Moving To A New City? See How Much Your Cost Of Living Will Change.

It's a fact: It's more expensive to live in some cities than others. Beyond just the costs of buying a home, different cities also carry a different Cost of Living. For households relocating  across state lines, the change in "life costs" can be jarring.

Depending on where you live, everyday expenses -- from groceries to gasoline -- make a different-sized dent in a household budget. And now you can see in numbers by how much your expenses might change.

Visit Bankrate.com's Cost of Living Comparison Calculator. 

The Cost of Living Comparison calculator is as basic as it is thorough. The calculator asks just 3 questions --  (1) Where do you live now, (2) To what city are you moving, and (3) What is your salary -- and uses your answers to produce a detailed, 60-item cost comparison between the two towns.

The city-to-city cost comparisons include:

• Dry Cleaning Costs
• Total Energy Costs
• Beauty Salon Costs
• Movie Costs
• Dentist Visit Costs

The list also features a mortgage rate comparison, and a comparison of local home prices.

The Cost of Living calculator is based on data from the ACCRA. On the ACCRA website, a similar report sells for $5. At Bankrate.com, the information is free.

Temporary Conforming Loan Limits Expire September 30, 2011

If you live in a high-cost area, keep an eye on your calendar. Effective October 1, 2011, temporary conforming loan limits will be lowered nationwide. Perhaps by as much as 14 percent.

These limits range up to $729,750 currently.

"Temporary loan limits" were enacted as part of the government's 2008 economic stimulus package. At the time, the financial sector was entering its crisis and private mortgage lending had all but disappeared. Financing was scarce for both homeowners and home buyers for whom loan sizes exceeded Fannie Mae and Freddie Mac's national $417,000 limit -- even for those with excellent credit and income.

The issue was exacerbated in places like New York City where local home prices routinely topped $1 million. Buyers unable or unwilling to bring a substantial downpayment to closing (i.e. $600,000 or more) found themselves without financing.

The February 2008 package addressed this issue, using a math formula to change loan limits nationwide. The government assigned to each U.S. metropolitan area a temporary, new loan size limit equal to 25% greater than its respective median home sale price, not to fall below $417,000, and not to exceed $729,750.

Then, later that same year, the Housing and Recovery Act made "high-cost areas" permanent, but with a reduced 15% increase to median home prices, and loan sizes not to exceed $625,500.

These new limits take effect October 1, 2011 -- one day after the temporary limits expire.

If you live in a high-cost area, therefore, take note. Mortgage rates may be low, but the amount of loan for which you qualify may be less than you expect, and you may find yourself ineligible.

Whether you're planning a refinance or a purchase, keep an eye on the calendar.

The complete list of high-cost areas is available online.

"Homes Under Contract" Plunge 12 Percent In April

Hurt by foul weather and a soft market, the Pending Home Sales Index plunged 12 percent in April.

The monthly index is published by the National Association of REALTORS® and measures the number of homes on which new contracts have been written. 

It's the association's lone "forward-looking" report; meant to predict future, closed home sales. 80% of homes under contract close within 2 months.

Therefore, if the April Pending Home Sales Index is accurate, we should expect home sales to decline through June and July.

On a regional basis, "pending homes" varied. The Northeast Region posted growth. None others did.

• Northeast Region: +1.7% from March
• Midwest Region : -10.4% from March
• South Region : -17.2% from March
• West Region : -8.9% from March

But even regional data remains too broad to be useful to everyday buyers and sellers. Housing is local and that means that each block, of each street, in each city has its own market and economy. Grouping 9 states into a single "region" is neither helpful nor relevant.

That said, we can't ignore the data in its entirety.

Housing is believed to be a key component in the nation's economic recovery. Fewer home sales will retard growth, and slower growth leads mortgage rates down.

Home Affordability hit record-highs last quarter, and should do the same in this one. Homes now sell at discounts to prior prices and mortgage financing is cheap. Buyers tend to be drawn to favorable markets such as this, and that will pressure home prices higher.

If you're in the market for a home today, conditions look good. Talk to your real estate agent to gauge your options.

The 50 Most Expensive Small Towns In The United States

According to the National Association of REALTORS®, foreclosures and other "distressed properties" sell at discounts of 20 percent of more. Discounts of that size affect pricing in the broader housing market, too. It's among the reasons why median home prices are dropping.

Not all markets are affected equally, however. In a recent BusinessWeek analysis, it was shown that one-third of the nation's 50 most expensive small towns experienced a median price increase between 2010 and 2011.

Topped by Sagaponack, New York -- a town of only 582 residents -- each of the cities carries a median home price of more than $1,000,000, and a total population of 10,000 or less.

The list is dominated by New York and California, with 22 and 13 entrants, respectively. The rest of the towns are spread throughout the country, including Chilmark, MA (#28), Yarrow Point, WA (#29) and Belle Meade, TN (#48).

The complete Top 10 follows:

1. Sagaponack :
   $3,406,640, -14.5%
   Jupiter Island, FL : $2,810,434 -11.3%
   Kings Point, NY : $2,379,905 +13.5%
   Los Altos Hills, CA : $2,161,255 -13.6%
   Water Mill, NY : $2,111,688 -10.0%
   Belvedere, CA :  $2,100,453 + 1.3%
   Rolling Hills, CA : $2,063,917 +7.3%
   Hidden Hills, CA : $1,871,182 +0.7%
   Sands Point, NY : $1,823,677 +9.0%
   Woodside, CA : $1,792,837 -15.7%
   $3,406,640, (-14.5% from 2010)
2. Jupiter Island, FL : $2,810,434 (-11.3% from 2010)
3. Kings Point, NY : $2,379,905 (+13.5% from 2010)
4. Los Altos Hills, CA : $2,161,255 (-13.6% from 2010)
5. Water Mill, NY : $2,111,688 (-10.0% from 2010)
6. Belvedere, CA :  $2,100,453 (+1.3% from 2010)
7. Rolling Hills, CA : $2,063,917 (+7.3% from 2010)
8. Hidden Hills, CA : $1,871,182 (+0.7% from 2010)
9. Sands Point, NY : $1,823,677 (+9.0% from 2010)
10. Woodside, CA : $1,792,837 (-15.7% from 2010)

See the complete list at the BusinessWeek website.

Case-Shiller Shows Home Values Rolling Back 9 Years

The March Case-Shiller Index was released this week and it corroborates the findings of the government's most recent Home Price Index -- home values are slipping nationwide.

According to the Case-Shiller Index's publisher, Standard & Poors, home values fell in March from the year prior.

The March report was among the worst Case-Shiller Index readings in 3 years. On a monthly basis, 18 of 20 tracked markets worsened. Only Seattle and Washington, D.C. showed improvement, rising 0.1% and 1.1%, respectively.

On an annual basis, price degradation was even worse.

Washington, D.C. is the only tracked market to post higher home values for March 2011 as compared to March 2010. The national index has now dropped to mid-2002 levels.

As a buyer in today's market, though, you can't take the Case-Shiller Index at face value. It's methodology is far too flawed to be the "final word" in home prices.

The first big Case-Shiller Index flaw is its relatively small sample size. S&P positions the Case-Shiller Index as a national index but its data comes from just 20 cities total. And they're not the 20 most populous cities, either. Notably missing from the Case-Shiller Index list are Houston (#4), Philadelphia (#5), San Antonio (#7) and San Jose (#10). 

Minneapolis (#48) and Tampa (#55) are included, by contrast.

A second Case-Shiller flaw is how it measures a change in home price. Because the index throws out all sales except for "repeat sales" of the same home, the Case-Shiller Index fails to capture the "complete" U.S. market. It also specifically excludes condominiums and multi-family homes. 

In some cities -- such as Chicago -- homes of these types can represent a large percentage of the market.

And, lastly, a third Case-Shiller Index flaw is that it's on a 2-month delay. It's June and we're only now getting home data from March. Today's market is similar -- but not the same -- to what buyers and sellers faced in March. The Case-Shiller Index is far less useful than real-time data of a city or neighborhood.

The Case-Shiller Index is more useful to economists and policy-makers than to everyday buyers and sellers. For better real estate data for your particular neighborhood, ask your real estate agent for help.

A real estate agent can tell you which homes have sold in the last 7 days, and at what prices. The Case-Shiller Index cannot.

Making A Rate-Lock Plan Before Friday's Jobs Report

Tomorrow morning, at 8:30 AM ET, the Bureau of Labor Statistics releases its Non-Farm Payrolls report for May. If you're floating a mortgage rate right now -- or are in the process of shopping for a loan -- consider locking your rate sooner rather than later.

The Non-Farm Payrolls report can be a major market mover, causing large fluctuations in both conforming and FHA mortgage rates. It's because of the report's insight into the U.S. economy.

More commonly called "the jobs report", Non-Farm Payrolls is issued monthly. Sector-by-sector, it details the U.S. workforce and unemployment rates. 

Jobs momentum has been strong. Through 7 consecutive months, the economy has added jobs, the government reports. Nearly 1 million new jobs have been created during that time. These are strong figures for a country that lost 7 million jobs in 2008 and 2009 combined.

However, Wednesday, a weaker-than-expected "preview" figure from payroll company ADP has Wall Street wondering whether this month is the month that the winning streak ends.

May's ADP data fell so far short of expectations that investors have had to re-assess their job growth predictions. Earlier this week, the consensus was that 185,000 new jobs were created in May. Today, those estimates are much lower.

The change is leading mortgage rates lower, too.

The connection between jobs and mortgage rates is somewhat straight-forward. Job growth influences mortgage rates because jobs matter to the economy. As job growth slows, so does the economic growth, and that puts downward pressure on mortgage rates.

The opposite is true, too. Strong job growth tends to lead mortgage rates higher.

So, with job growth estimates revising lower, Wall Street has adjusted its "bets" and that's benefiting rate shoppers. Should the actual jobs figures not be so bad, though, expect a quick and sharp reversal; and much higher mortgage rates for everyone.

The safe move is to lock your rate today.

Mortgage Guidelines Start To Loosen At The Country's Biggest Banks

Another quarter, another sign that mortgage lending may be easing nationwide.

The Federal Reserve's quarterly survey of senior loan officers revealed that an overwhelming majority of U.S. banks have stopped tightening mortgage requirements for "prime borrowers".

A prime borrower is one with a well-documented credit history, high credit scores, and a low debt-to-income ratio.

Of the 53 responding "big banks", 49 reported that mortgage guidelines were "basically unchanged" last quarter. Of the remaining four banks, two said mortgage guidelines had "eased somewhat", and the remaining banks said guidelines "tightened somewhat".

It's the second straight quarter in which fewer than 5 percent of banks tightened guidelines, and the first quarter in nearly 5 years in which the number of banks that loosened guidelines equaled the number of banks tightening them.

The easing in mortgage lending is a positive development for the housing market; and for buyers nationwide. Looser lending standards means that more buyers will be approved for home loans, and that should spur home sales forward across the region.

However, don't confuse "looser standards" with "irresponsible standards". It's much more difficult to get financing today as compared to 2006. Delinquencies and defaults have altered how a bank reviews a loan application.

Today, underwriters are more conservative with respect to household income, total assets and overall credit scores. Even as compared to just 6 months ago:

• Minimum credit score requirements are higher
• Downpayment/equity requirements are larger
• Maximum allowable debt-to-income ratios are lower

If you can get approved, though, your reward is that mortgage rates are especially low. Since early-April, both conforming and FHA mortgage rates have been on a downward trajectory, and pricing is near a 6-month low.

Home affordability is at an all-time high, too.

Looser guidelines and lower rates should help fuel home demand through the summer months. If you're in the market to buy, your timing appears to be excellent.