New Home Sales Decline Median Price Rises

New-home sales resumed declining in October, but the median price increased.

Meanwhile, the U.S. economy was stronger last summer than first thought because businesses accumulated more inventory and trade was less of a drag. Gauges measuring third-quarter inflation were lowered slightly, according to the latest data revisions.

Sales of single-family homes decreased by 3.2% to a seasonally adjusted annual rate of 1.004 million, the Commerce Department said. September sales climbed 3.7% to 1.037 million, revised from a previously estimated 5.3% advance to 1.075 million. Sales increased 2.1% in August but fell 9.2% in July.

The average price of a new home increased to $309,700 in October, up from $297,700 in September and $293,600 in October 2005, according to Commerce. The median price also rose, up to $248,500 last month from $218,200 in September and $243,900 in October 2005.

The sales numbers Wednesday were worse than what Wall Street expected.

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Guide to Homeowner Loans

A Homeowner Loan is a loan secured against your home that can help you unlock the capital tied up in your home.

Homeowner loans are popular secured loans where your home is used as security to the lender for the money you borrow. In other words, if you don't pay back the loan, the lender can, in extreme circumstances, sell your house in order to recoup any losses. Homeowner loans are also known as second charge loans or second mortgage loans. A Homeowner Loan is any loan which requires the borrower to provide the lender with some form of security, in the case of the Homeowner Loans the 'security' will be a mortgage over the borrower's home. The amount of money you can borrow using a homeowner loan depends on how much equity is in your house.

While the lender benefits from the peace of mind of knowing that the loan is secure, there are many benefits to the consumer of homeowner loans. Firstly, compared with unsecured loans, homeowner loans tend to be faster and easier to arrange. As a homeowner, you can borrow against the value of your home without spending your equity. With a homeowner loan, you can keep your current mortgage, so you don't need to remortgage in order to realise the value of your equity.Moreover, homeowner loans usually have a lower rate of interest than unsecured loans. Interest rates for homeowner loans will depend on the amount of money you want to borrow, the repayment period, proof of income, employment status and your financial circumstances, such as your credit record including any mortgage arrears and CCJs.

Homeowner loans can be used for any purpose. You can use the money to consolidate existing debts, pay off overdrafts and credit cards or buy yourself a new car, go on holiday or make home improvements. One of the benefits of a Homeowner loan is that the interest rate will be lower than on a comparable Personal loan. You can borrow much more using loans secured on property, normally up to £75,000 and the interest rates are usually lower than with an unsecured loan because of the lower risk to the lender. With homeowner loans you can also pay over a longer period of time, anything between five years and twenty-five years.

Finding a Real Estate Agent in a Buyer's Market

In much of the country, house sellers have gone from strutting to sulking. At the rate that homes were resold in October, it would take about seven-and-a-half months to sell all the houses on the market. A year before, there was less than a five-month supply of houses for sale. Buyers now have the advantage, as millions of "for sale" signs rust forlornly in front yards.

"There isn't that stream of buyers like you had a year and a half ago, where people were waiting in line," says Jim Merrion, regional director of RE/MAX Northern Illinois.

For sellers, the cyclical return to a buyer's market means that it's important to choose the right real estate agent.

Here are the 6 keys to finding your real estate agent…

Homeowners Insurance Will Rise in 2007

Most homeowners can expect their insurance premiums to go up 3 percent to 4 percent next year, given the increased value in your home and the increase in the cost of materials and labor, said Robert Hartwig, chief economist for the Insurance Information Institute.

"The big exception is if you live in a hurricane-exposed area," Hartwig said. In that case, you could see increases of between 20 percent and 100 percent by next year relative to what you paid before the 2005 hurricane season.

The enormous jump reflects both forecasts of more hurricane-intensive weather for the next 15 to 20 years as well as insurers' shortfalls from the past - in Florida, for instance, insurers have paid out $13 billion more than they collected in premiums since 1992.

Choosing a Mortgage Lender

There are tens of thousands of mortgage companies in America. In some states, you don’t even need a license or any experience to originate mortgages.

Because of the sheer amount of choices you will have when you go to obtain a mortgage loan, you need to ask some specific questions before choosing a lender. Asking the right questions will help you find a lender who will offer you great service and low rates/fees. It might also help you avoid a mortgage scam.

Remember, as the client, you are in the driver’s seat. This is your chance to be the big boss and ask the important questions. Interview your mortgage lender using the 7 questions dreaded by all lenders.