Central East Austin Real Estate - Mueller and More

Austin mortgage planner John Schutze gives his weekly market update:
“Mortgage rates are again unchanged as we end the week.

There were no major surprises in the economic data or the Fed announcement this week. As a result, while volatility remained day to day, mortgage rates ended nearly unchanged for the third straight week.

As expected at its meeting on Tuesday, the Fed held the fed funds rate steady, and the accompanying statement contained few changes. The statement retained the language about the fed funds rate remaining at extremely low levels for at least several months. The Fed’s assessment of the economy was a little more upbeat at this meeting, but pointed out that economic improvement will occur slowly. The Fed continued to signal that the $1.25 trillion Mortgage Bond Purchase Program will conclude at the end of March. With less than two weeks of Fed purchases remaining, investors will be watching closely to see if the Fed’s exit has an impact on mortgage rates.

This week’s inflation data showed that inflation is not a concern right now. The February Core Consumer Price Index (CPI) increased at a low 1.3% annual rate. The Fed’s target range is commonly believed to be a 1.5% to 2.0% annual rate. The current low inflation environment makes it easier for the Fed to continue to hold the fed funds rate low to stimulate the economy. All very good news for mortgage rates!

Current rates:
30 Year Fixed:  4.875 %
15 Year Fixed:  4.25 %
FHA 30 Year:  4.875 %
VA 30 Year:  4.875 %
5 Yr ARM: 3.75 %
Jumbo 30 Year Fixed:  5.625 %
Jumbo 3 Yr ARM:  4.5 %
30 Year Home Equity:  5.125 %

The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount”

John’s team helps Austin area buyers plan their mortgage future. Check out his Austin mortgage blog.

Garreth Wilcock is a Realtor® in Central Austin. You can search Austin homes for sale at his website.

Austin mortgage planner John Schutze gives his weekly market update:

“Mortgage rates dropped .25% as we end the week!After several weeks of focus on Fed actions and events in foreign markets, domestic economic data was the primary influence on mortgage markets this week. Weaker than expected results from the data helped mortgage rates, which ended the week lower.

While it is rarely a big market mover, this week’s Consumer Confidence report shocked investors. The index declined to 46.0, far below the consensus forecast of 55.0, and the lowest level in nine months. Consumers are clearly worried about the labor market, and an increase in Jobless Claims in recent weeks has amplified the issue.

The decline in confidence has potentially negative consequences for the economy. Consumer spending accounts for about 70% of economic activity, and this data raises concerns about the level of future spending. Also, home sales suffer during periods of low consumer confidence, and the housing data released this week reflected consumer insecurity. Of course, slower economic growth is favorable for mortgage rates, which fell after the report came out.

Current rates:
30 Year Fixed:  4.875 %
15 Year Fixed:  4.25 %
FHA 30 Year:  4.75 %
VA 30 Year:  5.0 %
5 Yr ARM: 3.75 %
Jumbo 30 Year Fixed:  5.5 %
Jumbo 3 Yr ARM:  4.0 %
30 Year Home Equity:  5.25 %

The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount”

John finds buyers the right loan for their Austin home purchase.  Check out his Austin mortgage blog.

Garreth Wilcock is a Realtor® in Central Austin. You can search Austin homes for sale at his website.

The Austin housing market has certainly seen declining sales in the last few sales, but how is it faring now?

I took a look at annual MLS sales over the last few years to compare the top and bottom halves of the market, taking $300,000 as an approximate mid point for single family detached homes within the City of Austin.

Above $300,000 the proportion of listed homes that failed to sell (listings expired or withdrawn) was 54% in 2008, but went down to 52% in 2009. Compare that with 43% in 2007. Certainly the number of sales are down, it seems that less sellers are trying to sell now, and of that group, more are succeeding.

In the under $300,000 market, things seem much better. While sales volume is down, it’s not down as much as the higher part of the market. (31% down vs. 40% down from 2007-2009)

The portion of homes failing to sell in the lower end of the market is also much less - 31% in 2009 compared to 38% in 2008, and 27% in 2007.

So as might be expected, the lower half of the single family home market has not slowed as much as the upper half, and seems to be recovering faster.

There are various changes afoot at the national level that may shake things up a little in 2010. FHA loans are essentially going to become more expensive after Spring 2010 - they now make up around 30% of the purchase loan market in the US, and closer to 50% in the first time home buyer market. So that will probably put the brakes on the demand side.

Also, mortgage rates are still low, though many expect them to increase without more help from the Federal Government. The tax credit is planned to expire by the end of Summer 2010.

The “sale now on!” message that the macro-economic picture paints is designed to get people into a “buy or sell now” mentality. If this “sale” ends after the summer, it could be a very quiet second half of the year.

Garreth Wilcock is a Realtor with Sherlock Homes Austin. Call on 512 215 4785 to find out what your part of the Austin market is doing, or read about the Austin condo market at his blog.

The top end of the Austin condo market has been struggling. How are things in the lower half? You can also check out the single family home market at my previous post.

The charts here show the annual MLS condo sales volumes over the last few years to compare the top and bottom halves of the market. Things are more skewed here for the dividing price of $300,000, as the middle of the condo market is lower within the City of Austin.

Below $300,000 the proportion of listed condos that failed to sell (listings expired or withdrawn) peaked in 2008. The number of listings was higher in 2008 than 2007, while the number of sales has been dropping. So more failed to sell. Some of these are long term condo conversion projects whose listing expire and are then re-listed, but overall, the number of failed sales in 2009 was close to 49%. Compare that with 37% in 2007.

In the over $300,000 range, things seem pretty tight, though this represents less than a third of the condo market.

The portion of homes failing to sell was 77% in 2009.

Part of the reason for this over-supply was a lack of demand. FHA regulations became tough. Lenders became leary about lending on condos and guidelines for condo projects became more stringent, and down payment requirements larger.

Some condo projects have stalled, and there are notable high-profile auctions of condos, for example those at Sabine on Fifth, coming up at the end of February.

So for those well-qualified buyers who have high downpayments, or can buy with cash, it’s certainly been a buyer’s market. For those sellers in the lower half of the market who haven’t been in an FHA approved project, things have been tough.

It’s unclear how the lending regulations pertaining to condos are going to change in 2010, but it could be a bumpy ride for sellers.
Garreth Wilcock is a Realtor with Sherlock Homes Austin. Call on 512 215 4785 to find out what your part of the Austin market is doing.

Austin mortgage planner John Schutze gives his weekly market update:

“Mortgage rates remain low as we end the week!Global events in China had an impact on US mortgage markets this week. A surprise announcement Thursday night that China raised bank reserve requirements helped mortgage markets and hurt the stock market. The increase is a form of monetary tightening which is intended to slow economic growth in China. This likely means that China will buy fewer exports from other countries, slowing economic growth globally. Slower expected economic growth reduces inflationary pressures, which is positive for mortgage yields.

Update on the Fed’s Mortgage Purchase Program: The Fed has spent $1.184 trillion of the $1.25 trillion allocated for the program which still set to end March 31^st. I have heard some sparse chatter from a few industry “experts” that the Fed may need to extend this program to help keep rates down. The concern is that if the rates increased to quickly it could be bad for the economy. So far, rates haven’t moved higher even though we are less than 60 days from March 31^st. I’ll let you know if I hear more credible data indicating that the Fed will extend the program. 

Current rates:
30 Year Fixed:  4.875 %
15 Year Fixed:  4.25 %
FHA 30 Year:  4.875 %
VA 30 Year:  4.875 %
5 Yr ARM: 3.75 %
Jumbo 30 Year Fixed:  5.625 %
Jumbo 3 Yr ARM:  4.0 %
30 Year Home Equity:  5.0 %

The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount”

John finds buyers the right loan for their Austin home purchase.  Check out his Austin mortgage blog.

Garreth Wilcock is a Realtor® in Central Austin. You can search Austin homes for sale at his website.

The 2010 Austin Marathon is this Valentine’s Day and gives runners and fans a great chance to check out some of the different neighborhoods in Central Austin.

I’ve never run a marathon before, though I’m led to believe that the going is tough, especially in the hills. For prospective home buyers running the entire 26.2 miles, there’s a great opportunity to pass by some interesting homes and explore some of the ways Austin’s neighborhoods are unique.

The race can be just as much a mental challenge as it is a physical one, and visualizing different parts of the race is one way to help prepare mentally. I’m taking some time to think about some of the homes that the marathon will run past:

1. Just before mile six, you will pass 802 S 1st St, #124.  This 1br/1ba, 638sq. ft. condominium home is listed at $144,000 and was built in 1984.  It has a patio next to the green belt and the bathroom features granite!
2. Located a bit past mile eight you’ll run by 506 Upson St.  Built in 1949, this cute 2/br 1/ba ‘Old Austin’ home is going for $799,000. It’s well located on almost a third of an acre in the Deep Eddy neighborhood, and includes two structures - this home and a duplex next door.
   
3. For those running the half marathon, be sure to check out 2508 Enfield Rd, #23, located near mile eleven on your route.  Listed at $205,000, this 2/2 condo shares a wall with only one other resident and has a number of storage areas.  It has 967sq. ft. and was built in 1983.
4. On the full marathon route, just before mile eleven you’ll see 2701 Clearview Dr, listed for $429,000.  It’s a cozy 3/3, featuring a large deck, oversized lot and hardwood and tile floors throughout.  It’s just over 1700sq. ft. and was built in 1950.  Also comes with a front loading washer & dryer.
5. Further down the route in Tarrytown,close to mile twelve, don’t miss 2621 Exposition Blvd.  It is a ginormous 4100sq. ft. and has an outdoor kitchen!  This 4/4 home is listed at $995,000 and was completed just in 2009.
6. Just past the water station after mile thirteen you’ll see 4509 Bull Creek Rd, which just went under a price reduction and is now listed at $239,250.  Built in 1950, this 850sq. ft, 2br/1ba home has hardwood floors and a nice back yard.
7. About half way in between mile 14 and 15 is 5503 Shoal Creek Blvd, listed for $374,000.  This little red brick 2/2 house is 1580sq. ft. and was built in 1950.  Price recently reduced by $15,000.
8. Past mile 15 is a manicured and well shaded home at 5905 Shoal Creek Blvd.  It’s listed at $405,000 and is a 3bd/2br home at 1750sq. ft.  Built in 1953, this home has hardwood floors throughout and arched doorways.
9. Just after mile 16 is a unique duplex 6505 Great Northern Blvd, listed for $257,900.  This Allandale home sits on just under quarter of an acre. It is 1788sq. ft. all together and was built in 1961.
10. And last, but not least, just as you’re hitting your wall near mile 20 (Push past it, you’ve come too far to quit now!!), is a petite home in the popular Brentwood neighborhood at 1701 Alguno Rd.  Listed at just $184,900, this 2/1, 720sq. ft. house was built in 1949.  It features a spacious garage and a large back yard.

Good luck to everyone else running the marathon - this will be be my first.

Garreth Wilcock is a running Realtor in Austin, TX. You can start your search for Austin homes at his website. Call 512 215 4785 if you need to run into any of the homes mentioned in this post!

Austin mortgage planner John Schutze gives his weekly market update:

“Mortgage rates are mostly unchanged as we end the week.The biggest influence on mortgage rates this week came from outside the US. Concerns about the possible default of sovereign debt in smaller nations caused investors to seek the relative safety of US fixed income securities. This week’s economic data was roughly balanced in terms of positive and negative surprises. The added demand for safer investments helped mortgage rates move lower during the week.

Friday’s important Employment report contained mixed news. Against a consensus forecast for a gain of 15K jobs, the economy lost -20K jobs in January. The big story, though, was an unexpected drop in the Unemployment Rate to 9.7% from 10.0% in December. The decline in the unemployment rate in January was viewed as very good news by many economists, pointing to an improving labor market. On a more negative note, revisions to older data showed that the economy has lost 8.4 million jobs since the start of the recession in December 2007, from the previous reported level of 7.2 million. So the in the end the negative news carried the most weight and rates didn’t move from their current level.

Current rates:
30 Year Fixed:  4.875 %
15 Year Fixed:  4.375 %
FHA 30 Year:  4.875 %
VA 30 Year:  4.875 %
5 Yr ARM: 3.75 %
Jumbo 30 Year Fixed:  5.625 %
Jumbo 3 Yr ARM:  4.0 %
30 Year Home Equity:  5.0 %

The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount”

John finds buyers the right loan for their Austin home purchase.  Check out his Austin mortgage blog.

Garreth Wilcock is a Realtor® in Central Austin. You can search Austin homes for sale at his website.

Austin mortgage planner John Schutze gives his weekly market update:

“Mortgage rates are unchanged as we end the week.

Rates started to inch up this morning after the 4^th quarter 2009 preliminary GDP (Gross Domestic Product) showed that the economy expanded 5.7%. This is the highest gain since 2003 and a nice improvement over the 3^rd quarter number which was 2.2%. The stock market rallied early but is now on a downturn which is helping mortgage rates improve as the day progresses. In general good news about the economy pushes rates higher however a closer look at the 5.7% increase indicates that most of the growth was due to companies replenishing inventories from earlier in the year when they were saving cash, not necessarily new economic growth. On the inflationary front, it seems that Ben Bernanke’s confirmation for a 2^nd term is building confidence with investors that he will be a good Fed Chairman to fight inflation that seems inevitable in the coming months/years. Again, good news for mortgage rates in the short term.

Current rates:
30 Year Fixed:  4.875 %
15 Year Fixed:  4.375 %
FHA 30 Year:  5.0 %
VA 30 Year:  5.0 %
5 Yr ARM: 3.75 %
Jumbo 30 Year Fixed:  5.75 %
Jumbo 3 Yr ARM:  4.0 %
30 Year Home Equity:  5.0 %

The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount”

John finds buyers the right loan for their Austin home purchase.  Check out his Austin mortgage blog.

Garreth Wilcock is a Realtor® in Central Austin. You can search Austin homes for sale at his website.

Austin mortgage planner John Schutze gives his weekly market update. The FHA changes could make for an interesting time after April. I can certainly understand why the FHA is low on funds due ot national foreclosure rates rising, and this would be a great motivator to tighten their lending and increase the cost.

“Mortgage rates are down .125% this week.While the economic data released this week had little impact, mortgage rates were heavily influenced by two big stories. One was an announcement that China will take steps to slow its economic growth and the other was President Obama’s proposed new restrictions on the activities of financial institutions. Both measures are expected to lead to slower economic growth in the US, which hurt the stock market but helped mortgage bonds. As a result, mortgage rates ended a little lower.

FHA CHANGES: To build capital and reduce risk, the FHA announced that it will raise insurance rates and tighten credit score requirements. The major changes include increasing upfront premiums from 1.75% to 2.25%, reducing the maximum seller contribution from 6% to 3%, and increasing the level of FICO scores from 500 to 580 below which a down payment of 10% is required. This isn’t a big change because most lenders already have a minimum credit score of 620. At this point, the expected timing of the upfront premium increase will be in the spring, and the other changes will take place over the summer.

Current rates:
30 Year Fixed:  4.875 %
15 Year Fixed:  4.25 %
FHA 30 Year:  4.875 %
VA 30 Year:  5.0 %
5 Yr ARM: 3.875 %
Jumbo 30 Year Fixed:  5.75 %
Jumbo 3 Yr ARM:  4.125 %
30 Year Home Equity:  5.0 %The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount”

John finds buyers the right loan for their Austin home purchase.  Check out his Austin mortgage blog.

Garreth Wilcock is a Realtor® in Central Austin. You can search Austin homes for sale at his website.

Austin mortgage planner John Schutze gives his weekly market update:

“Mortgage rates are unchanged this week.While mortgage rates climbed in December, they have decreased during the first two weeks of January. A combination of factors was favorable for mortgage markets this week. Low inflation, weaker than expected economic growth data, and strong demand for the Treasury auctions all helped mortgage rates move a little lower.

One primary long-term concern for mortgage investors is that the enormous level of stimulus intended to boost the economy will lead to higher inflation. Inflation erodes the value of fixed income investments, so future inflation expectations are a major determinant of bond values, including mortgage-backed securities (MBS). Inflation has not been a factor in the short-term, however, as virtually all of the data in recent months has shown it to be low. This week, the Consumer Price Index (CPI), the most widely watched inflation indicator, showed that core inflation rose only 1.8% from one year ago. The Fed’s comfort zone is for core inflation to rise at a 1.0% to 2.0% annual rate, and Fed forecasts are for low core inflation this year. Mortgage lenders will be watching these levels closely, and any surprises down the road could push mortgage rates higher. We do still expect the trend to be higher as we move further into 2010.

Current rates:
30 Year Fixed:  5.0 %
15 Year Fixed:  4.375 %
FHA 30 Year:  5.0 %
VA 30 Year:  5.125 %
5 Yr ARM: 3.875 %
Jumbo 30 Year Fixed:  5.875 %
Jumbo 3 Yr ARM:  4.25 %

30 Year Home Equity:  5.0 %The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount”

John finds buyers the right loan for their Austin home purchase.  Check out his Austin mortgage blog.

Garreth Wilcock is a Realtor® in Central Austin. You can search Central Austin homes for sale at his website.