Since then, home sales have stalled, dropping 5 percent in June. Sales of new homes remain mired at near-record lows.
“After the first tax credit, sales shot up, and then they just collapsed in November,” said Patrick Newport, a senior economist with IHS Global Insight. “The same thing happened with this one. Sales shot up, and now they’re going to collapse again. The only question is how deep the drop will be.”
Low mortgage rates also haven’t been enough to entice jittery home buyers worried about losing their job. Recent volatility in the stock market hasn’t helped either.
“The net of the last few months has been, ‘Yeah, you’ve had a big drop in mortgage rates,” said Jim O’Sullivan, chief economist at MF Global Advisors. “But consumer confidence has taken a hit from all this turmoil in the markets.”
After slow improvement in the economy in the first half of the year, forecasters have begun paring back their expectations for the second half. As of May, the latest data available, five more states had moved out of recession into recovery, according to the Adversity Index. That put three-fourths of the states in recovery; in the remaining 12 states, the recession was moderating. None remained in full-blown recession.
On a local level, the economy was expanding in two of the 384 metropolitan areas tracked by the index. Of the remainder, 290 were in recovery and 92 were experiencing a moderating recession. None was in full recession as of May.
But more recent economic data point to signs of renewed weakness in the economy. After a strong start in the first quarter, job gains have slowed. As long as the job market remains weak, the housing market will have a tough time getting back on its feet. Gledhill and other market watchers expect prices to drop by another 5 percent nationally before recovering next year and gradually trending higher over the next few years.
“We don’t have the housing market getting back on track until 2013,” said Newport. “If you consider that housing market began to collapse in late 2005, that nearly eight years.”
That forecast is based in part on the large number foreclosed homes that have yet to be listed on the market. This so-called “shadow” inventory is expected to weigh heavily on prices. That means the biggest price drops may be felt in areas that have already sustained the heaviest damage.
“The places that have already fallen so much are at more risk of price declines because of the effect of home foreclosures,” said Gledhill. “Especially Florida and Nevada, mortgage credit conditions are really pretty poor. So we still think we’re going to see more foreclosures — even with the government’s effort to modify loans and stem this problem.”
So far, that government effort has produced relatively few permanent loan modifications; in many cases, foreclosures have been delayed but not avoided.
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As a result, some three years after the housing bust, the foreclosure rate continues to rise in three out of four metro areas, according to the latest data from RealtyTrac, which collects foreclosure date for the 206 biggest metro areas.
Foreclosure rates are highest in the same states that saw the biggest price declines: California, Florida, Nevada and Arizona.
Sales of these “distressed” properties have put pressure on homebuilders to cut prices. Though new home sales bumped up in June from the lowest levels on record, those sales came at a cost, said David Goldberg, a housing industry analyst at UBS.
“We definitely saw some more incentives and price declines in June,” he said. “You might be able to keep the sales pace up a bit from that all-time low level. But if you’re offering a lot of incentives to do it, your profit margins are coming down.”

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Refinancing applications fell 2.9 percent, and the mortgage market index that reflects total loan demand also fell 2.9 percent. Average 30-year mortgage rates edged up 0.01 percentage point to 4.69 percent, but were near the record low of 4.61 percent set in March 2009, based on MBA records dating back to 1990.

Rock-bottom borrowing costs are helping borrowers with pristine credit to buy and those who still have equity in their homes to refinance. But high unemployment and foreclosures remain major hurdles, and worries that prices could dip further are also keeping many potential buyers on the sidelines. The April 30 expiration of homebuyer tax credits has also sapped summer purchasing activity. Buyers had raced to get in under the gun for the tax incentives this spring, and demand for loans to buy homes has fallen in nine out of the 10 weeks since the credit expired.

Refinancings accounted for 78.7 percent of all applications last week, the same as the prior week. Talk has surfaced of a double-dip in U.S. housing, though most economists doubt a second leg down would be nearly as severe as the first. It’s sort of a self-fulfilling prophecy, but if there’s going to be a double-dip you might as well stay on the sidelines as opposed to coming in to buy. With as much turmoil as there is around loans that need to be modified, short sales, foreclosures – all of those signs really indicate to buyers and investors that there will be better prices come tomorrow.

Prices have toppled about 30 percent, on average, from their peaks four years ago, according to Standard & Poor’s/Case-Shiller indexes. Most estimates are for additional single-digit declines. If there’s one part of the economy that might suffer some sort of a double-dip it might come out of the housing market. Housing economists look for the autumn months to tell the story once the ripple effects of the expired tax incentives are in the past.
There’s been an awful lot of demand shifted forward by the first-time homebuyers credit.

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Not only does poor lighting on walkways and entryways compromise safety and security in your home, it also hurts the overall look of your house. Installing low-voltage fixtures for pathways is a pleasant and welcoming feature to guests. Compact florescent bulbs can last up to 10 times longer than incandescent ones and can give your home a soft, cozy feel.

If your front door doesn’t look good, it’s going to reflect on the rest of the house. Fix it up with new weather stripping and sand or refinish the paint or repaint all together. Don’t forget the details. You can polish any hardware on the door and frame the door with matching pottery or planters. If you’re in the market for a new door, an Energy Star-approved door comes with a $1,500 tax credit.

If your shrubs are overgrown and spilling onto the walkway or driveway, it can give the whole property an unkept look. Use simple hand-operated edge clippers or an electric model for the shrubs can keep them in line. An electric trimmer can work wonders for the edges of walkways.

Brownish grass with a lot of weeds can be an eyesore, even if the house itself is beautiful. It costs as little as $10 to test your soil, and find out exactly what nutrients your lawn needs. Next, buy the kind of grass that will grow best in your area. Remember to water in the mornings and when you cut your lawn, make sure not to take off more than a third of the grass height at a time.

Nothing makes a home look weathered quicker than peeling, fading, cracking or flaking paint. To fix it, you need to asses the damage. If it’s just a little dirt and mildew, a good pressure washing can blast that out. But if the problem’s more serious, it’s time to get out the brushes and rollers. Behr Premium Plus Flat and Semigloss paint which costs less than $25 per gallon is an excellent choice. It’s mildew resistant and is designed to last for nearly a decade.

Damaged decks – those with cracks, missing boards, and loose nails, screws or bolts – not only look bad, but can also be dangerous. Take the fight to the deck with your own set of tools to hammer down loose nails and tighten loose screws. If you can replace one or two boards without too much trouble, that may be the end of your deck dealings. But if the damage requires a more aggressive strategy, you may want to think about replacing the entire deck with a new one.

If your windows are cracked, have rotted frames or other visible damage it could be costing you big time in wasted energy. Caulking or installing new weather stripping can eliminate drafts. If the frames are rotted, you’ll likely have to install brand new windows from the outside, which can be costly. The best windows are clad wood and fiberglass windows that help block cold air and rain. The ones that are Energy Star approved earn you a $1,500 tax credit.

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As an loan originator, AMC works closely with both wholesale and retail mortgage lenders.

• Banks offer loan packages such as fixed-rate mortgages (FRMs) and adjustable-rate mortgages (ARMs) in addition to VA and FHA loans.

• Savings and Loans Associations focus on one- to four-family residential mortgages, multifamily mortgages and commercial mortgages.

Since 1986, the 30 Year Bi-Weekly Arm ( Adjustable Rate Mortgage) has proved to be a popular choice outperforming fixed rate monthly mortgages.

• Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) are congressionally chartered, shareholder-owned companies that buys mortgages from lenders and resells them as securities on the secondary mortgage market. The maximum loan amount for both Fannie Mae and Freddie Mac is $322,700.

• FHA Loans (Federal Housing Administration) have some advantages over conventional loans. Since FHA loans are insured by the government, they generally have more lenient qualification requirements, lower down-payment requirements, and they are assumable loans.

The maximum loan amount for an FHA loan (single-family) ranges depending on the county where you live. You can contact a AMC mortgage specialist for these maximum amounts for your specific county. Government loans make up 20 percent of residential mortgages in the U.S.

• VA Loans(Veterans Affairs) carry many of the same advantages as an FHA home loans. However, to qualify for these loans, you must be a qualifying veteran, the unmarried widow of a veteran, a Public Health Service Officer, or an active-duty serviceman. The maximum loan amount for a VA-guaranteed loan is $240,000. No down payment is required for most VA loans.

• Jumbo Loans are conventional loans that are too large for government agencies. Currently, any loan over $322,700 is classified a Jumbo loan. AMC Mortgage Jumbo loans have higher interest rates than conforming loans – typically 0.5 percent to 1 percent higher. Jumbo loans also may have higher down-payment requirements.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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You may be considering refinancing as part of debt consolidation or a student loan consolidation.

Refinancing can be a good idea for homeowners who:

• want to get out of a high interest rate loan to take advantage of lower rates. This is a good idea only if they intend to stay in the house long enough to make the additional fees worthwhile
• have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan
• want to convert to an ARM with a lower interest rate or more protective features (such as a better rate and payment caps) than the ARM they currently have
• want to build up equity more quickly by converting to a loan with a shorter term
• want to draw on the equity built up in their house to get cash for a major purchase or for their children’s education

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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A home equity loan will generally allow you to borrow more money than with any other form of credit, and offer better terms than with other types of loans.

Home equity credit lines often come with variable interest rates (a few offer fixed rates). A credit line may come with attractive low introductory rates. You may find that some home equity credit lines have large one-time upfront fees, others have closing costs and some have continuing costs, such as annual fees.

Home equity lines of credit require that you use your home as collateral. This can put your home at risk if you are late or cannot make your monthly payments.

Once approved for an equity line of credit, you will most likely be able to borrow up to your credit limit whenever you want. Typically, you will use special checks to draw on your line. Under some plans, borrowers can use a credit card or other means to draw on the line.

The federal Truth in Lending Act requires lenders to disclose the important terms and costs of their home equity plans, including the APR, miscellaneous charges, the payment terms, and information about any variable-rate feature. And in general, neither the lender nor anyone else may charge a fee until after you have received this information.

You usually get these disclosures when you receive an application form, and you will get additional disclosures before the plan is opened.

If any term (other than a variable-rate feature) changes before the plan is opened, the lender must return all fees if you decide not to enter into the plan because of the change.

The days of having a home mortgage loan, a personal loan, a car loan, a savings account, a checking account and outstanding balancees on credit cards are becoming a thing of the past.

Financially, it makes sense to consolidate your various personal loans into one. The interest savings can then be used to pay down your debt principal.

A home equity debt consolidation loan only works if you’re financially disciplined. This means you don’t run up debts again such as credit cards. If you do, you could end up with more debt than you can manage. Since your home is used to secure the home equity loan, failure to make payments could lead to foreclosure of your home.

You generally have the right to cancel the deal for any reason — and without penalty — within three days after signing the loan papers. The lender must return any money you’ve paid to date.

Negotiate with more than one lender. Make lenders compete for your business by letting them know that you’re shopping for the best deal. Ask each lender to lower the points, fees or the interest rate, and to meet — or beat — the terms of the other lenders.

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Refinancing can be a good idea for homeowners who:

• Want to get out of a high interest rate loan to take advantage of lower rates. This is a good idea only if they intend to stay in the house long enough to make the additional fees worthwhile.
• Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
• Want to convert to an ARM with a lower interest rate or more protective features (such as a better rate and payment caps) than the ARM they currently have.
• Want to build up equity more quickly by converting to a loan with a shorter term.
• Want to draw on the equity built up in their house to get cash for a major purchase or for their children’s education.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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Retirees began buying homes in Naples at the end of the 1970s, when waterfront lots were selling for $40,000 (today they may fetch $7 million).

The most recent U.S. Census found this city and surrounding Collier County, acquiring young, single, college-educated residents at a faster clip than any other part of the United States. What’s more, during the 1990s, the overall population of the Naples area grew by 65 percent, to just over a quarter-million people, a frenetic rate bested only by Las Vegas.

In the 12 months ending last July, and not counting the increase in population due to births, Florida added an estimated 355,000 residents, nearly the equivalent of the population of Miami.

If migratory trends continue, Florida, which surpassed Ohio, Pennsylvania and Illinois in the 1980s to become the fourth most populous state in the nation, should reach another milestone in 15 years or so, when it overtakes New York. Only California and Texas will have more people.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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In the U.S., the Federal Housing Administration (FHA) administers the programs known as “Ginnie Mae”, Fannie Mae, and “Freddie Mac” to promote lending and to encourage home ownership and construction. These programs work by buying a large number of mortgages from banks and issuing (at a slightly lower interest rate) “bonds” to investors known as MBS or Mortgage Backed Securities.

This allows the banks to quickly relend the money to other borrowers and thereby create more home loans than the banks could with the amount they have on deposit. This in turn allows the more of the public to own their own homes, something the government wishes to encourage. The investors, meanwhile, gain low-risk income at a higher interest rate than they could gain from most other bonds.

Although your monthly payment may be higher, you can save tens of thousands of dollars in interest charges by shopping for the shortest-term loan you can afford. For each $100,000 you borrow at a 7% annual percentage rate (APR), for example, you will pay over $75,000 less in interest on a 15-year fixed rate than you would on a 30-year fixed rate.

Borrowers can save thousands of dollars in interest charges on their mortgages by shopping for the lowest-rate with the fewest points. Each point is 1 percent of the loan amount. Lenders charge points as a way to make a profit, and borrowers generally pay points in exchange for lower rates.

On a 15-year $100,000 fixed-rate, just lowering the APR from 7% to 6.5% can save you more than $5,000 in interest charges over the life of the loan, and paying two points instead of three would save you an additional $1,000.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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The First Step is to select a real estate agent who will help you find the home that fits your needs and budget. It is important that you feel comfortable with your agent and that you are able to communicate what type of house you want. The better informed your agent is of your desires, the better job he can doing locating the house that meets your needs.

The Second Step is deciding where you want to live. Consider the schools in the area, if you have children, and how far are you and your spouse willing to drive to work.

The Third Step in the process is selecting the mortgage lender who will finance your home. Your real estate agent may have a recommendation, or you can check with the financial institution where you currently do your banking. Many experienced in real estate recommend selecting your mortgage lender prior to beginning the hunt for a house; that way you can get a pre-approval from your lender and will know how much you can borrow and thus the price range of the house that you can afford.

Financial contracts can be very confusing. Before signing yourself to a major long term commitment have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

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