Destin Real Estate News Blog

Region’s Market Update Week Ending April 6, 2012

JeffD — Thu, 05 Apr 2012 22:51:18 +0000

There was a lot of daily volatility for mortgage rates this week. On Tuesday, the Fed Minutes revealed a lack of enthusiasm for further easing, and this caused mortgage rates to jump. Increased concerns about Europe then helped mortgage rates improve on Wednesday and Thursday. The net result was a small increase in rates for the week.

Shifting expectations for future Fed policy have had a large influence on mortgage rates lately, and that was certainly true on Tuesday. The Minutes from the March 13 Fed meeting caused investors to lower their expectations for additional quantitative easing (QE3). The Minutes suggested that most Fed officials would support QE3 only if the economy performs much more poorly than expected. Under another round of quantitative easing, the Fed would purchase mortgage-backed securities (MBS), and the potential for added demand from the Fed makes MBS more appealing. So, when the perceived likelihood for QE3 decreases, investors sell MBS, and lower MBS prices lead to higher mortgage rates.

By contrast, increased concerns about Europe caused investors to shift funds into safer assets such as MBS, which was favorable for mortgage rates. Investors viewed weaker than expected economic growth data and rising bond yields in troubled countries such as Spain as indications that financial conditions in Europe may be getting worse. Slower economic growth tends to reduce future inflationary pressures, which also benefits mortgage rates.

Also Notable:

Weekly Jobless Claims fell to the lowest level since April 2008
The consensus forecast is for an increase of 200K jobs in March
The European Central Bank (ECB) made no change in rates
The Treasury will auction $72 billion in 3-yr, 10-yr, and 30-yr securities next week

Mortgage markets will close early at 12:00 et tomorrow in observance of Good Friday. The important Employment report will come out tomorrow at 8:30 et. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month. Next week, Import Prices and the Fed’s Beige Book will be released on Wednesday. The Producer Price Index (PPI) focuses on the increase in prices of “intermediate” goods used by companies to produce finished products and will come out on Thursday. The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Friday. CPI looks at the price change for those finished goods which are sold to consumers. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Regions Market Update – Week Ending March 16, 2012

JeffD — Tue, 20 Mar 2012 12:43:38 +0000

What began as a quiet week quickly turned negative following the release of Tuesday’s Fed announcement. Mixed economic data and Treasury auctions had little impact. Mortgage rates ended the week significantly higher.

While it was very similar to the last statement, the Fed announcement reflected some degree of improvement in the economy. This caused investors to reduce expectations for further Fed easing through purchases of mortgage-backed securities (MBS). The chance that the Fed would produce enormous additional demand had helped propel MBS prices to their recent highs, so this news caused investors to sell MBS. The statement also acknowledged that rising energy prices will lead to higher short-term inflation. Investor concern that this will produce higher long-term inflation caused MBS prices to fall and mortgage rates to rise. The PPI and CPI inflation data released this week clearly reflected the impact of higher energy prices.

The Freddie Mac weekly mortgage rate survey released on Thursday showed just a small increase in rates, which could be very misleading. This is simply due to the timing of the survey. Freddie Mac collects data from origination companies on Monday and Tuesday and releases the results on Thursday. In this case, the survey does not reflect the significant rise in mortgage rates which followed the Fed announcement on Tuesday afternoon. Also Notable:

Core CPI inflation was 2.2% higher than one year ago
Retail Sales posted the largest monthly increase since September 2011
Weekly Jobless Claims matched the lowest level in four years
The Dow stock index climbed to the highest level since December 2007

With a light Economic Calendar next week, the Housing data will be the focus. Housing Starts will be released on Tuesday, Existing Home Sales will come out on Wednesday, and New Home Sales will be released on Friday. Jobless Claims and Leading Indicators are scheduled for Thursday.

For help with any real estate needs in the greater Destin area (from Pensacola Beach to Panama City Beach) email jeffduncanera@gmail.com or call 850-501-1123. AND, use the following link to search all properties currently for sale on the local REALTOR MLS anytime – NO PERSONAL INFO IS REQUIRED…

Realtor MLS – Property Search

Please share it with any friends who may be interested!

First Florida Bank Lending Rates

JeffD — Sat, 17 Mar 2012 13:18:28 +0000

Rates through Monday AM (no points/no origination):

ConventionalLoans (single family and townhomes, loan amount under $417,000):

30 year Fixed – 4.125%

15 year Fixed – 3.5%

5 year Arm – 3.125%

Government(VA, FHA, Rural Housing):

30 Year Fixed – 3.75%

15 Year Fixed – 3.375%

5 Year ARM – 2.875%

Rural Housing 30 year – 4%

Jumbos(loan over $417,000):

30 year Fixed – 4.75%

15 year Fixed – 3.875%

5 year Arm – 3.5%

Condos(1% origination):

15 year Fixed – 5.125%

5 year ARM – 4.375%

Conventional, FHA, USDA Mortgage Insurance

JeffD — Fri, 02 Mar 2012 20:45:22 +0000

Homebuyers often have a lot of questions about mortgage insurance (MI)…and understandably so. With different rules for different loan programs, the details can be confusing. Here are a few things to keep in mind. All types of MI protect the lender in the event of default, and MI is typically required when homebuyers have less than a twenty percent deposit to put down on a home. There are two main types of MI: an Up Front Mortgage Insurance Premium (UFMIP), which is generally financed into the loan, and an additional monthly mortgage insurance premium (MIP), paid as a part of your normal monthly mortgage payment.
Here are some additional details to keep in mind:

	CONVENTIONAL “MI”	FHA “MIP”**	USDA “GUARANTEE FEE”
Basics	MI can be monthly or all up front	1% UFMIP rolled into loan amount + Monthly Premium	2% UF Guarantee Fee + Monthly Guarantee Fee
Potential Benefits	Upfront MI can save significantly on monthly payments.Conventional MI often has lower monthly payments than FHA.	Income requirements are relaxed compared to conventional MI & USDA.There is more flexibility in credit scores. Seller paid closing costs is allowable up to 6%.	The monthly premium is typically almost 1/4 the cost of FHA.
Potential Pitfalls	Seller paid closing costs is limited to 3% if ≤5% down payment.Credit requirements and income requirements are more stringent.	The monthly premium is typically higher than conventional & USDA.	There are specific geographic and income eligibility requirements. Income requirements are much more stringent than FHA.
Dropping MI	When the value reaches 78% of the original sales price, MI automatically falls off.You can request removal if the principal balance reaches 80% (i.e. accelerated payment of principal or, in some cases via an appraisal of the property showing increased value).	You must meet two tests to drop FHA’s MIP: 1. You must PAY the balance down to 78% of the original sale price of the property (you can’t just get an appraisal to show equity).AND 2. You must pay the monthly MIP for a minimum of 5 years.	The USDA Guarantee Fee remains on the loan for the entire term. It can never be dropped from a USDA loan until the property is sold, refinanced or the loan is paid off.

** Note that the FHA MIP example is based on a 30 year example.

Info provided by Beach Community Mortgage

Regions Market Update Week Ending February 24, 2012

JeffD — Wed, 29 Feb 2012 14:46:38 +0000

Investors are beginning to focus on the price of oil. Concerns about Iran have pushed oil prices up to the highest level in nine months. Higher energy prices are bad for consumers and the economy. Since higher oil prices have two opposite effects on inflation, though, the impact on mortgage rates is uncertain. Rising energy costs add to inflation, but they also slow economic growth, which reduces inflationary pressures. It’s not clear which influence will be larger over time.

The housing data released this week continued to be encouraging. January Existing Home Sales rose 4% from December to the highest level since May 2010. The inventory of listed existing homes declined 1% to the lowest level since March 2005. January New Home Sales again exceeded expectations.

Also Notable:

European officials agreed to provide a $172 billion bailout package to Greece
Weekly Jobless Claims again held close to the 350K level
Consumer Sentiment rose to the highest level since February 2011
The Dow rose above the 13,000 level for the first time since May 2008

Next week, Pending Home Sales will be released on Monday. Durable Orders will come out on Tuesday. Revisions to fourth quarter GDP will be released on Wednesday, along with Chicago PMI Manufacturing and the Fed’s Beige Book. ISM Manufacturing and Core PCE inflation are scheduled for Thursday. Personal Income, Consumer Confidence, and Construction Spending will round out a busy week.

Realtor MLS – Property Search

Please share it with any friends who may be interested!

New Baytowne Wharf – Sandestin Foreclosure

JeffD — Tue, 21 Feb 2012 21:24:16 +0000

: OBSERVATION POINT #267 – $199,900

This exquisite 2 bedroom, 2 bath 1,006sqft condo is perfectly situated in the heart of Baytowne Wharf for quick and easy access to all the amenities. The Village of Baytowne Wharf features restaurants, live entertainment, shopping and many other activities. This location is close to all the resort area has to offer. Purchase this property for as little as 3% down. As with all foreclosures, property offered “AS IS” with right to inspect.

For more pics & info, or help with any real estate needs in the greater Destin area (from Pensacola Beach to Panama City Beach) email jeffduncanera@gmail.com or call 850-501-1123. Use the following link to search all properties currently for sale on the local REALTOR MLS anytime – NO REGISTRATION REQUIRED – Feel free to share with friends!..Realtor MLS – Property Search

Regions Market Update

JeffD — Tue, 21 Feb 2012 01:09:20 +0000

Increased optimism that a Greek bailout package will be approved on Monday caused investors to shift to riskier assets, which was negative for mortgage rates. Mixed US growth and inflation data had little net impact. Mortgage rates ended the week a little higher.

After several weeks of uncertainty, it appears that European officials are close to reaching agreement on a much needed bailout package for Greece. Despite strong public opposition, Greek leaders took a big step by passing a budget with new austerity measures. Comments from euro zone leaders expressed broad support for providing additional aid, which Greece needs to avoid a default on debt maturing on March 20. Prior to this week, it appeared that the option to let Greece default and possibly leave the European Union was under serious consideration, but investors now believe that European leaders will not let this happen. An important meeting is scheduled for Monday, and investors expect a deal to be announced. In anticipation, investors shifted to riskier assets, and relatively safer assets such as mortgage-backed securities (MBS) dropped in price, pushing mortgage rates higher.

The inflation data released this week showed that core inflation rates (which exclude food and energy) have continued to rise. Core CPI inflation was 2.3% higher than one year ago, which was the highest annual rate since September 2008. Fed officials forecast that core inflation levels will moderate later in the year. If it unexpectedly continues to move higher, however, the impact could be large. Higher inflation is negative for mortgage rates. In addition, it would be more difficult for the Fed to maintain its current loose monetary policy. Investors will be closely watching core inflation levels in coming months to see if the Fed’s forecast proves correct.

Monday’s meeting between Greek and euro zone officials will be the most highly anticipated economic event next week. Investors expect that a deal will be reached to provide additional aid to Greece. It will be a light week for US economic data. Existing Home Sales will be released on Wednesday. New Home Sales and Consumer Sentiment will come out on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. Mortgage markets will be closed on Monday in observance of Presidents Day.

For help with any real estate needs in the greater Destin area (from Pensacola Beach to Panama City Beach) email jeffduncanera@gmail.com or call 850-501-1123. Use the property search link below to search all properties currently for sale on the local REALTOR MLS anytime – NO REGISTRATION REQUIRED – Feel free to share with friends!…Realtor MLS – Property Search

“FIRST FLORIDA BANK” RATES

JeffD — Sat, 18 Feb 2012 21:16:55 +0000

Rates through Monday AM (no points/no origination except on condos)

Conventional Loans (single family and townhomes, loan amount under $417,000):

30 year Fixed – 4%

15 year Fixed – 3.50%

5 year Arm – 2.875%

Government (VA, FHA, Rural Housing):

30 Year Fixed – 3.75%

15 Year Fixed – 3.25%

5 Year ARM – 2.875%

Rural Housing 30 year –4%

Jumbos (loan over $417,000):

30 year Fixed – 4.75%

15 year Fixed – 4.25%

5 year Arm – 3.875%

Condos (1% origination):

15 year Fixed – 5.125%

5 year ARM – 4.375%

For help with any real estate needs in the greater Destin area (from Pensacola Beach to Panama City Beach) email jeffduncanera@gmail.com or call 850-501-1123. Use the property search link below to search all properties currently for sale on the local REALTOR MLS anytime – NO REGISTRATION REQUIRED – and, please forward to any friends who may be interested!…Realtor MLS – Property Search

Townhome Foreclosure in the Heart of Destin

JeffD — Fri, 17 Feb 2012 22:53:06 +0000

: QUAIL RUN #196 – 1014 AIRPORT RD – $101,900

This lovely 3 bedroom 2 bath 1375 sqft townhome is located in the very popular Quail Run complex just South of the Destin Airport. Situated toward the end of the cul de sac there is very little thru traffic. The large living room has vaulted ceilings and is bright and open. The fully equipped kitchen opens to the living room across a breakfast bar and provides access to the rear yard. The two large spare bedrooms and second full bath are upstairs. Oversized one car attached garage has plenty of room for storage and washer/dryer. Community swimming pool. Conveniently located near all of the activities you love in Destin and just minutes to the beach. As with all foreclosures property offered ”AS IS”.

For more pics & info, or help with any real estate needs in the greater Destin area (from Pensacola Beach to Panama City Beach) email jeffduncanera@gmail.com or call 850-501-1123. Use the property search link below to search all properties currently for sale on the local REALTOR MLS anytime – NO REGISTRATION REQUIRED – Feel free to share with friends!..Realtor MLS – Property Search

Banks offer more cash incentives for short sales

JeffD — Wed, 15 Feb 2012 20:34:29 +0000

ATLANTA – Feb. 15, 2012 – More banks are offering homeowners incentives to sell their houses in a short sale to avoid costly foreclosure expenses for the bank. In fact, some banks are offering struggling homeowners as much as $35,000 to do a short sale, according to CNNMoney.
Many homeowners have been surprised at banks’ recent willingness to approve short sales.
“Initially, the homeowners are skeptical,” says Elizabeth Weintraub, a real estate professional in Sacramento, Calif. “The bank may have already turned down their request for a modification. Then, one day, they call and say, ‘Let us give you some cash.’”
For banks, the incentives have proven to be a smarter move than letting a property fall into foreclosure.
“The first choice is a modification, but if that’s impossible, then a short sale is a faster, more efficient solution,” says Tom Kelly, a spokesman for Chase Mortgage.
With a foreclosure, homeowners stop making their mortgage payments and usually property taxes as well. They also often put off maintenance issues, which can cause the home to lose value even more. Foreclosed homes sold, on average, for 22 percent less than homes not in foreclosure in December, according to National Association of Realtors®’ data. For comparison, discounts for short sales were about 14 percent.
“I’ve seen a lot of foreclosures for sale where it would cost a lot more than $20,000 to get them into condition to sell again,” says John Hayton, a short sale specialist in Orlando, Fla.
Source: “Banks Pay Delinquent Borrowers $35,000 to Sell Their Homes,” CNNMoney (Feb. 10, 2012)