Central New York Housing News

Housing Market Update & 2011 Forecast from National Association of REALTORS

Lawrence Yun, National Association of Realtors, Chief Economist & Senior Vice President gives housing market update and forecast for 2011 on C-SPAN

Click here to watch the C-SPAN video

Homeownership and Stable Communities Go Hand-in-Hand

Homeowners are more active in their communities, benefit from improved education opportunities, and report higher levels of self-esteem and happiness when compared to renters, according to leading research. A new report from the National Association of Realtors®, Social Benefits of Homeownership and Stable Housing, explores the impact of stable housing and the positive social outcomes resulting from homeownership.

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."