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Darrell Walters

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Recovery In The Housing Market?

05-05-09
Darrell Walters
In this video, Robert Freedman of Realtor ® Magazine and Lawrence Yun, NAR Chief Economist, discuss the recently released Pending Home Sales Index. As an indicator that the housing market is improving, the Pending Home Sales Index increase 3.2 percent in the past two months. The Index has a drawback in that it is based on homes under contract that have not actually sold. With lending guidelines tighter, the possibility exists that some of these contracts will not close. The positive news of this report is that demand for homes have increased. With numerous factors influencing demand including historically low interest rates and lower home prices, Lawrence Yun believes the $8,000 tax credit is positively influencing first time home buyers. Especially considering that 53 percent of home contracts in March were first time home buyers. An example of this increase is seen in the South as the Index increased 7.7 percent over this time a year ago. With increased demand, housing prices should increase in the coming months. Source: Pending Home Sales Rise, Housing Affordability Near Record National Association of Realtors May 4, 2009
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Understanding the Meeting of the Federal Reserve

05-01-09
Darrell Walters

Yesterday, the Federal Open Market Committee met and voted to leave the Federal Funds Rate unchanged at 0.00 - 0.25 percent. In a positive move, they also announced a continued push to purchase mortgage backed securities through the end of 2009, including $300 billion in Treasury securities this Fall.

The FOMC announced that the economic outlook has improved since March due to "easing of financial market conditions," but continues to contract at a slower pace. They continue to be concerned over employment issues, tight credit, and weak sales prospects.

What does this news mean for potential home buyers or those looking to refinance? With household spending showing signs of stabilizing, the Dow closed up yesterday at 8,185.73, causing mortgage rates to increase.

Rates may continue to increase depending on the Fed's response to inflationary pressures while they continue purchasing mortgage backed securities.

Source:

Parsing the Fed Statement

The Wall Street Journal Online

April 29, 2009

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The Reality of the Real Estate Market

04-29-09
Darrell Walters
In this 3 minute video from MarketWatch, real estate economist Delores Conway describes the current real estate market. Ms. Conway says that the housing market is improving with a 50/50 split in new home purchases from first time home buyers and long term property investors. She recommends that now is the time to buy and take advantage of the stimulus plan if you are planning to live in the home for the next 3-7 years. For investors, she is seeing an increase in purchasing foreclosures for a longer term investment. Now is not the time to consider “flipping” as returns are no longer in the double digits. For more information on financing your home purchase email or call 678-648-5626.
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FHFA Monthly Mortgage Rate Update

04-28-09
Darrell Walters

Today, the Federal Housing Finance Agency announced a report detailing mortgage rates for the previous month. The highlights include:

1. The average interest rate on conforming fixed mortgages
2. The average loan origination fee

For the month of March, the average interest rate for a conventional 30 year fixed loan was 5.05 for an increase of 2 basis points. The average interest rate on a 15 year fixed rate loan decreased to 4.78 for the month. This report did not sample adjustable rate mortgages. These rates are determined by loans that closed during March 25th through the 31st, although rates are typically locked much earlier than the actual closing date.

Another aspect to the FHFA report details loan fees. The initial fee increased to .60 of the loan amount in March while the average loan amount increased by $1,000. A third of the loans originated as "no point" mortgages, a decrease from the previous month of 43%.

For a free up-to-date rate quote or a consultation to determine the best loan for your individual situation email dwalters@integritymtgonline.com or call 678-648-5626.

Image Source: FHFA Reports Mortgage Interest Rates

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Bankrate.com Mortgage Trend Index

04-23-09
Darrell Walters

The April 23rd release of the Bankrate.com Mortgage Trend Index is available with the experts saying that rates aren't going anywhere fast.

Here are the predictions for mortgage rates in the next 30 days:

  • 09% predict mortgage rates will increase
  • 19% predict mortgage rates will decrease
  • 72% predict mortgage rates will remain unchanged

Holden Lewis, senior reporter of Bankrate.com states, "Mortgage rates have held in a relatively narrow range in the last few weeks." The Fed is watching inflation very closely as they continue to purchase mortgage backed securities. Rates could change in either direction depending on the outcome but as of now rates remain steady.

Remember this mortgage trend index is for conforming rates only. For your free mortgage consultation and information regarding current mortgage rates email me or call 678.648.5626.

Source: Bankrate.com

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