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Although fixed mortgage rates have moved higher from the sub-6
percent levels that were so prevalent from 2003 to 2005, rates are
still low and conducive to home buying. The average 30-year fixed
rate mortgage that is currently at 6.28 percent is likely to rise to
over 6.5 percent in the second half of 2006. This is well below the
average over the past 20 years of 8 percent. But rates will be very
close to the average of the past 10 years of 6.9 percent and will be
higher than anything seen in the past four years.
The average 30-year fixed-rate mortgage has been below 6.5 percent
every week since July 2002. Although rates are still low for home
buyers, the majority of refinance activity will involve borrowers
moving out of adjustable-rate mortgages, referred to as "dis-ARMing."
Homebuyers are currently favoring fixed-rate mortgages over
adjustable-rate mortgages because the difference in initial rates is
so slim. The current 30-year fixed rate averages 6.28 percent, while
a 5/1 ARM is 5.89 percent and a 1-year ARM is 5.56 percent. As a
borrower, why bear the risk of higher rates in the future without a
substantive reward in the form of a lower rate
Source: Bankrate.com
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Florida existing home sales: 12,815
(- 19%yr)
Florida existing home median price:
$248,600 (+21% yr)
Florida consumer confidence: 87
(-7)
30-year fixed rate mortgage: 6.37%
National existing home sales: -2.8
%
Median price of an existing home
(U.S.)
$211,000
(no change)
Pending home sales index:
116.3 (-3%)
National consumer confidence:
101.7 (-4.6)
U.S. new home sales:
-5.0 %
Median price of a new-home (U.S.):
$238,100
Source: Florida
Association of Realtors (FAR) January 2006
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HOT REAL
ESTATE PRICES EXTEND TO RURAL LAND
(March 9, 2006) The
fastest-growing commodity in Florida farm country last year?
Land values, which jumped 50 percent to 88 percent,
depending on the area.
While not quite as dramatic, a similar story
has been playing out across the country. Rural real estate
prices soared 11 percent to an average of $1,510 per acre
from Jan. 1, 2004, to Jan. 1, 2005. That's the fastest
annual increase since 1981 and the biggest on record in
dollar terms, according to the U.S. Department of
Agriculture (USDA).
More recent data from Iowa State University show prices in
Iowa rose nearly 11 percent in 2005. In Texas, the median
rural land price rose 15 percent in 2005. State and USDA
estimates differ because of sampling times and techniques
but show similar trends.
Source:
USA TODAY Sue Kirchhoff
(03/09/06)
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The top 10 bangs for
the buck when you remodel
|
RANK |
RENOVATION |
RESALE RECOVERY |
|
1 |
Paint |
200% |
|
2 |
Add a Bathroom |
96% |
|
3 |
Kitchen Renovation (minor) |
79% |
|
4 |
Kitchen Renovation (major) |
70% |
|
5 |
Bathroom Renovation |
69% |
|
6 |
Add a Skylight |
68% |
|
7 |
New Siding |
67% |
|
8 |
Add Insulation |
65% |
|
9 |
Addition |
62% |
|
10 |
New Roof |
61% |
Source:
National Ass. of
the Remodeling Industry
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