The 30-year fixed-rate mortgage averaged 4.42% for the week ended Thursday, down slightly from the prior week's 4.44% average and 5.12% a year ago. The average for 15-year fixed was 3.9%, down from 3.92% the previous week and 4.56% a year earlier.

The 30 and 15-year fixed mortgage are at their lowest points since Freddie began tracking such rates, in 1971 and 1991, respectively.

Source: Greater Albuquerque Board of Realtors -19 August 2010

Mortgage applications to purchase homes rose 0.3 percent on an adjusted basis last week, virtually unchanged from the previous week, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, purchases decreased 0.3 percent compared with the previous week and were 34.1 percent lower than they were the same week a year ago.

This trough in purchases comes despite the fact that 30-year fixed rate mortgages are at the lowest level they’ve been since the MBA began keeping track:

30-year fixed-rate mortgages decreased to 4.57 percent from 4.60 percent.
15-year fixed-rate mortgages decreased to 3.95 percent from 4.03 percent.
1-year ARMs decreased to 7 percent from 7.10 percent.

Source: Greater Albuquerque Board of Realtors -11 August 2010

Monthly Highlights

• July saw a 14.06 percent decrease in pending sales and 24.22 percent decrease in closed sales, when compared to the previous year.

• The median sale price for single-family detached home sales rose in July to $186,000, up 0.54 percent from the previous year and up 2.76 percent
from the previous month.

• Active listing inventory for single-family, detached homes is at 5,803, up 5.97 percent from the previous year.

To View the Complete July Albuquerque Metro Market Report!

Source: Greater Albuquerque Board of Realtors -06 August 2010

Is Rio Rancho a Great Town or What.....

WINNER

Top 100  Rank: 51

Population: 82,000

This safe, family-friendly suburb of Albuquerque is home to events like the annual Pork & Brew, a large BBQ festival and competition.

Rio Rancho has a new downtown area that is a developing hub for recreation and business. It currently houses City Hall, HP call center and the Santa Anna Star Center, a sport and concert arena.

Foreclosures have been a problem in New Mexico and Rio Rancho is not an exception. The plus side: House hunters can snap up bargains.

Source: CNN Money.com - 18 July 2010

Interest Rates Drop to 4.60%

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending July 30, 2010.

The Market Composite Index, a measure of mortgage loan application volume, increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 1.4 percent compared with the previous week.

Source: Greater Albuquerque Board of Realtors -03 Aug 2010

2nd QTR 2010 Market Recap for the Greater Albuquerque Metro Area

• Homes sales for single-family detached homes in the Greater Albuquerque Market Areas are up 20.55 percent from 2nd Quarter 2009; condo/townhome sales saw an increase of 48.09 percent from the same period.
• 11 MLS areas in the City of Albuquerque and City of Rio Rancho saw positive increases in both home sales and sales prices when compared to 2nd Quarter 2009. 

To View the Complete Albuquerque Metro Market Report!

Source: Greater Albuquerque Board of Realtors - 21 July 2010

Foreclosures are on the rise and distressed homeowners are seeking alternatives to losing their homes to foreclosure.  But with millions of distressed homeowners, others are deciding to short sell their homes or just walk away from homes that have lost value.  And most aren't worrying about the consquences. 

Before you make this decision, keep in mind that banks are taking a harder look at everyone's financial situations.  You need to make a honest effort to address your financial situation and be prepared to share your finances with the bank to justify your need for a loan modification or short sale.  But for those who just want to "walk away" the consequences could be dire.

To learn more view the story below featuring Deanna Dopslaf, The Red Truck Realtor! 

Monthly Highlights

•723 single-family detached homes were reported sold for June 2010, an increase of 11.40 percent from a year ago.

•The median sale price for single-family detached home sales in June climbed to $181,000, the highest monthly median sales price since Aug. 2009.

•Pending home sales for single-family detached homes in the Greater Albuquerque market areas are up 7.52 percent from the previous month.

To View the Complete June Albuquerque Metro Market Report!

Source: Greater Albuquerque Board of Realtors -12 July 2010

"With mortgage rates falling to historic lows, refinance activity has been strong over the past three months," said Frank Nothaft, Freddie Mac's chief economist. The Bureau of Economic Analysis reported that the effective mortgage rate of all loans outstanding was just below six percent in the first quarter of 2010, the lowest since the series began in 1977. Since the start of the second quarter, two out of three mortgage applications on   average were for refinancing, according the Mortgage Bankers Association.

Household balance sheets also improved in other ways over the first three months of the year. The Federal Reserve (Fed) reported household net worth rose by almost $1.1 trillion in the first quarter of 2010. The share of credit card loans that were 30-days or more past due fell to the lowest since first quarter of 2002, according to the American Bankers Association. Finally, the aggregate household debt burdens were at a level not seen since the third quarter of 2000, based on the Fed’s debt service ratio.

Source: Greater Albuquerque Board of Realtors - 08 July 2010

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.