FHFA: mortgage rates rose slightly in November

The Federal Housing Finance Agency (FHFA) this week reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.22 percent based on loans closed in November. This is an increase of 0.03 percent from the previous month.

The average interest rate on conventional, 30-year, fixed-rate mortgage loans of $417,000 or less increased 4 basis points to 4.40 percent in November. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages (see technical note). These results reflect loans closed during the November 23-30 period.

Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-October. The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.20 percent in November, up 3 basis points from 4.17 percent in October. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.31 percent in November, up 2 basis points from 4.29 percent in October.

This report contains no data on adjustable-rate mortgages due to insufficient sample size. Initial fees and charges were 0.78 percent of the loan balance in November, down 0.05 percent from 0.83 in October. Thirty-four percent of the purchase-money mortgage loans originated in November were "no-point" mortgages, up six percent from the share in October. The average term was 28.5 years in November, down 0.2 years from 28.7 years in October. The average loan-to-price ratio in November was 77.1 percent, down 1.3 percent from 78.4 percent in October. The average loan amount was $220,500 in November, up $2,000 from $218,500 in October.

SC jobless rate falls to 9.9%

South Carolina’s jobless rate in November dropped to 9.9% as the number of workers grew by nearly 10,000, the S.C. Department of Employment and Workforce reported on Monday. Employment gains were led by the trade, transportation and utilities sector with an increase of more 8,800 workers during the month. About 7,100 of those workers were hired in retail trade, the agency said. Read the entire article from the Columbia Regional Business Report.

SC ranks 37th in quarterly growth

The state of South Carolina showed relatively no change in average personal income growth for the third quarter of 2011 and ranked 37th in growth in the United States, according to estimates released by the U.S. Bureau of Economic Analysis on Monday. However, South Carolina exceeded the national average growth in seven of 24 business sectors that were analyzed. The largest growth was seen in health care and social assistance, where the state realized a 1.6% increase compared with the previous quarter. The national average is 1.4%. The state’s increase represents $158 million above second quarter earnings. Read the entire article from GSA Business.

HBA of Greenville Office Schedule for the Holidays

Your HBA of Greenville staff and Board of Directors wishes each of our members and customers a happy Hanukkah, a merry Christmas, and a joyful and prosperous new year.

The HBA of Greenville office will be closed for the Christmas holiday:

• Friday, December 23
• Monday, December 26

The HBA of Greenville office will be closed for the New Years holiday:

• Friday, December 30
• Monday, January 2

If there is an emergency and you need to reach a member of our staff while the office is closed, please dial 864-735-7698.

NAHB: Homeownership Works Rally at the S.C. State House on January 12

UPDATE: Speaker Newt Gingrich will appear at the Homeownership Works Rally.

The National Association of Home Builders is planning a rally at the South Carolina State House in January in to support the housing industry and homeownership in America—The American Dream.  Every member of the Home Builders Association of Greenville is encouraged to travel to the State House in Columbia to participate.

• Homeownership Works Rally
• Thursday, January 12, 12 noon
• South Carolina State House, Columbia, SC
• Presented by the National Association of Home Builders

The goal of this event is to publicize the state and national impact of homeownership and the housing industry.  The Republican Presidential Preference Primary will take place less than two weeks after the rally.  Numerous Republican candidates for President of the United States will be in South Carolina campaigning the week of the rally, and one or more are expected to attend the rally.  They will be followed closely by the national media.  This rally is an opportunity for Home Builders to help their National Association of Home Builders to showcase the importance of homeownership and new home construction to America.

The rally, which starts at 1 p.m., is preceded by lunch on the State House grounds at 12 noon.

Please let your HBA of Greenville know your intentions about attending this rally by registering.  We will plan to arrange transportation either by bus or carpool, depending on the level of participation.  Please register as early as possible so we can plan accordingly.  Click here to register at HBAofGreenville.com to participate in the Homeownership Works Rally at the South Carolina State House.

Federal Home Loan Bank Chief Business Officer will Speak at January Membership Meeting

Make plans to attend the January Membership Meeting and Awards Luncheon.  Our speaker will be Robert F. Dozier, Jr., Executive Vice President and Chief Business Officer of the Federal Home Loan Bank Atlanta.

• Membership Meeting and Awards Luncheon
• Thursday, January 19, 11:30 a.m.
• TD Convention Center
• Sponsor: Piedmont Natural Gas
• Speaker: Robert F. Dozier, Jr., Federal Home Loan Bank Atlanta

Dozier will discuss trends in banking, particularly as they impact residential construction and development.  Also on the agenda will be the installation of our 2012 Board of Directors and announcement and recognition of our 2011 Builder of the Year and Associate of the Year.

Click here to register for the January Membership Meeting and Awards Luncheon at HBAofGreenville.com.

Robert Dozier oversees FHLBank Atlanta’s Member Sales and Trading, Community Investment Services, Corporate Communications, and Government and Industry Relations functions.  Prior to joining FHLBank Atlanta in 2011, Dozier was president and chief operating officer for Homeowners Mortgage Enterprises (HME), a subsidiary of CoastalStates Bank, where he began as a loan officer in 1992. Dozier also served on the board of directors for CoastalSouth Bancshares, the holding company of CoastalStates Bank, and the board of directors for FHLBank Atlanta from 2002 to 2004. He earned a Bachelor of Arts degree in political science from the University of South Carolina.

Girder Span Review is Creating Confusion in South Carolina

The load-carry capacity of Southern Yellow Pine has come into question in recent weeks, and a regulatory body is currently reviewing a proposal to reduce the spanning capacity of Southern Yellow Pine by up to 39 percent.

Late last week the Chairman of the South Carolina Building Codes Council, Greg Parsons, PE, sent out an email that prematurely states that the spanning capacity of Southern Yellow Pine has already been reduced.

The Southern Pine Inspection Bureau is currently reviewing is 1991-published design values for Southern Yellow Pine and is expected to issue a ruling on January 5, 2012, as to the load carrying capacity of Southern Yellow Pine.  However, no change in the rule will be valid in South Carolina until the South Carolina Building Code Council takes action.

Currently in South Carolina, the span tables that are approved and in force include those in the 2006 International Residential Code and as an alternative, an "Altnernative to IRC Table R503.5 (1)."  Scroll to Page 14 for the table.