Saturday, May 29, 2010

Mortgage Interest Rates Down - Mortage Refinance Interest Up

 All last week mortgage interest rates were fluctuating lows not seen since the '50's.  Here is an article that summarizes the most recent week: 

In yet another report designed to help determine the state of the U.S. economy, the Mortgage Bankers Association has released their weekly mortgage report. The results are out on home purchase rates, mortgage interest rates, and refinance rates, and the news is not very positive.
While applications from homeowners who are trying to refinance their mortgages escalated for the seventh time in as many months, new loans for purchases of new or existing homes remained deeply slumped, decreasing 3.3% in a third consecutive drop.
Even as interest rates reached their lowest level this year — at 4.8% for a 30-year mortgage, 4.25% for a 15-year mortgage, and 6.8% for an adjustable rate — the expiration of the mortgage tax credit, which provided major incentive to get people to purchase homes, has impacted the purchase rate considerably, bringing the purchase rate to its lowest point since 1997.

Monday, May 17, 2010

Mortgage Interest Rates Plus Low Home Prices Equals Great Affordability

 From Bankrate.com comes this article about the current state of the housing market, especially in light of the ending of the Federal housing stimulus homebuyer tax credit.  Basically, now is the time to refinance your home or get a mortgage on a new one.



Post-credit progress report

Nearly two weeks after the homebuyer tax credit expired, what is the state of housing activity across the nation?Surprisingly good, according to Jim Sahnger, mortgage consultant at Palm Beach Financial Network in Stuart, Fla.
"People still recognize that the combination of great rates and lower home prices represent a great opportunity," Sangher says.
Lazerson says activity is "on fire" in his California community, particularly on lower-end properties.
"The sales activity -- at least in my part of the country -- is pretty brisk except on the very high end, except well over a million dollars," he says.
Sipe says Maryland shoppers who failed to find a home in time to qualify for the tax credit nonetheless remain "in the market" for now. But he frets that a combination of widespread foreclosures, rising mortgage rates and stricter lending guidelines could yet derail sales activity.
 Clearly, there is still a lot of unsold inventory nationwide, but in California there are some places, like the West Los Angeles area that are seeing lots of offers on well priced properties.  As interest rates rise, and at some point they will, affordability drops if prices stay the same.  More likely is that both prices and interest rates will rise, resulting in much higher overall costs of ownership.  The time to buy is right now!!