Tag Archives: Home Sales

Sales of previously owned homes surged 12.3 percent in December, according to the National Association of Realtors. Existing-home sales have increased five of the last six months and have now hit a seven-month high, at a seasonally adjusted annual rate of 5.28 million units. That's up from a rate of 4.70 million in November, but remains 2.9 percent below the 5.44 million pace in December 2009. Distressed homes accounted for 36 percent of December's sales.

The number of people submitting mortgage applications rose last week due to a surge in refinancings. It marked the third consecutive week that application volume overall has increased. During all three weeks, applications for refinancing have risen while new applications for home purchases have declined. Refinance apps have gained momentum as borrowers take advantage of lower rates, but MBA says it's unlikely home sales will pick up any time soon.

According to a report from RE/MAX of New England, home prices in some New England states increased in 2010 despite recent data by the S&P/Case-Shiller Home Price Indices that shows broad-based declines in home values. Rhode Island, which has the highest unemployment rate in New England at 11.6 percent and the fifth highest in the nation, showed average price increases in homes across the board. Massachusetts and Connecticut also posted notable increases in home prices.

The Federal Reserve published its latest edition of the popular Beige Book Wednesday. Based on information received from contacts in the field, the central bank says economic activity across the country ""continued to expand moderately"" during the last part of 2010 with steady improvements seen in labor markets. However, the real estate sector, and residential housing in particular, continues to be a significant hurdle for the economic recovery, with local housing markets characterized as ""sluggish.""

According to RealEstate Business Intelligence (RBI), a source of real estate data, analytics, and business intelligence for real estate professionals in the Mid-Atlantic, the Baltimore housing market continued to look bleak in December. Based on figures from RBI's newly launched pending home sales index, the average price of homes sold in the Baltimore area dropped 6.6 percent, from $283,269 at the end of 2009 to $264,500 by the end of 2010. At the same time, active listing inventory grew by 10 percent.

The number of mortgage applications filed by consumers rose last week as interest rates eased and more homeowners moved to refinance their home loans. According to data released by the Mortgage Bankers Association (MBA) Wednesday, total mortgage loan application volume increased 2.2 percent for the week ending January 7, 2011, when compared to the previous week. It marked the second week in a row that application volume has climbed as MBA's index hit its highest level in nearly a month.

The number of mortgage applications filed by consumers bounced up and down during the final weeks of 2010, dropping the week before the Christmas Day holiday and rising the week after. Market watchers warn that although a number of economic indicators have signaled improvement in recent weeks, the incremental boosts are doing little to lift the home financing market, which with mortgage rates steadily rising, looks to be situated for many more months of depressed activity.

Mortgage interest rates began to climb again last week, after falling the week prior for the first time in more than a month. Freddie Mac says the results of its latest survey reveal increasing mortgage rates for all loan products included in the study except the 1-year adjustable-rate mortgage (ARM). Rates across the board climbed higher in a separate study released by Bankrate. More than half of the industry experts surveyed by Bankrate believe mortgage rates will continue to rise.

The number of contracts signed for purchases of previously owned homes climbed again in November, according to data released by the National Association of Realtors (NAR) late last week. The organization's pending home sales index rose 3.5 percent based on contracts signed in November. That follows a record 10 percent jump recorded for the month of October and beat even the most modest market expectations. NAR describes the trend as indicative of ""a gradual recovery into 2011.""

Frank Nothaft, chief economist for Freddie Mac, says he expects long-term mortgage rates to hold below the 5 percent threshold throughout 2011, as key macroeconomic drivers provide a backdrop that supports a continued, albeit gradual, housing recovery. Turning to home prices, Nothaft says markets that have large inventories of for-sale homes and REO properties will continue to see home-value weakness in 2011, but he believes price indexes for the U.S. as a whole are close to bottoming out.