Posts Tagged ‘mortgages’

« Older Entries

More Good Texas Housing Market News on the Horizon

Monday, November 21st, 2011

Forgive us for talking so much about good news lately, but after so many years of false starts, bad indicators, and ever-present dark clouds on the horizon, it feels good to be focusing in some persistent green shoots. So check out these bits of (record-setting) good news. According to the excellent Modeled Behavior economics blog:

From Bloomberg:

Housing construction permits climbed last month to their highest level since March 2010, according to Commerce Department data, as the near record-low mortgage rates lured some buyers into the market.

The future pace of consumer spending ultimately will be decided by the growth of household income, which in turn is tied to the health of the job market.

And there, Herrmann saw some reason to be optimistic. He forecast that private-sector payrolls would rise an average 160,000 per month for the rest of this year and by 200,000 per month in the first four months of 2012. Private payrolls increased 104,000 in October.

In a sign that the job market may be improving, claims for unemployment benefits dropped to their lowest level in seven months in the week ended Nov. 12, to 388,000, Labor Department figures released yesterday showed.

Though actually most of this is driven by Multi-Family investment. As long as Europe doesn’t destroy the world – and it very well may – I expect Multi-Family starts to be posting record highs by the end of 2012.

And I mean record, never before in American history will construction be started on so many apartment complex units.

Lots and lots of encouraging statistics there. If stats make your eyes glaze over, I’ll recap:

  • The most construction permits issued in 18 months.
  • Between 160,000 to 200,000 private sector jobs are expected to be added each month for the next six months.
  • Unemployment claims dropped to a seven-month low.
  • Record-high home construction starts are expected in 2012.

Of course, a record rebound like this wouldn’t be possible without a huge crash in the first place, so this doesn’t mean the housing environment is better than it’s ever been before. It’s just a bit of a trampoline effect.

Part of the problem is that the house collapse really did devastate livelihoods for families who lost jobs, couldn’t afford their homes, and couldn’t sell their homes in order to move to new jobs. You can imagine the giant drag on an economic recovery this would create. But a collapse of that scale also effects — and can be exacerbated by — those who didn’t actually lose their homes or jobs.

For example, Modeled Behavior also forecasts a similarly robust rebound in auto sales, which, while not directly related to housing, is also an important indicator when looking for signs of an improving economy. And it’s an indicator that is similar to housing — many Americans stopped buying cars following the economic crash not because they didn’t need them, nor necessarily that they couldn’t afford them. It’s just that in an environment of deep uncertainty that followed the crash, many still-employed families decided to hold off on buying that new home or new car until they felt better about their own financial future. Fear, confusion and uncertainty are market irrationalities that can grind an already-sick economy to a halt.

Thus the current high hopes for a robust rebound.

If you’re one of those families that’s in position to buy a new home, now might be a great time to seriously consider doing so before prices begin to rise again. We can help with a comprehensive line of Houston home loans, Dallas home loans, and Austin home loans. Similarly, if you’ve been waiting to renovate your home (say… expanding your garage for that second car you’ve been putting off buying), our Dallas home equity loans, Houston home equity loans, and Austin home equity loans are a great tools for doing so.

Tags: , , , , ,
Posted in Mortgage News | No Comments »

A Pair of Positive Texas Housing Market Indicators

Wednesday, November 2nd, 2011

Two bits of good news this week for folks waiting for the right time to apply for a mortgage in Dallas, Houston or Austin:

1. Consumption is up nationwide. According to Bloomberg:

The U.S. economy grew in the third quarter at the fastest pace in a year as Americans reduced savings to boost purchases and companies stepped up investment in equipment and software.

Gross domestic product, the value of all goods and services produced, rose at a 2.5 percent annual rate, up from 1.3 percent in the prior three months, Commerce Department figures showed today in Washington. Household purchases, the biggest part of the economy, increased at a 2.4 percent pace, more than forecast by economists.

Consumption drives our economy, and it dropped with devastating speed when the economy crashed. Since then, people have been cutting back on expenses to pay off debts or build savings in case of job losses. And, of course, many folks put off buying a new home for a few years until situations improved (if they could even sell their home at all).  This is necessary, but makes for a slow recovery. Therefore, boosted consumption is an indicator that things might be turning around.

2. U.S. home prices increased in September more than expected. According to Business Week:

Sales climbed 5.7 percent to a 313,000 annual pace, figures from the Commerce Department showed today in Washington. The median estimate of economists surveyed by Bloomberg News called for a gain to 300,000. The median price slumped 10 percent from September 2010, the biggest drop in more than two years. Another report showed demand for durable goods excluding transportation equipment climbed last month by the most since March.

The increase in home sales was paced by rising demand in the West and South, while other parts of the country slumped, showing an uneven market that is weighed down by competition from a glut of distressed, previously owned houses.

Of course, a handful of other statistics can be pulled out to show that we’re not quite out of the woods yet. Plus, external factors like the impending debt and banking crisis in Europe could undo the majority of our recent hard-fought gains. But, combined, these trends show that overall trends are looking up a bit — both in Texas and across the nation.

If you’ve been waiting to buy a home until prices bottom out, now might be the right time to do so before growth in prices really starts to pick up steam. If you’ve been waiting to buy a home until prices recover enough to sell your home, well… stay patient. A more favorable market for your situation might be just around the corner.

In the meantime, it might be a good idea to go ahead and start exploring our Dallas home loan, Houston home loans and Austin home loan options for more information. In a volatile market like this one, you’ll want to be ready to pounce when the window of opportunity that’s right for your family cracks open.

Tags: , , , ,
Posted in Home Loans, Mortgage News | No Comments »

Lone Star Recession Recap: Austin Housing Market

Monday, September 19th, 2011

The skyline in Austin never stopped morphing during the recession. Startups are flocking to the city, as well as hip heavyweights like Facebook and Google (who have both set up offices in Austin recently). Add in longtime employment hubs like Dell, plus employment anchors like the state government and the University of Texas (sources that are both stable and dynamic — meaning lots of people moving in and out, creating all sorts of real estate opportunities), and you’ve got a robust city determined to roll right through the recession.

So what does the housing market look like post-recession in one of America’s most recession-proof cities? A glance at the numbers says it’s in better shape than most cities, but not immune to broader economic problems. In fact, many Austinites have been in this situation before.

According to KUT:

Jim Gaines has been in the Central Texas real estate business for over thirty years. When asked if the housing market is the worst he’s ever seen it, he laughed and said, “Certainly not. The oil bust in the 80s was far worse.” Texas’ booming oil industry went belly up in the 1980s and dealt a major blow to the economy. Gaines explains that this concept of big boom equals big bust may be the very thing that has saved most of Texas from the current recession.

The rest of the nation started gaining steam through the 1990s, creating the slowly inflating economic bubble; Texas, however, was still licking its wounds from the oil bust so it did not boom along with everyone else. When the bubble burst, Texas was relatively unaffected

So let’s compare 2010 to 2007 with some data compiled by the Austin Board of Realtors:

  • Across the city, per-square-foot prices declined by 3.39 percent. Home prices stagnated, dropping slightly from $315,281 in 2007 to $314,704 in 2010.
  • Within the city limits, the total number of homes sold dropped 26 percent from 10,831 sold in 2007 to 7,997 sold in 2010.
  • Almost every zip code in Austin experienced declines, including highly coveted neighborhoods in West Lake, Tarrytown, Downtown, and around the UT campus.
  • Unemployment in Austin rose from 3.62 percent in 2007 to 7.12 percent in 2010.

In other words, it’s a great time to buy a home in Austin. Overall, the picture is rosy, and a robust recovery seems inevitable. But, currently, steals abound.

Here at Texas Lending, we’re proud to offer a slew of Austin home purchase loan options, as well as Austin home refinance loan options if you already own a home in the capital city and would like to take advantage of historically low Austin home interest rates. Contact our Austin home loan specialists for more information.

Tags: , , , , , ,
Posted in Home Loans, Mortgage News | No Comments »

Warning: Good Dallas Housing Market News Ahead

Monday, August 29th, 2011

Stagnating economic recovery. Congressional gridlock. A downgrade of America’s always-sterling credit rating. A Eurozone threatening to huff and puff and blow the entire global economy back into a deep recession.

How about some good news for change? Sure, why not.

Compared to most cities across the country, the Dallas housing market is doing, well, pretty darn good. In fact, according the Dallas Business Journal, we’ve got the second most sizzling housing market in America:

Dallas is ranked second in the nation for residential construction activity behind Houston in the value of privately owned housing constructed last year.

For those projects, Houston posted a collective value of $4.17 billion in 2010, according to data compiled by On Numbers, a feature of American City Business Journals , which is the parent company of the Dallas Business Journal. Dallas put up $3.87 billion worth of new privately owned housing in 2010, according to the data.

Houston and Dallas beat out New York City, the nation’s largest metropolitan area in terms of population, by constructing $3.05 billion of projects in 2010. The figures comprise central cities and their suburbs.

Not bad. As we’ve mentioned in the past, some of the residential construction activity can be credited to an upsurge in home remodeling and home renovation activity. Improving your existing house instead of looking for a new home is a great way to ride out the recession and wait for a more favorable housing market — contact us to learn more about Dallas home equity loans and Dallas home refinance loans that can get you the cash you need to start a home remodel.

Furthermore, Dallas will almost always be a favorable place for new home construction compared to many (more expensive) cities, thanks to abundant land and optimistic demographic trends. At Texas Lending, our Dallas home purchase loans can make it possible to build the home of your dreams.

Obviously, many homeowners across Dallas-Ft. Worth are still feeling the hurt — especially those trying to sell their homes. We’ve still got a long way to go before the home-selling in the Metroplex returns to normal levels. But this does indicate that brighter times are ahead.

“Of course, if reading a bit of good news has become so rare for you that it’s painful, don’t worry. Just focus on the fact that the Dallas housing market is second only to our rivals in—groan—Houston. (Or just check out one of our Houston home loan options to see what the top spot feels like.)

Tags: , , , , , , ,
Posted in Home Improvement, Home Loans, Mortgage News | No Comments »

Recession Pt. II: How Could It Effect Housing?

Thursday, August 25th, 2011

Here’s something amazing: interest rates on U.S. Treasury bonds have gotten so low, so cheap, that if you invest in them (widely considered the safest investment you can make), there’s a good chance you’ll end up earning less in interest than the rate of inflation. On a five year bond, for example, you’d lose .75 percent.

In other words, you’re choosing to lose a little bit of money, rather than risking losing a lot of money. You’d be better off sticking your money in a giant piggy bank under a humongous mattress inside of enormous safe).

So why are investors still flocking to U.S. bonds? Well, as we mentioned last week, even a U.S. downgraded by a credit ratings agency is still truly one of the safest investments you can make. We have all the fundamentals for a robust economy — unmatched natural resources, (comparatively) effective governance, and rule of law that is (comparatively) strong. And despite how close we came to defaulting on our debts for self-inflicted reasons, no one really thinks we’ll be unable to pay debts for economic reasons anytime soon. We’re safe.

Plus, foreign countries simply love having dollars, even when it’s a little bit shaky. Global trade relies on a dominant “reserve” currency, and there’s simply nothing else out there to replace it.

But there’s another explanation. According to Bill Gross of PIMCO, the world’s largest bond fund: “They certainly reflect, in terms of their yields, not only a potential for a recession but the almost high probability of recession and the result of lowering inflation.”

So there you go. People are investing in treasuries both because the American economy is awesome, as well as because people think the American economy is about to tank again.

Only in America.

Regardless, it’s good for potential homebuyers. Here’s why:

If we slide back into a recession, the effect on housing won’t be the same. The housing market is holding the recovery back, yes. But it’s not like the housing bubble has re-inflated and is about to pop again. Prices are already about as low as they can get, and they’re going to stay low for a little bit longer. That’s not helping the economy, but it’s not the same as in 2007 and 2008, when so many homeowners saw the value of their homes plummet so precipitously almost overnight.

In fact, one of the most encouraging sign we have for the medium-term outlook in America is that — slowly but surely — the housing mess is sorting itself out. Americans are paying down debts, and the biggest drag on the economic recovery is slowly going away.

For potential home-buyers, this means historically low home prices, historically low Texas home purchase interest rates, and historically low home refinance rates. And here at Texas Lending, we’re proud to boast the lowest Texas home interest rates in the state.

Tags: , , , , , , ,
Posted in Mortgage News | No Comments »

Feds Sticking With Low Home Loan Interest Rates: How It Affects You

Monday, June 27th, 2011

It looks like historically low home interest rates will be here for the foreseeable future — great news for folks in Texas looking to buy a new home.

According to AdvisorOne:

Federal Reserve policymakers are expected on Wednesday to keep interest rates at their historic lows and to make no plans for a third round of quantitative easing after the second round ends on June 30.

They’ll keep the supply of bonds that they hold relatively stable, and that will help keep intermediate- to longer-term interest rates low,” he predicted. “As interest rates stay low, that will hopefully encourage lending, and that lending will encourage growth in the economy. The Fed’s primary tool is monetary policy and interest rates, and they’ve really done everything they can to keep interest rates low.”

The Federal Open Market Committee (FOMC) meeting will be its first since April 27 when it maintained the federal funds rate at 0% to 0.25% and said that conditions in the U.S. economy “are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”

Got it? Gibberish? We’ll explain:

What the Federal Reserve does matters to folks in need of a Texas home loan for several reasons. Primarily, however, it’s because Texas home purchase loan rates and Texas home refinance rates tend to rise and fall almost exactly alongside the Fed’s rates.

Here’s why — in an oversimplified (but hopefully helpful) nutshell:

Interest rates rise when money in the economy gets tight. In a weak economy like the current one, when overall consumption is still far below where it needs to be to sustain a full recovery, the Fed wants to keep interest rates low to make it easier for folks to get loans and start businesses, use credit cards, and buy homes. To achieve this, the Fed increases the money supply, which lowers rates by limiting competition for the available dollars.

This can lead to inflation, debt, and dangerous currency devaluation on the global market if its not carefully controlled, which is why the Fed will eventually reverse course and try to shrink the money supply following an economic recovery.

In other words, eventually federal interest rates will rise, and home loan and home refinance rates will as well. But, if the Fed’s recent moves tell us anything, we’ll see historically low home interest rates for a while longer.

This is excellent news for Texas folks in need of a home loan, home equity loan, or home interest loans. Interest rates are anchored to the rock bottom, and here at Texas Lending, we’re offering the lowest home interest rates of anywhere in the Texas.

Tags: , , , , , , , ,
Posted in Home Loans, Mortgage News | No Comments »

The American Dream Lives: Home-Ownership Proves Its Worth

Friday, June 17th, 2011

Despite all the pain created by the housing market collapse, the long-term case for home-ownership appears to only be getting stronger.

According to the Wall St. Journal:

Despite all the gloom, however, there are growing indications that it is a good time to buy. Mortgage rates, which fell to 4.55% for the week ending June 2, according to Freddie Mac, are near 50-year lows. Homes have become more affordable than they have been in years: According to Moody’s Analytics, the ratio of home prices to income is now 20.9% lower than the 15-year average through 2010, and 12.5% lower than the 1989-2004 average. A historic glut of homes, meanwhile, has created a buyer’s market: There were about 15 million vacant homes in the U.S. last year.

But the long-term benefits of home ownership remain very much intact. For now, at least, you can deduct the mortgage interest on your taxes—a big perk for people in higher tax brackets. You get to paint your walls any color you wish, without having to clear it with a landlord. And assuming you can buy a home for about the same price as you can rent one, buying will give you the ability one day to live rent-free. Come retirement time, a paid-off mortgage means your monthly expenses are significantly reduced, and you have a chunk of equity to play with.

At Texas Lending, our rock bottom Texas home loan interest rates make now a great time to buy. Similarly, our home refinance loan rates are anchored to the floor. But the home-buying environment just isn’t going to get much more ripe than it is right now.

The Wall St. Journal also notes that once the main factor holding markets back — the glut of foreclosures created by the crisis — clears up, other factors like prices and employment should also quickly return back to normal. Currently, signs confidently point to 2013 for the end of the foreclosure mess. Prices could begin to tick up before then.

The numbers needed for a more robust recovery are slowly starting to align here in Dallas more quickly. According to the Dallas Morning News, for example, home foreclosures have seen a pretty big drop these past few months:

Home foreclosure filings in North Texas are down for the fourth consecutive month. The number of Dallas-Fort Worth homes threatened with forced sale by lenders is 6 percent lower for June than a year earlier, according to Foreclosure Listing Service. And foreclosure postings are down 7 percent so far this year compared with the first six months of 2010.

“For the first time in 11 years, foreclosure posting activity for mid-year declined compared to the previous year,” said George Roddy, president of the Addison-based foreclosure tracking firm, in the company’s latest report. The biggest decline in June foreclosure filings was in Dallas County, where postings were 10 percent lower than a year ago.

And when the recovery finally shakes off its sluggishness for good, both interest rates and home prices will increase. That’s good news for the broader economy, but it means the window of this historic buyer’s market will close. Similarly, the chance to refinance your home at at historically low refinance rates will also slip away.

So if you’re in a sound position to consider buying a home, contact one of our Texas home loan specialists to learn more about your options. Opportunities abound out there in the Texas housing market, and we’re eager to help potential homeowners find them.

Tags: , , , , , ,
Posted in Home Loans, Mortgage News | No Comments »

North Texas High-End Homes Surge in Sales

Monday, June 6th, 2011

High-end home sales are up in North Texas, while most other home sales are down. Confused? Don’t be—just learn from it.

According to the Dallas Morning News:

Housing slowdown? What housing slowdown? Sales of higher-price homes in North Texas are rising this year while the overall market is still in the tank. Affluent buyers, many armed with cash, are scouring the market for marked-down mansions in the Park Cities, North Dallas and other exclusive neighborhoods.

While overall home sales in North Texas were down 13 percent in the first quarter, sales of homes priced above $500,000 were 18 percent higher than a year earlier. And purchases of million-dollar homes are up 6 percent in the Dallas-Fort Worth area from first quarter 2010.

Indeed, housing analysts say that homebuyers who’ve put off purchasing, some because they couldn’t sell a current property, may be ready to make a move. “We’ve got almost four years of pent-up demand out there,” said Mark Dotzour, chief economist for the Real Estate Center at Texas A&M University. “People just went on hold about July of 2007, when the credit markets started freezing up. Businesses and consumers have been postponing decisions.”

This is good news for North Texas homeowners who bought homes they couldn’t quite afford before the housing bubble popped, and have been waiting eagerly to sell and move into more affordable digs. And it’s good news for folks in position to take advantage of this buyer’s market, and potentially land a property they wouldn’t have just five years ago. If you’re in position to buy a high-end home (say, Troy Aikman’s $24 million mansion), our Texas mortgage interest rates are anchored to the rock bottom. Now might be the best possible time to do so.

It’s also a good reminder of just how much housing markets can change from neighborhood to neighborhood, and just how important local expertise is when looking to buy a new home. While many neighborhoods in North Texas just can’t seem to see any sort of sustained growth in home prices, others are starting to thrive. Economic recovery, in other words, is an uneven process, so it’s important to look carefully at housing markets when shopping for a new home.

According to prominent real estate attorney Adam Leitman Bailey,:

Today, more than any other time in history, information is the key. You need to become an expert on your local market. There are three things you must do: Look within a small geographic area; look intensely for a short period of time; look at many, many properties.

After a while, you will know what the price should be and will spot a bargain when you see it. Spreading out your search over various neighborhoods, or taking a year to do it, or only going to open houses on Sundays won’t cut it. The market is rapidly changing and very hyper-localized. Focus narrowly and focus intensely.

Here at Texas Lending, we’ll eagerly provide a fountain of knowledge about local housing markets, and are happy to help you learn how to scour Texas for great deals. And when you find the right fit, we’ll carefully walk you through the Texas home loan process.

Tags: , , , , ,
Posted in Mortgage News | No Comments »

First Time Home-Buyer? Three Ways to Get Informed

Monday, May 23rd, 2011

Despite the pain it causes for many Dallas homeowners, a slumping market is still a uniquely lucrative opportunity for first-time home-buyers. If you don’t need to sell your home in order to buy a home, now might be a great time to do exactly that.

But information is key to navigating the home-buying process — especially for those who haven’t done it before.  Here at Texas Lending, our Texas home loan experts can make home-buying easy for you.

Here are three areas where we can give you what you need to know:

1. The Process

A simple, transparent process makes life easier for everyone involved in a home purchase. So we’re eager to tell you everything you need to about:

To understand more, take a look our home loan process resource section, which walks you through everything from credit reports to applications to underwriting approval.

2. The Available Options

Not every potential homeowner will be in the same situation. So we offer a comprehensive variety of home loan options, including:

  • Conventional loans
  • 30-year fixed-rate loans
  • 15-year fixed rate loans
  • FHA loans
  • VA loans
  • Jumbo loans
  • Adjustable-rate mortgages (ARMs)
  • Interest-only loans

3. The Future

At Texas Lending, our goal is to help your family buy a house that you love and that you can afford — both now and two decades down the road. Our careful, informative process is designed to ensure that you won’t end up in over your head.

But circumstances do change over time. Economies boom and slump, rates rise and fall, and jobs are gained and lost. So we offer a smorgasbord of ways to alter your situation down the road, including home refinance loans, home equity loans, and reverse mortgages. In fact, we offer the lowest Texas refinance rates anywhere (Check out today’s home loan rates).

Tags: , , , , , , ,
Posted in Home Loans | No Comments »

Dallas Real Estate Prices: The Musical

Thursday, May 12th, 2011

If housing markets were mountain ranges, America would be the Rockies, Miami would be Himalayas, and the Dallas-Ft. Worth Metroplex would be, well, the Dallas-Ft. Worth Metroplex.

If housing markets were operas? You’ll just have to take a listen for yourself.

Decade of Home Prices

The good folks over at Planet Money are more than a little obsessed with figuring out ways to explain the economy in clear, innovative ways. So it should be no surprise that they went out and hired a real live opera singer to do a fine arts take the Case-Shiller index (which tracks home prices across the nation).

“The Case-Shiller home price index is a powerful way to look at the story of housing in America. You can see the boom and bust all in one simple graph. But when we go on the radio to talk about home prices, a graph isn’t much good to us — nobody can see it.

So we converted the Case-Shiller graph into musical notes.”

It’s a fun way to understand just how the market has changed over the past ten years, and it’s a good way to see just how different the housing bust has been in different parts of America. In places like Miami, for example, the pop was severe — think Mariah Carey.

“I could see those towers, those cranes, building those condo buildings on Miami Beach,” says Karl Case (of Case-Shiller). “Some of those cranes are still there. They’re not building much now.”

But in Dallas, the past ten years have sounded more like a chanting Buddhist monk. This is thanks in part to the big boom and boost we experienced back in the 1980s. According to Robert Shiller (of the Case-Shiller):

They’ve been through that, they’ve seen it, and they’re not ready for another bubble, and they just didn’t participate in this one. It’s like opera: You only have one grand moment when the heroine and the hero die on stage. You can’t do that again right away.

Case Shiller Home Prices

Two lessons:

1. Compared to most places in the country, real estate in Dallas-Ft. Worth is relatively stable. We’ve got jobs. We’ve got land. We’ve got warm weather. It’s simply a great place to live.

2. If you take the long-view, even mired…. home prices are still higher than they were ten years ago. In other words, even in a decade marked by the worst recession since the Great Depression, housing still proved itself as a relatively stable investment.

Of course, this is a light-hearted take on a problem that’s caused a lot of homeowners a lot of pain. So here at Texas Lending, we’re eager to help you make a safe, shrewd home investment. Whether through a Texas home loan, a home refinance loan, or a home equity loan, we’ll help you make the most of any market—high or low.

Tags: , , , , , ,
Posted in Daily Rates, Mortgage News | No Comments »

« Older Entries
 
 

Texas Mortgage Banker  TexasLending.com is an Equal Housing Lender
4309 Alpha Road Dallas, TX 75244 - Phone: 972-387-4600
© Copyright 2009 TexasLending.com      Entries (RSS) and Comments (RSS).