2012 off to a strong start

Mortgage applications for the week ending January 13 rose 23.1%. Refinancing applications increased 26.4%. Purchase volume rose 10.3%.

The National Association of Home Builders/Wells Fargo monthly housing market index rose four points in January, it was the highest level since June 2007.

Existing home sales rose 5% in December to a seasonally adjusted annual rate of 4.61 million units from a downwardly revised 4.39 million units in November. The inventory of unsold homes on the market decreased to 2.38 million, a 6.2-month supply at the current sales pace, down from a 7.2-month supply in November.

Initial claims for unemployment benefits fell by 50,000 to 352,000 for the week ending January 14. It was the lowest level since April 2008.

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Prudential Real Estate, Southern California

Mortgage, Title, Escrow, Insurance, Home Warranty, Relocation

Fun facts…

Buyers who recently purchased a home in Southern California with a mortgage found their payments lower – $1,084, down from $1,101 in August and $1,177 in September 2010. Record low interest rates make home buying conditions even more attractive.

Housing sales for 2011 are on track to parallel the volume achieved in 2010, when half the year’s sales were boosted by federal and state incentives. In fact, unsold inventories are at 5.1 months on hand… in many price ranges (first time buyers), inventory is 3 months or less.

Many investors are snapping up homes without paying for a mortgage – a whopping 59% of non-occupying home buyers paid cash for homes in September.

By any measure, it’s a great time to buy a home, especially in Southern California.

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Prudential Real Estate, Southern California

Mortgage, Title, Escrow, Insurance, Home Warranty, Relocation

Home Owners’ Monthly Mortgage Down About 40%

Improving housing affordability mixed with low mortgage rates means that home owners are paying a lot less for their monthly mortgage payment than they did just a few years ago. In fact, they’re paying nearly 40 percent less on their monthly mortgage payment than home owners paid in 2006. 

According to Fiserv, the monthly mortgage payment for a median-priced single-family home today is $700 — a drop of close 40 percent from 2006, when it was $1,140 . 

“Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates,” David Stiff, chief economist at Fiserv, said in a statement. “Nationally, purchase mortgage payments now account for only 13 percent of monthly median family income, the lowest percentage on record (since 1971), and compared to 23 percent in the first quarter of 2006.”

Source: “Monthly Mortgage Payment Almost 40% Cheaper Than 2006,” HousingWire (Nov. 9, 2011) and Fiserv

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Prudential Real Estate, Southern California

Mortgage, Title, Escrow, Insurance, Home Warranty, Relocation