Freddie Mac recently released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates easing further for the second consecutive week helping to increase home buyer affordability at the onset of the spring home buying season.

The 30-year fixed-rate mortgage averaged 4.27 percent with an average 0.7 point for theweek ending April 17, 2014, down from last week when it averaged 4.34 percent. A year ago at this time, the 30-year FRM averaged 3.41 percent.

The 15-year FRM this week averaged 3.33 percent with an average 0.6 point, down from last week when it averaged 3.38 percent. A year ago at this time, the 15-year FRM averaged 2.64 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.03 percent this week with an average 0.5 point, down from last week when it averaged 3.09 percent. A year ago, the 5-year ARM averaged 2.60 percent.

The 1-year Treasury-indexed ARM averaged 2.44 percent this week with an average 0.5 point, up from last week when it averaged 2.41 percent. At this time last year, the 1-year ARM averaged 2.63 percent.

"Mortgage rates continued to ease this week as housing starts rose 2.8 percent in March but not as much as expected,” says Frank Nothaft, vice president and chief economist, Freddie Mac. “Also, permits fell 2.4 percent in March to a seasonally adjusted annual rate of 990,000, which followed a slight downward revision of 4,000 permits in February."

For more information, visit www.FreddieMac.com.

Why do some agents flourish while others do not? Is that a question you’ve ever asked yourself? There is a huge discrepancy right now between people who are failing and people who are succeeding.

Having been a real estate business coach for the past 15 years, I’ve had the privilege to observe how real estate agents function. This experience has included new agents and seasoned agents, and the experience of watching them work through hard times and good times. In addition, I’ve even had the privilege to be able to participate in helping them to become successful.

Here’s the secret to what separates those who are doing well in today’s economy from those who are not. It’s one word: fear. The not so successful real estate agents have fallen into a cycle of fear. Usually that pattern is established through incessant watching of the news, whether it’s reading a newspaper, or a magazine, or watching TV, or listening to the radio, the real estate agents who aren’t doing well are following the news much too closely, and what happens is that their mind is focused on gloom and doom.

They have gotten in a cycle of focusing on what they don’t want instead of what they do want. Because the media focuses on lack, they have also been focusing on lack. Since our thoughts create our reality the more we focus on lack the more we bring that experience to us.

The energy of fear is a contracting energy. If you’re caught up in fear you might not know it but you might notice the signs and symptoms of fear. Here are some things to watch out for: Are you feeling discouraged? Are you procrastinating? Are you avoiding marketing? Are you feeling depressed? Are you suffering from low energy?

CoreLogic®, a global property information, analytics and data-enabled services provider, recently released The Home Mortgage Disclosure Act: Foundation for a Sound Housing Market, the third white paper in a series which addresses the implications of new and revised federal mortgage finance industry regulations. In this edition, the nearly 40-year-old Home Mortgage Disclosure Act (HMDA) is reviewed in the context of the new regulatory environment and what that might mean for future changes to the law.

Key insights provided in the white paper include:

An understanding of what the law is and what it is not, including how HMDA is largely viewed as a tool designed to be used in tandem with existing fair housing laws.

The potential impact of transferring HMDA supervision and enforcement from the Federal Reserve Board to the Consumer Financial Protection Bureau (CFPB) and its formally initiated rulemaking process under Regulation C (HMDA) in February 2014.

Analysis of the additional data points proposed beyond the existing statute deemed to be useful for regulatory purposes including debt-to-income, combined loan-to-value ratios, origination charges and interest rate received.

Discussion of how the evolution of HMDA may impact the mortgage finance industry. In particular, the unintended creation of default lending standards based on expanded data capture requirements, despite the law not being designed to serve that function.

For more information, visit www.corelogic.com/HMDA.

Realtor.com® recently released its National Housing Trend Report for March 2014. The report shows year-over-year growth in inventory and days on market, which are welcome signs for spring homebuyers. Combined with modest price increases, this growth speaks to a healthier market currently than in the early home buying season in 2013.

Data from realtor.com® reveals the number of homes for sale on realtor.com® in March rose 9.5 percent above March 2013 levels, to 1,841,844 units. The median list price of $199,900 was 5.3 percent higher than it was in March of last year, and the median age of inventory increased 22.9 percent above year-ago figures, to 102 days. These trends suggest that the market is more balanced than it was in 2013, when a shortfall in available supply led to double-digit increases in home price in many markets.

Added inventory may mean more affordable prices in many markets for the first-time and move-up buyer alike. More homes on the market is a particularly good sign for first-time homebuyers, for whom lack of inventory in 2013 led to intense competition and created one more barrier to homeownership.

“Bidding wars in many markets last year frequently elevated offer prices beyond the reach of first-time buyers who could scarcely save for the down payment,” says Steve Berkowitz, CEO of Move. “While inventory is still low, the continuing annual lift in the number of homes on the market that we’ve seen over the first months of 2014 is an indicator that buying conditions this year may be notably improved from the frenzied pace of last spring.”

For more information, visit www.realtor.com.

Mortgage applications increased 4.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 11, 2014.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 5 percent compared with the previous week. The Refinance Index increased 7 percent from the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index increased 2 percent compared with the previous week and was 16 percent lower than the same week one year ago.

The refinance share of mortgage activity increased to 52 percent of total applications from 51 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.47 percent from 4.56 percent, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.39 percent from 4.49 percent, with points increasing to 0.18 from 0.14 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

Led by a 6 percent rise in single-family starts, nationwide housing production rose 2.8 percent above an upwardly revised February rate of 920,000 to a seasonally adjusted annual rate of 946,000 units in March, according to newly released figures from HUD and the U.S. Census Bureau.

“We see improving signs of new-home construction as we move into the spring buying season,” says Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “The strongest recovery is in the Northeast and Midwest, where builders were hampered by severe winter weather earlier in the year.”

“Today’s report is in line with our forecast of a gradual strengthening in the housing sector in 2014,” says NAHB Chief Economist David Crowe. “However, several uncertainties including tight credit conditions for home buyers and erratic job growth are making builders cautious about getting ahead of demand.”

Single-family housing starts rose 6 percent to a seasonally adjusted annual rate of 635,000 units in March, while multifamily starts fell 6.1 percent to 292,000 units.

I previously covered a report on which banks are making it easier for consumers to obtain credit and a mortgage, and provided a checklist to prepare when shopping for a mortgage.

So we'll conclude this little series of columns with some of the best practices Fannie Mae suggests once you have chosen a mortgage lender.

The agency suggests these tips to improve relations with lenders:

Get recommendations: Ask friends and family members for suggestions, especially if they've recently obtained a loan.

Check credentials: Mortgage bankers are regulated by either your state's department of banking or division of real estate. Check with the one appropriate to your state to see if a lender is in good professional standing. Mortgage brokers may be state regulated or not. If not, check with the local chapter of the National Association of Mortgage Brokers or the Better Business Bureau to see if their record is clean.

Do your homework: Learn about typical mortgages and ask questions when something looks amiss; a broker may be trying to pad closing costs or other fees at your expense.

Take care online: There are plenty of attractive deals online, but first make sure you're dealing with a reliable broker or lender.

The Real Estate Settlement Procedures Act (RESPA) requires lenders to give borrowers information on all closing costs and escrow account practices. Any business relationships between the lender and closing service providers or other parties to the transaction must also be disclosed.

Consumers are reminded that many fees are negotiable. For more information on home buying and mortgages, visit www.fanniemae.com or call 202-752-7000.

In recent housing news, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving down following weaker than expected economic and housing news.

"Mortgage rates were down this week as real GDP was revised downwards to 2.4 percent growth in the fourth quarter of 2013,” says Frank Nothaft, vice president and chief economist, Freddie Mac. “Fixed residential investment negatively contributed to GDP decreasing 8.7 percent in the fourth quarter. The private sector added an estimated 139,000 jobs in February, which was below the market consensus and followed a downward revision of 48,000 jobs in January, according to the ADP Research Institute."

The 30-year fixed-rate mortgage (FRM) averaged 4.28 percent with an average 0.7 point for the week ending March 6, 2014, down from last week when it averaged 4.37 percent. A year ago at this time, the 30-year FRM averaged 3.52 percent. 


Additionally, the 15-year FRM this week averaged 3.32 percent with an average 0.6 point, down from the previous week when it averaged 3.39 percent. A year ago at this time, the 15-year FRM averaged 2.76 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.03 percent this week with an average 0.4 point, down from the previous week when it averaged 3.05 percent. A year ago, the 5-year ARM averaged 2.63 percent.


Employees relocating to a new market for a job know all too well which features and amenities they want most in their next home and the location: it needs to be larger than their previous home, with an upgraded kitchen and be located in a good school district, yet not too far from work, according to Cartus Corp survey taken last week.

Cartus, a leading provider of domestic and global relocation services, received responses from 267 of America's top real estate brokers who specialize in working with transferees. The brokers, all members of the Cartus Broker Network, were asked (among other things), "What specifics about a home are most important to transferees?" The following ranks the top five things transferees want from their next home (percent ranking either 1 or 2 on a 5-point scale):

A larger home than former residence -- 70 percent
New construction -- 64 percent
Single story -- 37 percent
Multi-story -- 26 percent
Smaller home than former residence --17 percent

"A job transfer is a major life change for employees and their families, and finding a home that fulfills their needs is important and enables the employee to transition to the new job efficiently and with little disruption to family lifestyles and routines," says Gerry Pearce, executive vice president, broker and affinity services for Cartus.

"What we found most interesting was not only what's on their dream home wish lists, but what isn't."

At the Heart of the Matter: An Upgraded Kitchen

For transferees, an upgraded kitchen is definitely considered the heart of their home, ranking highest on the list of desired amenities (percent ranking either 1 or 2 on a 5-point scale).

A water meter key is like insurance; buy it before you need it.

Imagine a pipe has burst and there is water flowing like a river through your home. There may a cut-off valve to each sink if it works and if that’s where the leak is coming from. Your home may have a master cut-off valve but if you haven't used it before, you might not know where it is. The last resort is to cut off all the water to your house at the meter.

In most cases, you'll need a key to get into the meter. With water starting to rise in your home, concern over the damage being done may add to your anxieties. You don’t have time to call a plumber or even go the store to buy a water meter key.

Emergencies are handled much better when you plan for them in advance and practice, even though you hope you’ll never need it.

1. Determine what kind of key you need to open your water meter.
2. Purchase it at the home improvement or hardware store.
3. Practice opening the meter to be able to do it quickly and easily.
4. If your meter key doesn’t have a wrench on one end, you need a wrench to turn the water valve.
5. Practice turning the water off just to see how it works and feels.
6. Put the key in an obvious and conspicuous place.
7. Have the phone number of an emergency plumber, just in case you need it.

While you’re planning for the unexpected, it might be a good idea to show some of the other family members how it works and where you keep the key.