Mortgage Applications, Interest Rates Rise

The number of people taking out home loans and refinancing existing ones rose again in the week ended July 17, even as interest rates climbed, according to a weekly survey of the Mortgage Bankers Association.

The MBA’s Market Composite Index, which measures loan application volume, rose 2.8 percent, week-over-week, on a seasonally adjusted basis.

The Refinance Index was up 4 percent from the previous week.

The adjustable-rate mortgage (ARM) share of activity decreased to 4.8 percent from 5 percent of total applications from the previous week.

The average interest rate for 30-year, fixed-rate mortgages increased to 5.31 percent from 5.05 percent, with points increasing to 1.18 from 1.12.

The average interest rate for 15-year, fixed-rate mortgages increased to 4.8 percent from 4.59 percent, with points decreasing to 1.03 from 1.07.

The average interest rate for one-year ARMs increased to 6.5 percent from 6.47 percent, with points remaining unchanged at 0.11.

Florida Property Tax Rates Going Up

Most of Florida’s 67 school boards are expected to approve property tax increases under a local option included in the state budget.

Wayne Blanton, executive director of the Florida School Boards Association, says the boards aren’t happy about it but have little choice because of their dire financial straits.

Blanton says some boards already have passed the increases and others are expected to take votes during the next two weeks.

Each district is allowed to raise property taxes by $25 per $100,000 of taxable value for the next two years.

Voter approval, though, is required to retain the increase any longer than that.

Source: The Associated Press

Average U.S. Home Prices Rise in May

Average U.S. home prices have started to rise, according to a monthly report from the Federal Housing Finance Agency (FHFA).

FHFA says U.S. home prices rose 0.9 percent from April to May. In the Southeast, which includes Florida, the average price rose 1.4 percent.

On a year-over-year comparison, the FHFA report says average home prices are still down 5.6 percent and are 10.7 percent blow their April 2007 peak.

"Revisions and volatility of the monthly index make it hard to draw any conclusions, but the seasonally-adjusted Home Price Index for the first five months of this year is up 0.3 percent or 0.7 percent on an annualized basis," FHFA Director James Lockhart said in a statement.

FHFA's monthly and quarterly Home Price Index is based on conforming mortgages that are purchased or backed by Freddie Mac and Fannie Mae.

Source: Federal Housing Finance Agency

Minimum Wage Increases Friday

The last of a three-phase increase in the federal minimum wage will go into effect on July 24, 2009. The base pay level of $7.25 an hour replaces Florida’s current minimum wage of $7.21 an hour.

While 4 cents may not seem like a lot to Florida workers, the hike is an 11 percent increase from the $6.55 an hour that was mandated by federal law.

The state’s minimum wage was raised to $7.21 in January from $6.79 in 2008.

The minimum wage applies to all employees who are eligible, and is different for employees who work off of tips.

Florida’s current rate for those in the latter category – $4.19 an hour plus tips – will increase to $4.23 on Friday.

State law requires the Florida Agency for Workforce Innovation to calculate a new minimum wage each year and publish it on Jan. 1.

Employees who are entitled to receive minimum wage, but are not paid the minimum wage, can sue their employers for violating Florida's minimum wage law.

Source: Jacksonville Business Journal

$8,000 Tax Credit For First-Time Homebuyers

Thinking about buying your first home - or haven't owned a home in three years? Right now, you may have 8,000 reasons to help make your dream a reality. The American Recovery and Reinvestment Act of 2009 provides for a First-Time Homebuyers Tax Credit of $8,000 maximum per qualified buyer. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

Here's what you need to know:

* The temporary credit is only available for homes purchased between Jan. 1, 2009 - Nov. 30, 2009.
* The credit is equal to 10 percent of the cost of the home, up to a maximum $8,000 credit.
* If you qualify for the credit, you can apply for downpayment assistance through the State of Florida or the Federal Housing Administration before you close on the purchase of your home, then repay the borrowed amount when you get your tax credit.
* You have only until Nov. 30, 2009 to find your home, secure financing, and close to receive the $8,000 tax credit/downpayment assistance.
* If you claim the tax credit on your federal tax return and the credit is more than the taxes you owe, you get a refund check for the difference.
* For purposes of the tax credit, a first-time buyer means an individual who has not owned a home in the past three years (includes anything to be used as a principal single-family residence, including condos and townhouses).
* There are income guidelines: Individuals with an adjusted gross income up to $75,000 (or $150,000 if filing jointly) are eligible for the full credit. The credit is phased down if you earn more and isn't available if you make more than $95,000 (or $170,000 if filing jointly).
* The tax credit doesn't have to be repaid if you live in your home for at least three years.

For specific tax or legal advice, consult your attorney or a qualified tax professional.