7 expected steps for motgages in 2011

Analyst and director of Institutional Risk Analytics, Christopher Whalensaid on Bloomberg television: " The foreclosure crisis is slowly killing the nation's economy, and the government has no idea what to do" and that " the nation is only one quarter of the way through the foreclosure crisis"

So anyone knows what is going to happen in 2011?
"2011 is going to be the peak," said Rick Sharga, a senior vice president at foreclosure tracker RealtyTrac Inc. The firm predicts 1.2 million homes will be repossessed this year by lenders.

Nevada, Arizona, Florida, California steadily are affected the most from the economic downturn.

According to " Nevada posted the highest foreclosure rate in 2010 for the fourth straight year. One in every 11 households received a foreclosure filing last year. In December, foreclosure activity increased 18 percent from November with a 71 percent spike in bank repossessions."

Mortgages will adjust accordingly, experts predict:

*** 7 Mortgage Trends To Expect In 2011 by Michele Lerner- Investopedia, 1/14/2011 (Home Trend)
read more >>> https://www.propertyid.com/platinum/ArticleView.asp?id=930

• Mortgage rates will slowly rise throughout the year

Holden Lewis of Bankrate wrote this past fall that economists had predicted a rise in mortgage rates by the third quarter of 2010. At the end of 2010, mortgage rates began to climb out of the 4 percent range and slightly above 5 percent.

• Overall demand for mortgages will decrease

As result of the slow economic growth and a lack of consumer confidence the total mortgage originatios will decline.

• Mortgage refinancing applications will drop

Refinancing will decline substantially as the homeowners have difficulty obtaining a loan approval because of reduced equity or credit or income challenges. The MBA predicts that refinancing activity will drop below 40 percent of mortgages in 2011

• Mortgage applications for a home purchase will become a greater part of the market

The recent trend of stabilizing home prices will increase the number of applications for a mortgage for home purchase.

• Jumbo loan mortgages will be more attractive

In the last quoter of 2010, mortgage rates on jumbo loans decreased, which will likely spur refinancing applications and purchase applications for the high-end housing market.

• All-cash purchases will become a larger part of the market

Aready we see an increase in all-cash home purchases. The trend will continue and become a significant portion of the market in 2011.

• The mortgage loan process will remain slow and complex

The new level of documentation and verification that is required for a loan approval will not slow down the process but the opposite... Holden Lewis at Bankrate says even if the number of loan applications drops, lenders anticipate that the time between application and closing will continue to take as much as 60 days. (and even 75 to 90 days)