Ok it's not really on Mars...it just looks like it is. This beautiful
minimalist design features an L-shaped footprint built around a flat
courtyard and swimming pool.
Home builder confidence held firm this month, according to the National Association of Home Builders' monthly Housing Market Index. September's reading of 13 equaled a 17-month low.
The HMI is on a 1-100 scale. A value of 50 or better indicates "favorable conditions" for home builders.
Broken down, the Housing Market Index is actually a weighted composite of 3 separate surveys which measures current single-family sales; projected single-family sales; and foot traffic of prospective buyers.
None of the 3 September surveys improved from August:
Builder confidence is lower in 2010 than at any point in recorded history.
For home buyers in San Diego , the drop in sentiment creates opportunity. With builders feeling "down", there's a greater likelihood for discounts and free upgrades. It can mean more house for your home buying money.
Plus, with the supply of both new and existing homes elevated, and foreclosures still hitting the market, conditions aren't soon likely to change.
Then, couple all that with all-time low mortgage rates and monthly housing payments look as affordable as ever.
If your plans call for buying a home in the early part of 2011, you may want to consider moving up your time frame. Today's market looks ripe for a good deal.
When homeowners suddenly have to relocate, they face the dilemma of
whether to sell their home or keep it as an investment property. The
recent nationwide drop in housing values complicates the decision.
Homeowners should weigh several factors before deciding whether to sell
now or rent and wait for the market to recover, experts say.
"Relocating homeowners need to shift their thinking and recognize that the
property is no longer their home; it is an investment," says Joseph
Himali, principal broker of Best Address Real Estate in Washington, D.C.
"The decision to sell or rent should depend on whether keeping the home is
the best use of their investment dollars."
What's your home worth?
For the 17th straight month, the Case-Shiller Index reports that home values are rising across the United States. As compared to June, July's prices were up by 4 percent.
However, despite the improvement, July's Case-Shiller Index showed weaker as compared to prior months.
As a spokesperson for Case-Shiller said, values "crept forward" in July. But not that it matters -- the Case-Shiller Index is a better tool for economists than it is for homeowners in Temecula. This is for 3 reasons.
First, the Case-Shiller Index is on a 60-day delay but real estate sales are based on prices today. A lot can change in 60 days, and it often does. Therefore, the Case-Shiller Index is a better snapshot of the former market than the current one.
Second, the Case-Shiller Index is geographically-limited. It tracks just 20 cities, ignoring some of the largest metropolitan areas in the country including Houston, Philadelphia, and San Jose. Smaller cities like Tampa are included.
And, lastly, national real estate data remains somewhat useless anyway. All real estate is local, rendering citywide statistics too broad to have any real meaning to an individual. To find out what's happening on a neighborhood-by-neighborhood level, you can't look to a national survey -- you have to look to a local real estate agent instead.
Existing Home Sales rebounded last month after a lackluster July. New Home Sales data, by contrast, did not.
After an upward revision to July's data, New Home Sales remained unchanged at 288,000 units in August. It marks the second-lowest number of units sold in a month since 1963, the year government started its record-keeping.
At the current pace of sales, the newly-built home inventory would be depleted in 8.6 months.
The August New Home Sales was weaker-than-expected, but both Wall Street investors and Main Street economists are shrugging it off. The numbers were foreshadowed by weakening housing figures from earlier this summer.
For example:
Together, these three data points suggest that the market for new homes will be soft through at least this month.
With New Home Sales fading and colder months ahead, it may be an opportune time for home buyers in Temecula to look at new construction. Builders are eager to move inventory and the cost of materials remains low.
Buying "new" may never be cheaper -- especially with mortgage rates as low as they are. The 0.750 percent drop in rates since January has shaved $188 off of a $200,000 mortgage's monthly cost. That's $2,250 per year in savings.
As home supplies dwindle and mortgage rates rise, finding "great deals" in new construction will undoubtedly get tougher. Take advantage of today's market conditions, combined with builder pessimism. It may be the right combination at the right time to get that new home for cheap.
Fatigue Cause No. 1: Not Enough Sleep
It may seem obvious but you could be getting too little sleep. That can
A kitchen is often a home's busiest room -- a meeting place for meals and conversation. It's also among the home's most grimy rooms. Bacteria, dirt and germs collect on floors, on countertops, and inside appliances.
In this 4-minute clip from NBC's The Today Show, you'll learn how to rid your kitchen of "nastiness". The featured fixes use nothing but basic household cleansers and elbow grease, and they include:
The segment also tackles why you should choose loofah over sponge, and how to catch fruit flies.
For as much time as you spend in your kitchen, it's best to keep it clean and sanitized.
The buck starts with all of us. We all can do our part by getting off our
couch and take a stand. Our Nation is in the hands of the future of our
children. Mark Zuckerberg is starting an education fund read more on the
following link:
Sales of existing homes in recovered in August, perhaps the result of a post-tax credit normalization.
As compared to July, Existing Home Sales rose 8 percent in August, buoyed by falling interest rates and slow-to-rise home prices. There's lot of "good deals" out there and home buyers in San Diego are taking advantage.
The housing gains are relative, however. August's total units sold barely crossed 4 million and still trails the average figures of the last few years by close to 1 million units.
Despite that, the August Existing Home Sales report can be considered a strong one. This is for several reasons:
And, perhaps most important to the housing market market, the number of available home resales dropped by almost one full month last month. At the current sales pace, the national inventory would be depleted in 11.6 months.
For home buyers, the data presents an interesting opportunity. With average mortgage rates rising from their best levels ever and home affordability cresting in places like Eastlake , this autumn may represent the turn-around point for the housing market nationwide.
If you're planning to move in early-2011, consider moving up your time frame.
The number of single-family Housing Starts rebounded in August, climbing 4 percent from July's 14-month low.
A "Housing Start" is defined as a home on which construction has started and the August increase represents 18,000 single-family units nationwide.
If you only read the headlines, however, you would think the data was stronger. This is because the Housing Starts data is actually a composite of 3 types of homes -- single-family, multi-family, and apartments -- but the press tends to lump them all three together.
As a sampling, here are a some headlines on the story:
Now, it's not that the news is wrong, per se, it's just not necessarily relevant. Few home buyers in Temecula are buying multi-family homes or entire apartment complexes. Most buy single-family and, for the first time since April, single-family starts are on the rise -- just not by as much as you'd believe from the papers.
Even still, we can't be entirely sure that the August Housing Starts data is accurate anyway.
A footnote in the Department of Commerce report shows that, although single-family starts are said to have increased 4 percent, the data's margin of error exceeds its actual measurement, meaning the data has "zero confidence".
In other words, starts may have dropped in August, but it's something we won't know for sure until revisions are made later this year.
Today, in its 7th meeting of the year, the Federal Open Market Committee voted 9-to-1 to leave the Fed Funds Rate unchanged.
The Fed Funds Rate remains at a historical low, within a Fed's target range of 0.000-0.250 percent.
In its press release, the FOMC said that the pace of economic recovery "has slowed" in recent months. Household spending is increasing but remains restrained by high levels of unemployment, falling home values, and restrictive credit.
For the second straight month, the Federal Reserve showed less economic optimism as compared to the prior year's worth of FOMC statements dating back to June 2009. However, the Fed still expects growth to be "modest in the near-term".
This outlook is consistent with recent research showing that the recession is over, and that growth has resumed -- albeit at a slower pace than what was originally expected.
The Fed also highlighted strengths in the economy:
As expected, the Fed re-affirmed its plan to hold the Fed Funds Rate near zero percent "for an extended period".
There were no surprises in the Fed’s statement so, as a result, the mortgage market's reaction to the release has been neutral. Mortgage rates in California are thus far unchanged this afternoon.
The FOMC’s next meeting is a 2-day affair scheduled for November 2-3, 2010.
The Federal Open Market Committee adjourns from its 6th scheduled meeting of the year today, and 7th overall.
Upon adjournment, Federal Reserve Chairman Ben Bernanke will release a formal statement to the market. In it, the Fed is expected to announce "no change" to the Fed Funds Rate.
Currently, the Fed Funds Rate is within a target range of 0.000-0.250 percent. It's been at this same level since December 2008.
Note that the Feds Funds Rate is not "a mortgage rate" -- nor is it a a consumer rate of any kind. The Fed Funds Rate is a rate that defines the cost of an overnight loan between banks. And, although the Fed Funds Rate has little direct consequence to everyday Encinitas homeowners, it is the basis for Prime Rate, the interest rate on which most consumer cards are based, plus many business loans, too.
Therefore, because the Fed Funds Rate won't change today, neither will credit card rates. Mortgage rates, however, are a different story. Mortgage rates should change today -- regardless of what the Fed does.
It's more about what the Fed says.
In its statement, the Federal Reserve will highlight strengths and weaknesses in the economy, and threats to growth over the next few quarters. Depending on how Wall Street interprets these remarks, mortgage rates may rise or fall.
If the Fed's comments signal better-than-expected growth, bond markets should lose and mortgage rates should rise. Conversely, if the Fed's comments signal worse-than-expected growth, mortgage rates should fall.
If you're actively shopping for a mortgage, it may be prudent to lock your rate ahead of the Fed's announcement today. The Fed adjourns at 2:15 PM ET. Call your loan officer to lock your rate.
The Fed meets 8 times annually.
If a home is an expression of personality, then these 10 homes say something unique about their owners.
Culled by Zillow, this list of one-of-a-kind properties make for excellent party conversation. There's the "round house", the geodesic dome, the firehouse home, and the earth-ship, among others.
Some highlights from the collection:
A few of the properties as listed by Zillow are for sale and most have accompanying pictures. Unfortunately, buyers of the homes should expect to pay cash because getting a mortgage for a unique home can be veritable challenge.
(Image courtesy: Zillow)
Is it better to rent a Temecula home, or to buy one? The answer may not be as clear-cut as you think. In this balanced, 3-minute joint interview from NBC's The Today Show, you'll hear the case for both sides.
From the pro-renting part of the talk, there's valid points about the economic impact of low credit scores and/or no cash for downpayment, and the ongoing, annual cost of home maintenance -- estimated at 2% of a home's value. Plus, renters have the ability to "follow a job" to a new town or region whereas a homeowner may be restricted, somewhat.
From the pro-purchase part, however, there's excellent points that were made, too:
The segment then closes with 5 of the best cities in which to rent, and 5 of the best cities in which to buy.
Whether buying or renting, don't try to go at it alone. There's lot of resources online, and an email to a local real estate or mortgage pro can set you in the right direction.
According to foreclosure-tracking firm RealtyTrac, the number of foreclosure filings climbed 4 percent in August from the month prior. A foreclosure filing is defined as default notice, scheduled auction, or bank repossession.
Despite the number of filings surpassing 300,000 for the 18th straight month, RealtyTrac's report shows some bright spots for housing.
In addition, each of the 10 leading metro areas for foreclosures posted year-over-year declines for the second month in a row.
But, perhaps, most important, is that mortgage lenders and servicers appear to be managing their REO more effectively, making properties available for sale at a measured pace as opposed to flooding markets with new homes. As noted by RealtyTrac, the probable reason is "to prevent further erosion of home prices".
For home sellers, it's a welcome development.
Foreclosures have had a hand in falling home values in California and across the country. And, although it's self-serving for banks to meter the release of homes under ownership, everyday homeowners benefit, too. Fewer homes on the market helps to provide a floor for Encinitas housing values.
If you have an interest in buying foreclosed homes, be sure to talk with a real estate agent first. The process of buying a home from a bank is different from buying from "a person". Having the help of a professional should work to your benefit.
The recent rise in mortgage rates was slowed this week after the government released its Retail Sales report for August.
Prior to Tuesday, mortgage rates had been spiking across California on the resurgent hope for U.S. economic recovery. The sentiment shift was rooted in reports including the Pending Home Sales Index and Initial Jobless Claims, both of which showed surprising strength last week.
August's Retail Sales, though, after removing motor vehicles, auto parts and gasoline sales, failed to maintain the momentum. Its figures were actually in-line with expectations -- it's just that expectations weren't all that high.
Wall Street now wonders whether the weak Back-to-School shopping season will trend forward into the holidays.
The doubt spells good news for mortgage rates and home affordability.
Because Retail Sales is tied to consumer spending and consumer spending accounts for two-thirds of the economy, a weak reading tends to drag down stock markets and pump up bonds, and when bonds are in demand, mortgage rates fall.
This is exactly what happened Tuesday. The soft Retail Sales data eased stock markets down, and generated new demand for mortgage bonds. This demand caused bond prices to rise, which, in turn, caused mortgage rates to fall.
Mortgage rates did not cut new lows this week, but they're very, very close.
With mortgage rates at historical lows, it's an excellent time to look at a refinance, or gauge what financing a new home would cost. Low rates like this can't last forever.
Economy class cabins is 30 to 32 inches on most United States airlines. With this newly designed seat the measurements could reduce the space
between rows to just 23 inches. This leaves no room for the smallest
person to have comfort.
Want a lower mortgage rate on your upcoming Temecula home buy? Think about moving up the closing date.
The reason is rooted in "rate locks", a bank's guarantee to honor a specific mortgage rate for a specific, finite period of time. Rate locks allow home buyers to reserve mortgage rates today even though their respective closings may be scheduled as far as a year into the future.
A rate lock is a contract. No matter what the "current market rate" is at the time of closing, the bank will honor the terms of the original rate lock.
It would be like making an agreement to buy Microsoft stock at a specific price 60 days from now. No matter what the price, you already know what you're paying for it.
In this sense, rate locks are predictions about the future and, meanwhile, as we all know, the future can be a challenge to forecast. Lenders know this, too, of course, so it's easy to understand why longer rate locks tend to be more expensive than shorter ones.
The longer the rate lock, the more risk to the bank.
To compensate for this "time risk", therefore, lenders typically step-up pricing for rate lock guarantees as lock period lengthen.
One percent of "extra cost" is defined as one percent of the borrowed amount.
Now, this incremental price chart is just a rough guideline; exact spreads vary from lender-to-lender. Overall, however, it's fairly close.
That's why it's important to manage your closing date vis-a-vis your mortgage rate. Closing in 30 days versus 31 can save you an eighth-percent in closing costs. Assuming a loan size of $200,000, that's $2,500 saved.
So, when negotiating a closing date on a contract, keep in mind the math of mortgage rate locks. The shorter its length, the more money you might save.
Supermarket aisles in the Encinitas area are filled with specialty cleansers -- some for the kitchen, some for the bathroom, some for the carpets. Loaded with chemicals, these cleansers can be tough on the environment and costly, too.
If you're in search of an alternative, consider white distilled vinegar. It's inexpensive, safe to store, and highly effective as a household cleanser.
White vinegar's strength comes from its acidity, roughly 8%. It's acidity kills most mold, germs, and bacteria, and can remove minerals deposits from coffee makers and glass surfaces.
Some uses for white distilled vinegar include:
White distilled vinegar is extremely versatile, but it can strip finish from counter-tops and floors if left to soak. Be sure to exercise care, therefore, when using vinegar at home.
MY GOD BLESS THE SOUL OF ALL THOSE THAT LOST THEIR LIVES. MY PRAYERS GO
OUT TO THE FAMILIES!!
When adjustable-rate mortgages are on the verge of adjusting, a common concern among homeowners is that their mortgage rates will adjust higher.
Well, this year, because of the math of how ARMs adjust, homeowners in San Diego and around the country are seeing that mortgage rates on ARMs can sometimes adjust lower, too.
Adjusting conforming mortgages are adjusting to as low as 3 percent.
As a quick review, here's the timeline for most conforming adjustable-rate mortgages:
The adjustments each year are based on a math formula that's included in the contract with your lender. It's surprisingly basic. Each year, your new, adjusted mortgage rate is equal to the sum of some constant -- usually 2.25 percent -- and some variable. The variable is most commonly equal to the 12-month LIBOR.
As a formula, the math looks like this:
(Adjusted Mortgage Rates) = (12-Month LIBOR) + (2.250 Percent)
LIBOR is an acronym standing for London Interbank Offered Rate. It's an interest rate at which banks borrow money from each other -- very similar to our Fed Funds Rate here in the United States. And also like our Fed Funds Rate, LIBOR has been low lately.
As a result, adjusting mortgage rates have been low, too.
In 2009, 5-year ARMs adjusted to 6 percent or higher. Today, ARMs are adjusting to 3.000%.
Based on the math, you may want to let your ARM adjust with the market year. Or, if you plan to keep your home long-term and have concerns about adjustments in 2011 and beyond, it may be a good time to open a new ARM. The same forces that are driving down LIBOR and helping to keep mortgage rates low overall, too.
Consider talking to your loan officer and making a plan. With mortgage rates as low as they've been in history, most homeowners have options. Just don't wait too long. LIBOR — and mortgage rates in general — are known to change quickly.
Buying a first home is an exciting time for many of us. That pride of home
ownership plus the freedom of decorating however we'd like is a liberating
feeling. Once you own a home, there's no more worrying about the landlord
and whether you can paint that ugly pink kitchen, hang new curtains, or
(gasp!) put nails in the walls.
The private-sector Case-Shiller Index reported home values up 5 percent nationwide in June. The government's own Home Price Index, however, reached a different conclusion.
According to the Federal Home Finance Agency, month-to-month home values fell 0.3 percent in June, and values are down by 1.7 percent from June 2009.
So, as a home buyer and/or homeowner in Encinitas , by which valuation model should you make your bets? Perhaps neither.
This is because both the Case-Shiller Index and the Home Price have inherent methodology flaws, the most glaring of which is their respective sample sets.
The Case-Shiller sample set, for example, comes from just 20 cities across the country -- and they're not even the 20 most populated cities. Together, the Case-Shiller cities represent just 9 percent of the overall U.S. population.
That's hardly representative of the housing stock overall.
By comparison, the Home Price Index tracks home sales everywhere -- every city in every state -- but it specifically excludes certain properties. The Home Price Index does not track sales of homes for which the financing comes from agencies other than Fannie Mae or Freddie Mac. This means that as FHA loans grow in popularity, the pool of Home Price Index-eligible homes is reducing.
The HPI ignores homes backed by "jumbo" loans, too.
Therefore, the "right" model for home values cannot come from national data at all -- it can only come locally. Neither Case-Shiller nor the government has the tools to get as granular as a neighborhood sranch. A real estate agent in the area does, however.
The best way to get a pulse for what's happening in markets right now is to talk to somebody with good data.
Just one week after reports of Existing Home Sales and New Home Sales plunging, the housing market is signaling that auturm may fare better than did summer.
The number of homes under contract to sell rose 5 percent in July.
The data comes from the July Pending Home Sales Index, as published by the National Association of Realtors®. By definition, a "pending home sales" is a home that is sold, but not yet closed.
Historically, 80% of such homes close within 60 days which makes the Pending Home Sales Index an excellent, forward-looking indicator for the real estate market.
Indeed, the nationwide drop in home sales this summer was foreshadowed by the Pending Home Sales report. The index dropped 30 percent in May. Then, two months later in July, it was shown that Existing Home Sales volume dropped 29 percent.
That's a strong correlation.
Now, to be fair, the July Pending Home Sales Index is still relatively low; the second-lowest on record and well below last year's numbers. But, the tick higher last month shows how housing may be stronger than than what the headlines report.
It appears that buyers in Encinitas took advantage of rising inventory, cheap financing, and stagnant prices, and pushed the market forward. We should expect similarly promising numbers when September's Existing Home Sales data is released.
Rule 1: Life is not fair - get used to it!
Rule 2: The world doesn't care about your self-esteem. The world will
There's plenty of reasons to want to change a showerhead in your head. Perhaps you're trying to fix a leak in the faucet; or, remodeling your bathroom; or, trying to conserve water via a low-flow showerhead.
Whatever the reason, changing a showerhead can be a basic do-it-yourself project. The tools aren't complicated and the job is a quick one.
In this 2-minute video from AOL, you'll learn:
If you get stuck, or just want to outsource, call a professional handyman to finish the job. Changing a showerhead should take less than a hour to complete.
On the first Friday of each month, the Bureau of Labor Statistics releases Non-Farm Payrolls data for the month prior.
The data is more commonly called "the jobs report" and it's a major factor in setting mortgage rates for residents of Navada and homeowners everywhere. Especially today, considering the economy.
This is because, although it's believed that the recession of 2009 is over, there's emerging talk of new recession starting.
Support for the argument is mixed:
In other words, the economy could go in either direction in the latter half of 2010 and the jobs market may be the key. More working Americans means more paychecks earned, more taxes paid, and more money spent; plus, the confidence to purchase a "big ticket" items such as a home.
Jobs growth can provide tremendous support for housing, too.
Today, though, jobs growth was "fair". According to the government, 54,000 jobs were lost in August, but that reflects the departure of 114,000 Census workers. The private sector (i.e. non-government jobs), by contrast, added 67,000.
In addition, net new jobs was revised higher for June and July by a total of 123,000. That's a good-sized number, too.
Right now, Wall Street is reacting with enthusiasm, bidding up stocks at the expense of bonds -- including mortgage-backed bonds. This is causing mortgage rates to rise. Rates should be higher by about 1/8 percent this morning.
Home affordability took a slight hit this week after the Federal Reserve's release of its August 10 meeting minutes.
The "Fed Minutes" is a lengthy, detailed recap of a Federal Open Market Committee meeting, not unlike the minutes published after a corporate conference, or condo association gathering. The Federal Reserve publishes its meeting minutes 3 weeks after a FOMC get-together.
The minutes are lengthy, too.
At 6,181 words, August's Fed Minutes is thick with data about the economy, its current threats, and its deeper strengths. The minutes also recount the conversations that, ultimately, shape our nation's monetary policy.
It's for this reason that mortgage rates are rising. Wall Street didn't see much from the Fed that warranted otherwise.
Among the Fed's observations from its minutes:
Now, none of this was considered "news", per se. If anything, investors were expecting for harsher words from the Fed; a bleaker outlook for the economy. And, because they didn't get it, monies moved to stocks and mortgage bonds lost.
That caused mortgage rates to rise.
The Fed meets 8 times annually. Its next meeting is scheduled for September 21, 2010. Until then, mortgage rates should remain low and home affordability should remain high. There will be ups-and-downs from day-to-day, but overall, the market is favorable.
According to the Standard & Poors Case-Shiller Index, home values rose 5 percent in June versus the month prior, and 4 percent from a year earlier. It's the 16th consecutive month in which Case-Shiller reported an increase in home values and the third straight month of outstanding results.
That said, homeowners and home buyers in Temecula would do well to temper Case-Shiller enthusiasm. The June figures are issued on 60-day delay and, over the last 60 days, housing data has been lackluster at best.
Stories like these highlight a key weakness of the Case-Shiller Index -- it's out of date as soon as it's published. Because of this, the Case-Shiller Index relevance to everyday Americans is muted. People don't buy homes in the "60 days ago" real estate market, after all.
June is ancient real estate history to buyers and sellers in Eastlake.
However, the Case-Shiller Index does have its place. As the most widely-followed, private-sector housing tracker, the index is used to help make policy decisions and to shape Wall Street's expectations of the economy. This means that a strong Case-Shiller reading can cause mortgage rates to rise, and a weak Case-Shiller reading can cause rates to fall.
Tuesday, mortgage rates fell.
