While the long term impact of the U.S. credit downgrade from AAA to AA+ rating is unclear at best, the immediate outcome was quite favorable to mortgage lending. On Monday, interest rates fell to their lowest levels this year at 4.25% for a 30-year fixed rate mortgage.
Also on Monday, the credit rating agency Standard and Poor’s (S&P) downgraded mortgage finance giants Fannie Mae and Freddie Mac to AA+. "The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government," S&P said in a statement.
It remains to be seen what if any affect the downgrades will have on mortgage interest rates. Some speculate interest rates will spike, yet immediate market reactions are anywhere from muted to favorable. One thing is certain, mortgage interest rates are very unlikely to improve. Only time will tell what rates will do in the coming weeks and months ahead.
Tuesday, August 9, 2011
Energy Efficiency: Does your home make the grade?
Seattle City Council has been considering adding another step to the home selling process for the past couple years. Such a measure would require home sellers to pass an energy audit. If the home doesn’t pass, the necessary corrections would need to be made prior to closing such that the home meets a certain level of efficiency standard.
Austin, Texas put a similar law on its books only to remove it within the first year. For Seattle, with at least two thirds of its housing stock built prior to World War II, such a sudden paradigm shift would be devastating to sellers and our local housing market as a whole.
The move to greening our economy is just in its beginning stages, thus this topic is not going away anytime soon. In fact it’s safe to bet pre-closing energy audits will likely become the norm at some future date. It would be wise to prepare now. Habitat is currently offering a $305 discount for Seattle City Light customers on home energy audits. For information, visit: http://www.habitataudits.com/305-2/
Austin, Texas put a similar law on its books only to remove it within the first year. For Seattle, with at least two thirds of its housing stock built prior to World War II, such a sudden paradigm shift would be devastating to sellers and our local housing market as a whole.
The move to greening our economy is just in its beginning stages, thus this topic is not going away anytime soon. In fact it’s safe to bet pre-closing energy audits will likely become the norm at some future date. It would be wise to prepare now. Habitat is currently offering a $305 discount for Seattle City Light customers on home energy audits. For information, visit: http://www.habitataudits.com/305-2/
Seattle Condo Market Update
July was a challenging month for Seattle’s condo market with a downward pressure on prices despite improved sales.
The median citywide sales price of $255,000 reflected a 12.07% decline compared to last July, but increased 3.7% over June. While most neighborhoods saw double-digit decreases, the downtown / Belltown area fared the best with only a 0.7% dip, less than a percent. Median sale prices over the past few months have been in line with 2005 price levels.
The number of active listings continued to hover around the 1,100 mark. That’s approximately 30% fewer available listings for sale compared to the same period last year. At this rate and contemplating seasonal factors, we may hit pre-construction boom inventory levels by Fall.
The median citywide sales price of $255,000 reflected a 12.07% decline compared to last July, but increased 3.7% over June. While most neighborhoods saw double-digit decreases, the downtown / Belltown area fared the best with only a 0.7% dip, less than a percent. Median sale prices over the past few months have been in line with 2005 price levels.
The number of active listings continued to hover around the 1,100 mark. That’s approximately 30% fewer available listings for sale compared to the same period last year. At this rate and contemplating seasonal factors, we may hit pre-construction boom inventory levels by Fall.
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