A May 10th article in The Week stated home prices are increasing at the highest rate in seven years, according to Nick Timiraos in The Wall Street Journal. Prices jumped 9.3 percent in the 12 months throught February “while mortgage-interest rates hovered near record lows,” accordingg to an index that tracks home prices in 20 major cities.

All 20 cities surveyed posted year-over-year increases, and in some cases even double-digit gains; in Phoenix, for example, prices are up 23 percent from a year ago. “Nobody that I’m aware of anticipated the kind of price growth that we’ve had, ” said Budge Huskey, chief executive of Coldwell Banker. “It’s simple supply and demand.”

“Steady hirining and near-record low mortgage rates” are driving the demand, siad Christopher S. Rugaber in the Associated Press. Also, ‘buyers have fewer homes to bid on” as bank foreclosures ebb and homeowners remain unable to unwilling to sell. Rising home values are often considered a harbinger of economic recovery because they encourage people to buy before prices rise further, entice buyers to sell, and encourage banks to provide morggage loans. Higher home prices can also “increase homeowners’ wealth, which encourages more spending,” and create construction jobs as homebuilders work to keep up with demand.

With interest rate at an all-time low, house hunting is on the rise, according to Kate Ashford from Forbes.com.  Those new to the process should adhere to some basic rules.  First, get preapproved for a mortgage– “it will prove you’re serious to your Realtor and to home sellers, ” and will give you a realistic idea of what you can affort.  Think about your down payment; putting a nominal amount, should as 3 1/2 percent, isn’t “necessarily a bid thing, but it does mean that you’ll have very little equity in your home when you first move into it.”  And whatever you do, don’t skip the home inspection.  It’s “worth every penny.”

According to Wikipedia, a credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person.

Well, credit scores aren’t the only way credit card companies keep an eye on customers, said Mandi Woodruff in BusinessInsider.com.  Companies use several other “scores,” based on customers’ spending and repayment patterns, to size up customers.

“If you normally shop at high-end stores and regularly pay off your card, and then suddenly start shopping at discount stores and carrying a balance, the company could use this data as an indicator that you have become higher risk,” said Adrian Nazari, CEO of CreditSesame.com.

Companies also use a “carefully formulated algorithm,” based on debt balances and payment histories, to predict how likely a customer is to go bankrupt. “This score helps creditors assess and minimize their risk in advance,” said Nazari. 

Creditors also use what’s called a “Wandering Eye” score, which sizes up how likely you are to be using a card issued by a competing lender. “When this score is high, it tells the lenders they may need to sweeten the pot and offer you various perks.”

So, if you want to protect the volatility of your credit score, be careful when selecting your credit cards, because they will be watching…

Home values were up 10 percent nationally from the forth quarter of 2011 to the same period of 2012, according to data from the National Association of Realtors. 

Locally, Cache County has only 526 homes on the market, which is nearly half the inventory available a year ago, according to Lisa Udy, Principal Broker for Platinum Real Estate.

With interest rates still at historic lows and spring around the corner, now is an excellent time to consider selling your current home and building a new one!

The election hoopla is over (finally) and the market uncertainty has subsided. This is indeed good news for anyone seeking a home loan.

Home prices are more affordable than ever and interest rates are at all-time lows. (Most) buyers are more qualified to buy homes than they have been for decades.

In the wake of the recession, the overall market has been stabilized and homes have become much more affordable, even as wages have remained relatively flat.

Looking ahead into next year, the market is likely to begin a slow increase in home appreciation.  Additionally, the foreclosure supply is shrinking and notices of default are being filed less.  Next year will likely see increased sales activity in resale homes and new homes at greater levels that we’ve seen in the past year.

In the future, when rates will likely be higher, borrowers will lament not acting today!

According to the Associated Press – U.S. home prices are finally starting to increase consistently.

A gauge of national home prices rose in June compared with the same month last year, according to the Standard & Poor’s/Case Shiller index released Tuesday.  The year-over-year increase was the first since September 2010, a year when hosing benefited temporarily from a federal home-buying tax credit.

The report also noted that all 20 major metro areas tracked by the S&P.Case Shiller index posted gains in June from May.  That’s the second straight month in which prices rose in every city measured.

A decline in foreclosures and the lowest mortgage rates in decades have helped some of the cities hardest hit by the housing bust. Prices have surged nearly 14 percent, for example, in the Phoenix area in the 12 months that ended in June. 

Last week, the National Association of Realtors said sales of previously occupied homes jumped 10 percent in July compared with the same month last year.

Home prices in Salt Lake County have risen for the first time in five years.

The Salt Lake Tribune reports that the median price was nearly $215,000 in the second quarter.  That’s up by 6 percent from $2003,000 the same period in 2011.

The Salt Lake Board of Realtors says it was the first increase since the real-estate bubble popped in 2007.  The crash toppled median prices that had reached a high of $256,000.

Nearly 3,000 homes were sold in Salt Lake County in the second quarter, up 12 percent.

The answer is “Yes”! 

I have been a mortgage banker for 22 years and have never seen a better time to purchase or refinance a home.  Interest rates are at historical lows and the Federal Reserve indicates it does not plan to raise rates in the immediate future.

As a home buyer, you have more buying power now than ever before.  Acting now will ensure you can purchase your most desired home for a much lower payment than in the past three years. 

If you already own a home, now is a great time to do some updates or even a significant remodel.  Any term between 10 to 30 years are available.  If your budget would allow for a 22 year loan, I can provide you with a 22 year loan.

I can answer any quesiton you may have!  Please contact me at your earliest convenience.

Whether you’re a first time homebuyer or not, when you consider purchasing a new home, there are many things to consider. 

• Can I qualify for a home loan?
• Do I have a down payment?
• How much down payment do I have?
• How long do I expect to be in the home?
• What price range can I comfortably afford?

When determining your price range, it is very important to understand the relationship between the price of the home you would like to purchase and the interest rate you receive for your home loan.  With current interest rates at historical lows, a buyer is capable of buying more home now than when interest rates are higher.

For example, if your desired payment is $850 per month and the current 30 year interest rate is 3.75%, the price of home you could purchase will be over $20,000 higher at 3.75%, compared a rate of 4.75%.

The Utah Assoiation of Realtors recently reported that Utah home sales rose for six consecutive months during the second half of 2011, while inventory levels were the lowest since early 2007.  Given this news, now is an excellent time to consider purchasing a new home!

No Mortgage Insurance with only a 5% down payment… Is it possible?  Yes it is! 

If you are purchasing or refinancing, you may want to consider this new option.  The interest rate is slightly higher than the option with Mortgage Insurance, but your total monthly payment will be lower.  Additionally, the amount of your monthly payment applied to the principal balance of your loan will increase.  Therefore, so does your equity!

This program is viable with any down payment amount between 5% and 19%.  At 20% down payment or above, no  Mortgage Insurance is required.

Don’t hesitate to contact me with any quesitons!