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

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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