Mortgages under 5% are back in "bloom"

NEW YORK (CNNMoney.com) -- The possibility of securing a mortgage rate below 5% has greatly improved in recent weeks, in a positive sign for would-be home buyers.

Home mortgage rates fell for the sixth straight week, according to two key measures, with one of them pointing to a sub-5% rate for the 30-year fixed loan for the second week in a row.

Freddie Mac's (FRE, Fortune 500) weekly report said the 30-year rate slipped to 4.87% for the week ended Thursday, the lowest since May. According to the mortgage backer, last week's rates stood at 4.94%.

Mortgage tracker Bankrate.com said the average 30-year fixed loan slipped to 5.22% from 5.25% the previous week. The 15-year fixed rate also fell, Bankrate said, to 4.6% from 4.64% the week before.

The 30-year rate is influenced by the benchmark 10-year note's yield, which moves in the opposite direction of its price. Treasury prices have risen over the past week as $78 billion worth of auctions received above-average demand.

"Another disappointing employment report had investors questioning the strength and sustainability of the economic rebound," the Bankrate report said. "The resulting uncertainty drove investors into the safety of government and mortgage-backed bonds."

"Not even a substantial auction of government debt has been enough to derail the streak of declining mortgage rates," the Bankrate report said.

Rates are returning to levels not seen since the spring when, in an effort to cap mortgage rates, the Federal Reserve began a campaign to buy back $300 billion in Treasurys. The Fed hoped that it would spark demand and keep yields -- and therefore, mortgage rates -- in check.

Mortgage rates fell as refinancings abounded. But those benefits seemed to wear off, as rates started on a tear in the summer. By June, the benchmark 10-year bond's yield had increased steadily to hover around 4%.

Now the central bank has less than $15 billion left to spend on its buyback program, which led some investors to worry that yields would soar again. So far, that's not the case.

On Wednesday, reports said Democratic congressional leaders were working to extend a $8,000 tax credit for first-time home buyers past the Nov. 30 expiration date and could even make it available to current homeowners who buy a new house.

Homeowners have received a boost from both the tax credit and the lower rates -- last year, the average 30-year fixed mortgage rate was 6.2%, according to Bankrate.

To translate the difference in mortgage rate into dollars, consider a $200,000 loan. At last year's rate of 6.2%, the monthly payment would be $1,224.94, or $124 higher than the monthly payment at the current rate.

The low rates helped mortgage applications surge by 16.4% last week, according to a separate report.

Our newest lising in Malaga, NJ

Great mortgage news!!!

Mortgages are becoming easier to obtain...

In some areas of the country, borrowers with good credit are able to borrow up to 95% of the purchase price. This is a considerable amount more than what was allowed only a few short months ago.

Most of the country has home prices and values stabilizing, which means standards are relaxing.
This is a sign of great things to come for 2010.
Happy Holidays everyone!

You don't have to be a millionaire to buy a home!

More than 70% of homes that were sold in the third quarter were deemed affordable! Now is the time to buy!
The Great Recession has ravaged savings and boosted unemployment rates, forcing people to become more conservative with their cash. It has also made homes a lot more affordable - at least for those people still working.
The typical American family, making the nation's median income of $64,000 a year, could afford to buy 70/1% of the homes sold in the United States during the third quarter, according to a report from the National Association of Home Builders (NAHB) and Wells Fargo (WFC, Fortune 500).
That's down slightly from the previous quarter, when 72.3% were considered affordable, but still way p from the third quarter of 2008, when only 56/1% of the homes qualified. The NAHB judges a home to be affordable if a family making the metro area's median income could buy it if they devote no more than 28% of their gross pay toward housing costs.
The affordability pushed many buyers into the market last quarter. Plus, they wanted to take advantage of the $8,000 homebuyer's tax credit that was scheduled to expire on Nov 30.
Those that procrastinated, however, got lucky: The credit was recently extended and expanded to include more buyers.
"At a time when housing is at its most affordable, we applaud the recent actions taken by COngress and President Obama to stimulate housing by extending the federal tax credit beyond its November 30th deadline and expanding to a wider group of eligible home buyers" said NAHB Chairman Joe Robson, a home builder from Tulsa, OK.
"With interest rates now lower than last quarter, the tax credit will encourage even more home buyers to enter the market and help stabilize housing and the economy by creating new jobs, stimulating home sales, reducing foreclosures, cutting excess inventories and stabilizing home prices."

Extremes of affordability
All real estate is local, of course; it doesn't matter much to someone buying in Peoria what a home sells for in Pennsauken. The fact is, though, that housing markets across much of the nation have been and remain quite affordable for most working households.
In Cherry Hill, NJ the median household income is $81,000 a year. Figuring conservatively that no more than 28% of household income should go to pay for housing expenses, buyers could afford a house costing well over $300,000.

One man's meat...
What's good for buyers is pure poison for sellers, who are the big losers as affordability improves. Prices have fallen more than 30% from their peaks, according to the S&P/Case-Shiller Home Price Index and many people selling their homes these days are taking losses.
According the data from Zillow.com, the real estate information website, 27% of all sellers during the quarter received less than what they paid for their homes.
There are sure signs of the improvement of real estate as housing slowly begins to increase.

Feds commit to Holding down interest rates

The Federal Reserve said Wednesday that it would keep short-term key interest-rate target between 0 - 0.25 percent for an "extended period" - interpreted by many analysts to mean months.

Officials said in a statement after the close of its December meeting that the economy has "picked up," unemployment is "abating" and financial conditions have "become more supportive of economic growth".

The Feds also said Wednesday that it will complete its purchase of up to $1.25 trillion in mortgage-backed securities by March, a decision that could negatively affect the availability of mortgages.

View one of our featured listings: 535 W Main Street, Malaga, NJ

535 West Main Street, Malaga, NJ 08328
$195,000.00



24 hour info line!  1-888-838-3266 x504
 Pre-Foreclosure home in immaculate condition. Sellers need to sell now and have kept the home in tip-top condition for you. Hardwood floors welcome you in the living room and continue throughout all bedrooms. The large eat in kitchen features tiled flooring, beautiful wood cabinets and plenty of counterspace. The 1 car garage has been converted to additoinal living space. You can easily convert back or use as a FR. A spacious full finished basement with wood burning stover, outside walkout, and abundance of storage awaits you as well. The large corner lot provides you with almost .75 acres of country living. Your outdoor screened-in sunroom is great for your summer gatherings. Special financing is available with Smart Start program and the Gloucester County Grant!

REDUCE YOUR PROPERTY TAXES NOW!!

Many homeowners are finding their taxes to be very high. This is the BEST time to do something about them. Assessed values are surprisingly found to be higher than the actual value of the home. Typically, the assessed value should be lower. If you are finding your property taxes too high you can now get them reduced! Take advantage of this market now and get your taxes reduced! Find out more information HERE. Give us a call to see how to get started.

DealsInNJ Sales Team
Cheryl Dare & Dan Mauz
Keller Williams Realty
856-685-1633

Sellers Caputuring Buyers In the Winter Months

Attention Sellers: More Buyers Expected

The new tax credit – coupled with low mortgage rates and the supply of affordably priced homes on the market – may give many people who had been ambivalent of buying that extra nudge to step into the market. And in contrast to the first-time home buyer credit, the new $6,500 credit is available to a larger part of the population, with higher incomes.

This is “a gift of $6,500” that could help cover closing costs or renovations. Over the next couple of months we suspect we’ll get a lot more people – who were in no hurry to buy before – to make a move a little earlier.


The Slow Months Won’t Be As Slow
The renewed tax credit is obviously good news for buyers, but it’s even better for sellers.

That’s because the real estate market is headed into what is traditionally the slowest months for real estate sales – October to April. Typically, sellers are advised that a home on the market in that time will probably get the least attention from buyers and attract lower offers than in busier periods. But the credit should renew interest in the market during those typically slow months -- and compel sellers to take advantage of any influx of buyers. Waiting for the Spring to list your home will be too late for sellers in this market.

Cheryl Daigle & Daniel Mauz
DealsInNJ Sales Team
Keller Williams Realty
Ofc: 856-321-1212

TAX CREDIT EXTENDED!!!!!!!!!

Well here it is...what everyone has been asking me about and wondering if this day would ever come! For first-time homebuyers it sure has....AND now for move-up buyers as well! Thats right...for anyone who has owned their home for 5years you are eligable for a $6,500 credit! Take a look at this article from Philly.com!
Email us with any additional questions to see if you qualify.

Extending the $8,000 Tax Credit?

Find out what congress is saying about the impact of extending the $8,000 tax credit will have on our economy. The government has already paid out 2x as much as they expected this year for this credit. Many are in hopes that it will be extended once again and raised to the originally proposed $15,000 in order to help those move-up buyers and not just first-time homebuyers.

Obviously, the credit is keeping us Realtors very busy but what are your thoughts?

Team DealsInNJ

Keller Williams Realty
856-321-1212

Ever Wonder Why Realtors Don't Quote Square Footage?

I just had this EXACT question last night from a buyer, "Why is the square footage not listed in the MLS?"
The article below featuring a lawsuit in Oklahoma will tell you exactly why!!

Although many buyers like to rely on square footage to compare potential homes and prices; we find as Realtors that we put ourselves in tremendous risk when doing so. Any possibly inaccurate information we provide online about a property can put us as well as our brokers in the position to be sued.
I find myself conflicted on topics like this. We as Realtors must abide by a strict Code of Ethics. If square footage is included in the MLS from a deemed reliable source, like in this case where it was obtained from the local tax assessor, then the buyer and sellers best interest were at hand. With any home purchase or sale it is the buyer's responsibility to complete their due diligence and make sure they are working with a Realtor that is doing the same for them.

Any thoughts from you folks out there?
We would love to hear from you.

ARTICLE:
Lawsuit over Square Footage Proceeds


Oklahoma’s highest court has considered whether to affirm judgment in favor of a real estate broker and seller in a dispute over a home’s square footage.

Michael Presley (“Seller”) listed his home for sale with his mother, Linda Presley (“Salesperson”) of Century 21 Bob Crothers Realty (“Brokerage”). Richard and Dana Bowman (“Buyers”) made an offer to purchase the home, and the parties agreed upon a $145,000 purchase price. The Brokerage listed the property’s size as 2890 square feet in the MLS. The Brokerage stated that it had obtained this information from the local tax assessor’s office. The Buyers claimed their purchase was motivated by their desire to acquire a larger home and they had based their offer for the property was based on the property’s listed square footage.

Following the closing, the Buyers received an appraisal report listing the property’s actual size as 2187 square feet. The Buyers later obtained an earlier appraisal made at the time Seller purchased the property also listing the square footage as 2187. The Buyers filed a lawsuit against the Salesperson, Brokerage, and the Seller for fraud, breach of contract, and also alleged violations of the state’s license laws against the Broker and the Salesperson. The lower courts ruled in favor of the Salesperson, Brokerage, and the Seller, and the Buyers appealed.

The Supreme Court of the State of Oklahoma reversed the lower courts and ruled that there were issues of fact that needed to resolved by a jury. The lower courts had found that the Buyers could not claim fraud because the inaccurate square footage information had not harmed them, as the appraisal had also valued the property at more than $145,000 and so the Buyers did not have any damages. .

Next, the court considered whether the Brokerage and the Salesperson had violated the Oklahoma license laws by misrepresenting the size of the home. The Brokerage and the Salesperson argued that they had relied on the information provided by the county assessor’s office and also there was a disclaimer in the MLS stating that “this information is deemed reliable, but not guaranteed”. The court found that the state’s license laws prevented “substantial misrepresentations” and required licensees to “exercise reasonable skill” in performance of duties. Committing fraud while performing brokerage duties would constitute a breach of the state’s license laws.

The court sent the case back to the trial court for further proceedings.

Bowman v. Presley, 212 P.3d 1210 (Okla. 2009).

Team DealsInNJ

Cheryl Daigle & Daniel Mauz

Keller Williams Realty

856-321-1212

For Sale: 5BR/3BA Single Family House in Buena, NJ, $205,000

For Sale: 5BR/3BA Single Family House in Buena, NJ, $205,000

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Better to Buy or Rent in this "Perfect Storm?"

With housing prices down significantly in many parts of the country and interest rates low, it may be an affordable time for twentysomethings to buy that first home.

 Kimberly Walsh, a 27-year-old Human Resource Representative in Camden County, NJ., purchased her first home in August. She were able to capitalize on what we call a "perfect storm" -- job stability, a desire to settle down, a surge in home foreclosures and the $8,000 tax credit for first-time buyers. Kim felt her buying experience in this market gave her "a lot of options. There was always something new to choose from, and I found the perfect one."

Still, the move was not without its concerns. "Would I be able to afford this home comfortably?Do I have enough for a down payment? Do I have enough for moving? It's really nerve-racking when you're first doing it," said Ms. Walsh..

Here are some questions to consider when deciding if buying or renting is the right choice for you:


1. How long do you plan to stay in your home? "There are high transaction costs associated with buying and selling" a house. Home buyers should plan to stay put for at least four to five years to make it worth their investment.

2. Can you handle the monthly expense? While a monthly mortgage payment may be comparable in some cases to a monthly rent, there are other expenses to consider. To help with this a buyer consultation with your realtor and meeting with a reliable Mortgage Representative is critical. Knowing your fees upfront will relieve a lot of worries down the road.


3. To get a feel for the financial burden you'll be taking on -- and to see if you can handle it -- "practice" making payments. Each month, set aside projected mortgage and property-tax payments, maintenance costs, utilities and any other home-related expenses into a separate savings account.

4. What's the price-to-rent ratio? Home prices have come down significantly in some areas of the country, but "nobody knows what tomorrow's going to bring in the housing market".

To determine whether it makes more financial sense to buy or rent in your area, compare home sales prices with the cost of renting a similar place.


5. What is your job and relationship status? Twentysomethings are still getting a grasp on their futures and a constantly changing lifestyle might require the flexibility of renting. But "if your career stability is strong, you are comfortable doing what you're doing … and you are committed in some form to your lifestyle, buying a home becomes a more attractive option."

Are you ready to take advantage of the "perfect-storm?"

Cheryl Daigle & Daniel Mauz
DealsInNJ.com

Keller Williams Realty Ranked #1 In Customer Satisfaction

Keller Williams ranked first among home buyers in the annual J.D Power and Associates 2009 Home Buyer/Seller study. The study measures customer satisfaction with the largest national real estate companies. The most significant factor is the buyer/seller experience with the practitioner.

Other factors include overall experience with the office and satisfaction with special services offered, like referrals to inspectors and lawyers. Home sellers also rate marketing. The 2009 Home Buyer/Seller Study includes more than 3,100 evaluations from 2,801 respondents who bought or sold a home between April 2007 and June 2008.

Among the related findings:

Home sellers report that, on average, 3.2 open houses were conducted for their property in 2009, compared with 4.5 in 2008.


Approximately 64 percent of home sellers used a Web site listing to market their home in 2009, up from 61 percent in 2008.

Here are the home buyer rankings on a 1,000-point scale. (The home buyer average score was 791.)

1 – Keller Williams, 806
2 – Coldwell Banker,
3 – 801 RE/MAX, 798
4 – Century 21, 795
5 - Prudential, 781
6 - ERA, 744
7 - GMAC, 731

Here are the home seller rankings on a 1,000-point scale. (The home seller average score was 786.)
1 – Coldwell Banker, 815
2 – Keller Williams, 801
3 – RE/MAX, 784
4 – Century 21, 770
5 – Prudential, 753


(NOTE: ERA and GMAC were included in the study but not ranked due to a small sample size.) Source: J.D. Power and Associates (07/30/2009)