Joe Harris

Let me make a statement, and I hope you truly digest what I am about to say: the interest rates on mortgages here in Brevard County, Florida are about 1/8% off of their lowest levels in history. That means that if you qualify for a mortgage, you could potentially get a better rate on your loan than just about anyone in history. With interest rates and home prices as low as they are, and with the first time homebuyer tax credit extended into 2010, people should be lining up to buy homes. However, these rates have only one way to go, and we are headed there soon.

One of the biggest factors in our low rates right now is not the Fed's decision to keep the overnight rate as low as it is, rather it is from their decision to continue to purchase mortgage backed securities in the many Billions of dollars per week. When this purchase program ends, the demand for Mortgage Backed Securities will be less, therefore the price will decrease, and the yield (or interest rate) will increase.

Another factor that is keeping rates low, has been the low threat of inflation. While inflation is not happening right now, there are many concerns of inflation coming once the economy starts to improve. We are already seeing signs of inflation as the Core CPI (Consumer Price Index) came in higher than expected, and a little higher than this time last year. It is inevitable that when you dump as much into the economy as we have, and when the cost of money is as low as it is that we will see inflation. In inflationary times, bonds are not as attractive because they become devalued.

So, with Inflation around the corner, and the Fed finishing their Mortgage Backed security purchasing program coming to an end in 2010, interest rates are going to increase. The increase in interest rates will affect buyer's purchasing power, as well as their cost of money. I have said it before, and I will say it again: Now is the time to buy! Rates are low, but rising; home prices are down, but will go up; sellers are generous, but they will be greedy. Please take advantage of this opportunity, before it goes away. If you are currently renting, talk to a professional to see if you can buy; if you know someone who is renting, encourage them to see if they can buy.

Please join us this Thursday October 29th from 4pm to 6pm.

Is the Market Changing?

Brevard County real estate sales continue to thrive. New listings are down, sales are up, and interest rates are still at historically low levels. With sales up almost 20% year over year, and inventory down about the same, it seems as though the market is moving at a fairly decent pace. So ask the question: is the market changing?

Sales continue to show strong numbers, and inventory is decreasing. With 79% of the sales being under $200,000, buyers are still looking for the bargains. These "bargains" are going fast, as 37% of September sales sold in less than 30 days. That means that if the price is right, the house will sell, fast! I do not think we are in a sellers market, however, in the lower price points, it is starting to feel that way.

With 60% of homes being financed in the Brevard County area, buyers are still taking advantage of the historically low interest rates. With the majority of the financing being done through FHA and VA loans, many are enjoying the benefits of these government insured and guaranteed loans. With the $8000 First time Home Buyers credit still being offered, first time homebuyers are rushing to the market to find their dream home, however, the deadline is fast approaching.

All in all September's Brevard County mortgage and market data proved to be in line with the theme that the market is improving and changing. Sales are up, inventory is down, rates are still low, and with incentives to purchase for first time homebuyers, it is an amazing time to purchase real estate! So, make sure that you speak with a mortgage professional to get an idea of you purchasing power and financing options, and then go out there and get yourself a deal before the market has "changed"!

There is much talk out there of retail lenders in Brevard County not closing loans in 30 days. I am still closing loans in 30 days. While there are instances where more time may be needed, a normal transaction can be completed in this time. With the First time homebuyer program coming to an end on November 30, make sure that you are working with someone who can close your loan in a reasonable amount of time.

Of course that timeline comes with some conditions, and here are the caveats: I need to have all necessary documentation including a clear fully executed copy of the contract and all addendums, and all needed buyer documentation and signed disclosures. There may be items outside of my control ie...appraisals, inspections, audits, and the like that could affect that timeframe, but again these are outside of anyone's control.

With many different options and choices for my valued clients and business partners, there is no reason to go anywhere else. I have a level of service that will astound any client or business partner, and I always keep all parties informed throughout the process. With a proven track record, and hundreds of wowed clients I am the person who you can trust with your business.

Many Thousands of Americans have had to sell their house through a short sale in the past few years. Who would have guessed a few years back that prices would plummet like they did? Here in Brevard County, home prices in some areas have been more than cut in half.

If you had to sell your house short, more than likely the credit report will show a mortgage settled for less than owed. If you go to apply for a mortgage, there are new rules surrounding this type of derogatory credit. The new rules for Fannie Mae says that it must be 2 years from the completion of the short sale, with no exceptions. This is fairly straightforward. If you had a short sale in the last two years, you are ineligible for a loan which is bought by Fannie Mae (that is all conforming loans, or anything that is not government).

US Department of Housing and Urban Development (HUD), who determines the rules for FHA loans, has not made a ruling on short sales as of when this article was written. While this may sound promising, the majority of the lenders are treating short sales on FHA loans like they do on conventional loans. However, there are a few lenders out there that will entertain a short sale if there are extreme extenuating circumstances prior to two years. Otherwise, like on a conventional loan, you must wait two years.

So here is the long and short of it: if you have recently experienced a short sale, you will be ineligible for a conventional loan for at least 2 years; you may be eligible for FHA financing, however, you will have to prove that there were extenuating circumstances. These extenuating circumstances could include loss of job, death of a wage earner, hospitalization, or some of these sorts. Additionally, you cannot have had any mortgage lates in the last year. For a loan to be considered prior to 2 years, it must be strong.

There is life after short sales, however, it seems as though for loan qualification purposes, it starts after 2 years for most. This is really not that long of a time, and there are probably some people who went through a short sale a few years back that are ready to buy again. For more information, contact Joe Harris.