National Housing Sentiment Shows Improvement

1. National Housing Sentiment Shows Improvement • The majority of data from the recently released January Fannie Mae National Housing Survey (http://bit.ly/UZf16f) indicates that Americans are increasingly confident in the trajectory of both the economy and the housing market.  • The percent of survey respondents who think it is a good time to sell a home continued to climb, reaching 23 percent last month compared to 11 percent the same time last year.  • The percentage who thinks it is a good time to buy has inched down 2 percentage points to 69 over the last three months. • Only 10 percent of respondents expect home prices to decline further compared to 11 percent in December, while 41 percent expect price increases in the next 12 months and 45 percent expect no changes. • The average 12-month home price change expectation fell slightly from last month's survey high to 2.4 percent.  • The percentage of those surveyed who think mortgage rates will go up decreased by 3 percentage points to 41 percent, while those who think they will go down dipped slightly to 7 percent.

2. Refinancing Pays Off Big for Borrowers • Homeowners who refinanced in the fourth quarter of 2012 were able to trim their interest rate by an average of about 1.8 percentage points. That amounted to a savings of about 33 percent on the interest rate — which Freddie Mac reports is the largest percentage reduction ever recorded. • "On a $200,000 loan, that translates into saving about $3,600 in interest during the next 12 months,” said Freddie Mac Chief Economist Frank Nothaft. • In December, fixed mortgage rates had reached new lows, with 30-year products averaging 3.4 percent and 15-year averaging 2.7 percent that month. • Thirty-nine percent of homeowners who refinanced were able to reduce their principal balance by paying additional money at the closing table, Freddie Mac reports. • Borrowers who were able to refinance using the Home Affordable Refinance Program (HARP) had an average interest rate reduction of 2 percentage points. 

3. Weekly HAR Market Stat As we take our initial steps into the first year of predicted housing market improvement in many years, let's look at why we're feeling bullish. Affordability is high; coupled with historically low interest rates, people are ready to lay their money down. Inventory is down, creating more competition among those searching for homes. Desire plus demand has created more frequent tickles of price rising just as foreclosures and short sales are selling through the market, becoming less of a drag on those prices. The national residential real estate recovery is tentative and fragile, but it's still a recovery. . In the Houston region, for the week ending February 3: • New Listings decreased 7.0% to 2,065 • Pending Sales increased 37.4% to 1,846 • Closed Sales increased 24.9% to 1,293

4. Become a Leader Today 2013 Texas REALTORS® Leadership Program (TRLP)Application Deadline is March 15 Due to its overwhelming success, HAR will once again offer 30 members the opportunity to take part in the extensive, eight-month Texas REALTORS® Leadership Program (TRLP). Each session equips REALTOR® members with the tools necessary to grow both personally and professionally. Topics Include: Business Planning ∙ Time Management & Life Balance ∙ Spokesperson Training ∙ Leading Across Difference ∙ Understanding Your Leadership Style ∙ H-Town Day ∙ Team Building (Overnight Retreat) ∙ Law, Legislature & Leadership (Austin bus trip) Applications for the 2013 TRLP are now available. Contact Rita Blevins at (713) 629-1900 x263 or at rita@har.com to request an application.