Housing News

Mortgage Interest Rate Forecast for Raleigh NC April 2013

April 8, 2013 by Leave a Comment

Looking for Lower Interest Rates?Looking for the best mortgage rates in Raleigh, NC?  Well, on Friday, you had some help!  The Mortgage Interest Rate Forecast for Raleigh NC April 2013 is looking very similar to what happened last Spring.

“Friday’s Employment report was disappointing in nearly every area. Against a consensus forecast of 190K, the economy added just 88K jobs in March. Average Hourly Earnings, a proxy for wage growth, was flat from last month. Digging deeper, the small bit of good news was that the data from the prior two months was revised higher by 61K jobs. ”

This was far outweighed, however, by the bad news in the details of the Unemployment Rate. The Unemployment Rate unexpectedly dropped from 7.7% to 7.6%, but the decline was entirely due to people exiting the labor force. It is good for the economy if the Unemployment Rate declines because more people get jobs, but not if the cause is a shrinking labor force. Weak labor market data reduces future inflation expectations, which is good for mortgage rates. [Read more...]

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Best Mortgage Rates February 2013

February 14, 2013 by Leave a Comment

best mortgage rates Raleigh

Are you looking for the Best Mortgage Rates in Raleigh?  Well, it looks like rates are going to stay in a pretty tight range.  We have seen some upward pressure – and you may have noticed that the 10 year Treasury Bill (which is a general indicator of which way rates are going) has been above 2.0% in the last weeks.

In general – if you are about to lock into a rate – you want to do so on a day when there’s BAD Economic News released.  So in February of 2013, you will get the Best Mortgage Rates on a day when the 10 year Treasury is closer to 1.9%.

Data released in the Obama administration’s January Housing Scorecard show signs that the housing market is continuing to strengthen, with the number of underwater borrowers  declining while home prices improve.

Officials warn that, while the recovery is in full effect right now, there is regional variation and the overall U.S. economy still remains fragile.

Broken down, the housing recovery looks promising. The inventory of existing homes for sales continued to decline, dropping from a 4.8 months’ supply on the December scorecard to a 4.4 months’ supply, according to data from the National Association of Realtors. The significance of this is highlighted when looking back at the November scorecard, when there was a 5.3 months’ supply of housing. [Read more...]

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Today’s Best Mortgage Rates for January 2013

January 28, 2013 by Leave a Comment

Mortgage Rates are going up!Rates went up late last week – not much, but still they moved higher.  An improving outlook for global economic growth caused investors to shift assets from bonds to stocks, reducing demand for long-term fixed-rate assets including mortgage-backed securities (MBS). We are still in a range for today’s best mortgage rates that is considered “historic low mortgage rates.”

The global economic data released last week was encouraging. Important manufacturing reports in Europe and China exceeded expectations. In the US, the Jobless Claims surprised investors for the second straight week. There is also a growing sense that the worst of the debt troubles for the European Union have passed. Stock markets around the world are hitting multi-year highs.

The Housing data released last week also reflected solid year over year improvement. December Existing Home Sales were 13% higher than one year ago, to the highest level since 2007. READ – NOW is the time to buy a house.  Home Sales prices are going up in North Carolina, and Raleigh and Cary in particular, as the number of houses available to purchase is declining in multiple price points.  First Time Home Buyers wanting to take advantage of the new NC First Time Homebuyer Programs are having trouble finding that “right” house as multiple offers are being made on the same properties. [Read more...]

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Refinance When You Owe More Than Home Is Worth

January 26, 2013 by Leave a Comment

HARP RefinanceIs the Harp 2 refinance mortgage program shaping up to be great news for Raleigh, Cary and Clayton, North Carolina home owners?  Yes.  Unlike many of the previous “government” refinance mortgage programs, the HARP 2 has a real practical effectiveness.  North Carolina real estate owners are lining up as evidenced by the number of applications and inquiries we receive everyday from folks who are ready to take advantage of the HARP program.

Why the optimism in North Carolina?  Simply because the 2012 revisions bring very significant changes to the HARP refinance program for North Carolina home owners.  One of the most noteworthy changes is the fact that you can, “owe more on my home than it is worth” and not be excluded by a North Carolina HARP Refinance Lender.

Is this for real??

Yes – you can owe multiple times – some owe two, three or even four times what their home is currently worth and that may not impact their ability to get a low HARP mortgage interest rate.  Every hour we are fielding questions like, “Do I qualify for a HARP refinance?” or, “Does my Wilmington home qualify for HARP?” [Read more...]

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Tighter Underwriting Guidelines From CFPB

January 14, 2013 by Leave a Comment

cfpb qualified mortgage loanThe New Protection Agency sent out messages this week stating that it’s no longer going to be good enough be a  Qualified Borrower… meaning the Underwriter feels you have enough on the ball to be able to buy the house and make the payments… now they want you to ONLY get the best rates if you obtain a Qualified Mortgage.   This could easily mean that NO ONE, no matter how strong a borrower you are, could qualify with a “total” debt ratio of more than 43%. **

I’ve re-written this several times, taken out words like CRAP, and paying for PAST mistakes… but the bottom line is that the  Consumer Financial Protection Bureau (CFPB) came out on Thursday with more than 800 pages of rules that will largely determine the availability and cost of mortgages.

Neither consumers nor creditors emerge as winners.  Reminds me of the Health Bill that came out – with complications on top of complications. [Read more...]

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Dodd Frank Rules For HUD 1 Go Into Effect Feb 2013

January 8, 2013 by 2 Comments

Tons of PaperworkStarting in February 2013, a “next generation” of the Dodd Frank Act will go into effect, and though it’s SUBTLE – it’s going to have a profound impact on the way mortgage companies do business.

Closings will happen 3 days after a HUD 1 is sent to a Consumer and Approved.

If you are a Real Estate Agent, or a Closing Attorney – you know that this is a really big deal.  It’s not to say that some banks won’t knock this requirement out of the park… but it’s going to take a CONCENTRATED effort from everyone involved to make certain we meet the requirements with “No lates and No Uglies.”

Currently, Closing Attorneys are often getting closing packages 24 hours prior to closing – so for them to get them 4 days early, means the entire process needs to “find” an additional week for a closing to run smoothly.  [Read more...]

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New Refinance or Loan Modification For Underwater Homeowners

December 27, 2012 by 2 Comments

refinance mortgage ratesNew Refinance or Modification Program for mortgages NOT owned by Fannie or Freddie?  We just read this and thought it was interesting:

“Not enough can be said about the importance of silence!” But there is no silence on rumors that the Treasury Department might try to push through a new initiative, referred to as the “Market Rate Modification Program,” which will allow underwater borrowers with non-agency mortgages to refinance to today’s low interest rates.

That’s right, anyone with an Alt-A, subprime, option ARM, jumbo, etc., should pay attention. As one lender wrote to me, “Katy bar the door!”  This group has definitely been left out of all the fun, although the Treasury Department, and plenty of major servicers, has determined that borrowers with current LTV’s north of 125% who have such loans are more likely to default, despite being current on payments. [Read more...]

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Refinance with No Appraisal in NC

December 26, 2012 by Leave a Comment

Refinance to 15 year mortgageThere are tons of folks who want to refinance their house in NC – but don’t think it will appraise for what they owe.  Did you know that there are SEVERAL programs available that do NOT require an Appraisal?  If Fannie Mae or Freddie Mac have your mortgage – you can get a loan for more than 125% of what your home is currently worth!

Does this mean you can get Cash Out of your home up to that amount?  No.

But, if you have a mortgage loan that has a balance that is higher than what you owe on your property, you might be able to refinance that “higher” balance and save money every month on a lower mortgage payment!  Sweet! [Read more...]

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Mortgage Debt Relief Act Could Expire

December 25, 2012 by Leave a Comment

The House of Representatives in Congress, especially the Republican ones, have been holding up legislation this year… It now appears that they will “hold up” a bi-partisan bill that would extend the Mortgage Debt Relief Act to the end of 2013.  The Debt Relief Act is important to the Housing Industry – and if it Expires on December 31st of 2012 – we believe it will be BAD News for the Housing Recovery making it’s way through NC.

In the “Fiscal Cliff” discussions, you might hear about Taxes going up, and Government Programs that will be closed – but few are talking about the Tax Deduction put into effect to help with Foreclosures. 

The Mortgage Forgiveness Debt Relief Act and Debt Reduction Cancellation, passed in 2007. In the past, cancelled or forgiven debt was reported as taxable income, which included short sales or mortgage principal deduction.  So, if someone did a Short Sale – and the Bank “forgave” $30,000 (the bank took the loss with the sale) the Homeowner would then owe taxes on $30,000 of “income.”  It’s such a double TRAGEDY – and it’s money people don’t have.  [Read more...]

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Underwriting Guidelines Too Tight?

December 22, 2012 by Leave a Comment

On Shaky Ground??Ben Bernanke, is they guy a lot of people on Wall Street like to hate these days.  They blame much of the problems with “future” debt amassing on his shoulders.  Weather you like him, or you hate him – there’s no denying he is setting Financial Policy for the future – and he’s impacting mortgage Interest rates.

In his speech at Operation HOPE Financial Dignity Summit in November, he discussed the challenges facing the housing market and mortgage lending.  One of the challenges that Chairman Bernanke commented on, was a Mortgage Underwriting Standard that he believes might be headed in a direction that is going to put further pressure on a weak system because it’s become “overly tight”.

“…Some tightening of credit standards was an appropriate response to the lax lending conditions that prevailed in the years leading up to the peak in house prices. Mortgage loans that were poorly underwritten or inappropriate for the borrower’s circumstances ultimately had devastating consequences for many families and communities, as well as for the financial institutions themselves and the broader economy.

However, it seems likely at this point that the pendulum has swung too far the other way, and that overly tight lending standards may now be preventing creditworthy borrowers from buying homes, thereby slowing the revival in housing and impeding the economic recovery.’ [Read more...]

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