Applications surge for home-purchase loans; tax credits expire April 30

With special tax credits set to expire at the end of April, applications for loans to purchase homes are at their highest level in five months, a mortgage trade group said Wednesday.
By: E. Scott Reckard: latimes.com
Releasing a survey for the week that ended Friday, the Mortgage Bankers Assn. said its seasonally adjusted purchase index rose 6.8% from a week earlier.

Michael Fratantoni, the group's vice president of research and economics, noted that a similar surge took place in October, when an $8,000 credit for first-time buyers was set to run out. As an economic stimulus measure, Congress extended the program through April 30 and added a $6,500 tax credit for some trade-up buyers.

By contrast, the mortgage group's index of home-loan refinancings fell by 1.3%.

Refinancings are sensitive to slight changes in mortgage interest rates, which have edged higher recently. One reason for that is the expiration at the end of March of a Federal Reserve program to buy $1.25 trillion in mortgage bonds backed by government-controlled Freddie Mac and Fannie Mae.

The refinance share of mortgage activity decreased to 63.2% of total applications from 65.0% the previous week, the Mortgage Bankers Assn. said. That's the lowest refinance share since the week ending Oct. 23.

In a separate survey that appears to bode well for housing, an association of mortgage insurers said borrowers with private mortgage insurance who caught up on their overdue home loans outnumbered people who fell behind. It was the first time that happened in almost four years, Bloomberg News reported.

Private mortgage insurance typically covers loans made with low down payments, which are at greater risk of default, especially when home prices fall. In a survey of these insured loans, the Mortgage Insurance Cos. of America said 68,675 went into delinquency in February while 80,758 were brought current.
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Weekend Do-it-Yourself Projects

Spring is here at last, and like many other homeowners you may be looking for simple do-it-yourself projects to spruce up your home or to increase its value.
By: Carla L. Davis: Realty Times
Keep reading to get ideas on a few weekend updates and upgrades that are sure to be worth your while.

We've all heard the term "curb appeal." And that's where our projects start today. Curb appeal is another way of saying your home's "first impression." It can affect your home's value and saleability.

One easily overlooked element can be your driveway, sidewalks, and steps. Dirt, oil, and grime can darken and stain your concrete, giving it the appearance of being unkempt. This is not a first impression that sits well with buyers. But have no fear, there is a simple solution.

Power washing your concrete can be a great way to renew its look. You can rent a machine at your local Home Depot or local home improvement store. You could also buy one for use over and over again. Pressure "power" washers start for as low as $100.

Another concrete solution can be using stain. This is as simple as choosing the color, buying a gallon, and then rolling it onto your surface.

To prep your concrete, sweep the surface and then power wash or scrub it with soap and water.

Another great curb appeal booster is your front door. Many homeowners make the design mistake of picking a color that matches the house and recedes into the background. For just a few dollars and an hours work, you can make your front door noticeable and more welcoming. Consider selecting a bright or contrasting color. Red complements green hues, and blue complements orange hues.

Once you're inside the house, a quick fix can be changing and updating light fixtures. Nothing says dated like track lighting. Safety first, however, so be sure to turn off the breaker before you start working with anything electrical. Next, take out any light bulbs in the fixture to avoid broken glass. And finally unbolt and unscrew plates and mounts.

Moving into the backyard we find the next weekend project. While it may not be the huge equity booster that many projects can be, it does add a different kind of value to your home life. What are we talking about? Vegetable gardens. According to Texas A&M, "Home gardening continues to grow in popularity. One of every three families does some type of home gardening, according to conservative estimates, with most gardens located in urban areas."

It's not only popular, it can help you save big when it comes to providing your family with organic or fresh produce.

To find out when to plant what and how, check out the National Gardening Association website at www.garden.org.
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