Rate Watch - For the week ending January 19th, 30-year fixed rates averaged 6.22%, edging up 0.03 percent from the previous week. The average for 15-year fixed mortgages rose slightly to 5.93%. A year ago 30-year fixed rates were at 6.04%.
----
Not much on the economic calendar until Friday's New Home Sales report is due. There is some concern that the home sales numbers may come in stronger than expected showing the housing sector continues to turn around and further indicate a stronger than expected economy.
----
Starting this year Equifax and Experian - two of the nation's leading credit bureaus - will charge a fee each time a prospective borrower's credit file is accessed. The policy is intended to improve the ratings agencies' compliance with the federal Fair Credit Reporting Act. Given that "reissue" fees will be imposed each time a mortgage broker shops an application to a lender, with applications from marginal-credit and low-income borrowers generally going to a half-dozen or more lenders, National Association of Mortgage Brokers President Harry Dingham says some borrowers could wind up paying $100 to $200 more.
----
Ann Arbor Buyer and Seller Tidbits - From the 2006 Profile of Home Buyers and Sellers prepared for Ann Arbor Area Board of Realtors by the National Assoc. of Realtors.
In our marketplace first-time home buyers constituted 42% of all home buyers (36% nationwide).
65% of buyers who purchased a home in Ann Arbor used the internet frequently to aid in the search for their new home (59% nationally). 36% of the buyers that purchased a home from 1997 -2006 found the home they purchased through a real estate agent (25% from the internet and 18% from a yard sign). That number, 36% who found the home through an agent has dropped steadily from 50% in 1997. The number using the internet has grown from 2% in 1997 to 24% in 2006 (nationally).
----
An update on engaging appraisers: A reminder regarding OCC (Office of the Comptroller of the Currency) Regulations. In a purchase situation the appraiser is provided a complete copy of the purchase contact and is required to analyze it. In refinance situations, to promote independence in the appraisal process and to avoid pressure on appraisers for values, no expected or estimated property value is to be communicated to the appraiser. We are not able to give the appraiser any loan amount, borrower's estimate of value, or any indication of direction of value for a refinance transaction. This has been instituted on refinances to help the appraiser arrive at an unbiased value for a home.
----
The Mortgage Bankers Association reports that upwards of 80% of outstanding mortgages were made since 2002, as scores of homeowners refinanced to take advantage of lower interest rates. The group adds that the youngest mortgages are in the subprime category and that a "measurable number" of borrowers owe more than their properties are worth.
----
The odds of an average golfer making a hole-in-one are 12,000 to 1. Good luck!!
----
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.
©Copyright 2007 Ann Arbor Mortgage Company, LLC
;)
;)
