Lake Tahoe Real Estate - Single Family - Al Tahoe
Lake
Tahoe Real Estate - Condo/Townhouse - Al Tahoe
Lake
Tahoe Real Estate - Multi Family - Al Tahoe
Lake
Tahoe Real Estate - Land - Al Tahoe
Lake
Tahoe Real Estate - Commercial - Al Tahoe
REVERSE MORTGAGES CONTINUE DRAMATIC GROWTH
The number of reverse mortgages endorsed by the Federal
Housing Administration (FHA) during the fiscal year 2004
was 37,829, more than double the fiscal year 2003 production
of 18,097. Reverse mortgages represented 3.8 percent of
FHA's entire single-family volume during 2004. With 10,045
endorsements, California was the state with the greatest
number of reverse mortgages, followed by Florida and Texas.
FHA's Home Equity Conversion Mortgage (HECM) program, created
by Congress in 1987, allows homeowners over the age of 62
to tap into the equity in their homes without having to
repay the loan until they move out.
FED RAISES TARGET FOR FEDERAL FUNDS RATE TO 2 PERCENT
The Federal Reserve's Open Market Committee raised the target
for the federal funds rate by 25 basis points to 2 percent
last week. This is the fourth increase in five months, starting
with a 25 basis point increase in June. The federal funds
target rate is the interest rate charged by banks when they
borrow funds "overnight" from each other. "Output appears
to be growing at a moderate pace despite the rise in energy
prices, and labor market conditions have improved. Inflation
and longer-term inflation expectations remain well contained,"
the Fed said in a prepared statement. While the federal
funds rate has no direct impact on other rates, such as
those for mortgages, it can alter them indirectly. The Mortgage
Bankers Association is predicting mortgage interest rates
will reach about 5.9 percent by the end of 2004.
REAL ESTATE CONSTRUCTION REMAINS STRONG IN CALIFORNIA
California home production continued to boom in September
as both single-family and multifamily construction showed
strong, year-over-year increases, the California Building
Industry Association recently reported. A total of 17,118
housing permits were issued in September, a 6.7 percent
decline from the previous month but up 15.6 percent from
September 2003. Single-family construction was down 7 percent
from August but up 9.7 percent from last year, with 12,450
permits issued. Multifamily units totaled 4,668 in September,
down 5.8 percent from August but up 34.8 percent from September
2003. For the first nine months of 2004, total housing starts
in California, as measured by permits issued, totaled 156,788,
an increase of 7.4 percent from last year. Sixteen of the
state's 28 metropolitan areas recorded an increase in the
total number of housing permits issued, and 16 of the 28
areas posted gains in single-family permits as compared
with 2003.
Information provided by - C.A.R. Newsline is published by
the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association
representing more than 135,000 REALTORS® statewide
