Mortgage Rates Ease Slightly This Week

Mortgage Rates Ease Slightly This Week
Freddie Mac   article by Daily Real Estate News | March 30, 2018

The 30-year fixed-rate mortgage fell 1 basis point to an average 4.44 percent this week, Freddie Mac reports.

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“Treasury yields fell from a week ago, helping to drive mortgage rates modestly lower,” explains Len Kiefer, Freddie Mac’s deputy chief economist. “The yield on the 10-year Treasury dipped below 2.8 percent for the first time since early February of this year. The decline in Treasury yields comes as investors move into safer assets amid increased trade tensions. Following Treasury yields, mortgage rates fell slightly.”

Freddie Mac reports the following national averages with mortgage rates for the week ending March 29:

  • 30-year fixed-rate mortgages: averaged 4.44 percent, with an average 0.5 point, dropping from last week’s 4.45 percent average. Last year at this time, the 30-year fixed-rate mortgage averaged 4.14 percent.
  • 15-year fixed-rate mortgages: averaged 3.90 percent, with an average 0.5 point, dropping from last week’s 3.91 percent average. A year ago, 15-year rates averaged 3.39 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.66 percent, with an average 0.4 point, dropping from last week’s 3.68 percent average. A year ago, 5-year ARMs averaged 3.18 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 033018

Nationally: Contract Signings Start Spring Season on High Note

Nationally: Contract Signings Start Spring Season on High Note
National Association of REALTORS®
article by Daily Real Estate News | March 28, 2018

Pending home sales reversed course in February, increasing in most areas of the country even as a shortage of homes for sale and higher home prices struck many markets, the National Association of REALTORS® reported Wednesday.

NAR’s Pending Home Sales Index—a forward-looking indicator based on contract signings—increased 3.1 percent month over month in February to a reading of 107.5. Despite the uptick, the index remains 4.1 percent below a year ago.

“Contract signings rebounded in most areas in February, but the gains were not targeted enough to keep up with last February’s level, which was the second highest over a decade (at 112.1),” says Lawrence Yun, NAR’s chief economist. “The expanding economy and healthy job market are generating sizable homebuyer demand, but the minuscule number of listings on the market and its adverse effect on affordability are squeezing buyers and suppressing overall activity.”

February-PHSYun says the top wild cards for the housing market in the coming months will be how both buyers and potential sellers adjust to the increase in mortgage rates and home prices. Besides higher borrowing costs, home prices nationwide also are up 5.9 percent so far in 2018, according to NAR. Some homeowners who currently have a low mortgage rate may grow even more reluctant to sell out of fears of having to buy another home at higher borrowing costs and higher home prices.

“Homeowners are already staying in their homes at an all-time high before selling, and any situation where they remain put even longer only exacerbates the nation’s inventory crunch,” Yun says. “Even if new-home construction starts pick up at a faster pace this year, as expected, existing sales will fail to break out if these record-low supply levels do not recover enough to meet demand.”

Contract signings last month rose by the largest amounts in the Northeast, up 10.3 percent month over month, but still below 5.1 percent a year ago. Yun cautions that the Northeast region will likely see some volatility in contracts at least through March, due to multiple winter storms over the last few weeks that have likely stalled some contract signings there.

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 032818

Mortgage Rates Barely Budge This Week

Mortgage Rates Barely Budge This Week
Freddie Mac   article by Daily Real Estate News | March 23, 2018

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After last week’s first rate drop of the year, mortgage rates showed little change this week—a welcome sign for the week’s kickoff to the spring home shopping season.

But home buyers and borrowers should expect several rate increases over the next few months, economists caution.

“The Federal Reserve raised interest rates [this week]—a much-anticipated move that comes as both U.S. and global economic fundamentals continue to strengthen,” says Len Kiefer, Freddie Mac’s deputy chief economist. “The Fed’s decision to raise interest rates by a quarter of a percentage point puts the federal funds rate at its highest level since 2008. The decision, while widely expected, sent the yield on the benchmark 10-year Treasury soaring.” (Read: Fed Raises Rates: What This Means for Mortgages)

The 30-year fixed-rate mortgage rose 1 basis point this week and averaged 4.45 percent, according to Freddie Mac.

“So far, U.S. housing markets remain resilient in the face of higher mortgage rates,” Kiefer notes. The National Association of REALTORS® reported earlier this week that existing-home sales in February increased 3 percent month over month on a seasonally adjusted basis and are up 1.1 percent from a year ago.

Freddie Mac reports the following national averages with mortgage rates for the week ending March 22:

  • 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.5 point, rising from last week’s 4.44 percent average. Last year at this time, 30-year rates averaged 4.23 percent.
  • 15-year fixed-rate mortgages: averaged 3.91 percent, with an average 0.5 point, rising from last week’s 3.90 percent average. A year ago, 15-year rates averaged 3.44 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.68 percent, with an average 0.4 point, rising from last week’s 3.67 percent average. A year ago, 5-year ARMs averaged 3.24 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 032318

Home Sales Rebound in Kickoff to Spring

Home Sales Rebound in Kickoff to Spring
National Association of REALTORS®
article by Daily Real Estate News | March 21, 2018

Feb-EHSLow inventory levels and accelerating home prices couldn’t put a lid on existing-home sales in February. Following two consecutive months of declines, existing-home sales rebounded 3 percent in February month over month and reached a seasonally adjusted annual rate of 5.54 million, the National Association of REALTORS® reported Wednesday. Sales of existing homes, which include single-family homes, townhomes, condos, and co-ops, are now 1.1 percent higher than a year ago.

“A big jump in existing-home sales in the South and West last month helped the housing market recover from a two-month sales slump,” says Lawrence Yun, NAR’s chief economist. “The very healthy U.S. economy and labor market are creating a sizable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices—especially in the West—shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar.”

5 Housing Indicators to Gauge the Market

Here’s a closer look at findings from NAR’s latest housing report.

Home prices: The median existing-home price for all housing types was $241,700 in February, up 5.9 percent from a year ago.

Inventories: The number of homes for sale at the end of February increased 4.6 percent to 1.59 million. That is still 8.1 percent lower than a year ago. Unsold inventory is at a 3.4-month supply at the current sales pace.

All-cash sales: All-cash sales comprised 24 percent of transactions in February, the highest since last February (27 percent). Individual investors tend to account for the biggest bulk of all-cash sales. They purchased 15 percent of homes in February, unchanged from a year ago.

Distressed sales: Foreclosures and short sales made up 4 percent of sales in February, down from 7 percent a year ago. Broken out, 3 percent of February sales were foreclosures and 1 percent were short sales.

Days on the market: Forty-six percent of homes sold last month were on the market for less than a month. Overall, properties stayed on the market for an average of 37 days in February, down from 45 days a year ago. “Homes for sale are going under contract a week faster than a year ago, which is quite remarkable given weakening affordability conditions and extremely tight supply,” says Yun. “To fully satisfy demand, most markets right now need a substantial increase in new listings.”

Source: National Association of REALTORS®; REALTOR® Magazine Online, Daily Real Estate News 032118

NAR’s Yun: Housing Starts Are ‘Vastly Inadequate’

NAR’s Yun: Housing Starts Are ‘Vastly Inadequate’
National Association of REALTORS®
article by Daily Real Estate News | March 19, 2018

House 1035Fewer new homes were in the pipeline in February, as housing starts for combined multifamily and single-family homes plunged 7 percent month over month, the U.S. Commerce Department reports. Housing production for the month was at a seasonally adjusted annual rate of 1.24 million units.

“The fall in housing starts in February is a movement in the wrong direction,” says Lawrence Yun, chief economist for the National Association of REALTORS®. “The key to economic prosperity at this juncture of economic expansion is to produce more new homes. That will help with job creation and reduce the swift price appreciation in several markets.”

A total of 1.2 million homes were constructed last year, which Yun calls “vastly inadequate.” February’s figure is just barely above year-ago levels, he adds. “It’s not enough,” Yun says. “While relaxing regulations on small-sized community banks may spur more construction loans for building, labor shortages in the industry continue to stunt overall activity.”

Multifamily production plunged 26.1 percent in February to a seasonally adjusted annual rate of 334,000 units, while single-family starts eked out a 2.9 percent gain to 902,000 units. Still, rising buyer demand, along with record-low inventory, has prompted calls from many in the real estate industry for builders to add more new homes.

Randy Noel, chairman of the National Association of Home Builders, says developers are trying to manage rising construction costs to keep home prices competitive. NAHB Chief Economist Robert Dietz says the uptick in single-family production in February follows the organization’s 2018 forecast for gradual, modest strengthening in the new-construction market.

Combined single-family and multifamily home production rose by the highest amount in the Midwest last month, up 7.6 percent month over month. However, housing starts dropped 12.9 percent in the West, 7.3 percent in the South, and 3.5 percent in the Northeast.

Source: National Association of REALTORS® and National Association of Home Builders; REALTOR® Magazine Online, Daily Real Estate News 031918

Beautiful Renovated Ranch Just Listed in Kensington Park of Priest Lake

3821Hillshire WPimagesRenovated Ranch in
Popular Neighborhood

3821 Hillshire Drive
Antioch, Tennessee 37013

MLS 1911684 | Area 8
Kensington Park of Priest Lake
offered at $319,900
Built 1986 | .43 Acre | 2,274 s.f.
3 Bed | 2 Bath | 2-Car Garage

Terrific home, renovation and neighborhood. Wonderful floor plan – entry leads to Great Room flowing into Dining Room, Kitchen, Sun Room. All bedrooms and main hallway on right side of home. Outdoor entertaining includes expansive deck, hot tub and above ground pool. Deep 2-car garage. Fenced back yard. A must see! Please view Property MLS Listing Sheet for details.

Owner Enhancements
Numerous upgrades in the home and lot completed by the current owners. Please view 3821Hillshire OwnerEnhancements for details.

Exclusively marketed by
Kenneth Bargers, REALTOR® Lic 318311
Pilkerton Realtors Lic 256352
(615) 512-9836 cellular
(615) 371-2474 office
kb@bargers-solutions.com email
http://www.bargers-solutions.com web
2 Cadillac Drive, Brentwood TN 37027 office

Mortgage Rates Post First Decline of 2018

Mortgage Rates Post First Decline of 2018
Freddie Mac   article by Daily Real Estate News | March 16, 2018

Following nine consecutive weeks of increases, borrowers finally got some relief this week with mortgage rates. The 30-year fixed-rate mortgage posted its first week-over-week decrease of 2018.

“Tuesday’s Consumer Price Index report indicated inflation may be cooling down; headline consumer price inflation was 2.2 percent year over year in February,” says Len Kiefer, Freddie Mac’s deputy chief economist. “Following this news, the 10-year Treasury fell slightly. Mortgage rates followed Treasurys and ended a nine-week surge. The U.S. weekly average 30-year fixed mortgage rate fell 2 basis points to 4.44 percent in this week’s survey, its first decline this year.”

Freddie Mac reported the following national averages with mortgage rates for the week ending March 15:

  • 30-year fixed-rate mortgages: averaged 4.44 percent, with an average 0.5 point, dropping from last week’s 4.46 percent average. Last year at this time, 30-year rates averaged 4.30 percent.
  • 15-year fixed-rate mortgages: averaged 3.90 percent, with an average 0.5 point, dropping from last week’s 3.94 percent average. A year ago, 15-year rates averaged 3.50 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.67 percent, with an average 0.4 point, increasing from last week’s 3.63 percent average. A year ago, 5-year ARMs averaged 3.28 percent.

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Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 031618