Government Shutdown affecting mortgage rates

                       

Mortgage Rate Trend Index

Only 16% of mortgage experts polled this week expect rates to rise over the short term. Citing the current federal shutdown and debt ceiling debate, 42% predict further decreases and the same number (42%) expect no change.

 

 Average U.S. rates on fixed mortgages fell for the third straight week in three months, as a decline in consumer confidence and the government shutdown forced lower rates.

The average rate on the 30-year loan dropped to 4.22 percent.

 

Mortgage Interest Rates drop again

Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow Mortgage Marketplace at 4.17 percent, down from 4.38 percent at this same time last week.

The 30-year fixed mortgage rates fell sharply Wednesday to 4.24 percent and remained relatively stable for the majority of the week before dropping to the current rate this morning. In just two weeks, 30-year fixed mortgage rates have dropped a total of 32 basis points.

Economists say housing market is in a recovery

Housing has experienced an incredible recovery. Though still far from the elevated levels of 2006, the S&P Case-Shiller Home Price Index has increased by 8 percent over the past year, and the S&P Homebuilding sector has enjoyed nearly triple the gains of the S&P 500 over the past year.
But is this growth organic, or is it simply a result of the artificially low interest rates fostered by the Federal Reserve's quantitative easing program?
"The housing recovery we have seen is not, in fact, a QE bubble," CIBC World Markets chief economist Avery Shenfeld told CNBC's "Futures Now."
This is not merely an academic question. As traders hold their breath for the Fed to begin tapering its asset purchases, the question of whether housing can continue to grow without the Fed has become critical.
(Read More: Gradual Rise in Rates Won't Stop Housing Recovery: Lennar)
Shenfeld believes that housing growth will not merely continue—it will accelerate, even if mortgage rates rise due to a Fed exit.
"Mortgage availability actually remains very, very tight," Shenfeld said. "I think that as the mortgage market recovers, which it will with recovering consumer credit, we'll get more support from mortgages for the housing rally in 2014, even if mortgage rates are in fact higher than they have been—because mortgage availability will be that much better."
(Read More: Another Housing Market Bubble Brewing)
After all, mortgage rates are so low that a move higher should not do much damage, the economist said.
"Remember that today, we're sitting on 30-year mortgage rates that are under 4 percent," Shenfeld noted. "Even if we push those rates up another 50, 60 basis points, we're into the mid-4 percent range on a 30-year mortgage. Remember that in the last cycle, anything under 6 percent was a screaming bargain."
(Read More: Best ETFs to Play Housing Boom)

                      

Eric Audras | Onoky | Getty Images

Indeed, Shenfeld thinks that housing's growth will be great news for the economy—and the stock market—as a whole.
Looking at the stock market, "you've got homebuilders, you've got lumber producers, you have the people who sell the furniture and appliances to go into those new homes, or even into the turnaround of existing homes. I think that's a big part of the story," he said.
Shenfeld added: "I think when it comes to economic growth right now, there's no place like homebuilding."

_ By CNBC's Alex Rosenberg. Follow him on Twitter: @LilRosenberg
Watch "Futures Now" Tuesdays & Thursdays 1 p.m. ET exclusively on FuturesNow.CNBC.com!

Marco Island Real Estate Sales Statistics for April 2013

Marco Island Real Estate Sales Statistics - April 2013

                         Year 2013   vs   2012

Active Listings

• Single Family      352   371
• Condominium      492   609
• Lots                     256   310                           

Pending Listings

• Single Family      72   54
• Condominium    100   74  
• Lots                    42   18       

Closed Sales

• Single Family      49   50
• Condominium     85   60
• Lots                     23   18          

Average Sales Price

• Single Family    $814,367    $685,628
• Condominium    $574,744   $424,983
• Lots                   $475,543   $296,818

For more information regarding Marco Island Real Estate, please call me at 239-404-7471.

March home prices rise 10.5%

CoreLogic: March home prices rise 10.5% year over year

IRVINE, Calif. – May 7, 2013 – The March CoreLogic HPI (Home Price Index) report released today finds that prices nationwide increased 10.5 percent year-over-year in March – the biggest yearly increase since March 2006, and the 13th consecutive monthly increase in home prices nationally.

On a month-over-month basis home prices increased 1.9 percent in March.

CoreLogic breaks its home sales statistics into two categories: Sales prices that include distressed home sales, and sales prices after backing out distressed sales. Distressed sales include short sales and real estate owned (REO) transactions.

In Florida, home sales, including distressed, rose 8 percent year to year and 1.2 percent month to month. Compared to the state’s high point for home sale prices in September 2006, home prices are down 42.8 percent.

With distressed sales backed out of the calculation, Florida home prices rose 10.1 percent year to year, and 2 percent month to month. That’s slightly lower than the national non-distressed home price increases of 10.7 percent year to year, and 2.4 percent month to month.

According to CoreLogic’s analysis of pending home sales, it predicts prices will rise in April 9.6 percent year to year. Excluding distressed sales from the numbers, it predicts prices will rise 12 percent year to year and 2.7 percent month to month. Pending prices are based on Multiple Listing Service (MLS) data.

“For the first time since March 2006, both the overall index and the index that excludes distressed sales are above 10 percent year over year,” says Dr. Mark Fleming, chief economist for CoreLogic. “The pace of appreciation has been accelerating throughout 2012 and so far in 2013.”

“Much of the price increases … are the result of rising demand among investors and homebuyers for a still-limited supply of homes for sale,” adds Anand Nallathambi, president and CEO of CoreLogic.

Real Estate Booming again on Marco Island

Single family home inventory declined 14 percent in January compared to last year at the same time. Condo inventory was down 21% and lots were down 20%. 

New construction has taken a turn and according to the city's planning and zoning department, home builders pulled 74 permits for new construction and 28 permits for demolitions last year.  That is more than double the permitting activity for both in 2011. 

Marco island Real Estate Sales Statistics - March 2013

Marco Island Real Estate Sales Statistics - March 2013

                         Year 2013   vs   2012

Active Listings

• Single Family    366   383  
• Condominium    522   639
• Lots                 271   328                 

Pending Listings

• Single Family     65   65
• Condominium     83   75 
• Lots                   30   24       

Closed Sales

• Single Family     38   41
• Condominium    40   54
• Lots                 14   20              

Average Sales Price

• Single Family   $797,614   $697,924
• Condominium    $413,056   $535,389
• Lots                 $566,839   $269,025

For more information regarding Marco Island Real Estate, please call me at 239-404-7471.