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Record-low mortgage rates sparked a wave in mortgage applications for home purchase and refinancings last week, increasing more than 20 percent in a week, the Mortgage Bankers Association reports. 

for the week ending Jan. 13, mortgage applications for refinancing applications jumped 26.4 percent while home purchase applications, a future gauge for home buying, increased 10.3 percent.  

“With mortgage rates reaching new lows, refinance volume jumped,” Michael Fratantoni, MBA’s vice president of research and economics, said in a statement. “Purchase activity also increased as buyers returned to the market after the holiday season.”

Freddie Mac reported that 30-year fixed-rate mortgage averaged a record low of 3.89 percent for the week ending Jan. 12. For six consecutive weeks, 30-year fixed-rate mortgages — the most popular choice among home buyers — has averaged below 4 percent. 

Source: “Mortgage Applications Surge on Refinancing Demand,” Reuters (Jan. 18, 2012)

More news from the “Sierra Foothills” of El Dorado, Placer, Amador and Sacramento Counties of California at: www.sierraproperties.com or www.dougandbudzeller.com

Borrowers who have a history of paying rent on time may see a boost to their credit score.

Experian, a leading credit report company, added a section to its credit reports last year that reflected on-time rent payments, which helped give a boost in the credit scores to some on-time rent payers. Now the two other major credit reporting companies are following suit. 

recently announced they are also adding a score that reflects payment histories from landlords, The New York Times reports.

“Evidence of positive rental payments could be a plus for consumers,”  Joanne Gaskin, FICO’s director of product management global scoring, told The New York Times. 

Nearly half of high-risk consumers saw an increase of 100 points or more after their rental history was added to their credit report, says Brannan Johnston, the managing director of Experian’s rent bureau. Consumers with average or higher credit scores, on the other hand, did not see any major difference to their scores. 

For former home owners who lost their homes to foreclosure, they may be able to rebuild their credit histories more quickly now by showing they are “very responsible renters,” Tim Grace, senior vice president of CoreLogic, told The New York Times. 

Full article at source: “A Good Rental History Can Help Borrowers,” The New York Times (1/ 5/12), other news from Placerville, El Dorado County, CA. at: www.sierraproperties.com

New programs and “housing policy interventions” are needed to help the real estate market rebound and boost growth in the overall economy, three Federal Reserve policymakers said Friday. 

The latest statements join a range of calls by the Federal Reserve in the last week urging for more government intervention to help the housing market. Last week, the Fed released a 26-page white paper  providing an outline on how the government needs to take more aggressive action to prevent home values from falling further, seek solutions to the foreclosure crisis, and loosen stringent underwriting standards that are keeping borrowers from securing mortgages or refinancing. 

New York Fed President William Dudley said on Friday that the housing market is “only one factor behind the frustratingly slow” economic recovery, but it’s an “important one that deserves our attention.”

“Forceful and effective housing policies have the potential to significantly influence the speed and strength of our recovery,” Fed Governor Elizabeth Duke said in separate comments made last week at an event in Virginia. 

Source: “Fed Officials Focus on Housing ; Emphasis put on Importance of Sector to Overall Economy,” Bloomberg News (Jan. 9, 2012) and “Fed Officials Push More Stimulus for Housing,” Reuters News (Jan. 9. 2012)

For nine consecutive weeks, the 30-year fixed-rate mortgage has been hovering at or below record lows of 4 percent, pushing housing affordability for home buyers even higher. 

But will these low rates stick around much longer? 

The Federal Reserve has vowed to keep rates low through 2013 so rates likely will hang around for a few more months, at least, but whether mortgage rates will stay at the current record-lows, many experts say it’s unlikely. 

The 30-year fixed-rate mortgage is expected to inch up to an average 4.5 percent for 2012 and increase to 5.4 percent in 2013, according to Freddie Mac economists’ forecasts. 

While that forecast means rates are expected to move higher in the coming months, the rates will still be low by historical standards, economists told the Los Angeles Times. For comparison, 30-year rates averaged more than 16 percent in 1981 and 1982. What’s more, until 2000, rates typically were above 8 percent, Freddie Mac notes. 

Despite the drop in rates, however, many home buyers have been unable to take advantage of the low rates. Lenders’ tightening of their underwriting standards for loans in the recent years following the housing crisis has shut some buyers who have poor credit, low down payments, or unsteady employment from securing a loan at today’s low rates. Freddie Mac had predicted home-purchase applications to comprise two-thirds of all mortgage applications by the end of 2011. But the Mortgage Bankers Associations says that instead about 80 percent of the mortgage applications came from home owners who wanted to refinance.  

Source: “Low Mortgage Rates Likely to Continue Through 2012, Experts Say,” Los Angeles Times (Jan. 3, 2012)

The multifamily market continues to post gains. 

“Rents are rising, vacancies are falling, household formations are growing and rental supply is limited,” according to a recent report, “2012: The Year of the Landlord,” issued by Morgan Stanley. “We believe the demand for rental properties will continue to grow.”

Vacancies of rental properties dropped to 9.8 percent in the third quarter of this year compared to 10.3 percent earlier this year. 

Led by strong gains in multifamily housing, groundbreaking for new-housing market soared 9.3 percent in November. Construction of multifamily homes of at least two units increased 25.3 percent in November, the Commerce Department reported last week. Starts for structures with five or more units has increased more than 30 percent from October and is nearly double year-over-year levels, Reuters reports.

Rental costs are also on their way up, increasing 2.4 percent over last year compared with an increase of 0.6 percent in 2010, Reuters reports.

Source: “America Becoming a Nation of Renters,” Reuters (Dec. 27, 2011)

More news from the “Sierra Foothills” of El Dorado, Placer, Amador,  Sacramento Counties  of  California  at: www.sierraproperties.com or www.dougandbudzeller.com

The Internet giant is increasing its stake in the solar home power business with a $75 million “initial investment” to buy and own solar-panel generators on roofs of thousands of homes, The Wall Street Journal reports. 

Google is investing in Clean Power Finance, a start-up company that matches solar-panel installers with investors willing to buy rooftop solar-panel systems. “With Google’s investment, solar-panel installers can find home owners who want solar panels on their roofs but don’t want to have to pay several thousand dollars to own the system,” The Wall Street Journal article notes. 

“We’re excited about the opportunity to really help accelerate residential solar,” says Rick Needham, Google’s director of green business operations. 

The latest investment will likely help fund up to 3,000 home rooftop solar systems. In June, Google made a $280 million investment in residential rooftop solar-panel installations with SolarCity Corp. Google’s total investment in renewable energy has been more than $850 million.

Rooftop solar demand is growing, and home owners are finding paybacks too. Earlier this year, a study by Lawrence Berkeley National Laboratory found that solar panels not only saved home owners money on electricity bills but also helped boost a home’s resale value, particularly for existing homes. Good news for the Placerville, El Dorado County, regions of Northern California!

Source: “Google Invests $75 Million in Home Solar Venture,” The Wall Street Journal (9/27/11)

Taking a bite out of the big apple may be associated with New York on the east coast, but here in El Dorado County, taking a bite out of the big apple, means Apple Hill time!

Apple Hill is located in the western Sierra Foothills. Just an hour’s drive from downtown Sacramento, this locale is filled with fruit orchards, breweries, tree farms, and wineries. It’s a perfect out-of-town spot for a quick getaway.

If you tend to shy away from crowds, you may want to visit Apple Hill during the week as weekends are busy, but barrels of fun for the whole family! Most ranches have a produce stand or small shop packed with delicacies and delights from the region. This is a great time to pack a picnic or grab a bite to eat at one of the many stops that offer BBQ, fresh fruits and local produce.

There are many events scheduled throughout the season geared towards family fun, such as Johnny Appleseed Day, Trick or Treat Days and Teddy Bear’s Picnic. Check out the EDG Calendar of Events to help you plan accordingly.

Just remember…pace yourself, there is food and drink around every corner! Enjoy!

By Lisa Schmid, El Dorado Guide info@eldoradoguide.com

“Video Tour” of this Placerville, California region at: www.sierraproperties.com

Improving access to affordable mortgage financing for qualified home buyers and investors and committing additional resources to loan modifications and short sales will help reduce current and future inventories of real estate owned (REO) properties held by government agencies, according to the National Association of REALTORS®.

In a letter sent today to the U.S. Department of Housing and Urban Development, the Federal Housing Finance Agency, and the U.S. Department of the Treasury, NAR responded to the agencies’ recent request for input and offered its recommendations for selling REO properties held by Fannie Mae, Freddie Mac and the Federal Housing Administration.

In its letter, NAR urged the agencies to create an advisory board as they explore new options for selling foreclosed properties to ensure that efficiently disposing of agency REO properties will minimize taxpayer losses and reduce the negative effects that distressed properties have on local real estate markets.

“As the leading advocate for housing issues, REALTORS®know that foreclosures affect families, communities, the housing market and our nation’s economy,” said NAR President Ron Phipps. “We believe the government has an opportunity to minimize the impact of distressed properties on local markets by expanding financing opportunities, bolstering loan modifications and short sales efforts, and enhancing the efficient disposition of REO properties. This will help stabilize home prices and neighborhoods and help support the broader economic recovery.”

Freddie Mac borrowers ineligible for participation in the Home Affordable Modification Program or previously in default on a HAMP or other loan workout will be able to take advantage of a new option that reduces mortgage principle and monthly payments by at least 10 percent each. Lenders in our Placerville, California region recommend anyone interested should contact their local professional experienced with loan modifications.   

Under a Standard Modification, loans will have the interest rate set at 5 percent and the amortization period extended to 40 years from the time of the workout; lenders will receive cash incentives of up to $1,600 per home owner approved.

The Standard Modification replaces Freddie Mac’s Debt Coverage Ratio loan modification, which is now being referred to as a Classic Modification.

Source: “Freddie Offers New Loan Mod Option,” NASDAQ (09/13/11)

The California Energy Commission (CEC) recently developed and released to evaluate existing solar systems placed on real property. 

SAVE has been designed to be used by appraisers, REALTORS®, and others in order to provide a means for evaluating existing solar systems and to determine their expected capacity (i.e. this system, can, on average, generate this much electricity). 

SAVE will provide appraisers with a tool that can place an actual dollar value on solar systems, and will help to provide prospective purchasers with information on the average energy savings that can be achieved by the system. The information contained in the tool is derived from information obtained by the CEC through coordinated efforts with utilities, installers of solar systems, property owners, and their respective agents.

 Properties not included within SAVE can manually input property information and solar system specifications in order to obtain an estimated capacity valuation.

 To learn more about SAVE, benefits for the Placerville, California regions including upcoming training webinars, please visit http://www.gosolarcalifornia.org/tools/save.php.