March Round Up: Rates Remain Low
In Freddie Mac's results of its Primary Mortgage Market Survey (PMMS) the 30-year fixed-rate mortgage (FRM) averaged 5.85 percent with an average 0.4 point for the week ending March 27, 2008, down from last week when it averaged 5.87 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.
The 15-year FRM averaged 5.34 percent with an average 0.4 point, up from last week when it averaged 5.27 percent. A year ago at this time, the 15-year FRM averaged 5.86 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.67 percent, with an average 0.6 point, up from last week when it averaged 5.56 percent. A year ago, the 5-year ARM averaged 5.88 percent.
One-year Treasury-indexed ARMs averaged 5.24 percent with an average 0.5 point, up from last week when it was 5.15 percent. At this time last year, the 1-year ARM averaged 5.43 percent
"Long-term mortgage rates were mixed, but relatively unchanged in the past week as the latest economic indicators came in much as expected," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, the index of leading indicators continued to fall for the fifth straight month while consumer confidence reached a 5-year low.
"On the housing front, house prices keep declining across the nation. The S&P/Case-Shiller Home Price Index was the most recent to document the drop in prices, reporting a decline of 2.3 percent in from December to January in its 10-City Composite Index and a cumulative decline of 11.4 percent from January a year ago. Lower prices improve affordability and the National Association of Realtors reported that its home affordability index was at the highest level in nearly five years, contributing to a pickup in existing home sales in February."
Curb Appeal: Stamped Concrete
Curb appeal is the first impression of a home or property as viewed from the street. And it can actually increase the value of your property for resale, or better yet, cause envy from nearby neighbors.
One of the hottest trends right now in curb appeal is the creation of distinctive driveways.
Options for driveways used to be pretty simple, asphalt or concrete. But these days the possibilities for concrete are practically limitless, allowing you to take your carport from blasé to beautiful.
Stamped concrete, often referred to as "patterned concrete" or "imprinted concrete," is concrete that has been designed to resemble other more expensive materials such as brick, slate, flagstone, tile or even wood. And the cost effectiveness, easy maintenance and endless design possibilities are making stamped concrete a must-have.
In stamped concrete you can incorporate decorative patterns, even using other elements such as bond brick, hexagonal tile, worn rock or stone. And the use of stains can make your home all the more elegant and inviting. Some of the color choices include Green Lawn, Cola, Aqua Blue, Venetian Pink and Sandstone Cream.
If you have an existing driveway, there are ways to get a lasting makeover without starting from scratch. For instance, you can resurface your concrete with overlay systems to eliminate cracks or blemishes, or you can choose to permanently engrave or sketch patterns for an enhanced appeal.
Home Warranty vs. Homeowner's Insurance
A "home warranty" is typically a promise by a builder or manufacturer to make repairs or provide replacements in the event a product or system doesn't work. Such warranties are inevitably "limited" warranties, meaning the builder or manufacturer is only taking on so much liability.
When looking at warranties always ask about dollar limits, deductibles, fees and charges to make a claim and the length of the warranty period.
Homeowner's insurance is the fire, theft and liability coverage required when you get a mortgage and which all homeowners should have.
There are varying levels of protection, but you at least want enough coverage to assure the full replacement of the property in the event of disaster. For specifics, speak with an insurance broker in your community.
Seek Property Bargains for Your IRA
Real estate practitioners who are spying good deals these days and who are confident real estate isn’t far from a turnaround might consider investing their Individual Retirement Account funds in property.
"A lot of people prefer real estate. That's where they've been successful and that's what they're comfortable with," says Bill Humphrey, principal of Entrust New Direction, based in suburban Denver. The office is a member of The Entrust Group, a national firm that serves as an administrator in nontraditional IRA investing.
Compared to buying stocks or mutual funds, investing a retirement account in real estate is complex and riddled with IRS regulations. Working with a knowledgeable self-directed IRA administrator is important.
Written by Realty Times Staff