Is this the Right Time to Buy ???
This is the information released by a recent Realtor magazine article. Intelligent Buyers realize this may be a once a generation opportunity to get a great deal. More than three-quarters (78%) of potential first time homebuyers say that now is a good time to buy a home, despite widespread concern about the economy…85% of First Time Homebuyers say the reason they are considering buying now includes:
Homes are More Affordable
Interest Rates are Low
$8,000 Tax Credit Money is a Huge Incentive
Mortgage Applications Up Over 30% Last Week
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2% to 1,159.4 for the week ended March 20. Refinancing accounted for 78.5% of all applications. Although overall applications went up so much, nearly 80% of the applications were for refinancing and really is not directly sales. However the good news is that while homeowners are able to get lower interest rates, they will free up some more cash for other spending. This may lead to property owners with significant equity, drawing on some of that untapped equity and leveraging it to buy investment homes, or turn their current home into a rental home while buying a new principal residence. Low FIXED rates will not be here forever, homeowners should take advantage of them while they can.
New-Home Sales Jump 4.7 Percent
New home sales rebounded unexpectedly last month, but were still the second-worst on record and remained well below last year’s levels, according to data released Wednesday 3/25/09. The Commerce Department said sales rose 4.7 percent in February to a seasonally adjusted annual rate of 337,000 from an upwardly revised January figure of 322,000. Even after the revision to January’s sales results, the month remained the worst on records dating back to 1963. Nobody knows where the bottom or top of anything actually is until we are beyond it. However when sales begin to increase from very low levels, that can be a sign that we may have hit bottom. Time will tell where we actually bottomed out and every local market is different, however the signs are there that we may be at or close to the turning point.
Home Prices Rose from December 2008 to January 2009
Stock Market Rallies Almost 500 Points….
The stock market took off today based on some good news from the housing sector and the government’s bank plan to take bad debt of the banks’ books. February Existing Home Sales rose 5% to 4.72 million annual units, above the consensus forecast of 4.45 million annual units. Inventories of unsold homes were at a 9.7-month supply, about the same as last month. 45% of the home sales were foreclosures or other distressed properties. The DOW showed the largest single percentage gain today since October 2008. Many analysts now believe that we may have hit bottom and are in for a rally. Hopefully this will help regain some of the lost wealth and increase consumer confidence across the board.
Treasury Plan Could Cost $1 Trillion
In an effort to continue to make money flow easier and quicker, the Obama administration’s latest attempt to tackle the banking crisis and get loans flowing to families and businesses will create a new government entity, the Public-Private Investment Program, to help purchase as much as $1 trillion in toxic assets on banks’ books. The new effort, to be unveiled Monday, will be followed the next day with release of the administration’s broad framework for overhauling the financial system to ensure that the current crisis — the worst in seven decades — is not repeated. A key part of that regulatory framework will give the government new resolution authority to take over troubled institutions that would pose a threat to the entire financial system if they failed. This move should help in the short term, but all of these spending programs are creating a HUGE debt service on our future. We are running the risk of not just inflation down the road, but hyper inflation. This is the best time to lock a loan for 30 years no questions asked.
Information from Wells Fargo – Home Affordability and Stability Bill
This link will provide you and your clients with information from Wells Fargo in reference to the Home Affordability and Stability Details that are going to be released today. Every loan company will handle this program in their own way. However since Wells Fargo is one of the largest in the country, this should be helpful.
https://www.wellsfargo.com/jump/homeassist
Fannie Mae Changes Commission Structure for Short Sales
Fannie Mae has now announced that effective March 1, 2009, the approval and closing of short sales will not be conditioned on the willingness of the listing firm to alter its fee arrangement with the borrower, as long as the total commission does not exceed 6%. The official guideline is set out below.
No Negotiation of Preforeclosure Sales Commission
Servicing Guide, Part VII, Section 504.02: Contacting Selected Borrowers
Effective March 1, 2009, closing of preforeclosure sales may not be conditioned upon a reduction of the total commission to be paid to real estate agents to a level below what was negotiated by the listing agent with the borrower, unless the fee exceeds 6 percent of the sales price of the property in the aggregate. Servicers are reminded that they must continue to obtain any approvals that may be required by interested third parties in connection with preforeclosure sales.
Best and Worst Real Estate Markets in the USA
I came across this article on yahoo and thought that it looked very interesting. Obviously any real estate market is very local, however this gives an overview of what is going on across the country as of February 26th.
http://finance.yahoo.com/real-estate/article/106645/10-Best-and-10-Worst-US-Housing-Markets
