The Mortgage Bankers Association's seasonally adjusted index of home-loan application activity rose 6.6 percent to 666.5 for the week ended June 8. The index of purchase activity advanced 7.2 percent, while refinancing activity bumped up 5.6 percent.
Meanwhile, mortgage rates climbed to an 11-month high, with the average 30-year fixed mortgage rate hitting a 10-month high of 6.84 percent, according to Bankrate.com's weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.27 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing increased by a similar amount, to 6.53 percent. Adjustable rate mortgages were no different, with the average one-year ARM nosing higher to 6.19 percent and the 5/1 ARM bounding up to 6.67 percent.
Mortgage rates staged a significant increase over the past week, and it came in the absence of any major economic data. Instead, rising interest rates overseas proved to be the catalyst, even though the Federal Reserve stands pat here at home, Bankrate said. Higher interest rates and strong economic growth in other parts of the world could force Uncle Sam to pay higher yields to attract funds from foreign investors.
Fixed mortgage rates have increased more than one-half percentage point since mid-May. At the time, the average 30-year fixed mortgage rate was 6.32 percent, meaning that a $165,000 loan would have carried a monthly payment of $1,023.46. With the average 30-year fixed rate now 6.84 percent, the same loan originated today would carry a monthly payment of $1,080.08.
Fixed mortgage rates still remain the better refinancing alternative for adjustable rate borrowers facing sharp payment adjustments.
Source: Bankrate.com, Mortgage Bankers Association
Friday, June 15, 2007
Bank-Owned Properties Drive Down Prices
Bank-owned real estate isn’t being discounted, insists Patrick Carey, the executive in charge of foreclosed properties at Wells Fargo & Co.’s real estate division.
"The impact on the neighborhood and the community is vital with us," Carey says. "We don't want to flood a community with below-market-priced homes and cause further deterioration."
But research suggests that if that’s true, it may be temporary. Owners are likely to discount their asking prices 20 percent or more in communities where foreclosed homes make up 8 percent or more of sales, according to the study by Christopher Cagan, an economist with title insurer First American Corp.
In 1995, at the depth of the region's last housing downturn, lender-owned homes accounted for 7 percent of all sales — and sold at an average discount of 15 percent, the study found.
Source: Los Angeles Times, Annette Haddad (06/08/07)
"The impact on the neighborhood and the community is vital with us," Carey says. "We don't want to flood a community with below-market-priced homes and cause further deterioration."
But research suggests that if that’s true, it may be temporary. Owners are likely to discount their asking prices 20 percent or more in communities where foreclosed homes make up 8 percent or more of sales, according to the study by Christopher Cagan, an economist with title insurer First American Corp.
In 1995, at the depth of the region's last housing downturn, lender-owned homes accounted for 7 percent of all sales — and sold at an average discount of 15 percent, the study found.
Source: Los Angeles Times, Annette Haddad (06/08/07)
Foreclosure Properties Way Up
Foreclosures Hit 37-Year High
More home owners entered the foreclosure process during the first three months of 2007 than during the record-setting final quarter of 2006, according to a report by the Mortgage Bankers Association.
The MBA’s Chief Economist Doug Duncan predicts that delinquencies would continue to rise, peaking later this year. He also points out that the rate would have fallen if it weren’t for substantial increases in seven states.
"The percentage of loans in foreclosure would be well below the average of the last 10 years were it not for Ohio, Michigan, and Indiana," Duncan says. "And the rate of foreclosures started nationwide would have fallen were it not for the big jumps in California, Florida, Nevada, and Arizona. Those states have special circumstances that do not reflect what is happening in the rest of the country."
Seasonally adjusted, 0.58 percent of loans entered the foreclosure process last quarter, compared with 0.54 percent in the fourth quarter of 2006 and 0.41 percent in last year's first quarter. The rates for the past two quarters are the highest in the survey's 37-year history.
— REALTOR® Magazine Online and The Wall Street Journal, Damian Paletta and James R. Hagerty (06/15/07)
More home owners entered the foreclosure process during the first three months of 2007 than during the record-setting final quarter of 2006, according to a report by the Mortgage Bankers Association.
The MBA’s Chief Economist Doug Duncan predicts that delinquencies would continue to rise, peaking later this year. He also points out that the rate would have fallen if it weren’t for substantial increases in seven states.
"The percentage of loans in foreclosure would be well below the average of the last 10 years were it not for Ohio, Michigan, and Indiana," Duncan says. "And the rate of foreclosures started nationwide would have fallen were it not for the big jumps in California, Florida, Nevada, and Arizona. Those states have special circumstances that do not reflect what is happening in the rest of the country."
Seasonally adjusted, 0.58 percent of loans entered the foreclosure process last quarter, compared with 0.54 percent in the fourth quarter of 2006 and 0.41 percent in last year's first quarter. The rates for the past two quarters are the highest in the survey's 37-year history.
— REALTOR® Magazine Online and The Wall Street Journal, Damian Paletta and James R. Hagerty (06/15/07)
Monday, May 21, 2007
Uptown Theatre Rocks
After years of neglect, groups fighting over it
The historic Uptown Theatre, which has defied redevelopment attempts and slowed the resurgence of its neighborhood since closing in 1981, is suddenly a hot property.
Local concert promoter Jerry Mickelson and Block 37 developer Joseph Freed & Associates LLC are battling a group led by real estate investor David Husman over control of the foreclosed 1920s-era landmark, which also has attracted the attention of national concert promoters.
Mr. Mickelson, co-founder of Jam Productions Ltd., wants to restore the 4,500-seat theater, which once hosted Prince, the Grateful Dead and other big acts, as a concert venue. In a foreclosure sale, a buyer may have to pay upward of $3.5 million to satisfy the outstanding mortgages, liens and money the city is owed for repairs. Renovation would cost about $40 million.
The fight for control of the theater reflects the Uptown neighborhood's improving fortunes. That revival would gain momentum from a redevelopment of the cavernous 1925 movie palace, which sits prominently on Broadway, Uptown's main drag.
Click link for full story from Crain's Chicago Business
Friday, May 04, 2007
Rogers Park Condo Podcast
Looking for a two bedroom one bath newly remodelled TOP FLOOR close to transportation and park and near lake condo with in-unit laundry, hardwood floors throughout, stainless steel appliances and granite countertops place you can call home?
Phew.
You found it (possibly).
Here is a podcast of that place we would like you to consider.
While you are on the internet why don't you check out the interior pictures here.
Floor plans? Go no further than here!
Contact me for a private showing of this place you can call home.
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