Central New York Housing News

5-year Adjustable Rate Sets Record Low

McLean, VA - Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), and again, the fixed-rate mortgages reaching, along with the 5-year adjustable rate, set record lows for this survey. (The 30-year fixed-rate survey began in 1971, the 15-year began in 1991, and the 5-year adjustable in 2005.)

Rebirth of a City

Rick Destito knew exactly what he was getting into when he bought a rundown, three-story Victorian house in one of the poorest neighborhoods of Syracuse. Built in the 1890s but left abandoned for years, the place was in serious disrepair: graffiti and mold stained the exterior, the windows were gone and the roof needed to be replaced. But under an innovative local housing program, he paid only a dollar for the place - plus another $60,000, and his own skilled labor, to make it suitable for his family, including a one-year old girl and a baby on the way.

20-Year Mortgages Cut Interest Significantly

Buyers with the ability to stretch a little might consider a 20-year fixed-rate mortgage instead of the traditional 30-year, suggests CBS Money Matters' financial adviser Ray Martin.

Martin points out that a $200,000 mortgage with a 30-year term and an interest rate of 4.75 would have a monthly payment of $1,043 and the total interest over the life of the loan would be $175,600.

The same mortgage with a 20-year term at 4.5 percent would have a monthly payment of $1,265 with total interest over the life of the mortgage of $103,670.

Mortgage Loan Applications Increase

Applications to purchase homes rose 1.5 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association.

The unadjusted purchase index also rose 1.5 percent, and it was up 7.1 percent compared to four weeks ago. Compared to the same week a year ago, it was down 33.7 percent. For the third straight week, government-backed loans, especially Federal Housing Administration loans, drove the increase, with government loan volume rising 3.4 percent compared to last week.

Mortgage rates were remarkably low:

Freddie Mac: Mortgage Rates Remain Steady for Northeast

In its Primary Mortgage Market Survey for the week ending July 29, 2010, Freddie Mac reported the 30-year fixed-rate mortgage (FRM) for the Northeast averaged 4.55 percent with an average 0.7 point, remaining the same as last week's average.

The 15-year FRM averaged 4.04 percent with an average 0.7 point for the Northeast, down slightly from last week's 4.05-percent average.

U.S. Commerce Department: New home sales jump for Northeast in June

Sales of new single-family houses in the Northeast in June were up 46.4 percent to a seasonally adjusted annual rate of 41,000, according to a release by the U.S. Commerce Department. May's annual rate was 28,000.

Nationally, new home sales were at a seasonally adjusted annual rate of 330,000. This is 23.6-percent above the revised May rate of 267,000 and 16.7-percent below the June 2009 total of 396,000.

New York State second quarter home sales jump 71 percent from first quarter

The New York state housing market continued its strong start to 2010 as second quarter sales, helped by a record-setting June sales total, jumped more than 71 percent from the first quarter, according to preliminary single-family sales data accumulated by the New York State Association of REALTORS. The 2010 second quarter statewide median sales price grew by nearly 12 percent compared to the 2009 second quarter, despite falling by 5 percent from the first quarter of 2010.

"The New York State housing market has clearly benefited from the federal homebuyer tax credit," said Duncan R. MacKenzie, NYSAR chief executive officer. "The proof is in the 24,327 sales that closed in the 2010 second quarter and especially in the 11,230 new homeowners in June."

Thousands of Rural Home Buyers Aided by Passage of Housing Funding Measure

The restoration of the single-family rural housing program that would guarantee home loans for rural buyers was passed by the Senate today and is on its way to President Obama.

The National Association of Realtors® has vigorously lobbied to restore funding for the rural program since last March, and hailed this development as a great victory for rural home buyers.

June New Home Sales Beat Analyst Expectations

Sales of new single-family houses in June 2010 rose to a seasonally adjusted annual rate of 330,000, up from historic lows in May, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. The growth beat analyst expectations of 310,000 units in June after the rate plummeted to 300,000 in May. The June rate fell toward the larger end of economists' consensus range of 280,000 to 350,000 units.

New York's Consumers See a Bright Future for the Real Estate Market

The New York State Association of REALTORS, in partnership with the Siena Research Institute (SRI) released the first-ever quarterly New York State Consumer Real Estate Sentiment scores for the 2010 second quarter. Overall, the survey found New York consumers are negative about current real estate market, but optimistic about the future. They feel that it is a very good time to buy, but a poor time to sell. Selling prospects increase over the next year and buying remains positive, indicating high hopes for the future of the New York real estate market.