When you own a home with a spouse or partner, the issue of what's mine, what's yours, and what's ours can be a divisive one.
Each household has its own money management methodology and, according to financial talk-show host Suze Orman, most leave significant room for improvement.
In this 4-minute piece aired on NBC's The Today Show, Orman talks about co-managing finances with topics including:
Being aware of money is the first step towards protecting it.
Some days, newspaper headlines are a terrible place to get your real estate news.
Today is one of those days.
After the September New Home Sales report showed sales volume down from August, the mainstream media jumped on the story:
But the headlines miss the point, somewhat. Yes, home sales volume is important to housing, but it's not as important as home supply.
A deeper look at the New Home Sales data reveals an interesting comparison point:
In other words, sales outpaced supply -- a running theme this year and a positive signal for housing.
Since peaking in January 2009, the supply of newly-built homes has now dropped by 40 percent. The average sale price is up 15% over the same period.
This is why you can't get your real estate news from the headlines. You have to dig a little bit deeper to get the real story.
September's New Home Sales report was plenty strong. The housing market recovery continues.
The national housing supply fell to a 2-year low last month, according to the National Association of Realtors®.
At the current sales pace, existing home inventories would sell out in 7.8 months -- 30 percent faster versus November 2008.
For a 10-month window, that's a major housing supply reduction and it helps to explain why multiple-offer situations have been so common lately.
Moreover, the same report from NAR showed sales activity reaching its highest point since July 2007, too.
If you're looking for evidence that the long-standing Buyers Market is ending, this month's Existing Home Sales report might be it.
Even median sales prices -- typically dragged lower by distressed and foreclosed properties -- declined at its slowest pace in a year. The market may have turned a corner.
Home prices are rooted in the basic economics of supply and demand.
Since March 2009, the market has been moving in the right direction. Low mortgage rates, ample housing supply and a first-time home buyer tax credit fueled buy-side demand so that home prices are now rising in many U.S. markets.
If home supplies stay on this path into 2010, expect home prices to rise even more.
Mortgage rates are higher after the Federal Reserve released the internal notes of its September 22-23, 2009 meeting.
Known as the "Fed Minutes", the report details the conversation and cross-currents that led to the Federal Reserve's decision to vote "unchanged" on the Fed Funds Rate after its last meeting.
The Fed Minutes are the lengthy companion to the more famous, succinct post-meeting press release.
As a comparison:
The extra level of details is a big deal because Wall Street is perpetually in search of clues about what the Federal Reserve is going to do next.
In the past week, multiple Federal Reserve members hinted that the Fed Funds Rate may rise as early as April 2010. Fed Chairman Ben Bernanke even alluded to it, too.
The minutes revealed that the economy may improve even faster than was previously expected, too.
These acknowledgements are part of the reason why mortgage rates are up. Because the Fed Funds Rate rises to accommodate a growing economy, the prospect of economic recovery is drawing money into the stock market and away from mortgage-backed bonds.
Less demand for bonds means a lower prices which, in turn, leads to higher rates.
For the seventh consecutive month, foreclosure activity in the U.S. was dominated by a tiny subset of states.
As reported by RealtyTrac.com, more than half of September's foreclosure-related activity occurred in just 4 states:
These states represent just 22.05 percent of the total U.S. population.
Overall, foreclosures are up 29 percent from September 2008 and, while, the data seems negative, defaults are creating some interesting buying opportunities.
Foreclosed homes often sell at a discount as compared to non-foreclosed homes. Cheap prices, low mortgage rates and willing buyers have helped to spur home sales in many U.S. markets. In August, "distressed homes" accounted for one-third of all existing home sales.
That said, buying foreclosures isn't for everyone.
First off, foreclosed homes are often sold "as-is" and may be in perfect condition, or may be inhabitable. If the property falls into the latter category, it's important to get estimates for the work needed to make the home livable. Suddenly, the home may not seem like such a "steal".
And, secondly, buying a home in foreclosure can be a 3-month process or more. For some people, this is just too long.
Buying a home in foreclosure is fundamentally the same as buying a "regular" home -- there's a contract and a closing. But most of the steps in between are different.
Read the complete foreclosure report, plus take a peek at foreclosure heat maps on the RealtyTrac website. If you like what you see, talk to your real estate agent about what to do next.
According to the Freddie Mac weekly mortgage rate survey, the relative cost of a 5-year ARM is dropping versus its 30-year fixed-rate cousin.
During the first 5 months of 2009, the products ran neck-and-neck. Today, they're a half-percent apart.
On a $200,000 home loan, that's a difference of $60 per month.
Adjustable-rate mortgages aren't for everyone, but for the right household, they can be a terrific fit. A few scenarios that warrant consideration of a 5-year ARM include persons:
Additionally, with homeowners with existing ARMs may want to consider taking on a new ARM, if only to extend their initial, fixed rate period.
Before choosing an ARM, make sure to speak with your loan officer about how adjustable-rate mortgages work, and what causes them to adjust. Although conventional ARMs are limited in how far they can adjust, it's important to know the risks.
Buoyed by a generous tax credit, affordable homes, and low mortgage rates, the Pending Home Sales Index posted its seventh consecutive monthly gain in August.
It's the longest winning streak in the index's history and the highest reading in 2-1/2 years.
It's also another signal that the housing market is in recovery.
"Pending home sales" are a forward-looking indicator, measuring the number homes under contract to sell, but not yet closed.
Historically, 80% of homes under contract close within 60 days. Most others close within 120 days.
It's no wonder home values are rising in so many markets.
Home buyers -- take note. If you're plan to purchase a home between now and the New Year, expect that the recent run in pending sales will turn into run of closed sales which, in turn, should pump prices up and drop home inventory.
With mortgage rates hovering near 4-month lows, the best way to find a value in housing may be to act sooner rather than later.
Mortgage markets rallied for most of last week, but ended Friday on a sour note.
After touching their lowest levels since Memorial Day, mortgage rates spiked to close out the week.
Despite pricing getting worse by 1/4 percent Friday afternoon, however, mortgage rates still managed to fall for the second consecutive week.
There were two main storylines last week on Wall Street. The first was data-driven.
After several months of better-than-expected results, the September Non-Farm Payrolls report fell well short of expectations.
According to the government, another quarter-million jobs were lost last month, raising the 12-month tally to 5.75 million. Additionally, consumer confidence figures dropped.
The stories are related and it brings us to the second storyline. Without job growth, some analysts are openly wondering how the economy will ever start to expand. Especially with the Holiday Shopping season getting underway.
The negative vibes were enough to shake off an overwhelmingly positive series of housing reports. Both Pending Home Sales and the Case-Shiller Index continue to gain.
This week, without much economic data set to release, look for market psychology to play an important role in the direction of mortgage rates. The last two times that mortgage rates fell to these levels, they quickly reversed.
All the pieces are in place for that to happen again.
It's a sensational headline -- "The Sellers' Deadly Sins" -- but the message is clear. Home sellers make mistakes that not only cost themselves thousands, but sometimes cost the sale, too.
NBC's The Today Show lays it out cleanly in this 5-minute video:
But, be aware. At the video's end, there's a piece of advice that may sound extremely self-serving coming from a real estate professional. Don't let it turn you off. The video's overall message is spot-on and the advice is real-world tested.
Selling a home is a process. Make sure to do it properly.
An Illinois Residential Mortgage Licensee - Equal Housing Lender
Contact Us | What is CMPS®? | Testimonials | Best Time to Buy | Home | Loan Application | Loan Application Info | Mortgage Calculators | Customer Login | 9 Steps to Ownership | How to Sell Your Home | Home Price Index | Jim's Daily Blog | Win $1000 | Chicago Experts
Copyright © 2010 Chicago BancorpPortions Copyright © 2010 a la mode, inc.Another XSite by a la mode, inc. | Admin Login| Terms of Use| Site Map
