Just in time for the spring selling season, HUD is raising both the Up Front Mortgage Insurance Premium (UFMIP) and the Monthly Mortgage Insurance Premium (MMIP). You may be inclined to think this is a good thing as surely the FHA is increasing these costs in order to shore up agency’s reserves following the rough economic times we now seem to be leaving behind. But I’m afraid you’d be wrong. No, the increase in MMIP will be raided is earmarked to pay for the small 2% decrease in Social Security taxes we all received when congress voted to extend 2011′s payroll tax cut for the first 2 months of 2012. You remember the popluar cut that was more hype than help – adding just $1000 per year to an average family income. So be sure and thank you new neighbor for paying higher FHA loan fees. He saved you $166.00 in payroll taxes.

Effective April 1, 2012 the UFMIP will rise from 1% to 1.75%. The UFMIP is usually added to the loan amount. So while it won’t require buyers to bring additional funds to the closing table, is will raise the loan amount and therefore impact a buyers monthly payment. The MMIP will be increasing 10 basis points. That, in effect, means an increase to the buyers interest rate. So buyers entering the FHA loan pipeline after April 1 will get a double hit.

Not only did our Coldwell Banker franchises take the top spot according to Nielson and comScore Media Metrix, you helped us easily outpace our nearest competitor by 21 percent. You can read the full article here.

In January the National Association of Home Builders released the results of a poll showing Americans strong belief in the dream of homeownership. Reasons sited for a preference to own instead of rent included homeownership as a key to achieving economic security. Those poll respondents who currently rent overwhelmingly said they want to buy.

Recent reports from Fannie Mae’s Economics & Mortgage Market Analysis Group include expectations that the economy will grow about 2.3% in 2012.

Federal government reports released in mid-January showed the economy rebounding, and 2011 inflation peaked at 3%. Less concerns about rising prices plus a strengthening job market which saw the sixth straight month of job growth means employees looking for housing.

Freddie Mac reported in January that mortgage rates hit record lows. Lower rates mean more affordable home loans for more people. That’s good news for sellers, too, as you may expect more demand for homes increases homes sales, which can lead to rising home prices.

Indeed, Texas REALTORS® are seeing increased sales already in 2012. Homeownership continues to be a big part of the American dream. Right now, interest rates are still at historic lows, available home inventory still offers some great bargains, and the economic future is looking brighter. Could we be looking at a sellers market? Stay tuned.

After the couple left my office I did a little math using today’s median-priced Texas home of $150,000.  Actually, I think the median is a few thousand dollars higher, but I work better in round numbers…  Assuming an interest rate of 4%, monthly principal and interst for a $150,000 home comes out to $700.  ($716 exactly, but like I said, I work best in round numbers.) I found a chart showing interest rates from 10 years ago. They were just over 7.5%.  But the median home price 10 years ago was around $128,000.  That would make a monthly payment of over $900.  for a median priced home.

The takeaway?  In the last 10 years the price of a median priced home in Texas has gone up $22,000 or about 17-18%.  But the monthly cost to own the same has gone down just over 20%.  If you’re wondering how much payments would be on that home you have your eye on, give me a call.  I can do a little math for you, too.  -Cindy

As a Realtor working as a buyers representative, I will tell you that as of the end of February, inventory is low. I just spent the last two weeks with a couple looking in the Hurst, Euless, Bedford area.  We looked at maybe a dozen homes over that two weeks, and we bumped into at least 2 homes with multiple offers after just days on the market. (Isn’t that right, Chris and Susan M?  Congratulations on the new home, by the way.  I know you’re excited.)

What does this mean to you if you’re considering selling your home?  Now could be a great time to get your home on the market. You may get your choice of buyers, and you’ll benefit from the low, low interest rates available today on your next home purchase.  Don’t hesitate to give me a call if you’d like to explore market conditions in your neighborhood.  – Cindy

Developer Terra Land Management plans to incorporate two ponds and a winding creek found on the property into neighborhood green space.  Winding Creek lot sizes are expected to range from a third to half an acre, with homes starting around 3500 square feet.

Want to know more about new construction in Winding Creek or Southlake?  Send me an email or give me a call and I’ll catch you up to date on the latest developments around town.

-Cindy

The model is being built, and home sales have already been brisk.

Named after a town in Italy, (and according to  ”google”, an important location in the Twilight series…) The Villas of Volterra community offers a park, wooded lots, plus walking paths.  New construction will range from about 2600-3600 square feet with base prices starting in the $370,000′s.  Drees Homes is offering several single story floorplans and a few 3 car garage options in Volterra.

Keller Schools serving the new neighborhood follow the Liberty Elementary feeder path. To get to the new neighborhood, take Davis Boulevard South from Southlake 1709.  You’ll see Volterras stone entrance on the west side of Davis about 5 miles south, not too far past the Hidden Lakes entrance on Bear Creek .

Considering a home in Volterra?  Some new home buyers don’t realize using a Realtor will save you headache and probably money too. Builders pay agent fees through a seperate marketing budget.  And builders representatives are expert negotiators.  How many homes do you purchase in a year?  If you’d like a little help, or just some friendly suggestions before meeting a new home sales rep, give me a call.  -Cindy