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This week's Real Estate stories
By MarketWatch
Last Update: 1:01 PM ET Nov 27, 2009
Don't miss these top stories:
Mortgage rates hit record lows
A good time to buy a home
Money launderers want your house
Mortgage rates dropped again this week, with the 30-year fixed-rate mortgage matching its all-time low, according to Freddie Mac's weekly survey.
The 30-year fixed-rate mortgage averaged 4.78% for the week ending Nov. 25, "0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage," said Frank Nothaft, Freddie Mac chief economist. And even in June, mortgage rates were relatively low by historical standards in the mid-5% range.
Rates on the 15-year fixed-rate mortgage and 5-year ARM broke record lows this week, according to Freddie Mac's survey.
The very low interest-rate environment, along with a federal home-buyer tax credit, make a compelling case for many buyers to make a home purchase now and in the next several months, according to real-estate economist Ken Rosen.
Home prices are basically at their bottom, although they could go a little higher or a little lower, he said. But "the real reason to buy a house now is the interest rates are low," he said.
View the whole interview with Rosen, and check out the rest of this week's real-estate coverage, including the latest on mortgage rates and housing prices.
Of course, predictions about the housing market don't come without caveats: Rosen also said that while prices may be at or near the bottom, headwinds remain, including rising unemployment and foreclosures.
But if you are in the market for a home to live in, there are probably enough incentives that make it a good time to take the leap.
-- Amy Hoak, Real Estate writer
A good time to buy a home
The federal homebuyers tax credit, set to expire in July, and low mortgage rates make the next six to nine months a good time to buy a house, if you plan to live in it, real estate economist Ken Rosen tells Stacey Delo. Watch Video Report.
Why a money launderer might want to buy your home
I am a broker in Irvine, Calif., I recently sold a home which drew five offers in five days. In reviewing the buyers' financials for all five offers, I noticed that most of their accounts showed a number of large deposits over the previous 30 days from overseas -- Taiwan, Hong Kong and China. Evidently, however, the buyers didn't have to show their mortgage lenders any additional documentation as to whether these deposits were family gifts, loans or what. See Realty Q&A.
U.S. home prices rise for second straight quarter
U.S. home prices rose for the second straight quarter, according to S&P/Case-Shiller data released Tuesday. Compared to the third quarter of 2008, however, house prices are still down, with the national home price index falling 8.9%. Read more on home prices rising.
Still battling foreclosure hot spots: CitiMortgage CEO
Sanjiv Das, the chief executive officer at CitiMortgage, says his company is getting better at keeping homeowners in their homes. But Arizona, California, Nevada and Florida continue to be the "prime hot spots" for foreclosure activity. Das offers advice for those on the verge of losing their homes. He talks with Larry Kofsky in Recession and Recovery. Listen to Radio Report.
Distressed homeowners ponder whether to stay or go
Brian Gindlesperger says he has never been late on a mortgage payment and considers paying off his loan "the right thing to do." But as the value of his home continues to fall, he is starting to wonder whether paying his debt is the smartest thing to do. Read more on homeowners walking away from mortgages.
Three mortgages hit record lows
Rates on 30-year fixed-rate mortgages averaged 4.78% this week, matching an all-time low in Freddie Mac's weekly survey of conforming mortgage rates, released Wednesday. Two other loan types also fell to record lows.See Mortgages.
Week-to-week mortgage filings down on lower refi's: MBA
Applications for mortgages to buy homes rose last week, but the volume of filings to refinance existing loans dropped, according to the Mortgage Bankers Association's weekly survey. Read more on mortgage applications.
October new-home sales rise 6.2% on strength in South
Sales of new homes rose 6.2% in October on strong results in the South, the Commerce Department estimated Wednesday. See Economic Report.
Millions underwater in mortgage crisis
Even home buyers who thought they were getting a bargain are now finding themselves underwater. The News Hub panel discusses a mortgage crisis that has left millions owing more than their homes are worth. Watch Video Report.
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