Mortgage Closing Costs Rising

posted on August 26th, 2013 | filed under: Uncategorized

Mortgage closing costs have increased by 6% over the past year, according to Bankrate’s annual closing cost survey. So why are fees rising? You can blame two things:

1.    Low and rising mortgage rates, and

2.    New regulations.

Low mortgage rates over the last year have brought in a wave of refinancing. Loan originators have plenty of business so they don’t have to compete. Plus, they realize rates are going to rise which will decrease the number of loans made. At that point, they will have to decrease fees to be more competitive.

The second component of rising costs is the Consumer Financial Protection Bureau and its new mortgage regulations. At any rate, all puns intended, if you haven’t re-financed yet, it’s time to do so.

July Market Statistics

The median price for single-family, re-sale homes jumped 24.6% year-over-year. Sales were up 5.2% year-over-year. Year-to-date, home sales are up 3.2%. Inventory remains problematic. There is only a ten week supply. Pending sales were up 2.8% compared to last July.

SALES MOMENTUM…for homes fell 1.7 points to +9.4. Condo sales momentum dipped 0.1 of a point to +4.1.

PRICING MOMENTUM…made another solid gain last month, rising 1.5 points to +13.1. Condo pricing momentum gained 1.5 points to +20.1.

MOMENTUN…is calculated by using a 12-month moving average to eliminate seasonality. By comparing this year’s 12-month moving average to last year’s, we get a  percentage showing market momentum.

CONDO STATISTICS… The median price for condos was up 34.6% yearover-year. That’s twelve months in a row the median price has risen by double-digits. Sales were off 1.9% from last June. The sales price to list price ratio for condos stayed over 100% for the fifth month in a row: 100.6%.

Click the report below to read the full report online:

Market Report Web

 

 

posted by Jeff DeChamplain

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Jeff DeChamplain