Navy Fellas Realty Group

Real Estate, Residential sales and purchase

FHFA: Home Prices Rise 0.30 Percent in January

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FHFA Home Prices Rise 0.30 Percent in JanuaryThe Federal Housing Finance Agency (FHFA) reported that home prices rose by a seasonally-adjusted rate of 0.30 percent in January, and were 5.10 percent higher as compared to home prices in January 2014.

FHFA oversees Fannie Mae and Freddie Mac and its home price report is based on sales of homes financed by mortgages owned or backed by Fannie Mae and Freddie Mac.

Month- to- Month FHFA Home Prices Mixed

Month to month home price data was mixed for January. Home prices ranged from -0.40 percent in the Middle and South Atlantic census divisions to +2.30 percent in the East South Central census division.

Month-to month readings are considered more volatile than year-over-year home price readings. Year-over-year readings for all nine U.S. census divisions were positive and ranged from a 1.70 percent increase in the Middle Atlantic division to an increase of 8.20 percent in the Pacific division. This suggests that overall, home prices are gaining, but slowly.

Commerce Department: New Home Sales Hit 7-Year Peak

In an unrelated report, the Commerce Department reported that February sales of new homes reached a seven-year peak with 539,000 sales of new homes expected on a seasonally-adjusted annual basis. This was significantly higher than the expected reading of 455,000 new home sales and was also higher than the revised reading of 500,000 new home sales in January.

Analysts said that this positive reading may indicate a robust sales for the peak spring and summer home buying season. The reading for new home sales in February was nearly 25 percent higher than for February 2014.

In spite of this good news, analysts cautioned that the new home sales numbers are often volatile, and future revisions could result in lower sales figures for new homes.

With jobs increasing and mortgage rates remaining relatively low, more homebuyers may enter the market and boost home sales. Tight mortgage lending standards remain an obstacle for would-be buyers with less than stellar credit scores.

How Safe is Your Home from a Fire? Learn How to Run a Quick Fire Safety Assessment

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How Safe is Your Home from a Fire? Learn How to Run a Quick Fire Safety Assessment A fire can rage through your home at a moment’s notice, and it can cause a significant amount of damage in a very short period of time. Damage from the flames, intense heat, smoke and soot can cause tens of thousands of dollars or more in some cases, and a severe fire event can result in a total loss for the homeowner. More than that, a fire can create a serious health and safety risk for you and your loved ones inside the home. If you are concerned about how safe your home is from a fire, consider a few important points.

Do You Have Fire Extinguishers On All Floors?

When a small fire breaks out, you may only have a few seconds to respond. You simply do not have time to rush around the house in search of a fire extinguisher. Instead, you should know immediately where it is at and how to use it. More than that, you should have one available on all floors of your home. While you may want to reach for a fire extinguisher to put out a small flame, you should still yell for others in the home to vacate while you use the fire extinguisher.

Do You Have Smoke Alarms in Ideal Locations?

Fires can break out during all hours of the day and night. When you are awake, you may easily be able to smell smoke from a nearby room. However, when you are asleep or when the smoke is in a removed area of the home, it can be more difficult to observe the signs of a fire until it is too late. Placing a loud smoke alarm in all bedrooms in your home is a wise idea. You will also need one in living areas of the home. If your home is larger in size, you may consider investing in additional smoke alarms.

When Was the Last Time You Replaced the Batteries in Your Smoke Detectors?

It is not enough to simply have the smoke detectors mounted to your walls or ceiling. Instead, you need to make sure that they are loud and that they work well. If you have a hearing impaired person in the home, you should invest in detectors with a visible strobe light to alert them to a danger. Batteries generally should be replaced every few months, and you may consider replacing the batteries each time you replace the filters for your HVAC system. Keep in mind that it is better to replace the batteries before they lose power than to be without the function of an alarm in your home when you need it.

Even a small fire can be a dangerous and costly event. By focusing on these factors in your home, you can most easily prepare for a fire, and you will be able to take immediate action in the event a fire develops in your home.

What’s Ahead For Mortgage Rates This Week – March 23, 2015

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Whats Ahead For Mortgage Rates This Week March 23 2015Last week’s events included the National Association of Home Builder’s Housing Market Index, which fell to its lowest reading since last summer. Other news included reports on housing starts and building permits, the FOMC meeting statement and Fed Chair Janet Yellen’s press conference.

Home Builder Confidence Falls, Building Permits Rise

The NAHB Wells Fargo Housing Market Index fell by two points for a reading of 53 in March. The expected reading was 57. Analysts said that this proves that lower mortgage rates and steady job growth aren’t fueling housing markets as expected. NAHB chief economist David Crowe also cited supply chain issues such as a shortage of available lots, labor shortages and tight mortgage underwriting standards. Home builders remain optimistic that as labor markets continue to improve and more home buyers enter the market during the traditional spring and summer buying season, that builder confidence will also grow.

The Department of Commerce reported that building permits for February rose from January’s reading of 1.06 million to 1.09 million. This represents a 3.00 percent increase and was the highest reading since October. Permits fell for single family homes fell by 6.20 percent in February, but were 2.80 percent higher year-over-year. Single family permits account for 75 percent of building permits issued.

Housing starts fell dramatically due to bad weather. The Northeast saw housing starts fall by 56 percent due to extreme snowfall; Housing starts in the Midwest fell by 37 percent and the West saw housing starts decline by 18.20 percent in February. The South reported a 2.50 percent decrease in housing starts, but since nearly 50 percent of housing starts are in the South, this decline is more significant than it appears.

Fed Rates Hold Steady, Mortgage Rates Fall

The Federal Reserve noted in its post FOMC meeting statement that the Fed is in no hurry to raise rates. Citing ongoing concerns about low inflation and a sluggish housing market recovery, the Fed’s policymakers indicated that they don’t plan to rush on raising the target federal funds rate. In her press conference held after the FOMC statement, Fed Chair Janet Yellen reiterated the Fed’s intention to raise rates only when domestic and global economic developments warrant.

Mortgage rates fell according to Freddie Mac with the average rate for a 30-year fixed rate mortgage eight basis points lower at 3.78 percent. The average rate for a 15-year mortgage was four basis points lower at 3.06 percent; the average rate for a 5/1 adjustable rate mortgage was also four basis points lower at an average rate of 2.97 percent. Discount points were unchanged at an average of 0.60 percent for fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.

What’s Ahead

This week’s housing-related news includes new and existing home sales, the FHFA home price index and FHFA’s home price index. Freddie Mac mortgage rates and weekly jobless claims will also be released as usual on Thursday.