed the city at ninth.
Bizjournals.com examines markets that have at least 250,000 nonfarm jobs and compares employment figures for the final month of the past two years. Seventy-two of the 88 markets studied suffered declines in employment in 2008.
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Austin Mortgage Update
Austin Mortgage Update – Week Ending 2/6/09
February 9, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Higher
This Week: 5.25%
Last Week: 5.10%
1yr Ago: 5.67%
15-yr Fixed – Higher
This Week: 4.92%
Last Week: 4.80%
1yr Ago: 5.15%
5/1 ARM – Relatively Unchanged
This Week: 5.26%
Last Week: 5.27%
1yr Ago: 5.21%
Highlight of This Week’s Major Economic Reports
The hot topic of the week centered on the ongoing debate in the Senate regarding the stimulus package, which may have reached a compromise totaling $780 billion. The final vote in the Senate is expected in the next few days, and it would then go back to the House of Representatives for approval.
One key aspect of the proposed bill is a revision to the home-buyer tax credit. Currently a first-time buyer $7500 tax credit to be paid back over 15 years, the new proposal eliminates the repayment requirement, doubles the amount to $15,000, and would be available to all home-buyers.
On the labor front, the latest figures revealed that another 598,000 jobs were lost in January, sparking the biggest monthly job loss figure since 1974. The unemployment rate now sits at 7.6% — the highest since 1992.
What to Look for Next Week
With the economic calendar lacking any notable headliners, both the stock markets and bond markets will be directed by the results of – and reaction to – the stimulus package. It is expected that a final bill will be voted on by both houses of Congress before the end of the week.
Short-Term Rate Outlook
Stable to Slightly Higher
Stay Informed: What’s in the News
“Texas Economy Still Ahead of Nation’s” from Texas A&M Real Estate Center
The Texas economy is cooling but continues to create jobs. While the U.S. economy lost more than 2.8 million jobs from December 2007 to December 2008, Texas gained 154,600 jobs over the same period.
The state’s seasonally adjusted unemployment rate rose from 4.2 percent in December 2007 to 6 percent in December 2008. By comparison, the U.S. seasonally adjusted unemployment rate rose from 4.9 percent to 7.2 percent during the same period.
“Fed: Banks Still Tightening Loan Standards” from USA Today
U.S. banks were miserly with credit through mid-January, as the economy plunged and loan demand deteriorated, the Federal Reserve said Monday in a quarterly lending survey. Banks continued to impose tight conditions on borrowers, even as the Treasury Department provided about $200 billion in capital infusions under a special $700 billion financial rescue law. Treasury officials have pressed lenders to make loans to good clients to get the economy moving. The Fed has begun buying up to $500 billion in mortgage-backed securities to unfreeze lending.
“Fannie Mae and Freddie Mac prevent the extension of eviction” from Ecommerce Journal
Fannie Mae and Freddie Mac, the largest holders of U.S. mortgages, announced on Friday that they intend to extend the eviction cessation until March. They are also launching a new strategy to offer qualified owner-occupants and tenants’ leases so they can rent the properties on a month-to-month basis after foreclosure at market rates. This is the third extension of eviction suspensions. Both Fannie Mae and Freddie Mac started a program to suspend foreclosures evictions on Nov. 26. Those policies were set to expire on Jan. 9, but they were extended until Friday.
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Austin Mortgage Update
Austin Mortgage Update – Week Ending 1/30/09
February 4, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Slightly Lower
This Week: 5.10%
Last Week: 5.12%
1yr Ago: 5.68%
15-yr Fixed – Unchanged
This Week: 4.80%
Last Week: 4.80%
1yr Ago: 5.17%
5/1 ARM – Slightly Higher
This Week: 5.27%
Last Week: 5.24%
1yr Ago: 5.32%
Highlight of This Week’s Major Economic Reports
Thanks in large part to falling prices and 50-yr-low interest rates, Existing Home Sales rebounded 6.5% in December to yield the biggest one-month increase since 2002. On the other hand, despite astounding offers for 3.99% fixed rates, New Home Sales didn’t fare as well, with inventories now at a whopping 12 months.
The state of the economy obviously hasn’t helped with home sales. GDP in the 4th quarter contracted 3.8%, which was the steepest decline in 27 years, and weekly unemployment claims continue to hover in the 500k range.
With the economy still weak and inflation in hibernation, the Fed not surprisingly kept short-term rates unchanged. They did, however, provide some assurance to the markets by proclaiming their intent to buy Treasuries and mortgage-backed securities to keep interest rates steady.
What to Look for Next Week
February will be rung in with all eyes on the latest jobs report. Not much optimism lies with these figures, so mortgage rates will be more likely driven by the stock market than these results.
Short-Term Rate Outlook
Stable to Slightly Higher
Stay Informed: What’s in the News
“Texas Attracts International Investors” from Austin Business Journal
Despite increasing global real estate turmoil, Texas remains an attractive play for foreign investors looking for opportunities in the United States, a report shows.
The Association of Foreign Investors in Real Estate ranks members’ top cities for U.S. and global investment in 2009. Houston ranked fifth, while Austin ranked 11th, tying with Las Vegas, Phoenix, Orlando, Atlanta, San Diego and San Jose, Calif.
Washington D.C. claimed the first spot.
The United States ranked first among nations in terms of opportunities for capital appreciation.
Conducted in fourth quarter 2008, the survey polled the association’s members who collectively hold about $1 trillion in real estate worldwide.
“Freddie Mac to Let Residents Rent Homes After Foreclosure” from USA Today
Freddie Mac on Friday plans to announce a first-of-a-kind plan that lets homeowners and tenants temporarily stay in homes in foreclosure by renting them back, an effort to stop many of the sudden evictions that have come along with the housing crisis. The program will let thousands of qualified former homeowners, as well as families renting from landlords, enter into a monthly lease on their homes after they have been acquired by Freddie Mac through foreclosure.
“More Foreclosures Coming” from CNNMoney.com
A large number of bank-owned homes that have yet to be listed for sale indicate that even more excess housing inventory is queuing up, and the long line waiting to hit the market is cause for concern.
RealtyTrac, the online marketer of foreclosed properties, recently discovered that it has far more foreclosed properties listed in its database, which the company compiles using courthouse records, than there are listed in the Multiple Listing Services (MLS) maintained by real estate agents.
“It’s not surprising that RealtyTrac has more listings. MLSs traditionally focus on individuals selling their own homes,” said Dr. Jim Gaines, economist at the Real Estate Center at Texas A&M University.
RealtyTrac found that MLS listings for four states contained only a third of the foreclosures RealtyTrac has in its database. One problem may be system overload. Gaines says that, historically, the foreclosure market has not predominantly used local MLSs to market repossessed homes. But because of the surge in the volume of foreclosures, the banks need to move homes quickly, so MLSs are now being leaned on more heavily.
Gaines adds that, anecdotally, real estate experts report that as much as 40 percent of overall listings on MLSs in major metro areas are foreclosures. The trouble with discerning what these findings really mean for the market, however, is that no one maintains specific foreclosure sales data. The government doesn’t keep up with it, and neither does any real estate service.
Looking for more information about the Austin Real Estate Market? If so, please do not hesitate to contact me directly.
Kevin Wilhelm, ABR GRI
Coldwell Banker United, Realtors
512-417-3915
Austin Mortgage Update
Austin Mortgage Update – Week Ending 1/16/09
January 16, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do Last Week?
** according to Freddie Mac **
30-yr Fixed – Lower
Last Week: 4.96% — lowest since 1971
Previous Week: 5.01%
1yr Ago: 5.69%
15-yr Fixed – Slightly Higher
Last Week: 4.65%
Previous Week: 4.62%
1yr Ago: 5.21%
5/1 ARM – Lower
Last Week: 5.25%
Previous Week: 5.49%
1yr Ago: 5.40%
Highlight of Last Week’s Major Economic Reports
According to Freddie Mac, “Interest rates for 30-year fixed rate mortgages fell for the 11th straight week to another record low, due in part to the slowing economy and government actions. So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mortgage market since September 2008, which put downward pressure on interest rates for fixed-rate mortgages. The Federal Reserve may add up to an additional $570 billion more this year, based on its November 25, 2008, announcement, to further shore up mortgage lending and keep rates low.”
On the economic news front, Retail Sales ended up being much worse than the already ‘horrible’ expectations for December. Prices are falling all around, but fortunately we’re not in deflationary territory – at least not yet. In December, producer prices dropped 1.9%, while consumers’ costs eased by 0.7%.
What to Look for This Week
The economic calendar is very light this week, so expect the stock market to drive the direction of mortgage rates. We’ve got the inauguration on tap, and that should generate some buzz with investors.
Short-Term Rate Outlook
Stable
Stay Informed: What’s in the News
“Economist Predicts Strong Texas Housing Market in 2009” from Texas A&M Real Estate Center
Despite the negative news surrounding the real estate industry, now continues to be a great time to buy a home in Texas, said Dr. Mark Dotzour, speaking before the Beaumont Board of Realtors.
Dotzour, the chief economist for the Real Estate Center at Texas A&M University, said the state’s housing market should thrive in 2009 thanks to affordable housing and steady job growth.
However, he also told the group to expect a decline in new home construction this year, partly because more new homes could inflate the market, causing existing home values to decline.
Although the latest report from California-based foreclosure listing firm RealtyTrac showed an 81 percent increase in the number of homeowners facing foreclosure last year, Dotzour said he does not expect foreclosures to become an issue in Texas.
“Our home prices have been going up,” he said, “and when your house is going up, you’d rather sell it then give it back to the bank.”
“Economy Still Better in Texas” from Texas A&M Real Estate Center
More than two million U.S. jobs were lost from November 2007 to November 2008, representing 1.5 percent of its labor force. The Texas economy fared much better during the period, gaining 222,900 jobs and increasing its labor force by 2.1 percent.
The state’s seasonally adjusted unemployment rate rose from 4.2 percent in November 2007 to 5.7 percent in November 2008. The U.S. seasonally adjusted unemployment rate rose from 4.7 percent to 6.7 percent over the same period.
Despite recent oil price decreases, the state’s mining industry continues to gain jobs. It ranked first in job creation, followed by professional and business services, leisure and hospitality, education and health services, and construction.
All Texas metros experienced positive employment growth rates from November 2007 to November 2008. McAllen-Edinburg-Mission ranked first in job creation followed by Laredo, College Station–Bryan, Longview and El Paso.
The state’s actual unemployment rate in November 2008 was 5.6 percent. Petroplexes Midland and Odessa ranked first and second in lowest unemployment rate followed by Amarillo, Lubbock, Abilene and College Station–Bryan.
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
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Austin Mortgage Update
Austin Mortgage Update – Week Ending 1/9/09
January 9, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 5.01% — lowest since 1971
Last Week: 5.10%
1yr Ago: 5.87%
15-yr Fixed – Lower
This Week: 4.62%
Last Week: 4.83%
1yr Ago: 5.43%
5/1 ARM – Lower
This Week: 5.49%
Last Week: 5.57%
1yr Ago: 5.63%
Highlight of This Week’s Major Economic Reports
Despite a recent uptick in Treasury yields, mortgage rates actually fell during the first full week of the New Year. One major catalyst driving this dip is the start of the Fed’s foray in purchasing mortgage-backed securities. The $500 billion budgeted for this shopping spree is helping to increase demand, which in turn has kept rates low.
Stocks also took a hit throughout the week as retailers and other corporations took turns issuing earnings warnings. This then led to a ‘flight to quality’ mad-rush over to the bonds markets, thereby further driving down rates.
And, lastly, there was the much-anticipated Employment Report. We knew it wasn’t going to be pretty. 524,000 jobs lost in December, which brought the final 2008 tally to 2.6 million. The unemployment rate now sits at a level we haven’t seen in 16 years – 7.2%. Despite the gloomy outlook for the job market, most economists do not anticipate the unemployment rate to hit double-digit levels, since the economy (i.e., GDP) is expected to make a comeback (albeit a modest one) in the second half of the year.
What to Look for Next Week
We’ll get to find out just how bad the worst holiday shopping season in years was when the latest Retail Sales figures come out on Wednesday. Then, of course, there are the all-important inflation gauges in the Consumer Price and Producer Price Indexes. Inflation is not expected to be an issue at all; it’s more so seeing if the numbers start to creep into deflationary territory, as many economists fear.
Short-Term Rate Outlook
Fractionally Lower
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
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Austin Mortgage Update
Austin Mortgage Update – Week Ending 1/2/09
January 2, 2009 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 5.10% — lowest since 1971
Last Week: 5.14%
1yr Ago: 6.07%
15-yr Fixed – Lower
This Week: 4.83%
Last Week: 4.91%
1yr Ago: 5.68%
5/1 ARM – Lower
This Week: 5.57%
Last Week: 5.49%
1yr Ago: 5.78%
Highlight of This Week’s Major Economic Reports
Vacations and holidays led to minimal activity – and movement – in the mortgage markets this week. But, some “promising” news to wind down 2008: the drop in consumer confidence was less severe in December, and the final week of the month saw fewer unemployment filings.
What to Look for Next Week
The first full week of 2009 kicks off with a slew of economic data, but most eyes (and the direction of mortgage rates) will focus on December’s employment report. Results that convey continued weakness in the economy should help to keep mortgage rates near low levels.
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
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Austin Mortgage Update
Austin Mortgage Update – Week Ending 12/26/08
December 26, 2008 by Kevin Wilhelm · Leave a Comment
What Did Interest Rates Do This Week?
** according to Freddie Mac **
30-yr Fixed – Lower
This Week: 5.14% — lowest since 1971
Last Week: 5.19%
1yr Ago: 6.17%
15-yr Fixed – Lower
This Week: 4.91%
Last Week: 4.92%
1yr Ago: 5.79%
5/1 ARM – Lower
This Week: 5.49%
Last Week: 5.60%
1yr Ago: 5.90%
Highlight of This Week’s Major Economic Reports
According to Freddie Mac, “Interest rates on 30-year fixed-rate mortgages eased for the eighth straight week and set another record low since Freddie Mac’s survey began in 1971. Real GDP growth fell 0.5% in the third quarter of the year, pulled down by the largest drop in consumer spending since the second quarter of 1980. The market consensus calls for an even larger decline in the last three months of the year.
The housing market, meanwhile, continues to contract nation-wide. Existing home sales in nation-wide (excluding condominiums and co-ops) fell 8.6% in November to 4.0 million houses (annualized) in November, representing the slowest pace since July 1997. Moreover, the median sales price fell 12.8% from November 2007, the largest 12-month decline since records began in January 1968, according to the National Association of Realtors®.”
What to Look for Next Week
Not much expected for the final week of 2008. Rates aren’t expected to sway much either way.
Short-Term Rate Outlook
Stable
This update brought to you by
Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
and
Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915
Hello, my name is Kevin Wilhelm, and I'm a licensed TEXAS REALTOR® with Realty Austin here in the great city of Austin, TX. Buying or Selling Real Estate in Austin is serious business, but I'm here to help keep things easy and stress-free. Please bookmark or subscribe to this site, and I'll do all I can to provide you with a great online real estate experience. I'm just a click or call away, so please contact me if I can help you in any way - 
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