Housing industry observers are hopeful that the recent decline in mortgage rates will lead to a recovery in the market.

Freddie Mac reports that interest on 30-year, fixed loans fell for the fourth straight week, landing at their lowest level in nearly four years.

Economists say mortgage rates averaged 5.48 percent for the week ended Jan. 24 -- down from 5.69 percent a week ago -- because of the latest reports about the economy and because the Federal Reserve made its biggest cut in 20 years to a key interest rate.

Freddie Mac also reports that rates on 15-year mortgages declined to 4.95 percent from 5.21 percent, rates on five-year adjustable-rate mortgages dropped to 5.13 percent from 5.4 percent, and rates on one-year ARMs slipped to 4.99 percent from 5.26 percent.

Source: Baltimore Sun (01/25/08)

 Long-term mortgage rates remain in a downward pattern, registering the third consecutive week of decline.

According to Freddie Mac's numbers, average interest on 30-year fixed loans settled the week at 5.69 percent—the lowest level since July 2005. Other rate declines include:

• 15-year fixed mortgages slipped to 5.21 percent from 5.43 percent a week ago.
• 5-year adjustable-rate average retreated to 5.4 percent from 5.63 percent.
• 1-year ARMs fell to 5.26 percent from 5.37 percent..

Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces—in which case they expect rates to decline further.

Source: Baltimore Sun (01/18/08)

 Forecasters who are looking ahead to 2008 see greener homes, high-tech comfort, and still-flat market.

Here are three key trends in the housing market that they observe:

• The color of the year is green. Surveys indicate that people will pay up to $5,000 for "greening" a home, says David Pratt, a principal in the Lorax Partnership consulting firm and president of the Baltimore chapter of the U.S. Green Building Council. "Green is in because there is a higher level of awareness now of the issues surrounding the environment and, specifically, global warming."

• High-tech comfort is in. Demand is on the upswing for amenities such as massaging bubble jets in tubs, mirrors with built-in, vanishing television screens,; super-quiet garbage disposals that are heavy-duty enough to crunch most dinner waste, dual-temperature beverage centers (warmer for wine, cooler for soda), and gas fireplaces with battery backups so they generate heat when the power goes out. "People are nesting and putting nice stuff in their houses," says Brett Schoolnick, president of the Baywood Design & Build Group in Columbia, Md.

• Home prices will continue to fall. "The buyer has become disengaged from this market. They think prices will fall. So they wait to purchase. Then that puts downward pressure on the market," says Anirban Basu, chief executive of the Sage Policy Group, "My sense is that the bottom of the housing market is likely to arrive sometime after 2008."

Source; The Baltimore Sun, Andrea F. Siegel (01/06/08)

 The American Society of Home Inspectors (ASHI) has ranked the home inspection regulation laws in the United States, weighing them on 13 criteria, including testing requirements, standards of practice, codes of ethics, and enforceability.

In the last 10 years, 28 states have enacted some form of home inspection regulation.

In the study, Louisiana has ranked first since it passed a strong inspection law after Hurricane Katrina.

Meanwhile, California has been ranked last for two years because several of its provisions — including its "prohibited acts" provision, which outlines an inspector's code of ethics — cannot be enforced. North Dakota and Georgia also rounded out the bottom spots for home inspection regulation laws, according to the study.

Here are the top 15 states with the strongest home inspection regulation laws:

1. Louisiana
2. New Jersey
3. Arizona
4. Texas
5. Massachusetts
6. Connecticut
7. North Carolina
8. Arkansas
9. Indiana
10. Rhode Island
11. West Virginia
12. South Dakota
13. Tennessee
14. Mississippi
15. Virginia

Source: American Society of Home Inspectors (01/03/07)

 Good home maintenance is key to creating and preserving a home’s value. Not to mention, it also impresses potential buyers.

Here are five basic steps that every home owner ought to take — before spending money on dream bathrooms or gourmet kitchens.

1. Safety. Make sure smoke detectors and carbon monoxide detectors are installed and in good working order. Check fuel-burning appliances to make sure they are properly vented and no gas connections leak. Make sure the electrical system is adequate. Flickering lights and popping breakers are the sign of a problem. Anchor handrails and grab bars adequately.

2. Preventive maintenance. Repair any leaks in the roof, seal gaps in the siding, paint bare wood, replace damaged decking, patch cracks in concrete, and caulk around tubs and showers.

3. Conserve energy. Install a programmable thermostat, weatherstrip doors and windows, fix leaking faucets, upgrade insulation, and replace leaky windows.

4. Go green. Consider environmentally friendly materials for windows, doors, siding, decking, fencing, roofing, flooring, and insulation.

5. Improve comfort. Get rid of clutter, open up spaces, update window treatments to allow in more light, and organize closets and storage.

Source: The Associated Press, James and Morris Carey (12/29/07)