January 29, 2010
Interest rates on a 30-year mortgage fell slightly again this week from 4.99% to 4.98%, keeping the rates above the record low set in December of 2009. According to mortgage giant Freddie Mac, last year at this time the interest rates were as high as 5.10%.
While the FED is continuing to pump $1.25 trillion into mortgage backed securities, the program is scheduled to end during the spring of this year. The low interest rates are very attractive to homeowners looking to refinance, as well as new homebuyers, who also may be eligible for the $8,000 tax credit.
Freddie Mac collects the mortgage rates throughout the nation on a weekly basis, as interest rates are so closely tied to treasury yields they are subject to change rapidly.
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January 28, 2010
An annexation plan that includes commercial property along US19 was initially approved this week by the Crystal River City Council, Citrus County, Florida; this annexation includes the Crystal River Commons, a commercial center between Venable St. and St. Benedict’s Catholic Church.
Supported by city officials due to the water and sewer service provided by the city south of town, the annexation would give the city control of land regulations for the RealtiCorp property that is not set aside for Crystal River Commons.
The final reading for the annexation ordinance is scheduled for February 8, 2010.
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January 26, 2010
Existing home sales in Florida jumped 33% at the end of 2009, making the 16th consecutive month that real estate sales have increased in a yearly comparison. Economists believe that the rise in home sales is due in part to the Federal Home Buyer Tax Credit, which is scheduled to expire in the spring of this year. According to Lawrence Yun, economist at the National Association of Realtors (NAR), “Activity should ramp up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires, and balance should be restored to the housing sector with inventories continuing to decline.”
The median home price for existing homes by the end of last year was $140,400, which reflects a 10% decrease in an annual comparison. With government programs, low interest rates and bargain home prices, home sales should only continue to rise. However, many economists believe that another wave of foreclosures will sweep the market this year at the same time that government programs are scheduled to expire, which will in turn raise interest rates and perhaps home prices. Don’t pass by today’s deals! Now is the time to buy!
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Of course people know and trust CENTURY 21. Could it be as simple as recognizing our Gold Jackets? Perhaps it is the fact that our Associates are extensively trained and ready to get the job done. Watch “The Path Home” to see just a few of the benefits you receive when working side by side with CENTURY 21.
“The Path Home”
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January 25, 2010
Despite the belief that the interest rates would not fall below 5% any time in the near future; they have! According to mortgage giant, Freddie Mac, fixed rates on a 30-year mortgage have fallen to 4.99%!
Freddie Mac collects mortgage rates from lenders across the nation on a weekly basis. The interest rates can fluctuate drastically from week to week, even on a daily basis, as they tend to coincide with treasury bonds.
The FED started pumping $1.25 trillion dollars into mortgage-backed securities over the last year, in an attempt to keep the mortgage rates attractive to potential homebuyers as well as those looking to refinance. The program is set to expire in the spring and while there is talk that the program could be extended, analysts believe that this is an unlikely scenario.
In the meantime, the rates may be higher than the record low of 4.71% set in December; they are still lower than the market has seen in years!
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January 22, 2010
The Obama Administration’s Making Home Affordable program is set up to reduce eligible homeowner’s mortgage payments to no more that 31% of their pre-taxed income. To date, nearly 66,500 people’s mortgages have been permanently modified, with nearly 788,000 homeowners in trial modifications. However, foreclosures are still mounting…
A group of state officials have been working for over two years searching for solutions to the foreclosure problem. Tom Miller, Iowa’s attorney general stated, “Potential foreclosures are being built up in the system, the efforts really need to be more efficient more effective more timely on behalf of the servicers.”
One of the ideas that were released in a plan that was announced this week is to reduce the loan principal and extend the terms of the loan; especially in places were the property values are dropping. Limiting the amount of required paperwork, helping the unemployed, suspending foreclosure proceedings and paying closer attention to Adjustable Rate Mortgage’s (ARM’s) are just a few of the other suggestions that were announced.
The group of state officials is urging the Obama administration as well as the loan servicers to step up their efforts before another wave of foreclosures hits the market.
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January 21, 2010
In an effort to strengthen it’s finances and avoid a taxpayer bailout, the Federal Housing Administration (FHA) will be implementing significant changes to their policies.
The new policies, which were announced to the public yesterday, include a standard credit score requirement of 580 in order to qualify for the FHA’s 3.5% down payment program. New borrowers that have a credit score of less that 580 will be required to put down at least 10% of the buying price. Another change to the FHA policies will include an increase to the upfront Mortgage Insurance Premium (MIP) to 2.25% from the current 1.75%.
Although many mortgage lenders will disagree with the new policies, they are necessary for the growth and success of the FHA.
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January 20, 2010
The days of refinancing with an interest rate under 5%, may be behind us. According to mortgage giant Freddie Mac, interest rates closed at 5.09% the first week of January and experts are claiming that they will continue to rise. Chief economist at Moody’s Economy.com, Mark Zandi stated, “Interest rates are up and they’re not going to go down below 5% again.”
The low interest rates are still very attractive to homebuyers, however those looking to refinance at a lower rate are racing to lock themselves in. The FED has purchased nearly $1.25 trillion in mortgage backed securities; however that program is scheduled to expire at the end of March this year.
Chief economist at PNC Financial Services, Stuart Hoffman, believes that interest rates will hit 5.5% by the end of the summer and will continue to rise into the winter of this year, capping off at nearly 5.75%.
If you looking at buying into these low rates, NOW is the time! Don’t let another day pass, as rates can change quickly!
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January 19, 2010
Education Week Magazine has released their latest report card. Florida’s public schools have earned 8th best in the nation. This is a considerable climb in rank from two years ago. Florida, at that time, ranked 14th. Florida also received the same overall grade as it did last year which is a B-minus.
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Making Home Affordable program was designed by the Obama Administration in an effort to aid between 7-9 million Americans in permanently reducing their monthly mortgage payments thereby stabilizing the real estate market. The program was implemented nearly a year ago and to date the program has fallen quite short of the mark that it originally set out to achieve.
According to a report that was released last week, the program has aided over 8,000 delinquent homeowners in Florida with permanent modifications, while over 96,000 homeowners have received trial modifications. The total of permanent modifications across the nation has only reached a total of 66,465, far short of the original 7-9 million that the program was intended to help.
Many claim that the program has been a failure and is placing the blame on the Obama Administration. The author of Foreclosure Nation, Mortgaging the American Dream, Shari Olefson stated, “The program itself is a failure, it’s trying to put a square peg in a round hole.” She believes that high unemployment and a loss in housing equity is what is keeping the plan from working. “The whole program was crafted before we correctly identified the problem,” she said.
Others believe that although the program has fallen short of the number of homeowners that it set out to help, it has successfully helped a large number of homeowners in distress.
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