Summer home-sale season coming to a close

As warmer months tend to lead to more home sales, it's not surprising that the latter part of summer sees median asking prices stop increasing. July saw the first decline of the year, with numbers dropping .05 percent, according to recent data from

Compared to last year, only 26 of the 146 markets had median asking prices that were lower. Costs are in the low end of the market due to several factors. The supply of homes for sale – especially bank-owned foreclosures and other distressed properties – have dropped sharply, said the Wall Street Journal. Sellers are also holding back because they would have to sell at a large loss or because they find themselves underwater – owing more money than the home is worth.

Even with asking prices beginning to lower, lenders should still ensure that they are using adequate mortgage loan software when determining the right type of repayment plan for borrowers – new or current customers. As reported by Housingwire, 95 percent of borrowers refinancing out of an adjustable rate mortgage (ARM) using the Home Affordable Refinance Program (HARP) chose to transition to a fixed rate mortgage.

Frank Nothaft, Freddie Mac's vice president and chief economist, said that low interest rates was a major factor in the new refinancing activity.

"The Bureau of Economic Analysis has estimated the average coupon on single-family loans was about 5 percent during the second quarter of 2012," he said. "It's no wonder we continue to see strong refinance activity into fixed-rate loans."

With borrowers trying to take advantage of government-sponsored programs, designed to ease the financial burden of owning a home, lenders would be wise to use an amortization calculator as well.