Realtytrac, a company that compiles data on home foreclosures, showed in recent data that foreclosures are not a national crisis, but more of a regional problem.
There are pockets, places such as Stockton, CA and Las Vegas, NV where the foreclosure rate is in excess of 4%, however, the national average is 1.033%. Considering the fact that 30% of all homes are actually free and clear of any mortgage, the true foreclosure rate is actually seven tenths of 1% of all homes.
In Santa Rosa, the price range up to $500,000 has been hit hard and about 50% of all the homes on the market in that price range are ‘troubled’ sales. So yes we are hit hard, however, looking at the nation wide numbers, it gives perspective and brings the point home that NOW is a great time to buy or move up.
Have a great day!
Mirjam (mirjam@c21alliance.com)
Mr. Bernanke is a very busy man nowadays. Working weekends to make the J.P. Morgan Chase & Co/Bear Stearns Cos deal happen and a 1/4 point rate cut this Sunday is unprecedented. And then yesterday an other rate cut for the short-term interest rates with the 0.75 percent cut. This means that the federal funds rate, which banks charge each other for loans, has been lowered six straight times over six months, driving it down to 2.25 percent from 5.25 percent.
The Fed not only pushed its benchmark rate to the lowest point since late 2004, it also cut the discount rate by 0.75 percent to 2.5 percent. That’s the rate the Fed charges banks and brokers that borrow directly from it.
Some of us have worries about inflation and rightfully so. However, all and all for now, this is good news. And the reason to mention the news above is that some people who did sign an adjustable rate mortgage that will reset this year might be better of that they expect.
Should you be in that situation, take our your papers and look how the mortgage will change, based upon which index/rate. Especially if you house does not have the same market value as is had when you bought it and refinancing will be difficult. Look at what your mortgage will do, it might be not that bad…
Should you have difficulties finding the info in the note, don’t hesitate to call your Realtor or you lender and have him/her help you. They will be happy to do so. (I will…)
Have a great day, it might turn out better than you think!
Mirjam (mirjam@c21alliance.com)