A barrage of lawsuits over a real estate mapping patent dispute has thickened, with the company that claims rights to the patent attempting to draw a range of real estate industry trade groups and companies into the fray.
Real Estate Alliance Ltd., a Pennsylvania-based company that sells licenses to an electronic mapping technology, in July 2005 filed a lawsuit charging patent infringement by Pennsylvania Realtor Diane Sarkisian, among others.
And now, in a separate lawsuit pending in California, REAL is seeking to draw in the National Association of Realtors, National Association of Home Builders, several multiple listing services, several real estate brokerage companies, home builders, rental property companies, and software and technology companies in its counterclaim against Realtor.com operator Move Inc.
REAL issued a public announcement today about its latest court motion, stating that the company seeks five nationwide class actions "in a full range of claims designed to secure industry-wide compensation for intentional, massive and ongoing patent infringement." The announcement charges that possibly "hundreds of billions of dollars in real estate transactions have been and continued to be facilitated by the unlawful infringement" of the patents.
Interactive mapping technology is now ubiquitous in the real estate industry, with many major real estate sites integrating maps with their online home-search tools. The patents in the case (patents 5,032,989 and 4,870,576) relate to methods for locating real estate property for sale, lease or rental using a database of available properties, and displaying the location of the properties and information about the properties.
In its original complaint against Sarkisian, REAL had sought to expand the complaint into a class-action lawsuit against active participants in a regional multiple listing service and some Realtors who purchased enhanced features for property listings displayed at the Realtor.com property-search site, though the court in September denied REAL's motion to certify the proposed class-action group that included Realtor.com's users. The court is now considering whether to issue a summary judgment in that lawsuit.
A related countersuit alleges that the patent backers violated federal racketeering laws by threatening agents with lawsuits if they did not purchase licenses for the disputed mapping technology.
And a separate lawsuit, filed by Move Inc. in California in April, seeks a court judgment on whether Move Inc. infringes on the patents that are the focus of REAL's lawsuit.
According to a Sept. 30, 2007, quarterly earnings report, Move seeks a judgment "that the REAL patents are invalid and/or unenforceable," and charges that REAL and its licensing agent Equias Technology Development LLC interfered with contractual relations and engaged in unfair competition under California law.
REAL and Equias denied the allegations and filed counterclaims against Move that assert infringement of the REAL patents and seek a range of damages against Move, according to a document filed with the U.S. Securities and Exchange Commission. Move "has denied REAL's allegations" and "intends to vigorously prosecute the California action and defend against REAL's allegations."
The National Association of Realtors has supported Sarkisian's defense in the initial lawsuit, and has already approved in excess of $1 million in legal assistance for the case.
Asked to comment on the latest development in the lawsuit, NAR spokesperson Lucien Salvant on Thursday said, "We haven't received any notification yet, so we don't have any comment."
Mark Tornetta, the inventor of the patents in question, in 1998 filed lawsuits charging that Cyberhomes.com (then operated by Moore USA) and Microsoft Corp.'s HomeAdvisor sites infringed upon his mapping patents, and those lawsuits were later dropped.
***
Last one year, three month and last 1 month hawaii interest rates charts..!
Keep watching the trend that took place today.
*please consult with your loan broker
Interest Rates effective 02/28/2008 and are based on a 30-day lock period for purchases. Call for longer lock period. Bank of Hawaii does not guarantee the availability of any particular interest rate, and any interest rate information provided to you is solely for your information and may be changed by Bank of Hawaii at any time.
5.810%1
1.375%
5.878%2
5.075%3
1.750%
6.063%5
6.130%6
5.395%8
5.194%10
5.194%11
1.125%
5.440%14
1.000%
5.454%15
WASHINGTON — Having already slashed short-term interest rates by almost half since August, the chairman of the Federal Reserve, Ben S. Bernanke, signaled on Wednesday that more rate cuts — which is to say more cheap money — may lie ahead.
Mr. Bernanke’s assumption is that slowing economic growth will reduce inflationary pressures in the months ahead, because debt-laden consumers will be far more wary of spending money and businesses will be more cautious about investing in more plant and equipment.
But the success or failure of the Fed’s strategy could depend on something outside Mr. Bernanke’s immediate control: foreign confidence in the American dollar and foreign willingness to keep financing the United States’ huge external debt.
The dollar has plunged against most major currencies since the Federal Reserve first began cutting interest rates in September, and slipped to another all-time low against the euro after Mr. Bernanke’s testimony on Wednesday to the House Financial Services Committee.
A weak dollar tends to boost American exports by making them cheaper in foreign markets, but it also pushes up inflation by raising the cost of foreign imports. And while the United States buys oil in dollars, many analysts contend that part of the recent run-up in oil prices is tied to the steadily declining value of the dollar.
Over the long haul, the bigger worry for Mr. Bernanke may not be import prices as much as interest rates and the dollar’s value. While the Fed has direct control over overnight interest rates, long-term interest rates for mortgages and business purposes are affected in large measure by the flow of trillions of dollars in cheap foreign money.
Foreign capital inflows were a crucial contributor to the boom in housing prices and the persistence of low mortgage rates even after the Fed raised rates in 2004. If capital flows are now slower, or come with higher demands, mortgage rates are likely to stay high even if the Fed cuts its benchmark rate.
Even as Mr. Bernanke repeated the Fed’s mantra about closely monitoring inflation trends, investors on Wall Street immediately recognized that the Fed chairman was leaving the door open to lower interest rates when he promised to provide “insurance” against a possible downturn.
An old rule of thumb in monetary policy, seared into the memory of policy makers in the late 1970s, is that it is much easier to fix a mistake about economic growth than it is to fix one about inflation.
But as the Fed grapples with both the clear danger of a recession and rising consumer prices, policy makers are now putting far more emphasis on fighting a slowdown than on fighting inflation.
In his testimony Wednesday, Mr. Bernanke acknowledged that the central bank faces increasingly contradictory pressures of slowing growth and rising consumer prices.
The “economic situation has become distinctly less favorable” since last summer and “the risks to this outlook remain on the downside,” he told the House panel, whose leaders focused on the deep slump in the housing industry.
Mr. Bernanke signaled that at least for now, policy makers are more worried about averting or at least softening a possible recession.
Though the Fed is still predicting that the economy will narrowly escape a recession, policy makers have slashed their forecasts for growth in 2008 to less than 2 percent and expect almost no expansion during the first six months of this year.
But Mr. Bernanke warned that even that forecast may prove optimistic. He predicted that the housing downturn will continue to slow the economy “in the coming quarters,” noting that financial markets are still in turmoil and that it has become more difficult to obtain credit. Consumer spending has “slowed significantly,” he said, partly because of rising gasoline prices, slowing job growth and the decline in household wealth as a result of falling home prices.
In exchanges with the lawmakers, Mr. Bernanke agreed that regulation needed to be tighter, or at least more efficient, to avoid another epidemic of mortgage defaults, and for that matter to deter abuses in the credit-card industry.
“We don’t want to create a chilling effect,” Mr. Bernanke said. “We don’t want to shut down these markets. We just want them to work better and, in particular, we think it’s important for consumers to have a better understanding of what it is that they’re buying when they purchase products in these markets.”
The Federal Reserve has proposed rules intended to curb shady lending practices and impose more clarity on lending terms.
The committee chairman, Representative Barney Frank, Democrat of Massachusetts, said it was clear that the housing collapse was due in large measure to “the ideology of deregulation.”
“We are in the most significant economic troubles since at least 1998,” Mr. Frank said. “And the single biggest cause was a failure for regulation to keep up with innovation. And it’s, of course, had international consequences as well.”
Mr. Frank said he had often agreed with Mr. Bernanke’s predecessor, Alan Greenspan, whom he credited with patient and prudent leadership on monetary policy. “But in another area I think he erred,” Mr. Frank said. “His view that regulation was almost never required.”
The committee’s ranking Republican, Representative Spencer Bachus of Alabama, was less pessimistic than Mr. Frank. He said he was confident that the Fed’s careful monitoring “combined with responses from the private sector and the natural operation of the business cycle” would steady the economy sooner rather than later.
But he went on, “One lesson we’ve learned from the subprime contagion is just how highly interconnected our financial markets are.” Mr. Bachus cautioned against “overregulation” caused by different agencies monitoring different sectors of the economy.
“But there may be gaps in the regulation, and I wonder if that is in fact the case,” he said. “There may be areas where the regulation needs to be strengthened or regulation needs to be coordinated better between different regulators, both state and federal.”
Mr. Bernanke tried to make it clear that the Fed is watching inflation closely. He acknowledged that inflation may climb slightly more rapidly than the policy makers projected in January. Fed officials then estimated that consumer prices would climb to a range of 2.1 percent to 2.4 percent in 2008.
“Any tendency of inflation expectations to become unmoored or for the Federal Reserve’s inflation-fighting credibility to be eroded would greatly complicate the task of sustaining price stability and could reduce the flexibility of the F.O.M.C.,” Mr. Bernanke warned Wednesday, referring to the Federal Open Markets Committee, which sets interest rates.
“Accordingly, in the months ahead, the Federal Reserve will continue to closely monitor inflation and inflation expectations.”
But even as he acknowledged the growing dilemma between fighting the downturn and fighting inflation, Mr. Bernanke appeared to put more weight on promoting growth and made it clear he has not shut the door on more reductions in interest rates.
Noting that monetary policy “works with a lag,” the Fed chairman said, “it is important to recognize that downside risks to growth remain.”
More important, he repeated the Fed’s recent promises to “act in a timely manner as needed to support growth and provide adequate insurance to downside risks.”
David Stout contributed reporting.
Foreclosure activity is still growing in much of the country, but in Hawaii the rate is still one of the lowest in the nation.
Hawaii had 123 foreclosure filings in January, a 5 percent decrease from the previous month but an increase of 24 percent over January 2007.
Hawaii ranks 42 in the country for its foreclosure rate of one filing for every 0.02 households, according to the latest survey by California-based real estate research firm RealtyTrac.
Nevada again had the nation's highest foreclosure rate for the month, with one filing for every 0.5 households. The state had 6,087 filings.
California had 57,158 foreclosure filings in January, up 7 percent from the previous month and up 120 percent from January 2007. The state had a foreclosure rate of one filing for every 0.4 households.
The national foreclosure rate was up 8 percent over December and up nearly 57 percent from January 2007. There were 233,001 foreclosure filings for the month.
RISMEDIA, Dec. 17, 2007-Although much of the housing market is in a slump, this is still a good time for most to buy a home.
Even though many economists are predicting further drops in home values in most areas, today is still an excellent time for most of us to buy a home. The direction of area home values won’t make much difference to homeowners who will both buy and sell in the same area, and other important factors very much favor buying a home now.
Most move up buyers buy their next home in the same area. Whether overall home values in that area are going down, up, or holding their own, other homes in the area will be similarly impacted. Current local home values and any future changes in those home values, whether negative or positive, will therefore have the same effect on a home they might buy as they will have on their current home when they sell it. For that reason the direction of housing values in any given area is of small consequence relative to other factors for those homeowners, who should not let declining values get in the way of buying their next home.
If you are a prospective first time buyer in one of the few appreciating markets, buying sooner rather than later certainly makes sense. Similarly, if you live in an area where home values are falling and plan to relocate to another area where prices are rising, that is a good reason to buy and sell (or sell and buy) as soon as you can, before the gap widens further.
Holding off on a home purchase due to current market conditions may make sense in some cases only for a much smaller group - prospective first time buyers who live in an area where further home price declines are likely. The same is true for those living in the relatively few areas where homes are appreciating and who plan to relocate to other parts of the country where home prices are still falling. Unfortunately some homeowners now owe more money on their mortgage than their home is worth because of dropping home values. They may be unable to afford to sell at this time regardless of local market conditions unless they have sufficient savings to make up the difference.
There are several reasons that today is a particularly good time to buy a home for most of us. The selection is as great as it will ever be, mortgage rates are still relatively low by historical standards, and costs of any desired remodeling/upgrades are a lot less because of the downturn in new home construction and the resulting glut of building supplies.
With inventories of homes for sale at all time highs in many places, there’s a much greater chance that you’ll be able to find a home that’s ideally suited for your needs. That’s a very big plus because homeowners spend an average of nearly a decade in their home before they sell it. The shortage of inventory and high home prices that existed up until 2005 forced many buyers to make many compromises on home features at that time. No doubt many of them wish that some of the nicer homes for sale in their neighborhood today had been available at that time. Today’s home buyers will have to make far fewer, if any compromises, and many will be able to pay less for a home that’s much better suited to their needs.
If today’s home buyers decide to make some upgrades and improvements to their next home they can usually do it for substantially less than it would have cost several years ago. The rate of new home construction has dropped precipitously, and prices of many building materials have dropped substantially as a result. Prices for oriented strand board, which is used for exterior wall sheathing, roof sheathing and subfloors, is down 40% from late 2005, according to the National Association of Home Builders. Lumber used for framing floor and roof joints retreated 24%, in cost according to NAHB. Drywall prices are down 35% from late last year, according to United States Gypsum Company.
Construction labor costs are down as well, as many home builders have decided to become remodeling contractors until the market for new homes improves. The remodeling market has also slowed down somewhat. With many home builders recently reinventing themselves as remodeling contractors, price competition in that market is very intense today. Only a few years ago you were lucky if half the contractors returned your call, and a few actually showed up and subsequently gave you a proposal. That has changed dramatically.
“When we remodeled our kitchen and bathrooms several months ago every contractor we called showed up, and their bids were very competitive,” said American Homeowners Foundation President Bruce Hahn. “Many of them were ready to start immediately, and none of them balked when we told them we wanted them to sign a comprehensive contract specifying all of the details of the project,” he added. (Note: Judging from the continuing number of complaints regarding remodeling contractors, the competition has yet to drive incompetent and/or dishonest contractors out of the business.
Lastly, mortgage rates are still competitive by historical standards. Although lenders have become more particular about who they will lend to, and the gap between mortgage interest rates for those with excellent credit and those with marginal credit histories has widened, mortgages with 30 year fixed rates are still affordable for a majority of home buyers. If you are looking down the reset barrel of an adjustable rate mortgage on your current home, you will also be able to resolve that problem and avoid the higher mortgage reset interest rate with a fixed rate loan on your next home.
The bottom line: Trying to employ market timing in real estate entails many of the same risks as attempting market timing in the stock market, as many real estate flippers who flocked to the market in the middle of this decade learned the hard way. Despite all the current doom and gloom in the housing market, it’s still a great time for most of us to buy a home!
RISMEDIA, Jan. 25, 2008-An unexpected problem on the day of your real estate closing can turn the experience from a dream into a nightmare. With a little research and advanced preparation you can ensure a smooth closing process before you are handed the keys to your new abode. Here are some frequent closing-day mishaps, and advice on how to prevent these fiascos from ruining your home buying experience:
Trouble during the final walk-through
About 24 hours before closing, you will have an opportunity to walk through the home and make sure everything is in order. Occasionally you’ll get an unexpected surprise, such as a missing appliance or a hole previously hidden by a large painting. You can head off some of these problems by ensuring that any items to be left behind are specified clearly in the purchase agreement. Hiring a home inspector before finalizing the offer may also allow you to spot hidden damage to the house.
Closing costs are more than expected
Before closing, you will receive a settlement statement that outlines the final costs associated with your mortgage. It’s important to read this over carefully and compare these costs to those listed in the Good Faith Estimate or (GFE) that you initially received from your lender. Usually, the closing costs should not be significantly different from those initially quoted, but sometimes there are valid reasons why they may be a little higher. You need to pay these costs with guaranteed funds, so plan to go to the bank before the closing meeting and get a cashier’s check (or certified check). Also, don’t forget to bring your personal checkbook and driver’s license. You’ll likely need both during the closing so make sure you are prepared.
The seller still has belongings at the home
As hard as it may be to believe, some buyers arrive at their new home only to find that the previous owners have not yet moved out. You may want to add a clause in your purchase agreement that explicitly states the seller is responsible for any expenses you incur if the home is not vacated.
It’s important to be both financially and mentally prepared for your closing. By carefully thinking through all the steps involved you can likely avoid any potential problems and have a smooth closing
RISMEDIA, Feb. 18, 2008-As we enter tax season, it’s a great time to review the tax advantages associated with owning your own home. Of course, consulting your tax advisor is always the key to ensuring that you receive the most updated, accurate information and that your write-offs are right-on, but here is a brief overview of what are generally considered some of the typical deductions that might help maximize the returns on your investment, as well as some new developments that took effect in 2007.
1. Mortgage Interest Payments. A major tax advantage for homeowners, mortgage interest is usually deductible on a primary residence, as well as on a second home meeting certain requirements. Every January your home loan lender should provide you with a Form 1098, which outlines the amount of interest you paid for the year.
“For example, if a homeowner’s monthly mortgage payment is approximately $2,000, he or she may pay only a few hundred dollars to the principal per month, particularly if the homeowner has only been paying on the mortgage for a few years,” says Charlie Rogers, managing director of Countrywide. Of course, the balance of the payment is applied toward the interest. In just one year, that can add up to thousands of dollars in deductions.
2. Mortgage Insurance Payments. Your 2007 mortgage insurance payments may be tax-deductible, since Congress extended the mortgage insurance deduction for an additional three years. The mortgage insurance deduction will help certain low- and moderate-income homeowners, particularly first-time home buyers. While there are certain restrictions, the deduction could save taxpayers who itemize as much as $300 to $350 in federal taxes.
3. Points. Also known as loan discount or mortgage origination fees, points are often paid to the lender upon purchasing a home. This cost-even when paid on your behalf by the seller-may be tax deductible as a prepayment of interest if certain basic requirements are met. “If certain requirements are met, points can be deducted in the year that they are paid; however, in some situations, they are deducted over the life of the loan,” says Rogers. “By having your tax advisor review your closing statement, you can potentially capitalize on tax benefits available from paying points on your new mortgage.”
4. Property Taxes. These annual taxes are based on the assessed value of your property and may be a considerable deduction each year. If you use an impound account through your lender, these costs are often shown on your mortgage interest statement. The closing statement on your new loan may also include real estate taxes, which could be deductible as well.
5. Home Improvements. It is important to keep receipts for your home improvement expenditures. Although these costs cannot be deducted while you own your home, they could help lower your taxes when you sell it. In some states, the sales tax paid on building materials may be considered as a deduction.
6. Home Equity. Leveraging the equity in your home to set up a home equity loan could mean tax benefits that would not be available through other credit sources, such as credit cards or personal loans, because the interest paid on a home equity loan is often tax deductible.
The bottom line. “Owning your own home yields a host of advantages-everything from a sense of pride and freedom, to long-term investment opportunity,” says Rogers. “And at tax time every year, it can really bring home the savings.”
INTEREST % % LENDER TERM/TYPE RATE POINTS *APR
Acceptance Capital Mtg 15-YR Fixed 4.750 2.000 5.210 393-8226 30-YR Fixed 5.250 2.000 5.520 1-YR ARM 4.625 2.000 7.140
Advantage Mortgage 15-YR Fixed 4.625 1.750 4.998 545-1234 30-YR Fixed 5.250 1.875 5.487 1-YR ARM 4.000 2.000 5.245
Allied Home Mtg Capital 15-YR Fixed 4.875 1.000 5.168 230-8691 30-YR Fixed 5.375 1.000 5.550 1-YR ARM 4.250 0.000 5.213
Aloha Aina Mortgage 15-YR Fixed 4.750 2.000 5.135 791-2234 30-YR Fixed 5.375 2.000 5.606 1-YR ARM 4.375 0.000 5.289
Aloha Home Loans 15-YR Fixed 4.500 2.577 5.065 593-0090 30-YR Fixed 5.000 3.286 5.400 1-YR ARM 4.125 2.500 5.438
American Home Finance 15-YR Fixed 5.250 0.000 5.310 534-1945 30-YR Fixed 5.500 0.000 5.610 1-YR ARM 5.500 0.000 7.500
American Savings Bank 15-YR Fixed 4.625 1.875 4.984 593-1226 30-YR Fixed 5.375 1.625 5.571 1-YR ARM 4.125 1.750 5.350
Applied Wholesale Mtg. 15-YR Fixed 5.000 0.000 5.060 792-3500 30-YR Fixed 5.625 0.125 5.673 1-YR ARM 5.000 0.000 5.226
Ascent Home Loans 15-YR Fixed 4.750 2.125 5.155 447-9629 30-YR Fixed 5.250 2.625 5.526 1-YR ARM 5.375 2.250 5.847
Bank of Hawaii 15-YR Fixed 4.625 2.000 4.930 693-1444 30-YR Fixed 5.375 1.750 5.534 1-YR ARM 4.000 2.000 5.322
Carteret Mortgage 15-YR Fixed 5.250 0.000 5.317 375-8422 30-YR Fixed 5.750 0.000 5.812 1-YR ARM 5.375 0.500 7.130
Central Pacific HomeLoans 15-YR Fixed 4.625 2.125 5.044 356-4000 30-YR Fixed 5.250 2.250 5.515 1-YR ARM 4.875 1.750 7.877
Countrywide Home Loans 15-YR Fixed 4.875 1.750 5.139 275-8910 30-YR Fixed 5.625 1.625 5.897 1-YR ARM 4.375 1.387 5.744
CUSO of Hawaii 15-YR Fixed 4.500 2.250 4.890 539-0193 30-YR Fixed 5.250 2.250 5.487 1-YR ARM 3.875 1.000 5.016
Finance Factors 15-YR Fixed 4.875 1.500 5.176 522-2000 30-YR Fixed 5.375 2.000 5.601 1-YR ARM 4.750 1.625 5.164
First Hawaiian Bank 15-YR Fixed 4.750 2.000 5.110 643-4663 30-YR Fixed 5.375 2.000 5.590 1-YR ARM 4.000 2.000 5.120
First Horizon Home Loans 15-YR Fixed 4.750 1.500 5.025 599-2870 30-YR Fixed 5.250 2.125 5.471 1-YR ARM 5.125 1.875 5.207
Hawaii National Bank 15-YR Fixed 4.620 1.750 4.891 528-7848 30-YR Fixed 5.375 1.750 5.534 1-YR ARM 3.875 1.750 4.829
Home Loans of Hawaii 15-YR Fixed 4.500 1.875 4.982 841-4847 30-YR Fixed 4.875 2.625 5.247 1-YR ARM 4.375 2.750 5.496
HomeStreet Bank 15-YR Fixed 4.750 1.750 5.161 596-0343 30-YR Fixed 5.375 1.875 5.635 1-YR ARM 4.125 1.750 6.223
House of Finance 15-YR Fixed 4.625 2.000 5.081 847-8493 30-YR Fixed 5.375 2.000 5.653 1-YR ARM 4.500 2.000 5.648
Imperial Mortgage 15-YR Fixed 4.500 2.250 4.920 263-6363 30-YR Fixed 5.250 1.875 5.751 1-YR ARM 4.125 2.000 5.343
IndyMac Bank 15-YR Fixed 4.750 2.250 5.189 531-2000 30-YR Fixed 5.375 1.900 5.608 1-YR ARM 3.875 2.000 5.310
Innovative Island Mtg 15-YR Fixed 4.625 2.000 5.034 228-6610 30-YR Fixed 5.250 2.000 5.494 1-YR ARM 5.250 0.000 7.750
Island Pacific Funding 15-YR Fixed 4.875 0.375 5.022 689-3007 30-YR Fixed 5.500 0.250 5.580 1-YR ARM 4.750 0.250 5.439
Lau, Donald Mortgage 15-YR Fixed 4.500 2.000 4.915 732-8893 30-YR Fixed 5.250 2.000 5.502 1-YR ARM 4.250 2.000 5.232
Legacy Mortgage 15-YR Fixed 4.500 1.375 4.815 545-2212 30-YR Fixed 4.750 2.875 5.069 1-YR ARM 4.125 1.250 6.120
Mid-Pacific Mortgage 15-YR Fixed 5.125 0.000 5.165 587-7785 30-YR Fixed 5.750 0.000 5.774 1-YR ARM 4.250 2.000 5.361
Miranda, Violet Mortgage 15-YR Fixed 4.500 2.000 4.931 488-7749 30-YR Fixed 5.250 1.625 5.512 1-YR ARM 5.125 0.500 5.318
Mortgage Depot 15-YR Fixed 4.500 1.827 4.881 737-2899 30-YR Fixed 5.000 2.125 5.255 1-YR ARM 4.375 1.750 5.284
Mortgage Express 15-YR Fixed 5.125 0.000 5.275 532-9555 30-YR Fixed 5.750 0.000 5.845 1-YR ARM 4.625 1.000 5.305
Mortgage Lenders 15-YR Fixed 4.750 0.000 4.839 483-5626 30-YR Fixed 5.375 0.000 5.439 1-YR ARM 4.750 0.000 5.752
Navy Federal Credit Union 15-YR Fixed 4.625 1.250 4.814 254-7889 30-YR Fixed 5.250 1.250 5.363 1-YR ARM 4.000 1.125 5.427
New Horizons Financial 15-YR Fixed 4.375 2.250 5.096 483-7400 30-YR Fixed 4.875 2.875 5.398 1-YR ARM 5.000 2.000 7.986
NorthStar Alliance 15-YR Fixed 5.500 0.000 5.733 536-3656 30-YR Fixed 5.750 0.000 5.889 1-YR ARM 4.125 0.000 7.710
One Stop Financial Svcs 15-YR Fixed 4.500 2.590 5.134 591-0032 30-YR Fixed 5.000 2.747 5.389 1-YR ARM 4.125 2.000 5.880
Phoenix Financial 15-YR Fixed 4.750 1.750 5.090 952-9822 30-YR Fixed 5.375 1.750 5.500 1-YR ARM 4.000 2.000 5.120
Pyramid Mortgage 15-YR Fixed 5.125 0.000 5.204 527-7249 30-YR Fixed 5.750 0.000 5.832 1-YR ARM 4.000 0.000 5.295
Spectrum Mortgage 15-YR Fixed 4.750 2.000 4.796 522-5522 30-YR Fixed 5.375 2.000 5.635 1-YR ARM 4.000 2.000 6.028
Territorial Savings 15-YR Fixed 4.750 2.250 5.159 946-1400 30-YR Fixed 5.250 2.250 5.493 1-YR ARM 4.875 2.000 4.975
Wells Fargo Home Mortgage 15-YR Fixed 4.625 2.000 5.060 946-8832 30-YR Fixed 5.250 1.875 5.490 1-YR ARM 5.125 2.000 5.290
The median sale price for condominiums on O'ahu was $324,000 last month, up 1.3 percent from $320,000 a year earlier. There were 324 sales, down 22.5 percent from 418 in the same period.
Jeff Orig, Abe Lee Realty
RESALE PRICES ON O‘AHU
Median price, single-family home,
January 2007
$600,000
January 2008
Median sale price, condominium,
$320,000
$324,000
Paul Brewbaker
The median price was weak — but didn't fall — for previously owned single-family homes sold on O'ahu last month, as the market continued to exhibit pricing stability despite fewer sales.
The Honolulu Board of Realtors said single-family homes sold in January for a median $600,000, unchanged from the same month last year despite a 13.3 percent drop in the number of sales to 228.
No change in January's median sale price from a year ago follows two years in which the pace of price appreciation had slowed to single digits after four years of double-digit growth.
The slowdown has been a fairly gentle shift in the local residential real estate market that contrasts with many Mainland housing markets, where prices have cratered.
"We continue to be fortunate that sales prices on O'ahu are being maintained at 2007 levels," said Dana Chandler, broker-in-charge at Hawaiian Island Homes Ltd. and president of the Honolulu Board of Realtors trade association.
PRICE DECLINE ON WAY?
Still, January's median price was the lowest in the last 12 months, which leads some observers to believe the market could be in store for a mild median price decline this year.
Moody's www.Economy.com forecasts that the local median home price will slide to $594,353 in the fourth quarter of this year, which would be a 5 percent decline from the $625,300 median price in last year's fourth quarter.
Moody's also predicts some recovery of O'ahu's median home price to $619,666 by the 2009 fourth quarter.
Local economists and some other industry observers generally believe O'ahu home prices will stay more or less flat over the next couple of years and not drop significantly unless there's a shock to the state economy that reverses job and income growth, creates a population exodus or boosts interest rates dramatically.
Helping sustain home prices is a state economy that continues to grow, albeit at a slower pace, as well as low unemployment, rising personal income, limited new-home construction and demand from out-of-state retirees and investors.
"Barring some reason for major population loss on O'ahu, home prices are forecast to remain comparatively stable, with only small declines, if any," said Paul Brewbaker, chief economist at Bank of Hawaii.
The softness in O'ahu's housing market has prompted many sellers to adjust their pricing, expectations and marketing strategies.
Local university professors David and Linda Bangert have been trying to sell their four-bedroom, 2 1/2-bathroom waterfront townhouse on Enchanted Lake since August.
The couple initially listed their home at a price comparable to the last previous waterfront property sale in the area, and later reduced the price by about $70,000 to $718,000 while also offering to pay the property's monthly maintenance fee for a year after any sale.
After six months of no offers, the Bangerts last month took an unusual step of offering $10,000 to their students or anyone else who brings them a buyer willing to pay their asking price. Still, they have yet to receive an offer.
INVENTORY UP
According to the Honolulu Board of Realtors, homes sold in January spent a median 61 days on the market before selling, which was close to the 60 days it took in January 2007 and was the longest period since 65 days in March.
Home inventory was up by just more than 1,000 homes to 1,876 last month compared with a year earlier, but was below the recent peak of 1,973 in October.
In O'ahu's condominium market, the median sale price was $324,000 last month, up 1.3 percent from $320,000 a year earlier.
There were 324 sales, down 22.5 percent from 418 in the same comparable period.
Condos sold in January spent a median 42 days on the market before selling, which was down from 55 days a year earlier and 47 days in December.
There were 2,349 condos listed for sale last month, which was up a little from 2,288 a year earlier but below the recent high of 2,444 in October.
The Honolulu Board of Realtor data does not include sales of new homes, and counts sales completed last month that typically correspond to sales contracts signed one to three months earlier.
Mortgage interest rates for the week ended January 24 continued to fall and long term rates hit their lowest levels since the spring of 2004 according to the results of Freddie Mac's Primary Mortgage Market Survey for the week ended January 24, 2008.
The survey showed that the 30-year fixed-rate mortgage (FRM) had an average interest rate of 5.48 percent with 0.4 point during the week compared to an average of 5.69 percent with 0.5 point a week earlier. One year ago the 30-year FRM stood at 6.25 percent. The January 24 number was the lowest the 30-year FRM has been since the week ended March 24, 2004 when it averaged 5.40 percent.
The 15-year FRM fell from 5.21 percent during the week ended January 17 to an average of 4.95 percent, the lowest mark since the week ended April 1, 2004 when it averaged 4.84 percent. Fees and points were unchanged at 0.4. During the same week in 2007 the 15-year averaged 5.98 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMS) dropped 27 basis points to 5.13 percent from the previous week. Fees and points were also down 0.2 to 0.4 point. The five-year hybrid was last seen at these levels during the week ended June 30, 2005 when it averaged 5.06 percent, although Freddie Mac only began reporting statistics for that product in January of 2005. At the end of January last year the 5-year averaged 6.0 percent.
One-year Treasury-indexed ARMS also fell 27 basis points to an average of 4.99 percent with points unchanged at 0.6. This is the lowest the one-year has been since October 27, 2005 when it averaged 4.91 percent. One year ago this product was at 5.49 percent.
Frank Nothaft, Freddie Mac vice president and chief economist issued a statement accompanying the survey results which was a bit downbeat. "Economic news released last week," he said, "confirmed the weak condition of the housing market. Housing starts fell further in December to 1.006 million units, the slowest pace since May 1991. For the year as a whole, housing starts dropped nearly 25 percent, from 2006's level. This was the largest annual decline since 1980. New permits issued also fell to the lowest level since March 1993.
"When the Federal Reserve cut the target federal funds rate by three quarters of a percentage point, the action was extraordinary in both the magnitude and the timing of the rate cut: it is the largest cut since October 1984, and also the first time in more than six years that the Fed took such action outside of a scheduled Federal Open Market Committee meeting. The last time the Fed decided to ease the target federal funds rate in an unscheduled meeting was immediately after September 11, 2001. As a result, mortgage rates continued trending down for the fourth consecutive week across loan products."
The Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association (MBA) for the week ended January 25 strongly and surprisingly contradicted Freddie Mac's findings. That survey found all three mortgage products it tracks had rate increases for the week with the one-year ARM at a higher average rate than either of the fixed-rate products for the second week in a row.
The 30-year FRM increased to 5.60 percent from 5.49 percent with points, including the origination fee, dipping to 1.06 from 1.07.
The average contract interest rate for 15-year fixed-rate mortgages increased to 5.04 percent from 4.96 percent, with points decreasing to 1.12 from 1.22.
The one-year ARM averaged 5.70 percent compared to 5.51 percent the previous week with points decreasing to 0.97 from 1.01.
Mortgage application volume increased 7.5 percent on a seasonally adjusted basis from a week earlier and 10.5 percent on an unadjusted basis. The volume was 70.7 percent higher when compared with the same week one year earlier and apparently much of the increase was due to a surge in refinancing. Applications for the purpose of refinancing represented 73.0 percent of all applications compared to 66.0 percent one week earlier. Adjustable rate mortgages on the other hand dropped to an 8.6 market share from 9.3 percent the previous week.
Make sure to visit our new rates page with historical charting options that include 3 and 6 months - 1, 3, 10, and 36 years. Also make sure to read our daily rate blog for analysis of the day's bond market and rate movements.
Date: Wed, 30 Jan 2008 08:27:18 EST
