Pending Sales of Existing Homes in U.S. Rose 6.1% in September 2009-11-02 15:00:00.4 GMT Bob Willis
Nov. 2 (Bloomberg) -- The number of contracts to buy previously owned homes in the U.S. rose in September for an eighth straight month as Americans rushed to meet a deadline for a home-buyer tax credit. The index of signed purchase agreements, or pending home sales, rose 6.1 percent after a 6.4 percent gain in August, the National Association of Realtors announced in Washington. Compared with a year earlier, pending sales rose 19.8 percent, without adjusting for seasonal variations. Many buyers accelerated purchases of new homes to take advantage of the $8,000 tax credit before it expires Nov. 30.
Foreclosure-driven price declines and low mortgage rates have also pushed sales up this year. Home sales may cool in coming months unless the credit is extended under a deal worked out by Senate Democrats. “Home sales continued to show improvement as we see people rush to take advantage of the homebuyer tax credit, although the sustainability of this move is in doubt, and we expect a far slower growth rate going forward,” David Semmens, an economist at Standard Chartered Bank in New York, said before the report. Pending home sales were projected to be unchanged in September from the prior month, according to the median forecast of 33 economists in a Bloomberg News survey. Estimates ranged from a drop of 2.5 percent to an increase of 5.5 percent. The Realtors group has collected pending sales data since January 2001, and it started publishing the index in March 2005.
Leading Indicator Pending home sales are considered a leading indicator because they track contract signings. The Realtors’ existing- home sales report tallies closings, which typically occur a month or two later. Sales rose in three of four regions from the prior month. They increased 10.2 percent in the West, 8.1 percent in the Midwest and 4.9 percent in the South. Sales fell 2 percent in the Northeast.
“As long as buyers do not overstretch and stay well within their budget, a sizeable pent up demand can be tapped among financially qualified potential buyers,” NAR Chief Economist Lawrence Yun said in a statement. Still, “We’re clearly not out of the woods because an excess of homes remains on the market.” Sales of existing homes surged a record 9.4 percent in September to a 5.57 million annual rate, a report last month showed. The median price fell at the slowest pace in a year as the number of houses on the market shrank.
Federal Reserve The Federal Reserve has announced it will phase out its purchases of $1.25 trillion in mortgage-backed securities by March, signaling borrowing costs for home buyers may rise after the average rate on a 30-year mortgage fell to a record 4.78 percent in April. Housing-related companies are still recovering from the industry’s worst slump since the Great Depression. USG Corp., North America’s largest maker of gypsum wallboard, posted its eighth straight net loss last quarter as sales dropped 32 percent from the same time last year. “We’re expecting we’ve hit the bottom in housing,” Chief Executive Officer William Foote said Oct. 21 on a conference call with analysts. He added it would take time for any sustained improvement to “really kick in.” MORTGAGE RATES NEARLY UNCHANGED FROM FRIDAY
Most rate prices are near unchanged this morning as mortgage bonds start out losing ground, then improve, then fall back a bit after the release of better than expected data. Treasuries are taking a hit while stocks strengthen in yet another reversal. This back and forth movement is a telling sign of the reality of increased volatility as market participants debate the shape and form and timing of recovery, and the impacts of anticipated decreased Fed intervention. Busy news week culminating in the employment report on Friday. This week is likely to be choppy ahead of this heavily weighted data. Be careful and if you have your full documentation and package to your lender, you should lock ahead of any weighty news. Not sure? Contact your lender (or me) and get that package in, if you want to refinance at rates still near or below 5%. It's may be a roller coaster ride for rates, so being prepared to lock is better than trying to do so without your full loan document package in to your lender. Be prepared!
In the news today - Market Headlines for November 2, 2009
Trading on the market remains unchanged for mortgage backed securities, but that could change at midday repricing. Be prepared to lock against choppy news this week.
Data released today for: Pending Home Sales Month over Month SEP 0.00% change Pending Home Sales Year over Year Construction Spending Month over Month - SEP -0.20% change
U.S. September Construction Spending Report 2009-11-02 15:00:01.740 GMT By Alex Tanzi Nov. 2 (Bloomberg) -- The following is the text of the September construction spending report from the U.S. Commerce Department.
SEPTEMBER 2009 CONSTRUCTION AT $940.3 BILLION ANNUAL RATE The U.S. Census Bureau of the Department of Commerce announced today that construction spending during September 2009 was estimated at a seasonally adjusted annual rate of $940.3 billion, 0.8 percent (1.8%)* above the revised August estimate of $933.0 billion. The September figure is 13.0 percent (1.9%) below the September 2008 estimate of $1,081.2 billion. During the first 9 months of this year, construction spending amounted to $715.2 billion, 12.1 percent (1.3%) below the $813.3 billion for the same period in 2008.
PRIVATE CONSTRUCTION Spending on private construction was at a seasonally adjusted annual rate of $613.9 billion, 0.5 percent (1.1%)* above the revised August estimate of $610.9 billion. Residential construction was at a seasonally adjusted annual rate of $256.0 billion in September, 3.9 percent (1.3%) above the revised August estimate of $246.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $357.9 billion in September, 1.8 percent (1.1%) below the revised August estimate of $364.5 billion.
PUBLIC CONSTRUCTION In September, the estimated seasonally adjusted annual rate of public construction spending was $326.4 billion, 1.3 percent (2.9%)* above the revised August estimate of $322.1 billion. Educational construction was at a seasonally adjusted annual rate of $88.7 billion, 0.1 percent (3.4%)* below the revised August estimate of $88.8 billion. Highway construction was at a seasonally adjusted annual rate of $85.5 billion, 1.0 percent (7.8%)* above the revised August estimate of $84.6 billion.
Tomorrow news: Factory Orders for Sep ABC Consumer Confidence Total Vehicle Sales Domestic Vehicle Sales
Ed Bisquera, Mortgage Matchmaker & Social Media Instructor
I found this a great start to giving ideas on how to use Twitter to drive traffic to your blog or website. What's best about using Twitter, is that it can gain some speedy viral sharing, via retweeting and reposting. I've used Twitter for just a short time and found that I've already seen an increase in my traffic to my blog posts. There has been increase when used with video as well and I'll be posting my daily video blog here shortly. Some of the first 5 tips are:
Communicate a benefit
Blogs have been associated for a long time now with opinion and personal experience. This is often times the way they are portrayed in the main stream media. This may be due, in part, to the desire on some level to frame blogs as a less authoritative resource.
Make claims and promises
A claim or promise is certainly attractive, but because you are working in social media you must always maintain your trust asset. This, along with your content, is a major component to your traffic engine. This means that whatever your claims are, they should be backed up by content or services that meet those statements. Not doing so eats into your trust asset while doing so contributes to it. Halfway meeting it may maintain your status on this level but it also provides opportunities for competitors to surpass you with superior quality. You are better off being comprehensive and in so doing providing a disincentive for other to try and emulate you. What is more likely in this case is for someone to link to you and add their own commentary or insight on top of yours. What this does is embed you in the community as a person that consistently contributes. From there, you can develop the authority to a) sucessfully recommend affiliate products and services or b) market your own.
Personalize
- Rather than speaking in the general sense as in ‘drive more traffic to a blog’, it is better to phrase it: ‘Drive more traffic to your blog’ This is because many people in smaller niches may be of the opinion that a generalized approach is suitable only for sites with a given minimum traffic requirement. By making things more personal, a reader will start to visualize the proposition as applying to him or her.
Use Keywords
- This aids in being found because each keyword can help your tweet be found via different seach criteria. Many of these words work well together and may be searched as a pair, which will push you further up in the search result. Twitter search is used by many to find information but at the same time it does not have the same volume as Google. What this means is that you are competing with fewer people for top ranking. While this might mean a smaller base of users, it also means a more enthusiastic person because they are using a wider variety of tools to find what they want.
Ask a question
- A question can be one that searches for an answer but what tends to be more effective are questions that pose a controversy or are rhetorical. That latter is particularly effective because it states both the content being delivered as well as the fact that you have a possible solution for them.
What is the FOUR Letter Word Asked About Most Frequently Regarding Social Media, at Social Media Marketing Seminars and Classes throughout the United States? (As originally posted on my blog at blog.pdxloan.com)
It's all revealed at the 1:45 mark in this video blog post by Ed Bisquera, Mortgage Matchmaker & Social Media Guy.
Quote of the day:Insincerity is always weakness; sincerity even in error is strength.~George Henry Lewes
• Today's Mortgage Rates Watch & Real Estate/Mortgage News
Rates look like they are sitting fairly stable at the 5.375-5.625% range (5.77%-5.99% APR) on a Conventional 30 YR Fixed Loan, NO pts, 20% down (80% Loan To Value), Owner Occupied, with 740 or higher FICO credit score. Forecasts are predicting a small increase in rate, due to typical activity as 2nd quarter earnings are taken to offset any capital gains.
UPCOMING EVENT
"Getting Connected through Social Media" Classfor Real Estate Professionals, 3 CE Clock hours
Date: Thursday, July 23, 2009
Time: 1 -4 PM
Location: Keller Williams, Downtown Office
915 Broadway Ste 100, Vancouver, WA 98660
== Cost: $27 Early Bird special before Midnight, July 21, 2009 ==
Learn how getting connected and participating in the conversation online where your clients, prospects and audience is, using Social Media tools, is important to your Real Estate business. Produced by Natalie Danielson of Professional Directions/Clockhours.com and taught by Ed Bisquera and Natalie Danielson.
Details at the event signup page here:
Getting Connected through Social Media Class for Realtors.
I came across a post recently about the fact that Facebook will be offering Vanity Facebook URL's, starting this Friday, June 12th at 9 pm for registration. You can read more at the Facebook blog and you'll want to bookmark the registration page, to secure your vanity ID right away. Here's the short of it:
You're able to create a Vanity URL like http://www.facebook.com/edbisquera (no, it's not registered yet, but you can bet your bottom dollar I'll be registering it on Friday at 9:01 PM!) and you can do the same for Facebook business pages as well. So make sure and mark on your calendar to be there to register. But don't worry, there are some ways to protect your unique URL. Check the blog post at Facebook for more information.
Now that we're really seeing a move to utilize Social Media Marketing and using sites like Facebook to connect with others, it's imperative we use these tools to market ourselves easily and Facebook is now making it easier to remember our personal profile page as a unique URL or market our fan/business pages unique URL as well.
I'm sure it would be prudent to snap up say http://www.facebook.com/kellerwilliamsrealty or http://www.facebook.com/remax but according to the blog, there will be some security measures in place to prevent "squatting" of unique ID's and will only allow ONE unique URL per registered Facebook user, registered BEFORE May 31, 2009.
So if you think you're going to try and snag some unique brand or your company name, Facebook has in place to only allow it to the official "owner." But that won't stop or prevent you from thinking hyperlocal when naming your unique Facebook Vanity URL.
You could name it http://www.facebook.com/kellerwilliamsvancouver or http://www.facebook.com/VancouverWAREMax or something that identifies you in your local or regional market. (And no, these links aren't real; yet!) I'm sure my colleagues in my area will be quick to snap up their respective hyperlocal company names soon enough. Just think creatively and you'll also want to come up with something that matches any existing marketing or branding you are already using. **One thing to note, however, is that Facebook says "once you decide on your unique Vanity URL ID, you will not be able to change it or transfer it." I'm sure that will cause some problems, as you may change companies in the future or you'd like to transfer to someone else, but maybe they'll have a better or different way of dealing with that in the future. :-)
In my opinion, this is great for all Facebook users, but I think best for anyone marketing in the Real Estate and Mortgage industry. Now we'll have a unique URL for our Facebook pages and personal profiles, which will just add another line to add to our business cards! LOL
And with a unique Facebook URL, maybe it will make adding friends a whole lot easier. :-)
As a Mortgage Consultant with Bill, I have to reiterate that finding and working with a KNOWLEDGEABLE mortgage professional is key to seeing a CLOSED deal, where everyone wins, homebuyer gets into home and we all happily cash our paychecks! :-)
The fallout below is one of 3 that came from one of my Realtor referral partners and she was not very happy to hear the other lender gave pre-approval based upon guidelines over 6 months old! They should have known the changes to Fannie Mae, Freddie Mac and FHA guidelines and telling the Realtors and buyers involved that this was a "NEW" guideline change from the lender is BS! Simply put, mis-guided information, led to wasting 60 days of time of the buyers (the sellers too, since they were waiting to sell the home to buy another) and the Realtors involved. No one got paid on the deal, since it was a failed sale, and the sellers are now not able to move forward to buy a home. Not knowing HUD, Fannie Mae, Freddie Mac and lender guidelines cost everyone precious time and the ability to get paid.
Here's what I wrote the reputable Realtor in an email:
Based upon conversation with buyers and Realtor, the lender provided a pre-approval based upon ability to borrow and based upon the changes in holding a home while using FHA to buy another home. In order to buy a home using conventional or FHA loan financing AND the homeowner owns a home they will end up keeping to "rent" or "lease" out, they need 6 months reserves for the original home PLUS they must have 25% equity FHA (30% conventional) in existing property OR MORE, or the rent/lease payments cannot be counted toward debt to income ratio AND minimum of 3 months reserves on the new purchase. 6 months minimum of canceled checks may suffice for lack in equity, but may be at lenders' overlay of guidelines.
In essence 9 months minimum in reserves and 25% equity in current home they are planning to rent out or rent can't be used for income qualifying. That may make it difficult to buy in many situations, for those holding onto current property.
That change was introduced to loan professionals through a Mortgagee letter from HUD back in Sept of 2008 and instituted in March of 2009. We KNEW it was coming. The lender for buyers should've known that, prior to any pre-approval offer 45-60 days ago.
In slight defense of the lender, they MAY NOT have gotten the true picture from the buyers (sometimes they overlook
things to tell the lender) but it still rests on the lender's shoulders to fully investigate, ask every question possible to deal with the myriad issues and scenarios that might come up, PRIOR to pre-approval. A competent mortgage professional would do that, my friend. Sorry to hear another failed sale. Perhaps future buyers should attend our home buying seminars to insure a positive loan approval?? :-)
=== end of email ===
So the scenario Bill spoke of, was one of mine that came through our office (yes, I'm a mortgage consultant under Bill, who is the Broker of record :-) and we realized that many Realtors and Loan Officers are still operating on old, mis-guided information regarding lending guidelines as it stands today.
It's not what it used to be and after May 1, 2009, lending guidelines are facing more changes and challenges. YOU must stay up-to-date with knowledgeable professionals and we are confident we are some of those few.
As Bill stated, we are at 72 hours in underwriting (FOR A COMPLETELY PACKAGE, READY-TO-GO SUBMISSION PACKAGE) and 48 hours to docs and 24 hours to fund.
We KNOW what we're doing, have read EVERY updated HUD, FHA, Fannie Mae, Freddie Mac guideline change current as of today's date and we don't offer/give pre-approval to buyers, unless we're 99% positive it will be underwritten.
Don't get your pre-approval from just any old mortgage person. They may not have the motivation to stay educated in the field as a Mortgage Broker/Certified Mortgage Planning Specialist will. We take the time to work with experienced, professional Realtors and take the time to educate, engage and share with our partners and our clients.
You can follow me on Twitter @edbisquera to stay up to date on mortgage trends and cutting edge internet/social media networking technologies.
We are seeing some great times compared to the rough last 12 months that we experienced. Buyers are coming out of the woodwork. Multiple offers are coming in and those Realtors that have learned their lesson in the past are convincing thier listing clients it is in their best interest to include the buyer to be pre-approved with a neutral lender in order to make sure the buyers will close the transaction once it's time to close.
I was really surprised to hear of a fallout last week because a lender was not aware of an "old" guideline- ok a few months old but in this changing market a few months is old news.
Seems like a few lenders out their are still not up on the Fannie Mae, Freddie Mac and FHA guidelines:
Equity Requirement in Existing home:
For the lender to use rental income against the existing property then Conventional requires 30% equity in the existing home and strong cash reserves. FHA requires 25% equity in the home. If you are turning your current property in to a rental but only have 25% equity in the home then you should be thinking about FHA financing for the new property.
Most importantly, if you are hot on renting out your current property so you can purchase 'non contingent', check first with the new lender for equity requirements. These requirements are new and can throw a hitch in someone's plan to purchase non contingent.
As the buyers come ouot its never been more important to team up with a good lender that can basically underwrite in the field. They do not need to submit an application and wait weeks to only be declined. The market will be in the typical spring time frenzy and the faster you and your affiliate team can close on the deals the faster you are able to move onto the next buyer.
We are currently at 72 hours in underwriting and 48 hours to get docs to title and 24 hours to fund! All purchases are priority over refinances and we offer ALL loan programs avaialble with over 130 lenders on line.
Give us a shot- we aim to please.
Bill Black CMP
America One Finance
360-326-8891
Ed Bisquera, Mortgage Matchmaker & Social Media Instructor
Yes, the Wizard is in town and is able to grant the ability to buy a home in today's market. Will you be the one to click your heels and utter "There's no place like home??"
While the below post from the LA Times indicates FHA troubled mortgages are on the rise, the fact remains that it's still going down in history as possibly one of THE BEST TIMES to be a first time homebuyer. The cost of housing is depressed, likely to bottom out in the 3rd quarter and that simply means a first time homebuyer will be able to buy more house for less money and on their current income level.
I think we should focus on the fact that with several incentives in place, and lower than 5% interest rates, will really spark a movement for first time homebuyers to come out of the woodwork and start a trend in buying in coming months. One large trend is found in single women are buying homes in record numbers, according to a recent report from the National Association of Realtors. Seems like there are many "Dorothy's" realize there's no place like home (ownerhsip). :-)
The incentive to buy is further supported by the $8000 Tax Credit that is available to all first time homebuyers (definition: haven't owned a home in the last 3 years) that doesn't have to be paid back and is good for anyone buying between January 1, 2009 and December 1, 2009.
In addition, Fannie Mae's Homepath program (stay tuned for a video on this gem of a program) allows anyone to buy a Fannie Mae-owned home (home that has been foreclosed upon and returned back) with as little as 3% down, no Mortgage Insurance required and NO APPRAISAL REQUIRED as well. This program allows for up to 6% seller concessions on primary, owner occupied purchases.
This program is also WONDERFUL FOR REAL ESTATE INVESTORS: an investor can buy a Homepath home for as low as 10% down, allows 2% seller concessions, Requires NO MORTGAGE INSURANCE and again NO APPRAISAL. My broker I partner with at the mortgage company has just saved 2 deals alone in the last 3 days because of this program and put another single woman into a house, when the deal was previously thought dead. How's that for the mortgage wizard granting her wish?
If you have any questions, please as always, feel free to contact me on my cell (360) 597-8283, Twitter, or send me a message through here.
Best wishes today!
Ed Bisquera "The Mortgage Matchmaker" & Web 2.0 Evangelist :-)
P.S. I just posted 12 listings on Craigslist this week and using tried and true techniques and existing programs marketed with a twist. I was able to get 3 buyer leads in less than 24 hours, and convert one into a buyer with an 4.375% (4.6% APR) FHA mortgage to this first time homebuyer. Message me and I'll tell Realtors and homebuyers how this works IN ANY AREA OF THE COUNTRY. Ed B
The mortgage woes of FHA borrowers are gaining ground. From an Associated Press brief at latimes.com:
The government says the number of troubled loans backed by the federal mortgage insurance program is on the rise as economic troubles mount.
However, Housing and Urban Development Secretary Shaun Donovan is telling Senate lawmakers Thursday that the Federal Housing Administration is "unlikely to face the catastrophic losses borne in the subprime sector." He says in prepared remarks that that is partly because it didn't back loans for more expensive properties that have plummeted in value.
As of February, 7.2 percent of loans backed by the FHA were either 90 days overdue or in foreclosure, up from 5.8 percent last August.
The FHA is the main source of home loans to borrowers with poor credit and low down payments after the subprime lending market's collapse.
I'd be curious to know what percentage will qualify as a "catastrophic." The trend line sure doesn't look good.
-- Lauren Beale
Thoughts? Comments?
Photo: Housing Secretary Shaun Donovan, left, Treasury Secretary Timothy F. Geithner and FDIC Chairwoman Sheila Bair gather at Dobson High School in Mesa, Ariz., for President Obama's recent unveiling of his plan for preventing home foreclosures. Credit: Gerald Herbert / Associated Press
Ed Bisquera, Mortgage Matchmaker & Social Media Instructor
Once upon a time in a land where gas was 75 cents a gallon and bread was 33 cents a loaf interest rates were in the high teens. Of course I'm writing of the 1980's when our economic situation was not too unlike the one we have today although there were vast differences. Yet during this time and shortly thereafter the FHA streamline refinance was born with one purpose in mind: Get FHA borrower into a lower rate and lower their monthly cost of home ownership.
It was much simpler back then to see the savings. Many families came in to refinance from interest rates as high as 15% or 16% down into rates like 9% or 8.5% - that was then - this is now. Families today are scurrying to refinance from 6.25% to 5% and I can't say I blame most of them. After all on a $250,000 loan we're talking about a couple of hundred dollars a month in savings on interest alone.
First let's dispell a couple of myths about the FHA streamline refinance program. Most importantly the FHA streamline is not a "no closing cost" refinance. There are closing costs and they can be paid one of three ways:
The borrower (home owner) can pay them out of pocket The lender can pay part or all of them with an interest rate higher than par They can be rolled into the refinance loan amount
However you choose to pay them, paid they must be. The attorney will not work for free. The underwriter will not work for free. The processor and loan officer will not work for free. Now I know there are a couple of very large banks/lenders telling people they are offering no cost loans. No, the are not. The home owner is paying the closing costs one of those three way. If you are dealing with a mortgage broker instead of a direct lender they are require by Federal law to show you how their commission is applied in the closing costs. Banks and direct lenders are exempt from it but it's still there - nobody does loans for free except maybe a very miniscule number of tru non-profits which I have not lately seen.
Qualifications for an FHA streamline refinance vary from lender to lender. Oh I know you thought HUD made the rules. In a way they do make the rules but those are the base line rules. In other words FHA will not insure a loan that does not conform to their qualifications. The lenders (who actually write the check for the loan) have what are called "lender overlays" to make sure their investors are satisfied with the quality of borrowers getting the funds. In other words if you're a deadbeat you ain't getting no money. (Ain't is Greek for "are not", "can not" or "is not".)
Most lenders today are requiring a minimum middle credit score of 620 or higher even to qualify for a streamline refinance. Fortunately we can still get FHA streamline refinances closed with:
No credit examination (all we may need is a mortgage payoff statement - we order it) No verification of income (employment is required to be verified) No verification of assets (no bank statements or tax returns) No appraisal of value (this applies in almost every instance but check with your FHA professional)
Keep in mind the above applies in most cases when I am doing the loan but you really need to check with your loan officer (not all of them are qualified to handle FHA streamline refinances so I can give you names if you're not in Georgia or Florida or the southeast).
Ed Bisquera, Mortgage Matchmaker & Social Media Instructor
CNN (NBC, CBS, ABC, you fill in the blank for idiot networks PRETENDING to be the deliverer of accurate housing and financing news) DOES NOT OFFER MORTGAGES NOR DO THEY HAVE A CLUE!
My fellow colleague, Ken Cook of Atlanta, Georgia has a post I find very revealing and explains what the media knows and what they CLEARLY DON'T HAVE A CLUE ABOUT. The MEDIA is causing consumers to think rates can be changed by one entity or by the mere mention of lowering rates on their network.
Read this great blog post and you'll see why there's danger in getting your financial and mortgage advice by a pretty face on TV telling you that rates are heading down into the Four's, WHEN THEY CLEARLY HAVE NO IDEA WHAT CAUSES RATES TO LOWER.
Do you agree with this post? Am I unfairly attacking the media? Do you really believe EVERYTHING you hear/read in the media? ;-)
As a mortgage banker I have the distinct privilege of being simultaneously a genius and an idiot. The viewpoint is reached as a matter of perspective and today I get to be an idiot because I have to, once again, undo what the news networks have done. This means I am spending extra time (15 minutes or so) with all of my customers and educate them in what most of the media needs an education. You see it's all over the news today that rates are headed to the fours. Orly?
First let me say I agree that rates are down and may stay down for a week or more. The danger of reporters (here I go again) putting forth information that "rates are headed down into the fours" is that they have no idea what would cause this or even if it is a fact. Having attended a University where many journalism majors have gone on to great things and having known some of them in school I still have to wonder if they are as ditsy today as they were 30 years ago. This is not intended to disrespect all journalists just most of them - BECAUSE they terribly muddy the waters on highly important issues by delivering information they do not understand to the masses who also do not understand.
Next let me add rates are driven by the market - the government does not (yet) mandate rates. Once we become fully socialist then the government can set rates but we are not quite there ... yet. If Mortgage Backed Securities are not producing a profit for investors rates are up - if those same securities are producing a profit for investors rates are down.
Rates are still based on risk. Riskier loans still have higher rates. FHA rates are not the same as straight Fannie rates. Rates in Florida are not the same as rates in Georgia. Rates on a $60,000 loan are not the same as rates on a $180,000 loan. Rates on a loan with 20% down are not the same as rates on a loan with 10% down. Rates with a 680 credit score are not the same as rates with a 755 score. Some investors (Fannie, Freddie, Ginnie) offer programs at Fixed 30 terms that others do not offer. It's not as simple as saying, "the mortgage rate today is 5% and tomorrow will be 4%".
The biggest lie the mortgage industry has ever told you is "Today's Fixed 30 Rate Is ..." and the second biggest lie they have ever told you is "No closing costs ..."
One thing you could see happen over the next few weeks to help keep rates down is based on the very basic economic principal of supply and demand. It is possible that so many people will be buying and refinancing over the next few weeks that rates will need to adjust to help keep the supply of money in check with the demand. This is where the rubber really meets the road and we get to see how many deep pocket investors step to the plate. I don't know the answer, CNN doesn't know the answer and the mighty supreme Congress does not know the answer (they don't seem to know the answer to many questions).
Yes, rates are down. Your local mortgage broker (the one within driving distance from your home so you can throttle them when they mislead you) is required by Federal Law to show you ALL of their income. The lender 3 states away is NOT required to show you all of their income. With a local broker from your area you should easily be able to get the best rates and best closing costs and if you can't that's simply because you don't know how to shop for a mortgage and are continually misled by the media.
EDITED: Only five hours after posting this the rates did a U-turn and headed back up. What say ye media geniuses now, eh?
==
Want to learn how to maximize your online outreach for free ... every week? Listen live to Twitter Tuesday Radio on JCKC with Jason Crouch and me at NOON Eastern on Tuesdays.
Ed Bisquera, Mortgage Matchmaker & Social Media Instructor
This program is an unsung product right now, given that it's really only a couple of months old at most. But getting this information into the right hands will allow us to become better at providing real world, real solutions to helping homebuyers take advantage of historic pricing and low rates.
I know it was briefly touched upon, but getting an up to $8000 tax credit for first time homebuyers (those that haven't owned a home in the past 3 years) is another reason that the it's time to "strike when the iron's hot!"
We have until December 1st, 2009 for those first time homebuyers to take advantage of the $8000 refundable tax credit THAT THEY WON'T HAVE TO PAY BACK!
Fannie Mae Homepath looks to bring home ownership to more people. There are many homes to look at; simply read below to see what properties are available.
Thanks Bill for the original posting. I know we'll be preparing a presentation in the coming week and a video to promote this program.
FANNIE MAY HOMEPATH PROGRAM OFFERS GREAT HOME BUYING OPPORTUNITY
This one could come and go... I finally have a product that I am happy to announce to the world and happy to say it can make the american dream come true!
It almost sounds too good to be true but it is the real deal... 3% down, no mortgage insurance, no appraisal, 6% seller concession, and you don't have to move to the country to get this offer!
FannieMae really wants to get rid of the homes they have had to take back. This offers a fine opportunity to score a low priced home and get a great loan in the process. The loan side of the deal is called the HomePath program and offers buyers some great rates and incentives to take the plunge including a free warranty wiith the home as well.
HomePath is simply a loan program that makes it more affordable for home buyers to purchase some FannieMae held properties. Not all Fannie Mae products qualify though and you can only use a Homepath qualified lender in which we are more then honored to offer this loan.
The features of the program are:
Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Investors with as little as 10% down and no MI!
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance*
No appraisal fees
As you can see, there are a lot of benefits, especially the waving of mortgage insurance that can add thousands a year to your payment along with 6% seller concessions and NO APPRAISAL to kill the deal.
So what's the catch here. There are not too many; FannieMae is very motivated to sell a bunch of homes. Here's what I've found... not all FannieMay homes are eligible but we are fortunate to have some BEAUTIES here in Vancouver, Wa. I was amazed to see a 3 bedroom for under $85,000 that a person could buy for as little as $2600 down and 600-700 month! They also allow for some repairs and will be coming up with a renovation loan for these soon as well.
For more info, to search the FannieMae Inventory check out their website... here. If you need an authorized HomePath lender in Washington or Oregon we would be happy to assist in making your dreams come true. If you need a great real estate team to represent you in the purchase, keep you safe and well informed you should contact Shannon Wheeler at Sundin Realty.
February 24, 2009 Real Estate & Economic Report from Ed Bisquera of Mortgage Express in the metro markets of Portland, Oregon & Vancouver, Washington. Featuring news for homebuyers, homeowners, realtors and the general real estate market.
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War is Declared
Congress and the President have declared war on the weak economy and especially on the housing market. That makes sense because it is the housing market that caused the economy to collapse and we will not have a recovery without a healthy or at least stable housing sector. Immediately after signing the $780 billion Stimulus Bill and putting into law a stronger tax credit and higher allowable loan limits for Fannie Mae, Freddie Mac and FHA, the President wasted no time delivering the second of two strong punches. His housing rescue plan contained several elements that should help the housing market, though it remains to be seen how many will be helped and who will be left out.
The goal of the housing plan is to help nine million homeowners. That is a very ambitious number, especially considering the fact that there are less than 100 million homeowners in the United States. If 10% to 20% of the homeowners are assisted, certainly it will help bring about economic recovery more quickly. The number is not too ambitious considering the fact that millions of homes have already gone into foreclosure and millions more are waiting in the wings. Our news this week will contain a description of the elements of the stimulus package and next week we will cover the President’s housing plan. But we caution that since the final regulations are not published, these details may change in the coming weeks and months.
Rates fell again in the past week. Freddie Mac announced that for the week ending February 19, 30-year fixed rates averaged 5.04%, down from 5.16% the week before. The average for 15-year fixed fell to 4.68%. Adjustables also fell with the average for one-year adjustables decreasing to 4.80% and five-year adjustables falling to 5.04%. A year ago 30-year fixed rates were at 6.04%. "Rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "And consumer sentiment fell in February for the first time in three months to near its lowest level since May 1980, while industrial production slowed in January by more than the market consensus. Meanwhile, the housing market is not doing any better. New housing construction slowed to an all-time record low of 466,000 homes (annualized) in January since records began in January 1959." Note: average rates do not include fees and points. Information is provided for indicating trends only and should not be used for comparison purposes.
Current Indices For Adjustable Rate Mortgages Updated February 20, 2008
Daily Value
Monthly Value
Feb. 19
January
6-month Treasury Security
0.51%
0.30%
1-year Treasury Security
0.67%
0.44%
3-year Treasury Security
1.38%
1.13%
5-year Treasury Security
1.89%
1.60%
10-year Treasury Security
2.85%
2.52%
12-month LIBOR–WSJ
1.904% (Jan)
12-month MTA
1.633% (Jan)
11th District Cost of Funds
2.757% (Dec)
Prime Rate
3.25% (Dec)
Last week, President Obama signed into law the American Recovery and Reinvestment Act of 2009, which contains nearly $800 million in economic stimulus spending and tax relief designed to help individuals and businesses in the current economic climate. The following is a list of some of the major provisions of the new law without significant details which will follow as rules are issued. Note that many of the benefits are temporary and/or are phased out for higher income individuals.
Higher Loan Limits. Conforming and FHA mortgage limits in high-cost areas were temporarily raised back to the limits which expired at the end of 2008. This will mean an increase from $625,000 to just under $730,000 in higher cost of living areas such as Northern California and New York City. The bottom line will be lower rates in these areas because "jumbo" loans carry a higher rate.
"Making Work Pay" Tax Credit. For 2009 and 2010, the Act creates a refundable tax credit of up to $400 for working individuals or $800 for couples with modified adjusted gross income (MAGI) that does not exceed $75,000 or $150,000 respectively. An additional credit was passed for those who do not work, such as the retired and the disabled.
AMT Exemption Raised. The Act raises AMT exemption amounts above 2008 levels to $70,950 for joint filers and surviving spouses (up from $69,950 in 2008); and $46,700 for single filers and heads of households (up from $46,200).
First-Time Homebuyer Tax Credit. The Act expands the low-to-moderate income first-time homebuyer tax credit, originally enacted under the Housing Assistance Tax Act of 2008. The maximum amount of the credit is increased to $8,000 and the Act eliminates the repayment obligation for qualified principal residences purchased from January 1, 2009 through November 30, 2009. To be exempt from repayment, the homebuyer must stay in the home for three years.
New Car Deduction. Effective for new vehicle purchases on or after February 17, 2009, the Act allows qualified taxpayers an above-the-line deduction for all state, local sales and excise taxes paid relating to the first $49,500 of the purchase price of a new car, light truck or other vehicle through the end of the year.
Education Tax Credit. For 2009 and 2010, the Act expands and renames the existing HOPE education credit, increasing the credit amount (subject to income limits) from $1,800 to $2,500 a year and applying the credit to all four years of college. The Act also makes 40% of the credit refundable and adds course materials as qualifying expenses.
Bonus Depreciation. The Act extends the first-year 50% bonus depreciation enacted under the 2008 Economic Stimulus Act for new business equipment purchases through December 31, 2009. The Act also extends through 2010 bonus depreciation for other qualified property.
Net Operating Loss Carryback. The Act enables qualified small businesses with average gross receipts of $15 million or less to carry net operating losses back for up to five years. The carryback provision applies to any NOL for tax years beginning or ending in 2008
Ed Bisquera, Mortgage Matchmaker & Social Media Instructor
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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I came across a post recently about the fact that Facebook will be offering Vanity Facebook URL's, starting this Friday, June 12th at 9 pm for registration. You can read more at the 
First let me say I agree that rates are down and may stay down for a week or more. The danger of reporters (here I go again) putting forth information that "rates are headed down into the fours" is that they have no idea what would cause this or even if it is a fact. Having attended a 
Rates fell again in the past week. Freddie Mac announced that for the week ending February 19, 30-year fixed rates averaged 5.04%, down from 5.16% the week before. The average for 15-year fixed fell to 4.68%. Adjustables also fell with the average for one-year adjustables decreasing to 4.80% and five-year adjustables falling to 5.04%. A year ago 30-year fixed rates were at 6.04%. "Rates followed bond yields lower this week as recent economic reports suggest the economy is still slowing, which reduces the future threat of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "And consumer sentiment fell in February for the first time in three months to near its lowest level since May 1980, while industrial production slowed in January by more than the market consensus. Meanwhile, the housing market is not doing any better. New housing construction slowed to an all-time record low of 466,000 homes (annualized) in January since records began in January 1959." Note: average rates do not include fees and points. Information is provided for indicating trends only and should not be used for comparison purposes.
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