AD Smith Team
(All Time Low Mortgage Rates, Market Update, and FREE Summer Treats)
AD Smith Team Newsletter Part 4 of 6 2010
Greetings Friends! I hope this note finds you all well and enjoying a wonderful summer!
You'll find a shorter than normal newsletter this time around with no new camp news to report. (Next camp is Smith FREE Basketball Camp in December).
I hope you enjoy the July/August edition. You’ll find the latest Lane County Real Estate report, just released information on record low interest rates, and some FREE summer treats too.
All the best to you and yours!!
AD
PS. As always anytime you have Real Estate questions or concerns I’m happy to be a resource in any way. Popular questions of late include inquires on
* Short sales
* First Time Home Buying
* Buying distressed properties
* Avoiding foreclosure
* Mortgage Modifications
* Refinancing
While Real Estate Broker don't deal specifically with all of these topics, I’m more than happy to either help with your specific request or point you in the right direction.
Mortgage Rates Hit All Time Lows—Again
I was just forwarded this article (below) from two great lenders that I work with at Opes Advisors (Brad Thornton and Will Bracy). Their Friday rates for solid qualifiers were in the 4.25% range!
I just read in another article that the all time lows interest rate record has been broken 5 of the last 6 weeks! Those rates, combined with lower housing prices, make it much more affordable for first timers, investors, and/or those wishing to refinance their current mortgages.
(Portland) Mortgage rates are the most affordable in decades for those who can qualify for a loan.
For many, the opportunity to buy a home or refinance at this time is lost because of the tough economy and tight credit standards. But those who have secure jobs, superior credit and strong finances could do even better than the 4.54 average rate that Freddie Mac reported Thursday, according to experts.
The latest rate is the lowest for a 30-year fixed loan since Freddie began tracking rates in 1971. It also marks the fifth time in six weeks that the mortgage company has reported hitting a new average low.
Still, it's possible to get an even lower rate if a borrower contributes more than 20 percent to the downpayment or has impeccable credit.
"Scores matter," said Ritch Workman, co-owner of Workman Mortgage in Melbourne, Fla. He can offer a rate of 3.375 percent on a $200,000 Freddie Mac loan. The caveat: The borrower must put down 20 percent, have a credit score of 800 and pay $1,400 in add-on fees.
Susquehanna Bank, which has branches in Pennsylvania, New Jersey, Maryland and West Virginia, is advertising a similar loan. But the credit score requirement is 720 and the add-on fees total $750.
Sometimes the best rates are offered by community banks or credit unions. They keep mortgages on their books instead of selling them to investors, said Greg McBride, a senior financial analyst at Bankrate.com. Other times, bigger banks or smaller mortgage bankers have the best deals.
Keep in mind that rates fluctuate significantly, even within a day, like airfares on a travel site. And the key to finding the best rate is to shop around online and in person.
Either way, borrowers are getting good deals. The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.
The rate on 15-year fixed loans, a popular choice for refinancing, also are the lowest on records dating back to 1991. That rate fell to 4 percent from 4.03 percent last week.
Mortgage rates have been falling since spring. Yields on U.S. Treasury bonds have dropped as jittery investors seek safer investments. Rates tend to track the yields on Treasurys.
Low rates helped spark a little activity in the weak housing market. Applications to purchase homes rose 2 percent last week from the previous week, the Mortgage Bankers Association said Wednesday. Still, the housing market has been struggling and overall applications for loans were down last week as fewer people applied to refinance.
High unemployment, slow job growth and tight credit have made it difficult for many to purchase homes. Home sales got a boost this spring when the government offered homebuying tax credits, but activity has fizzled since those expired in April.
Sales of previously occupied homes fell 5.1 percent in June. New home sales jumped last month, but it was the second-weakest month on record and it came after sales tumbled in May.
Refinance activity has increased over the last month as homeowners seek more affordable monthly payments. But many don't qualify for a loan or don't have the cash to pay for closing costs. And rates have been low for so long that many have already refinanced.
To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country.
Rates on five-year adjustable-rate mortgages averaged 3.76 percent, down from 3.79 percent a week earlier. Rates on one-year adjustable-rate mortgages fell to an average of 3.64 percent from 3.70 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac's survey averaged 0.7 a point for all loans.
J.W. Elphinstone, AP Real Estate Writer
Most Recent Released Lane County Real Estate Highlights by the Numbers (Stats trail about 6 weeks from live time)
June Residential Highlights
Comparing June 2010 to the same month in 2009, closed sales were up 14.3% and pending sales declined 22.2%. New listings rose 7.7%. See residential highlights table below. Further, when comparing June 2010 with May 2010, closed sales increased 4.7% (335 v. 320), pending sales were up 7% (274 v. 256), and new listings rose 15.1% (603 v. 524).
At the month’s rate of sales, the 2,425 active residential properties would last 7.2 months, the same as last month.
Sale Prices
The June 2010 average and median sale prices fell 0.6% and 3.1%, respectively, when compared to June 2009.
Compared with May 2010, average sale price went down 0.7% ($227,200 v. $228,800) and median sale price fell 0.3% ($203,000 v. $203,500).
Second Quarter Report
Comparing the second quarter of 2010 with that of 2009, closed sales increased 34.5% (990 v. 736). Pending sales grew 1% (947 v. 938) and new listings went up 12.9% (1,852 v. 1,640).
AD’s Take on Latest Numbers
Some mixed news in the local market at last count. Activity was considerably up compared to 2009, although prices were still off of 2009 and before levels. With current distressed property inventory rising, prices still down, and interest rates at all time bests, buyers should still see this as an attractive market. The drop in recent pending sales is not altogether suprising as the buyer pool was significantly drained by those purchasing in the Spring to take advantage of government tax credits. The true test of the success of those credits may be determined in coming months and whether buyers take advantage of low rates and prices or continue to show caution.
See highlights below or click here for the most recent market snap shot.
Summer Treats
I have about 20 extra of these CAP (Client Appreciation) Cards for FREE ice cream in August. If you’d like to have one just drop me an email and I’ll get to you right away.
I have about 25 Extra of the Duck/Beaver or Beaver/Duck Schedule Magnets:) If you’d like one for the upcoming season please drop me an email and I’ll get one right out.
*AD Smith Visual Tours
* AD Smith Basketball---Latest Updates
* Complete Lane County Market Action--with Graphs
* Options when Facing Foreclosure!
* Find Distressed Properties the Day they Hit the Market!
Archived Newsletters
Jan/Feb Newsletter 2009 (Short Sales and Obama Changes)
March/April Newsletter 2009 ($8000 Tax Credit)
June/July 2009 Newsletter
Final 2009 Newsletter
Jan/Feb 2010 Newsletter 1 of 6
March/April 2010 Newsletter 2 of 6
May/June Newsletter 3 of 6