One of the best resources for a professional in real estate is from the Mortgage Banker’s Association (see http://www.mbaa.org/It also provides great information for your educated buyer to understand what the “pros” are saying.
Soooo today in the News we see
Fed Chairman Vows to Curb Mortgage Abuses
Charlotte Observer (NC) (07/20/07); Aversa, Jeannine
In testimony before the Senate Banking Committee on Thursday, Federal Reserve Chairman Ben Bernanke said the central bank is looking into ways to protect home buyers from predatory lenders. Under consideration are enhanced disclosures as well as restrictions on the use of prepayment penalties and mortgages with no income verification. Bernanke speculated that credit losses tied to delinquent subprime mortgages ultimately could reach as high as $100 billion. Despite the central bank’s plans, Sen. Charles Schumer, D-N.Y., insisted that federal legislationis necessary to protect consumers and “prevent this subprime mess from happening again.”
My commentary:
I believe that soon the entire industry of Mortgage lenders will have to be licensed or certified as our real estate professionals are in every state. Oftentimes when the market is great–low interest rates, lots of buyers, some individuals from other industries like retail, services or even manufacturing fill the local junior college real estate classes because they are looking for the “quick buck” in real estate sales or mortgages. We are seeing those individuals leaving the market, thank goodness, and the dedicated professionals staying.
Read this….Mozilo: Pain to Last Until ’09
American Banker (07/20/07); Berry, Kate
The mortgage market probably will not recover until 2009, according to Countrywide Financial Corp. Chairman and CEO Angelo Mozilo, who originally thought a rebound would occur next year. Mozilo believes a decline in interest rates could be a positive consequence of problems in the subprime mortgage market. However, he is worried about excessive regulation in response to the market’s ongoing weakness, which would dry up creditat a time when borrowers need to refinance out of adjustable-rate mortgages. “A lack of liquidity will kill you instantly, and that’s the issue we’re facing today,” Mozilo remarked.
My commentary….
I think this opinion swings widely from area to area. Certainly in areas of CA, NV and AZ we are seeing an extended softness in the market….however in the Wine Country the appeal is still strong. Great time to buy…..don’t sit it out. Be sure to visit are previously listed OPEN HOUSES this weekend! because
Please read on…..
30-Year Mortgage Rates Remain Near Yearly High
San Jose Mercury News (CA) (07/20/07); Crutsinger, Martin
The 30-year fixed mortgage rate held steady at 6.73 percent this week, which Freddie Mac chief economist Frank Nothaft attributes to recent economic data failing to have any impact on inflation forecasts. The five-year adjustable mortgage rate also stayed firm, averaging 6.35 percent. The 15-year fixed mortgage rate slipped a notch to 6.38 percent from 6.39 percent, while the one-year adjustable rate bumped up to 5.72 percent from 5.71 percent. The 30-year fixed rate was 6.80 percent at this time last year, while the 15-year rate stood at 6.41 percent and the five-year and one-year adjustable rates at 6.36 percent and 5.80 percent, respectively.
My commentary….
These are NOT bad rates. Some of us remember the days of double digit interest rates. My home was at 16% in 1981 and both my husband and I had six figure incomes and we could barely qualify…so let’s keep this in perspective!!!
Take time this weekend to drive up to see us? Enjoy some sun, some wine and remember that Mirjam and I would like to see you at our open houses!!