Home Loan Demand Sinks to 13-Year Low
Demand for loans to buy U.S. homes shriveled to a 13-year low last week, following the expiration of federal tax credits, while near-record low mortgage rates stoked refinancing, the Mortgage Bankers Association said on Wednesday. Mortgage purchase applications sank 27.1 percent to the lowest level since May 1997 in the absence of the popular government support, the group said. U.S. housing groped for footing after more than a year of homebuyer tax credits worth up to $8,000 expired on April 30. Requests for home purchase loans have fallen almost 20 percent over the past month despite low borrowing costs. "The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season," Michael Fratantoni, the industry group's vice president of research and economics, said in a statement.
Overall loan requests were down 1.5 percent, on a seasonally adjusted basis, in the week ended May 14, cushioned by a 14.5 percent jump in mortgage refinancing applications as home loan rates neared historic lows. Average 30-year mortgage rates fell 0.13 percentage point last week to 4.83 percent, the lowest since last November, the MBA said. The record low was 4.61 percent in March 2009, based on the group's survey, which has been conducted since 1990. Low borrowing costs and stabilizing home prices are being offset by near double-digit U.S. unemployment and a looming supply of foreclosed properties yet to hit the market. The worst of the housing crisis is over but recovery will be long and slow, most economists agree.
JDS Properties
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www.jdspropertiesmemphis.com
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#1 Turnkey Whitehaven rental
18.46% ROI
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5024 Shubert Memphis TN 38109Memphis TN 38109 . 903sqft 3 bed 1.5 baths.
Purchase price of only $27,500 ARV= 60,000
Estimated monthly rental income $700/mth (8,400/yr)
Minus management fee 56/mth
Minus monthly taxes 78.77/mth
Minus monthly insurance 30/mth
Minus maintenance 56/mth
Minus vacancy 56/mth
= $423.23 positive monthly cash flow (5,078.76/yr) =18.46% ROI
EMAIL OR CALL JDS PROPERTIES @ (901) 212-7246 FOR MORE INFO OR PICS
Thursday, May 20, 2010
Thursday, May 13, 2010
House Prices Up 5.1 Percent in April Amid Slower REO Growth
House Prices Up 5.1 Percent in April Amid Slower REO Growth
Home prices in April gained 5.1% from last year, while REO levels across the country slowed their climb, according to the real estate data provider Clear Capital. The firm measures home prices on a rolling three-month period. REO took up 29.6% of the market in April, less than a percentage point of growth from 28.9% in March when levels increased from 26.1% in February. The best performing markets manage to post positive gains as the tax credit expired in April. Alex Villacorta, senior statistician at Clear Capital, said an interesting dynamic their seeing is the distinction between markets that resist increased levels of REO and those that remain sensitive to them. “For example, the highest performing metro areas have seen prices remain relatively flat over the last quarter despite REO saturation rates averaging just above 33 percent. Contrast this with the lowest performing areas which have seen prices drop dramatically with average declines of more than 10 percent and average REO saturation rate less than those in the highest performing areas,” Villacorta said. “This paradox suggests that price trends are not wholly dependent on distressed sale volume, and re-enforces the need to understand local market trends.”
wanna invest in real estate? check us out at www.jdspropertiesmemphis.com
Whitehaven rental
12.88% ROI
324 Dreger Memphis TN 38109. 1595sqft 4 bed 2 baths.
Purchase price of $39,000 ARV= 80,000
Estimated monthly rental income $750/mth (9,000/yr)
Minus management fee 60/mth
Minus monthly taxes 121.13/mth
Minus monthly insurance 30/mth
Minus maintenance60/mth
Minus vacancy 60/mth
= $418.87 positive monthly cash flow (5,026.44/yr) =12.88% ROI
EMAIL OR CALL JDS PROPERTIES @ (901) 212-7246 FOR MORE INFO OR PICS
Home prices in April gained 5.1% from last year, while REO levels across the country slowed their climb, according to the real estate data provider Clear Capital. The firm measures home prices on a rolling three-month period. REO took up 29.6% of the market in April, less than a percentage point of growth from 28.9% in March when levels increased from 26.1% in February. The best performing markets manage to post positive gains as the tax credit expired in April. Alex Villacorta, senior statistician at Clear Capital, said an interesting dynamic their seeing is the distinction between markets that resist increased levels of REO and those that remain sensitive to them. “For example, the highest performing metro areas have seen prices remain relatively flat over the last quarter despite REO saturation rates averaging just above 33 percent. Contrast this with the lowest performing areas which have seen prices drop dramatically with average declines of more than 10 percent and average REO saturation rate less than those in the highest performing areas,” Villacorta said. “This paradox suggests that price trends are not wholly dependent on distressed sale volume, and re-enforces the need to understand local market trends.”
wanna invest in real estate? check us out at www.jdspropertiesmemphis.com
Whitehaven rental
12.88% ROI
324 Dreger Memphis TN 38109. 1595sqft 4 bed 2 baths.
Purchase price of $39,000 ARV= 80,000
Estimated monthly rental income $750/mth (9,000/yr)
Minus management fee 60/mth
Minus monthly taxes 121.13/mth
Minus monthly insurance 30/mth
Minus maintenance60/mth
Minus vacancy 60/mth
= $418.87 positive monthly cash flow (5,026.44/yr) =12.88% ROI
EMAIL OR CALL JDS PROPERTIES @ (901) 212-7246 FOR MORE INFO OR PICS
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