Rates down, Mortgage Applications Up

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Rates down, mortgage applications up - Originally posted by The Portland Business Journal:

Mortgage applications rose last week as interest rates fell.

The Mortgage Bankers Association’s index of applications to purchase or refinance a home gained 5.6 percent from the previous week.

The refinance index gained 6.9 percent in the week ended Aug. 14, reversing the 7.2 percent loss in the previous week. The purchase index increased 3.9 percent, the third consecutive weekly gain, according to the MBA.

The average interest rate for 30-year, fixed-rate mortgages decreased to 5.15 percent from 5.38 percent, with points decreasing to 0.98 from 1.18.

The average rate for 15-year, fixed-rate mortgages decreased to 4.52 percent from 4.71 percent, with points decreasing to 0.93 from 1.20.

The average rate for one-year, adjustable-rate mortgages decreased to 6.66 percent from 6.71 percent, with points decreasing to 0.07 from 0.08.

There are other signs that the housing market is stabilizing. On Tuesday, the Commerce Department reported that builders broke ground on more single-family homes in July for a fifth straight month.

What does this mean for buyers this week? Well, although there are still a number of issues to deal with (like the HVCC and new disclosure's act) it's still a ripe opportunity to take advantage of low rates to purchase a home.

It's not all roses, but it's definitely an ideal time for First Time Homebuyers to take advantage of lower home prices (all those foreclosed bank-owned homes are increasing) and also the $8000 Tax Credit deadline is looming, so time to take a piece of that as well.

Interested in an opportunity to buy a home through the Homepath Program from Fannie Mae? Why Homepath, you might ask? No appraisal needed, up to 6% seller concessions (Fannie Mae's the seller, so they're likely to agree) and no mortgage insurance. Plus in larger markets like the Portland, Oregon, Vancouver, Washington areas (even Spokane, Seattle, Tacoma, Olympia in Washington - Bend, Salem, Eugene in Oregon) have a number of Homepath homes for sale.

Attend one of our weekly 30 minute webinars on how the Homepath Loan Program from Fannie Mae works by visiting http://homepath01.eventbrite.com and register today!

Have a great Wednesday everyone!

Ed Bisquera

P.S. My FREE Social Media Marketing Online Workshop is coming up next week - more details can be seen at http://SocialMediaNetworking101.com

What do many Facebook users forget to do with their profile?

What do many forget to do on their Facebook profile?

Watch the video to find out what that is, which is a key part in how transparent you want and don't want to be to the public at large, when using Facebook, a top 10 Social Media Site. Plus last week's Trivia question winner, my new favorite coffee shop in Camas, Washington, and upcoming events! Enjoy! :-)

Quote of The Day

Patience is the art of hoping
~ Luc de Clapier

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Today's Mortgage Rates Watch & Real Estate/Mortgage News

Rates look like they are sitting fairly stable at the 5.25-5.5% range (5.67%-5.89% APR) on a Conventional 30 YR Fixed Loan, NO pts, 20% down (80% Loan To Value), Owner Occupied, with 740 or higher FICO credit score.

The benchmark 30-year fixed-rate mortgage fell 10 basis points, to 5.7 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.48 discount and origination points. One year ago, the mortgage index was 6.53 percent; four weeks ago, it was 5.65 percent.

The benchmark 15-year fixed-rate mortgage fell 9 basis points, to 5.07 percent. The benchmark 5/1 adjustable-rate mortgage fell 9 basis points, to 5.17 percent.

Mortgage rates didn't move much in the days before today's release of the June employment report, as mortgage bond investors hedged their positions. The consensus estimate on Wall Street was that the employment report would show that the economy shed about 365,000 jobs in June. If the number of jobs lost was to be substantially higher than that, mortgage rates might fall; if the number was to be much lower, the result could be higher mortgage rates.

More eligible for refis

In other news, the Obama administration expanded the number of people who will be eligible for mortgage refinancing. The Making Home Affordable refinancing program will now be available for loans of up to 125 percent of the property's value. Previously, the limit had been 105 percent. (You can calculate your loan-to value ratio here.)

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UPCOMING EVENTS
-----------------

"Getting Connected Through Social Media" Class
for Real Estate Professionals, 3 CE Clock hours

Date: Thursday, July 23, 2009
Time: 1 -4 PM
Location: Keller Williams, Downtown Office
915 Broadway Ste 100, Vancouver, WA 98660

== Cost: $27 Early Bird special before Midnight, July 21, 2009 ==

Learn how getting connected and participating in the conversation online where your clients, prospects and audience is, using Social Media tools, is important to your Real Estate business. Produced by Natalie Danielson of Professional Directions/Clockhours.com and taught by Ed Bisquera and Natalie Danielson.

Details at the event signup page here:

Getting Connected through Social Media Class for Realtors.

-----------------

TODAY'S FREE LUNCH TRIVIA QUESTION OF THE DAY

-----------------

What's the least popular month for weddings?
Answer: YOU TELL ME! :-)

So, for every correct answer that is either either replied via Facebook (post a reply/comment on my wall under the question) or Twitter (send me an @edbisquera reply) or post a comment here below on my blog, gets entered into a drawing to win a FREE Lunch to Blackstone, Gift Card valued at $50! Now, you can send me a private message via Facebook and Twitter too with the correct answer; that will get you entered to win.

Again, it's for every CORRECT ANSWER that gets you into the drawing. And I'll post a video recording of me drawing the winner next Wednesday, along with the new Wednesday Trivia for Free Lunch.

-----------------

Upcoming Homepath Home Buying & Loan Seminar
-----------------
Buy a Fannie Mae Owned Home (Bank Owned, REO Properties)
in the State of Washington
WITHOUT AN APPRAISAL!

Date: July 21, 2009
Time: 11 AM (45 minutes)
Location: 1001 Main St Suite A
Vancouver, WA 98660

Sign up for event here

We'll discuss at an upcoming Homepath Seminar how you can get a home, Owner Occupied or Non-Owner Occupied, in any state, especially Washington and Oregon, where:

1. A Homepath Mortgaged Home Loan requires NO APPRAISAL upon purchase
2. A Homepath Home Renovation Loan can be used for improvements (on designated properties only).
3. A Homepath Home requires NO MI (Mortgage Insurance)
4. A Homepath Home can be up to 97% Loan To Value (3 % down payment)
5. A Homepath Home can also be bought by investors up to 90% Loan To Value (only 10% down).

For more information, read a post about Homepath Homes for Sale, by my Senior Mortgage Consultant, Bill Black, Broker of Record here at Loan Network LLC (formerly America One Finance).

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Visit http://scribeit.org to read more about our Trivia winner, Joanne Laurent

Stay tuned to the next video blog post!
-----------------

Thanks again and speak with you soon!
Ed Bisquera, 360-597-8283 cell

===
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Key Element People Often Forget in Social Media Marketing?

What is the one key element people often
forget to complete thoroughly on Social Media sites?

Watch the video to find out what that is, which can help your search engine rankings and is Pillar Number One of the 5 Pillars of Social Media Marketing. :-)

Quote of The Day

If we're growing, we're always going to be out of our comfort zone.
~ John Maxwell
-------------------
Scroll Down Below To See Info On Google Profiles!

Today's Mortgage Rates Watch & Real Estate/Mortgage News

Rates look like they are sitting fairly stable at the 5.25-5.5% range (5.67%-5.89% APR) on a Conventional 30 YR Fixed Loan, NO pts, 20% down (80% Loan To Value), Owner Occupied, with 740 or higher FICO credit score. We should see some help, since today's announcement of a nationwide unemployment rate of 9.5%, with job losses for last month around 467,000 nationwide.

-----------------

UPCOMING EVENT
-----------------

"Getting Connected Through Social Media" Class
for Real Estate Professionals, 3 CE Clock hours

Date: Thursday, July 23, 2009
Time: 1 -4 PM
Location: Keller Williams, Downtown Office
915 Broadway Ste 100, Vancouver, WA 98660

== Cost: $27 Early Bird special before Midnight, July 21, 2009 ==

Learn how getting connected and participating in the conversation online where your clients, prospects and audience is, using Social Media tools, is important to your Real Estate business. Produced by Natalie Danielson of Professional Directions/Clockhours.com and taught by Ed Bisquera and Natalie Danielson.

Details at the event signup page here:

Getting Connected through Social Media Class for Realtors.

-----------------

YESTERDAY'S FREE LUNCH TRIVIA QUESTION OF THE DAY

-----------------

What Lewis Carroll book was banned in China after censors decided:
"Animals should not use human language"?
Answer: YOU TELL ME! :-)

So, for every correct answer that is either either replied via Facebook (post a reply/comment on my wall under the question) or Twitter (send me an @edbisquera reply) or post a comment here below on my blog, gets entered into a drawing to win a FREE Lunch to Blackstone, Gift Card valued at $50! Now, you can send me a private message via Facebook and Twitter too with the correct answer; that will get you entered to win.

Again, it's for every CORRECT ANSWER that gets you into the drawing. And I'll post a video recording of me drawing the winner next Wednesday, along with the new Wednesday Trivia for Free Lunch.

-----------------

Upcoming Homepath Home Buying & Loan Seminar
-----------------
Buy a Fannie Mae Owned Home (Bank Owned, REO Properties)
in the State of Washington
WITHOUT AN APPRAISAL!

Date: July 21, 2009
Time: 11 AM (45 minutes)
Location: 1001 Main St Suite A
Vancouver, WA 98660

Sign up for event here

We'll discuss at an upcoming Homepath Seminar how you can get a home, Owner Occupied or Non-Owner Occupied, in any state, especially Washington and Oregon, where:

1. A Homepath Mortgaged Home Loan requires NO APPRAISAL upon purchase
2. A Homepath Home Renovation Loan can be used for improvements (on designated properties only).
3. A Homepath Home requires NO MI (Mortgage Insurance)
4. A Homepath Home can be up to 97% Loan To Value (3 % down payment)
5. A Homepath Home can also be bought by investors up to 90% Loan To Value (only 10% down).

For more information, read a post about Homepath Homes for Sale, by my Senior Mortgage Consultant, Bill Black, Broker of Record here at Loan Network LLC (formerly America One Finance).

-----------------
My Google Profile Page http://Google.com/profiles/edbisquera
Visit here for a video on how to create your Google Profile

Stay tuned to the next video blog post!
-----------------

Thanks again and speak with you soon!
Ed Bisquera, 360-597-8283 cell

===
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Can Facebook Save the Real Estate Market? | Newsweek Voices - Daniel McGinn | Newsweek.com

"A Broker’s Best ‘Friend’
Can Facebook revive the real-estate market?"

By Daniel McGinn
Published Jan 7, 2009

When I checked Facebook earlier this week, I learned from my friends' status indicators that Ken was looking forward to eating lasagna after a trip to the gym. Steve and Michelle were worrying about an ice storm. Bret was planning to cook a rib-eye steak. And Tracy Wortmann, a high-school classmate with whom I reconnected last fall, had a different piece of news to share: 'Tracy has 5 new listings, let me know if anyone is looking … Now is the time to buy!!!'"

Read the rest below:

Can Facebook Save the Real Estate Market? | Newsweek Voices - Daniel McGinn | Newsweek.com

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Top 10 Real Estate Websites - November 2008

"Top 10 Real Estate Websites - November 2008"

Top 10 Real Estate Websites - November 2008

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THE BABY BOOMER MARKET: 1 In 4 Boomers Plans Move to New Home

"One In Four Boomers Plans Move to New Home

One in four Baby Boom generation households (26%) expects a future move from their current home, with most reporting they will seek a single-level home that is more comfortable or convenient, according to a new survey conducted for AARP by Opinion Research Corporation.

Echoing past surveys, the research found that most Boomers (79%) say they would like to stay in their current home for as long as possible, AARP said. Less than 10% would like to stay in their current home but don’t think they will be able to do so.

Many of those who expect to move said they will be looking for a better house, a better climate or a home that is closer to family and friends. More than half of those Boomers (age 45-64) planning to move expect to look for a home that is all on one level (59%). About half said they will look for a newer home (50%) or a smaller home (49%).

One third of Boomers do not foresee any challenges with their current home that would cause them to consider moving. However, one-fourth say that stairs may be a concern. Others cite landscaping and yard challenges, bathroom issues, narrow doors and hallways and lighting problems.

Older boomers are significantly more likely than younger boomers to think that they will move into a single level home (68% vs. 54% of those planning to move), but age is not the only factor that affects expectations, the survey found. Boomer men are more likely than women to believe they will move into a newer home (61% vs. 42%) or move into a home in a warmer or better climate (41% vs. 25%).
Boomer women are more likely than men to think they will move into a smaller home (54% v. 41%).

“While boomers will reflect the patterns of earlier generations and mostly age in place, the sheer number of Boomers will increase demand for a whole variety of home and community options,” said said Elinor Ginzler, SVP of AARP.

According to AARP, the number of people age 65+ is expected grow to 70 million by 2030.

About the survey: The poll was conducted August 29 - Sept. 8, 2008 by Opinion Research Corporation. Interviews were conducted with 1,273 respondents age 45 to 64 using a stratified, random-digit dialing sample of US telephone households. All responses were subsequently weighted by age, gender, ethnicity, and region to be nationally representative of the US population 18+. The poll was released last year to coincide with the announcement of the 2008 Livable Communities Awards from AARP and the National Association of Home Builders (NAHB).

One In Four Boomers Plans Move to New Home

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Real Estate Report 01/06/09 Portland,OR & Vancouver, WA

[Click here for latest Real Estate & Economic Report]

Jan 6 2009 Real Estate & Economic Report from Ed Bisquera of Mortgage Express metro markets Portland Oregon & Vancouver Washington.

The Big Question 

In the past week we gave some perspective regarding how housing prices have performed in the long run. Despite the recent precipitous drop in prices, housing as an investment performs strongly when you look at the big picture. On the other hand, we can’t ignore the fact that prices have fallen significantly in the past year and the overall economy is not likely to recover until home prices stop dropping. So, the big question is, when will home prices stop dropping? With so many foreclosures on the horizon, there may seem to be no end in sight to the current cycle. Once again, let’s add some perspective.

Remember, a few years ago when it seemed that home prices would not stop rising? Everyone was outbidding each other to get the next property. Of course we knew that home prices could not skyrocket forever because people would not be able to afford to purchase. The same applies here. Home prices can’t just keep dropping. As prices become lower, affordability will go up and more Americans will purchase real estate. Recent record low rates will help move that date forward as well. Even more important, as buyers come back to the market and prices stop falling, lenders will be more confident in lending in a stable price environment. This is why price stability is so important to our overall financial recovery. When will this happen? Watch existing home sale statistics as we ring in the New Year, as they will be the most important indicator of whether buyers are returning to the game.

The Markets.

Mortgages continued their assault on record lows as they dropped for the ninth week in a row, although the rate of decline has slowed in the past few weeks. Freddie Mac announced that for the week ending December 31, 30-year fixed rates averaged 5.10%, down from 5.14% the week before. The average for 15-year fixed fell to 4.83%. Adjustables were mixed with the average for one-year adjustables decreasing to 4.85% and five-year adjustables rising to 5.57%. A year ago 30-year fixed rates were at 6.77%. "Rates for 30-year fixed-rate mortgages fell for the ninth straight week and represented a third consecutive all time record low since Freddie Mac’s survey began in April 1971," said Frank Nothaft, Freddie Mac vice president and chief economist. "Since the end of October of this year, these rates have declined by about 1-1/3 percentage points, or a reduction of approximately $173 a month for a $200,000 loan. As a result, the number of refi applications for conventional mortgages jumped over 500 percent between the weeks ending on October 31st and December 26th. Lower rates and falling house prices are also making homeownership more affordable to potential homebuyers. For instance, house prices fell 18 percent over the 12-month period ending in October, according to the S&P/Case-Shiller® 20-city composite index. Every city posted a second consecutive month of decline in October. From its peak set in July 2006, the composite index is down 23.4 percent."

Current Indices For Adjustable Rate Mortgages

REAL ESTATE NEWS

First-time homebuyers in 2008 can take an income-tax credit on their purchase, thanks to passage in Congress earlier last year of the first-time home buyer tax credit. The definition of first-time homebuyer is generous. To get the credit, the homebuyer cannot have owned a home in the previous three years. The home must be a principal residence and purchased between April 9, 2008 and July 1, 2009. The credit is equal to 10 percent of the purchase price, up to $7,500. Single taxpayers with modified adjusted gross income up to $75,000 and couples with MAGI up to $150,000 will qualify for full credit. Singles with MAGI up to $95,000 and couples with MAGI up to $170,000 will get a reduced amount. Those with higher incomes don’t qualify. If the amount of tax a homebuyer owes is less than the amount of the credit, they get to keep the difference in the form of an IRS refund. The homebuyer must begin to repay the credit in two years in increments of about $500 a year over a 15-year period for those who received the full credit Homebuyers who sell their home before the credit is repaid must pay off the loan with any profits. If they sell the home at a loss, the loan is forgiven. Source: Chicago Tribune

More buyers in search of home loans are turning to an obscure program operated by the United States Department of Agriculture. The program allows no-money-down purchases. In fact, including a mortgage insurance policy, a borrower can seek up to 102 percent. To be eligible, buyers can’t have income that exceeds 115 percent of the median county income. The loans are restricted to low-density areas, generally towns of no more than 25,000 residents. The loans are made by private lenders, then insured by the government. Some home builders are promoting the use of this program. "It’s one of our main tools right now," says John Bargnesi, vice president for sales of Scottsdale, Ariz., home builder Meritage Homes. Source: The Wall Street Journal

Shrinking employment is reducing the demand for commercial real estate, and the Urban Land Institute, an industry trade group, is predicting that the bottom of the commercial market is still six to 12 months away. "There is a psychological component to all this," said Robert Gardner, managing director of real estate consulting firm Robert Charles Lesser & Co. "Exuberance on the upside is being compounded on the downside and markets will overshoot in the other direction." Financing is almost impossible for developers to obtain in many parts of the country, even for modest projects. “The mega deal is done” at least for now, Gardner said. "Usually some markets perform better than others," said Delores Conway, director of the Casden Economic Forecast at University of Southern California, "but demand is weak everywhere." Source: Los Angeles Times

Ed Bisquera
Mortgage Express LLC - Oregon & Washington
13115 NE 4th St #160
Vancouver, WA. 98664
ed@pdxloan.com
(360) 597 - 8283

As your trusted Mortgage Consultant & Advisor, I help you understand the process of acquiring a residential, commercial or investment property loan. Communication and integrity are very important to me in earning your trust and your business. I'm your "Mortgage Matchmaker" helping you through the mortgage process and showing you innovations and the latest news you can use in the real estate and mortgage industry.

As part of my effort to share knowledge and keep you abreast of the latest news in real estate, finances and business in general, I offer this weekly and monthly newsletter update to you.

Please feel free to forward this or send anyone you know to my personal blog, at which this and past newsletters are available.

WA Lic # 510-LO-35270 OR ML #1952

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Schiff got it right... and why it's foolish to keep waiting to refinance!

Nov 2006 Peter Schiff Mortgage Bankers Speech Part 5 of 8
Interest rates may drop, but if values drop as well, refinancing will become difficult...

Schiff mentions a pendulum swing on prices of real estate, etc. I'm probably at risk at saying this publicly and on record, but I'm afraid we're still not on the other side of the pendulum swing. IF you've been waiting to refinance thinking rates will drop even lower, you're foolish. 2009 will see even lower values; probably another 9-13% drop in home values.

My point is, you can wait to get to 4.5% interest rates to refinance, but you will almost certainly have a home that's worth less in value. So, unless you had 10% or more in equity 2 years ago when you bought, you won't be refinancing to 4.5% or 5% or any rate this year. I guarantee it...

Great time to be a buyer, though, because of the low, discounted prices on homes. Investors (smart ones) will just get richer. One client bought home to live in ($244k listed, bought at $190k) but decided to rent out with renters waiting to move in, deposit and year lease signed. With 4.75% on loan, 20% down, can you say cash flow?? :-)

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