Camuso Real Estate Blog

In Freddie Freddie Mac's results of its 2011 Primary Mortgage Market Survey, the average fixed mortgage rates finished the year near their all-time historic lows.  This has been a tremendous aid in helping to keep home buyer affordability high. In 2011, the 30-year fixed had been at or below 4% percent for the last nine consecutive weeks - averaging at 3.95% -  and only twice in 2011 did it average above 5.00 percent.

The 30-year fixed-rate mortgage (FMR) averaged 3.95% with an average 0.7 point for the week ending December 29, 2011, up from the week before when it averaged 3.91%. Last year at this time, the 30-year FRM averaged 4.86%.  

The 15-year FRM that week averaged 3.24% with an average 0.8 point, up from the week before when it averaged 3.21%.  A year ago at this time, the 15-year FRM averaged 4.20%. 

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.88% that week, with an average 0.6 point, up from the week before when it averaged 2.85%. A year ago, the 5-year ARM averaged 3.77%.

1-year Treasury-indexed ARM averaged 2.78% that week with an average 0.6 point, up from the week before when it averaged 2.77%. At this time last year, the 1-year ARM averaged 3.26%.

And these interest rates are NOT for primary residences only.  A mortgage broker I do a lot of business with quoted a client 3.25% today on a 2nd home 15 year fixed rate.

With 20% down and single family 2nd home purchase you can bet on the following rates………..

30 year 3.875%
20 year 3.75%
15 year 3.375%

AMAZING!  With interest rates so extraordinarily low for 2nd homes as well, it's not a surprise that the Outer Cape Cod real estate markets are so active.   It's not a quiet, dreary, winter in real estate on Cape Cod.  Now is the time to buy!

When you look at your holiday calendars you may find the months already overloaded with seasonal obligations -- shopping, entertaining, charity work, decorating the house, and so much more. If you are also trying to sell your home, you are under extra pressure to keep your home in "showtime" condition. And that could be the last thing you need before the holiday spirit is broken.

It is understandable why you would be tempted to take your home off the market during the holidays. And the list of justifications is long. If you are too busy, buyers may be also, and you may find your efforts unrewarded by enough showings. And what if you do get an offer? You may be faced with the possibility of packing and moving during the busiest time of the year. Besides, you can give your house a rest, and it will have better momentum after the holidays. Better to just pack it in and start fresh in January, right?

But wait! I really believe taking your home off the market during the Christmas season is a mistake. The house sure isn't going to sell off the market! What is the advantage of that? So you're busy. Let your Realtor do the work. You can leave in the morning, go to work, go shopping, and let your Realtor take care of things.

The holidays could be one of the best-selling periods. Why? Because most people take off work sometime during the season. The husband and wife are both off and want to see houses. I showed homes on New Year's Day last year. I like the holidays because the buyers have more time, and they can look at homes together.

Before you take your home off the market, consider the following points:

1: Although buyer activity may appear to slow down, the buyers who are actively looking during the holidays are that much more serious. I believe the home market is no more affected at Christmas than during other "busy" period. If that were so, the market would shut down throughout the year as families concentrate on spring weddings, June graduations, summer vacations, and autumn back-to-school activities.

2: Many buyers deliberately choose to shop for a home after the busy spring and summer rush. They know that it will be easier to look, and that negotiations will be less stressful. They may not have children, or they may have grown children, so moving to accommodate the school year isn't a consideration. Finding the right home at the right price, however, is.

3: Relocating families often don't have a choice in when they can leave for their new destination. Although 68 percent of transferring families have children, many families have to transfer during the middle of the school year. These families are that much more motivated to get their families settled in before either before the January semester begins, or to arrange for the move during spring break in March. If you sign a contract by New Year's Eve, the timing couldn't be more perfect.

4: At Christmastime, our culture focuses on family and the home. Preparing for the indoor activities of winter is one of the most enjoyable periods of family life. Allowing buyers to view your home during this most hospitable of seasons lets them better picture their own family life in the attractive environment you have created.

5: When is your home ever more beautiful and inviting? You have cleaned and decorated, and your home looks like a picture postcard. If the results are good enough for family and friends, they will surely be good enough to impress your buyers.

6: With reduced inventories and motivated buyers, you will have all the members of the MLS on your team. You may find you have more showings than you would if your marketed your home during a busier time of the year.

If you do get a contract, you can arrange the terms to suit your needs. If moving during the holidays isn't an option, you can put in the closing date of your choice.  Most people can close 30 to 60 days after a contract is written, so there is plenty of time. Possession and closings are are very negotiable.

The Buyers are here looking on the Outer Cape, so take advantage of their presence and market your property at full force this holiday season!

Getting a loan can be part of the barrier to entry in the housing market. These days, to qualify for a loan a 20% downpayment coupled with a high credit score are required by some lenders.

Now, a new credit score service being introduced in November claims it will give lenders a more accurate picture of a borrower's outstanding debts. The company's website has a countdown to the release of CoreScore (credit report from CoreLogic). It touts the system as a way to “see borrowers as you've never seen them before.”

Some lenders are being extremely strict because they have difficulty determining previous credit behavior. But according to CoreLogic, everything will soon change. The CoreScore credit report is a supplement, not a replacement for the current credit reporting systems.

According to the company, “The supplemental information the CoreScore credit report provides will expand the view of borrower credit profiles and deliver important insight into unseen risk and opportunities.”

Among the information that the CoreScore report will deliver to lenders are the following:

*Properties owned—with and without debt obligations Mortgage obligations with companies that may not report to traditional credit reporting agencies

*Property legal filings, such as notices of default

*Property tax amounts and payment status

*Estimated market values on all U.S. properties owned

*Rental applications and evictions

*Inquiries and charge-offs from pay-day and online lenders

*Consumer-specific bankruptcies, liens, judgments and child support obligations

With mortgage restrictions tighter than ever and more supplemental information being offered to lenders about borrowers' debts and credit behavior, it's vital for borrowers to understand the most important qualifying factors that influence lenders.

The chief concern is the ability to repay the loan followed closely by the willingness to repay. Borrowers can place themselves in better standing with lenders by doing two key things.

1: Paying off as much debt as possible before applying for a mortgage. This is always good as it lowers the debt-to-income ratio.

2: Lenders examine borrowers' track record of repayment to determine how they will behave if they are issued a loan. Making sure that credit behavior is monitored and any discrepancies are handled before applying for a loan will help borrowers have a cleaner record and increase the chances of qualifying for a mortgage.

With the incredible deals you can get in today's real estate markets, you want to make certain you have the financial capabilities to take advantage of them.  The last thing you want is to have your dream property under agreement at a price that would be considered the deal of the century only to lose it because you couldn't get the loan.  Do your homework now so you're ready and able to make that deal.  Now is the time to really be prepared.  With 2011 coming to a close and the 30 year loans locking in under 4% in Cape Cod, there may not be a better time than the present to invest in real estate.

For four weeks in a row, mortgage rates are seeing historic lows. The 30-year fixed average interest rate fell from 4.09% to 4.01% in the end of September and the beginning of October the conventional 30-year fixed mortgage dropping below 4 percent for the first time in history amid increasing global economic concerns.  A client of mine locked in at 3.87% last week before Columbus Day weekend! Also, economists call the 15-year fixed mortgage drop to 3.28% the lowest ever for that loan. It appears they could go even lower as the Federal Reserve announced that it will push long-term rates down further.

With the rates being so great and with the stock market being so jittery, it's a no brainer to take your funds and buy real estate.  At this time, you'd be buying in a very low market so, unless you spend beyond your means, you can make some serious money in the long term off of a real estate investment.    There are some fabulous properties with motivated Sellers in Cape Cod....there has never been a better time to buy that vacation home!

The fourth quarter of the year can cause some sellers to worry if their home hasn't sold yet. But according to Trulia.com, there is still plenty of time to sell. 

Typically, many buyers are eager to move and get settled in before the school year and holidays begin but that doesn't mean you should be discouraged. While the spring is considered a peak selling period in most areas, the autumn market is equally, if not more, active than the spring here on Cape Cod.  The number of lookers may dwindle, but the ones that are, are real genuine buyers as opposed to the 'tire kickers' we see most of the summer.

There are a few key reasons for this..... 

1:  TAXES:  It's important to remember that some people have tax reasons and need to purchase before the end of the year.

2:  GIFTS:  There are some serious buyers looking for a very nice holiday gift for themselves. If they're out shopping in dreary weather or nearing the holidays, it's because they're extremely serious about making a purchase before the end of the year.  I made such a sale last year and closed on New Years Eve!

3:  INTEREST RATES:  This 2011 fourth quarter, in particular, may see more buyers is that interest rates remain historically low. The potential threat of a rise in mortgage rates could have more buyers eager to lock into an excellent rate, even if it means a move during the holidays.

4:  JITTERY STOCK MARKET:  With a continued volatile stock market, many buyers are taking their money out of their portfolio and investing in something more tangible.  People would rather invest their money in something their family can actually enjoy.  Many people take holiday bonus funds etc and use it as a down payment.

5:  WINTER CARRYING COSTS:  In Cape Cod, many Sellers don't want to carry their properties over the winter months.  For some, it's a huge financial burden.  Buyer's are aware that, because of this, there may be an extra level of motivation on the Sellers part this time of year allowing for a buyer to pick up a property for a bargain!

6:  REDUCED INVENTORY:  As the holidays approach, many Sellers take their homes off the market for one reason or another.  By doing this, the inventory is reduced.  With potentially fewer homes on the market, there is less competition giving a buyer and seller a perfect setting for an ideal sale.

Taking all of these reasons into consideration, you can see why the Cape and Islands market remains active through the new year.  So don't get frustrated or discouraged and give up.  If you are one of those Sellers who wants to move on, stay positive......you still got time!