Mortgages And Lending
This afternoon, the Federal Reserve is expected to announce further measures aimed at stimulating the US economy. Following the announcement of updated economic projections at 2:00 (Eastern time), Fed Chairman Ben Bernanke will hold a press conference at 2:15.
According to media reports, the Fed is expected to announce additional bond purchases with a focus on the mortgage market. If this happens, interest rates, already at historic lows, could come down even further. This program of "quantitative easing" could keep rates down through mid 2015, further strengthening the current real estate markets.
If you're thinking about buying a home in Denver or the surrounding area, and don't have a degree in economics, your best bet is to talk to a qualified mortgage loan officer to better understand the current Denver Real Estate market. You may be surprised to learn how much impact today's ultra-low rates have on your ability to buy a home.
If you'd like to talk to one of our preferred lenders, please contact us today and we will get you in touch with someone!...
Mortgage Market Update for November 28, 2011 - provided by Julie Whalen of Guild Mortgage
Last week, October Existing Home Sales inched up to an annual rate just under 5 million units. And although things appear to be improving only slowly, existing home sales are actually UP 13.5% from a year ago.
Even better, the months' supply of existing homes fell to 8.0 and inventory is now down 13.8% versus a year ago. The naysayers jumped on the fact that the median price was also down. But a large portion of October sales came from distressed properties whose prices are heavily discounted. Although some see this as a negative, it's what's needed for inventories to be worked down and for the housing market to recover.
This Week’s Mortgage Forecast
NEW HOME SALES, PENDING HOME SALES, JOBS... Of great interest this week will be more housing market reports and the jobs numbers that are key to the real estate recovery. October New Home Sales are expected to hold steady, above the 300,000 level. September Pending Home Sales, indicating Existing Home Sales a few months out, look to be up a tad.
Friday, we get the November Employment Report. Although payrolls should rise, the number of new jobs is still not enough to bring down the unemployment rate.
30-Year Fixed-Rate Mortgage Averages 3.99 Percent
Freddie Mac’s Primary Mortgage Market Survey showed average mortgage rates changing little from the previous week amid a mix of economic data reports as the 30-year fixed-rate mortgage averaged 3.995, dropping below 4.00% for the second time this year. The 30-year fixed averaged 3.94% in the October 6, 2011 survey.
30-year fixed-rate mortgage (FRM) averaged 3.99% with an average 0.7 point for the week ending November 10, 2011, down from last week when it averaged 4.00%. Last year at this time, the 30-year FRM averaged 4.17%....
On September 30, 2011 the US Congress allowed FHA and conforming loan limits to drop from 125% of an area's median home price to 115%. While critics of the higher loan limits claimed that the government shouldn't be supporting mortgages 'for the rich,' recent data shows that the reductions have had a larger impact to the overall real estate market.
According to a survey conducted by the National Association of REALTORs NAR Research arm, 16% of home buyers were forced to leave the market because of the reductions. Especially hard hit were areas with high median home prices and areas where there are a wide range of home prices.
Further survey results showed that 52% of buyers had to come up with additional down payment money and 32% were forced to look for a lower priced home.
In Denver, FHA loan limts dropped on October 1 from $406,250 to $368,000....