The real estate market is thawing this spring. Following five years of dismal sales and falling prices, the housing market is starting to see a turnaround, according to housing surveys, agent reports, and economists. Home buyers are returning to take advantage of record housing affordability while investors are buying up foreclosures in bulk at bargain prices. ”The biggest challenge that we’ve had over the past four years is fear — fear that the economy is collapsing, that property values are collapsing, that the world is coming to an end,” Mark Prather, a broker at ERA Buy America Real Estate in La Palma, Calif., told the Associated Press. “The fear factor is all but gone.” The signs are already there: Home sales prices are starting to edge up, even in hard-hit housing areas like Phoenix and Miami. Also, banks are issuing more home loans. Still, the housing market has some ways to go, with a surge of foreclosures expected to soon hit the market and the unemployment rate still high in many parts of the country. Source: The Associated Press

Renting used to be cheaper than buying. But in many U.S. cities that’s no longer the case, as rents continue to climb and home prices stagnate. While asking prices for homes declined 0.7% over the past 12 months through March, rents rose 5%, according to a report released Thursday by real estate listing site Trulia. The median rent for all types of rental homes hit $1,350 a month in March, up from a median of $1,285 a month 12 months ago, Trulia reported. “Buying a home is more affordable than renting now in almost every part of the United States,” said Jed Kolko, chief economist for Trulia. Several metro areas recorded double-digit percentage increases in rental rates. The national vacancy rate for apartments fell 0.3 percentage points during the first quarter to 4.9%, its lowest point since late 2001, according to a separate report from Reis Inc., a real estate research firm. With such limited availability, it has put pressure on rentals of all types. Source: CNN/Money

Many home owners who have no plans to move this year are opting to tackle improvement projects around the house, according to a new survey of 1,500 adults by American Express Spending and Saving Tracker. Seventy percent of home owners surveyed say they intend to take on a home improvement project this year, and they plan to spend about $3,500 on sprucing up their home, according to the survey. That’s an increase of about $100 compared to last year. The projects will primarily concentrate on the indoors, according to the survey. More than one-third of those polled say they are devoting some of that budget to home accessories, such as throw pillows, or on appliances and new furniture. The top home project they have lined up? Painting, which 37 percent of those surveyed say they plan to do this year. Twenty-four percent said they will do landscaping projects. Also, more home owners this year compared to last year say they’re going the do-it-yourself route, with plans to refurbish their houses themselves rather than hiring a professional to do it. In the survey, 43 percent of owners say they’ve been inspired to tackle home projects themselves by watching design shows on television, followed by seeing in-store displays or from viewing online design and do-it-yourself Web sites. Source: American Express

Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.

The other bit of good news resulting from a slower recovery concerns inflation and interest rates. This type of recovery gives the Federal Reserve Board and the markets less concern regarding inflation. Record low rates are continuing to be enjoyed even while the economy is getting better. Hundreds of thousands of Americans are taking advantage of these rates to purchase homes or refinance. This increased activity could heat up the recovery and cause rates to rise. However, with so many foreclosures expected to hit the market this year, the increased real estate demand has the potential to help absorb these foreclosures and many will actually be converted to short sales as lenders continue to shun the foreclosure process. There is plenty of room for real estate sales to increase without putting significant upward pressure on prices which would exacerbate the threat of inflation. On the other hand, the absorption of foreclosures will put in place the basis for price increases in the future. Following the release last week of preliminary first quarter GDP numbers that confirmed the pause, this week’s release of the employment report will give as another clue as to the extent of the pause as the first data released for the second quarter. For now, enjoy the low rates and pause in the rise in gas prices while they last.

What is a Mortgage Broker?

A mortgage broker is an independent real-estate financing professional who specializes in the origination of residential mortgage loans. Mortgage brokers normally pass the actual funding and servicing of loans on to wholesale lending sources. A mortgage broker is also an independent contractor working with (on average) as many as 40 lenders at any one time. By combining professional expertise with direct access to hundreds of loan products, your broker provides the most efficient way to obtain financing tailored to your specific financial goals.

What Do Mortgage Brokers Do?

In the volatile home-lending market, mortgage brokers can serve as safeguards, offering their clients security, safety, and peace of mind. One of the broker’s most important functions is escorting your loan application through the entire process, constantly patrolling the component transactions for possible breakdowns. A professional mortgage broker can wade through the mountains of rate data and program options, researching current market conditions to find the most accurate and up-to-date information about cost-effective loan options.

Brokers Handle the Details!

There are literally thousands of variables that can affect the outcome of your mortgage transaction. That’s why you need a mortgage broker to act as a liaison between the title and escrow company, real estate agent, lender, appraiser, credit agency, the underwriters, the processors, attorneys, and any other services which may affect your transaction.

A mortgage broker also:

• Discusses and explains financing program options
• Informs you, in writing, of lock-in options
• Explains all documents of the loan application
• Explains all associated costs of the loan application
• Explains the disbursement of all loan applications
• Explains the loan process, from application to closing
• Provides you with a good faith estimate of cost and fees
• Communicates with you throughout the loan process in a timely manner
• Coordinates the final closing of your transaction