Page 4
On the Move - Helen Adams Realty
Volume 4, Issue 4
Loan Demand Up as Rates Stay Stable Borrowers Rush to Beat FHA Premium Increase Demand for home purchase loans picked up at the end of March to the highest level of the year, while mortgage rates remained mostly unchanged, according to surveys by the Mortgage Bankers Association (MBA) and Freddie Mac. The MBA's Weekly Mortgage Applications Survey showed demand for purchase loans grew a seasonally adjusted 6.7 percent during the week ending April 1 when compared to the week before. MBA said last week's increase in purchase loan demand was due to a sharp increase in applications in government loans, likely due to a scheduled increase in FHA insurance premiums. Demand for government-backed loans (by the Federal Housing Administration, U.S. Department of Veterans Affairs and U.S. Department of Agriculture) surged a seasonally adjusted 10.3 percent, to the highest level since May 7, 2010.
With the pool of borrowers who have the ability to qualify for a refinance continuing to shrink, requests for refinancings have dropped to the lowest share since May, 2010. In a March 15 forecast, MBA economists predicted that rates on 30-year fixed-rate loans
Article excerpts from Inman News, April 7, 2011
will continue a gradual rise next year, climbing to an average of 6.2 percent in the final three months of 2012. MBA also predicted a 3.6% increase in existing home sales for 2011 compared to 2010, and a 6.7 % increase in sales for 2012 vs. 2011.
Residential Closings - Entire MLS
March 2010 - March 2011 ASP = Average Sold Price
Interest Rate Forecast
Data Courtesy Carolina MLS.
Home Sales Forecast
Data Source: MBA Mortgage Finance Forecast, March , 2011
The average closing price for the Charlotte area in March 2011 was $194,465, down approximately 1.6% compared to 2010. Average days on market was 159 for the month of March 2011.
There were 1903 total closings in March 2011, up 0.2% compared to 2010. The bulk of home sales continues to be in the lower price ranges, with 76% of sales in the $250,000 and under category.
Current Active Listings by Price Range
March 2011 Closed Sales by Price Range .08%
2% 8%
Under $120,000
9%
28%
$120 - $150,000 $150 - $250,000
13%
4%
$250 - $350,000
11% 36%
26%
$500K - $1 Million
27%
Over $1 Million
$120 - $150,000 $150 - $250,000 $250 - $350,000
$350 - $500,000
13%
Under $120,000
8%
14%
$350 - $500,000 $500K - $1 Million Over $1 Million
Total Active Listings = 22,401
Total Sold March 2011 = 1903
Data Courtesy Carolina MLS.
Data Courtesy Carolina MLS.
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