A: Yes. Two very popular programs offered by the Department of Housing and Urban Development (HUD) include the Title 1 Home Improvement Loan and the Section 203(k) Program. In the first program, HUD insures the loan up to $25,000 for a single-family house to cover alterations, repairs, and site improvements.

The latter program, which also insures mortgage loans, is HUD’s primary program for the rehabilitation and repair of single-family homes. Loans are also available from the Department of Veteran Affairs to buy, build, or improve a home, as well as refinance an existing loan at interest rates that are usually lower than that on conventional loans. The Rural Housing Repair and Rehabilitation Loan program, funded by the Agriculture Department, offers low-rate loans to low-income rural residents who own and occupy a home in need of repairs.

Funds are also available to improve or modernize a home or to remove health and safety hazards. The federal government isn’t alone in its efforts to provide assistance. Local and state governments offer special home improvement programs. Contact your governor or mayor’s office for more details.

Freddie Mac has released the results of its Primary Mortgage Market Survey® (PMMS®), showing fixed mortgage rates moving slightly higher while continuing to remain near their all-time lows helping to support the housing market.

According to results, the 30-year fixed-rate mortgage (FRM) averaged 3.41 percent with an average 0.7 point for the week ending October 25, 2012, up from last week when it averaged 3.37 percent. Last year at this time, the 30-year FRM averaged 4.10 percent.

The 15-year FRM this week averaged 2.72 percent with an average 0.6 point, up from last week when it averaged 2.66 percent. A year ago at this time, the 15-year FRM averaged 3.38 percent.

Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.75 percent this week with an average 0.6 point, the same as last week. A year ago, the 5-year ARM averaged 3.08 percent.

Results show that the 1-year Treasury-indexed ARM averaged 2.59 percent this week with an average 0.4 point, down from last week when it averaged 2.60 percent last week. At this time last year, the 1-year ARM averaged 2.90 percent.

"Mortgage rates remained relatively unchanged this week and should continue to support the housing market and mortgage refinance,” says Frank Nothaft, vice president and chief economist, Freddie Mac. “Existing home sales in September eased slightly to 4.75 million but was the second strongest annualized pace since May 2010. Moreover, new home sales rose to the most since April 2010. In addition, low rates and strong demand have already pushed the FHFA purchase-only home price index in August to its highest level (seasonally adjusted) since June 2010. And not surprisingly, the Federal Reserve in its October 24th monetary policy announcement acknowledged the further signs of improvement in the housing sector, albeit from a depressed level."

For more information, visit www.FreddieMac.com.

Sales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 389,000 units in September, according to newly released figures from HUD and the U.S. Census Bureau. This is the fastest sales pace recorded since April of 2010.

“Combined with consistent, positive reports on housing starts, permits, prices and builder confidence in recent months, today’s data provides further confirmation that a gradual but steady housing recovery is underway across much of the nation,” says Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase, assuming they can qualify for a good mortgage under today’s exceedingly stringent guidelines.”

“New-home sales this year have consistently and significantly out-paced their year-ago levels as favorable interest rates, rising prices and improving consumer confidence have driven demand higher,” notes NAHB Chief Economist David Crowe. “Meanwhile, despite a small increase in the inventory of new homes on the market in September, the number of completed new homes for sale is now at an all-time low and the month’s supply is at its tightest since October 2005. This is an indication that builders continue to have a tough time obtaining construction credit, even as demand for new homes increases.”

Three out of four regions registered substantial gains in new-home sales this September, including the Northeast’s 16.7 percent increase, the South’s 16.8 percent increase and the West’s 3.9 percent increase. The Midwest was the exception to the rule, with a 37.3 percent decline.

Meanwhile, the inventory of new homes for sale inched slightly upward to a still-low 145,000 units in September, which is a 4.5-month supply at the current sales pace.

For more information, visit www.nahb.org.

So many real estate professionals today are wondering, “How can I stay positive in today's market?” Like any discriminating real estate professional, you realize the value of a positive mental attitude. Here are 8 ways that you can create and maintain a positive mental attitude in today's market.

1. Avoid toxic people
What does this mean? Who are the toxic people?

Toxic people can be well-meaning people but when they talk to you, they are coming from a negative attitude about money, finances, and especially about the current real estate situation.

They may be fellow real estate professionals who want to gather around the water cooler, they may be relatives who are just trying to protect you; they may even be friends and family.

You will know if you've been around a toxic person, because you will begin to feel deflated.

Here's your job: either change the subject or walk away. Better yet, speak up for yourself and mention that you want to think positively about yourself and about your business.

If you see one of them coming your way find a way to avoid the interaction because it does not serve your highest good (or theirs).

2. If you've tried everything and exhausted ways to avoid toxic people, then you may have to set an internal boundary.
You can do this very simply by having your own inner conversation if someone is saying something negative to you on the outside.

A great example of an inner conversation when someone is complaining about their business or about the marketplace is to say to yourself, “that may be true for you but it's not true for me.” This can become your inner mantra.

3. Avoid the media
Why? Remember that the intention of the media is to sell newspapers and magazines. The more they can paint a negative and fearful picture, the more their sales go up.

In fact there is a saying in the newspaper business, “If it bleeds, it reads.” That may seem harsh, but pick up any newspaper and you'll see what I'm talking about.

Why subject yourself to slanted, negative spins on the economy when you can find just as much information to point to the positive?

4. Successful real estate professionals do well in any market.
Were you aware of that? Knowing that fact, none of us can continue to use the excuse about the market being bad.

In fact, I am coaching several clients right now who in the last six months have doubled and tripled their incomes.

In addition to the right marketing strategies and regular lead generation activities, you could help yourself with this empowered belief:

“I now draw to me clients who are ready, willing and able to make a transaction in the next 30 days.”

5. Look for the opportunity in today's marketplace
There are many opportunities in today's market and successful real estate professionals are taking advantage of them.

Let your prospective clients know this and then say to them, “Let’s get you a deal.” Few could resist this invitation.

6. Remember that your success depends on your mindset, not on the outer conditions of the market.
“If you believe you can or you can't, either way you are right.” - Henry Ford.

What mindset do you choose to nurture inside yourself? Do you want to believe, “I can “or “I can’t”. Your beliefs create your reality so whatever you choose to believe will become true for you.

7. Remember to engage the Law of Attraction as one of your most powerful tools
The law of attraction states that you get what you focus your attention on. Furthermore, your beliefs create your reality so choose your beliefs carefully.

Here’s a tip: instead of saying “I can't possibly succeed in today's market,” choose instead to focus one of these beliefs:

“I achieve whatever I set my mind to”
“I am a money market in any situation”
“I attract clients who appreciate and respect my expertise”
“My success depends on my attitude, not on any outer circumstances”

8. Be proactive
In any marketplace there are always people wanting to buy and sell homes. They need your help and they need your expertise.

Your job is to become visible to them. In today's market, they are not likely to fall in your lap.

However with a good system of lead generation, you can contact them and use your intention to attract your ideal clients.

Be sure to clear out any self-limiting beliefs that stop you from picking up the phone.

Follow the suggestions mentioned above and you'll be happy to notice that are only are you staying more positive, but also your income is increasing as well.

Dr. Maya Bailey, Multiple 6 Figure Income Business Coach for Real Estate Professionals, integrates her 20 years of experience as a psychologist with 15 years of expertise in marketing.

For more information, visit www.90daystomoreclients.com.

Freddie Mac recently released its U.S. Economic and Housing Market Outlook for October showing the expansion of the Federal Reserve's Maturity Extension Program is sparking a further pick-up in housing activity. Therefore, Freddie Mac is revisiting its economic and housing market projections for the remainder of this year and for 2013.

Outlook Highlights:
• Housing contributed 0.3 percentage points to the first-half 2012 real GDP growth of 1.7 percent (annualized) and will likely add a similar boost during the second half of the year after being a net drag on GDP from 2006-2010.
• Anticipate 7 million borrowers refinancing in 2012, resulting in an aggregate of $15 billion in mortgage payment savings over the first 12 months after the refinance, a substantial infusion of funds to help strengthen savings and consumption spending by owners.
• Expect single-family origination volume to come in close to $2 trillion in 2012, about a 30-percent rise from 2011, and then drop by 15 to 20 percent in 2013 as refinance 'burnout' and somewhat higher mortgage rates during the latter half of next year lead to less refinance activity.
• Anticipate a favorable interest-rate environment to remain through the end of this year and into next with the 30-year fixed-rate mortgage averaging around 3.50 percent.
• Watch a short preview video and download the complete October 2012 U.S. Economic and Housing Market Outlook [PDF]. Freddie Mac compiles data on major economic and housing and mortgage market indicators and offers forecasts based on those indicators.

"The housing sector's performance since the Great Recession has been unlike any other recovery over the last 65 years,” says Frank Nothaft, Freddie Mac, vice president and chief economist. “However, now we're seeing housing resuming its traditional role of leading the recovery charge and once again being the bright spot in the economy. With QE3 in motion we should see even more pick-up in housing activity thereby providing greater benefits to the overall economy and consumers looking to refinance or purchase a home."

For more information, visit www.FreddieMac.com.

According to the Mortgage Bankers Association (MBA), the seasonally adjusted total mortgage applications index, a measure of mortgage demand, declined by 4.2 percent in the week ending on October 12, 2012.

The reported decline in the weekly total mortgage applications index reflected a 5.3 percent decrease in MBA’s total refinance application index. Applications for refinancing represent 81.7 percent of total applications.

While the applications for refinancing declined, the applications for purchases index rose by 1.0 percent. Despite this most recent release, applications for refinancing have moved broadly higher since the beginning of 2011 whereas the mortgage applications for purchase index has trended flat since 2010.

Data from the Federal Home Loan Mortgage Corporation, Freddie Mac, show that mortgage interest rates continued their descent. In the week ending October 18, 2012, the 30-year fixed rate mortgage settled at 3.37 percent, a 2 basis point decline from the previous week.

The newly released data is consistent with the broader trend of lower mortgage rates. The path of mortgage rates largely reflects the actions taken by the Federal Reserve’s Federal Open Market Committee (FOMC), including their most recent announcement that they will begin purchasing $40 billion of agency mortgage-backed securities, to push interest rates down. Since this FOMC statement was released on September 13, the 30-year mortgage rate has fallen by 22 basis points on a weekly basis and the spread between the 30-year mortgage and the 10-year Treasury note has tightened by 34 basis points.

Although total mortgage applications for purchase have remained flat, the underlying components have begun to normalize. Historically, demand for conventional mortgages for purchase exceeds those of government mortgages.

Between 2000 and 2002, the spread between these two indices averaged 229.0 points. During the housing boom, this difference rose to an average of 550.0 points as conventional mortgage applications for purchase became easier to obtain. Following a steep decline in conventional mortgage applications for purchase, demand for conventional mortgages for purchase leveled off in 2010 and 2011 and matched the government mortgage applications for purchase index. Since the beginning of this year, conventional mortgage applications have risen by 44.2 percent and again exceed their government counterpart.

Recent acceleration in conventional mortgage applications for purchase suggests that mortgage demand is strengthening, though it remains well below normal. Since government mortgage applications for purchase were less effected by the boom and bust cycle in the housing market, restoring the level of total mortgage applications will require continued recovery on the conventional side.

Read this original post on the NAHB blog, Eye on Housing.

Nationwide production and permitting of new homes rose sharply in September to their highest levels in more than four years, according to newly released figures from HUD and the U.S. Census Bureau. A 15 percent gain brought the pace of new housing construction to a seasonally adjusted annual rate of 872,000 units, while an 11.6 percent gain brought the pace of permit issuance to 894,000 units. These were the strongest numbers seen in both categories since July of 2008.

“Builders are responding to the rising demand for new homes as consumers begin to feel more confident about their local markets and put back into motion purchasing plans that were on hold during the recession,” says Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “Yet, while September’s surge in activity is certainly encouraging, we need to remember that we still have a long way to go back to a fully functioning market -- and in order to get there, significant challenges must still be addressed in terms of credit availability and appraisal issues, as well as the increasing cost of building homes due to rising materials prices and a declining inventory of buildable lots.”

“Today’s strong report corresponds with the significant gains we’ve seen in builder confidence over the past year, and confirms our view that a housing recovery is solidly underway in a growing number of markets nationwide,” adds NAHB Chief Economist David Crowe. “That said, we are now almost at the half-way mark in terms of what would be considered a normal amount of new-home construction in a healthy economy, and we need to see consistent improvement like this over an extended period to get back to where the market should be in terms of generating jobs and economic growth.”

The overall gain in new-home construction in September was reflected across both the single- and multifamily sectors, with the first posting an 11 percent gain to a rate of 603,000 units – the best pace since August of 2008 – and the second posting a 25.1 percent gain to 269,000 units – the best pace since September of 2008.

Combined single- and multifamily starts rose in all but one region of the country in September, with a 6.7 percent gain in the Midwest, a 19.9 percent gain in the South and a 20.1 percent gain in the West. Only the Northeast posted a decline, of 5.1 percent.

Issuance of new building permits, which can be an indicator of future building activity, also registered significant gains in both the single-family and multifamily sectors in September. Single-family permits rose 6.7 percent to a seasonally adjusted annual rate of 545,000 units while multifamily permits rose 20.3 percent to 349,000 units. In both cases, these were the highest permit numbers since July 2008.

Regionally, permit issuance rose across the board in September, with the Northeast posting a 6.0 percent gain, the Midwest posting a 19.5 percent gain, the South posting a 10.5 percent gain and the West posting an 11.3 percent gain.

For more information, visit www.nahb.org.

Sparked by rising home prices across much of the nation, the housing recovery is now under way, but fiscal uncertainties and other challenges could result in a bumpy ride in the coming months, according to economists participating in yesterday’s National Association of Home Builders (NAHB) webinar on the construction and economic outlook.

“We’re seeing a more robust housing sector than many other parts of the economy,” says NAHB Chief Economist David Crowe. “One of the reasons is we have finally begun to see on a national scale that house prices are picking up again.”

Crowe cited a number of other factors that are carrying the housing momentum forward. These include:

• Pent-up household formations
• Rising consumer confidence
• Increasing builder confidence in all three legs of the industry: remodeling, multifamily and single-family construction
• Growing rental demand
• More than 100 metros currently on the NAHB/First American Improving Markets Index

However, Crowe offered several cautionary factors that continue to put a drag on housing activity at this time – including builders who are experiencing difficulties in obtaining production credit, qualified buyers who are unable to obtain mortgage loans, inaccurate appraisals, seriously delinquent mortgages that are at least 90 days late or in foreclosure, and a limited inventory of developed lots in certain markets.

Other causes contributing to uncertainty in the marketplace include the looming “fiscal cliff” that will trigger mandatory budget cuts and tax increases at the beginning of next year, pending Dodd-Frank Act regulations that are making financial institutions hesitant to lend since they don’t know how the new rules will affect them, tax reform, and the future role of Fannie Mae and Freddie Mac in the nation’s housing finance system.

NAHB is forecasting a 21 percent increase in single-family starts this year to 528,000 units and a further 26 percent climb to 665,000 units in 2013.

Multifamily housing starts are expected to rise 26 percent this year to 224,000 units and 6 percent in 2013 to 238,000 units.

Optimistic Housing Outlook
Expressing a more bullish outlook on housing and economic growth, Mark Zandi, chief economist for Moody’s Analytics, forecast that GDP growth will range in the 2 percent range this year and next and “double that growth closer to 4 percent in 2014 and 2015.” At the same time, he expects job growth to go from two million per year to closer to 3 million in 2014 and 2015.

“A big part of this optimism is the housing market,” says Zandi. “I expect 1.1 million total housing starts in 2013, 1.7 million to 1.8 million in 2014 and over 1.8 million in 2015.”

Zandi notes a range of assumptions behind this rosy forecast, including the expectation that mortgage rates would remain very low, the availability of housing credit will improve as private mortgage lending begins to pick up, and the job market gains traction as policymakers work to resolve fiscal issues, which will ease market uncertainties.

Specifically, Zandi cites three critical fiscal policy concerns:

• The fiscal cliff. If policymakers do nothing, the combination of pending tax increases and spending cuts set to take effect in January could produce a fiscal drag of four percentage points, Zandi says, which would throw the economy back into recession. “Hiring will remain weak until this is resolved,” he said.

• Treasury debt ceiling. By late February or early March, the Treasury is expected to hit its debt ceiling. A failure to raise the ceiling would prevent the U.S. government to borrow to meet its existing legal obligations, including the issuance of monthly Social Security checks.

• Achieve fiscal sustainability. Zandi says that federal government expenditures as a percentage of GDP is 24 percent and revenues is 17 percent. He said this seven-point gap needs to be slashed to closer to two percentage points of GDP. “We need spending cuts and tax revenues to narrow future deficits,” he said. “If we can’t do that, bad things will happen.”

Acknowledging that these challenges won’t be easy, Zandi says his forecast is based on the assumption that Democrats and Republicans will eventually strike a deal on these contentious issues because each side has much to lose. Democrats, he says, don’t want to see tax cuts for the wealthiest Americans and Republicans don’t like the defense cuts mandated by sequestration.

If the nation has the “political will to address the fiscal issues in a reasonable way, I think we will be off and running,” says Zandi.

A Gradual Climb to Normal
Delving into the state statistics behind the national numbers, Robert Denk, NAHB’s assistant vice president for forecasting and analysis, cited a range of differences among the states in the amount of pain suffered during the recession and the progress that is being made in recovering.

The hardest hit states -- such as Arizona, Florida, California and Nevada -- bottomed out the furthest during the downturn and still have much ground to make up.

Meanwhile, several energy producing states – North Dakota, Texas, Oklahoma, Montana and Wyoming – will be back to normal levels of housing production by the end of 2014.

On a national basis, housing starts are projected to get back to 55 percent of normal production by the end of next year and 70 percent of normal by the end of 2014, Denk said.

For more information, visit www.nahb.org.

The question plaguing every tenant who wants a home of their own is whether they should continue to rent or is it the right time to buy?

The combination of good prices and low mortgage rates make it considerably cheaper to own than rent in most markets. Assuming a person is qualified with a down payment and won't be moving for several years, there may not be a better time to buy a home.

In the example below, the total house payment is $1,281.01 compared to $1,500 to rent the same home. Before you consider any of the financial benefits attached to home ownership, it's cheaper to own than to rent.

The net cost of housing falls to $764 or just more than half the house payment when you consider the principal reduction due to normal amortization, a modest appreciation and the tax savings along with a reasonable maintenance expense that a tenant would not have to pay.

One of the biggest benefits is the growing equity. As the value goes up, the unpaid balance goes down. A favorable leverage causes their low down payment to grow to $40,609 in a short seven years based on a modest 1% appreciation.

There's an expression often heard in real estate circles: "Whether you rent or buy, you pay for the house you occupy." You're either buying it for yourself or you're helping the landlord buy it.

Check out a Rent vs. Own to see how your numbers will compare to this example or call me to do it for you.

"Big U.S. banks are hiring mortgage bankers to meet a surge in demand for home loans and refinancings, but they are still struggling to process applications, which could undermine the Federal Reserve's attempts to stimulate the economy."

Perhaps banks are still wary of what they have gone through during the 2007-2009 crisis which left many of them wounded, thus they are responding to mortgage demands too slowly.

Read more here...