Turned down for refinancing?

Pending Home Sales Much Stronger than Expected

The National Association of Realtors (NAR) reported that July Pending Home Sales increased by 3.3%, the consensus estimates were projecting a much smaller gain of only 0.6%. Pending Home Sales are homes that have a sales contract in place and are in the process of closing but have not yet closed.

They have now risen four out of the last five months.

Lawrence Yun, NAR chief economist, says favorable housing conditions are behind July’s higher contract activity. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” he said.

“The increase in the number of new and existing homes for sale is creating less competition and is giving prospective buyers more time to review their options before submitting an offer.” Yun adds, “More importantly, steady job additions to the economy are helping family finances and giving them added confidence to enter the market.”

The two biggest head winds for the housing market have been job growth and inventories. Inventories were at historic lows for much of last year, so an increase of available homes on the market have helped sales to improve.

*All information furnished has been forwarded to us and is provided by thetbwsgroup only for informational purposes.

Tragedy in Ferguson

reposting this letter:

The Human Face of Tragedy
By Beth Braznell, 2014 President, St. Louis Association of REALTORS®

Our community has been rocked the last two weeks by the events in Ferguson. And make no mistake—this is a regional issue, not one we can confine to a few blocks in a northern suburb.

I went to Ferguson on August 19 to have lunch and make some purchases. The business community there is struggling. Jobs and livelihoods are at stake. I went not to take a political or social position, but to show support for the community. The repercussions of the violence in those few blocks are huge, and we will be feeling them for decades to come. Questions of justice, blame,
and truth will take years to sort out. My immediate concern is the effects on the people who live and work in the area.

The people in the surrounding residential areas have little access to food, prescription drugs, and other necessities unless they leave their neighborhood as the businesses along West Florissant are closed. Continuing demonstrations and protests are blocking streets and sidewalks.

Public transportation, on which many depend, is at a standstill. Many are afraid to go far from home, fearing that their homes may be damaged or violated. Some whose income depends on the businesses in their community are without jobs.Home healthcare workers are afraid to visit clients in the area, so vulnerable people are without the services they desperately need.

Church and community groups are working hard to fill the needs, but they need our help. The St. Louis Association of REALTORS® is collecting non-perishable food (in non-breakable containers), disposable diapers, pet food, cleaning items, personal care items, and school supplies at our
office to be distributed through churches and community assistance groups.

Donations may be dropped off:
Monday through Friday
8:30 a.m. to 5 p.m.
12777 Olive Blvd.
St. Louis, MO 63141

Tragedy invites opportunism. In the wake of highly publicized events come scammers, con artists, and fraudulent contractors seeking to take advantage of fear and uncertainty. Homeowners should be wary of people who urge them to sell now to avoid potential loss of equity. These people prey on ignorance, panic and fear, offering to take your home off your hands before its value plummets.

There will be long-term consequences. Already, some lenders are reevaluating transactions in progress. Insurance companies may raise their rates for vehicle and homeowner insurance. Property values may fall. The school districts will have more trouble meeting budgets. Businesses
will leave, taking jobs and opportunities with them.

We Midwesterners are strong, resilient, and generous. The reporters will go away, the boards covering many buildings along West Florissant will come down, and the hard work of recovery will begin on so many fronts. It has to be a regional recovery, for even if you don’t live in Ferguson, you are affected by the damage done there. Banks, insurance companies and other service providers will reevaluate their commitment to the
St. Louis area, assessing their risks. Potential new corporate citizens will think twice about the stability of our region. Housing and commercial opportunities may pass us by.

The community of Ferguson is rich and vibrant. Regardless of the events that took place there are people struggling to get to work, educate their children, and provide a decent place for their families to live. Let’s not let them fall between the cracks as we struggle with the mega issues of
social injustice.

Mortgage Rate Trends This Week

How Rates Move: Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market.  This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events.  When MBS pricing goes up, mortgage rates or pricing generally goes down.  When they fall, mortgage pricing goes up.  Tracking these securities real-time is critical.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours. Rates Currently Trending: Neutral Rates last week improved slightly, as reported by Sigma Research. The improvment last week for the MBS market was +38 basis points, which may mean a slight improvement in mortgage pricing. This Week's Rate Forecast: Neutral According to Sigma Research, the market should be relatively unchanged until Wednesday when Janet Yellen speaks.  However, we are not expecting anything too dramatic from her.  Thursday's June unemployment report could be a market mover as well.  We have not changed the forecast from neutral due to the continued tight range in the market. This Week's Potential Volatility: AVERAGE Sigma Research says that there're a lot of market moving reports coming out this week that could cause higher volatility toward the end of the week.  The big report is the unemployment rate on Thursday and this could finish the week off going into the long weekend with big swings in the market.  Bottom Line: If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

Existing Home Sales and Prices Jump

The National Association of Realtors reported today that May sales of homes that have been previously occupied (the largest segment of homes) jumped 4.9% from April. Existing Home Sales came in at an annualized rate of 4.89 million units which handily beat the market expectations of 4.73 million units. The median price rose to $213,400 which is a 5.1% increase over the past year (May 2013 to May 2014). The reason for the spike in sales? Is it interest rates? Nope, its inventory. Home Sales had been suppressed even while fixed mortgage rates hit their lowest levels for 2014 due to a very tight supply of homes available for sale. Since home prices have been increasing at a moderate pace, many homes that were "under water" are now back into positive equity and these homeowners are now finally able to put their homes on the market.

National Housing Trend Report

The realtor.com National Housing Trend Report for April 2014 shows nationally, the number of single-family homes for sale and their prices continue to rise, revealing a healthier real estate marketplace than a year ago and strong seller confidence.

Data from realtor.com reveals April home inventories are up a robust 14.2 percent compared with April 2013.

 Median list price rose by 6.5 percent to $207,500 compared to last year. Median age of inventory is 86 days which is a 6.2 percent increase compared to a year ago.

The combination of median list price rising above $200,000 and a double-digit home inventory increase is an indication that the marketplace is becoming more balanced.

Is Your Home in the Summer Spirit?

Is Your Home in the Summer Spirit?