Mortgage Bankers Association Index Rose
March 8, 2010
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending February 26 rose 14.6% to approximately 629.9. Purchase volume increased 9% to 214.5. Refinancing applications jumped 17.2% to 3,054.3.
Consumer spending did indeed rise 0.5% to approximately $52.4 billion in January, slightly more than economists had anticipated. Personal income had increased 0.1% to right at $11,400,000,000 billion.
The Institute for Supply Management reported that the monthly index of manufacturing activity was 56.5 in February after reaching 58.4 during January. Nevertheless, it was the seventh straight month of expansion. A reading above 50 generally signals expansion.
The Commerce Department reported that total construction spending fell 0.6% in January after falling 1.2% during the month of December. Economists had expected a decrease of 0.7%.
The monthly index of non-manufacturing activity rose to 53 in February from 50.5 in the month of January. A reading above 50 usually signals expansion. Economists had anticipated a reading of 51. The reading was the highest since October 2007.
The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, fell 7.6% in January after a revised 0.8% increase in December.
The Labor Department reported productivity rose at an annual rate of 6.9% for our fourth quarter. Labor costs fell at an annual rate of 5.9%.
Factory orders rose approximately 1.7% in January, slightly below the 1.8% increase economists had anticipated. It was the fifth straight gain and follows a 1% increase in December.
The unemployment rate held at approximately 9.7% during February. Employers cut approximately 36,000 jobs in February, far fewer than expected. The four-week average for continuing jobless claims fell 134,000 to 4.500,000 million jobless claims.
Upcoming on the economic calendar are reports on wholesale trade on March 10, international trade on March 11 and retail sales on March 12
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Home Sales Drop in December 2009
February 2, 2010
Even though November 2009 reported home sales being up over 7%. Existing home sales fell 16.7% in December to a seasonally adjusted annual rate of 5.45 million units from 6.54 million units in November. The drop was largely due to the anticipated expiration of a tax incentive for first-time homebuyers, which has since been extended and expanded. The inventory of unsold homes on the market fell 7% to 3.3 million, a 7.2-month supply at the current sales pace.
A decline of around 10% was the industry consensus.
Here’s the full announcement from the National Association of Realtors
The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 5.7% in the fourth quarter of 2009. It was the second consecutive quarter of growth and the fastest pace since the third quarter of 2003.
The Standard & Poor’s/Case-Shiller 20-city housing price index rose a seasonally adjusted 0.2% in November. It was the sixth consecutive monthly gain and follows a 0.4% increase in October. On a year-over-year basis, the gauge was down 5.3% from November 2008.
The consumer confidence index rose to 55.9 in January from an upwardly revised 53.6 in December. The index was bench marked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.
Orders for durable goods — items expected to last three or more years — rose 0.3% in December after a 0.2% increase in November. Excluding volatile transportation-related goods, orders posted a monthly gain of 0.9%.
New home sales fell 7.6% in December to a seasonally adjusted annual rate of 342,000 units from an upwardly revised rate of 370,000 units in November.
Initial claims for unemployment benefits fell by 8,000 to 470,000 in the week ending January 23. Continuing claims for the week ending January 16 fell by 57,000 to 4.6 million.
Upcoming on the economic calendar are reports on construction spending on February 1, pending home sales on February 2 and factory orders on February 4.
For more information regarding Tulsa news, articles and commentary on homes sales, farms and commercial property in the Tulsa Real Estate market please re-visit or subscribe to our RSS Feed on our Tulsa Real Estate Mall Blog.
REALTORS Help Haiti
January 24, 2010
Dear Fellow REALTORS®, by now, we all know about the severe devastation caused by the earthquakes in Haiti. NAR is helping answer the calls for help in two key ways.
First, NAR is contributing $550,000 to charities that will help bring much-needed supplies and care to the people of Haiti. Included in that sum is $100,000 donated by our REALTOR Benefits® Program partner, Lowe’s®, which NAR matched at $100,000. From they will donate $50,000 to The Harvest of Haiti, founded by REALTOR® Patrick Moore, a 2007 Good Neighbor Award winner. Patrick has done great work for several years in Haiti supporting orphans, delivering clean water and providing medical care for more than 3,500 people a year.
NAR is also contributing $500,000 to the Clinton Bush Haiti Fund, which is supporting earthquake recovery efforts with immediate relief and long-term support to earthquake survivors. For up-to-the-minute information about these efforts, visit NAR’s Haiti relief page on REALTOR.org.
Second, NAR is asking for our support and accepting donations from REALTORS® through the REALTORS® Relief Foundation. Please consider giving today. To make a donation, go to , and complete the contribution form.
Dr. Martin Luther King, Jr. once said: “An individual has not started living until he can rise above the narrow confines of his individualistic concerns to the broader concerns of all humanity.”
Our fellow REALTORS® have earned a reputation for our compassionate work on behalf of others – both here in the United State and around the world. I hope you will join our latest efforts and bring that same compassion and hope to people who desperately need it.
As we all know this is a great cause, and many Haitian families and children are in great need. I must say if you have not done your part as a REALTOR® I would highly recommend taking a few minutes and contributing to this REALTORS® Relief Foundation and please take action now as Haiti really needs all of the worlds support.
I have asked my fellow Tulsa area REALTORS®, to please take a moment and help the Haitian families and children as they are such need, especially with the current tragedy and historic devastation.
So, let’s all stand up as REALTORS® not only Tulsa area REALTORS®, but throughout the nation with the compassionate hearts we are known for and do our part to help this country in need.
Once again, please take a few moments, and go to www. realtor.org/relief to make your donation.
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Housing Stats
January 15, 2010
The Housing Stats are In
As reported recently by the Institute for Supply Management the monthly index of manufacturing is on the rise. In November, the index was at 53.6 and by December, it has risen to 55.9. This was the fifth month in a row to see expansion and was the fastest pace of growth we have seen since April of 2006. Any reading above 50 signifies expansion.
Total construction fell 0.6% in November after dropping 0.5% in October as reported by the Commerce Department. This was much better than what economists had expected since they believed a decrease of .04% would occur.
Factory orders rose 1.1% in November reported by the Commerce Department, which is quite a bit more than economists had expected which was 0.5%. This marked the seventh gain in the last eight months, which follows a 0.6% increase in October alone.
The pending homes sales index an indicator that looks at the future based on signed contracts from the National Association of Realtors showed a decrease in November of 16%, which followed an increase of 3.7% in October. It is believed the decline seen in November was mainly due to the expiration of the tax credit for first time home buyers; however, this tax credit has been extended. The tax credit not only was extended for first time home buyers but also now includes move-up and repeat buyers.
Labor Department reports indicated no change in the unemployment rate in December, which is holding steady at 10%. However, employers cut 85,000 jobs. November payrolls showed that 4,000 jobs were gained which is the first gain seen since December of 2007.
Wholesalers increased their inventories by 1.5% in November as reported by the Commerce Department which was the largest gain seen since October 2004. Economists were wrong again since they had anticipated a drop of 0.2%. Sales at the wholesale level rose 3.3% in November, which was the eighth monthly gain in a row and the largest increase seen since January of 2008.
Indicators are looking good for the most part across the board with some areas of the country reporting better percentages in various areas including housing developments.
Tulsa Real Estate Market Conditions
January 3, 2010
If you compare the third quarter of 2009 with the fourth quarter of 2009, you will notice that average Tulsa home sales price remained stable at around $156,400, which was five percent more than, if you compare it to fourth quarter Tulsa home sales price in 2008. Sales volume was down a full three percent when compared to the third quarter of 2009 with 1170 sales. This on the other hand was an increase of seventeen percent when compared to the fourth quarter of 2008. The days homes stayed on the market increased by four percent when compared to third quarter but dropped a huge nine percent when compared to the same time period in 2008.
In Tulsa and the surrounding area, interest rates are at the low level of 5.5 percent. Due to this, many realtors and speculators expect to see more buyers taking advantage of these rates as well as the government tax credit that will be expiring in April.
Tulsa has received national recognition and has a reputation for being one of “America’s Most Livable Communities” in 2004 by Partners for Livable Communities, Washington D.C. and in 2006 was ranked #6 on Forbes.com list if “Best Cities for Jobs.”
Tulsa and the surrounding area are home to many wonderful attractions, family activities, and quality schools that are the main reason that families are seeking homes in the area. Just by glancing around Tulsa you will find an array of things to do including the Tulsa Speedway, golf courses, the Tulsa Zoo, Performing Arts Center, Tulsa Ballet, and the Tulsa Opera to name a few. Then as you look at the education opportunities you will find quality schools offering the tools needed for students to achieve success in all grades from pre-kindergarten through twelfth grades and beyond to universities such as the Oklahoma State University and Oral Roberts University, as examples.
Homes, ranches, farms, condominiums, golf homes, and town homes can be found in Tulsa, Broken Arrow, Bixby, Jenks, Claremore, Catoosa, and Inola. To learn more contact a Tulsa Homes Expert by calling RE/MAX for more information at 877-738-8572.
Housing Recovery
December 15, 2009
The recovery in the real estate market is still moving forward with a huge 7.4% in home sales in November via information from the National Association of REALTORS.
At this time, sales are up 44% over where they were a year ago and this does include detached single-family homes, townhouses, condominiums, and cooperatives.
The sales are up not only here and the Tulsa real estate market but they are up all over the US and in every region. The Northeast say a 6.6% increase, the Midwest an 8.4% increase, the West an 11% increase, and in the South a 5% increase.
Sales were higher in all price ranges for the second month in a row. Over the last year, we did not see luxury homes or higher priced homes selling, but now they are once again getting new owners.
Homes that have sat on the market have decreased and unsold inventories are 16% below last years.
Chief economist of the National Association of Realtors Lawrence Yun, explained that the rush in home sales is due to the cut off of November 30 for the $8,000 first time buyer credit. The deadline was extended until June 30th for first time buyers until with an added credit repeat purchasers.
The president of the National Association of Realtors, Vicki Cox Golder, stated the combination of tax credits, low mortgage rates, and low prices has been an attractive environment for home buyers across the nation.
She stated, “It really doesn’t get any better for buyers,” if they have “secure jobs and long-term ownership plans.”
The forecast by Fannie Mae for 2010 suggests that sales of existing homes in 2010 will increase another 10% and new homes can expect an increase of 26%. Like many others forecasting in the housing market, Fannie Mae sees mortgage rates rising but not so high that buyers will not purchase.
The Mortgage Bankers Association forecasts 30-year fixed rates to exceed 5.2% in the coming months, which is up from about 5% a couple of weeks back.
Federal Reserve chairman Ben Bernanke believes higher mortgage rates are inevitable and Bernanke refinanced out of an adjustable-rate loan on his Washington D.C. home and into a more secure 30 year fixed rate around 5 percent.
For more news, articles and commentary on Tulsa homes sales, farms and commercial property in the Tulsa Real Estate market please re-visit soon or subscribe to our RSS Feed for our Tulsa Real Estate Mall Blog.
Fannie Mae & Freddie Mac’s Appraisal Rules
August 26, 2009
Congress is taking a break until after Labor Day, but things are boiling over the Fannie Mae and Freddie Mac’s appraisal rules. The rules of course are very controversial or we would not be talking about Capital Hill.
If it were up to Bipartisan legislation, the Home Valuation Code of Conduct would be put on a shelf and left for 18 months and this idea is actually getting new sponsors, which is not at 54.
The National Association of Realtors is pushing for the Home Valuation Code of Conduct bill in the key congressional representatives’ home district during the recess. The National Association of Realtors is very critical of the Home Valuation Code of Conduct rules with their side stating the rules “produce deal-killing lowball appraisals, encourage the use of low-paid appraisers unfamiliar with local conditions, and have raised the cost of valuations for consumers.”
Along with the National Association of Realtors, appraisers, mortgage brokers, and home builders are also against the rules. The Home Valuation Code of Conduct took effect on May 1.
David Stevens the FHA commissioner recently presented the first public comment from HUD, which was, the FHA account for close to 1/3 of mortgage market volume and does not have any plans to adopt the Home Valuation Code of Conduct. He went on to explain that FHA has its own guidelines and standards that cover appraisers and appraisals. A few weeks later, Stevens did comment that some of the core principles of the guideline were good.
Stevens stated, “We do like the HVCC’s separation of influence in ordering the appraisal from those who financially benefit from the outcome.” He did say that FHA will not use the Home Valuation Code of Conduct but may incorporate some of the principles.
The goal of FHA as stated by Stevens “is to get changes into the marketplace in the near future.” This is a hint that FHA may soon be presently new guidelines on home valuations, which will of course affect realty agents, appraisers, consumers, and lending companies. No details of any of the changes are available at this time.
Labor Day is fast approaching and Capital Hill will be a buzz before long. The bill only has 54 supporters and with all the discord among the politicians, REALTORS, home owners, and lending companies, I doubt if we will see any changes yet, as they will more than likely more on to more pressing issues such as health care.