Mortgage rates will likely rise above 5 percent in 2014 and average 5.3 percent by the end of 2015, according to the Mortgage Bankers Association’s forecast.
That would mark a big jump over where mortgage rates stand now. The MBA reported this week that the 30-year fixed-rate mortgage averaged 4.33 percent, the lowest average since June.
The MBA expects that the Federal Reserve will decide to taper its $85-billion per month bond-purchasing program in early 2014 and end it altogether in September 2014. The Fed’s bond buying program has been keeping mortgage rates low. The Fed has hinted in recent months that it will soon be winding down the program.
“As a result, mortgage refinancing will continue to drop, and borrowers seeking to tap the equity in their homes will be more likely to rely on home equity seconds rather than cash-out refinances,” says Jay Brinkmann, the MBA’s chief economist.
The MBA said in its forecast that it expects home purchase applications for mortgages to rise 9 percent next year, following expected continued home sales and price increases.
However, the MBA projects that overall mortgage originations will drop 32 percent in 2014, as the number of refinancing applications post a large drop in the new year due to expected rising interest rates.
While refinancings make up the bulk of home applications today, that trend is expected to reverse next year. Purchase loans are expected to make up 60 percent of originations next year compared to about 38 percent this year.
“We are projecting home purchase originations will increase in 2014 due largely to gains in home sales and home prices,” says Brinkmann. “We expect to see a decline in the share of sales paid for with cash, and higher average LTVs on purchase mortgages, due to the rise in home prices.” Source: “U.S. Mortgage Applications Increase as Rates Edge Down,” Reuters (Oct. 30 2013) and “Purchase Loans Expected to Buck Rising Mortgage Rates Next Year,” Inman News (Oct. 29, 2013
What is the requirement in CA for smoke detectors & carbon monoxide detectors?
Smoke Detectors California law requires that every single-family dwelling and factory-built housing have operable smoke detectors that are approved and listed by the State Fire Marshal and installed in accordance with the State Fire Marshal's regulations. (Cal. Health & Safety Code § 13113.8.)
The smoke detectors must be centrally located outside each sleeping area. For example, a two-story home with bedrooms upstairs and downstairs would need two smoke detectors, one in the hallway outside the bedrooms(s) upstairs and one in the hallway outside the bedroom(s) downstairs.
Furthermore, for any new construction or any additions, alterations, repairs after August 14, 1992 that exceeds $1,000 in cost and for which a permit is required, a smoke detector must be installed in each bedroom in addition to being centrally located in the corridor or area outside the bedroom.
For new construction only, the smoke detector must be hardwired with a battery backup. For all other homes, the smoke detector may be battery operated. (Cal. Health & Safety Code § 13113.7.)
Sellers must check with the local department of building and safety in which the home is located to determine any additional local requirements.
Unless exempt, the transferor/seller must provide the buyer with a written statement indicating that the property is in compliance with the law governing smoke detectors. This requirement may be satisfied by using C.A.R. Form SDC.
The exemptions are as follows: *Transfers that require a copy of a public report be given to the buyer. * Transfers pursuant to court order. * Transfers during foreclosure or trustee’s sale or through deed in lieu of foreclosure (REO transfers are not exempted, however). * Transfers by a fiduciary of a trust, decedent’s estate, guardianship or conservatorship * Transfers between co-owners. * Transfers to a spouse or to a child, grandchild, parent, grandparent or other direct ancestor or descendant. Transfers between spouses in connection with a dissolution of marriage or similar proceeding. * Transfers by the State Controller pursuant to the Unclaimed Property Law. * Transfers as a result of failure to pay property taxes.
Carbon Monoxide Detector
Residential (CA Residential Code, 2010) All newly constructed detached one- and two-family dwellings and townhouses not more than three stories in height that contain fuel burning appliances or an attached garage. Also, when such an existing dwelling requires a permit for alterations, repairs or additions exceeding $1,000. Commercial (CA Building Code, 2010) Group homes, assisted living facilities housing more than 16 persons in a supervised environment who are capable of responding to an emergency. Also includes hotels, boarding houses, apartments, dorms, adult and child day care facilities (all I-1, R-1, R-2 and R-3 dwellings and facilities). EXISTING HOMES Single-Family Dwellings – Required beginning July 1, 2011 Multi-Family Dwellings – Required beginning January 1, 2013 Any single-family dwelling, duplex, lodging house, private dormitory, hotel, motel, condo, time-share or multiple unit dwelling that contains a fossil-fuel burning heater, appliance, fireplace or attached garage.
New Construction: Must be hardwired with battery backup and interconnected. Existing Homes: May be battery operated, plug-in with battery backup, or hardwired with battery backup. Installation : CO alarms must be installed outside each separate sleeping area in the immediate vicinity and on every level. NOTE: Most of us have improved our homes for more than $1,000.00 (without permits) Therefore, to be safe a smoke detector must be installed in each bedroom in addition to being centrally located in the corridor or area outside the bedroom. Its is ALWAYS better to be safe that sorry! No Excpetions.
The smoke detectors must be centrally located outside each sleeping area. For example, a two-story home with bedrooms upstairs and downstairs would need two smoke detectors, one in the hallway outside the bedrooms(s) upstairs and one in the hallway outside the bedroom(s) downstairs.
Furthermore, for any new construction or any additions, alterations, repairs after August 14, 1992 that exceeds $1,000 in cost and for which a permit is required, a smoke detector must be installed in each bedroom in addition to being centrally located in the corridor or area outside the bedroom.
For new construction only, the smoke detector must be hardwired with a battery backup. For all other homes, the smoke detector may be battery operated. (Cal. Health & Safety Code § 13113.7.)
Sellers must check with the local department of building and safety in which the home is located to determine any additional local requirements.
Unless exempt, the transferor/seller must provide the buyer with a written statement indicating that the property is in compliance with the law governing smoke detectors. This requirement may be satisfied by using C.A.R. Form SDC.
The exemptions are as follows: *Transfers that require a copy of a public report be given to the buyer. * Transfers pursuant to court order. * Transfers during foreclosure or trustee’s sale or through deed in lieu of foreclosure (REO transfers are not exempted, however). * Transfers by a fiduciary of a trust, decedent’s estate, guardianship or conservatorship * Transfers between co-owners. * Transfers to a spouse or to a child, grandchild, parent, grandparent or other direct ancestor or descendant. Transfers between spouses in connection with a dissolution of marriage or similar proceeding. * Transfers by the State Controller pursuant to the Unclaimed Property Law. * Transfers as a result of failure to pay property taxes.
Carbon Monoxide Detector
Residential (CA Residential Code, 2010) All newly constructed detached one- and two-family dwellings and townhouses not more than three stories in height that contain fuel burning appliances or an attached garage. Also, when such an existing dwelling requires a permit for alterations, repairs or additions exceeding $1,000. Commercial (CA Building Code, 2010) Group homes, assisted living facilities housing more than 16 persons in a supervised environment who are capable of responding to an emergency. Also includes hotels, boarding houses, apartments, dorms, adult and child day care facilities (all I-1, R-1, R-2 and R-3 dwellings and facilities). EXISTING HOMES Single-Family Dwellings – Required beginning July 1, 2011 Multi-Family Dwellings – Required beginning January 1, 2013 Any single-family dwelling, duplex, lodging house, private dormitory, hotel, motel, condo, time-share or multiple unit dwelling that contains a fossil-fuel burning heater, appliance, fireplace or attached garage.
New Construction: Must be hardwired with battery backup and interconnected. Existing Homes: May be battery operated, plug-in with battery backup, or hardwired with battery backup. Installation : CO alarms must be installed outside each separate sleeping area in the immediate vicinity and on every level. NOTE: Most of us have improved our homes for more than $1,000.00 (without permits) Therefore, to be safe a smoke detector must be installed in each bedroom in addition to being centrally located in the corridor or area outside the bedroom. Its is ALWAYS better to be safe that sorry! No Excpetions.
8 Cities Where Asking Prices Are Soaring:
Asking prices on homes for-sale are edging higher nationwide in the past year, with prices 6.40 percent higher than year ago levels, according to realtor.com®’s September National Housing Trend Report. Nationwide, the national median list price for homes was $199,500 last month.
Of the 146 markets that realtor.com® tracks in its report, more than 20 percent reported year-over-year over price gains of 12 percent or more.
In some areas, asking prices have jumped even more — by 26 percent or more — in the past year. In Detroit alone, asking prices have surged 44.57 percent year-over-year.
The following metros have seen some of the largest gains in median asking prices year-over-year:
1. Detroit: +44.57% Median list price: $133,000
2. Stockton-Lodi, Calif.: +41.12% Median list price: $239,900
3. Santa Barbara-Santa Maria-Lompoc, Calif.: +32.10% Median list price: $786,000
4. Las Vegas, Nev.-Ariz.: +30.69% Median list price: $169,900
5. Reno, Nev.: +29.63% Median list price: $259,250
6. Sacramento, Calif.: +28.94% Median list price: $303,000
7. Oakland, Calif.: +27.99% Median list price: $479,950
8. Melbourne-Titusville-Palm Bay, Fla.: +26.90% Median list price: $165,000
Source: Realtor.com National Housing Trend Report (September 2013)
Of the 146 markets that realtor.com® tracks in its report, more than 20 percent reported year-over-year over price gains of 12 percent or more.
In some areas, asking prices have jumped even more — by 26 percent or more — in the past year. In Detroit alone, asking prices have surged 44.57 percent year-over-year.
The following metros have seen some of the largest gains in median asking prices year-over-year:
1. Detroit: +44.57% Median list price: $133,000
2. Stockton-Lodi, Calif.: +41.12% Median list price: $239,900
3. Santa Barbara-Santa Maria-Lompoc, Calif.: +32.10% Median list price: $786,000
4. Las Vegas, Nev.-Ariz.: +30.69% Median list price: $169,900
5. Reno, Nev.: +29.63% Median list price: $259,250
6. Sacramento, Calif.: +28.94% Median list price: $303,000
7. Oakland, Calif.: +27.99% Median list price: $479,950
8. Melbourne-Titusville-Palm Bay, Fla.: +26.90% Median list price: $165,000
Source: Realtor.com National Housing Trend Report (September 2013)
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