Mortgage Rates

Your Door to Historic Low Mortgage Rates Is Set to Close

You may have heard that home loan rates reached record lows in October of this year. Qualified mortgage professionals have been slammed with emails and phone calls from clients just like you who wanted to take advantage of this wonderful situation ever since.

Over the last week however mortgage rates have started rising again due to a combination of good economic news and the Federal Reserve’s latest Treasury Security purchase plan, more commonly referred to as Quantitative Easing 2.

Mortgage rates have risen 0.250% in the past week. You read that correct…0.250% in the past week alone.

While some people say good things come to those who wait, others say to strike while the iron is hot. In this case, the “iron is still hot” with mortgage rates at exceptionally low levels but you have to act now.

The market conditions that have led to historic low mortgage rates are starting to turn around and quickly I might add. We might never see these historic low mortgage rates again in our lifetime as we must remember the extreme nature of the economic forces that drove home loan rates this low.

The door has been open to historic low mortgage rates for several months. More than ever, it is important to act right now. Take a few minutes and give me a quick call so we can review your situation together. It doesn’t cost you anything for the mortgage review and ultimately you have the final say of moving forward.

Soon the door to historic low mortgage rates will be closed and you will be locked out only to look back and wish you had done something. What better gift to give you and your family than a gift that could significantly improve your cash flow and monthly budget?

Mortgage Rates

Top Real Estate Headlines for Week Ending: November 19th

Although the stock market survived a flurry of economic reports released this past week, the mortgage bond market received a good old fashioned beat down. Both home buyers and homeowners were disappointed as the week ended with higher mortgage rates.

Now that folks have changed their focus to the upcoming holiday, let’s take a break to review what the top real estate and mortgage headlines were this week according to the National Association of Realtors.

• 3 Reasons to Sell a Home Soon
  Steve McLinden says to focus on your local situation when deciding whether to sell, look at comparative sales, investment potential, lending standards, and interest rates.
• Banks, Congress to Face Off on Foreclosures
  As the Hill heads into a “lame duck” session of Congress, both the Senate and House will hear testimony from banks regarding housing financing.
• Credit Score Requirements Stifling Borrowers
  Big lenders keep raising minimum credit scores, increasing the number of borrowers who can’t obtain financing.
• Big Banks Fixing Foreclosure Processes
  A Treasury official notes that 11 federal agencies contend that the foreclosure document problems don’t represent a threat to U.S. financial stability.
• 7 Trends That Will Drive the Future of Housing
  From decreases in the average size and cost per square foot for housing to Baby Boomers living with children, these are the likely changes for housing in the upcoming years.
• NAR Praises FHA’s Increased Stability
  An independent audit shows that the Federal Housing Administration cash reserve levels have increased over the past year.
• Mortgage Bankers: Foreclosures Are Falling
  The percentage of homes in some stage of foreclosure went down between the second and third quarter of this year, due in large part to banks’ investigations of their processes.
• Mortgage Rates Back on the Rise
  Average rates for 30-year mortgages shot up this week, according to Freddie Mac.
• America’s 10 Dirtiest Cities
  Forbes magazine names cities across the country that could use a little clean up.
• Analysts Say Housing Is Better But Still Fragile
  Low interest rates coupled with stabilizing home prices could give the economy a boost, analysts say.
• 6 Helpful Tools For Your Virtual Assistant
  These free and low-cost online tools can save you and your virtual assistant time and help get your business organized.
• Signs Mortgage Fraud Might Be Picking Up
  Information group says investment companies are involved in a high number of suspicious resales.

These were the top real estate and mortgage headlines for the week ending November 19, 2010.

Want to know how these national real estate headlines could impact you right here locally in Northwest Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let our collective years of real estate experience in Northwest Indiana guide you to an informed and successful real estate transaction today.

Mortgage Rates

Is Right Now The Best Time To Lock Your Mortgage Rate

When it comes to mortgage loans and interest rates, it’s never a good idea to gamble. That’s why we typically advise our clients to lock in an interest rate at the earliest opportunity.

This is just one step of the standardized system we have put in place to ensure the best possible home loan experience for each borrower that we work with during the home loan process.

In case you you were wondering a mortgage loan cannot be closed without a locked-in interest rate, and there are three main elements to take into consideration:

• Interest Rate
• Points or fees
• Length of the lock

Locking in an interest rate does not obligate you to commit to the home loan until the home purchase or home refinance is actually closed. The lock is merely a security measure designed to eliminate the risk of market volatility throughout the duration of the home purchase or home refinance transaction.

As long as the home loan is approved and funded before the end of the lock period, you will receive the interest rate quoted.

When a home lender permits an extended rate lock-in period, you will likely face a higher interest rate or additional fees that could be quoted as points. In other words, you will pay for the lender to take on the extended risk of being exposed to potential changes in the market.

For example, let’s say a 30-day rate lock commitment costs a borrower one-half point, while a 60-day rate lock commitment costs one full point. If the borrower in this scenario needed the extended lock period, but did not want to pay points, then an alternative would be to accept a slightly higher interest rate. In this case, a 60-day rate lock would typically have a higher interest rate than a 30-day rate lock.

Mortgage rates fluctuate daily, hourly and sometimes even by the minute.

If you are the type who prefers a sure thing then our standard procedure to lock-in a mortgage rate as quickly as possible is just what you need.

On the other hand, if you like to sit on the fence and test the waters with no safety net then floating your interest rate is your perorgative. Just remember that you will eventually have to lock-in an interest rate in order to close your home loan.

By knowing your needs and working intimately with you to make the right decisions early on, we are positive that we can help you achieve your dream of home ownership just in time.

Mortgage Rates

Top Real Estate Headlines for Week Ending: October 8th

The weekend is finally here. Before you run off to the Chicago Marathon let’s pause for a moment to review what the top real estate and mortgage headlines were this week according to the National Association of Realtors.

• Another Gain for Pending Home Sales
  Pending Home Sales Index rose for the 2nd consecutive month, thanks to low rates and affordable prices.
• Regulators to Banks: Review Foreclosures
  The Office of the Comptroller of the Currency has told seven big banks to review their procedures in light of problems at other banks.
• 3 Tips for Negotiating Short Sales
  Kathy Mehringer, who educates real estate agents on short sales, offers her 3 best tips for working with lenders on these complex transactions.
• Mortgages Hit Lowest Levels Since 1950s
  The last time borrowers could get rates this low, every tv was black and white and Americans liked Ike.
• Foreclosure Reviews Could Lead to Costly Delays
  If documentation is found to be incomplete, legal challenges could arise.
• 4 Ways to Ramp Up Your Marketing
  Get ideas on how you can enhance your marketing to expand your reach to buyers and sellers.
• Fed Chair: Government May Buy More Debt
  Federal Reserve Chair Ben Bernanke suggested that the Fed is likely to buy more debt, which could further drive down rates on mortgages, corporate financing and other loans.
• Most- and Least-Promising Metros for Investors
  See which U.S. metropolitan areas were ranked as the best and worst places for real estate investment.
• How to Reach the Millennials
  The millennial generation is a growing segment of buyers in today’s market. But they have different views about home ownership, and they also communicate differently than previous generations. Are you talking their talk?
• Good Neighbor Award Finalist Jim Arnhold
  Virginia practitioner harnesses land for charity, giving disabled children a chance to thrive through horseback riding.
• HUD Has Loans for Out-of-Work Borrowers
  The U.S. Department of Housing and Urban Development will offer $50,000 loans to unemployed borrowers who are at least three months behind on their payments, but have a reasonable likelihood of being able to resume payments within two years.
• Helmsley Mansion Sells at Deep Discount
  The Greenwich, Conn., estate of the late hotel magnates Leona and Harry Helmsley sold for $35 million after being listed in 2008 for $125 million.

These were the top real estate and mortgage headlines for the week ending October 8, 2010.

Want to know how these national real estate headlines could impact you right here locally in Northwest Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let our collective years of real estate experience in Northwest Indiana guide you to an informed and successful real estate transaction today.

Mortgage Rates

Top Real Estate and Mortgage Headlines for September 30th

It’s Thursday, the last day of September and fall is in full force as football season is starting to heat up. Here is today’s top real estate headlines according to the National Association of Realtors.

• Second Big Lender Stops Foreclosures
  JPMorgan Chase wants to review old files to correct processing errors.
• Foreclosure, REO Home Prices Rise
  Values of distressed homes are strengthening, although they remain low compared to non-distressed homes.
• Record-Low Rates Not Swaying Some Households
  Wariness won’t go away for another three years, one analyst says.
• Good Neighbor Finalists Pam Kidd and Keri Cannon
  Pam Kidd and Keri Cannon travel halfway around the world to feed and care for hungry, orphaned children and their communities.
• Brokerage Loses Appeal over Escrow Funds
  An appeals court said the brokerage had a duty to abide by an escrow agreement between the buyer and his agent.
• Appraisals Continue to Be Low and Sink Some Deals
  Lenders in some cases seek additional review if borrower is credit challenged.

These are the top real estate and mortgage headlines for today, September 30, 2010.

Want to know how these national real estate headlines could impact you right here locally in Northwest Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let our collective years of real estate experience in Northwest Indiana guide you to an informed and successful real estate transaction.

Mortgage Rates

Top Real Estate Headlines for Week Ending: August 27th

As we all look forward to the weekend, let’s pause for a moment to review what the top real estate and mortgage headlines were this week according to the National Association of Realtors.

• July Existing-Home Sales Fall, But Prices Rise
  Home prices rose in July, though existing-home sales continued their slide following the expiration of the home buyer tax credit.
• Is the Housing Slowdown a Sign of a Double-Dip?
  As unemployment and mounting foreclosures continue to bind the housing market, analysts fear a slide back into recession.
• Foreclosures Down, But Late Payments Up
  The inventory of houses in the process of foreclosure are down for the first time since 2006, but the number of loans that are one payment late went back up.
• Commercial Conditions Favor Business Growth
  Rent discounts and other favorable conditions in commercial real estate markets make it a good time for expansion moves by business, an NAR report suggests.
• 4 Business Tips for Social Networking Success
  Are you using social networks to garner more business leads? Read tips on how to expand your reach.
• Mortgage Rates Continue to Fall
  Average interest on long-term mortgages hit a record low for the eighth time in nine weeks, and could go even lower.
• 7 Must-Have Apps for Your Smartphone
  Get ideas on some of the latest apps that can be used in your real estate business, from faxing on-the-go to creating property “reminder” tours.
• Protest Rising Over Resale Charges
  Some builders are now including in contracts a clause that requires buyers to pay them a 1 percent transfer fee every time the house is sold over the next 99 years.
• New York Housing Bucking Trends
  Inventory has dropped in half from a year ago and well-priced apartments are selling in a week.
• Fannie Mae to Prohibit ‘Appraisal Cutting’
  The secondary mortgage market company doesn’t want lenders to cut valuations anymore on appraisals in dispute.
• Military Growth Drives Fastest Rise in Income
  Jacksonville, N.C. tops the list of USA Today’s metro areas with the largest per-capita income gains from 2000 to 2009. See what other cities made the list.

These were the top real estate and mortgage headlines for the week ending August 27, 2010.

Want to know how these national headlines could impact you right here in Northwest Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let our resident local market real estate experts guide you to an informed and successful real estate transaction.

Mortgage Rates

What’s Ahead for Mortgage Rates This Week: July 26th

Mortgage markets worsened last week for the first time in 6 weeks. Investors were pleased with corporate earnings reports and the European bank stress tests results.  Stocks gained on the news, and bonds lost.

Mortgage rates rose last week, but only slightly. Rate are still hovering near their lowest levels of all-time.

Of the bigger stories last week was Existing Home Sales. As reported by the National Association of Realtors®, sales volume was down in June and home supplies were up. But figures were a bit better than expected, giving some hope for housing.

Notably, the number of move-up buyers outnumbered first-timers and the national median home price rose, suggesting that mid-to-upper home prices are getting some support.

This week, the market gets additional two pieces of housing data to add to the mix:

1. New Homes Sales (Monday)
2. Case-Shiller Index (Tuesday)

Both will have an impact on mortgage rates. In general, better-than-expected data should cause rates to rise in Indiana; worse-than-expected data should cause rates to fall.

Also this week, there’s two consumer confidence reports, the Fed’s Beige Book, and late-in-the-week inflationary data.  Mortgage markets should remain volatile with so much news headed down the pipe.

It’s too soon to declare the current 3-month rally over, but it’s been 3 weeks since rates dipped. This can be a signal that mortgage rates have finally bottomed and that it’s time to lock your rate.

If you’re floating a mortgage rate, or thinking about a refinance, it’s time to get locked in. Rates may drop this week, but then again, maybe they won’t. There’s little sense gambling on a bet as big as a mortgage.

Mortgage Rates

What’s Ahead for Mortgage Rates This Week: July 19th

Mortgage markets improved for the 5th straight week last week as consumer confidence waned and inflation data tamed. Investors ignored the news that 19 of 23 reporting S&P 500 companies beat their respective earnings estimates and sold off on stocks.

There’s concern about a potential economic slowdown for the months ahead and it may be well-founded.

Despite an improving jobs situation and booming retail sales, households are less optimistic about the future and so is the Federal Reserve. In its post-meeting minutes released last week, the Fed revised its U.S. growth estimates downward for 2010 and 2011.

For rate shoppers in Indiana, this is excellent news.

Because of the weakness, conforming mortgage rates fell again last week, extending the current rally in rates to 16 weeks. Mortgage rates are lower than at any time in measured history.

This week, data will be housing market-heavy and mortgage rates could rise or fall.

• Monday : National Association of Home Builders Index
• Tuesday : Building Permits and Housing Starts
• Thursday : Existing Home Sales

Strength in any, or all three, of these housing-related reports should push mortgage rates higher on higher hopes for the economy. Weakness, on the other hand, should have the opposite effect. 

Overall, mortgage markets are trending better.  Momentum is in effect and refinance activity is soaring. That said, it doesn’t mean that rates won’t rise — they could absolutely. It just takes a change in market sentiment. And that could happen quickly.

Mortgage rates are artificially low right now so even the slightest jolt could cause them to spike. It would be similar to what happened in June 2009 when rates rose 1.125% in just 10 days’ time. Therefore, if you’re shopping for a mortgage and like the rate you’ve been quoted, consider locking in as soon as possible.

There’s very little room for rates to fall further but a lot of room for rates to rise. If you don’t like to gamble, make sure to lock your home loan rate now and guarantee a historic low interest rate.

Mortgage Rates

Mortgage Rates Improve With Help of Fed Talk But Will You

According to Freddie Mac, mortgage rates made new all-time lows this week and the good news is that rates look poised to fall even more.

Since the Federal Reserve’s release of its June 2010 meeting minutes Wednesday, mortgage rates are dipping even more and one of the main reasons why is because of some choice Fed words.

If you’ve never seen a Fed Minutes release, it reads academic. The document is page after page of stats, facts and figures about the U.S. economy, accompanied by an in-depth recap of the intra-Fed member debates that shape the nation’s monetary policy.

At 7,333 words, the June Fed Minutes is the unabridged version of the more well-known, post-meeting press release. The corresponding press release was just 360 words.

As it turns out, Wall Street didn’t like what it read in the minutes.  Specifically:

1. The Fed expects below normal growth through 2012
2. The Fed’s outlook for employment has dipped
3. Credit conditions are easing only slowly

Furthermore, the Fed said its action may be needed if the economy were “to worsen appreciably”.

Overall, the economic optimism the Fed displayed earlier this year appears to be waning. The economy is moving forward — just not as quickly as expected. That should bode well for mortgage rates and home shopping in Crown Point.

Mortgage rates were down Wednesday afternoon and Thursday and remain historically low. However, all it would take to reverse rates is a run of positive news on jobs, growth, and consumer spending.

If you know you need to lock a mortgage rate in the near-term, it may be a good time to make the call. Lock your mortgage rate and move on.

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