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to our newsletter.
Our goal is
to bring you
the latest trends
and important
changes affecting
the mortgage
industry as
it relates to
the consumer.
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free to call
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regarding the
contents of
this newsletter.
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Market
Conditions for Fullerton,
CA
as
of 02/24/2006 (Realty
Times)
Note:
A strong Buyer's Market
does not necessarily
mean that it is not
a good time to sell
your home. Likewise,
a strong Seller's Market
does not necessarily
mean it is a bad time
to buy a home. We suggest
contacting a Real Estate
Professional for advice.
NAR:
Price Gains Strong,
but Cooling
House prices posted
double-digit gains
in half of the covered
metropolitan statistical
areas in 2005, but
"the overall
pace of growth has
cooled slightly,"
according to the National
Association of Realtors.
The NAR's fourth-quarter
metro area home price
report shows that
72 of 145 MSAs had
double-digit annual
increases in median
existing-home prices,
setting a new record.
The previous record
was 69 MSAs in the
third quarter of 2004.
The NAR also reported
that the national
median resale price
stood at $213,000
in the fourth quarter,
up 13.6% from $187,500
a year earlier. "Although
home sales have eased,
the tremendous momentum
in price appreciation
was sustained in the
fourth quarter because
tight inventories
still favored sellers,"
NAR chief economist
David Lereah said.
"The good news
is that the supply
of homes on the market
has been trending
up, and we are entering
a period of a more
normal balance in
supply and demand."
The NAR can be found
on the Web at http:/www./realtor.org.
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Fannie
Eyes Streamlined
ARM Refi
Fannie Mae
is working
with lenders
to develop
a streamlined
refinancing
process for
borrowers
who want to
bail out of
adjustable-rate
mortgages.
Rising short-term
interest rates
and borrower
awareness
of the risks
associated
with interest-only
and option-payment
ARMs is creating
the potential
for a major
shift to fixed-rate
loans or safer
hybrid ARMs,
according
to Fannie
Mae executive
vice president
Tom Lund.
"A lot
of our largest
partners are
talking about
trying to
create a streamlined
capability
to take some
of these ARM
borrowers
back into
a fixed-rate
or longer-term
hybrids, maybe
with an IO
feature,"
Mr. Lund told
a Morgan Stanley
housing conference.
"They
see that as
the next big
trend."
He noted that
Fannie Mae
might not
be able to
purchase some
of the newly
refinanced
loans. But
the secondary-market
agency is
working with
its customers
to try to
make such
refinancings
easier for
lenders and
consumers.
Fannie Mae
can be found
online at
http://www.fanniemae.com.
4Q
Resales
Rise / 3rd-Highest
Level
Total existing-home
sales --
including
condominiums
and co-operatives
-- set the
third-highest
pace on
record in
the fourth
quarter,
rising in
24 states
from the
levels recorded
a year earlier,
according
to the National
Association
of Realtors.
The seasonally
adjusted
annual resales
rate was
6.90 million
units in
the fourth
quarter,
up 0.3%
from 6.88
million
in the fourth
quarter
of 2004.
(The record
high of
7.24 million
units was
set in the
third quarter
of 2005,
the NAR
reported.)
The biggest
year-over-year
gains were
recorded
in Arkansas,
where the
resale rate
was up 29.8%;
Alaska,
up 28.4%;
and Louisiana,
up 28.1%.
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