Interest Rates Rise Slightly
Interest rates for home loans rose only slightly last month, according to two key followers of the mortgage market.
Good credit-quality applicants continue to enjoy low rates and plenty of access to financing, according to HSH Associates, a New Jersey firm which claims the country's largest database for mortgage loan pricing. HSH says the rate for 30-year fixed-rate loans averaged 6.27 percent for most of March.
Meanwhile, Freddie Mac, a major supplier for funds for home loans, had the 30-year fixed rate at 6.16 percent as March drew to a close. This time last year, the 30-year fixed mortgage cost 6.32 percent.
The 15-year fixed-rate mortgage ended the month at an average of 5.9 percent. A year ago, the 15-year FRM averaged 5.97 percent.
The one-year Treasury-indexed adjustable rate mortgage was 5.4 percent as March drew to a close. That's also down slightly, as was the five-year ARM, which finished the month at 5.91 percent.
Who Said the Web Was Easy?
Looking for real estate on the Internet? Have fun. According to Hitwise, an online measurement company, there is no easy way to find exactly what you are looking for.
Based on a recent sample of 10 million web users, Hitwise found that there is no single universal term that online house hunters can plug into their search engines to get them where they want to go. Indeed, the most popular search term represented less than 2 percent of all 64,500 search terms that delivered users to sites classified by Hitwise as within the "business and finance/real estate" sector. The 20th most popular term accounted for less than a quarter-percent of all the terms used.
Most experts suggest that you should try the words "real estate," "housing," "new homes," or "houses (or apartments) for rent" followed by the town, state, or neighborhood where you are looking. Another important database is your area's multiple-listing service, which lists practically every property that's for sale or rent in the location of your choosing. The only places that might not be in the MLS are those being sold or rented by their owners without the help of professional representation or properties in which agents have chosen not to list for one reason or another.
Check Those Batteries!
Add one more task to your list of things to check: The batteries in your smoke alarms.
"Thanks to the almost universal use of smoke alarm systems in today's homes, Americans are safer than they've ever been," says Southern California builder Brian Catalde, who is this year's president of the National Association of Home Builders. "But they can't keep us safe if they are disconnected or the batteries are dead."
New homes today have advanced heating and electrical systems, fire-resistant building materials and features like escape windows. But all owners, whether they occupy the latest models or older homes, need to remember to keep their smoke alarms in proper working condition. Otherwise, they don't do much good. So put changing the batteries on your list of things to do, not once but twice a year. And what better way to remember the chore than to do perform the task when you change your clocks.
Homeless: Could It Be You?
New government data shows that there are 754,000 homeless persons nation-wide on any given night. Here's how the group of disenfranchised breaks down:
- Nearly two-thirds are male.
- The largest segment - 41 percent - are 31-to-50 years old.
- One third are families with children in tow.
- Three out of five are minorities.
- One in four reside or, rather, don't reside, or at least have a place they can call home, in the suburbs or rural locations.
Consumer Action Handbook
Uncle Sam's Consumer Action Handbook, one of the federal government's most popular publications, is hot off the presses. Cover to cover, the free tome is jam-packed with valuable tips on how to get the most for your money and take care of consumer problems.
Whether it's your new TV that's not performing as promised or a recently repaired vehicle that won't start, the handbook can help you resolve the situation. Start by contacting the seller. If you're not satisfied with their response, contact the company's national headquarters. Follow the handbook's sample complaint letter to help you clearly explain the problem and how you'd like it fixed.
Find the names and addresses (mailing and web) for hundreds of companies in the book's "Consumer Assistance Directory." There's also contact information for trade associations, government agencies, local better business bureaus and consumer groups.
Produced in cooperation with 29 corporate and eight federal partners, the book helps consumers make better purchasing decisions, avoid problems in the marketplace and resolve difficulties that arise.
You'll find all kinds of consumer resources and helpful advice, including an updated list of "Quick Consumer Tips" in this 176-page guide.
You'll find the entire new edition online at ConsumerAction.gov . This easy-to-navigate site gives you searchable, interactive access to the handbook's great information along with the latest consumer news. You also can order a free hard-copy of the book by sending your name and address to Handbook, Pueblo CO 81009, or call toll free at 888-878-3256.
Mortgage Money Isn't All Green
Ever wonder where the money comes from to fund your mortgage? A wide variety of sources, to be sure. But the cash funneled to local lenders from Fannie Mae, the largest single source of funds for home loans, isn't all good old American greenbacks.
Fannie Mae purchases loans and pool of loans (otherwise known as mortgage-backed securities) from local lenders largely with money from it obtains from overseas. Only 26 cents of every dollar the government chartered corporation pumps into the housing market is minted in the United States. The rest -- 74 percent -- is printed elsewhere.
According to the company's latest figures, 49 cents of each buck comes from Europe and 23 cents comes from Asia. The other 2 cents comes from investors in "other" places.
The money doesn't come from individual investors, though; at least, not directly. For the most part, it comes from central banks, which are, in effect, foreign governments; private investment funds, and commercial banks.
