Fannie Mae Expects Rates to Continue Higher

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

Problem loans going away

Mortgage Delinquencies Rates 2013

Mortgage delinquencies in May posted thelargest year-to-date drop seen since 2002, Lender Processing Services (LPS) said today. Delinquencies were down 15 percent from the end of December 2012 to a May rate of 6.08 percent. This was a drop of 2.11 percent from April. LPS Applied Analytics Senior Vice President Herb Blecher said that much of this improvement is supported by the fact that new problem loan rates are approaching the pre-crisis average.

Blecher said, “Though they are still approximately 1.4 times what they were, on average, during the 1995 to 2005 period, delinquencies have come down significantly from their January 2010 peak. Fewer problem loans are coming into the system, the existing ones are working their way through the pipeline. New problem loan rates are now  extremely close to average.

condo foreclosure

Condo Foreclosures
If you have not paid condo dues, the association can foreclose. However, they have certain rules to follow as outlined in Civil Code Section 1365.1.

They have to give you 30 days notice and an itemized list of charges. They also must engage in some sort of mediation before proceeding.

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Can i have the deed, please?

Can I have the deed please?
When talking to sellers, your main objective is to get the deed with as little money out of your pocket as possible. The deed is the most important and powerful method of controlling a property. Sure you can control with out owning but that is not my first choice. The ideal result is to have them deed you the property, subject to the mortgage. You are not assuming it. You agree to make the payments, but your name is not going on the loan. The concept is like when two people who are married buy a house and qualify for a loan together. Then they get divorced and the wife usually stays in the house with the kids. The deed is transferred to her alone but his name stays on the loan until it is either refinanced or sold. The husband’s credit is still at risk and he hopes she will pay.

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