There were a lot of factors that contributed to loan defaults, but the lack of hefty down payments was not one of them. Rather it was making loans to people who had little or no chance to pay their mortgages.
Applications for both purchase and refinance transactions are up again this week, fueled by falling rates according to Mortgage Bankers Association.
Negative economic reports of late have pushed the rate on the popular 30 year fixed to below 4.5 percent, the lowest this year and just about a quarter percent off the 50-year lows we saw last summer; adjustable-rate products are even lower. When investors see bad economic news, they pull money out of the stock market and park it in bonds. The price of bonds goes up, the yield goes down, and mortgage rates follow down.
Working short sales? Watch out for fraud. This article details a growing trend in short sale fraud. It can mean disaster for the unwitting buyer and huge financial losses for lenders.
Buying a foreclosure was once touted as a way to get a great deal on real estate. Recently, however, the potential financial rewards of buying a foreclosure don't come without their share of hard work and headaches. Getting involved with a foreclosed property takes patients, strong nerves and may not be the best choice for the first time home buyer. Working with a qualified Realtor can make the process much easier than without.
When it comes to private mortgage insurance (MI), there are several myths that exist that make buyers reluctant to consider a conventional loan with MI as an option when purchasing a home. One of the more common misconceptions is that cancelling MI is a difficult—not to mention time-consuming—process. By understanding these rules and what they mean for homeowners, real estate agents can educate their buyers to help them better evaluate all of their home financing options based on facts rather than myths.
In this market anxious Sellers will have to price aggressively to get cautious Buyers off the fence. Selleing real estate? Be certain to work with a local, qualified Realtor who knows how to price your home fora quick sale.
In recent days, home mortgage interest rates have ticked up very slightly but are still quite low, well below 5 percent. This spring's low rates have helped boost mortgage applications, both for refinancing and purchases. NPR's Chris Arnold reports on the outlook for the housing sector this summer, and the industry's one bright spot: cheap mortgages.
For yet another week, low mortgage rates have remained in a holding pattern that has become the trend this year.
The National Association of Realtors® (NAR) Pending Home Sales Index measures the number of home purchase contracts that were signed in the monthly reporting period. Once “pending” sales contracts are closed, they are considered an Existing Home Sale. Because the Pending Home Sales index tells us how many contracts were signed, it is considered a forward indicator of Existing Home Sales. A signed contract is not counted as an Existing Home Sale until the transaction actually closes.
Read more about the index here.
