Fixed Mortgage Rates Hold Near Record Lows

In Freddie Mac's results of its Primary Mortgage Market Survey®, average fixed mortgage rates were down slightly and hovering just above their record lows as markets waited for the Federal Reserve's monetary policy announcement. The 30-year fixed-rate mortgage averaged 3.88 percent and has been below 4 percent all but one week in 2012. The 15-year fixed, a popular refinancing choice, averaged 3.12 percent.

30-year fixed-rate mortgage (FRM) averaged 3.88 percent with an average 0.7 point for the week ending April 26, 2012, down from last week when it averaged 3.90 percent. Last year at this time, the 30-year FRM averaged 4.78 percent.

15-year FRM this week averaged 3.12 percent with an average 0.6 point, down from last week when it averaged 3.13 percent. A year ago at this time, the 15-year FRM averaged 3.97 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.85 percent this week, with an average 0.6 point, up from last week when it averaged 2.78 percent. A year ago, the 5-year ARM averaged 3.51 percent.

1-year Treasury-indexed ARM averaged 2.74 percent this week with an average 0.6 point, down from last week when it averaged 2.81 percent. At this time last year, the 1-year ARM averaged 3.15 percent.

According to Frank Nothaft, vice president and chief economist, Freddie Mac:

"Fixed mortgage rates held near record lows this week as the markets waited for the Federal Reserve's (Fed) April 25th monetary policy announcement following two days of deliberations. The Fed stated that it expects economic growth to remain moderate and then pick up gradually. In addition, it noted that labor market conditions have improved in recent months and it anticipates the unemployment rate will decline gradually.

"The housing market has also shown some improvement as well. The Federal Housing Finance Agency's purchase-only house price index rose at a monthly rate of 0.3 percent in February. Moreover, 12 out of 20 metropolitan areas experienced increases over the month, according to the S&P/Case-Shiller® 20-city indexes, led by a 2.1 percent gain in Phoenix. New home sales in March were stronger than the consensus market forecast and February's sales were revised upwards to the strongest pace in almost two years. However, the Fed's statement warned that despite some signs of improvement, the housing sector still remains depressed."


April 27, 2012, Published by Realty Times

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Which Housing Style Is Right For You?

Shopping for a home is an exciting experience but there are many things to consider, starting with the fundamental question: which housing style is right for you?

You might be thinking, I want to own my own home which translates in your mind to a single- or double- story house. However, your finances, where you live, affordability, and practicality may factor in and cause you to consider other options. So let’s explore some of them.

Single-Family Housing. When many people think of owning their own house, the single-family residence first comes to mind. This type of home is the most independent. The walls are typically not joined together with any other homes. The heating and plumbing systems are separate. And, while, the house may be in a planned community that has covenants, conditions, and restrictions (CC&Rs) regarding what you can do to your home on the outside, there is generally the most freedom with this type of home. Some of these homes have additional fees (Mello-Roos fee) to pay for schools in the area.

These residences are usually detached houses and have land surrounding them unless, it’s a zero-lot-line house. Then the house sits on or very close to the property line. These houses are packed into areas and may offer extra space inside but at the compromise for little land outside.

Row houses are often situated this way. However, while the single-family home can have a little different look, the row houses are generally identical and lined up side-by-side, thus the term: row houses. Sometimes there is a small backyard area behind the row house. The row houses also usually share a wall or two with the other houses. This also makes them more affordable than the detached, single-family house.

The Duplex. This type of house shares a roof and one wall but the other side is separate from other homes. You can also choose from triplexes and quadruplexes. Some buyers decide to go for this style of housing because they can live in one of the units and rent out the others to help pay for their mortgage. This allows them to save to and, later, if they choose, to purchase another home and rent out all of the units.

Townhouse. This style of house shares a wall and common areas such as parking lots, and walkways.

Condominiums. These units often look a lot like apartments. In fact, some apartments have been part of a condominium conversion. The individual unit is owned by a homeowner. Often the homeowner purchases the unit and rents it out. Homeowners have an ownership interest in the common elements which can include halls, stairways, elevators, parking lots, open areas, and other amenities.

As with townhouses and even single-family homes that are in planned communities, there is a fee for the care of the common areas.

The Microhouse. They may be small as the name states but they can be plenty big especially for those who are living alone or traveling frequently and simply want an easy-to-care-for home.

These micro or mini houses can be just a few hundred square feet to a thousand. Often they are vertically built and they have more living space by the use of lofts and smaller- than-usual furniture and appliances. Some have unique features such as a deck on the roof.

So whether you’re shopping for a single-family, detached home or a minihouse, having a basic understanding about what you can expect with each housing style is an optimal way to begin your search. Then let your experienced real estate agent guide you to the suitable options that can best meet your specific needs.


Written by Phoebe Chongchua
April 26, 2012

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Euro Zone Troubles Continue to Help Low Mortgage Rates Remain Firm

It was a mixed week for investors who dealt with corporate earnings here in the U.S. and more disappointing news coming from Europe. Many corporate earnings were better than expected and had investors optimistic, as least for a little while. Euro zone troubles are continuing to help low mortgage rates remain firm as more countries in Europe are having difficulty with austerity plans. Freerateupdate.com's survey of wholesale and direct lenders shows that all mortgage rates were unchanged over the week even after stocks rose for several days on earning's reports.

Current 30 year fixed mortgage rates are at 3.750%, 15 year fixed mortgage rates are at 3.000% and 5/1 adjustable mortgage rates are at 2.375%. For these low mortgage rates, which are available with 0.7 to 1% origination fee, borrowers must have a history of good credit. According to the U.S. Census Bureau and the Department of Housing and Urban Development, Housing Starts for the month of March dropped 5.8 percent from February, but Building Permits increased 4.5 percent and are at the highest level since September, 2008. Existing Home Sales were down in March 2.6 percent lower than February according to the National Association of Realtors.

On the positive side, this number was still 5.2 percent higher than a year ago. The Refinance Index rose by 13.5 percent for the week ending April 13th according to the Mortgage Banker's Association. Most of these refinances, 32 percent, were for the Harp 2.0 refinance program which is turning out to be probably the most successful program introduced so far. With Harp 2.0, many borrowers who are underwater can refinance without the need of an appraisal and very little documentation. Since this program has become very competitive with lenders, borrowers are urged to compare several mortgage rates that are available to them in their area. Doing this online provides borrowers and easy and efficient way to do this at their convenience any time day or night.

Current FHA 30 year fixed mortgage rates are at 3.375%, FHA 15 year fixed mortgage rates are at 2.875% and FHA 5/1 adjustable mortgage rates are at 2.875%. The increase in the FHA mortgage upfront and annual mortgage insurance premiums may be having some impact on home purchases, at least for awhile. The effects of these increases usually last for just a short time until consumers are used to the changes. Still, having lower down payment requirements than conforming mortgages, first time home buyers will continue to use FHA mortgages for financing. Even though the upfront mortgage insurance premium and other FHA fees make FHA closing costs higher than conforming mortgages, FHA allows these costs to be added to the loan amount in most circumstances. Coming July, the FHA streamine refinance will be available for existing FHA borrowers with reduced upfront and annual premiums which will, undoubtedly, bring another wave of refinances.

Jumbo mortgage rates all remained the same this week. Current jumbo 30 year fixed mortgage rates are at 4.250%, jumbo 15 year fixed mortgage rates are at 3.375% and jumbo 5/1 adjustable mortgage rates are at 2.500%. These are the lowest jumbo mortgage rates available with 0.7 to 1% origination fee for borrowers who have excellent credit and qualifications. Jumbo mortgages are needed for financing above the conforming and FHA loan limits and, since FHA increased the mortgage premiums, more borrowers who meet the qualifications will be looking for regular jumbo mortgages. Full documentation for employment, income and assets is required as lenders are very careful with approvals for these loans because they are not government insured or sold to Fannie Mae or Freddie Mac.

MBS prices (mortgage backed securities) did not move too much this week. Mortgage rates are affected by MBS prices but move in the opposite direction. Mixed reports came out this week with The Philly Fed Index falling and the Index of Leading Indicators rising. IBM and Intel earnings were not as impressive as what investors expected. Stocks increased for several days, but Euro zone problems are still driving markets. German business confidence rose in April while Spanish bond yields have been both up and down over the week. Further issues include austerity plans in Holland which collapsed. In France, the Presidential election is causing a stir with the French opposition candidate who is not an austerity supporter, Francois Hollande, moving to the second round. In China, manufacturing activity continued to contract in April. With a global economy, investors will continue to watch these developments closely.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.


Written by Ed Ferrara
April 25, 2012

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Nevada gaming win sees big gain in February — expect at North Tahoe

CARSON CITY, Nev. — Welcome back, Joe Six Pack.

Resorts across the state are hailing February's gaming numbers as growing evidence that the average tour ist is returning to Ne vada casinos.

In both December and February, the total gaming “win” — the casinos' take from gaming, excluding food, drinks, lodgings or other revenue — increased despite decreases in baccarat.

Gaming Control Board analyst Mike Lawton said that hasn't happened since May 2007.

The total win of $932.2 million was up 5.7 percent despite the fact that the game and table win (which excludes slots) was down nearly 1 percent compared with a year ago.

Table games brought in $360.6 million for resorts statewide.

Slot win totaled $571.5 million, 10.3 percent higher than the previous year and the largest percentage increase since September 2007.

Carson Valley casinos reported a 3.5 percent increase to $7.86 million. But it was an easy comparison, since win was down 2.9 percent in February 2011.

For the seven months of the fiscal year to date, that still leaves Carson, which includes portions of Doug las County, down 1.2 percent.

“The core customer really came through heavy this month,” Lawton said.

For much of the past two years, monthly casino win has depended largely on the high rollers.

February also was the fifth straight month of year-over-year increases — the first time that's happened since 2006. That increase came despite the fact that Chinese New Year was in January this year. That event — a major draw, particularly for high rollers — was in February a year ago.

Every reporting area in the state except North Lake Tahoe and parts of Elko and Laughlin counties was up in February.

Baccarat was down 14.3 percent to $408 million as both the play and the win percentage fell.

Minus baccarat, total statewide win would have been up 10.4 percent over last year.

North Shore casinos at Tahoe suffered a 7.5 percent decrease after a 15.5 percent decrease a year ago. The major culprit was the blackjack tables, which saw a $242,000 decrease in win — nearly all of the area's $249,000 decrease. That dragged game and table win down almost 40 percent.

South Shore casinos at Tahoe had a banner month. Total win of $15.1 million is 10.25 percent above last February. That is the third consecutive month of increases at Stateline and puts those casinos 6.44 percent ahead of where they were at this point last fiscal year. Both slot win and game and table win were up more than 10 percent. Slot play was up nearly 14 percent.

The amount wagered on games was actually down 15.5 percent, but the hold percentage — what the casinos kept — was up from 13 percent a year ago to 17.2 percent this February.

Washoe County casinos as a whole did very well, posting an 8.1 percent increase to $60.3 million.

Churchill County casinos, like South Shore, had an excellent month. Total win increased 15 percent to $1.97 million. Blackjack win jumped 110 percent, but that only accounts for $34,000 or so of the total. Total slot win was $1.89 million, a 14.5 percent increase.

The Las Vegas Strip was up just 3.3 percent to $530.7 million. But with the local markets in Clark County posting 12.4 percent gain overall, the county finished February 5.55 percent up.

Area February Win Percentage Change

Statewide $932.27 million 5.7%

Carson Valley $7.86 million 3.51%

South Shore $15.1 million 10.25%

North Shore $1.62 million -7.49%

Washoe County $60.26 million 8.16%

Reno $43.97 million 8.18%

Clark County $812.1 million 5.55%

Las Vegas Strip $530.69 million 3.31%

Published by North Lake Tahoe Bonanza

Written By Geoff Dornan
Nevada Appeal

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Real Estate Outlook: Vacation Sales Surge

According to the National Association of Realtors' 2012 Investment and Vacation Home Buyers Survey, there was a surge in sales of both investment in vacation homes in 2011.

NAR Chief Economist Lawrence Yun said investors with cash took advantage of market conditions in 2011. "During the past year investors have been swooping into the market to take advantage of bargain home prices," he said. "Rising rental income easily beat cash sitting in banks as an added inducement. In addition, 41 percent of investment buyers purchased more than one property."

Yun said the shift in investment buyer patterns in 2011 shows the market, for the large part, is able to absorb foreclosures hitting the market.

Increased investor purchases are partly responsible for the large percentage of all-cash purchases seen in the last year. They make up around one-third of all purchases. Forty-nine percent of investors paid cash in 2011.

"Clearly we're looking at investors with financial resources who see real estate as a good investment and who aren't hesitant to use cash," Yun said. Of the buyers who didn't use all cash they paid a hefty average 27 percent downpayment.

As opposed to investment purchases, which were made out of the desire for rental income, vacation homes were driven by lifestyle factors and were purchased by households making an average of $88,000 a year.

What portion of the market are these vacation sales? They accounted for 11 percent of all sales in the market.

Overall mortgage applications increased 4.8 percent from last week, according to the Mortgage Bankers Association (MBA). The refinance share of the market decreased again to 71.2 percent. Just a few months back it was over 80 percent.

"Applications to buy a home picked up last week, and are running more than two percent above the level reported at this time last year. Home purchase applications for conventional loans are now about 10 percent above last year's level," said Michael Fratantoni, MBA's Vice President of Research and Economics. "Applications for government loans increased by more than 10 percent over the week, for both purchase and refinance, likely spurred by borrowers seeking to apply before scheduled increases in FHA mortgage insurance premiums at the beginning of April."


Written by Carla Hill
April 9, 2012

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It's Buying Time Again, Big Time

If you've got the income. If you've got plenty of tenure on the job. If your credit is solid. If you can otherwise past muster at the mortgage loan desk. If it's cheaper for you to buy than it is to rent.

Yes, there are lots of "ifs," but it's one of the best times in America to buy a home. And it won't last forever.

To wit

• Distressed homes – foreclosures and short sales sold at deep discounts – accounted for 34 percent of February sales, according to the National Association of Realtors (NAR). The bargain basement is open for business.

• Investors know a party when they see one. They snatched up 64.5 percent more homes in 2011 than in 2010 and now account for nearly one in every four homes sold, NAR reported.

• The second home market is back with a vengeance. Both investors and playhouse buyers are jumping on this bandwagon. They pushed vacation/second home sales up 7.0 percent in 2011.

• Meanwhile, owner-occupied purchases fell 15.5 percent last year.

Numbers talk

The median investment-home price was $100,000 in 2011, up 6.4 percent from $94,000 in 2010, which means you may have already missed rock-bottom in this sector.

The median sales prices for vacation properties was $121,300 in 2011, down 19 percent from 2010, which means you may still have a shot at the basement here.

Likewise, NAR reported the median price of all single-family homes dropped 4 percent from $170,600 to $163,500 in the fourth quarter 2010 to 2011 and, during the same period, condo prices fell almost 2 percent $163,500 to $160,800.

Housing market forecasts for a recovery remain mixed, but it's about when, not if. If this isn't the Year of the Dragon for the housing market, it could begin to breathe fire next year.

But consider many of those forecasts are based on lagging information. One study by John Burns Consulting says many are lagging by a full quarter and prices have been rising in many markets for a full quarter.

And then there are those record low interest rates.

Don't get behind the curve and wait until a line forms and multiple offers are the norm, rather than the exception.

"Mortgage rates are near record lows and home prices may be within reach of many consumers who want to buy in today's market," said NeighborWorks America Director of Homeownership and Lending Marietta Rodriguez.

"But there are more things to consider than low mortgage rates and home prices when your plan is to be a successful long-term homeowner," Rodriguez added.

NeighborWorks' advice

• Be mortgage ready. If you haven't already, check your credit reports from the only federally-sanctioned source of free reports, AnnualCreditReport.com, to make sure your credit is mortgage worthy. Don't get taken by sound-alike websites that offer you "free" credit reports that are only "free" after you buy a credit monitoring service.

Looking for a mortgage with weak credit could result in a higher than anticipated mortgage cost or no mortgage at all. Work with a homeownership advisor at aNeighborWorks HomeOwnership Center or other NeighborWorks organization to start the homeownership process.

• Know all your costs. More than just a mortgage payment, homeownership comes with insurance, tax, utility, maintenance and transportation costs, among others. Include them in your budget to determine what is truly affordable.

• Know your mortgage. Fixed-rate mortgages (FRMs) offer payment certainty, while adjustable rate mortgages (ARMs) frequently provide lower initial monthly payments, but those low rates could rise considerably over time. Work with a trained homeownership advisor to help get the right mortgage loan.

• Hire good help. Get a licensed real estate agent who knows the market. It's easy to go digital and browse for housing. Actually going through the process and closing on a home without professional assistance is something else. Ask anyFSBO (for sale by owner).

• Take your time. There may be some pressure to get in the market at today's affordable prices and low interest rates, but if you move too quickly that could be a mistake. Take the time to obtain a home inspection, learn the neighborhood, investigate the school district and buy only what you can truly afford, not a home based on the largest loan the lender will lend.


Written by Broderick Perkins
April 12, 2012

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What's happening in our community

INCLINE VILLAGE, Nev. — Sure, now the snow decides to come to Incline — well forget it for this season. We are over the snow thing and have moved into beach days. Don't get all worried about Friday the 13th tomorrow — with the predicted snow just stay inside and away from black cats.

Monday, April 16 features two unpleasant events. Yes, taxes are due on April 15, but since it is a Sunday you can still file on Monday. And starting Monday, dogs are no longer allowed at Ski Beach. Just one more important reminder about dogs. It is the responsibility of each owner to clean up the doggy do-do; just putting it in a plastic bag and leaving it behind for someone else to throw away is really disgusting. Please be responsible pet owners.

Be sure to go see Twain on Taxes at 7 p.m. Saturday, April 21 at the Toccata Performing Arts Theater in the Village Center. Hear Mark Twain (McAvoy Layne) divulge humorous differences between the taxidermist and the tax collector. Tax collectors, beware! For information and to purchase tickets go to www.toccatatahoe.com.

Star Follies tickets are now on sale at the Potlatch. Be sure to attend this annual fundraiser for our schools. Star Follies is on April 27 and 28 at the Cal Neva.

Another event to attend is the Tahoe Family Solutions annual campaign dinner on Thursday, May 3 at Big Water Grille. Call TFS at 775-298-0004 for information. Limited seating is available so make reservations early.

Unfortunately the bowling trophy will not be at Incline Bowl. Our team gave it a valiant effort though and definitely had fun. Thanks bowlers!

Happy anniversary to Jim Glazier and Millie Szerman on April 15.

Celebrating birthdays this week: Mary Patterson on April 12; Gerry Eick on April 13; John Paganelli on April 14; Julius Mastro, Sandford Neville and Cyndi Shuey on April 15; Justin Kaamasee on April 16, Allen Ferris on April 17; Aga Dabrowska on April 18. Also, a special shout-out to the extremely hard-working Pat Greenlaw, officer manager and circulation director for the Bonanza and Sierra Sun, whose birthday is April 12.

The best deal or steal in the village is to attend the Empty Bowls event on Thursday, April 19. From 5:30-7:30 p.m. at Incline Middle School in the Forum. For only $10 pick out a hand made ceramic bowl created by an art student and enjoy a bowl of soup. Plus proceeds from this will help our local food shelf, Project MANA.

Published by the North Lake Tahoe Bonanza

By Jean Eick
Special to the Bonanza

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