Homes Today

Lending Landscape - March 27, 2008

2008-03-27T16:27:00.000-07:00

After a down week last week, mortgage rates were mixed this week seeing only slight movement in either direction. Fixed rates edged down 2 basis points -

The government-sponsored loan buyer said 30-year fixed-rate loans averaged 5.85% for the week ending Thursday, down from 5.87% last week.

Last year at this time, the 30-year rate averaged 6.16%, Freddie Mac said.

Short term rates on the other hand moved up despite a rate cut from the Fed last week -

Rates on five-year adjustable-rate mortgages (ARMs) averaged 5.67%, up from 5.56% last week. A year ago, the 5-year rate averaged 5.88%.

One-year Treasury-indexed ARMs averaged 5.24%, up from 5.15% last week. At this time a year ago, the 1-year ARM averaged 5.43%.

Credit standards for obtaining a loan tightened further as lenders determined standards for the new, higher loan limits. Both conforming standards and FHA were raised virtually eliminating no money down loans for borrowers with dicey credit.

With a smaller buyer pool eligible to buy homes, expect builders to offer even more attractive prices and bonuses on new homes.

Lending Landscape - March 6, 2008

2008-03-06T08:53:00.000-08:00

Like the weather in the Salt Lake Valley, a spring thaw seems headed for the mortgage markets. Interest rates dropped, erasing last weeks gains.

The government-sponsored loan buyer said 30-year fixed-rate loans averaged 6.03% for the week ending Thursday, down from 6.24% last week.

Last year at this time, the 30-year rate averaged 6.14%, Freddie Mac said.

Freddie Mac also said 15-year fixed-rate loans averaged 5.47%, down from 5.72% last week. A year ago, the 15-year rate averaged 5.86%.

Short term rates have dropped as well and the Fed is widely expected to cut short term rates again when it next meets in March.

There was big news on Thursday when new loan limits for both conforming and FHA mortgages were released. Salt Lake City received the maximum allowed limit of $729,750 for both programs. The new limits are temporary, available only until the end of the year. The benefits to this change in Salt Lake will primarily be felt in houses above $400,000, where sales have slowed in the last nine months.

The benefits to the mortgage market as a whole will be felt once California homeowners start successfully refinancing homes in financial trouble and the mortgage lenders regain confidence.

A window of opportunity exists in the Salt Lake housing market as the benefits of lower interest rates, lower new home prices and higher loan limits will stimulate demand. All three of these factors will not co-exist for long.

Lending Landscape - February 28, 2008

2008-02-28T10:36:00.000-08:00

The lending landscape is getting more muddled as long term mortgage rates continue to rise, despite efforts from the Federal Reserve board to keep them low. Over the past week, fixed rates have increased to levels we saw last November.

The government-sponsored loan buyer said 30-year fixed-rate loans averaged 6.24% for the week ending Thursday, up from 6.04% last week.

Last year at this time, the 30-year rate averaged 6.18%, Freddie Mac said.

Short term rates were up slightly this week, but are still far below last year's levels. In testimony to Congress this week, Fed chairman Ben Bernanke indicated willingness to cut rates further at the next meeting in March. This should provide additional downward pressure on adjustable rate mortgages.

The Fed has had great difficulty controlling long term rates. When they wanted higher rates, long term rates stubbornly held level. Now that they want lower rates, the trend is reversing. One thing is certain and that is the markets are volatile. Even though rates trended up last week, as of this writing they appear to be headed down.

For new home buyers in Utah it's important to consider that an adjustable rate mortgage may be of benefit given the downward trend in short term rates. Further, long close dates, particularly for new construction could possibly allow a clearer economic picture to emerge.

Lending Landscape - February 21, 2008

2008-02-21T15:28:00.000-08:00

The lending landscape has seen fixed mortgage rates increase over the past week, while adjustable rates continue to decline after several rate cuts from the Federal Reserve Board. Even as fixed rates have moved up, they are still nearly a quarter point lower than last year.

The government-sponsored loan buyer said 30-year fixed-rate loans averaged 6.04% for the week ending Thursday, up from 5.72% last week.

Last year at this time, the 30-year rate averaged 6.22%, Freddie Mac said.

One-year Treasury-indexed ARMs averaged 4.98%, down from 5% last week. At this time a year ago, the 1-year ARM averaged 5.49%.

Fixed mortgage rates have been very volatile this year given the uneasiness about the economy and declines in the stock market. In Utah, new home sales have slowed considerably, but prices are holding ground. Builders are offering discounts and promotions unheard of in the market during the recent boom. In combination with lower interest rates, it's a very attractive time to buy a new home.

Lending Landscape - February 7, 2008

2008-02-07T17:59:00.000-08:00

Mortgage rates continued to hover at near record level lows in the past week. Concerns for the economy should keep them at this level for some time to come.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.67% for the week ending Thursday, down from 5.68% last week, and still well below rates at this time last year Freddie Mac noted.

At this time last year, the 30-year fixed-rate mortgage averaged 6.28%, Freddie Mac said.

Congress approved a financial stimulus package that besides handing out cash, will raise the loan limits for conforming and FHA loans for six months this year. In combination with lower rates, this could allow new home buyers additional purchase power. While many new homes in Utah fall well within FHA ($366,000) and conforming ($417,000) loan limits, the temporarily higher limits could make stretching for a dream home worthwhile.

Lending Landscape - January 31, 2008

2008-01-31T18:58:00.000-08:00

Mortgage rates bumped up slightly this week ahead of the Federal Reserve Board's interest rate decision. Improvements in the stock market sent prices of the benchmark 10 year bond lower which subsequently pushed 30 year rates higher.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.68% for the week ending Thursday, up from 5.48% last week, but still well below its historical average Freddie Mac noted.

At this time last year, the 30-year fixed-rate mortgage averaged 6.34%, Freddie Mac said.

Financial markets have been quite volatile this month, but mortgage rates appear to be leveling off. Short term mortgage rates are trending down under Fed guidance. More importantly, the Fed is bringing confidence to the housing market.

TV personality Jim Cramer wrote -

Cramer was -- to put it mildly -- vocal about his displeasure with the Fed's lack of response to the credit and housing woes that have gripped the markets since last summer. But now he's so confident in the economy he's considering buying what might be "the most loathed and toxic investment around": a house. The additional cut, which came just a week after another 75 basis-point emergency cut, has made a turnaround in housing "inevitable," he said.

Utah has been slow to feel the pain of the housing crisis, but the underlying problems in the mortgage industry affect every state. Lower rates and a slowing housing market in Utah have created opportunities for financing and builder discounts/incentives on new homes.

Lending Landscape - January 24, 2008

2008-01-24T18:24:00.000-08:00

Mortgage rates have been on a roller coaster this week. Ultimately they ended up lower and economic policies revealed this week should continue to push them further down. On Tuesday the Federal Reserve Board cut short term interest rates in an emergency meeting by .75%. Concerns on the stock market sent mortgage rates plunging, though a recovery later in the week sent rates, roller coaster like, lower. In addition, short term rates have finally become lower than fixed rates.

Mortgage rates continued to fall this week, with 30-year and 15-year fixed-rate mortgages hitting their lowest levels in nearly four years, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.48 percent for the week ending Thursday, down from 5.69 percent last week.

At this time last year, the 30-year fixed-rate mortgage averaged 6.25 percent. The 30-year rate has not been lower since the week ending March 25, 2004, when it averaged 5.40 percent.

One-year Treasury-indexed ARMs averaged 4.99 percent, down from 5.26 percent last week. At this time a year ago, the 1-year ARM averaged 5.49 percent.

It's been a volatile week, indeed a volatile month with concerns in housing spilling over to other parts of the economy. Decisions made this week by the Fed in regards to interest rates and by the Federal government in regards to loan limits and FHA loan qualifications should stabilize the housing and lending markets.

The Salt Lake Tribune reported today -

Utah should be able to rely on steady job growth, which has slowed from 4.5 percent to 3.5 percent but is expected to remain among the most robust in the nation. "It's much better than any other state, and we're a long way from a negative situation," Matthews said.

Developments since this article was published should further stabilize the real estate market. Ultimately, lower rates and lower prices in the face of a slowing market present excellent opportunities to buy new housing in Utah now. Let's not forget that interest rates fluctuate on an hourly basis and remarkable opportunities present themselves to those that are prepared. In the past two days mortgage rates have adjusted up several times per day. Those who are prepared to act can benefit.

Recent activity by the Fed and Congress will significantly benefit new home buyers in Utah.

Lending Landscape - January 17, 2008

2008-01-17T17:31:00.000-08:00

As economic indicators worsen, mortgage rates are in free fall. Lending rates are significantly lower today than they were last year and are trending down from the previous week.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 5.69 percent for the week ending Jan. 17, down from 5.87 percent last week.

At this time last year, the 30-year fixed-rate mortgage averaged 6.23 percent.

Shorter term loans have also seen decreases based on economic news from major financial companies and in anticipation of the Fed further cutting rates at their next meeting.

Freddie Mac said 15-year fixed-rate loans averaged 5.21 percent, down from 5.43 percent last week. A year ago, the 15-year rate averaged 5.98 percent.

Five-year adjustable-rate mortgages (ARMs) averaged 5.40 percent this week, down from 5.63 percent last week. A year ago, the 5-year rate averaged 6.04 percent.

Rates are becoming significantly more attractive for potential new home buyers. While the GSEs entrusted with keeping the mortgage machine running smoothly, Freddie Mac and Fannie Mae, have enacted premiums for high loan to value loans and borrowers with less than excellent credit, FHA is looking more enticing in the current landscape. FHA loans are comparable rate wise with the printed listings and are far more lenient with down payments and credit scores. In Salt Lake County, FHA loans go up to $360,000.

It's true the nation is suffering a housing crisis, but in Utah favorable rates and FHA qualification are really making now an attractive time to buy a new home.

Lending Landscape - January 10, 2008

2008-01-10T17:22:00.000-08:00

Trouble in the American economy and housing markets across the country are making it favorable to buy a new home. Besides price concessions, especially by builders, mortgage rates are headed down. If one is to believe forecasts in the press, mortgage rates should trend down throughout 2008.

In the past week, mortgage rates for fixed terms came down significantly.

Application volume jumped while fixed interest rates tumbled. The average interest rate for traditional, 30-year fixed-rate mortgages fell to 5.73 percent from 6.05 percent the previous week. The average interest rate for 15-year fixed-rate mortgages, which are often used to refinance mortgages, dropped to 5.21 percent from 5.61 percent the prior week.

Short-term adjustable rates are trending up slightly, but anticipated rate cuts by the Fed at the end of the month should provide a correction.

In Utah the real estate slowdown and lower rates are making home ownership more affordable.

Stephanie Jensen, of Logan, who struggled to buy a home last summer, had been watching mortgage rates for weeks hover around 6 percent when one day they dipped. She locked in on a 30-year loan at 5.34 percent in July before rates quickly drifted back up.

"I'm now paying less each month for my mortgage than I was paying in rent," said Jensen, who received assistance from Utah Housing. Thomas said the lower rates also can help people with adjustable-rate loans that are resetting or already have reset by making it a bit easier for them to qualify for fixed-rate loans.

While Utah did see appreciation over the past few years, it didn't experience the extremes of some of the markets in California, Arizona and Nevada where extreme corrections are now taking place. Demand for housing below $250,000 remains strong while housing above $400,000 is seeing a slowdown.

The combination of lower prices for new homes and lower interest rates are definitely turning the Utah real estate market towards buyers.

Lending Landscape - January 3, 2008

2008-01-03T19:30:00.000-08:00

Not much has changed on the mortgage front, except rates appear to be headed on a long, downward trend. Mortgage rates dipped after rising last week.

The average interest rate for traditional, 30-year fixed-rate mortgages fell to 6.05 percent from 6.1 percent the previous week. The average interest rate for one-year adjustable-rate mortgages declined to 6 percent from 6.03 percent.

As more uncertainty is revealed in the lending industry, the stock market has seen declines, which boost the demand for safer bonds. Because of that, bond yields decrease, in turn lowering fixed rate mortgages.

This situation improves affordability for prospective home buyers. While lending standards have tightened, FHA continues to low downpayment and expanded credit criteria for new home buyers. 2008 will be very telling for both the mortgage and real estate markets. We'll just have to wait and see.

Lending Landscape - December 27, 2007

2007-12-27T19:32:00.000-08:00

The lending landscape is continuing to deteriorate, except for FHA lending. Rates bumped up a bit this past week -

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.17 percent for the week ending Dec. 27, up from 6.14 percent a week earlier.

At this time last year, the 30-year fixed-rate mortgage averaged 6.18 percent.

More concerns about the mortgage meltdown have forced Fannie Mae and Freddie Mac to assign risk premiums on high loan to value properties and for buyers with even decent credit.

FHA loans are gaining ground as they allow up to 97% LTV and accept a variety of credit scores. Some pending legislation could expand the capability of the government guaranteed program. Borrowers with large downpayments and credit scores above 680 will continue to have a variety of loan programs available to them, at rates comparable to the past few years.

Lending Landscape - December 20, 2007

2007-12-20T20:17:00.000-08:00

The lending landscape hasn't made itself any clearer in the past week, though interest rates did slightly increase. Much discussion about bailouts for homeowners with adjustable rate mortgages has taken place, but the outlook is still unknown. The Treasury Department has come up with a plan to freeze interest rates for certain borrowers facing increased mortgage payments. As a result, Fannie Mae and Freddie Mac have increased their lending standards for borrowers who would have been considered "prime" in the past.

FHA Reform is finally moving forward. The Senate approved a plan to make it easier for home buyers to get the government backed loans. However, debate between the House and Senate for a final version to be signed by President Bush has yet to take place.

All this activity still leaves us wondering how the lending markets are going to shake out. News on Wall Street has evened out a bit which has pushed mortgage rates up a tad.

Strong reads on inflation and retail sales led to a slight lift in mortgage rates this week, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.14 percent for the week ending Dec. 20, from 6.11 percent a week ago.

At this time last year, the 30-year fixed-rate mortgage averaged 6.13 percent.

For new home buyers with down payments of 5% and credit scores above 680, getting a loan is still business as usual. Everyone else is in a major "wait and see" position.

Lending Landscape - December 13, 2007

2007-12-13T16:07:00.000-08:00

Despite a rate drop by the Federal Reserve Board earlier this week, advances in the bond markets propped up long term mortgages rates for the first time in many weeks. The standard 30 fixed mortgage moved up from last week and is hovering slightly below last year's rate.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan rose to an average 6.11 percent for the week ending Dec. 13, from 5.96 percent last week.

At this time last year, the 30-year fixed-rate mortgage averaged 6.12 percent.

The credit markets are in disarray as rising foreclosures and mortgage delinquencies are forcing major lenders and the Government Sponsored Enterprises (Fannie Mae & Freddie Mac) to write off significant amounts of bad debt. As a result, borrowing costs for Prime loans are going up.

One lending arena that saw a decline during the housing boom, is now perfectly poised to assist first time home buyers and potential homeowners with troubled credit. The FHA has competitive rates, easier qualification and loan limits in Salt Lake County extend to $366,000.

Ask your builder about the opportunity to use FHA financing on your purchase.

Lending Landscape - December 6, 2007

2007-12-06T22:35:00.000-08:00

The lending landscape has once again changed. Rates dropped last week, but changes in lending guidelines will make it harder to get high loan to value loans, even with medium grade credit scores.

Mortgage rates are at a level unseen for several years -

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan fell to an average 5.96 percent for the week ended Dec. 6. That was down from 6.10 percent a week ago.

At this time last year, the 30-year fixed-rate mortgage averaged 6.11 percent. It has not been lower since the week ending Sept. 29, 2005, when it averaged 5.91 percent.

Additionally, the Federal Reserve Board meets this Tuesday for their final policy conference of the year. It is widely expected they will cut the key overnight rate. That rate only affects short term mortgage rates.

Despite the lower rates, it's going to be harder to get a loan. For prime borrowers, Fannie Mae has changed its guidelines and will tack on up to 2% to the rate for properties with less than 30% equity and for borrowers with credit scores less than 680. Of course FHA has not made such changes and still provides attractive interest rates for first time buyers and new home buyers with less than perfect credit.

A storm of controversy is brewing now that the White House has announced its plan to help struggling homeowners. The next few months will be very telling as to how the housing market is going to shake out. Along the Wasatch Front, the new homes market has slowed down, but builders are aggressively pricing their homes and sales are still happening.

Lending Landscape - November 29, 2007

2007-11-29T16:32:00.000-08:00

The rate portion of the lending landscape continues to improve. In the past week rates dropped to levels not seen since 2005.

Interest rates on fixed-rate mortgages slipped again this week as the glut of available homes exerted downward pressure on prices and construction activity, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan fell to an average 6.10 percent for the week ended Nov. 29, from 6.20 percent the prior week. At this time last year, the 30-year FRM averaged 6.14 percent.

The 30-year rate has not been lower since the week ending Oct. 13, 2005, when it averaged 6.03 percent, Freddie Mac said.

Shorter term rates have also come down.

Freddie Mac said rates on 15-year fixed-rate loans averaged 5.73 percent, down from 5.83 percent last week. A year ago, the 15-year FRM averaged 5.87 percent. The 15-year rate has not been lower since the week ending January 26, 2006, when it averaged 5.70 percent.

Five-year adjustable-rate mortgages (ARMs) averaged 5.86 percent this week, down from 5.88 percent last week. A year ago, the five-year ARM averaged 5.95 percent.

The combination of falling interest rates and falling home prices (on a national level) is providing a very attractive atmosphere for people considering buying a new home.

Lending Landscape - Turkey Day Edition

2007-11-22T19:09:00.000-08:00

Welcome to a special Thanksgiving Day version of the Lending Landscape. Mortgage rates have dropped significantly this week and recent activity by the stock markets have sent bond rates down even further than official numbers reflect.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan fell to 6.20 percent for the week ended Nov. 21 from 6.24 percent the prior week. At this time last year, the 30-year FRM averaged 6.18 percent.

The 30-year rate has not been lower since the week ending May 10, 2007, when it averaged 6.15 percent, Freddie Mac said.

Since these rates were released on Tuesday, the benchmark 10 year bond that affects long term mortgage rates has fallen to levels not seen for several years.

The yield on the 10-year Treasury note fell below 4 percent for the first time in two years early Wednesday.

The 10-year note was later up 24/32 with a yield of 4.01 percent, down from late Tuesday's 4.09 percent.

Despite falling rates, the government sponsored enterprises that help the production of mortgage loans, Fannie Mae and Freddie Mac are struggling. How that will affect borrower's ability to obtain new loans has yet to be determined. So far no recent changes have happened that affect borrowers.

Homes Today wishes you and yours a Happy Thanksgiving.

Lending Landscape - November 15, 2007

2007-11-15T21:12:00.000-08:00

The lending landscape has remained unchanged this week with mortgage rates for 30 year fixed loans coming in even with last week and last year. However, downward pressure on bond yields this week should push long term rates down for next week.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan remained at 6.24 percent for the week ended Nov. 15.

The 30-year rate has not been lower since the week ending May 17, 2007, when it averaged 6.21 percent, Freddie Mac said.

At this time last year, 30-year mortgage rates also averaged 6.24 percent.

Perhaps the bigger question brewing for new home buyers is if they can get a loan at all. As it stands, a downpayment is the biggest change in the lending landscape over the past four months. For borrowers with poor credit, a 10% downpayment is pretty much required, unless its possible to qualify for an FHA loan where a 3% downpayment is required. Borrowers with good to excellent credit can obtain financing for 5% down and there are still 0 down programs available.

So long as a new home buyer can document their income and can come up with a downpayment, obtaining a mortgage is not that difficult.

Lending Landscape - November 8, 2007

2007-11-08T19:51:00.000-08:00

The lending landscape was relatively unchanged this week from a rate perspective, but banks surveyed admitted standards have tightened, even for borrowers that are considered good risks.

Rates moved up one basis point across the board, but activity on Wall Street today leads me to believe the downward trend is continuing. The benchmark 10 year bond yield closed at 4.29 today, a number not seen since last year.

Mortgage applications are cyclical on a monthly basis and true to form they slowed this week. CNNMoney reports -

Refinance volume declined 3.2 percent during the week, while purchase applications fell 0.05 percent. Refinance applications accounted for 49.1 percent of total mortgage applications during the week.

Concerning interest rates -

The average interest rate for a traditional, 30-year fixed-rate mortgage increased to 6.16 percent during the week ending Nov. 2, from 6.15 percent the prior week.

The average interest rate for one-year adjustable-rate mortgages increased to 5.94 percent from 5.93 percent a week earlier.

Mortgage loans are still available for borrowers with good credit and a downpayment. Subprime lending is requiring higher credit scores or a larger down payment and higher interest rates. The rate difference between a prime borrower and a subprime borrower has increased to nearly a four percent difference based on examining certain lenders.

It has been a particularly bad week for Wall Street with higher oil prices and a declining real estate market driving fears. For buyers, a favorable rate environment and builders willing to deal make now an attractive time to buy.

Lending Landscape - November 1, 2007

2007-11-01T20:16:00.000-07:00

It's been an interesting week in the mortgage business. Last week, the nation was waiting for third quarter results from the nation's largest lender, Countrywide. The company reported a significant loss, but held out hope for the near future and predicted a return to profitability as soon as the coming quarter and throughout 2008. If this outlook is correct, the future is promising for both the company and potential borrowers.

Yesterday, the Federal Reserve Board lowered interest rates for short term loans by .25%. Initially, long term rates rose, but have recovered completely today. Compared to last week, 30 year rates are at a six month low.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.26 percent for the week ended Nov. 1, down from 6.33 percent last week.

The 30-year rate has not been this low since the week ending May 17, 2007.

Last year at this time, 30-year mortgage rates averaged 6.31 percent.

In addition to rate concerns being a drag on the real estate market in some parts of the country, the availability of mortgages has become a concern nationally. Today the Federal Reserve eased some of those concerns by injecting $41 billion of additional money to the nation's lenders.

The foreclosure problems hampering some parts of the country have left Utah behind for now.

New home buyers are in a position where rates are the lowest they've been for several years, builders are offering discounts unavailable for five years and lenders are searching for borrowers. In my opinion, the landscape looks pretty good right now for new home buyers in Utah.

Lending Landscape - October 25, 2007

2007-10-25T11:07:00.000-07:00

Mortgage rates dropped sharply this week as the ten year bond yields dropped on continued negative economic news. CNNMoney reports -

Fears of a slowing economy over the next few months helped push mortgage rates lower, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.33 percent for the week ended Oct. 25, down from 6.4 percent last week.

Last year at this time, 30-year mortgage rates averaged 6.40 percent.

All other amortization types; 15yr, 5yr and 1yr also saw noticeable drops. With new home sales and existing homes sales reports also showing continued weakness in the national housing market this week, mortgage rates should continue their downward trend.

Perhaps one the most unique situations that will likely affect mortgage rates is the release of 3rd quarter numbers by Countrywide, the nation's largest mortgage company and loan servicer. Wall Street analysts think these figures will give them better insight into the true condition of the housing market. Countrywide has struggled this year with high foreclosure rates and deep financial losses. Their stock has lost over 50% of value since the beginning of the year.

Despite the media's attention to the troubles in the real estate market, the credit crunch of August has been lifted. Lenders are eager to loan money. For those borrowers with documented income and jobs, the mortgage market is actually improving as rates continue to drop.

Besides the Countrywide news affecting mortgage rates in the coming week, the Federal Reserve Board will meet this coming Tuesday and Wednesday to decide policy on short term rates effecting adjustable rate mortgages and home equity lines. The Fed lowered rates when they last met in September.

Lending Landscape - October 18, 2007

2007-10-18T17:49:00.000-07:00

Mortgage rates were unchanged this week as anticipation of the Fed's next meeting at the end of the month has many analysts speculating on the future of rates. CNNMoney reports -

Mortgage rates were flat this week as the housing industry continues to experience high inventories and slow sales, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.4 percent for the week ended Oct. 11, which was unchanged from last week.

Last year at this time, 30-year mortgage rates averaged 6.36 percent.

Other loan terms; 15 year, 5 year and 1 year saw little change as well. The benchmark 10 year bond has dropped quite a bit this week, so expect fixed rates to drop in the coming week.

Speculation over the Fed's next rate move could add some volatility to both the stock and bond markets as the end of the month nears.

For prospective home buyers, FHA loans have returned as a viable and cost effective program. Loan limits for Utah were raised in the spring putting many of Utah's new homes squarely into the program's parameters. FHA loans allow first time home buyers and people with less than perfect credit the opportunity to buy a home with little money down.

New Homes In Utah - Turn Slowdown Into Opportunity

2007-10-11T11:50:00.000-07:00

You know the old saying, "When life hands you lemons, make lemonade." Utah's home builders are getting a heavy load of lemons being delivered to them right now. An article in this past Sunday's Salt Lake Tribune detailed some of the problems these home builders are currently facing.

For many of Utah's home builders, tough staffing decisions and profit eroding price cuts and promotions are top of mind. For prospective home buyers, the choices and prices are the best they've been for years.

Particularly in the upper price ranges, those above $350,000, some amazing deals can be had. This is especially true about move-in-ready inventory homes. The Tribune reported this about Homes Today regular, Hamlet Homes -

Last year around this time, a common incentive offered by Hamlet - which sells homes priced from the $200,000s to the $400,000s - was about $5,000 in free upgrades. Today, the builder is offering discounts of up to $10,000 on certain homes and an option of no housing payments for four months to buyers who obtain a mortgage through an affiliated mortgage company.

Unadvertised bonuses are also available, but you may have to ask for them. This is especially true of existing inventory homes.

It can't hurt to ask for additional incentives beyond what the builder is offering. It could be a washer and dryer or something bigger, such as an upgraded kitchen or three-car garage. "The best-qualified buyers are a pretty hot commodity to the builders right now," said Gary Cannon, president of the Salt Lake Board of Realtors.

The lowest priced new homes still have a strong demand. Little discounting can be expected in high demand communities or those with new homes priced below $220,000. Still, with mortgage rates that are still near historical lows, the increased choices and incentives make the Utah new home market quite tantalizing for prospective homeowners.

So pour yourself a glass of lemonade and see what the Homes Today builders can offer you.

Lending Landscape - October 11, 2007

2007-10-11T11:14:00.000-07:00

The lending landscape is shaping up to be more favorable to prospective homeowners. Despite interest rates increasing slightly in the last week, they are at nearly the same point they were a year ago.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.4 percent for the week ended Oct. 11, up from 6.37 percent last week.

Last year at this time, 30-year mortgage rates averaged 6.37 percent.

15 year fixed loans stayed at the same rate they were last year, while adjustable rates moved up very slightly.

The release of the Fed's minutes from its previous rate meeting calmed Wall Street, though decreased chances for further rate cuts of adjustable and short term loans. The bond market which affect fixed rates have moved up, but only slightly in this holiday shortened week.

Most importantly for prospective homeowners is the psychology of the credit markets has improved. Increased liquidity has removed many of the credit crunch fears of the past few months though increased foreclosure activity continues to be a threat.

There's good and bad in this lending landscape forecast, but for those borrowers with good credit, rates are still favorable on fixed rate loans. Many Utahns can also qualify for FHA loans for first time homeowners and those with a few spots on their credit history.

River View at Jordanelle Ridge

2007-10-09T15:50:00.000-07:00

Imagine calling this home! A new development near Jordanelle Reservoir could allow you to do just that.

From the press release -

The Sorenson Group of Real Estate Companies today announced the opening of a new residential community on a mountain only minutes from Park City and Deer Valley, Utah. Named “River View at Jordanelle Ridge,” the master-planned development is a mix of 150 upscale townhomes and custom lots on a picturesque aspen ridge in the heart of the Wasatch Mountains.

Along with panoramic views of alpine scenery, River View homeowners will have four-season outdoor recreation and Olympic-quality downhill skiing only minutes away. Designed for individuals who are looking for a first or second home in a pristine mountain location, River View is immediately south of Jordanelle Reservoir in Heber Valley and approximately 40 minutes from Salt Lake International Airport.

River View homeowners will have a rich amenity package, including access to a clubhouse, trails, miles of dedicated open space, and more. Outstanding recreational opportunities in the surrounding Wasatch Mountains include hiking, fly-fishing, mountain biking and horseback riding.

Lot prices range from $232,400-$420,500. For additional information, visit the Sorenson Group website or watch Homes Today - Utah Edition.

Lending Landscape - October 4, 2007

2007-10-04T20:49:00.000-07:00

The mortgage landscape has improved over the last week. Mortgage rates for fixed rate loans have dropped and the ten year bond market has leveled out a bit since the Fed rate cut two weeks ago.

Normally, the economic news that affects mortgages has already been released by Thursday. This week the big pending news is the September jobs report, which will be released tomorrow. If the news on jobs is bad, more hope for an additional Fed rate cut should drive rates lower. On the other hand, if this report turns out well, long term mortgage rates should be expected to rise.

On the mortgage front there was good news. The "credit crunch" many had feared would reduce the pool of new home buyers has been resolved at least temporarily. A group of banks established during the Great Depression has injected hundreds of billions of dollars to lenders.

As the credit crunch hit hard in the third quarter, most banks were forced to cut back their lending. But one group of banks increased lending by an incredible $182 billion. Who were these deep-pocketed lenders -- and are they capable of handling such a large rise in loans, especially at a time when credit markets are unsettled and mortgage defaults on the rise?

"Funding has not been a problem," says Dorfman, of the FHLB of Atlanta. The FHLB banks, like Fannie and Freddie, benefit from the market's perception that their debt has a government guarantee, or that the government would step in and provide assistance if any of them ran into trouble. That not only translates into lower borrowing costs, but it also means investors flock to buy FHLB debt for perceived safety when bond markets get jittery. As a result, the FHLBs can borrow cheaply even in tough times.

Mortgage loans continue to be made and no further tightening of lending requirements has taken place. So long as interest rates remain low, it is still a very favorable environment to buy a new home in Utah.

Exclusivity Is Important

2007-09-27T15:14:00.000-07:00

Let's imagine for a minute that you're looking for a new home...a brand new home. Now let's say you want this new home to be in Utah, but you don't live here yet. Besides getting on a plane or driving out to look at the homes, how could a prospective buyer get a guided visual tour of the homes they're interested in?

One way of course is the Internet. The growth of Internet real estate shoppers has grown significantly over the past few years. USA Today wrote last year -

the breadth of information now available on the Internet is shifting the balance of power in the real estate industry, giving home buyers and sellers more control over the deal than ever before and fueling competition among agents.

But if a builder's site doesn't show up on a search for "new homes in utah," the prospective buyer may never see it.

Even better than photos of new homes, is a video that gives a more realistic perspective of what the home looks like. That's one role our Homes Today Utah Edition show provides. Each week we not only show the latest new homes available on ABC4, but we put those segments on our website so anybody can see them at any time.

An important thing to note is the builders we showcase can only be seen on Homes Today. We know there are other home shows out there, but they don't have what we have. For example, we have exclusive footage of DAI homes Stillwater development in Saratoga Springs. If you were searching for homes in Saratoga Springs, you might run across DAI's website, but if you want the video tour, you'll only find it at Homes Today.

Exclusivity and unique content are important to us. We know there are plenty of demands on our viewer's time and we want to provide educational, informative and entertaining content on our show, our website and our blog.

Lending Landscape - September 27, 2007

2007-09-27T13:12:00.000-07:00

The mortgage markets have settled down a bit since last weeks rate cut by the Federal Reserve Board. While short term rates did go down, the bond markets turned long term rates for 15 and 30 year fixed mortgages up. This was reflected in today's interest rate report -

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.42 percent for the week ended Sept. 27, up from 6.34 percent last week.

Last year at this time, 30-year mortgage rates averaged 6.31 percent.

In its latest report, Freddie Mac said rates on 15-year fixed-rate loans averaged 6.09 percent in the latest week, up from 5.98 percent last week. A year ago, the 15-year rate averaged 5.98 percent.

As the markets have settled, the 10 year bond which is most closely tied to establishing long term mortgage rates has come down. Expect to see these rates adjust down in the coming week. Meanwhile, short term rates for adjustable rate mortgage have come down from last week, but are still higher than last year.

Lending Landscape Thursday

2007-09-20T14:02:00.000-07:00

Welcome to Homes Today's latest feature - Lending Landscape. There's a lot of media attention being paid towards home financing recently. Unfortunately, the mortgage and financial markets move so quickly, it's impossible to remain current on our TV program since we film in advance.

The Homes Today blog is the perfect solution!

Thursday's tend to be the day previous mortgage rates, unemployment and other home building statistics are announced on Wall Street. By Thursday afternoon, a pretty clear picture usually develops.

Of course, weeks like the one we just had were pretty full of action. The Federal Reserve decided to cut short term interest rates for the first time in four years and Congress voted to change FHA rules to enable first time home buyers more options when it comes to buying a home.

Over the months to come, we'll cover the mortgage lending landscape as well as answer frequently asked questions about financing new homes. Of course, if anything major develops before Thursday, we'll let you know in a special update. Feel free to leave a comment if you have a particular question you want answered.

Juniper Point at Rosecrest Opens New Clubhouse

2007-09-17T15:31:00.000-07:00

Residents of Juniper Point at Rosecrest, a master planned community on the West Bench in Herriman, Utah can now enjoy the new clubhouse.

According to the press release from the developer, The Sorenson Group, the clubhouse features -

a dynamic, modern design and offers 1,500-sq. ft. of indoor space, a social gathering room, outdoor pool, hot tub and a tennis and basketball court. “This beautiful new clubhouse will be a great asset to homeowners who appreciate top-notch amenities, but who don’t have time to look after them,” said Donald E. Wallace, president of The Sorenson Group.

Juniper Point is on the west side of Rosecrest and features a magnificent view of Juniper Canyon. Residents enjoy the community trail system which feeds into the Juniper Canyon trails. 46 acres of open space provide plenty of room for activities like running, cycling and horse riding.

Location Counts in Media Too

2007-09-13T17:21:00.000-07:00

When it comes to real estate, the old adage is location, location, location. Getting into the best location helps with resale, personal safety and overall enjoyment of the home.

The same concept applies to television programming as well. The location in this instance is the channel and the time slot.

Arrested Development is one of my favorite television shows that unfortunately is no longer on. This was a show Fox claimed was trying to find an audience, while at the same time it received critical acclaim. By the time it was cancelled, the show had changed time slots and days several times. According to Wikipedia -

Fox aired the final four episodes of the third season in a block as a two-hour series finale on February 10, 2006, opposite the opening ceremonies of the 2006 Winter Olympics.

No wonder this show couldn't find an audience...it didn't have a consistent location. One of the things we're pleased with at Homes Today - Utah Edition is our partnership with KTVX. For over three years Jill Jessen has worked with ABC4 bringing consistent programming through Homes Today and its predecessor. Our relationship with KTVX is also good because our shows rarely get pre-empted as networks can sometimes do.

When it comes to Utah's premiere destination homes show, we've got the location, location, location at ABC4 Sundays at 8:30, 4:30 and 11:30.

Hamlet Homes Offers Great New Home Promotion

2007-09-12T17:57:00.000-07:00

Hamlet Homes is offering an amazing promotion on new inventory homes in Crofter's Cove and Daybreak.

Home buyers that use Hamlet's preferred lender can get four months of no mortgage payments with a purchase of one of their existing, ready to move in, homes in Clearfield or West Jordan.

While the Salt Lake homes market is starting to slow down, bulging home inventories and low interest rates make it very attractive for new home buyers.

Hamlet's inventory homes start in the low $200s with 1700 plus finished square footage and go up.

For additional information on the 19 homes that qualify for this special offer, visit Hamlet Home's website.

New Homes Still Selling

2007-08-24T11:41:00.000-07:00

As a prospective new home buyer you may be concerned about the national news regarding home mortgages becoming harder to get. While this is true in some instances, particularly for people with bad credit or no down payment, for the vast portion of new home buyers the impact is minimal.

In fact, mortgage rates are just about where they were last year at this time. All the builders participating on Homes Today have preferred lenders they've worked with for years. These lenders have a variety of loan programs that can help you get into the new home of your choice.

On a national basis, new home sales rebounded in July, further showing that most Americans can still get the loan they need for the house they want. In Utah, home sales are still doing very well and homes below $300,000 are selling the fastest. Ask your builder about their preferred lender program.

Kitchens Are the Cornerstone of New Homes

2007-08-22T19:38:00.000-07:00

The kitchen is perhaps the most crucial part of purchasing a new home. Other home features can be dismissed or changed, but if a kitchen doesn't feel right, the home won't feel right either.

Homes Today builders offer a great range of kitchens for each of the dozens of floor plans they collectively offer. While the kitchen in this photo from Steve Dockstader's 2006 Parade of Homes entry in St. George is magnificent, it may not appeal to everyone in the market for a new home.

Be sure to watch Homes Today - Utah Edition on Sundays to see the latest in kitchens around the Wasatch Front. If you want to get an idea of top kitchens in the country, take a look at this slide show from CNN.

Homes Today Lifestyle - Dog Days of August

2007-08-21T16:01:00.000-07:00

It's August, the time of year when the heat is up and the motivation to do anything is low. The threat of fall, back to school and cooler temperatures is just around the corner. Dog days indeed.

Why not take a look at these relaxing and refreshing recipes straight from The New Yorker executive chef Will Pliler. Check out the video on the Homes Today website. Hostess Lisa Cline brings us the story.

Recipes from this episode.

Grilled Flat Iron Steak

4 - 8 oz Flat Iron Steaks, seasoned well with salt and pepper, drizzle with olive oil
4 slices Cambazola cheese
1 large sweet onion such as Vidalia or Walla Walla, sliced quarter inch thick
3 T olive oil

Over medium heat in a medium skillet, sauté the onions with olive oil until lightly browned, set aside. Grill steaks over hot coals or gas grill until desired temperature. Top with sautéed onions and Cambazola cheese. Serve immediately.

Melon and Prosciutto

1 medium size cantaloupe, honeydew or Crenshaw melon, peeled, seeded and sliced into 12 wedges
12 thin slices of prosciutto
8 oz. fresh arugula leaves washed and spun dry

Wrap wedges with each slice of prosciutto, arrange on platter. Toss the arugula with the olive oil, season with salt and pepper. Arrange on top of melon and prosciutto, serve chilled or room temperature.

Roasted Fingerling Potatoes

2 lbs. fresh fingerling potatoes, washed, slice lengthwise
2 large sweet onions such as Vidalia or Walla Walla, peeled and sliced into quarter inch slices
¼ cup olive oil

In a large mixing bowl toss all ingredients together, season with salt and pepper to taste, spill onto large cookie sheet. Bake in pre-heated 375 degree oven for 45 minutes or until tender and golden brown. Pour into serving dish, serve warm or room temperature.

The Press Release That Started It All

2007-08-18T15:38:00.000-07:00

Here's the press release from ABC4 announcing the new Homes Today Show.

<click here to see the large version>

Homes Today Utah Edition Welcomes You

2007-08-16T08:03:00.000-07:00

Welcome to Homes Today - Utah Edition the blog. We are Utah's newest destination homes show featuring local communities, builders, design tips and more. If it has something to do with homes, you can be sure we'll be talking about it on our TV show, website or right here on the blog.

Homes Today was born just last month and is a collaborative effort with KTVX, Channel 4 in Salt Lake City. We know there are other home shows you can watch, but we're confident there are no others in Utah that can bring you entertainment and education about Utah housing than Homes Today.

KTVX General Manager David D' Antuano feels the same way. He recently wrote about our three year agreement:

We at ABC4(KTVX) have the utmost confidence in the success of this production. We've look at the show and are enthusiastic about the excellent production quality, exciting content variety, and great air times. Homes Today Utah Edition will be seen on ABC4(KTVX) three times weekly:

Sundays at 8:30 AM
Sundays at 4:30 PM
Sundays at 11:30 PM

In addition to these air times, which have been selected to ensure the very best viewership demographics and figures, Homes Today Utah Edition will also be seen on The HiveTV - a community-driven local access television channel available digitally, as well as to 150,000 current area homes via Comcast.

Thanks David for your kind words. Now it's up to us to produce a great show, website and blog people will want to return to for the latest on Utah homes.

You can view our latest episodes live on Sundays or stream them on demand from our website. If you have suggestions or questions about Homes Today, feel free to leave a comment on the blog or email us directly.