 |
Mortgage Rates
Tick
Down
In Freddie Mac's Primary Mortgage
Market Survey the 30-year fixed-rate mortgage
(FRM) averaged 6.26%, with an average 0.6 point,
for the week ending December 22, 2005. Last year
at this time, the 30-year FRM averaged 5.75%.
"Long-term
mortgage rates dipped because of recently
released inflation indicators for November,"
said Frank Nothaft, Freddie Mac vice president
and chief economist. "Although mortgage rates by
and
|
|
|
|
large are higher
than they were at the start of this year,
they've only risen about one percentage point
since hitting a four-decade record low in June
of 2003."
| | |
|
Boomers, Economy Bolster 2nd-Home
Market
 Though the second-home market
usually is the first to experience a downturn,
experts say this niche will remain strong for at
least the next decade.
David Berson,
Fannie Mae chief economist, says the strong
economy and the massive number of baby boomers
entering their prime years for buying a second
home will bolster the market over the next 10
years or more. According to Loyola University
demographer Kenneth Johnson, baby boomers will
continue to move to scenic, rural areas that are
in close proximity to their jobs and primary
residences in major cities.
Prices on the East
and West coasts, and in popular ski and resort
areas continue to rise.
|
|
|
|
Kitchen, Bathroom
Touch-Ups Pay
Off
 Simple home renovations that
enhance livability, while not being too
customized, make a big impression on potential
buyers. Although buyers in hot markets are more
likely to pay top dollar for homes that have
undergone elaborate renovations, well-done
touch-ups in the kitchen and bathroom can be
just as effective at helping a home sell in a
more moderate real estate market.
Elise Haeussler,
head of a Baltimore design firm, recommends
smaller touch-ups in the kitchen, such as new
cabinet fronts and sink replacements. Major
kitchen renovations typically recoup more than
90 cents on the dollar; while minor jobs will
recoup almost 100 percent of the cost.
| |
|
|
|
NAR Anticipates Near Record Sales In
2006
The housing market for 2005 is
headed for a fifth consecutive annual record, and
sales activity in 2006 is expected to be the
second best year in history, according to the
National Association of Realtors® (NAR).
David Lereah, NAR's
chief economist, said that market conditions are
still favorable for housing. "The slowdown amounts
to a tapping of the brakes on a hot market," said
Lereah. "Home sales are coming down from the
mountain peak, but they will level-out at a high
plateau -- a plateau that is higher than previous
peaks in the housing cycle. This transition to a
more normal and balanced market is a good thing."
Existing-home sales,
expected to rise 4.7 percent to 7.10 million in
2005, are likely to decline 3.7 percent in 2006 to
6.84 million. New-home sales, projected to
increase 7.0 percent to 1.29 million in 2005, are
forecast to drop 4.8 percent to 1.23 million in
2006 -- also the second best on record.
NAR President Thomas
M. Stevens from Vienna, Va., said that housing has
always been the soundest investment for most
families. "As the old saying goes, homeownership
beats the heck out of a drawer full of rent
receipts," said Stevens. The median net wealth of
a homeowner household is 36 times higher than a
renter household. |
