Market Trends and Condition

The record low for the 30-year fixed rate mortgage hit 3.94% nine weeks ago. This week the rate ticked down to 3.99% from 4% last week. These numbers are according to the National Bureau of Economic Research. The average rate for a 15-year fixed mortgage edged down from 3.30% to 3.27%. Its lowest level was also nine weeks before at 3.26%.

Mortgage rates usually follow the yield on the 10-year Treasury note. That yield rose this week. Investors were encouraged by central banks’ joint effort to ease lending standards. This buoyed investor attitude translated into movement of money from the Treasuries into stocks. When buying of Treasuries declines, the yields rise.

It’s unfortunate that the National Association of Realtors’ existing home sales numbers are followed so closely by many, and decisions made from their reports. That’s because NAR has just reported that their numbers have been “in error” for the past 5 years. The association says that their next report due out in December will revise sales downward all the way back to 2007.

NAR hasn’t revealed the magnitude of the downward revision, but Lawrence Yun, their chief economist, has stated that the revision decrease will be “meaningful.” He says “For the real estate business, this means the housing market’s downturn was deeper than what was initially thought.” Several reasons were given for the over-inflation of home sales for the period, including:

Foreclosure filings fell in November, but the number scheduled for bank auctions jumped significantly. A new wave of foreclosures are expected in the new year. The fall in November is considered a normal seasonal event, but the number of homes scheduled to go to auction indicates only a temporary reprieve for many.

In November, the number of foreclosure filings was 224,394, a 3% decline from October. It was a 14% decline year-over-year. However, during November one in every 579 housing units received either a default notice or went to auction or repossession, according to RealtyTrac.

Here are some stories of interest in this week’s real estate news.

Recent Mortgage Rates

The most recent mortgage rate breakdown by region shows:

• Southeast Region: 4.06% with 0.9% discount points
• North Central Region: 3.97% with 0.7% discount points
• Southwest Region: 4.04% with 0.7% discount points
• Northeast Region: 4.00% with 0.7% discount points
• West Region: 3.96% with 0.8% discount points
These current rates are well below their 2011 highs. Beginning in May, rates dropped for 5 consecutive months before reaching October’s “rock-bottom” levels.

Top Four States for Future Job Growth

According to a Forbes article, the top four states for job growth are:

1. Texas
2. Nevada
3. Arizona
4. New Mexico

This is about the foreclosure wave that is coming that will drastically change the values over the next six months. I spoke about this 6 months ago. Yes, there is money to be made but there is a lot more money to be lost by inexperienced investors. I know you all think you are the exception, but just be careful so you'll have money when the time is right.

Read the whole story here:

http://www.cnbc.com/id/45682960

http://money.cnn.com/2011/12/01/news/economy/robert_shiller_best_advice....
Be sure to click on the blue link: Home prices might collaspe. He sees evidence of a recovery, the collaspe is older news that he saw the bubbles burst.

while property values continue to FALL

Of course, you know my opinion of Realtors anyway, but here is finally an admission of what I've been saying. NAR has been pumping sunshine up everyone's arse for years. Read the story here:

http://www.cnbc.com/id/45659547

below is a link to an article that basically states that due to the bad economy baby boomers are sitting in their homes in the burbs that they do want to sell, and downsize, but are waiting for the housing market to turn around...

I'm thinking, as an investor, if we can find these homeowners and buy their properties, and then find them a smaller property to sell to them, we could get two deals out of each deal... just a thought

Valerie

http://www.boston.com/realestate/news/blogs/renow/2011/10/does_the_tough...

Here is a story about Congress searching for a way to pay for one of their pet projects. It has a good chance of passing. Read the whole story here:

http://www.cnbc.com/id/45642408