Thought for the week:
“The future belongs to those who believe in the beauty of their dreams.” Eleanor Roosevelt
Success Story:
Two brothers-in-law have a simple dream of starting a business and making $75 a week. They have a brilliantly simple marketing philosophy: one product served thirty-one different ways. Can you name them? Find the answer at the bottom.
In the News:
While it can’t be said that the U.S. economy has begun a recovery yet, there are signs of hope. According to the Economic Cycle Research Institute the decline in the annualized growth rate of our economy has slowed by 6% over the past six weeks. There is no recovery in sight, but the ECRI states ‘the up tick in its growth rate to a six-week high suggests the pace of contraction will slow in coming months’. This means ‘Good News’ could be on the horizon.
As stated in prior Market Updates, national real estate statistics are driven by numbers in Florida, Las Vegas, Arizona, California and Northern Virginia. On Friday, I spoke with a with Charlottesville resident vacationing at their 2nd home in south Florida. He told me about the opening of a new subdivision near his home with two model homes. The lots went on the market last Saturday, and cars were lined up for miles waiting to get into the area to view the property. His realtor had to cancel a couple of their planned golf outings, because he was too busy to get away. If this is a sign of that the Florida market is beginning to turn, it really is ‘Good News’.
Closer home, the Northern Virginia purchase market has heated up. Buyers are in the market and properties are moving. Our SunTrust Mortgage offices in Northern Virginia have full pipelines of purchase loans. Purchase applications have continued to increase in our office weekly as well. More importantly nationally applications for purchase mortgages increased 7.1% last week. If this trend continues, the media could jump on board leading to a change in the mindset of many future buyers. That would be ‘Good News’.
I would be remiss in not pointing out that potential buyers waiting for the right time should consider the facts above when considering how long they can afford to wait.
Market Update:
Global investors are constantly searching for opportunities that will provide the greatest return with the least amount of risk. As global financial markets struggled, many have searched for a safe haven in the U.S. financial markets. With the backing of the U.S. Government, investors view the Treasury and mortgage bond markets among the best opportunities resulting in an increased demand for U.S. investments such as mortgage backed securities. The increase in demand pushed prices higher and interest rates lower this week.
This week China’s Premier expressed concerns about the amount of investment his country has in U.S debt. This caused a panic in the bonds markets. The panic was quickly calmed, but uncertainties remain regarding the future of China’s continued involvement in future purchases. China is the largest foreign investor in U.S. debt. As we have stated often in our Market Updates, a reversal of this foreign demand could result in a spike to interest rates.
Potential buyers need to keep this in mind and understand that despite the efforts of our government, there are factors beyond their control that influence mortgage rates. Buyers should not assume today’s low interest rates will go unchanged in the future.
Let’s go get ‘em”!!
Interest Rates:
On Friday March 13th your purchase client with a 720 credit score putting 20% down could secure a conventional 30-Year Fixed rate at 4.50% with 1.125 points on a 30-day lock (APR: 4.634%).
FHA has established Risk Based Pricing with regards to credit scores. Borrowers with scores <660>719 will have a rate improvement. On Friday March 13th your FHA purchase client with a 660-719 credit score could secure a 30-Year Fixed rate at 4.750% with 1.0 point on a 30-day lock (APR: 5.368%). Remember the APR on FHA includes the MI.
Jumbo rates are subject to Risk Based Pricing with regards to credit scores. Borrowers with scores <740>759 will have a rate improvement. On Friday March 13th your Jumbo purchase client borrowing $1MM with a 740 credit score putting 25% down could secure a 30-Year Fixed rate at 5.875% with 1.250 points on a 30-day lock (APR: 6.008%).
(Burton Baskin & Irvine Robbins of Baskin-Robbins Ice Cream fame)
Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com
Monday, March 16, 2009
Subscribe to:
Post Comments (Atom)
Pages
About me
Blog Archive
-
▼
2009
(808)
-
▼
March
(18)
- Foreclosure "Rescues" May Be Illegal
- Foreclosure "Rescues" May Be Illegal
- Example Hardship Letter
- Example Hardship Letter
- Beware of Foreclosure Scams
- Beware of Foreclosure Scams
- Short Sale Hardship Letter Example
- Short Sale Hardship Letter Example
- HUD AWARDS $648,612 TO THE VIRGINIA PHAs
- HUD AWARDS $648,612 TO THE VIRGINIA PHAs
- Obama Grants Money To Home Programs in Virginia
- Obama Grants Money To Home Programs in Virginia
- Understanding the Short Sale Process
- Understanding the Short Sale Process
- FAKE HUD WEBSITE...BEWARE!
- FAKE HUD WEBSITE...BEWARE!
- Suntrust Market Update
- Suntrust Market Update
-
▼
March
(18)
0 comments:
Post a Comment