Financing

Buyer Urgency Shows the Time to Buy Is Now

Wednesday, May 16th, 2012 at 11:53am. 33 Views, 0 Comments.

Homebuyers are looking at the current home prices and low mortgage interest rates and seeing an urgency to buy now. The growing fear is that these prices and rates won't last forever.

Recent housing surveys who that many Americans feel the now is a good time to buy a home. The most recent Fannie Mae Housing Market Survey showed that 73 percent actually feel this way, according to the March 2012 survey. This is a 70 percent increase since just February 2012.

The chief economist at Fannie Mae, Doug Duncan, says that the current market conditions are encouraging consumers to want to become homebuyers. Many feel as if being a renter is starting to be more costly than the costs of being homeowners. This is making buying a home now a more…

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Fed Reaffirms Plans to Keep Rates Low

Thursday, April 8th, 2010 at 12:24pm. 329 Views, 0 Comments.

As expected, the Fed is going to keep interest rates near zero for a while, at least for the foreseeable future. Though the economic outlook looks good enough for them to stop buying mortgages as of March 31, 2010, the board still does not feel the economy is strong enough to increase interest rates. This further widens the window of opportunity for new home buyers to get a mortgage with affordable payments.

In a statement released by the Federal Open Market Committee, the Fed’s policy-making arm, they reported that Business spending is picking up, but that the economic recovery would be “moderate for a time”. This is a change in wording from an entity that claimed since last April that economic activity would be “weak for a time”.

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Governor Schwarzenegger signs Home Tax Credit Bill

Thursday, April 8th, 2010 at 12:12pm. 299 Views, 0 Comments.

If you purchase a home between May 1, 2010 and December 31, 2010, you’ll be eligible for a tax credit of either 5% of the purchase price or $10,000. This comes thanks to the signing of AB 183 by Governor Schwarzenegger which provides $200 million for home buyer tax credits. You can also become eligible for a tax credit if you close escrow on a home between Decembver 31, 2010 and August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010.

What does all that mean? If you buy a home which will be your principle residence within the next six months you can save $10,000. That’s a pretty healthy incentive to start shopping. The only stipulations on the credit are that you remain in your new home for two years and that you are…

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Inside the Mortgage Industry

Wednesday, November 18th, 2009 at 5:18pm. 356 Views, 0 Comments.

This week saw passage of legislation that will maintain the existing loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) through December 31, 2010. It is our understanding that the CALCULATION resulting in the $625,500 and $729,750 temporary limits will remain the same. HOWEVER, that calculation is done county by county and will be based, we believe, on the October median home price. So the actual numbers for any given county may in fact change even though the maximums allowable remain $625,500 and $729,750.

Two very, very big changes are coming that will have a significant impact on mortgage originators and on borrowers. The first one: sweeping changes in regulatory requirements which become mandatory as of January 1,…

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