2010 May | Mortgage Bankers Association

Buyers are Still Interested in Purchasing Homes Despite Mortgage Interest Rate Increase

Posted on May 28th, 2010 in Mortgage Bankers Association Articles by admin

Despite the fact that mortgage rates have started to climb, the Mortgage Bankers Association reports that home buyers are still rushing to purchase a home in an effort to take advantage of the home buyer’s tax credit that is slated to expire soon.

Although the number of refinance applications took a bit of a fall after mortgage interest rates hit their highest levels since August, the Mortgage Bankers Association reports that requests for home purchase mortgage loans have remained steady.

While it is true that that purchase index rose by half a percent when compared to the end of March, the rates are still down by 18.1% when compared to a year ago. Therefore, while it is certainly good to hear that mortgage loan requests appear to be remaining steady, there is still plenty of ground to be made up. Furthermore, there is still a question as to whether or not these gains will continue after the home buyer’s tax credit program expires.

Thanks to the half a percent purchase index increase, the share of government purchase applications also rose to 49.9% of all applications. As a result, government purchase applications reached their highest share in more than 20 years. Furthermore, the national Market Composite Index, which is used to measure the volume of mortgage loan applications received, did fall by 11% during the week ending on April 2 when compared to the previous week. These figures were seasonally adjusted.

“Mortgage rates jumped last week as the Federal Reserve completed their purchases of mortgage-backed securities,” said Michael Fratantoni, who is the vice president of research and economics for the Market Composite Index association.

According to the association, number of refinancing applications from 63.2% of the total mortgage applications to 58.7%. This represents the lowest these figures have been since the week that ended on August 28, 2009. The average interest rate for 30-year, fixed-rate mortgages, on the other hand, went up from 5.04% to 5.31%, which represents the highest rate since the first week of August 2009. At the same time, the average interest rate for a 15-year, fixed rate mortgage increased from 4.34% to 4.54% while the average interest rate for a one-year, adjustable-rate mortgage increased from 6.88% to 7.03%.

According to the Austin Board of Realtors, the real estate news from the Austin area is even better. Not only did home sales in the area increase by 4% when comparing February of 2010 with February of 2009, but properties in the area are spending less time on the market as well.

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Mortgage News

Posted on May 27th, 2010 in Mortgage Bankers Association Articles by admin

From March 31, 2010, the Federal Reserve stop purchasing mortgage securities. The reason why the Fed has this policy in the first place was to help low bonuses, while in effect, subsidize the housing market and the provision of capital for borrowers in difficulty and investors.

What happens now? Currently, the Real Estate experts that most do not believe that the calculator will start a boom in the near future.Freddie Mac CEO Ed Haldeman said in a recent Forbes.com article that does not believe there is "a major disruption and a large change in rates." But if prices do not start skyrocket, the Fed has not completely closed the door to a fresh start to buy mortgage-backed securities to support.

According to the Mortgage Bankers, the American link applications up to 1.3% for the week ending March 262010 It has a 6.8% increase after the week of October 30, 2009 bankers. Michael Fratantonio Mortgage Association said in a Reuters report (March 31, 2010) that he believed that increased activity appears to be linked to the imminent deadline for the government homebuyers tax credit. To qualify for a tax credit for first time homebuyers $ 8.000 or $ 6,500 tax credit for existing homeowners, all contracts signed by April 30, 2010and must be closed by June 30, 2010.

All these numbers mean good news for the housing market as a whole. An increase of its programs show that home sales are increasing as well. You can see exactly the effect of such events in the local market of Houston, we have to wait until next week when the Maartenhuis Houston Association of Realtors released its sales results. See updates on blogs Keller Williams.

Keller WilliamsNortheast Realty

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The Manifold Benefits Involved in Hiring Real Estate Agents

Posted on May 24th, 2010 in Mortgage Bankers Association Articles by admin

Whenever any real estate is bought or sold, it is best to use the services of an agent. You might feel that you may not get the right real estate agent for your purpose or that you need to pay them a commission. If you get the services of the right real estate agent the benefits are indeed manifold.

In the Okanagan Valley you have the towns of Oliver, Osoyoos and Summerland. Here the weather is very pleasant with long summers, and short winters. It is an ideal place for people interested in recreational activities and retirees. You can invest in real estate houses on the hills, near the lake or near malls. There are housing developments, condominiums and old stately houses for you to choose from.

Whenever a house is bought or sole, the buyer and seller is always in a hurry. The agent will be able to help you to find the right property and stay with you till the deal is over. So, the real estate agent will really save you the precious time that would be otherwise spent in looking up property and going through the process of buying, if you are the buyer. The seller will also be able to get the best deal within a short period. The agent already knows the market conditions.

The real estate agent will have contacts. This professional networking will be very useful whether you are buying or selling a house, He will know the home inspector, the mortgage company, a good attorney who will all be needed to do a thorough check whether you buy or sell a house.

He will be able to help you in fixing the right price for the property, as he will be aware of the prices of property in the area. He will know the supply and demand of the houses in that area. If you are a buyer, he will know how long the house been in the market. He will be able to negotiate the price and save money for you.

The real estate agent will be well informed about the different localities-the availability of schools, the hospitals, and the condition of the roads, shopping complexes and other facilities. So, depending on your needs he, can find a house for you to buy. If you are selling, he will be able to get appropriate buyers who want to stay in your locality.

The agent will be able to give advice about the availability of different types of loans that a buyer can choose from. He will be able to offer advice on the details of obtaining money from the buyer when the seller sells his house. The bankers and financial institutions will have good contacts with the real estate agent and so he will be able to talk to them and get you the best benefit.

The real estate agent is knowledgeable and will be able to help you with the whole process of buying and selling. He will also be able to answer all your questions and stay with you till you finish the deal. The process will need his expertise. There will definitely be a lot of paperwork to be done. There will be many legal documents to fill up and he will be able to do it legally and properly.

Only the type of houses you are interested in will be shown to you when you want to buy a house. While selling, you can depend on the agent to show the house to prospective buyers and discuss details with them.

The agent will have access to MLS or Multiple listing Search. With this he will be able to tell you which are the houses that are listed and not sold, as he can check the expired list. A house is generally listed for a period of three months. He will also be able to tell you who would be the prospective sellers, so that you can contact the person and put the deal together.

So, a good and reliable real estate agent will be able to save you time, and be available throughout the process which can otherwise prove to be very long drawn and stressful.

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