Chance Gates' Blog

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Mortgage Rates are VERY Low and Conforming Loan Limits Have Been Extended!

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First important news item:  Mortgage rates are unbelievably low and can save you a significant amount of money by reducing your monthly mortgage payment.

That means extra cash to help pay for something that you really need, such as a new car, home improvement project, a child’s college education or your retirement nest egg. PLEASE DON’T WAIT and miss the opportunity to save. The market can change overnight.

Second important news item: Congress has extended higher conforming loan limits backed by Fannie Mae, Freddie Mac and FHA until September 30, 2011. These higher loan limits were instituted in 2008 through the Housing and Recovery Act. Previously, the conforming loan limit was $417,000 in high-cost areas. Since the signing of the Housing and Recovery Act, the conforming loan limit has been $729,750 in most high-cost areas.

This high conforming loan limit is especially helpful in high-cost areas, such as California and New York, where normal housing costs tend to be much higher than the rest of the country. With housing prices down, many borrowers in high-cost areas have found that they are eligible for refinancing with a high balance conforming loan. Don’t wait to take advantage of the higher conforming loan limits, because time is running out! Your conforming loan must close by September 30, 2011.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

Market Report Commentary

Absorption Months Supply of Inventory (Unsold Inventory ÷ Sales per Month)
– As of April 30th, there was 7.8 months of unsold inventory based on the April sales rate.
– Historical Months Supply of Inventory show that April MSI is up 1.4 months from March and up one month from
April 2010.
– In the past twelve months, there have been four months which have fallen into what is defined as a balanced
market. In the past 24 months, the market has remained as primarily a buyer’s market.
– The National Association of REALTORS® describes a balanced market as between 5 and 7 months supply.
– Unsold inventory includes Active Pendings. This method of reporting months supply of inventory follows the
industry standard of including all pending sales remaining in active status in the active inventory

Conclusion
– We continue to compare this April, with the market performing on its own, to last April’s Median Sales Price which
was influenced by the First Time Homebuyer tax credit. Looking at the period mid-2005 through March 2009, it’s
encouraging that we have not seen the rapid decline in pricing, but from that period forward there continues to be
some settling in pricing.
– April 2011 median home price of $155,000 is the lowest the Reno area has seen since 2000.
– April 2011 unit sales, although down from the prior month and the prior year, is still performing at near record
levels.
– Year-to-date 2011 sales are 13 sales ahead of 2010.
– In April, the “Bank-owned” sales category held the dominant share of the market with 40% of the closings.
– The affordability door is open to a wider range of buyers. This means that a two-income, household earning
approximately $10 per hour each, can now afford the median priced home in the Reno/Sparks area.
– Closed sales numbers in April set a near record as being fifth best April for single family sales number in history.
– Mortgage rates are at historic lows. Rates are predicted to move up before year end. For those with stable jobs
and who expect to stay in their home long-term, it’s an excellent time to buy.
– Inflation is hitting consumer pocket books in the form of increased gas and food prices. Fuel costs may have a
greater impact on the rural areas surrounding the Reno/Sparks market, including the Fernley market, as
consumers consider the cost to commute.
– The number #1 Job for Nevada is jobs!
– The Detailed Report is made available to members as a member benefit.

Logging in allows you to save your favorite properties and get instant updates price changes,  new pictures and open houses on the property.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

• Beware of foreclosure rescue scams – Help is Free!
• Beware of anyone who asks you to pay a fee in exchange for counseling service or modification of
  delinquent loan.
• Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
• Never make a mortgage payment to anyone other than your mortgage company without their approval.
• Assistance from a HUD-approved housing counselor is FREE.

Logging in allows you to save your favorite properties and get instant updates price changes,  new pictures and open houses on the property.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

For more information go to: http://fightfraud.nv.gov/

http://www.realtor.org/rmodaily.nsf/f3c66d0c6457c1e1862570af000cb13b/8929c93ef2c9a10b862578710052da32?OpenDocument

Do your clients aspire to live mortgage free? Here are a few ways they can pay off their mortgage early, according to a recent article at Bankrate.com.

Add a little payment to principal. Use mortgage calculators to see how adding a little extra payment to your principal–even $100–can shorten the length of your loan and reduce the amount of interest you’ll pay on it. Tracy Piercy, CEO of MoneyMinding.com, says home owners can just round their monthly payments up (e.g. $644 to $650) to find savings too–just an extra $6 per month on a $200,000, 30-year loan can save you four payments at the end of your mortgage loan.

Refinance. Interest rates are low and you can often can get an even better rate if you refinance into a shorter loan term. For example, 15-year loans are a popular refinancing choice. You’ll have higher payments, but you’ll be paying less overall interest. Or if you don’t want to commit to the higher payments, take out a 30-year loan but make payments as if you had a 10- or 15-year loan, experts recommend.

Make biweekly payments. Pay half your regular mortgage payment every other week instead of once a month. By doing so, you’ll have made 13 full monthly payments by the end of the year and on a 30-year mortgage, that extra payment can chop about six years off your mortgage.

Source: “4 ways to pay off your mortgage earlier,” Bankrate.com (April 2011)

Logging in allows you to save your favorite properties and get instant updates price changes,  new pictures and open houses on the property.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

http://www.realtor.org/RMODaily.nsf/pages/News2011040502?OpenDocument

Some Americans who owe more than what their house is currently worth are opting to walk away from their mortgage. But a new survey finds Americans don’t agree with home owners who make that choice.

Sixty-percent of Americans say it is “never OK” for home owners to stop making payments on their mortgage, according to a new survey of 1,000 American adults by FindLaw.com, a legal information Web site. However, 34 percent say it’s OK for home owners to walk away from their mortgage if they are no longer able to make their monthly payments.

Only 3 percent of those surveyed said home owners should be able to walk away from their mortgage anytime they want.

“Many home owners are currently facing very difficult and complicated situations involving their home mortgage, in some cases even including the threat of foreclosure,” says Stephanie Rahlfs, an attorney and editor for FindLaw.com. “But before making any major decisions, home owners should consult with financial and legal professionals, including accountants, real estate attorneys and financial advisers. Any major change to a mortgage situation could lead to serious and unanticipated consequences involving taxes, contract law, credit scores, ability to borrow in the future, potential for lawsuits, and much more.”

Source: “Most Americans Opposed to Homeowners Walking Away From Mortgages, Says New FindLaw.com Survey,” FindLaw.com (April 5, 2011)

Logging in allows you to save your favorite properties and get instant updates price changes,  new pictures and open houses on the property.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

The 9.0 earthquake and subsequent tsunami that devastated Japan last week sent a ripple through the U.S. mortgage markets causing interest rates to lower this week.

“With the crisis in Japan, investors rushed to buy the security of U.S. Treasury bonds, which lowered its yields and other interest rates as well,” says Frank Nothaft, Freddie Mac’s chief economist. “This allowed fixed mortgage rates to drift lower this week.”

The 15-year fixed-rate mortgage dropped below 4 percent this week, reaching its lowest level since December 2010. The 15-year mortgage rate averaged 3.97 percent this week, compared to last week’s 4.15 percent, according to Freddie Mac’s weekly mortgage rate survey.

The 30-year fixed-rate mortgage also dropped this week, averaging 4.76 percent compared to last week’s 4.88 percent. Last year at this time, 30-year mortgages averaged 4.96 percent.

The 5-year adjustable-rate mortgage also inched downward, averaging 3.57 percent compared to last week’s 3.73 percent.

Source: “30-Year Fixed-Rate Mortgage Drops Amid Japan Crisis,” Freddie Mac (March 17, 2011)

Logging in allows you to save your favorite properties and get instant updates price changes,  new pictures and open houses on the property.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

Summary:
– “The year has started on the right foot with a continued lateral trend in year-over-year median sales price,” said Sherrie Cartinella,
2011 president of Reno/Sparks Association of REALTORS and a REALTOR with Coldwell Banker Select Real Estate. “With a less
volatile price movement, both buyers and sellers can anticipate and plan appropriately with a sense of stabilization in the market.
We experienced the second highest number of unit sales for the month of January in the past decade. Although it was a drop in
sales month over month, we can attribute the drop in numbers to the fact that many buyers rushed to purchase a home in
December for the tax implications. It is fairly normal to see month-over-month decrease in unit sales from December to January.”

Median Sales Price
– January 2011 median price was down 3.1% to $159,950 compared to $165,000 in December 2010.
– The median sales price has remained relatively stable for the past twenty months.
– Median price is defined as the mid-point, half of the sales for the time frame are below and half are above.

Number of Units Sold
– This January’s unit sales are the second highest January in the past decade.
– January ended the month with 350 sold transactions, down 26.5% from the prior month.
– Sales were up 1.2% over the same period last year.
– We have continued to see an increase in January year-over-year sales for the fourth consecutive January.

Average Days on Market
– The average days on market are 151 days, up 4.8% from December 2010.

Sold-to-asking-price Ratio
– January reported sales received an average of 96.6% of the seller’s final asking price.

Conclusion
– Mortgage rates, although inching up, remain at historic low rates. Recent rate increases from 4.5% on a 30 year fixed to 5.0%
should be an incentive to move buyers from just thinking about buying in today’s market to getting off the fence and doing it. The
impact of an increase in interest rates is about $60 per month on a $200,000 mortgage. Current predictions are for rates to inch up
this year.
– Median home prices ended the year at a new low – down $7,050 from last January and at 2000 – 2001 prices.
– The size of the active inventory in January, net of any pending sales, remained virtually the same as December with 1,966 single
family homes available for sale in the greater Reno/Sparks area.
– Closed sales numbers in January set records as being the second highest January sales number in the past decade.
– The mix of closed sales in January has shifted again with a 9 percentage point increase in the number of Short Sales over
December to 39% at the expense of the No Special Conditions and Bank Owned categories.
– The fact that so much of our inventory consists of homes for sale by distressed sellers is a short version summary of our market.
The employment picture is the key to shutting off the supply of new distressed listings entering our market each month.

reprinted with permission by the Reno/Sparks Association of REALTORS®.”

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

Daily Real Estate News  | March 4, 2011  |
For the third straight week, long-term mortgage rates inched down, according to Freddie Mac’s weekly mortgage survey.

The 30-year fixed rate mortgage averaged 4.87 percent for the week, down from last week’s 4.95 percent. The rate was 4.97 percent at this time last year.

The 15-year mortgage rate also dipped for the week, averaging 4.15 percent, down from last week’s 4.22 percent.

The 5-year adjustable-rate mortgage averaged 3.72 percent, which is a drop from last week’s 3.8 percent average.

“Mortgage rates saw an overall improvement this week,” says Frank Nothaft, Freddie Mac’s chief economist. “Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year’s high set just three weeks ago.” This means that home buyers can now expect to pay $263 less per year on a $200,000 loan, Nothaft adds.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

Source: “30-Year Fixed-Rate Mortgage Drops for Third Consecutive Week,” Freddie Mac (March 3, 2011)

Daily Real Estate News  | March 4, 2011

Arizona, Nevada, and California are among the states that have proposed using federal aid money to have Bank of America lower the amount struggling borrowers owe on their mortgages.

Bank of America Corp. will begin the mortgage principal reduction program for customers in Arizona, as part of a pilot program in using the federal aid dollars from the Hardest Hit Fund. The Hardest Hit Fund is an Obama administration program designed to provide extra aid to states that face high unemployment and sour real estate markets. Individual states can determine how to use the federal money. Arizona received $125.1 million in aid.

Bank of America customers in Arizona who are struggling to make their mortgage may be eligible to have the amount owed on their mortgage reduced via matching contributions from the state and from participating mortgage investors.

The bank sent letters to home owners in Arizona who may qualify.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.

Source: “Bank of America Begins Mortgage Principal Reduction Program in Arizona,” Dow Jones Business News (March 2, 2011)

A balanced program for tax reform based upon the common sense idea of lowering taxes out of surplus revenues.

Gentlemen prefer bonds.

Strong men have sound ideas and the force to make these ideas effective.

As a Reno/Sparks real estate professional, I encourage all questions and comments on the Reno/Sparks real estate market or any of the articles posted in this blog. Please feel free to use my back door to the MLS and search the houses available in the Reno/Sparks and most Northwest Nevada neighborhoods. I can be reached by email @ chance@ballard-company.comhttp://www.myspace.com/chancegates .  You can also follow me at http://www.twitter.com/chancegates .  If you are behind on your house payment and looking for a loan modification, go to making homes affordable For a free copy of my report   “5 Steps For Reno/Sparks Homeowners To Prevent Foreclosures” go to my about page http://chancegates.com/about and ask for more information on preventing foreclosures. or   to request a modification.  If the modification fails, contact your local real estate professional to help short sale your home.  To make sure there is no deficiency judgment a homeowner might find it necessary to hire an attorney.