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Posts Tagged ‘home prices’

According to a just released Census Bureau report, a record number of 19.1 million homes stood empty during the first quarter of this year, and the number of vacant homes, which includes foreclosures, properties for sale and also vacation properties, jumped from a figure of 18.6 million the previous year.

The report lists a total of 4.2 million vacant homes for rent, and 4.9 million seasonal properties that were only used for a part of the year, and says that the number of people that own their own residences declined for the third straight quarter to 67.3%.

Foreclosures were included in a part of the Census Bureau, that also included vacation homes intended for year-round use, as well as homes that were unoccupied because they are under renovation, and there were 7.9 million such properties vacant in the first quarter, which is up from 7.5 million a year earlier.

What might seem odd however, is that the ‘percentage’ rate of all U.S. homes empty and for sale, known as the ‘vacancy rate’, actually fell to 2.7 percent in the first quarter, and the reason that it is thought to have fallen, is either because the number of homes on the market declined because they were sold, or because their owners gave up trying to market them, and according to National Association of Realtors, the inventory of homes on the market averaged 3.7 million in each of 2009′s first three months.

The world financial crisis, plus falling home prices seem to have pretty much destroyed homebuyer confidence, and the percentage of people who said they plan to buy a home in the next six months, dropped to a 26-year low in March, and the decline in real estate prices is expected to continue into 2010.

The Mortgage Bankers Association just announced that the share of mortgages in foreclosure rose to an all-time high of 3.3% in the fourth quarter, and added that delinquencies, or the percentage of home loans having payments which are thirty days or more overdue, increased to 7.88%, making it the highest number on record since 1972.

US fixed mortgage rates rise | Live Stock Trading News | Equities …

www.livetradingnews.com2/25/12

US fixed mortgage rates rise from historic lows US fixed mortgage rates this week increased from the previous week's record lows as the housing market.

30-Year Fixed Mortgage Rate Rises to Highest Rate in Four Weeks …

www.zillow.com2/21/12

Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 3.76 percent, up from.

The Federal Reserve Bank’s plan to buy mortgage-backed securities in order to drive down interest in the U.S. appears to be working, as fixed mortgage rates fell for a second consecutive week, and the number of mortgage applications rose, boosted by an increase in refinancing applications.

Freddie Mac reported that the rate for a 30-year fixed home loan fell to 4.80 percent from 4.82 percent a week earlier, whilst the 15-year fixed rate remained unchanged at 4.48 percent.

The central bank is attempting to drive down interest rates by cutting the supply of outstanding mortgage bonds, thereby boosting their price and lowering their yields, thus allowing banks to reduce their rates on new mortgages, whilst continuing to sell mortgage securities at a profit.

Celia Chen, who is the senior director of Moody’s, Economy.com commented, “The policy is working. Mortgage interest rates are falling to a record low, which will stimulate some buying of homes”.

The not so good news is that sales of previously owned U.S. homes fell in March, after climbing by the biggest amount in more than five years just one month earlier.

Purchases decreased by 3% to an annual rate of 4.57 million, which was lower than the 4.71 million which was forecast, and prices were down 12% from a year ago, with distressed properties accounting for about 50% of all sales.