Another Housing Report Shows Big Price Increases Year over Year

Another housing report released showed big price increases year over year, adding more credence to the housing recovery that is in full swing, thanks to low home prices and low mortgage rates. Corelogic, the real estate data and analytics firm, released their January 2013 Home Price Index (HPI) Report, which showed housing prices increased 9.7 percent in January 2013 compared to January 2012.

Another Housing Report Shows Big Price Increases Year over YearCorelogic's HPI report is one of many released over the past year that shows stronger home sales, higher home prices, and a lower amount of homes in inventory for sale - all a net positive for housing. With the highest home affordability in a generation and the lowest mortgage rates in over 40 years, now is a good time to buy a home. Mortgage rates today on 30 year conforming loans can be found as low as 3.00 percent if you're willing to pay points on a loan.

Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
in 95816, 2, 740    Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
PERIOD_FIXED_30YEARS Mortgage Loan from HomePlus Mortgage
HomePlus Mortgage
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111128.gif
300000
Purchase
3.560%
3.375%
USD
HomePlus Mortgage Logo
NMLS # 78669
10/21/2019
at 2.000 pts
30 day lock rate
Est payment: $1,327
Fees in APR: $6,995
Personal service - one point of contact from start to finish – available nights and weekends
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.291%
4.125%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/21/2019
at 2.000 pts
45 day lock rate
Est payment: $1,454
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Rocket Mortgage
Rocket Mortgage
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111574.gif
300000
Purchase
4.039%
3.875%
USD
Rocket Mortgage Logo
NMLS # 3030
10/21/2019
at 2.000 pts
45 day lock rate
Est payment: $1,411
Fees in APR: $6,000
From the lender: We can close your loan in less than a month!
 
PERIOD_FIXED_30YEARS Mortgage Loan from HomePlus Mortgage
HomePlus Mortgage
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111128.gif
300000
Purchase
3.560%
3.375%
USD
HomePlus Mortgage Logo
NMLS # 78669
10/21/2019
at 2.000 pts
30 day lock rate
Est payment: $1,327
Fees in APR: $6,995
Personal service - one point of contact from start to finish – available nights and weekends
 
PERIOD_FIXED_30YEARS Mortgage Loan from Quicken Loans NMLS #3030
Quicken Loans NMLS #3030
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111724.gif
300000
Purchase
4.291%
4.125%
USD
Quicken Loans NMLS #3030 Logo
NMLS # 3030
10/21/2019
at 2.000 pts
45 day lock rate
Est payment: $1,454
Fees in APR: $6,000
The Better Business Bureau gives Quicken Loans and A+ for customer service.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Apple Financial Network, Inc
Apple Financial Network, Inc
https:https://mortgagerates.icanbuy.com/images/lenderslogos/112378.gif
300000
Purchase
3.556%
3.375%
USD
Apple Financial Network, Inc Logo
NMLS # 1846010
State Lic # 01527337
10/21/2019
at 1.625 pts
30 day lock rate
Est payment: $1,327
Fees in APR: $6,972
Be ready to buy. Get pre-approved by a local lender
 
PERIOD_FIXED_30YEARS Mortgage Loan from New American Funding
New American Funding
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111741.gif
300000
Purchase
3.514%
3.375%
USD
New American Funding Logo
NMLS # 6606
10/21/2019
at 1.750 pts
30 day lock rate
Est payment: $1,327
Fees in APR: $5,250
Direct lender specializing in helping you save money on your home loan.
 
PERIOD_FIXED_30YEARS Mortgage Loan from Rocket Mortgage
Rocket Mortgage
https:https://mortgagerates.icanbuy.com/images/lenderslogos/111574.gif
300000
Purchase
4.039%
3.875%
USD
Rocket Mortgage Logo
NMLS # 3030
10/21/2019
at 2.000 pts
45 day lock rate
Est payment: $1,411
Fees in APR: $6,000
From the lender: We can close your loan in less than a month!
 

Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.






Home prices month over month were also higher in the HPI report. On a month-over-month basis, home prices increased by 0.7 percent in January 2013 compared to December 2012. This number also includes including distressed sales, which is telling since distressed sales, short sales, and foreclosures usually sell for less than prevailing market prices.

An increase in home prices was seen across the United States with the exception of two states, Delaware and Illinois. I'd imagine those states will see higher home prices as well in 2013 since current mortgage rates are still just above record lows.

In another recent housing report, home loan demand surged into the double digits week over week. In the Mortgage Bankers Association's most recent Weekly Application Survey, mortgage applications increased 14.8 percent from one week earlier. Loan demand was driven higher for both home purchases and refinancing as mortgage rates fell.

The MBA's Purchase Indexed and Refinance Index both increased 15 percent from the previous week. The Refinance Index is now at the highest level since mid-January and the Purchase Index is at the highest level since the beginning of February. The average contract rate on conforming mortgages, jumbo mortgages, and FHA mortgages all fell in this week's survey.

If you're sitting on the sidelines deciding when to buy a home, now is the best time. Since both home prices and mortgage rates will be moving higher in the coming years, you won't get better deals by waiting. You can get the most "bang for your buck" and afford the most home right now. as both prices and rates move higher your home purchasing power diminishes.

For each percent higher rate you pay on a loan, the monthly mortgage payments move higher. For example, a $400,000 home loan at 3.00 percent over 30 years will cost $1686.42 a month (without taxes and insurance). The same loan amount for 30 years at 4.00 percent will cost $1909.66 a month, a $233.42 monthly difference.

As you can see, you can quickly get priced out of a market or your dream home if you wait to buy. Therefore, now is probably going to be the best time to buy. The same holds true if you're thinking about refinancing your current loan. Look at the example above, if your current loan rate is 4.00 percent and you refinance to a rate of 3.00 percent you'll save $233 a month on a $400,000 loan.
 
 
Author: Brian McKay
March 7th, 2013