Jude's Real Estate Rumblings

head_left_image

Regulator sees mortgage rates below 4 percent

Regulator sees mortgage rates below 4 percent, an article from MSNBC.com, reports that government efforts to easy credit and jump-start home sales could slip mortgage rates "well below 4 percent," according to James Lockhart, whose agency oversees Fannie Mae and Freddie Mac.  Unfortunately, he was unable to provide a timeline for the drop.  Analyst Mike Larson of Weiss Research Inc. is selling evidence that the governments attempts to drive down mortgage rates is already having some success.  "Lower prices in some of the hardest hit markets, and almost irresistible bargains on distressed properties, are also bringing some buyers out of the woodwork," said Larson.
http://www.msnbc.msn.com/id/28165488/
0 comments • Jude Sandvall, CNE, SFR 720-255-1021 • December 11 2008 11:26AM

Down sizing: Up with efficiency

Down sizing: Up with efficiency, an article from The Denver Post, reports that more homeowners are considering a move from their suburban homes to smaller condos or townhomes closer to the inner city.  Empty-nesters and small families alike are thinking that it may make economic sense.  In October, the average selling price for a condo in the Denver area was $164,686, as compared to $250,172 for a single-family home.  Benefits to downsizing include a smaller mortgage, lower utilities and less taxes. 
http://www.denverpost.com/headlines/ci_11188030
0 comments • Jude Sandvall, CNE, SFR 720-255-1021 • December 11 2008 11:25AM

Half of modified mortgages in default again

Data raises questions if government funds might be better spent on job creation.

WASHINGTON (AP) -- More than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again, banking regulators said Monday.

The new data raise questions about whether government money may be better spent on creating jobs, rather than averting foreclosures, said John Reich, director of the federal Office of Thrift Supervision office at a housing industry forum sponsored by his agency.

http://money.cnn.com/2008/12/08/real_estate/meltdown.ap/index.htm?postversion=2008120814

1 comment • Jude Sandvall, CNE, SFR 720-255-1021 • December 11 2008 11:21AM

Buyers' recourse: protecting home cost

Buyers' recourse: protecting home cost, an article from The Denver Post, reports that more and more developers are offering price protection programs.  Celebrity Custom Homes puts 10% of the sales price into an escrow account.  If after three years the home has depreciated, the buyer gets the money.  The Landmark in Greenwood Village is offering a buyback program for the last 12 condos in its first tower.  After living in the residence for three years, buyers can exercise the buyback option if their property has depreciated.  Byers Street Properties is offering a price-protection program for it's Berkeley Row project that is based on the S&P/Case-Shiller 20-city home price index.  The company will refund a portion of the sales price equal to any decrease in the index over the subsequent year.  By offering these programs, developers are expressing their confidence in the market. 
http://www.denverpost.com/businessheadlines/ci_11151968
0 comments • Jude Sandvall, CNE, SFR 720-255-1021 • December 09 2008 11:51AM

Washington Report: Rate Reduction Proposals

Washington Report: Rate Reduction Proposals, reports that there was a lot of talk last week about the Treasury Department and the real estate industry's desire for widescale rate reductions for home purchases.  In one scenario, a government agency would purchase 30-year mortgages at a below-market fixed interest rates.  There is potential for the Treasury to make money through a program of this type - by selling securities to bond investors at 3% rates and then acquiring privately-originated mortgages at 4.5%.  Another option is for the government to pay loan discount "points" or fees.  The goal is to pull people into the housing market to stimulate construction and move unsold inventory.  As you could imagine, 4.5% interest rates could motivate a lot of people to get off the fence and buy. 
http://realtytimes.com/rtpages/20081208_washingtonreport.htm
0 comments • Jude Sandvall, CNE, SFR 720-255-1021 • December 09 2008 11:50AM

Low Prices, Low Rates Mean Opportunity

Low Prices, Low Rates Mean Opportunity, an article from Realtor Magazine Online, reports now may be the best time for first-time buyers to jump in.  Housing prices have fallen and interest rates are close to 5.5%, and may even fall as low as 4.5%.  In many parts of the country, winter is usually a great time for bargain shopping.  Also, new homes are becoming scarce and a steep drop-off in the inventory of new homes is expected to come soon.  Location, location, location is still a rule.  Purchasing the best-priced house in a great neighborhood is always a good bet. 
http://www.realtor.org/rmodaily.nsf/pages/News2008120806
0 comments • Jude Sandvall, CNE, SFR 720-255-1021 • December 09 2008 11:49AM