CURRENT NEWS IN REAL ESTATE 2012
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Mortgage Rates Match Record Lows This Week
DAILY REAL ESTATE NEWS | FRIDAY, JANUARY 06, 2012
With signs of an improving housing market, mortgage rates took another dip this week, matching at or near the all-time record lows, Freddie Mac reports in its weekly mortgage market survey.
For the fifth consecutive week, 30-year fixed-rate mortgages have averaged below 4 percent, which was unheard of until a few months ago.
"Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. Pending home sales for existing-homes soared 7.3 percent in November — its strongest pace since April 2010, the National Association of REALTORS® recently reported. Construction spending also increased in November by 1.2 percent — all serving as positive signs that housing is on the rebound.
Here’s a closer look at rates for the week ending Jan. 5:
With signs of an improving housing market, mortgage rates took another dip this week, matching at or near the all-time record lows, Freddie Mac reports in its weekly mortgage market survey.
For the fifth consecutive week, 30-year fixed-rate mortgages have averaged below 4 percent, which was unheard of until a few months ago.
"Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. Pending home sales for existing-homes soared 7.3 percent in November — its strongest pace since April 2010, the National Association of REALTORS® recently reported. Construction spending also increased in November by 1.2 percent — all serving as positive signs that housing is on the rebound.
Here’s a closer look at rates for the week ending Jan. 5:
- 30-year fixed-rate mortgages: averaged 3.91 percent, with an average 0.8 point, matching its previous record low that it set a few weeks ago. Last week, 30-year rates averaged 3.95 percent and a year ago at this time, 30-year rates averaged 4.77 percent.
- 15-year fixed-rate mortgages: averaged 3.23 percent, with an average 0.8 point, dropping from last week’s 3.24 percent average. Last year at this time, 15-year mortgages averaged 4.13 percent.
- 5-year adjustable-rate mortgages: averaged 2.86 percent, with an average 0.7 point, dropping from last week’s 2.88 percent average. Last year at this time, 5-year ARMs averaged 3.75 percent.
- 1-year ARMs: averaged 2.80 percent this week, with an average 0.6 point, inching up slightly from last week’s 2.78 percent average. A year ago, 1-year ARMs averaged 3.24 percent.
Lenders Are Making More Loans
While the growth has been modest, banks are starting to make more loans again, The New York Times reports. Yet, the lending does tend to favor the strongest corporate and consumer borrowers, the article notes.
With more stringent underwriting criteria the last few years, many borrowers have expressed concern over the increasing trouble in qualifying for a loan today.
But “the narrative that banks aren’t lending is incorrect,” Timothy J. Sloan, Wells Fargo’s chief financial officer, told The New York Times. “Lending is strong, and based on what we’re seeing,” it will “continue to grow.”
Citigroup, for example, recently announced loan growth in the third quarter compared to a year ago in nearly all of its businesses.
The growth in loans is likely due to record-low interest rates and more borrowers seeking cash on their credit lines, experts say.
However, home lending still remains down. Mortgage and home equity loans have dropped more than 6.2 percent since peaking in late 2007 and early 2008, according to Federal Reserve data.
“I don’t think the lending window is open near enough to what you need to see to get the economy growing, businesses expanding, and to bring the unemployment rate down,” Bernard Baumohl, the chief global economist at the Economic Outlook Group, told The New York Times.
Source: “Banks Start to Make More Loans,” The New York Times (Oct. 17, 2011)
With more stringent underwriting criteria the last few years, many borrowers have expressed concern over the increasing trouble in qualifying for a loan today.
But “the narrative that banks aren’t lending is incorrect,” Timothy J. Sloan, Wells Fargo’s chief financial officer, told The New York Times. “Lending is strong, and based on what we’re seeing,” it will “continue to grow.”
Citigroup, for example, recently announced loan growth in the third quarter compared to a year ago in nearly all of its businesses.
The growth in loans is likely due to record-low interest rates and more borrowers seeking cash on their credit lines, experts say.
However, home lending still remains down. Mortgage and home equity loans have dropped more than 6.2 percent since peaking in late 2007 and early 2008, according to Federal Reserve data.
“I don’t think the lending window is open near enough to what you need to see to get the economy growing, businesses expanding, and to bring the unemployment rate down,” Bernard Baumohl, the chief global economist at the Economic Outlook Group, told The New York Times.
Source: “Banks Start to Make More Loans,” The New York Times (Oct. 17, 2011)
6 Good Reasons To Buy A Home Now
AOL REAL ESTATE, Courtesy of Kiplinger Posted September 8th, 2011
1. Prices have nearly hit bottom.
2. Houses are affordable again.
3. Mortgage rates won't go any lower.
4. It's a buyer's market.
5. You may find a distressed property.
6. Homeownership is still attractive.
1. Prices have nearly hit bottom.
2. Houses are affordable again.
3. Mortgage rates won't go any lower.
4. It's a buyer's market.
5. You may find a distressed property.
6. Homeownership is still attractive.
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Genesis Andrade values the importance of purchasing a home, because aside from being one of your biggest financial decisions, it is also a very special time in one's life. With this in mind, Genesis works alongside a team of experts that have years of experience in the Real Estate industry that are ready to tackle any curve ball in any Real Estate transaction.
