September 30, 2009
September 29, 2009
With the deadline to the first-time homebuyers tax credit program just around the corner, some may believe that they have missed their chance.
This may not be the case; the trick is to find a home that can close quickly without having to wait for a tour. Ask your agent some important questions that may not be addressed on the listing, such as…
- Is their any mold in the home?
- Are their extensive repairs that need to be done?
- How long has the property been listed?
- Are there any other offers that have been written?
- How old are the appliances in the home?
- When do the current homeowners need to move out?
- What are the neighbors like?
If all the answers are to your liking; all you have left to do is make certain that you can begin the process right away and that you have all your financing information ready and available. You could very well be in your new home with a tax credit by November 31, 2009!
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September 28, 2009
Mortgage interest rates for a 30-year fixed mortgage remained at 5.04% last week, according to mortgage giant Freddie Mac. The rates are above the record low of 4.78% that we saw in the spring; however they are still attractive enough to raise home loan rates by 13%.
The program that was put into place by the Federal Reserve to keep the mortgage rates down was scheduled to terminate by the end of 2009. The Fed has now decided to extend the program until March of 2010, allowing the central Bank to have three extra months to purchase $1.45 trillion in mortgage-backed securities.
These rates will not last forever, homeowners that are looking to refinance; now is your chance.
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September 25, 2009
After a two day meeting, the Federal Reserve suggested this week that the recession is finally over! According to Ben Bernanke, Fed Chairman, last week “the recession is likely history”. It was believed that the Fed would buy $1.25 trillion in mortgage backed securities and $200 billion in mortgage related debt by the end of the year, in an effort to lower mortgage rates. This week, the central bank claimed that it would buy a total of $1.25 trillion by March 31.
According to Conrad DeQuadros, an economist with RDQ Economics, “I think that’s very significant, because it shows the Fed believes mortgage markets still need government support”. He claims that by stretching out the program, this would ensure a “smoother transition to more robust private lending.”
Other economists are still skeptical. Bruce McCain, the chief investment strategist from Key Private Bank, states that “the maneuver also means that the Fed is slowing down its purchases amid less constrained mortgage lending.”
Although, the Fed claims that the worst is behind us, the sky-rocketing level of unemployment across the nation is constraining consumer spending. Until the Americans begin to become employed once again, the economy will remain hindered.
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September 24, 2009
According to the most recent housing data that was released by Florida Realtors (once known as Florida Association of Realtors), in a year to year comparison, existing home sales have risen for 12 straight months in a row!
The median price for existing homes in July, for the state of Florida, was $147,400, which shows a 22% decline compared to July of 2008. National Association of Realtors claim that the amount of foreclosures and distressed properties continue to drag the home prices down.
The mortgage interest rates for a 30 year fixed mortgage were down to 5.19% for the month of August this year, according to mortgage giant, Freddie Mac. With all these positive signs of a recovering market, is it any wonder that home sales are on a drastic rise?
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September 23, 2009
According to the Federal Housing Finance Agency, home prices rose .3% in July 2009 compared to June of 2009.
Although the index is still 4.2% below levels that were seen the year before, this is just one more sign that the housing industry is beginning to stabilize. Typically the index bases is figures on loans that are guaranteed or owned by mortgage giants, Freddie Mac and Fannie Mae.
Some economists believe that the prices will begin to drop again if the amount of foreclosures within the inventory begins to overtake the home sales, a scenario that is believed to occur once the First-time homebuyer’s tax credit program expires on November 30 of this year.
According to Nicholas Tenev, Barclays Capital economist, “We think house price indexes are likely to edge somewhat lower in the fall when foreclosures become a larger share of home sales.”
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September 22, 2009
The high national unemployment rate continues to push the rate of mortgage loan delinquencies to a level that we haven’t seen in years. According to Reuters, 7.38% of the U.S. homeowners were at least 30 days behind on their payments for the month of August. This is the fourth month in row that showed an increase in delinquencies in a month to month comparison.
Despite all the signs of improvement in home sales, homeowners still remain in a financial bind. Bankruptcy filings were up 32%, subprime mortgage delinquencies are up to 41% and the numbers of credit cards that are being issued are down nearly 50% in a year to year comparison. However, the credit card account delinquency numbers are down for the 3rd straight month.
According to Dann Adams, president of Equifax Consumer Information Solutions Group, “Total consumer debt is down more than $300 billion, or almost 3 percent, from its peak in September 2008, Adams said, while the savings rate is nearing 5 percent, a level we haven’t seen in years.” The Equifax data concludes that consumers are changing their buying habits.
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September 21, 2009
During the housing boom in 2005, nearly 7 out of 10 mortgage applications were approved and financed, by the end of last year only 5 out of 10 applications were approved. This is due to the tighter lender restrictions that are being locked in place. Although the interest rates are at historic lows and housing prices are down to levels not seen in 20 years, acquiring credit for these deals is getting tougher.
The mortgage interest rates have fallen to 5.04% on a 30 year fixed rate mortgage and the national median existing single-family price was $174,100, however if your credit is not in good standing, getting a loan is near impossible. It was the easy credit that led to the financial crisis that we see today and lenders are doing their part to ensure that this crisis remains a thing of the past.
These tighter restrictions are not apt to ease up any time soon, according to Christopher Whalen, the managing director at the research firm Institutional Risk Analytics, “Banks are going to be in a defensive posture for several years. Most borrowers can’t meet their criteria.” The Government has played a huge part in righting the housing market, nearly $340 billion has been provided in loans to the banks, once that money is withdrawn, many fear that the banks will become more reluctant to lend.
The challenge has caused some potential homebuyers to give up, which could have an adverse affect on the housing industry. The decline in borrowing could in turn slow down the national financial recovery, which is why many believe that it is crucial for the Government to continue to stimulate the housing industry.
The $8,000 tax credit for first-time homebuyers program will expire on November 31st of this year, the program is working and many are looking for it continue to do so and are urging the government for an extension. The National Association of Realtors has set up a website to make it easier for you to send a message to congress to take action in extending and expanding the tax credit. Many economists believe that once the government begins cutting back we could have a second downfall.
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September 18, 2009
One more sign that the housing industry is on the mend was shown by the Commerce Department yesterday! Housing construction rose 1.5% during the month of August, which is a level that the industry hasn’t seen since November of 2008!
After the minor dip in July of 0.2%, the rise in construction comes as a small relief to the industry itself. The rise came from an unexpected 25.3% push in the construction of multi-family units. According to the National Association of Home Builders, the housing market index rose this month which is an effect of the rising optimism from the jump in home sales.
Homes sales are said to continue to rise, due in part of the federal tax credit for first-time homebuyers. The tax credit will cover 10% of the home price up to $8,000; however it will expire on November 31, 2009, unless the Obama Administration grants an extension to the program.
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September 17, 2009
Good News! Extending the tax credit for first-time homebuyers is being considered by the Obama Administration!
According to spokesman for Obama’s economic team, Robert Gibbs, the team is evaluating the impact that an extension of the tax credit would have on home sales in order to make a presentation to the president.
As of now, the tax credit covers up to 10% of the new home price up to $8,000 and is scheduled to end on November 30, 2009.
So, just in case the extension falls through, first time homebuyers interested in receiving the tax credit should act now, in order to close by the end of November!
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