Mortgage and Real Estate News

I am excited to launch my new hub. Stay tuned for some great content within the coming weeks as well as timely updates for both the mortgage and real estate markets.

Mortgage rates can be a real roller coaster ride, especially if you are moving and there are not many sites out there that provide close to real time mortgage updates, dummied down for the average Joe. And as far as real estate, that news is dominated by some biased real estate compamy  who always seems to have an overly sunny perspective.

So if youa re moving, get excited about getting your basic mortgage rates and real estate news, all in one spot.

Back in the day, the rule of thumb was that mortgage rates were inversely proportional to housing prices, always giving the market some semblance of balance. Nobody was predicting the housing market to significantly rebound at the beginning of 2010 but almost everyone was saying that mortgage rates were heading back up, especially with the Fed's pledge to stop buying mortgage-backed securities. It would have meant the slow return of the status quo with rates heading back towards 6 while home prices continued to stabilize But here we stand today, with 30 year fixed rates dipping below 4.25, according to our favorite site for real time updates, Mortgage News Daily ! This is just crazy and proves that mortgage professionals are worst than weathermen , when it comes to predicting the future. Those record lows of 4.5 during December, 2009 were supposedly insurmountable. The mortgage floor is not very stable but what a great time to be buying a home. (assuming of course that you have gainful employment, which is a pretty strong assumption) You would receive record low mortgage rates and depressed housing prices. You are not supposed to be able to get both of those things together!

So if you are one of the lucky people there who timed your purchase perfectly and are locking into these historic rates, you can now start focusing on other areas of your pending move. As far as hiring a mover, a great way to save money is to get free moving quotes and let the movers compete for your business. The form only connects you with prescreened moving companies that are licensed and insured, guaranteeing that you receive the lowest moving company rates. Also, you your upcoming move is across the state lines, check out this great post about long distance moving.

So I am curious to hear if anyone out there things that 4.0% is actually possible for the 30 year fixed. If I wrote this statement a year ago, I woud be immediately driven to the funny farm. It might actually be a legitimate question now!

Here’s a scary fact. Foreclosures just topped 100,000 in September  for the first time,  it’s expected to slow over the next couple months, mainly due to questionable paper. (nothing to do with the economy getting better.

In the fourth quarter , several banks  have paused their  foreclosure processes to review irregularities that have been called into question in recent months.

According to reality Trac, all 50 states has recently  launched a joint investigation of the mortgage industry after stories  of mortgage bankers  signing foreclosure documents without knowing their contents. Talk about jumping the gun.


Anyway this decrease over the next 3 months could be the calm before the storm  as foreclosures could spike  if lenders are able to  resolve these paperwork inconsistencies.
However, it’s bad news either way. According to James J. Saccacio, chief executive officer of RealtyTrac, if the documentation and process  issue cannot be quickly resolved , we could see a negative  effect on the overall housing market as sales of pre-foreclosure and foreclosed properties, which account for nearly one-third of all sales, dry up and the existing  inventory of these distressed properties grows - causing more of a decline in  home prices" Saccacio said.

Leaving Las Vegas continues to be the trend as Nevada posted the highest forclosure rate for the 45th straight month!

Lower mortgage rates to the rescue?

Well we don’t have the first time buyer’s incentive anymore to pump up home process but mortgage rates are now ridiculously low for these buyers.  Would you believe as low as 3.25%! According to the  Pennsylvania Housing Finance Agency, that’s with 0 points on a 30 year fix if you have not owned a home in the past 3 years and live in Pennsylvania. We have not rates like this the GI bill that immediately followed World War II.

Even without the $8,000 incentive, these unprecedented rates, the massive supply of current inventory and an insane Buyer’s market, makes it  the greatest opportunity for a first time buyer in human history. Historically speaking, you do not usually receive low rates and lower home prices.  That’s win-win for any buyer and all I can say is that it sucks to be selling a home right now.

Not so good news with December Housing starts but the bad weather may have played a role. Still, more evidence that the housing recovery has not yet begun and mortgage rates are starting to rise as well, yikes. Anyway, here is the video:

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The west was the only regions that showed increases.

Although it feels like there is  a glut of homes for sale, there ares still not that many new homes being built cause sales are trailing the homes under construction .  As long as that  trend continues, unfortunately we will still be stuck in a depressed housing industry.

When you are moving into a new house,  you will be surpised as to how just a slight increase in your mortgage rates will impact your monthly payment.  So it is best to shop around and compare rates as opposed to just going with the first mortgage company you contact .  As surprised as you might be with how much your  monthly mortgage increases for each quarter point increase in rates, you then need to multiply that by 360 to have perspective on the full course of the loan!  (assuming of course you are in a 30 year fixed)  Sound complicated? Then, I have a fun little exercise for you.  it is best to play around with a mortgage calculator in order to understand, and more importantly, no longer fear the numbers!  I found a great calculator for you that aslo included PMI, property taxes and homeowners insurance, which many times  is bundled into your monthy payment.  So check out:  

Mortgage Loan Info

Although rates can vary daily, even hourly, based on market conditions, they also vary by mortgage company.  So don't be afraid to shop around. My advice is to play around with the mortgage calculator by inputting  different theoretical rates so you really get a good understanding of the importance of comparing rates!

The real estate  market is still slumping and mortage  rates are still realtively low, so  you can still  get great deals on a house in 2011 but you want to lock in a rate as low as possible to maximize your savings. Of course , you usually need 20-20 hindsight to know exactly when rates hit their lowest but if you find a good mortgage company that you trust, they will advise you as to when is the best time to lock down your rates.

So if you are moving into a new home, I wish you luck in timing the market. Regardless, it looks to be a great year fro home buyers but keep the violin strings tuned up for home sellers!