Chris Schaller

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The Mortgage Blog of Chris Schaller

Experts Give House Flipping Tips

According to new data, house flipping is experiencing a resurgence. Flipped homes made up 4.6% of all single-family home sales last year in the United States, a 0.4% increase from 2012. The Vice President of RealtyTrac, Daren Blomquist said, “strong home price appreciation in many markets boosted profits for flippers in 2013, despite a shrinking inventory of lower-priced foreclosure homes. For the year, 21% of all properties flipped were purchased out of foreclosure, but that is down from 27% in 2012 and 32% in 2011.” Experts have given a few tips to help house flippers, such as knowing your market, search for flippable houses in unconventional ways, never buy a house you could not make money on by selling the next day, and pay attention to local and national housing data. More here

Boomers Downsizing With Style

Many baby boomers are making the decision to downsize, according to research. An increased number of people born between 1946 and 1964 are trading in their hefty mortgages and oversized SUVs for smaller, more efficient homes and vehicles. Boomers may be downsizing, but research suggests that they are not sacrificing quality in the transition. Sheryl Connelly, the global consumer trends and a “futurist” for Ford said, “the boomer population has always set the trends,” she adds, “and now they’ve set a course for a more streamlined life that doesn’t sacrifice style and comfort.” More here

Economy Shows Further Signs Of Strengthening

Unemployment rates fell last week and consumer confidence improved. The number of people filing for unemployment payments fell, declining to levels not seen in approximately seven years. Firings are also declining as many companies are preparing for an increase in sales due to the recovering economy. Manufacturing has also improved, showing more signs of a healthier and continually improving U.S. economy. Brian Jones, senior U.S. economist at Societe Generale said, “the labor market is getting better, you’re going to see it improve further as we go through the balance of the year.” More here

Mortgage Applications Rise After 4 Week Fall

According to the Mortgage Bankers Association, mortgage applications jumped by 4.3% this week, making this the first increase in four weeks. The Market Composite index increased 4.3%; the Refinance Index rose 7%, and the refinance share of mortgage activity jumped to 52%. Additionally, the national average contract interest rate for the 30-year fixed-rate mortgage with conforming loan balances fell .09%, and the national average 30-year fixed-rate mortgage with jumbo loan balances decreased .10% from last week. More here

Mortgage Rates Decrease

Average fixed-rate mortgages declined this week in the United States, according to Freddie Mac. The national average 30-year loan decreased 0.7% averaging 4.34% while the national average 15-year mortgage fell 0.9% averaging 3.38%.  Home prices are expected to rise by single digits this year, and inventory may fall after the spring buying season. Experts suggest that low inventory rates and rising prices may slightly hurt the market, but expect positive results as long as mortgage rates remain low. More here

Apartment Availability Declines

According to Fitch Ratings’ annual U.S. CMBS loan default study, commercial mortgage backed securitization defaults fell for the fourth year in a row, decreasing to the lowest level seen in six years. The study found that apartment availability is also declining, causing rent to jump in many areas. The national apartment vacancy rate fell .03% from 2012, averaging 4.2%. A Fitch expert said, “significant amounts of new supply are beginning to come online in many markets, which could temper additional rent growth and drive up vacancy. Demographic trends continue to favor a strong rental housing market with a growing population of young Americans, who traditionally rent. Fitch expects multifamily defaults in legacy CMBS to stabilize near current levels.” More here

Parents Advised To Educate Children On Reverse Mortgage Options

Reverse mortgage and elder law experts are saying that many children of parents who are considering a reverse mortgage are openly opposed to the idea, and influence their parents to decline the option. Experts say it is logical for children to be concerned with their inheritance, but many older adults have no other financial option. It is advised that parents, who choose to involve their children, educate them thoroughly about reverse mortgages. Elder law attorney, Deborah S. Ball suggests that when children are completely informed about reverse mortgages, they are more likely to support the decision. More here

Mortgage Rates Ease

According to the latest Primary Mortgage Market Survey released by Freddie Mac, mortgage rates have fallen slightly. The national average 30-year fixed-rate mortgage fell 0.7% from last week, averaging 4.34% this week. The national average 15-year, fixed-rate mortgage decreased 0.9% from last week, averaging 3.38%. Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.09%, and the 1-year Treasury-index ARM came in at 2.41%.  Frank Nothaft, the vice president and chief economist at Freddie Mac said, “mortgage rates eased a bit following the decline in 10-year Treasury yields. Also, the economy added 192,000 jobs in March, which was below the market consensus forecast, but followed an upward revision of 22,000 jobs in February. Meanwhile, the unemployment rate held steady at 6.7 percent.” More here

Housing Inventory Grows

Housing market inventory has increased for the first time in four years, and home prices continue to rise. A new report found that the median price per square foot jumped 7.1% from March 2013, and increased 23.2% from 2012. Many markets are experiencing a year-over-year median list per square foot price increase. Inventory is on the rise and has increased considerably since last year, though still remains 40% below March 2010. More here

High-End Home Sales Increase

As consumer confidence continues to increase, and jumbo loan rates look more like conventional loan rates, expensive home sales are rising. According to the National Association of Realtors the number of home sales priced at $500,000 to $750,000 grew by 15% from January 2013 to January 2014. The time it takes to sell a house has shortened recently, making this an attractive time to sell for many.  Additionally, prices for high-end homes also remain lower than in the past, according to CoreLogic economist Sam Khater. More here

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About Me:

Chris Schaller is a certified mortgage planner/loan officer with Diamond Residential Mortgage in Springfield, IL. Chris is the only lender in central Illinois that is also a military veteran. He's consistently been in the top one percent of all lenders nationally in closed units and hosts the weekly “Let's Talk Mortgage” radio show on WMAY 970 AM and at www.wmay.com. Chris is the top FHA, VA, and Rural Development lender in central Illinois and the preferred lender for first-time buyers from local Realtors.
Diamond Residential Mortgage saves their clients an average of $3,000 on their home purchase. Text me at 217-341-6850 to find out why we are different.

Listen to “Let’s Talk Mortgage” every Saturday at 1:00 pm on WMAY 970 AM or at www.wmay.com.

Contact:

Chris Schaller
Certified Mortgage Planner / Loan Officer
NMLS# 233271
Diamond Residential Mortgage
2040 W. Iles St., Suite A
Springfield, IL 62704
Phone: 217-726-6864, x1501
Cell: 217-341-6850
Fax: 866-560-9667

Email:

 

chris.schaller@thedrmc.com

Website:

www.ILmortgageman.com

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