Monday, February 9, 2009
Saturday, February 7, 2009
Investing in Housing (Without Buying a House)
Is it possible to be a real estate investor even though you don't own any real estate? Sure thing, says Sam Masucci, president and CEO of MacroMarkets, an exchange-traded fund manager cofounded by housing expert Robert Shiller. By purchasing MacroShares Major Metro Housing securities, investors can benefit from rising home prices without having to call a Realtor. The fund, which is expected to launch before the end of the year, is linked to the closely followed S&P/Case-Shiller Home Price Indexand allows investors to place bets on the direction of home prices. In a recent interview with U.S. News, Masucci detailed how the product works and explained the different ways it can benefit investors and homeowners alike. Read more here...
Senate readies $780 bln stimulus plan for vote
Senate readies $780 bln stimulus plan for vote
http://www.marketwatch.com/news/story/senate-debates-details-780-billion/story.aspx
Mortgage Rates Rise Slightly
Mortgage Rates Rise Slightly
The House passed one fiscal stimulus plan, and the Senate is expected to vote on its version any day now.
The combined government spending for this new package, along with the TARP program and a proposed bank cleanup plan, will total trillions of dollars.
An enormous amount of new debt will be issued to pay for all the government programs, which may push interest rates higher for all types of bonds.
It’s a widely held view that the economy is very weak right now, and Friday’s downbeat Employment report came with little surprise.
The US economy lost about 600K jobs in January, following a decline of 3 million jobs in 2008.
Read more of the original article here...
Fed Attacks Mortgage Rates: 4 Things to Know
Fed Attacks Mortgage Rates: 4 Things to Know
The Federal Reserve on Tuesday announced a new approach to stabilizing the housing market: driving down mortgage rates.
The effort is based on a two-pronged program that involves buying up to $100 billion in debt of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, while at the same time purchasing up to $500 billion of mortgage-backed securities backed by Fannie, Freddie and Ginnie Mae.
The initiative is intended to lower Fannie and Freddie’s financing costs, which will enable the government-controlled, mortgage-finance giants to pass along those savings to consumers in the form of lower interest rates.
Here’s what you need to know:
1. Wide Spreads With home prices continuing to decline and investors unsure as to the extent of the government’s support of Fannie and Freddie’s obligations, the mortgage finance giants have had to pay higher premiums on their debt. This increases their cost of funding and translates into more expensive interest rates for consumers. “Spreads of rates on GSE debt and on GSE-guaranteed mortgages have widened appreciably of late,” the Fed said in a statement announcing the initiative. “This action is being taken to reduce the cost and increase the availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally.”
2. Half Point Cut So what will the actions mean for mortgage rates? Keith Gumbinger, of HSH Associates, says that the moves could bring fixed mortgage rates down by as much as a half point.
More mortgage meltdown misery
More mortgage meltdown misery
The US economy is poised to be smacked by another wave of mortgage defaults that could cause as much damage as the subprime meltdown.
According to Credit Suisse, $1,000bn (£694bn, €772bn) of Alt-A and Option ARM mortgages – the dubious loans used to propel home sales through the final years of the housing bubble – are scheduled to have their interest rates reset from now through to summer of 2011.
Wednesday, January 28, 2009
A "tough love" approach to personal finances
Larry Winget doesn't mince words. Take, for instance, people who don't pay their bills on time. "They lack integrity. Period."
With a brash, direct style, the author and motivational speaker says our own behavior is the source of our financial, career and personal problems.
Getting your finances in order is also straightforward, according to Winget, who believes that a hefty dose of personal responsibility goes a long way toward solving problems.
Monday, January 26, 2009
Mortgages: What you need to know in 2009
With all the doom and gloom over housing, you might be surprised to know that this is a fantastic time to get a mortgage. Not if you have poor credit, to be sure. But you can get a great deal on a 30-year, fixed-rate, conforming loan these days if you have a solid FICO score, a manageable debt burden, and proof positive of a reliable income.
You have to go back to around 1961 to find a time when 30-year mortgages had rates this low, according to Keith Gumbinger, a vice-president at financial publisher HSH Associates in Pompton Plains, N.J. For that, thank the U.S. government, which is trying to jump-start the stalled housing market by buying up mortgage-backed securities. On Dec. 31, Freddie Mac reported that average rates on 30-year fixed mortgages dropped to 5.1 percent for the week, down about 1.3 percentage points since late October and the lowest since its survey began in 1971.
Rates are probably headed even lower in 2009, raising the question of whether you should borrow now or wait for a better deal. The (read more here)
Mortgage rates rise after record five-week run
Rates on a 30-year mortgage rate rose to 5.12 percent
Rates on 30-year mortgages rose above 5 percent this week, ending a five-week run at record low levels, Freddie Mac reported Thursday.
Mortgage rates have been in decline since the Federal Reserve said in late November it would buy up to $500 billion in mortgage-backed securities to get banks to lend more money in hopes of bolstering the troubled U.S. housing market.
Freddie Mac reported Thursday that average rates on 30-year fixed mortgages rose to 5.12 percent this week from a record low of 4.96 percent established last week. At this time last year, the 30-year fixed rate mortgage averaged 5.48 percent. (read more here)
Thursday, January 8, 2009
Personal Financial Workbooks - CNBC's On The Money
Education, education, education...no better way to be a champion over money and budgeting. This tougher economy is no different; in fact, we all need to fall back to the "core" foundational rules of engagement. Need a refresher...?
As the economic landscape has changed, so have the rules of personal finance. It has never been more important to take control of your financial life, make the most of your money and secure your future. In these four workbooks, Carmen Wong Ulrich teaches you how to build wealth, plan your family finances, make good use of credit and prepare for retirement.
Source: CNBC"s On The Money
Wednesday, January 7, 2009
Housing Market Oulook - Indiana Univ Profs (PDF article)
Jeffrey D. Fisher: Director, Benecki Center for Real Estate Studies; Charles H. and Barbara F. Dunn Professor of Finance and Real Estate, Kelley School of Business, Indiana University Bloomington
...the housing industry has taken the blunt of the blame for the financial crisis and the current economic recession. Certainly, the unprecedented growth of subprime mortgages made to people who really couldn’t aff ord a home was a major cause of the problems. It is questionable, at best, whether or not these mortgages were sound loans even when home prices were rising...
Read more and get the PDF here (housing market outlook 2009).
Educated Buyers are our best asset at THP.
Mortgage Applications Decrease In Latest MBA Weekly Survey
WASHINGTON, D.C. (January 7, 2009) — The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending January 2, 2009. The Market Composite Index, a measure of mortgage loan application volume, was 1143.8, a decrease of 8.2 percent on a seasonally adjusted basis from 1245.7 one week earlier. This week’s results included an adjustment to account for the shortened week due to the New Year’s Day holiday. On an unadjusted basis, the Index decreased 8.9 percent compared with the previous week and was up 28.3 percent compared with the same week one year earlier.
The Refinance Index decreased 12.3 percent to 5904.5 from 6733.8 the previous week and the seasonally adjusted Purchase Index increased 7.3 percent to 344.2 from 320.9 one week earlier. The seasonally adjusted Conventional Purchase Index increased 2.3 percent while the Government Purchase Index (largely FHA) increased 19.2 percent.
The four week moving average for the seasonally adjusted Market Index is up 7.9 percent. The four week moving average is up 3.6 percent for the Purchase Index, while this average is up 9.3 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 79.8 percent of total applications from 82.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 0.9 percent from 0.8 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.07 percent from 5.03 percent, with points decreasing to 1.16 from 1.24 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.67 percent from 4.79 percent, with points decreasing to 1.16 from 1.26 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 5.90 percent from 6.15 percent, with points decreasing to 0.31 from 0.44 (including the origination fee) for 80 percent LTV loans.
Senior Housing Industry Outlook & Trends For 2009
Want to know what we think are going to be senior housing trends in 2009? We looked into the magic, crystal ball and here is a preview of 10 topics and issues that may be hot in 2009….we will be addressing these further over the next month or so:
1. When will housing prices find a bottom and how long can seniors wait to sell their homes before migrating to other senior housing options: Without some kind of drastic government intervention, look for this issue to drag at least for the first six to nine months of 2009.
2. Reverse mortgages for home purchases. Effective January 2009 a reverse mortgage product that allows seniors to simultaneously purchase a home and obtain a reverse mortgage will be announced. Look for lenders to implement later in the spring and for real estate agents to use this as a means to get seniors to downsize their living spaces.
Fannie Mae, Freddie Mac - A Look Ahead
Here is some recent news about the outlook for F. Mae and F. Mac (link).
Fannie Mae and Freddie Mac: A Look Ahead
As everyone reading this magazine knows, the apartment industry has been affected by credit and liquidity problems. But multifamily mortgage finance has been shielded from the worst of the banking and mortgage meltdown. What's behind this phenomenon? Simply put, Fannie Mae and Freddie Mac.
The two firms have been critical in continuing to provide mortgage debt to apartment firms during the current economic crisis—just as they did during previous economic storms, including the 1998 Russian financial crisis and the 2001-2002 downturn.
As lawmakers and regulators begin to recast the Government Sponsored Enterprises (GSEs), National Multi Housing Council (NMHC) is making sure they understand the differences between the single-family and the multifamily market—and why those differences require different regulatory approaches.
Multifamily firms have several sources of mortgage capital other than the GSEs, including insurance companies, banks and even HUD. Still, for various reasons, Fannie and Freddie have been the most reliable source of debt to the full spectrum of apartment owners.
Banks and insurance companies are major providers of mortgage capital, but they have more restrictive loan terms, are more selective in their investments and tend to lend for shorter terms. Banks are further limited by regulatory restrictions, and insurance companies continually reset their commercial real estate investment strategies.
The two firms have been critical in continuing to provide mortgage debt to apartment firms during the current economic crisis—just as they did during previous economic storms, including the 1998 Russian financial crisis and the 2001-2002 downturn.
As lawmakers and regulators begin to recast the Government Sponsored Enterprises (GSEs), National Multi Housing Council (NMHC) is making sure they understand the differences between the single-family and the multifamily market—and why those differences require different regulatory approaches.
Multifamily firms have several sources of mortgage capital other than the GSEs, including insurance companies, banks and even HUD. Still, for various reasons, Fannie and Freddie have been the most reliable source of debt to the full spectrum of apartment owners.
Banks and insurance companies are major providers of mortgage capital, but they have more restrictive loan terms, are more selective in their investments and tend to lend for shorter terms. Banks are further limited by regulatory restrictions, and insurance companies continually reset their commercial real estate investment strategies.
Friday, January 2, 2009
7 things to know about mortgage rates in 2009
It wasn't too long ago that mortgage rates were expected to move sharply higher in the coming months thanks to rattled investors and mounting inflation. But while falling home prices and jittery financial markets have done little to assuage investor fears, a number of recent developments have combined to create a decidedly optimistic mortgage-rate outlook for 2009. "The preponderance of forces that would typically operate on mortgage rates — the economic backdrop, the inflation backdrop and, in this case, government policy — are all pointing towards lower interest rates," says Mike Larson, a real-estate analyst at Weiss Research.
Rates have already become increasingly attractive. The average national rate for 30-year fixed mortgages fell to 5.57% in the week of Dec. 5, from 6.61% just seven weeks earlier, according to HSH Associates. Here's a look at where mortgage rates are headed in the new year, the forces that will be influencing them, and how consumers can take advantage of the trends.
Hendricks Mortgage can help you find the best mortgage rates, based on your credit history, the current market, and what your housing needs will be when you are ready to buy.
9 housing-market head winds for 2009
With home prices having dropped a painful 21% from their 2006 peaks, property owners everywhere could use a splash of good news in their New Year's Eve cocktails. But as a nasty recession is now part of the picture, the chances of an aggressive housing-market rebound in 2009 are dim. "A lasting recovery in the housing market?" says Mike Larson, a real-estate analyst at Weiss Research. "I don't see it in the cards until the back end of the year -- if that."
Let THP and Hendricks Mortgage help find your perfect home in this challenging economy. Here's a look at the factors that will be weighing down the housing market in 2009:
1. Recession
After months of speculation, the National Bureau of Economic Research made it official in early December 2008, announcing that the U.S. economy entered into a recession in December...
New Home Discussion Group on Google Groups
Check out the new home discussion group on Google Groups.
We will discuss anything from builders to resale, mortgage rate to refinancing, the housing market to the rebounding economy.
Thursday, January 1, 2009
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