Fannie Mae Expects Rates to Continue Higher
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Fanie Mae Rates

Fannie Mae said today that they have not changed their original forecast- growth will pick up in the second half of 2013.  Consumer fundamentals – steady job creation, recovery highs in consumer confidence – are supporting an improving picture of economic activity.  

Rising long-term interest rates could be a problem but the economists still expect the improving fundamentals, ongoing housing recovery, should help boost growth inflation adjusted GDP  (whatever that means). It should average about 2.5 percent for the rest of the year and 2.0 percent for the entire year.

The 30-year fixed mortgage rate increased more than 110 basis points from the first week of May to the end of June before easing somewhat in early July.  While rates are still historically low the report calls the recent spike over such a short period of time “significant” and thus it could potentially hurt housing activity.

New Home sales were up for the third straight month in May to the highest level since July 2008.
While  mortgage applications have declined by about 9.0 percent since early May, pending home sales jumped during the same period to the highest level in more than six years,.  Since cash sales play such a large role in the market – near one-third of existing home sales over the last year – sales may be less sensitive to rate changes than in the past.

While some homebuyers may be knocked out of the market by rising rates, other may jump in as they see rates and prices rising.   Let’s see what happens


What to do with equity
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I put this on my blog; my facebook and my email list because I think it’s so important.

Since I come from a family of attorneys, I am always worried about, “what if”.  I try to look ahead so that I try to minimize any possibility of legal hassles. One bad deal can erase a bunch of good deals and can cause major damage. I always try to avoid trouble- especially when dealing with someone in foreclosure.

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LA COUNTY HOME SALES UP 20%
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These figures are based on a year to year comparison and the strongest august in 6 yrs.Home Prices are up 6.3%.

It looks like we are on the way up again. Ca. always comes back. If you can qualify and don’t own a home, what the heck are you waiting for?

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Buying beats renting after 3 years
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Interesting study from Zillow. It depends on where you live but here in L.A. the magic number is 4.3 years if you made a 20% downpayment. Because home prices and interest rates are low and rental prices are high, this is a great time  to buy.

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