Low Interest Rates Continue to Fuel Housing

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

Remember earlier this year when interest rates started to rise and everyone worried that it spelled the end of the housing recovery? As interest rates have crept up for long-term mortgages throughout much of the summer, many have speculated the impact on home buying as inevitably negative.

 However, we're not seeing much evidence to support that.

Mortgage rates have continued to be really attractive throughout the year, with rates on the 30-year fixed-rate mortgage averaging 4.32% in Freddie Mac's survey last week, down from 4.5% the previous week. It marked the lowest level for rates since the week ending July 25.

Although rates on long-term mortgages are still higher than they stood a year ago, it's amazing how low they've remained and how it has yet to completely derail buying activity, as some expected.

FHA to Continue Lending During Shutdown

Applications for all government-backed mortgages will continue to be processed during a government shutdown, according to the U.S. Dept. of Housing and Urban Development (HUD).

HUD originally said on Friday that it would stop working on applications for loans guaranteed by the FHA if the government shutdown. However, it reversed that position over the weekend.

HUD said it will continue processing loans "in order to support the health and stability of the U.S. mortgage market."

Fannie Mae and Freddie Mac also said their operations will be unaffected by the shutdown. The GSEs pay for their operations out of the fees collected from lenders.

6 Ways to be a Good Neighbor

Developing relationships with your neighbors can make your life easier and your community safer—and may result in lasting friendships. The good news is that it’s easy to extend acts of courtesy to those who live close by.

Welcome new people to the neighborhood. Stop by and introduce yourself. Baking cookies is a traditional way to extend a warm welcome, but you can also bring them recommendations for local services, such as babysitters or landscapers; a children’s activity kit filled with coloring books, crayons, and games; or a list of local phone numbers.

Little gestures can go a long way. Offer to collect your neighbor’s mail, water their plants or feed their pet while they’re on vacation. If that’s too much of a commitment, you might offer to keep an eye out on their house while they’re away.

Keep up your house and yard. This will help maintain property values while keeping the neighborhood as a whole looking its best. Mow your grass regularly, trim your shrubs as needed, and make façade repairs in a timely manner.

Walls have ears. If you live in a condo or townhouse, think twice before plugging in noisy appliances near your neighbor’s walls. A television, a hair dryer or even the beep of a microwave may be a little white noise for you but an annoyance for your neighbors.

Know the news. Whether or not you’re head of your community watch program, there are always chances to help out. Keep your neighbors informed of relevant news, such as upcoming construction or recent crime. Extra eyes and ears are always welcomed.

Return kind gestures. If a neighbor lends you something, whether it’s their tools or their time, return the gesture quickly. It’s easy to move along with your project and forget they’ve done you a favor, so be sure to show your appreciation in a timely manner—your gratitude won’t be overlooked.

American Home Shield is providing the information for general guidance only. Due to the general nature of the property maintenance and improvement advice in this material, neither American Home Shield Corporation, nor its licensed subsidiaries assumes any responsibility for any loss or damage which may be suffered by the use of this information.

Home Sales Hit Highest Level in Six Years

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

Home sales ended the summer on a high note, reaching their highest level in over six years in August. Prices went along for the ride, with the median price trending nine consecutive months of double-digit year-over-year increases.

Recovery meets growth. Now we're making serious progress.

According to the most recent data from the National Association of Realtors, total existing-home sales – including single-family, condos, townhomes and co-ops – increase 1.7% to an annual rate of 5.48 million in August. The pace was up from 5.39 million in July and 4.84 million in August 2012.

How is Real Estate Benefiting From IPOs These Days?

Alain Pinel, General Manager of Intero Prestigio international, Intero Real Estate Services, Inc.

You know you’ve been in the real estate business for a while when, not only can you talk about the various market cycles of the past, but you actually experienced them first hand….You had a blast riding the good ones, and you somehow survived the bad ones. It makes for a great conversation piece at cocktail parties. You can offer your best take on why the up cycles usually last longer than the down slides and try to rationalize why it did not work that way during the last recession…

All Realtors have the nostalgia of good times, when sellers are getting a hefty price for their home in no time and most buyers are feeling no pain buying their dream home when they want and where they want. For me, the time my memory takes me to when thinking about good times is the late 90’s in Northern California. The market was hot. Crazy might be a better adjective in fact. Properties were moving as quickly as warm baguettes in a Parisian boulangerie in the early morning. Prices were being re-evaluated upwards every month, which did not slow the buying pace any as plenty of new money was available and anxious to be spent.