Mortgage rates are zooming

Housing Interest Rates Up

rise in ratesCurrent Mortgage rates are up a full percentage point above their recent record lows, raising costs for borrowers and questions about the housing recovery.
A standard 30-year fixed-rate home mortgage rate hit an average of 4.63% on Monday before backing off just slightly Tuesday, according to HSH Associates. That’s up from 3.49% on May 3 and an all-time average low of 3.44% during a week in December

Higher rates mean folks can qualify for less of a mortgage- if at all. At 3.5%, a borrower who bought a Southern California home for May’s median price of $368,000 would have a principal-and-interest payment of $1,322, assuming a 20% down payment.

At 4.5%, that payment rises to $1,492.
At At 6%, still a decent rate by historical standards, the payment goes up to $1,765.

Most experts suggest that rates will hit 5% by this time next year. If you have not purchased a house and you can qualify-DO IT NOW-. In fact buy 4 houses. You will thank me. Don’t even look for a great deal. The low interest rate makes it a great deal.

If you can qualify and want to do a deal with me, let me know.

More evidence that the trend in housing prices is changing

Housing Rising Cart

Zillow’s chief economist Stan Humphries wrote this morning:

“Today’s Case-Shiller numbers may reflect where the housing market has been in some of the frothier metros, but they are not indicative of where it’s headed.

The housing market worm has turned over the past few weeks – inventory levels are beginning to show signs of easing, and mortgage interest rates are creeping up. Going forward, both of these factors will help mitigate extreme price spikes caused by very strong housing demand and very low housing supply,” said Zillow Chief Economist Dr. Stan Humphries. “Runaway appreciation in many of the large, coastal metros that form the backbone of the Case-Shiller indices will begin to moderate. Home value appreciation in some of these areas will have to slow down, or potentially fall, as higher bottom-line prices are no longer masked by rock-bottom mortgage rates. In general, the national housing recovery is strong and sustainable, but pockets of volatility will emerge as local fundamentals shift. Buyers expecting home values to continue rising at this pace indefinitely may be in for a shock.”

Banks are ignoring new regs

Tim Geihtner and Ben Bernanke

Why am i not surprised? We regulate and banks ignore. Same old story. New laws in Ca. say that dual tracking is illegal. That is when banks continue the foreclosure process while you are negotiating a loan modification.  They are not supposed to do it. Still doing it.

You are also supposed to have a single point of contact through the whole process instead of being jerked around from person to person. Guess what- not abiding by that law also.

What do we have to do to get the banks to obey the law. Anyone got any ideas?

This is what investors should be doing

Real estate agent Ryan Mathys points out a view.

Realtors are going in the field and farming like they used to. They are contacting home owners even before they even think about selling. They are calling, driving and sending mail. They have lots of “pocket listings” this way- people who are considering selling. They don’t wait until the home owner is ready to sell. It’s too late then.

This is what real estate investors should be doing in a hot sellers market. If you wait until it is listed, lots of luck. You will be outbid by a cash buyer who does not care about comps.

Read the story.


Housing Inventory on the rise

Housing Market on the Rise

After years of falling inventory and really tight markets, things are beginning to change. Redfin reports that listing grew 6.4 % between march and april and 4.2% between april and may. Last year it fell all year. They say that if things keep up like this we should be normal by the end of the year.

Read more on Housing Inventory on the rise…