Mortgage Rates Drop Sharply This Week

The 30-year fixed-rate mortgage, the most popular choice among home buyers, dropped to its second lowest reading on record this week, Freddie Mac reports in its weekly mortgage market survey.

"Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates,” says Frank Nothaft, chief economist at Freddie Mac.

Here are how rates fared for the week:

• 30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, down from last week’s 4.10 percent average. The 30-year fixed-rate mortgage is the second lowest on record, just behind the 3.94 percent record reached on Oct. 6. A year ago at this time, 30-year rates averaged 4.24 percent.
• 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.7 point, falling from last week’s 3.38 percent average. Last year at this time, 15-year mortgages averaged 3.63 percent.
• 5-year adjustable-rate mortgages: averaged 2.96 percent this week, with an average 0.6 point, dropping from last week’s 3.08 percent. At this time last year, 5-year ARMs averaged 3.39 percent.
• 1-year ARMs: averaged 2.88 percent this week, with an average 0.6 point, dropping from last week’s 2.90 percent average. A year ago at this time, the 1-year ARM averaged 3.26 percent.

Source: Freddie Mac

Investment Market Posting Record Gains

Apartment rents and occupancies are nearing record highs as demand increases, particularly among former home owners who have faced foreclosure and are now forced to rent than buy. Nationwide, 1.5 million new rental households are expected in 2011 -- which would be a record number, according to Green Street Advisors.

By the end of the third quarter, 5.6 percent of apartments stood vacant, the lowest level since 2006, according to Reis Inc. Effective rents increased to $1,004 a month in the third quarter, which is a 2.3 percent gain from last year, Reis reports.

Rising rents are appearing even in the hardest hit cities, such as Orlando, Fla.; Detroit and Phoenix, that have faced some of the highest unemployment rates and biggest losses in housing values, The Wall Street Journal reports. Only Las Vegas rents declined compared to a year earlier, out of the 82 major markets that Reis analyzed.

A lack of supply in rental units to meet the increased demand is causing rents to rise. Reis reported that about 8,200 new apartments were added to the market in the third quarter, but that’s the second lowest number since the company began tracking that data in 1999.

Meanwhile, investors are seeing soaring profits from apartment buildings they may have purchased just a few years ago. In fact, due to rising rents and demand, some real estate companies are expected to post their highest gains since 2006 in property net income for this year and next, The Wall Street Journal reports.

Source: “Apartment Values Rise, as Do Rents,” The Wall Street Journal Online (Oct. 26, 2011)

Renters Spending 5% More Than Home Owners

Rising rents are forcing renters to outspend home owners on housing costs, according to a new study.

Since 2005, home owners’ housing expenses have climbed from 31.9 percent of their household budget to 33.2 percent. On the other hand, in that same time period, renters’ expenses have jumped from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.

In the last 26 years, home owners have increased the amount they spend on household expenses by 12 percent while renters have increased it by 22 percent, according to the study.

Earlier this month, Capital Economics economists noted that for the first time in 30 years the median monthly mortgage payment is about the same -- or less -- than the median rental payment.

Yet, with the bleak job market, home ownership rates continue to fall in many parts of the country, particularly among younger generations. CoreLogic found in its report that the home ownership rate for the 25-to-34 age group dropped from 51.6 percent in 1980 to 42 percent in 2010. For the 35-to-44 age group, home ownership rates fell from 71.2 percent to 62.3 percent over that period.

Source: “Renters Outspend Owners on Housing,” RISMedia (Oct. 25, 2011) and Capital Economics

Wedding Registries for Home Downpayments?

Forget the toasters and champagne flutes: More engaged couples are doing a different type of wedding registry that allows them to collect cash for a down payment on a home, according to a recent article in The Washington Times.

Dana Ostomel, founder of Deposit a Gift in New York City, says that about 15 percent of their registries are to raise down-payment funds for a home and another 15 percent are for home-improvement funds to pay for upgrades like a new roof or furniture.

"Given that 75 percent of today's engaged couples already live together and are older, very often they are already established with the household basics that you find on a traditional registry," Ostomel said. "What they want is the gift of big-ticket items and longer term goals, like the gift of home ownership.”

The FHA permits gifts from a wedding to be used as a down payment, but lenders are required to document that the funds are gifts. About 27 percent of first-time home buyers use gift money from relatives and friends for a down payment, according to a 2010 National Association of REALTORS® Profile of Home Buyers and Sellers survey.

Source: “Registries Raise Cash Gifts, Avoid Etiquette No-No,” The Washington Times (Oct. 20, 2011)

How to secure your home during a foreclosure

By Andrew Johnson, ksl.com contributor

SALT LAKE CITY — A vacant home is a tempting target for all sorts of criminal activities, like vandalism and even illegal drug operations. Take a look at a few statistics regarding bankruptcies and foreclosures: According to the United States Bankruptcy Court, bankruptcy filings in Utah have increased 7 percent so far this year, even though the national rate has fallen 10 percent.

Although Utah’s rate of foreclosure filings during the third quarter of 2011 dropped from the second quarter, the state is still ranked among the nation’s Top 10 for rate of default filings in that time period.

As people foreclose on their homes, neighborhoods deal with the increased potential for crime. When a home becomes vacant, either through a foreclosure, repossession or even when the owners leave for an extended vacation, it’s important to make sure the property remains secure.

Malicious or unintentional property damage can end up costing banks and homeowners money, and property insurance may not cover it all. Guarding against accidents and break-ins is crucial, since the homeowner is still liable for the property during the process of foreclosure. Experts recommend thoroughly securing the property and the home before moving out, and paying close attention to the details.

Before you secure your home, realize there are certain things you shouldn’t overlook. It’s also a good idea to make sure the property doesn’t look vacant. If potential vandals, thieves and trespassers believe there is still someone living at the property, they’re less likely to target the home.

Here are some tips to consider:

• Lock up — All it takes is one window left unlocked, and the insurance company could deny any potential claim. Check all the entrances to your home — and then check them again.
• Winterize — Before a home is left vacant for any length of time, shut the water off at the main valve. You should also drain the water from the plumbing systems, and push the leftover water out with compressed air. Even a small leak can lead to a big problem, potentially costing tens of thousands of dollars in damage.
• Maintain the property — Property preservation companies offer services to give a vacant property a “lived in” look. They’ll maintain the yard, pick up mail and newspapers, shovel snow from the driveway, and remove debris. Companies like these offer services to homeowners and banks, so a vacant property can be maintained indefinitely.
• Ask for help — Former neighbors and friends can lend a hand with maintaining the property when it becomes vacant. Ask them to occasionally check up on the home or lot, and check for leaks, turn the blinds and monitor for trespassers.
• Unplug — An appliance that is set to “off” still draws a little power, so make sure everything inside the home and garage is unplugged. Before the electricity to the home gets shut off, pulling the plug can ensure a potential fire doesn’t start.
• Test and retest — Smoke and carbon monoxide detectors, as well as security alarms, should all be functioning properly. Make sure there are fresh batteries in the units, and test them before vacating the property.

Down economy's upside: City living becomes affordable

By Sarah Dallof

SALT LAKE CITY — Downtown Salt Lake lofts and condos that used to be in high demand when they introduced city living with big city price tags. But falling interest rates and low list prices are offering people the chance to get into dream properties.

Take a look inside one of the Broadway Park Lofts: two bedrooms, one and a half baths baths in nearly 700 square feet. Originally listed for over $261,000, it's now on the auction block starting at $100,000.

A penthouse that was once worth nearly $350,000 now has an opening bid of $140,000.

"Where the pricing ends up, you have to wait until auction day (to find out)," said Susie Keller, project manager of the Broadway Park Lofts.

So, is it a good deal or a ‘too good to be true' deal? Downtown sales veteran Babs De Lay, with Urban Utah Homes and Estates, cautions there are risks with developments like this, specifically when it comes to an unknown home owners association.

"There are a lot of things that haven't happened there because it's not finished, and what will you be absorbing there in a building that's not completely sold out?" De Lay said.

But it could be a killer deal for the right investor. And the dream of downtown ownership isn't just found on the auction block. If you can qualify for a loan, historically low interest rates are waiting.

"Business is crazy right now because of the interest rates. If it stays this way, I don't think I'll have days off for a month," Keller said.

De Lay says people with good credit, an income history and not a lot of debt are the folks qualifying for loans these days.http://www.modernhomebuyers.com/

5 Family Movie Night Ideas...

SALT LAKE CITY — If the man of the house quotes Clark W. Griswold on road trips and your toddler runs around shouting, “To infinity, and beyond!” it’s likely your family has their own list of top 5 movies.

A great family movie has endearing characters, humor and a life lesson, all rolled into an original and memorable story. When an entire family can sit down and enjoy the same movie together, it’s a cinematic success.

But you need more than a great family film to have an enjoyable movie night. Choosing a theme and adding a little extra entertainment can go a long way. Here is a list of five more current family films, and ideas for snacks and activities to make movie night more enticing.

"Enchanted"

1. Fairytale Night

"Enchanted" is a fairytale gone awry. In the movie the evil queen, Narissa, pushes the beautiful princess, Gisele, out of the animated world of Andalasia. The princess finds herself in modern-day New York City, communing with street rats and dirty pigeons instead of animated forest animals.

The fairytale feel and catchy soundtrack will appeal to younger family members, while mom and dad will appreciate the playful jabs at traditional happily ever after stories.

Since the evil queen’s henchman (the fabulous Timothy Spall) spends the entire film trying to trick Gisele into biting the poisoned apple, it’s only fitting to serve candied apples with this movie night. An easy recipe for Pip's candied apples can be found at www.mommybistro.com.

For an older fairytale classic, “The Princess Bride” is another family favorite worth watching.

2. Superhero Cinema

“The Incredibles,” one of Disney-Pixar’s most original animated movies, is the perfect choice for a superhero movie night.

After the Superhero Relocation Program forces the supers into hiding, Mr. Incredible finds himself restless in suburbia while working as a disgruntled insurance salesman. But he’s called back into action and duped by the evil villain Syndrome. His family of supers comes to the rescue, and they pull together to show how incredible they really are.

“The Incredibles” is devoid of princesses or talking animals. It’s rare when an animated film has characters with real depth, as well as hilarious dialogue that adults and children can both enjoy. The computer graphics are great, but they’re nothing compared to the smart humor and story that makes this a stand out family movie.

Parents may find themselves identifying with this line from Mr. Incredible: “No matter how many times you save the world, it always manages to get back in jeopardy again. Sometimes I just want it to stay saved! You know, for a little bit? I feel like the maid; I just cleaned up this mess! Can we keep it clean for... for 10 minutes?!”

Even though the seamstress to the supers, Edna, declared, “No capes!” after many death-by-cape mishaps, it’s probably safe for your family members to sport one on the couch. Recycling old t-shirts into a superhero cape is fun and easy. You can find simple instructions at the Kelleigh Ratzlaff Designs website. Decorate them during the movie while munching on a superhero sandwich from allrecipes.com.

3. Bon Appetit Theater

While most family films put a lot of emphasis on big laughs and musical numbers, "Ratatouille" has subtle charm and wit.

Remy, a rodent with a passion for the culinary arts, prefers French cuisine over garbage. Determined to be more than the average sewer rat, he leaves his family and follows his nose to Paris where he hides out in Gusteau's Parisian restaurant. He becomes an unlikely team with Linguini, an untalented heir to Gusteau's legacy, by manipulating his every move in the kitchen with a pull of his hair.

"Ratatouille"

The moral of “Ratatouille” is voiced by Peter O’ Toole, the feared food critic: “Not everyone can be a great artist, but a great artist can come from anywhere.”

Remy's ratatouille fondue is délicieux. Follow an easy recipe at Mommy Bistro's website.

Having paper toques (chef hats) for the family to color and decorate is an easy activity for young chefs.

Food-inspired films like “Charlie and the Chocolate Factory” and “Cloudy with a chance of Meatballs” also hold a lot of potential for a fun movie night.

4. Sports Night

What better way to kick off fall than by having a football-themed movie night?

Mark Wahlberg stars in “Invincible,” the true story of Vince Papale, who went from being a fan of the Philadelphia Eagles to an actual team member. In the spirit of “Rudy,” “Invincible” is all about an underdog who achieves his dream through pure grit and determination; the perfect recipe for a family sports movie.

“Invincible” is rated PG and has a moving story, but it’s probably best suited for audiences 12 and up.

Providing game day snacks can make this movie night feel like a Super Bowl party. Follow the recipe fortwice “blitzed” potatoes or kick-off kabobs with easy instructions from pittsburgh.about.com. Wearing your faorite team's football jersey only adds to the fun.

“A League of Their Own” or “Rudy” could be great picks for future sports-themed movie nights.

"Invincible"

5. Fright Night

This theme can be tricky, so take into consideration the age of your family members and plan accordingly.

It might seem like a safe choice, but “Harry Potter and the Prisoner of Azkaban” would make for a great movie night. There are so many recipes and activities on the Web that would add to the fun of the film that it shouldn’t be passed up.

The third film in the Harry Potter series, “Harry Potter and the Prisoner of Azkaban” is a bit darker in comparison to the first two films. The plot revolves around Sirius Black, an Azkaban escapee who was blamed for the death of Harry’s parents and who is now hunting down Harry. New characters and creatures are introduced, like Professor Lupin and Buckbeak. The dreaded Dementors add to the suspense and fright factor making, it just scary enough but not too scary for a family movie night.

Nicole Pollard currently resides in Canyon Country, Calif.

30-Year Mortgage Rates Drop Below 4%

For the first time ever, 30-year fixed-rate mortgages fell below 4 percent, Freddie Mac reported in its weekly mortgage market survey.

In the last month mortgage rates have continued to set new weekly record lows, but the 30-year mortgages’ latest drop below 4 percent may be an important threshold for potential buyers. The 30-year mortgage is the most popular financing option of buyers.

Mortgage rates are expected to stay well-below 5 percent through 2013, Fannie Mae economists are projecting. Home buyers taking out loans for purchase is expected to more than double in the next two years too, Inman News reports.

Rates have continued to free-fall as concerns over a global recession grows, Frank Nothaft, Freddie Mac’s chief economist, said in a statement.

Here’s a closer look at rates for the week ending Oct. 6.

• 30-year fixed-rate mortgages: averaged 3.94 percent this week, down from last week’s previous record low of 4.01 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.27 percent.
• 15-year fixed-rate mortgages: averaged 3.26 percent, another all-time low. This is the sixth-consecutive week the 15-year mortgage has posted new average record lows. Last week, 15-year rates averaged 3.28 percent. Last year at this time, 15-year rates averaged 3.72 percent.
• 5-year adjustable-rate mortgages: averaged 2.96 percent this week, dropping from last week’s 3.02 percent. A year ago, the 5-year ARM averaged 3.47 percent.
• 1-year ARMs: averaged 2.95 percent, the only mortgage rate to move up last week. Last week, the 1-year ARM averaged 2.83 percent. A year ago, the 1-year ARM averaged 3.40 percent.

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

Could Homes Soon Be Powered by Google?

The Internet giant is increasing its stake in the solar home power business with a $75 million “initial investment” to buy and own solar-panel generators on roofs of thousands of homes, The Wall Street Journal reports.

Google is investing in Clean Power Finance, a start-up company that matches solar-panel installers with investors willing to buy rooftop solar-panel systems. “With Google’s investment, solar-panel installers can find home owners who want solar panels on their roofs but don’t want to have to pay several thousand dollars to own the system,” The Wall Street Journal article notes.

"We're excited about the opportunity to really help accelerate residential solar," says Rick Needham, Google's director of green business operations.

The latest investment will likely help fund up to 3,000 home rooftop solar systems. In June, Google made a $280 million investment in residential rooftop solar-panel installations with SolarCity Corp. Google’s total investment in renewable energy has been more than $850 million.

Rooftop solar demand is growing, and home owners are finding paybacks too. Earlier this year, a study by Lawrence Berkeley National Laboratory found that solar panels not only saved home owners money on electricity bills but also helped boost a home’s resale value, particularly for existing homes.

Source: “Google Invests $75 Million in Home Solar Venture,” The Wall Street Journal (Sept. 27, 2011)

Provo, Ogden outpacing cities nationwide in job growth

By Jasen Lee, Deseret News

SALT LAKE CITY — Two Wasatch Front cities registered the best jobs number in the nation during the second quarter of 2011.

Provo and Ogden added jobs faster than any other major metros in the country, according to this month's edition of the Mountain Monitor produced by Brookings (Institution) Mountain West at the University of Nevada at Las Vegas.

Both northern Utah municipalities posted impressive quarterly job gains of 1.9 and 1.8 percent, respectively. By contrast, Colorado Springs lost nearly 1 percent of its jobs as employment levels fell to new lows.

The nation's overall job gains during the second quarter measured 0.3 percent, the report indicated.

Meanwhile, Salt Lake City was one of three Mountain West metropolitan areas that recorded employment growth of 0.2 percent — along with Boise and Phoenix. Elsewhere in the region, employment climbed 0.5 percent in Tucson and 0.4 percent in Las Vegas for a second straight quarter of job growth.

The jobs situation in Albuquerque ticked up slightly at 0.1 percent, while employment in Denver declined slightly.

"Employment gains in Provo were driven by education and healthcare, manufacturing and trade, transportation and utilities," said Kenan Fikri, senior research assistant and co-author of the report. "Outside of these sectors employment remained stable, so those modest gains were pure wins."

He attributed the second quarter employment gains in Ogden to expansion in manufacturing as well as leisure and hospitality industries.

In Salt Lake City, gradual increases in employment across the board have accumulated to produce a respectable jobs recovery, although employment still remains 4.4 percent below peak, he added.

The report described the overall jobs picture in Ogden, Colorado Springs and Salt Lake City as "comparatively bright," with Utah and Colorado metros standing closest to recouping jobs lost during the recession. The trio of Utah cities in the report all registered fewer jobs than at their peak employment periods before the recession — Ogden was down 3.2 percent, with Salt Lake City 4.4 percent below peak and Provo was down 4.9 percent.

"To some extent, Provo, Ogden, and Salt Lake City’s high rankings on this measure are a testament to just how dire the situation is elsewhere in the country," Fikri said. "But the fact that employment has remained stable across sectors for several quarters now means that the worst looks solidly behind Utah’s metros."

Buying A Home As A Couple: What Changes, What Doesn't and What Can You Expect...

According to a 2010 report by the National Association of Realtors, 58% of all homebuyers are married couples, 20% are single women, 12% are single men, 8% are unmarried couples and 1% falls into the "other" category. Unmarried couples often must decide between continuing to rent, having one partner buy a home, or entering into a home purchase together. Since buying a home is the largest single investment that most adults will ever make, it pays to consider the financial and legal details before buying a home as a couple. (For related reading, also take a look at Top 10 Tips For Buying Your First Home In 2011.)

Down Payment
Following the recent financial crisis, many banks are now requiring larger down payments when purchasing a home, often for as little as 0% to 3.5% to as much as 20% of the home's value. Some banks also want the money for the down payment to have been earned by the homebuyer(s), and not come from other sources like a gift or inheritance. Depending on the situation, a couple buying a house together may be able to afford a larger down payment and be able to qualify for a better mortgage.

Mortgage
Some couples may decide to base a mortgage loan on only one income if one partner has poor credit or in case one person becomes unemployed, ill or loses a monthly income source. Having only one partner on the mortgage can sometimes lead to a better deal on the loan. However, the bank may require both homebuyers to be on the mortgage. In addition, the couple may want the security that comes from having both names on the mortgage and being jointly responsible for the debt.

Title
The title to a home expresses the type of legal ownership and how the property is transferred in the event of death. Married couples may automatically acquire title as a tenancy by the entirety or as joint tenants with rights of survivorship, depending on the state where the home exists. Unmarried couples, however, will likely have to make this distinction in order to protect the rights of the surviving partner. The most common ways for unmarried couples to hold title are as joint tenants or as tenants in common. In the event that only one partner is listed on the mortgage or title, the other may have little rights in the event that the couple splits or if one partner dies.

Home Buying Partnership Agreement
As an unmarried couple, it is important to put all financial agreements into writing. A qualified real estate lawyer can write a home buying partnership agreement (or other document) that clarifies how finances will be handled, including how much each partner will contribute to the down payment, monthly mortgage payments, and for repairs and maintenance.

The agreement should also identify what happens if the partners decide to go their separate ways. Things to consider include who would keep the home in the event of a split, how a listing agent would be selected, how to determine the asking price for the home, how proceeds from the sale of the home would be divided, and what to do if the home remains on the market for an extended period. A written agreement will help protect the rights of both partners.

The Bottom Line
Many couples today decide to purchase a home to avoid paying rent and to build equity. If one partner decides to purchase the home, it may benefit the couple to openly discuss the finances, outlining any contributions that the other partner will make towards the down payment, mortgage, utilities and upkeep of the property. If the partners choose to purchase a home together, a home buying partnership agreement can help protect the rights of both partners, and outline all the financial details involved in buying a home as a couple. (For additional reading, also check out Getting Help With Your Down Payment.)

Home Ownership Trumps Renting in 74% of Cities, Survey Says

Low interest rates and falling home values have made home ownership make more financial sense than renting in most major cities, according to Trulia’s Summer Rent vs. Buy Index.

Trulia found that buying a home is cheaper than renting in 74 percent of the country’s 50 largest cities. Trulia compared the cost of buying and renting a two-bedroom apartment, condo, or townhouse in the nation’s 50 largest cities.

Buying a home particularly in cities plagued by foreclosures proves to be much cheaper than renting, according to Trulia.

Source: “Home Ownership Beats Renting in 74 Percent of Major U.S. Cities,” Trulia (Aug. 16, 2011)

Foreclosures Reach Lowest Level Since 2007

Foreclosure filings dropped again in July, marking the 10th straight month for year-over-year declines and reaching their lowest level since November 2007, RealtyTrac reports. But analysts are still mostly attributing the drop to banks’ processing delays as they take more time to take action against delinquent home owners.

For July, about 212,764 homes received a foreclosure filing — which is a notice of default or auction sale or completed foreclosure — that’s down 4 percent compared to June. Filings were 35 percent lower than July 2010, according to RealtyTrac, and bank repossessions were down 33.6 percent from its peak in September 2010. Also, initial notices of default dropped 39 percent year-over-year to fewer than 60,000, which could be an indication that fewer borrowers are falling behind on their mortgage payments or that lenders are not filing notices as promptly in the past.

"The downward trend in foreclosure activity has now taken on a life of its own," says RealtyTrac CEO James Saccacio. "It appears that processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts, may be allowing more distressed home owners to stave off foreclosure."

Las Vegas continued to have the highest rate of foreclosures in the country — a filing for every 99 homes. Overall, for states, Nevada had the highest foreclosure rate of any state (one filing for every 115 homes), followed by California (one in every 239 homes), and Arizona (one in every 273 homes).

Source: “Foreclosure Filings Fall for 10th Straight Month,” CNNMoney (Aug. 11, 2011)

Mortgage Rates Reach Record Lows...

Mortgage rates dropped sharply this week, possibly improving the purchasing power of many home buyers. The 30-year fixed-rate mortgage, the most popular choice among buyers, averaged 4.39 percent this week, its lowest average for 2011, Freddie Mac reported in its weekly mortgage market survey. The 15-year fixed-rate mortgage and the 5-year adjustable rate-mortgage also both reached new historical record lows.

Rates mostly dropped across the board amid signs of a weakening economy, Freddie Mac says.

"Treasury bond yields fell markedly after signs the economy was weaker than what markets had previously thought allowing fixed mortgage rates to follow this week with the 15-year fixed and 5-year ARM setting new historical lows,” says Frank Nothaft, chief economist at Freddie Mac.

Nothaft also noted some improvement in the housing market, however. "There were indications that the housing market is firming,” he says. (see Pending Home Sales Rise in June)

Here’s a closer look at rates for the week ending Aug. 4:

30-year fixed-rate mortgages: averaged 4.39 percent, downfrom last week’s 4.55 percent average. A year ago at this time, 30-year rates averaged 4.49 percent.

15-year fixed-rate mortgages: averaged 3.54 percent, dropping from last week’s 3.66 percent average.Last year at this time, 15-year rates averaged 3.95 percent.

5-year adjustable-rate mortgages: averaged 3.18 percent this week, falling from last week’s 3.25 percent average. Last year at this time, 5-year ARMs averaged 3.63 percent.

1-year adjustable-rate mortgages: were the only ones on the rise last week, averaging 3.02 percent this week, which is up from last week’s 2.95 percent average. Last year at the time, 1-year ARMs averaged 3.55 percent.

Source: “Mortgage Rates Hit Record Lows Amid Signs of Weakening Economy,” Freddie Mac (Aug. 4, 2011)

New Grant for Military First-Time Home Buyers

DAILY REAL ESTATE NEWS | TUESDAY, JULY 26, 2011

A new program is offering financial assistance to first-time home buyers who are veterans or active-duty military members. The Pentagon Federal Credit Union Foundation, a nonprofit national organization, is offering the assistance through its Dream Makers program.

Active duty personnel, veterans, retired members of the military, and employees of the U.S. Department of Defense and the Department of Homeland Security may be eligible for a grant up to $5,000 to use on down payments and closing costs when buying their first home. The grants can be applied to a mortgage from any financial institution.

“Members of the military often put off buying a home earlier in their careers because they’re moving around the country a lot,” says Kate Kohler, chief operating officer for the PenFed Foundation. “We want to make sure they have resources to add immediate equity into their home when they decide to buy.”

To view eligibility requirements, visit www.pentagonfoundation.org/dreammakers.

Source: “Veterans and Active Duty Can Get Financial Help When Buying Their First Home,” Pentagon Federal Credit Union Foundation (July 25, 2011)

The end of the 40-hour workweek?

Salaried workers are asked to do much more. Meanwhile, lower-level jobs are being turned into part-time positions with irregular schedules.

The era of a 9-to-5 workday appears to be coming to an end.

Higher-level workers are increasingly being asked to put in 50 hours or more a week, effectively working an 8-to-6 day at the very least, while lower-income workers are often forced to work fewer hours but at jobs with irregular schedules, according to a comprehensive report from the Center for American Progress (.pdf file), which reviewed dozens of studies from the previous 30 years to understand the changing work/life struggles of the country's labor force.

Driving these changes, as the center explains it, are companies turning lower-level full-time jobs into part-time employment to cut costs, savings that come at the expense of workers -- and their families -- losing the traditional schedules and financial benefits that come with full-time employment.

At least 50 hours

Some 38% of men in professional and management positions worked at least 50 hours a week between 2006 and 2008, up from 34% who worked those hours 30 years prior, based on government studies cited in the report. Women in higher-level positions experienced an even steeper change, with 14% working 50 hours or more in 2006-2008 compared with just 6% who did between 1977 and 1979.

These longer work schedules, which the center describes as being "ramped-up versions" of what full-time employment once meant, were found to be particularly common on the higher end of the income ladder.

"Many of the highest-paying and highest-status professional jobs require very long hours -- and, in today's 'winner take all' economy, turning them down can extract a sharp wage penalty," the researchers write in the report.

Much has been written about the number of Americans forced to work longer hours in the aftermath of the recession, as companies cut their payrolls, but as the literature reviewed in this report shows, many higher-level professionals were in danger of becoming workaholics long before that. One Harvard study published in 2006, for example, found that a fifth of those in the top 6% of income earners actually worked 60-hour weeks on average.

On the other hand, lower-level workers are facing the opposite problem. The percentage of men in low-income professions who worked 50 hours a week was cut in half during the previous 30 years, despite the fact that these workers often want to put in more hours to build up their income. To make matters worse, though they work fewer hours, their schedules tend to be more irregular, with two-thirds of couples who earn less than $50,000 a year having at least one spouse who works hours outside the traditional 9-to-5 schedule (i.e., nights and weekends).

This change in schedules for high- and low-level employees not only has the potential to cause added stress while at work but, according to the report, it also has the potential to cut into the time these people would otherwise spend taking care of their households.

Companies lose

Even the companies themselves may not benefit in the end from pushing more inconvenient work schedules. As the center points out, one survey found that workers would be 30% less likely to quit their job within the first two years if they had flexible schedules. However, since their schedules are getting worse, not better, companies may have to confront higher turnover and the added financial burden that comes with replacing employees.

Despite the changes to the nation's overall work experience, there are plenty of companies that do provide flexible schedules and other perks to lighten the burden of a heavy workweek.

This post comes from Seth Fiegerman at partner site MainStreet.