Yikes. Mortgage Applications Fall Sharply

Mortgage applications declined 27.1 percent last week compared to the previous week, on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.

The unadjusted purchase index decreased 27 percent compared with the previous week and was 24.1 percent lower than the same week a year ago. This is the lowest level of applications for home purchases observed in the survey since May 1997.

“The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni, vice president of research and economics for the MBA.

Mortgage rates are at bargain levels: 

• 30-year fixed-rate mortgages decreased to 4.83 percent from 4.96 percent.
• 15-year fixed-rate mortgages decreased to 4.19 percent from 4.32 percent.
• 1-year ARMs decreased to 6.81 percent from 6.86 percent.

Source: Mortgage Bankers Association (05/19/2010)

Florida Bound Oil (Courtesy of BP)

Fla. to BP: Pay for ad saying we’re OK

ST. PETERSBURG, Fla. – May 10, 2010 – Florida CFO Alex Sink met with BP Executive Keith Seilhan at the Deepwater Horizon Incident Command Center in St. Petersburg, and asked for BP's commitment to help the state and its small businesses recover from economic losses by funding an advertising campaign to let the world know that Florida and its beaches are oil-free, open for business and as beautiful as ever.

Our businesses and our state cannot afford for our number one industry to be impacted by misinformation, Sink told BP. We must act quickly to preserve the most economically important months of the tourist season, especially for our Gulf Coast counties.

The state is already attempting to show potential visitors that the oil slick has not impacted tourist sites. Through www.VISITFLORIDA.com, vacationers can watch live Twitter feeds and read up-to-the-minute information on the status of any city or region in Florida, allowing them to see first-hand whether or not an area is currently affected. VISIT FLORIDA is working closely with DEP and other state agencies to ensure that Floridians and visitors are kept informed of any potential impacts through real-time updates.

Sink asked BP to dedicate an executive level representative to Florida, with that exec focused on the mounting costs to Florida businesses from interruptions caused by oil spill concerns. According to Sink, the Florida Consumer Services Division has already heard from Panhandle businesses facing business interruptions from the oil spill. During her meeting with Seilhan, Sink also emphasized the need to expedite the claims process for Florida's small businesses.

As another way to offset potential losses, BP executives were asked to recruit Florida residents to do any cleanup work and to buy supplies from the state's businesses.

© 2010 Florida Realtors®

Tax credit has expired for most but still available for Military

WASHINGTON – April 28, 2010 – Members of the military, foreign service and intelligence communities may have an additional year to buy a home and claim the homebuyer tax credit – up to $8,000 – that expires for most Americans on April 30.

To qualify for the extended tax credit deadline, service members must have served on official extended duty outside of the United States for 90 days or more at any time between Jan. 1, 2009, and April 30, 2010. If so, they have until April 30, 2011, to sign a sales contract, and until June 30, 2011, to settle and close on the home. The rule includes both the $8,000 first-time and $6,500 repeat homebuyer tax credit.

Under the law, "qualified service members" includes those serving in the uniformed services of the United States military, a member of the Foreign Service of the United States or an employee of the intelligence community.

The rule that requires buyers to repay the credit if they move out of their home within three years has also been waived for qualified service members if they must sell their home after receiving government orders for extended duty service.

© 2010 Florida Realtors®