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January 20, 2012

There’s a lot of good news about values and sales of real estate. Rates have hit another record low. The future for the real estate market looks to be improving. Put this all together and the present time is really a good time to make your move.

First, let’s start with the interest rate scenario. Rates have again hit another record low. FHLMC has reported in their survey below that the conforming rate for 30 year average 3.88 % with 0.8 cost and 3.17% with 0.8 costs. These interest rates will be increasing, however. The first issues is that our congressional representatives have the wisdom of adding on to new FNMA and FHLMC mortgage between an 0.125% and 0.25% to fund the pay roll tax cut that was proposed and passed by the our government last year. So the record low rates will be higher under all circumstances going forward.

This information is from FHLMC.

Primary Mortgage Market Survey®

January 19, 2012

Rates will be increasing also because of improved economic activity. Rates are usually kept low to encourage borrowing in slow economic times. Currently, times are not so good and thus rates have been kept low but reports of lower unemployment and improved activity has lead to increases in the 10 year bond going from 1.89% a few days ago to 2.009% this morning. Next week this report from FHLMC should show a higher rate.

Values continue to strengthen and it is a welcome sight. No longer is there the (well at least I feel that way) feeling of the precipitous drop in home values. There was a time over the last few years where property values would drop 10, 15 or even 20 percent month over month. The present feeling is more optimistic with an increase in the number of sales in December. That is good news. I mentioned in a previous blog that the MBA did a survey of American household and that 80% of them felt it was indeed a good time to buy a home. Sounds like many of them followed through with the number of purchases increasing fiver percent in December.

So are we seeing the beginning of the housing recover? We will only know that with 100% certainty after it has happened but the numbers sure seem to be pointing towards stabilization if not the beginning of a recovery. If we have a recovery in the housing sector, it will be the beginning of the economic recovery which will put more people back to work. That will in turn increase the demand for homes. Before you know it, values will be shooting up again. If you are thinking, you may want to make the move now, while the deals are still there.

All the best,

Tim Kepler 800-295-3914

January 13, 2012

Mortgage rates hit another historic low! Yesterday FHLMC reported in their weekly survey that for the previous week rates on 30 year conforming mortgages were at 3.89% with 0.7 costs. Another record set. It’s almost like watching the Olympics! Records are being bettered every week.

At Land Home we are offering similar rates for a 30 year fixed in the high 3s, as well. It is unbelievable how low the rates really are. 3.875% for a 30 year fixed rate and you could be saving over $125 per month on a $250,000 loan amount. That 3.875 rate is with zero cost today…better jump on it if you have a 4.75% rate or higher. Did I mention no costs?

Home values are beginning to stabilize. We haven’t seen any real big swings in value. They seem to be moving up despite the low employment and economy.

More information reported today by Foreclosure Radar about the foreclosure markets. It’s amazing to think about foreclosures referred as a separate market but there is so much volume that it truly is. FR reports that the number of foreclosure starts has declined by 30.6%. That is a nice change for the market that seems to keep getting flooded with owners just throwing in the towel and walking away. Maybe owners are feeling as if their values will not continue to be eroded as the years go on.

The amount of time to foreclose has decreased, as well. That stands to reason…if fewer owners are walking away then shorter back log in processing a foreclosure. Maybe the shadow inventory idea is overblown.

With fewer foreclosures and record low rates this housing market truly does seem to be stabilizing. If you are or have been thinking about buying or refinancing, it appears that the present time is a good one. Don’t wait until thing start to go up.

Call today for a pre-approval or refinance to improve your budget: 925 640 0960