Thursday, March 31, 2005

More and More use ARMs to purchase homes

The Mortgage Banker's Association is reporting that 36% of mortgages last week used an adjustable rate, the highest rate ever for Adjustable Rate Mortgages, or ARMs.

Some economists worry that the use of adjustable rates could come back to haunt consumers, already stretched to make home purchases. However, as the cost of real estate has risen, so to has the use of adjustable rates, and the prospect of an increased rate of defaulted loans is anticipated by some market watchers.

Most ARMs usually offer a significantly lower rate than a typical 30-year, fixed-rate mortgage, but it is only fixed from 1 to 7 years. After that, the rate becomes variable, and could result in an ever-increasing rate of interest.

Need a real estate agent?

posted by Dahcredyns at 9:09 AM 0 comments

Wednesday, March 30, 2005

New home mortgages up, refinances down

Amid rising rates, the Mortgage Bankers Association reported that, overall, mortgages were up 2.4% last week. Mortgage refinances are still down.

The average 30 year fixed mortgage rate is at 6.08, up slightly from the previous week.

Most analysts are predicting steady behavior from the real estate market, as well as well as from mortgage rates. Some are waiting to see what affect the variable rates of maturing ARM loans will have on the significant percentage of mortgage customers that used such funding.

Interested in a mortgage broker?

posted by Dahcredyns at 11:02 AM 0 comments

Tuesday, March 29, 2005

CNBC: Real Estate versus stocks today, which is better?

That was the discussion that just finished on CNBC. While experts disagreed as to whether real estate or stocks was the better investment today, both sides felt that the fundamentals behind the real estate market are still strong and will be for some time. Yes, there is some speculation, but overall there is no big bubble. Double rates of appreciation will end, but expecting 5% gains per year isn't unrealistic.

posted by Dahcredyns at 8:02 AM 0 comments

Monday, March 28, 2005

Bubble, bubble, bubble trouble

I was watching CNBC this morning and the general feeling regarding real estate right now seems to parallel that of the general economy, caution. Many analysts are still predicting a real estate bubble, most often citing rising interest rates as a possible pin. The strength of the burst draws the most contention, with most predicting the stabilization of home prices or single-digit rates of appreciation. Others feel that if real estate cools, the economy could chill significantly, and real estate predictions then become much more dire.

One thing is clear, however, bubble talk is going to be an integral piece of every day's financial news for the next couple of quarters.

posted by Dahcredyns at 8:53 AM 0 comments

Thursday, March 24, 2005

Mortgage rates rise above 6.0

Two new reports came out showing that mortgage rates have risen above 6.0. Freddie Mac reported the average mortgage rate last week was 6.01. On the other hand, Bankrate.com reported that rates were up to 6.15 percent. This was the first time that rates have hit the 6.0 threshold in 8 months.

posted by Dahcredyns at 11:30 AM 0 comments

Wednesday, March 23, 2005

Where are mortgage rates going?

"Most economists are predicting that long-term rates will eventually move higher. The Mortgage Bankers Association, for one, is now forecasting that the 30-year mortgage will reach 6.6 percent by the end of this year and 6.9 percent by the middle of next year," according to CNN/Money.

posted by Dahcredyns at 8:50 AM 0 comments

Mortgage applications down last week

The Mortgage Bankers Association is reporting the applications for home mortgages decreased last week "as purchasing and refinancing activity dropped due to an increase in mortgage rates."

Overall, refinancing took the biggest hit, as rising interest rates are creating less incentive to refinance.

posted by Dahcredyns at 7:59 AM 0 comments

Tuesday, March 22, 2005

Interest rates to remain measured

The Federal Reserve raised short-term interest rates another quarter point today, while stating they expected to keep boosting rates at a "measured" pace. Some had worried that inflation amidst high oil prices might force the Fed into more drastic action.

This should be good news for the mortgage and real estate industries. Removal of the word "measured" could have caused an immediate spike in mortgage rates. Instead, mortgage rates should continue to rise, but at a "measured" pace.

posted by Dahcredyns at 11:56 AM 0 comments

Monday, March 21, 2005

Tension regarding rates and tomorrow's Fed meeting

There is much buzz regarding this week's Fed Meeting. While everyone expects rates to rise, the real concern is about whether there will be any hints as to where the Fed will go from here. Will the Fed continue with slow and steady increases, or something less methodical?

Mortgage rates have also been on a slow and steady rise, and the Fed's actions are considered one of the wild cards in the housing market, especially in red hot markets, such as Los Angeles.

Developing....

posted by Dahcredyns at 6:47 PM 0 comments

Friday, March 18, 2005

What will the Fed do next week with rates?

Interest rates. In some ways low interest rates have helped float the economy the last couple of years. However, rising oil prices have some talking inflation and the possible need to raise rates faster. Still, most think the shock of high oil prices will force the Fed. to move more slowly and cautiously than previously expected.

Thus, mortgage rates will rise, but they will probably not rise much anytime soon.

posted by Dahcredyns at 7:56 AM 0 comments

Wednesday, March 16, 2005

Mortgage Activity up last week

Amid rising interest rates, mortgages were up last week. In previous weeks, new mortgages on homes have been up slightly, but mortgage activity was down overall, due to a dwindling refinancing market.

Last week both new mortgages and refinances were up according to the Mortgage Banker's Association. If rates slowly and steadily continue to rise, will new mortgage applications increase as consumers seek to take advantage of, possibly, once-in-a-lifetime low interest rates?

We should find out over the next few weeks. Request to be contacted by a mortgage broker.

posted by Dahcredyns at 8:42 AM 0 comments

Tuesday, March 15, 2005

Mortgage rates rising

30-year mortgage rates hit their highest level in seven months, according to Freddie Mac. It was the fourth straight month that interest rates have risen, and it's the highest rates have gone in 7 months.

According to an MSNBC article, "Analysts said that last week's good news on employment, showing that the economy created more than a quarter-million jobs in February raised worries in financial markets about possible future inflation caused by stronger-than-expected economic growth."

Is the game up? Historically low mortgage rates have created a real estate bubble in California, according to some analysts. Rates going up, might just be the pin to pop the bubble.

posted by Dahcredyns at 6:59 PM 0 comments

Wednesday, March 09, 2005

Mortgage Apps. Down Again on less refinancing

Mortgage applications for new homes were up last week, but refinancing continues to drag the overall mortgage market down according to the Mortgage Bankers Association.

The average 30 year mortgage rate was 5.69, down from 5.74 last week.

posted by Dahcredyns at 1:35 PM 0 comments

Wednesday, March 02, 2005

Refinancing down almost 10%

The Mortgage Bankers Association said mortgage application activity decreased 2.4 percent in the week ending Feb. 25. The drops were caused by an almost 10 percent drop in refinancing - as interest rates rose last week.

posted by Dahcredyns at 6:59 AM 0 comments