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Plymouth, MN Real Estate News

By David Kosmecki
(American Pacific Mortgage)
Mortgage markets improved last week in a week of few economic releases. The one major data point - Retail Sales - showed stronger-than-expected, but markets reacted mildly. The report's strength was whispered in advance of the actual release; its reading validated Wall Street's growing faith in the U.S. economy. Most action last week revolved around the Middle East: Libya's internal turmoil continued Bahrain clashes intensified Saudi Arabia's citizens planned a Day of Rage In response to these events, Wall Street continued its flight-to-quality. Mortgage-backed bonds are now at their best levels since early-February. Mortgage rates have improved 4 straight weeks. Unfortunately for rate shoppers in Minnesota , the gains have been meager. Conforming mortgage rates have only dropped slight...
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By David Kosmecki
(American Pacific Mortgage)
FHA Streamline Refinance guidelines are changing. For the better. In an effort to improve its loan portfolio, the FHA is loosening approval standards on its popular refinance program, rendering large groups of homeowners suddenly FHA Streamline-eligible. Now, that may seem counter-intuitive - lowering qualification standards in order to reduce loan defaults - but in the FHA's case, it makes complete sense. It's because the FHA doesn't make loans. It insures them. What's good for FHA-insured homeowners is good for the FHA, therefore. All things equal, lower housing payments for its insured homeowners should correlate to fewer FHA loan defaults in Minnesota and   nationwide. One interesting facet of the FHA's new rulebook is the manner in which the government group is applying common sens...
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By David Kosmecki
(American Pacific Mortgage)
Beginning April 1, 2011, Fannie Mae is increasing its loan-level pricing adjustments. Conforming mortgage applicants in Wisconsin should plan for higher loan costs in the months ahead. If you've never heard of loan-level pricing adjustments, you're not alone; they're an obscure mortgage pricing metric and, thus, are rarely covered by the media. That doesn't make them any less relevant, however. LLPAs are mandatory closing costs assessed by Fannie Mae and Freddie Mac, designed to offset a given loan's risk of default. LLPAs were first introduced in April 2009. This April's amendment is the 6th increase in 2 years. LLPAs can be costly. In addition to an up-front, quarter-percent fee applied to all loans, there are 5 additional "risk categories" in the LLPA equation: Credit Score : Lower F...
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By David Kosmecki
(American Pacific Mortgage)
April 15 is the traditional due date for federal income taxes. It's a deadline so ingrained in the American psyche that the April 15 calendar date is often called, simply, "Tax Day". In 2011, however, federal taxes aren't due April 15. They're due April 18. It's because of a combination of holiday, calendars, and tax law. The change centers on Emancipation Day. Emancipation Day is a public celebration in the District of Columbia. Named a holiday in 2005, Emancipation Day honors President Abraham Lincoln's April 16, 1862 signing of the Compensation Emancipation Act.   Emancipation Day is a non-working day in the nation's capitol but, this year, Emancipation Day falls on a Saturday. The municipality will observe the holiday Friday instead. This means that all of Washington, D.C. will be ...
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By David Kosmecki
(American Pacific Mortgage)
Home affordability reached an all-time high in 2010′s last quarter. Unfortunately for home buyers in Minnesota , it's been a different story since, however. As mortgage rates cratered, and with home values soft, the Home Opportunity Index reached its highest level in 20 years. The index is published by the National Association of Home Builders.  Close to 74 percent of the new and existing homes sold between October-December 2010 were affordable to families earning the national median income of $64,400. It's the 8th straight quarter in which the Home Affordability Index surpassed 70 percent. Prior to 2009, the HOI rarely topped 65 percent. That said, though, as with everything in real estate, home affordability is a local event. For example, take the Elkhart/Goshen area of northern Indi...
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By David Kosmecki
(American Pacific Mortgage)
For certain members of the military, and for certain federal employees, there's just 2 months remaining to get use the federal home buyer tax credit. Eligible persons include members of the uniformed services, members of the Foreign Service, and intelligence community employees who served at least 90 days of qualified, extended duty service outside of the United States between January 1, 2009 and April 30, 2010. Spouses of persons meeting the above criteria are eligible as well. The federal home buyer tax credit ranges up to $8,000 for first-time home buyers, and up to $6,500 for existing homeowners. Existing homeowners must have lived in their "main home" through 5 of the last 8 years to be eligible. Claiming the federal tax credit is a two-step process. First, eligible persons must be...
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By David Kosmecki
(American Pacific Mortgage)
For the third time in 12 months, the FHA is changing its mortgage insurance costs.  Effective for all FHA case numbers assigned on, or after, April 18, 2011, annual mortgage insurance premiums (MIP) will increase 25 basis points. The change will add $250 to an FHA-insured homeowner's annual loan costs per $100,000 borrowed, and applies to all borrower's equally. Current FHA borrowers are unaffected. To understand the FHA is to understand why premiums are rising. As an institution, the Federal Housing Administration plays a much larger role in the U.S. housing market today than it did just 5 years ago. According to its own records, the FHA's percentage of purchase money business in Minnesota and nationwide expanded from 4 percent in FY 2006 to 19 percent in FY 2010. Rapid growth like thi...
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By David Kosmecki
(American Pacific Mortgage)
Mortgage rates could move higher beginning tomorrow morning. The Bureau of Labor Statistics releases its February jobs report at 8:30 AM ET. Home buyers and rate shoppers in Minneapolis would be wise to take note. The jobs report is almost always a market-mover. Consider last month. Although net job creation fell well-short of expectations in January - just 36,000 jobs were added - the national Unemployment Rate dropped to 9.0%, its lowest level in 2 years. The marked improvement surprised economists and sparked inflationary concerns within the investor community. This, in turn, caused mortgage rates to rise. In the days immediately following the jobs report's release, conforming rates across Wisconsin jumped 0.375 percent. That's equivalent to a mortgage payment increase of $22 per mon...
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By David Kosmecki
(American Pacific Mortgage)
  Last week, Standard & Poor's released its Case-Shiller Index for December 2010. The index is a home valuation tracker, meant to meausure the change in home prices from one period to the next. December's Case-Shiller Index showed major devaluations nationwide. As compared to December 2009, on a year-over-year basis, home values fell in 18 of the Case Shiller Index's 20 tracked markets, and the U.S. National Index dropped 4 percent overall.  The retreat puts December's home values at similar levels as compared to early-2003. That said, buyers and sellers would be wise to take the findings lightly. The Case-Shiller Index is inherently flawed. As such, its results are neither practical - nor relevant - to everyday Americans. There are 3 Case-Shiller flaws, in fact. The first flaw is the i...
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By David Kosmecki
(American Pacific Mortgage)
After a strong run to close out 2010, the market for home resales softened a bit in January. On a seasonally-adjusted basis, the Pending Home Sales Index dropped 3 percent last month, and December's figures were revised downward for a loss, too, according to the National Association of REALTORS®. A "pending home sale" is defined as a home under contract to sell, but not yet closed.  The forward-looking index is now at a 3-month low on a national level, but still well ahead of its rolling 6-month average. Unfortunately, national data isn't overly helpful for buyers and sellers of real estate. The National Association of REALTORS® knows this, of course, and makes an effort to get more granular, supplementing the Pending Home Sales Index report with a region-by-region breakdown.  Between D...
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By David Kosmecki
(American Pacific Mortgage)
Mortgage markets improved last week as Wall Street's concerns about the Middle East trumped its fears of inflation. Conforming and FHA mortgage rates in Wisconsin fell to a 3-week low. Last week marked the second straight week in which mortgage rates fell, a streak that follows four straight weeks of climbing mortgage rates. It's been a bout of good fortune for rate shoppers and home buyers. In addition, according to Freddie Mac's weekly mortgage rate survey, the average spread between conforming 30-year fixed rate mortgages and 5-year ARMs has widened further. The two benchmark products are now separated by 1.15%. It's the largest interest rate gap in recent history; one that yields a monthly payment difference of $68 per $100,000 borrowed. This week, it's unclear in what direction mor...
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By Jennifer Tyre, luxury home specialist, short sale, bank owned, buyers agent
(Re/Max Results, house for sale in mn)
City of Plymouth, MN City of Plymouth, MN is conveniently located twelve miles outside of the Minneapolis-Saint Paul metropolitan area. The city of Plymouth, MN is considered the sixth largest city in the state of Minnesota. The city of Plymouth, MN is also considered the second largest suburb in the Minneapolis-Saint Paul metropolitan area. The city of Plymouth, MN was ranked at the top of Money Magazine’s “America’s Best Places to Live 2008” and was in the top twelve in the year of 2010. With its booming population, the city of Plymouth, MN is continually to grow with new construction of homes and neighborhoods. The city of Plymouth, MN offers its residents beautiful parks and trails for public use and recreation. The trails include over 120 miles of beautiful scenery that residents ...
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By Eric Helmers, Your Trusted Real Estate Source
(Realty Group, Inc.)
  As a Relocation Specialist and former Foreclosure Specialist for most of the National Banks I became tired of the turmoil and complications these large companies were creating in the housing market.  The focus of everyday agents ran to the quick money.  List the banks, meet the banks, getthe foreclosure and short sale listings! After years of begin ahead of the game, I have had enough of seeing the everyday seller and buyers basically ignored and receiving little or no advice and support in selling their home.  I started in Real Estate 9 years ago to help people.  That's why I'm excited to inform you today..I HAVE SWAPPED SIDES!  I NOW REPRESENT YOU AND I WILL SHOW YOU HOW TO WIN.  WELL, I'VE ALWAYS REPRESENTED YOU, BUT I'M MAKING A CONCERTED EFFORT TO GET THE WORD OUT! i WILL SHOW Y...
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By Eric Helmers, Your Trusted Real Estate Source
(Realty Group, Inc.)
As a Relocation Specialist and former Foreclosure Specialist for most of the National Banks and large corporations, I got tired o families in turmoil, companies "Selected Relo agents leaving a negative feeling with sellers and the negative aspects of representing the banks.  I started in Real Estate 9 years ago to help people.  That's why I'm excited to inform you today..I HAVE SWAPPED SIDES!  I NOW REPRESENT YOU AND I WILL SHOW YOU HOW TO WIN. IT TAKES A TEAM AND JUST LIKE TODAY'S SUPERBOWL, THERE WILL ONLY BE ONE WINNER! MAKE IT OUR TEAM!   i WILL SHOW YOU- * HOW TO BEAT THE BANKS WHEN COMPETING AGAINS FORECLOSURE SALES! * HOW TO SELL IN ANY MARKET! * HOW TO GET YOUR HOME ON HUNDREDS OF WEBSITES! * AN INSIDERS GUIDE TO GET THE MOST MONEY FOR YOUR HOME! CALL OR E-MAIL ME NOW AND LET'S...
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By David Kosmecki
(American Pacific Mortgage)
Mortgage markets improved this week as positive economic data was overshadowed by geopolitical strife. A flight-to-quality drove buy-side activity in mortgage bond markets, which, in turn, helped conforming rates fall across the state of Wisconsin. Last week marks the first time this year that mortgage rates fell on a week-over-week basis, and considering why rates fell, it points to the fragile nature of the global economy. By all accounts, last week showed that the U.S. economy is in recovery. Housing data rises to its best levels in 8 months (LA Times) Consumer sentiment hit a 7-month high (NPR) Business investment increased 1.4% in December Furthermore, the Federal Open Market Committee met last week and said that the economy continues to expand (although the pace is slower-than-opt...
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Today, the Federal Open Market Committee voted 10-to-0 to leave the Fed Funds Rate unchanged within its target range of 0.000-0.250 percent. In its press release, the FOMC noted that since December's meeting, economic growth is ongoing, but at a pace deemed "insufficient" to make a material impact on the jobs market. In addition, the Fed said household spending "picked up" late last year, although it continues to be held back by joblessness, tight credit and lower housing wealth. This is similar to the language used in the FOMC's November and December 2010 statements. Also like its last two statements, the Fed used this month's press release to re-affirm its plan to keep the Fed Funds Rate near zero percent "for an extended period", and to keep its $600 billion bond market support packa...
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By David Kosmecki
(American Pacific Mortgage)
Home values were reported unchanged in November 2010, on average, according to the Federal Home Finance Agency's Home Price Index.  We say "on average" because the government's Home Price Index is a data composite for the country. The index doesn't measure citywide changes in places like Maple Grove , nor does it get granular down to the neighborhood level. Instead, the Home Price Index groups state data in 9 regions with each regions having as few as 4 states in it, and as many as 8. Not surprisingly, each of the regions posted different price change figures for the period of October-to-November 2010. A sampling includes: Values in the Pacific region rose +1.2% Values in the New England region rose +0.3% Values in the Mountain region fell -1.9% The complete regional list is available a...
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By David Kosmecki
(American Pacific Mortgage)
The Federal Open Market Committee begins a 2-day meeting today in Washington D.C. It's the group's first meeting of 2011 - one of 8 scheduled for the year. The Fed meets every 45 days, on average. Its last meeting was December 14, 2010. Rate shoppers and home buyers should make a note. Mortgage rates and home affordability could change dramatically beginning tomorrow afternoon. Because Wall Street watches FOMC meetings closely, so should you. The meetings provide insight on the future of U.S. monetary policy, as told by the nation's central banker. Investors make trades based on the FOMC's commentary which is one reason why mortgage rates tend to undulate through the hours leading up to the FOMC's adjournment, and the days immediately after. Wall Street is shifting old bets, and placing...
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By David Kosmecki
(American Pacific Mortgage)
Mortgage markets worsened last week in a holiday-shortened trading week. As the body of U.S. economic data continues to show slow, steady improvement, Wall Street is becoming a net-seller of mortgage-backed bonds. As a result, conforming mortgages rates in Minnesota are rising. This is why conforming and FHA mortgage rates rose last week in Minnesota. Existing home supplies plunged to a 2-year low in December, and unemployment claims dropped more than expected, giving hope for the U.S. economy in 2011. This week, that trend may continue. There's a lot of news set for release. The biggest story of the week is Federal Open Market Committee's 2-day meeting. Scheduled for Tuesday and Wednesday, the FOMC's meeting is the first of its 8 scheduled meetings this year. In it, the FOMC is expecte...
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By David Kosmecki
(American Pacific Mortgage)
Existing Home Sales surged 12 percent last month, closing 2010′s housing market with strength. An "existing home" is a home that cannot be categorized as new construction; a resale. According to the National Association of REALTORS®, seasonally-adjusted, annualized Existing Home Sales figures climbed by more than a half-million units in December as compared to November. It's the 3rd straight month of home resale improvement nationwide. Sales volume is now as high as it's been since May 2010 - just after the federal home buyer tax credit's expiration. In addition, the number of months needed to sell the complete, current home inventory at the current pace of sales fell by 1.4 months, tying December for the biggest one-month home supply improvement in 2 years. It's yet another signal that...
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