Posted by Jeff on April 2, 2010 under Mortgage Info | 
The Federal Reserve’s program of buying mortgage backed securities in order to inject liquidity into the market and keep rates low, ended on March 31st. The anticipation of the end and now the actual loss of liquidity has had the expected impact on mortgage rates.
Rates have been climbing steadily since Thursday March 25th and have jumped again today for a total increase in the past week of .25%. That adds up to an increase of about $30 per month on a $200,000 loan. Not the end of the world but probably not the last of the increases to come.
Posted by Jeff on March 18, 2010 under Mortgage Info |
Federal Reserve policymakers pledged to keep rates low for an “extended period”. This reiterates the phrase they’ve used for the past year. The Federal Reserve also said it would end, on schedule, its program of buying mortgage-backed bonds to help keep home loan rates low.
The big question is will the end of the Fed MBS buy back policy drive mortgage rates up due to the lower demand for the security. As the normal secondary market for mortgage bonds is virtually non existent, it remains to be seen what will happen to mortgage rates.
Posted by Jeff on March 17, 2010 under Real Estate |
U.S. housing starts fell about 5.9% to a seasonally adjusted annual rate of 575,000 in February as several massive snowstorms hit the East and South. New construction was down in the Northeast and South, but up in the Midwest and West.
Starts of single-family homes fell 0.6% to a 499,000 pace, while starts of large condos and apartment building plunged 43%. In the past year, starts of single-family homes are up 39%, while starts of multifamily units are down 41%. Building permits dropped 1.6% to 612,000 in February. Permits for single-family homes fell 0.2% to a 503,000 rate.
So is this good news or bad? Bad news for builders but good news for the housing market. There are way too many homes for sale and this housing market will not recover until we work off the existing supply. So why do we need more inventory?
Posted by Jeff on November 6, 2009 under Real Estate |
The home buyer tax credit bill was signed today by President Obama. This bill extends the credit period until June 30, 2010 but homes must be in contract by April 30, 2010
The new bill provides for up to $8,000 credit for first time buyers and up to $6,500 for trade up buyers who have been in their current home for the last 5 years.
This extension should provide an early boost to the spring housing market which normally doesn’t start cooking until April. With the Feds Mortgage Bonds purchase program set to expire at the end of March, the time to buy will be the first quarter of next year. Once the Fed halts their purchase program, rates will must likely start to rise.
Posted by Jeff on November 5, 2009 under Real Estate |
Both the House of Representatives and the Senate have approved the extension of the $8,000 Home Buyer Tax Credit. Now it is on its way to President Obama’s desk for his signature.
This latest and probably last extension also raises the income limits to $125,000 for a single buyer and $225,000 for a couple. Also included in this bill is a $6,500 credit for trade up buyers as long as they have lived in their current home for at least 5 years.
You’ll need to be in contract by April 30, 2010 and must close by June 30, 2010.
Due to the fraudulent claims connected to the current bill some safeguards have been added to the claims procedure along with a prohibition on non-arms length transactions. Expect delays in receiving your refund as your claim is scrutinized and beware of buying from a relative. The non-arms length prohibition could complicate your claim.
