Creative mortgage brokers find a creative way to rent out their house that they couldn’t sell. I just wouldn’t even guess someone would decide to take that route. I guess they probably will only get a small sentence so they must have weighed the risk.
Rates have dropped but so have the amount of people who can get loans. So far 152 banks have gone under or been bought. With the tightening standards that have been slowly set into place the last 4 months the banks have to find someone to give loans too. In comes lower rates. People with the kind of qualifications need prior to the 2000’s are needed to sustain things. So interests rates of dropped for the fixed product while the 1 year ARM has jumped. Continue reading →
Builders will beef up incentives before they will drop prices in my humble opinion. In an interesting unwritten rule, builders won’t reduce their price. I have found their resolvevery interesting and it seems to work. I have only heard of once where a builder accepted a lower price and it seems there was some odd reason why. Obviously smaller builders would be more likely to drop than a bigger builder. On a side note, when the Las Vegas market dropped, a buyer bought at the Continue reading →
I was at a seminar where they spoke about how Builders plan their developments and how many months of inventory they are comfortable with. One builder was fine with 9 months of inventory which I find shocking but makes complete sense in a free market system. By having a surplus, they can actually hurt the small builders who don’t have the financing to wait a year for a home to sell. People will pay a little more for new and with less small builders in Continue reading →
http://biz.yahoo.com/ap/070824/economy.html?.v=18 Sales of new homes perked up, while factory orders took off inJuly, raising hopes that the economy can safely weather financialturmoil that has shaken Wall Street. The median price of a new home, meanwhile, was $239,500 in July, upfrom $238,100 in July a year ago. The median price means half sellfor more and half sell for less. The average home price, however,dropped to $300,800 in July, down from $311,300 for the same monthlast year. Click on the link above for the full article. I Continue reading →
“While 43 states experienced year-over-year increases in foreclosure activity, just five states — California, Florida, Michigan, Ohio and Georgia — accounted for more than half of the nation’s total foreclosure filings,” RealtyTrac Chief Executive James J. Saccacio said. Wow. I understand California and Florida easily enough but Georgia? This is the fall out of Adjustable Rate Mortgages. I would love to see the numbers of fixed vs ARM loans. This is the cleaning out process that real estate must go through but it will be Continue reading →
Very interesting article. This will be one of the best barometers of our economy. I heard a statistic that about 75% of wealth created between 2000 and 2005 was from real estate. They were saying all along that real estate is what kept our economy going through the internet bust and 9/11. I don’t know if any other sector can replace what real estate has done. No matter what Buyers say. The will buy things for their new home. Furniture, washers, painting, carpet, etc. A Continue reading →
This is very important in many respects. This will help businesses out. Whatever happens we have to stay out of a recession. Once we get there it will be hard to get out. Oregon historically is one of the first states to fall into a recession and one of the last to get out. We aren’t as tied to timber as we were before but I think we might still have the problem. But this won’t keep us out of the woods. There is still Continue reading →
Standards continue to change. Many are telling me that if people with out good credit, good income and low debt want to get a loan need to move soon. I have heard many instances of loan programs ending in the last five weeks. One person closed the day before it ended. Another waited one day to long to submit their loan and lost the option. Make your move.
Since the end of 2006 about 121 banks have closed or been bought. Recently American Home Mortgage (AMH) had about $4 billion in cash and had to pay $3.5 billion when their credit lines wanted their money back. It would be like Visa telling you to pay off your balance today. But that is the right of the issuers of the credit lines. Countrywide is looking vulnerable for a bankruptcy. The standards of underwriting the loans has gotten tougher. Since late winter it has been Continue reading →