The Phoenix Real Estate Advisor

Here’s a repost of a blog post on RisMedia about how volitale the interest rates are right now. As the market continues to improve we could see rates begin to climb. Especially if the government stops buying down the rate like it has been for a few months.

RISMEDIA, June 3, 2009-The weekly average mortgage rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year fixed mortgages increased last week to 5.25%, up from 5.02% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by leading real estate Web site Zillow.com(R). Meanwhile, rates for 15-year fixed mortgages rose to 4.78% from 4.60%, and 5-1 adjustable rate mortgages rose to 4.48% from 4.27% the week prior.

Mortgage Type Average Rate Average Rate % Change
Week ending 5/31/09 Week ending 5/24/09

30-year fixed 5.25% 5.02% 4.6%
15-year fixed 4.78% 4.60% 3.7%
5-1 ARM 4.48% 4.27% 4.8%

Rates dipped slightly over the weekend, but were expected to climb again during the week. The rate for a 30-year fixed purchase mortgage was 5.28% on Monday morning.

Thirty-year fixed mortgage rates varied by state. Maryland mortgage rates and Massachusetts mortgage rates were the highest, at 5.35% and 5.30%, respectively. Georgia mortgage rates were the lowest, at 5.15%. California mortgage rates were the most requested among all states.

State Average 30-yr. Average 30-yr. % Change
Fixed Rate Fixed Rate
Week ending 5/31/09 Week ending 5/24/09

Arizona 5.25% 5.04% 4.1%
California 5.24% 5.00% 4.7%
Colorado 5.23% 5.02% 4.1%
Connecticut 5.26% 4.99% 5.4%
Florida 5.19% 4.97% 4.4%
Georgia 5.15% 4.93% 4.5%
Illinois 5.28% 5.08% 4.0%
Maryland 5.35% 5.09% 5.1%
Massachusetts 5.30% 5.11% 3.7%
Michigan 5.21% 5.01% 3.9%
Missouri 5.25% 5.06% 3.8%
New Jersey 5.24% 5.02% 4.4%
New York 5.29% 5.05% 4.7%
North Carolina 5.27% 5.07% 3.9%
Ohio 5.28% 5.11% 3.3%
Oregon 5.27% 5.03% 4.9%
Pennsylvania 5.26% 4.99% 5.3%
Texas 5.25% 5.02% 4.5%
Virginia 5.23% 4.96% 5.5%
Washington 5.24% 4.98% 5.2%

The Zillow Mortgage Rate Monitor is compiled each week using thousands of mortgage rates quoted on Zillow Mortgage Marketplace by mortgage lenders to borrowers who have submitted loan requests. State-level data is gathered for the top 20 states with the highest quote volume on Zillow.

For more information, visit www.Zillow.com.

Read more: “Mortgage Rates Surge Late Last Week; 30-Year Fixed Rates Peak Near 5.40% But Fall Over Weekend | RISMedia” - http://rismedia.com/2009-06-02/mortgage-rates-surge-late-last-week-30-year-fixed-rates-peak-near-540-but-fall-over-weekend/#ixzz0HOeSLbKi&A

Here’s something I just received from one of my preferred lenders. If you’re thinking about buying a home and using your $8,000 tax credit, this might be for you. As he said it’s not here yet but should be shortly and I’ll let you know when it starts.

In a move that the NAR has been lobbying for and is sure to brings smiles to all first time home buyers, The FHA today announced that it would begin allowing its lenders to let first time home buyers use the $8000 tax credit as a down payment on a home. Up until now, buyers wouldn’t receive the funds until their tax returns were filed and they received their refund, and this has caused some home buyers to hesitate in using the credit.
HUD Secretary Shaun Donovan made the announcement during his address at the 2009 REALTORS(r) Mid-Year Legislative Meetings and Trade Expo being held in Washington, D.C..

“We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said. He added that FHA lenders will be allowed to “monetize” the tax credit through short-term bridge loans, which would allow eligible home buyers to have the funds immediately at the closing table.

Hopefully, this should be a further stimulus to a group of home buyers that have been slow to utilize the credit. According to a survey commissioned by Move, Inc. (which operates Realtor.com), as of a month ago almost 50% of home buyers didn’t know the credit exists, and nearly a third said the credit wasn’t large enough to get them into the market right away. With the release of this new announcement, we hope that those percentages will shrink considerably.

Jim Lee
Sr. Mortgage Consultant for On Q Financial, Inc.
Scottsdale, AZ 85260

480-444-7100 Main Phone or jim.lee@onqfinancial.com

www.onqfinancial.com

Today wraps up another all important 2 day Fed meeting.  The suits will be announcing their rate decision and policy statement at 2:15 pm ET this afternoon.  Nothing expected as far as key target rate changes go.  All eyes and ears will be focused on the tone and direction of the statement that is delivered.  As we all know the Feds plan to continually purchase Mortgage Backed Securities has continued to hold mortgage rates down and assist in burning off this excess inventory.  Part of the potent trifecta that is made up of low rates, low prices and first time home buyer credits.

We will be watching closely to determine the Fed’s level of commitment going forward.  Just as important as the MBS purchase program are comments related to the health and direction of the overall economy.  After all this morning played host to some interesting numbers:

- GDP down 6.1% (better than expectations of -6.3%)
- Consumer spending is up 2.2%

How’s that for a mixed bag?  There were some other relative bright spots in today’s economic data that indicate we are still heading in a positive direction.  Also indicative of a change is the fact that I have been hearing that agents are wishing for more inventory…WOW what a difference a few weeks can make!  The end of the foreclosure moratorium is expected to grant that very wish in the next few weeks by dumping pent up and previously prohibited foreclosure inventory on to our “multiple” offer market. 

Quickly…rates are doing what rates have been doing and that’s a good thing!  Still revolving around 5% (a touch below right now) as the epicenter.  Good work Fed!  Please let me know if you have any questions or if you have any clients that we can assist you with.  We would love to be a part of what you are doing.

Your Trusted Advisor,      Jeremy House, C.M.P.S.

Here’s some interesting information I just received from a preferred lender of mine. He’s one of the best keeping up with all the changes in the industry. If you think you might be helped by this change please give him a call. Make sure you tell him you read it at The Phoenix Real Estate Advisor!

Do not let these LOW interest rates pass you by!

The Conventional streamline (“Refi Plus”) we mentioned earlier this week has gone live!  Please spread the word so we can help your clients that are in loans owned by FNMA (Freddie soon to follow) take advantage of these lower rates.  This is a big development and will help those who do not currently have 20% equity in their property to adjust their interest rate to the current market.

Current appraised value does NOT factor into this program.  Please email or call our team with and all of your questions.
Your Trusted Advisor,

Jeremy House, C.M.P.S.

Good morning,

I want to pass along some great news.  We mentioned this in an email a while back and finally it seems to be taking shape.  I am talking about the Conventional version of the FHA streamline refinance.  I received an email notice late last night from DU (Underwriting software) announcing that their program has been updated to support and underwrite these new refinances (they are calling it a Refinance Plus).  Might be a good piece of news to pass on to your database once the final details emerge.

Who will this help?  This is for folks trying to take advantage of the low interest rate environment we are in that may have value issues that currently have a FNMA loan (Freddie will likely follow).  If you recall, the FHA streamline refinance does not require an appraisal, nor does it require that the client qualify based on income or assets.  It is primarily based on having a solid payment history.  The Refinance Plus (the Conventional Version) is supposed to mirror that program closely.  Word on the street is it should be up and running very shortly (in days).  I’ll be sure to get the news out to you as soon as I get it.

Quick market update –  Positive news continues to pour out relating to the “recovery” of the economy.  One expert quoted just this morning that he feels we will out of the woods in as little as four months.  Interest rates are recovering some of the losses we saw late last week as we expected.  Thank you Fed and thank you Treasury.  They are really trying to peg rates at or just below 5% with their MBS purchase program and so far so good.

Please let me know if you have any questions, or if we can help you with anything. 

Your Trusted Advisor,  Jeremy House, C.M.P.S.