Mortgage Update

Despite the fact that the mortgage hit another record low, the eighth record low for the past year, there were few people taking advantage of it. The issue is that most all who can afford to refinance or purchase have already done so, that coupled with the fact that it is extremely to qualify in many cases.

The old record set just one week ago was 3.89% for an average 30-year fixed rate mortgage. Thge new record set this past week is now 3.88% just ticking down slightly from last week and enough to set the new record. Records for mortgage rates date back to the 1950's.

Interestingly, the rate for a 15-year fixed mortgage rose slightly from its record set last week to 3.17%.

Two weeks ago last week, the average rate on a 30-year fixed mortgage fell to a record low of 3.91 percent. After bouncing up above 4 percent briefly last week, the average rate again hot the record low established two weeks ago.

The 15-year average rates were down to 3.23 percent, and although down this past week, it remained higher than the record low set several weeks ago of 3.21 percent.

Always at issue is the fact that few people qualify to take advantage of these low rates because of the high unemployment  and flate wages. There is also the fact that many people are scared to invest in a home at this time fearing that the home could well loose value over the next couple of years. 

We all know that the rates will eventually rise, and for those who…

The following srticle was contributed by Jasmine Reese...

Updates to the USDA Loan Program

Every year, the USDA Guaranteed Home Loan Program seems to undergo updates, making it a more realistic and borrower friendly program. Although many still do not take advantage of it, that could quickly change in the upcoming years.

The program has the lowest foreclosure rate of any of the conventional mortgage programs - even lower than the extremely popular Federal Housing Administration home loan.

Recent Changes

As of October 1st, the USDA now requires a fee of 0.3 percent of the unpaid principal balance of the loan. In addition, the funding fee decreased from 3.5% to 2%. These fees help the program to limit its reliance on taxpayer support. It should also…

This past week, the mortgage rates again fell to near the all-time low but that has done little to ignite the home buying market. The average  rate for a 30-year fixed mortgage fell to 4.10%, while the average rate for a 15-year fixed mortgage fell to 3.38%.  The rate have hovered near the all-time lows for about a month now, but has not stimulated the reat estate market.

At issue is the national high unemployment rate, low home values coupled with declining wages.  That plus the fact people in this Country are very skeptical about purchasing a home where they feel that the value could still drop and they would be under water despite the low mortgage rates.  All in all it is a vicious cycle.

What makes the whole senario even more interesting is the…

Kevin Pearia, the Content Director from USDALoans.com, wrote the following article regarding USDA Loans and I thought that it was timely information that anyone considering financing a home might be interested in.

Why Floridians Should Choose  USDA

When many think of the USDA Home Lending Program, if they even know it’s available, they tend to assume it is only available to farmers and to those seeking extreme rural living. Although the program was originally designed with rural living in mind, the program has adapted with urban sprawl in mind and now includes several areas on the outskirts of metro areas, and some even located within city limits.

But location isn't the only reason to choose a USDA home loan over a conventional or FHA home loan.…

For the first time ever, the 30-year fixed rate mortgage rate dipped below the 4% threshold to 3.94%, while the popular 15-year fixed rate dropped to 3.26%. That rate has dropped for the past six weeks in a row and also was a new record low.  If you have the capability of qualifying, it is a fantastic time to finance or re-finance a property.

The low rates are not the issue, but more so the sluggish economy, high unemployment and huge debt loads that are affecting why people are very reluctant to take advantage of the situation.  That coupled with the fact that the lenders have stringent requirements for those attempting to qualify have made life tough.

What really makes it sad when you look at the big picture is the fact that if more people were to…

The average rate on the 30-year fixed rate mortgage remained very low at 4.09%, a rate not seen since 1951.  The 15-year average rate is at 3.29%.  That makes the third week in a row that the rates have remained at historical lows.

It was not unexpected as the Federal Reserve revamped their holdings to help drive down the rates.  Yet even so, the question begs just how many people can qualify for these fantastic rates.  Unfortunately the answer is that there are not many because of high unemployment and massive individual debt.

The low rates have failed to boost home sales in many parts of the country and yet we in Collier County have the luxury of having seen almost 20% of our inventory depleted this past month and 19% the month prior.

It just shows…

If ever there were a time to finance or refinance a property, it is certainly right this moment.  The big question is just how many people will qualify that apply and the scary thought is that it may not be that many with the tighter banking restrictions. 

The issue is that many people have high debt loads couipled with high unemployment and credit restrictions are much higher then years prior.  With that being the case, it won't matter how low the rates go

Rates fell to their lowest level in the last 6 decades with the 30-year fixed rate at 4.12% which was down from the prior week's 4.22%.  The only time that the rates have been less was back in 1951 when the longest length of a loan was 25 years and not the 30-year loans that we have today. 

Will…

Rates on a 30-year fixed mortgage hit lows not seen since 1971 this past week.  The rate dropped to 4.15% from 4.32% just a week ago.  The only time that rates were lower was back in the 1950s although back then there were very few 30-year mortgages.

One would normally think that the low rates would help to stimulate home buying process and the economy, but that in fact is not happening.  At issue is the fact that mortgage qualifications are far tougher then they were in the past and also that selling a home in the current market is far more difficult as well.  People are struggling to rid themselves of their debt load and are virtually unable to take advantage of getting a mortgage.   

And yet to me these new low rates make it an awfully compelling…

Despite the fact that it looks as though our trusty lawmakers are going to reach a last minute agreement on raising the debt ceiling, mortgage rates have really nowhere to go but up. 

Most all the analysts are predicting higher rates in the very near term no matter what the government does regarding the debt crisis.  If you are thinking about a mortgage or the possibility of refinancing, I think it extremely prudent to take action now.  There is a strong possibility that if you were to look back six months from now you would be regretting the fact that you didn't take action six months prior.

The rates ending last week rose slightly to 4.55% for a 30-year fixed rate mortgage.  It will be interesting to see how much higher they go this week following…