Courtesy of W. R. Starkey Mortgage 

Market Comment - Week of June 29th, 2009

Mortgage bond prices shot higher last week driving home loan rates lower. Mortgage rates found support from investors around the world following last week’s Treasury auctions. The Treasury sold bonds totaling 104B that were well received by foreign central banks. The indirect bidder participation, an indication of foreign demand, was near all-time highs. For the week interest rates fell by over a full discount point.The employment report Thursday will be the most important release this week. The ADP employment report will give an earlier glimpse into the employment situation though the two reports are derived from different data so there could be some divergence. Strength in the other economic data will do little to help mortgage interest rates improve.

GSEs

Government sponsored enterprises (GSEs) are financial services created by Congress. Two of the most important GSEs in the mortgage industry are Fannie Mae and Freddie Mac. These corporations are designed to make credit available to targeted borrowers in an efficient manner. Fannie and Freddie were completely privately owned. However actions by the Treasury and Congress within the last year now blur the ownership. The credit crisis resulted in Fannie and Freddie facing huge liquidity concerns. Their insolvency under fair value accounting resulted in drastic measures to prevent total failure. The Treasury placed the GSEs in conservator, increased the lines of credit to the GSEs, and infused both companies with $100 billion for an ownership stake of 79.9%. This US Government ownership of these companies leaves many unknowns. While conservatorship implies temporary control, the Treasury exit strategy remains unclear and has yet to be revealed.The supply and demand characteristics of Treasury bonds and mortgage-backed securities (MBSs) issued by Fannie and Freddie traditionally differ. Treasury securities represent money needed to fund the operations of the US government. MBSs, on the other hand, represent borrowing by homeowners. Because homeowners can sell or refinance their homes, investors in 30-year mortgage-backed securities usually see principal repayment in significantly shorter periods of time. In terms of demand, Treasury securities are regarded as “risk free” investments, and often benefit from a “flight to quality” in times of financial crisis.

www.AndreaKindley.com

    MORTGAGE RATES ARE EXTREMELY ATTRACTIVE

Housing Prices are Incredible and Mortgage Rates Awesome. A winning combination. I will be available the entire 4th of July weekend so please give me a call if your borrowers needs to be pre-qualified or to run numbers to see what they can afford to purchase in their comfort zone. Andrea Kindley 704-904-6371

Conforming Rates $417,000 and lower

FHA 5.375%

USDA 5.50%

15 Year Fixed 4.875%

30 Year Fixed 5.50%

Non-Conforming Rates $417,001 and Higher

30 Year Fixed 6.00%

15 Year Fixed 5.00%

10/1 ARM 6.00%

7/1 ARM 5.

Closing costs highest in New York

FROM NORTH CAROLINA ASSOC. OF REALTORS

New York, Texas, Florida. For the second straight year, those are the most expensive states in which to get a mortgage. Nationwide, the average origination and title fees on a $200,000 mortgage this year totaled $3,118, according to Bankrate’s annual survey of closing costs. The fees in the survey don’t include taxes, insurance or prepaid items such as prorated interest or homeowner association dues.

Fees in New York City were highest, averaging $4,016 in Bankrate’s survey. Houston came in second, with fees that averaged $3,975. After that came Buffalo, N.Y., with fees averaging $3,845, and then Miami, at $3,683. North Carolina had the least expensive closing costs in the survey, at an average of $2,650. The previous year, Indiana took the last spot.

The annual survey of online lenders is conducted by obtaining fee estimates for a $200,000 mortgage in each state’s most populous city.

Source: Bankrate.com

In today’s Real Estate market there are a great number of wonderful buys out there for those who are looking for a new home.  The market is full of homes that are ready to be snapped up by the savvy buyer and interest rates continue to be at all time lows.   Yet, large numbers of buyers are not taking advantage of this market and one reason may be the fact that their credit score is not up to the standards the lenders are looking for. 

With the problems that have occurred with home lenders during the last year many have made the requirements much more restrictive and difficult to obtain.  The best advice that I can pass along is to work to maintain a high credit rating to make yourself available to take advantage of these excellent buys.  If you have not done so, contact a lender or if you do not know a lender ask your real estate agent to suggest a lender.  This is where you want to begin your search for your new home for several reasons.

Your home lender will let you know if you are qualified to purchase a new home and if so just how much home you can afford.  When you are ready to make an offer for your dream home you have the advantage of knowing you are approved for a loan and in a much better position to negotiate with the home seller.  Should you however not qualify for a home loan, many lenders will provide you information and guidance on how to improve your credit score to prepare to purchase your home in the future.  There are a number of credit counseling sites such as www.restoreyourscore.us that will also be willing to assist you improve your credit score.

If you have any questions about your credit score or you would like the name of a lender to contact, please give me a call and I will be glad to assist you in working toward your new home purchase.  Remember, your credit score goes with you and is an important part of your financial life.  Call for assistance today at 828-310-4204.

The unemployment rate has been big news in most areas for months now affecting millions of American workers.  Many workers who have worked at a company for 20 plus years suddenly find themselves competing against a much younger work force in today’s market.  The problem has been how to make yourself noticed when you respond to an ad for a position or attend a Job Fair in the hopes of landing the position that will put you back to work.  More and more workers over the age of 40 are looking to networking and have set up formal groups of professionals to share information about their job search.  Networking has allowed many of the baby boomers, those born between 1946 and 1964, the opportunity to share information and relationships during their search.   Employers look to networks or their contacts to find the proper person to fill a position in their company.  Networking will allow you the opportunity to build relationships and get your name known within a circle of professionals.  When asked they can be a support group to those in need of the right person.  If you are unemployed and seeking help in finding a new position, look for a networking group in your area.  Plan on meeting and expanding your area of influence to get your name out to those who are looking for your skills.

According to the National Association of Realtors the existing home sales increased slightly in February. Sales activity is expected to remain somewhat soft with many people thinking about  additional layoffs and buyers waiting for additional housing provisions in the economic stimulus package.

Statistics from the NAR show that existing-home sales including single-family, townhomes, condominiums and co-ops – rose 5.1 percent to a seasonally adjusted annual rate¹ of 4.72 million units in February from a pace of 4.49 million units in January, but are 4.6 percent below the 4.95 million-unit level in February 2008. Seasonal adjustment factors are more volatile in winter months, but sales rates over the past few months show dampened sales activity.

Many of the home sales in February are being attributed to first time home buyers looking for bargains on their first purchase.  With the new First Time Home Buyers Tax Refund of up to $8,000, the unheard of low interest rates, and the number of bargains available this is a remarkable time for first time home buyers to take that plunge.  This may seem like a scary step and you may think, Lets Wait.  When this opportunity is gone you will always wonder, Why Did I Wait? 

Distressed sales, foreclosures have made up nearly 40 to 45% of the market over the last few months and there are many more good buys available.  The National Median Price of a home in the US is $165,400, down 15.5% from just last year.  The market does not remain still and you will see the changes start going back up within the next few months.  West Coast realtors are reporting the price on homes there are starting to rise for the first time in over three years.  This is the time to find a realtor that you are comfortable with and discuss just what you are able to do and how much home you can afford. 

Greetings and welcome to my new Blog.  This is a new world for me and I am looking forward to hearing from as many of you as will return emails to give me suggestions on how to improve my postings.  The real estate market has gone through a very bumpy market the last few months and we are not out of the woods yet, but we are improving each day.  I am seeing movement in the Catawba Valley area and hearing reports from many that their business is starting to show signs of improvement.  Personally I have a deep conviction and belief in my Lord and in the people of this area that we will make the economy better people will get back to work.  Homes will start selling and we will see better times. 

Again, thanks for reading my blog and let me hear from you, send me your feedback and help me to improve my site and provide the information that you need and can use about the real estate in the Hickory and Catawba Valley area.

Thanks,

Tom 

Welcome to Tom Triplett’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Mooresville.