Home-loan demand soars in first week of 2007
Lower interest rates seen stabilizing housing market
U.S. mortgage applications skyrocketed during the first week of 2007 as interest rates fell for the first time in five weeks, lending support to the view that the housing market is stabilizing, an industry trade group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, jumped 16.6 percent to 671.1 for the week ended Jan. 5.
However, the monthly average shows a decline in the volume of applications for home loans, with the four-week moving average down 2 percent.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.13 percent, down 0.09 percentage point from the previous week. Interest rates were above year-ago levels of 6.08 percent.
The MBA's seasonally adjusted purchase index, widely considered a timely gauge of U.S. home sales, soared 16.2 percent to 472.8, its highest since the week ended Jan. 20, 2006 when it reached 473.7. The index was also above its year-ago level of 457.4.
The group's seasonally adjusted index of refinancing applications surged 17.3 percent to 1,923.8. A year earlier the index stood at 1,497.5.
The refinance share of applications increased to 48.4 percent from 48.1 the previous week.
Fixed 15-year mortgage rates averaged 5.85 percent, down from 5.93 percent. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 5.79 percent from 5.84 percent.
The ARM share of activity decreased to 20.1 percent from 20.4 percent the previous week, its lowest since July 2003.
The MBA's survey covers about 50 percent of all U.S. retail residential loans. Respondents include mortgage banks, commercial banks and thrifts.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http:///www.951info.com Elite Properties and Finance

U.S. home construction climbed in December
The pace of U.S. home construction climbed 4.5 percent in December, a second-straight monthly increase that ran contrary to analyst expectations.
But for all of 2006 the rate of new home building posted the biggest decline in 15 years, a government report on Thursday showed.
The Commerce Department said housing starts closed out the year at an annual pace of 1.642 million units in December compared to 1.572 million units in November.
Economists had forecast December housing starts to fall to 1.560 million units from November’s originally reported pace of 1.588 million units.
For all of 2006 housing starts totaled about 1.8 million, that was down 12.9 percent from the 2005 total, the biggest decline since 1991.
Building permits, which offer a clue to future construction plans, rose 5.5 percent to a 1.596 million unit pace.
Economists were expecting building permits would register a 1.500 million unit pace, close to the 1.513 million unit figure reported for November.
Permit applications for the year were down 14.9 percent, the biggest decline since 1990.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate and Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance.

Home-loan demand soars in first week of 2007
Lower interest rates seen stabilizing housing market
U.S. mortgage applications skyrocketed during the first week of 2007 as interest rates fell for the first time in five weeks, lending support to the view that the housing market is stabilizing, an industry trade group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, jumped 16.6 percent to 671.1 for the week ended Jan. 5.
However, the monthly average shows a decline in the volume of applications for home loans, with the four-week moving average down 2 percent.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.13 percent, down 0.09 percentage point from the previous week. Interest rates were above year-ago levels of 6.08 percent.
The MBA's seasonally adjusted purchase index, widely considered a timely gauge of U.S. home sales, soared 16.2 percent to 472.8, its highest since the week ended Jan. 20, 2006 when it reached 473.7. The index was also above its year-ago level of 457.4.
The group's seasonally adjusted index of refinancing applications surged 17.3 percent to 1,923.8. A year earlier the index stood at 1,497.5.
The refinance share of applications increased to 48.4 percent from 48.1 the previous week.
Fixed 15-year mortgage rates averaged 5.85 percent, down from 5.93 percent. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 5.79 percent from 5.84 percent.
The ARM share of activity decreased to 20.1 percent from 20.4 percent the previous week, its lowest since July 2003.
The MBA's survey covers about 50 percent of all U.S. retail residential loans. Respondents include mortgage banks, commercial banks and thrifts.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance.

How to make your home worth more in 2007
Amid soft demand, improvements require focus and a bit of elbow grease
Boosting the value of your home is never an easy task. It takes time, money, and — when your kitchen's covered in plastic tarp — weeks of pizza delivery. And with home prices still sliding in many parts of the country, getting a return on your investment is now tougher than ever. Luckily, there is a secret to smart remodeling in a buyer's market: Do as much as you can with as little as possible.
Homeowners may have learned this lesson last year, when big spending on home improvement did not lead to big profits. According to Remodeling Magazine's 2006 "Cost vs. Value" report, prices for most remodeling projects increased last year while their resale value decreased. Major, mid-range kitchen remodels, at an average cost of $54,000, returned just 80.4% in 2006 vs. a 91% return on $43,862 in 2005. Even the most profitable project in 2006 — upscale fiber-cement siding replacement — recouped just 88% of its total cost.
Americans spent $155 billion on home improvements and repairs in 2006, a 2.8% increase over 2005's total, according to Harvard University's Joint Center for Housing Studies. The Center estimates that we will spend over $160 billion in 2007, but if resale prices continue to lag behind remodeling costs, the pricey projects won't pay off.
an ambitious homeowner to do? First, rule out needless projects by comparing your home to the others in your neighborhood. Ask your real estate agent for a list of homes for sale nearby so you can see what is being offered, and take advantage of open houses.
"You want to make sure you can turn apples into apples before you make any improvements," says Sid Davis, author of Home Makeovers That Sell: Quick And Easy Ways to Get the Highest Possible Price. "If you put in granite countertops and everyone else has laminate, your house could end up overpriced."
You will probably want to focus on the areas that are most important to prospective buyers — the exterior, the kitchen, and the bathrooms — and skip over frivolous renovations and additions of offices, sun rooms, and master suites. The least profitable project in 2006 was a home-office remodel, which returned 63.4% of remolding costs at resale.
Once you have narrowed down your options, stick to minor improvements. While major upscale kitchen projects, costing an average of $107,000, recouped just 75.9% of their cost in resale in 2006, minor kitchen remodels, costing $18,000 on average, did much better, with an average return of 85.2%.
Channel Your Inner Handyman (or Woman)Of course, remodeling on a budget means more work for you. But do-it-yourself projects can have a major impact on a home's value, and they can be as simple as cleaning up.
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"Have your mother-in-law come over and give you a report on how clean it is," says Davis. Then, starting with the front yard, eliminate all waste and clutter. Weed the garden and mow the lawn. Wash the siding and walls. Scrub the kitchen and bathroom. Shampoo the carpets.
"The cleaner, brighter, and more spacious a home appears, the quicker it sells, and for a lot more than a house in a 'homey' state," says Sharon Rizzo, principal of Chicago-based real estate investment firm Rizzo Realty Group.
For the handier among us, tiling can be an amusing way to perk up the kitchen or bathroom. Discontinued tile can cost as little as $1.50 per square foot, and stores such as Home Depot and Lowes even offer tiling classes. Refinishing kitchen cabinets is also much easier than you might think. Sand, apply a lighter stain or finish (this will make the kitchen seem bigger), and replace old knobs and handles with new stylish ones.
When all else fails, a few coats of semi-gloss paint in a light color can go a long way, making your walls appear brighter and your rooms seem larger.
Given last year's smaller returns, the forecast for increasing your home's worth in 2007 may still not look promising, but your specific situation may put you at an advantage. "Many factors affect a home's value and, consequently, the resale value of any given remodeling project," says Pat Vredevoogd Combs, president of the National Association of Realtors, in reaction to the 2006 "Cost vs. Value" report.
As always, your local real estate market is one important factor to consider before remodeling your home. Last year, homeowners in the Pacific region (Alaska, Hawaii, Washington, Oregon, and California) saw the highest percentages of remodeling costs returned in resale. Minor mid-range ($19,000) kitchen remodels in that region recouped 106.4% of their project cost in resale, while mid-range ($15,000) bathroom remodels had 103.2% returns.
In general, hot markets, such as Seattle — which is expected to see a 3.6% increase in median home price and 4.7% jump in housing starts in 2007 — usually see higher returns on home improvement projects.A good agent can spot buyer turnoffs, advise you what to improve, and figure out your home's true worth based on the local market. If you have made all the necessary improvements and you still don't like what you hear, simply wait for the storm to pass, and in the meantime, enjoy the fruits of your labor.
For more information about buying selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance.

Home-loan demand soars in first week of 2007
Lower interest rates seen stabilizing housing market
U.S. mortgage applications skyrocketed during the first week of 2007 as interest rates fell for the first time in five weeks, lending support to the view that the housing market is stabilizing, an industry trade group said Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, jumped 16.6 percent to 671.1 for the week ended Jan. 5.
However, the monthly average shows a decline in the volume of applications for home loans, with the four-week moving average down 2 percent.
Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.13 percent, down 0.09 percentage point from the previous week. Interest rates were above year-ago levels of 6.08 percent.
The MBA's seasonally adjusted purchase index, widely considered a timely gauge of U.S. home sales, soared 16.2 percent to 472.8, its highest since the week ended Jan. 20, 2006 when it reached 473.7. The index was also above its year-ago level of 457.4.
The group's seasonally adjusted index of refinancing applications surged 17.3 percent to 1,923.8. A year earlier the index stood at 1,497.5.
The refinance share of applications increased to 48.4 percent from 48.1 the previous week.
Fixed 15-year mortgage rates averaged 5.85 percent, down from 5.93 percent. Rates on one-year adjustable-rate mortgages (ARMs) decreased to 5.79 percent from 5.84 percent.
The ARM share of activity decreased to 20.1 percent from 20.4 percent the previous week, its lowest since July 2003.
The MBA's survey covers about 50 percent of all U.S. retail residential loans. Respondents include mortgage banks, commercial banks and thrifts.
For more information about buying, selling, or financing Corona, Norco and Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance.

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For more information about buying, selling and financing Corona Real Estate, Norco Real Estate, and Riverside County Real Estate go to http://www.951info.com