Exterior remodeling is best bang for your buck

Despite a slow market and a slight decrease in the resale value of most remodeling projects, Realtors report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by REALTORS® who completed a recent survey.
Here are the highlights:
• On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000.
• Certain types of door and siding replacements, as well as wood deck additions all returned more than 80% of project costs upon resale. A steel entry door replacement--a new addition to this year's list--recouped 128.9% of costs, followed by upscale fiber-cement sliding replacements at 83.6%. Wood deck additions recouped 80.6% of costs.
• On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1% of remodeling costs compared to 73.8% in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3% costs recouped.
• Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79% of costs. In addition, several types of window replacements - midrange wood, midrange vinyl, and upscale vinyl-all returned more than 76% of costs upon sale.
Similar to last year's report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1% and 50.7% of project costs.

Source: NAR

Mortgage applications up 8.5%

WASHINGTON (AP) — Mortgage applications jumped 8.5% the week ended Dec. 4, as more borrowers refinanced loans to lock in interest rates near record lows, according to the Mortgage Bankers Association.

Full story here: http://www.usatoday.com/money/economy/housing/2009-12-09-mortgage-applications_N.htm

Upbeat

From Real Trends:

Existing-home sales surged 10.1 percent to a seasonally adjusted annual rate of 6.10 million units in October from a downwardly revised pace of 5.54 million in September, and are 23.5 percent above the 4.94 million-unit level in October 2008.

Sales activity is at the highest pace since February 2007 when it hit 6.55 million. Total housing inventory at the end of October fell 3.7 percent to 3.57 million existing homes available for sale, which represents a 7.0-month supply at the current sales pace, down from an 8.0-month supply in September. Unsold inventory totals are 14.9 percent below a year ago.

The national median existing-home price for all housing types was $173,100 in October, down 7.1 percent from October 2008. Distressed properties, which accounted for 30 percent of sales in October, continue to downwardly distort the median price because they usually sell at a discount relative to traditional homes in the same area.

Fannie Mae seeks more federal aid

Fannie Mae, the federally controlled mortgage finance giant, said it lost $19 billion in the third quarter and had submitted a request to the Treasury Department for $15 billion in more aid to stay afloat.

FUll story here: http://www.washingtonpost.com/wp-dyn/content/article/2009/11/05/AR2009110505223.html

Mortgage rates rise for third week

Rates for 30-year home loans climbed to 5.03 percent this week, the third consecutive weekly increase.

Story from Washington post here: http://www.washingtonpost.com/wp-dyn/content/article/2009/10/29/AR2009102905090.html

10 questions for lenders

Once you've narrowed the lender field to a short list of finalists, it's time to compare their offers. http://www.bankrate.com/finance/mortgages/10-questions-for-lenders-1.aspx

Mortgage applications jump

From Real Trends Inc.:

Mortgage application volume increased 16.4% from one week earlier, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 2, 2009. On an unadjusted basis, the Index also increased 16.4 percent compared with the previous week. The refinance share of mortgage activity increased to 66.3 percent of total applications from 65.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 percent from 6.2 percent of total applications from the previous week. The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.89 percent from 4.94 percent, with points increasing to 1.13 from 0.94 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This rate is at its lowest level since May 2009 when it was 4.81 percent.