Mortgage News You Can Use

                                                                     February 14, 2007

Rate Watch-According to the Mortgage Bankers Association, borrowing costs on 30-year fixed-rate mortgages, excluding fees, were little changed at 6.24%, compared with 6.23% the prior week.

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Ann Arbor Area Buyer and Seller Tidbits-From the 2006 Profile of Home Buyers and Sellers prepared for Ann Arbor Area Board of Realtors by the National Association of Realtors.

47% of sellers used the same agent for their home purchase.

91% of sellers used the Internet to market their home.

58% of sellers reported they would definitely use the same agent again.

4% of sellers sold their home without the assistance of an agent compared with 12%

of sellers nationally.  Among all sellers, 2% were FSBO sellers who knew the

buyer.

First-time buyers accounted for 40% of the market last year.

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The Mortgage Bankers  Association estimated that about 20% of home purchases are now made using subprime loans (typically those with lower credit scores or other credit problems). High default rates on these types of loans are accelerating rapidly-the rate of subprime borrowers who are more than a month late on a mortgage payment was 13.2% in the third quarter of 2006, the latest numbers available, up from a 10.5% delinquency rate in the third quarter of 2005. The overall mortgage delinquency rate was 4.7% in the third quarter.  As these subprime loans continue to fall further behind something has to give.  Some experts estimate that rates for subprime mortgage loans could rise a half to three-quarters of a percentage point because of the higher default rates, and that could top a full percentage point if the default problem gets worse.

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Interesting statistic from NAR (National Association of Realtors): The average sales price of an existing home was $222,000 in December 2006, exactly the same average sales price that the nation had one-year earlier in December 2005.

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The Wall Street Journal reported Tuesday that Bank of America Corp. has begun offering credit cards to customers without Social Security numbers, typically illegal immigrants. The new card is open to people who lack both a Social Security number and a credit history, as long as they have held a checking account with the bank for three months without an overdraft.

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Disclaimer: The information contained in this newsletter has been gleaned from various sources and is intended to be current and accurate, however we cannot and do not warrant or guarantee as such. This newsletter is for informational purposes only and is not intended to be, nor should be considered as, investment advice. It does not take into consideration the financial circumstances, needs or investment objectives of any specific person who may receive this newsletter. Individuals should seek financial advice with regard to specific circumstances before making any investment decision.

                                          Copyright2007 Ann Arbor Mortgage Company, LLC