St. Louis Real Estate – Mortgage News – Them Changes

Filed under: First Time Home Buyer, For Buyers, Mortgage News, Real Estate News, Relocation Buyer

More Changes Coming! by Chris Scheer, Branch Manager, Cornerstone Mortgage, O’Fallon, MO

The days of asking a loan officer what his interest rate is are going to end. Now the question will be what it should have been all along, what is your credit score, how much are you borrowing and at what loan to value. Both Fannie Mae and Freddie Mac have announced new risked based pricing models that will take effect on or about March 1, 2008 for all loans delivered to them. That means that by the end of 2007 if a loan is originated it will in all probability be price based on the risk base models. Here are the links to the Fannie and Freddie announcements: guides and bulletin.

So what does this mean to the consumer?

First of all, if you don’t have a credit score over 680 and you are borrowing more than 70% of the homes value you are going to pay a premium in the interest rate. You may pay as much as .5% in the interest rate or as much as 2 points. Now more than ever it will be a priority to manage your FICO score and maintain at least the 680 mid score. If you remember I previously posted a blog on “Evolution of Credit” on September 20, 2007. Companies such as Evolution Credit will be extremely helpful in helping you improve your credit. However, if you just do the simple things, pay your bills on time, avoid collection accounts, don’t max your credit cards, don’t have tax liens or judgments filed against you things will be just fine. If one of those things occurs you will have to work hard to get that FICO back up above the 680 number.

First of all, if you don’t have a credit score over 680 and you are borrowing more than 70% of the homes value you are going to pay a premium in the interest rate. You may pay as much as .5% in the interest rate or as much as 2 points. Now more than ever it will be a priority to manage your FICO score and maintain at least the 680 mid score. If you remember I previously posted a blog on “” on September 20, 2007. Companies such as will be extremely helpful in helping you improve your credit. However, if you just do the simple things, pay your bills on time, avoid collection accounts, don’t max your credit cards, don’t have tax liens or judgments filed against you things will be just fine. If one of those things occurs you will have to work hard to get that FICO back up above the 680 number.Beware of the credit repair scams artists though. No different from the “Dark Side” lenders who advertise great rates and then rape you of your money and profit from your misfortune. Avoid those pitfalls and don’t rush to a quick fix.

Remember what you mother told you, “if it seems to good to be true it probably is!”

For questions or comments on this, please contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by Doug Aegerter   |   Read More   |   Your Comments Are Welcome!   |   12.02.2007

St. Louis Real Estate-Just Do It-NOW!

Filed under: First Time Home Buyer, For Buyers, For Sellers, Real Estate News, Relocation Buyer, St. Louis Market Reports, Unrepresented Seller(FSBO)

St. Louis Real Estate Market Watch 
November 24th,  2007
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

HEY BUYERS!! How much more evidence do you need to see that NOW is the time to buy that DREAM HOME?? 

MORTGAGE RATES HAVE FALLEN AGAIN!!  Read Chris Scheer’s article, “Lock it and Pocket the Money”, published in our blog or check out Inman News for proof. This last week we’ve seen some awesome activity on the mortgage rate side of our business.

Earlier this week, Inman News reported that the long-term mortgage interest rates were down and that the benchmark 10–year Treasury bond yield dropped to 3.83%. Inman News reports, based on data from Bankrate.com, that the 30–yr. fixed rate was down to 5.82% and the 15–yr. fixed rate fell to 5.4%.  Bankrate.com’s data is composed of surveying 4000 banks in 50 states.

Inman News also reported this last week that the “sales rate for NEW HOME sales rose in October for the first time since April, but fell about 23.5% compared to October 2006.  Also, the median sales price of new homes dropped 13% in October compared to October 2006.”

This last Wednesday, according to Inman News, the National Association of Realtors reported that the median price of re-sale homes fell 5.1% in October 2007 compared to October 2006.  Also, another index released this week by the National Association of Home Builders and Wells Fargo, revealed that the NATIONAL median price of new and re-sale homes sold in the third quarter this year dropped 3.6% compared to the third quarter of 2006.

FOR ALL YOU JUMBO MORTGAGE BUYERS— Sorry, your loan will probably get a bit more expensive, as this last week, Inman News reported that the average 30 yr. JUMBO loan rose 4 basis points from a week ago to 7.24%.

SO…What does that mean for our St. Louis Real Estate Market??—That means BUY YOUR NEW HOME NOW, and LOCK IN YOUR LOAN.

With the St. Louis Real Estate Market this week showing more listings coming off the market, and pending ratios hanging in at 12–13%, the buyers that are serious are buying.  There are some GREAT values out there, which doesn’t mean you can STEAL a home, just that this a great time to get excellent value for your hard-earned dollar.  For homes that are priced within market value, we are still in a 2–4% market with our average sales to list price comparisons. 

Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch December 1st, 2007

St. Louis Real Estate Jefferson  County Market Watch December 1st, 2007

St. Louis Real Estate St. Charles County Market Watch November 24, 2007

St. Louis Real Estate Benchmark Report November 2007

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 – 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 – 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   12.01.2007

St. Louis Real Estate – Mortgage News – Lock it and Pocket the Money

Filed under: First Time Home Buyer, For Buyers, Mortgage News, Relocation Buyer

Flight to Safety? by Chris Scheer, Branch Manager, Cornerstone Mortgage, O’Fallon, MO

What a 24 hour period on the bond for the mortgage backed securities. Several Days ago the bond market was whipsawed by the statements made by Senator Schumer. During the next 3 hours interest rates on the 30 year fixed fell to 6% and depending upon the loan size some loans were locked at 5.875%. This knee jerk reaction is what Wall Street likes to call a “Flight to Safety.” When there is panic in the markets, safe money is parked short term in bonds and so as the money fled from stocks, it went into bonds and we saw the prices rise and the yields (interest rate) fall. As with any sharp movement like this the following day you can expect a correction to occur or in some cases simple profit taking. The next day began that way as demand dropped and rates started to rise and then Citi announced their cash infusion and the correction continued throughout the day.

As I just checked the price on my sheets, the same loan that I locked yesterday at 4:00 c.s.t. I am now able to lock and I have lost 45 basis points or almost .5%; which to the consumer usually means the difference in .125% in their rate. So over 24 hours we have seen rates fall .25%-.375% and then rise .125%-.25%.

What does this mean? If you are one of my clients, it means the next time I call you or send you an e-mail that says it is time to take advantage of a market movement, heading my advice will make you money. If you are not one of my clients, then when you talk to a loan officer and he tells you that his rate is x and you don’t pull the trigger and lock in, he just might be telling you the truth if you talk to him 2 hours later and he says his rate is now x+y or in other words higher.

For questions about this or comments, please contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by Doug Aegerter   |   Read More   |   Your Comments Are Welcome!   |   12.01.2007

St. Louis Real Estate – Mortgage News – Blame Game

Filed under: First Time Home Buyer, For Buyers, Mortgage News, Relocation Buyer

Are we done with the blame game?

I continue to read stories in newspapers and on line about who is to blame for the mortgage mess. The latest is posted here; Who’s to blame for the Mortgage Mess .

At this point does it really matter who is to blame. As with the past financial challenges that this country has had to deal with, we have another caused by greed and lack of oversight, read more about Financial Disasters. Now is the time to move on. How do we do that? I am glad you asked!

As much as it pains me, I do believe that we need more regulation and licensing of mortgage originators; especially those that choose to be mortgage brokers. The challenge with a broker is that they are in theory there to help their client get the best by being able to offer products from a variety of companies. What has happened instead is the majority of brokers are there to only make as much money as they can and then move on to the next victim. Now I realize that victim is a harsh term, but the way the majority of the “dark side” behaved was to make as much as they could from as many as possible.

As I sat in my office today helping one of my new loan officers understand some terminology on some different loan programs, he mentioned that there should be a school for loan officers so that they could go somewhere and get the education to understand what it was that they were selling. For far too long this has been an industry of graduates of the School of Hard Knocks and the School of the Easy Path to Fast Money. Those of us that have chosen this career path to help people achieve their financial dreams need to push for licensing and education requirements so that we can keep the people who only want to make as much money as possible with the greatest of ease out of the business.

For you comments or questions, please contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by Doug Aegerter   |   Read More   |   Your Comments Are Welcome!   |   11.28.2007

St. Louis Real Estate-Market Watch November 17, 2007

Filed under: First Time Home Buyer, For Buyers, For Sellers, Real Estate News, Relocation Buyer, St. Louis Market Reports, Unrepresented Seller(FSBO)

St. Louis Real Estate Market Watch 
November 17th,  2007
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

 Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

The St. Louis Real Estate Market this week has shown a small improvement from the last couple of weeks. We are seeing positive signs with the pending ratio inching up closer to 12% as more homes are accepting contracts AND selling a bit closer to listing price at 97.7%.  Much of this is due to less inventory on the market and buyers having fewer choices. This week, active listings have dropped by almost 200 and there is still an ever increasing number of “market rejected listings” choosing to stay off the market.

As we get closer to the end of the year, buyers that need to buy are realizing that it’s time to act if they want to be in a home before the end of the year. 

The Sellers that we talk to also realize that the end of the year is approaching and are either adjusting their prices or making other concessions or needed improvements to try to attract the buyers that are in the marketplace.  In this market, or any market for that matter, it’s all about being no. 1 and the “Best House on The Block.”

St. Louis Real Estate St. Louis County Market Watch November 17th, 2007

St. Louis Real Estate Jefferson  County Market Watch November 17th, 2007

St. Louis Real Estate St. Charles County Market Watch November 10, 2007

St. Louis Real Estate Benchmark Report October 2007

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 – 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 – 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   11.17.2007

St. Louis Real Estate-Market Watch November 10, 2007

Filed under: First Time Home Buyer, For Buyers, For Sellers, Real Estate News, Relocation Buyer, St. Louis Market Reports, Unrepresented Seller(FSBO)

St. Louis Real Estate Market Watch 
November 10th,  2007
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

The St. Louis Real Estate Market this week has not made any significant moves from last week.  We are sitting on a “plateau” right now, perhaps waiting to see what will happen as we get closer to the holidays and perhaps waiting to see if the rate cut by the Fed will effect the market. 

There is still plenty of inventory in the market for buyers to look at, but they should also take note that sellers that are in the marketplace are pricing their homes competitively as evidenced by our average list to sales percentages.  Homes accepting offers within the first 30 days, are still in a 2–3% market.  Homes that are up to 60 days on the market are remaining in a 3–4% market.  So..buyers that are looking for a that “so called DEAL”  must look at homes that are on the market longer than 60 days, and in some price ranges 90 days plus.

Mr. Buyer, do you want to take the chance that you will miss the home of your dreams by waiting for long market times?  Buyers that are looking now are more motivated and are buying somewhat quicker than in previous months. 

Sellers—with the amount of inventory on the market your mission still has not changed.  To get your home sold in today’s market, for the most money, in the shortest period of time you MUST be NO. 1 in your price range. You should be priced within market value, or a bit below it, be in the best condition, with all the expected updated in your price range and have the home aggressively marketed by a real estate professional. 

 Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch November 10, 2007

St. Louis Real Estate Jefferson  County Market Watch November 2nd, 2007

St. Louis Real Estate St. Charles County Market Watch November 10, 2007

St. Louis Real Estate Benchmark Report October 2007

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 – 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 – 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by Art Wagner   |   Read More   |   1 Comment »   |   11.10.2007

St. Louis Real Estate-Market Watch November 2, 2007

Filed under: First Time Home Buyer, For Buyers, For Sellers, Real Estate News, Relocation Buyer, St. Louis Market Reports, Unrepresented Seller(FSBO)

St. Louis Real Estate Market Watch 
November 2^nd,  2007
The Anatomy of St. Louis Real Estate

The St. Louis Home for Sale Team provides a weekly St. Louis County and Bi-weekly St. Charles County Market and Jefferson County Market Watch Report to review and plug into your home buying or selling scenario. Your questions and comments are welcome! 

The St. Louis Real Estate Market is continuing it’s fall trends with again; less listings, lower pending ratios and more rejected listings remaining off the market.  SELLERS TAKE NOTE-THIS IS GREAT!!  Those sellers just entering the market or remaining on the market will indeed face less competition and a bit more motivated buyer pool.

Less competition equated to more activity on your home and hopefully a sales price closer to the listing price.  As we mentioned last week, we are still very much in a buyer’s market with average total inventory at 10 months.

Jefferson County Real Estate Market is following the St. Louis County trends this week.  The major difference in Jefferson County is the pending ratio lower at 9.7% this week and the Days On Market are about 30 more than St. Louis County.

TRIVIA FROM LAST WEEK:  IF you’re a seller that also believes in LUCK AND PRAYER—There is a superstition here in St. Louis that by doing “something” outside in your yard will help your home sell. WHAT IS IT YOU MUST DO IN YOUR YARD? AND..it has nothing to do with perfect landscaping.

ANSWER: The superstition in St. Louis is that if you bury a statue of St. Joseph UPSIDE DOWN in your yard, he will bring you good luck, and hopefully a BUYER for your home in a short period of time.  We have clients in High Ridge, Mo. that will tell you it works!!

 Thinking of buying or selling a home? Contact Us for additional information tailored to your specific needs.

St. Louis Real Estate St. Louis County Market Watch November 2nd, 2007

St. Louis Real Estate Jefferson  County Market Watch November 2nd, 2007

St. Louis Real Estate St. Charles County Market Watch October 27, 2007

St. Louis Real Estate Benchmark Report October 2007

The report begins by breaking the market into 17 distinct price ranges. Then we show current listings and current pending listings which creates a pending ratio, which is helpful on a week to week basis to see if activity is increasing or decreasing in a price category. 

The report also shows the last 6 months of results and compares the data to the same 6 months of the previous year. 

The Market Analysis includes data on: 

Number of Active Listings (Current)
Pending Sales (Going to closing)
Pending Ratio (Active vs.Pending)
Sold (Last 6 months)
Expired (Last 6 months)1
Average List Price
Average Sale Price
Average List to Sales Price %
Days on Market (DOM)
Months worth of Inventory (Based on current pending rate)
Buyers Market: > 7 months of listing inventory

Transitional Market: 5 – 7 months of listing inventory (sometimes called a “balanced” market)

Seller Market: < 5 months of listing inventory

Average % Sale Price/List Price (0-30), (31-60), (61-90), (91-120), (120+)DOM
           
Notice that you’re paying a penalty for over pricing. . .hey. .it’s a fact!!  

The Benchmark Report is produced monthly for:

• Single Family Residence
• Ranch Style
• 1300 – 2000 sq.ft.
• 3 Bedrooms
• 1.5 Bathrooms  

Art Wagner can be reached at art@stlouisrealestatevoice.com

Posted by Art Wagner   |   Read More   |   Your Comments Are Welcome!   |   11.03.2007

St. Louis Real Estate – Mortgage News – Downpayment Assistance

Filed under: First Time Home Buyer, For Buyers, For Sellers, Mortgage News, Real Estate News, Relocation Buyer, Unrepresented Seller(FSBO)

Downpayment Assistance Rule:

For the past few years, FHA has allowed charitable non-interested parties to supply the down payment to a borrower on FHA loans. Unfortunately, this practice caused housing prices to be inflated as the seller would raise their price and then contribute the increase to the charity as a donation. The charity would then give a gift to the borrower and thus have the down payment for a home with an FHA mortgage. The challenge is that the borrower had no vested interest in the house and when times got tough it was easy for them to walk away since they would be losing nothing other than a home with an inflated price. Selling the home was difficult in a flat or declining real estate market. This practice is one of the logs on the bonfire of the mortgage industry that is burning across our nation.

Here is the latest on this practice:

FHA will issue official guidance regarding implementation of the regulation regarding a mortgagor’s cash investment. In the interim, to address the questions raised by many industry partners, FHA is providing the following information:

1. Nehemiah Corporation of America, due to a previous Settlement Agreement and as discussed in the rule, is granted relief from the effective date of the rule until April 1, 2008.

2. HUD has agreed to grant the AmeriDream Downpayment Assistance Program relief from the effective date of the rule until February 29, 2008.

3. All other similar downpayment assistance providers have not been granted relief from the effective date of the rule, which is October 31, 2007.

Provided that the homebuyer has entered into a contract of sale (including any amendments to purchase price) on or before October 31, 2007, FHA will recognize the gift if made to the homebuyer and properly documented as an acceptable source of the downpayment.

To read the final rule in its entirety and for more information please visit: http://hudclips.org/sub_nonhud/cgi/pdf/4846a.pdf

For questions or comments please contact Chris Scheer at chrisscheer@stlouisrealestatevoice.com

Posted by Doug Aegerter   |   Read More   |   3 Comments »   |   10.30.2007