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Mortgage Rates Edge Up
In Freddie Mac's Primary Mortgage Market Survey the 30-year fixed-rate mortgage (FRM) averaged 6.40%, with an average 0.4 point, for the week ending October 26, 2006. Last year at this time, the 30-year FRM averaged 6.15%.
"At its most recent meeting, the Federal Reserve again declined to raise rates for the third time, citing a slowdown in the housing market," said Frank Nothaft, Freddie Mac chief economist.
"For instance, the median price of both new and existing homes in
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September posted significant decreases. And some areas of the country may experience a few bumps up and down as the housing industry corrects itself in the coming months."
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Do You Marry The
Credit Score?
 Some think that lenders average everyone's credit scores together. If Jane has an 800 credit score and John has a 400 credit, score, their combined score would be 800 + 400 = 1200 divided by two, giving a not-so-terrible-after-all score of 600. Of course, that's not so. Good credit doesn't erase bad credit. In fact, bad credit will kill the deal altogether. And scores aren't averaged, they're examined independently and the 400 score would render the 800 score impotent. If a spouse or joint borrower has bad credit, and the person with good credit can qualify on her own, then leave the person with bad credit off the mortgage and simply include him on the title. |
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America Is On the Move
 Nearly 40 million people -- 14 percent of the population -- changed addresses in 2005, according to the Census Bureau.
Only 3.7 million moved to another place because they changed their status from renter to owner. Some 3.1 million moved to establish their own household, and 4.2 million switched places because they took a new job or were transferred. About 1.4 million moved to be closer to work, and 2.8 million moved because of a change in their marital status.
According to the government, 7.1 million people moved because they wanted a new or better home or apartment, and 1.6 million moved to change neighborhoods. In other words, they moved up. |
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Home Prices Correcting, Buyers Returning to the Market
 Home sales appear to be bottoming out with lower home prices attracting buyers in many areas of the country, according to the National Association of Realtors.
David Lereah, NAR’s chief economist, said the housing market is showing signs of life and that sales may be leveling out. "Many potential home buyers who have been taking a wait-and-see attitude or taking their time and being methodical in the search process are being enticed by lower home prices," he said. "Given a positive economic backdrop of lower mortgage interest rates and job creation, we expect sales activity to pick up early next year."
Existing-home sales are forecast to be fairly stable in the fourth quarter and sales for all of 2006 are expected to drop 8.9 percent to 6.45 million -- still the third strongest year after consecutive records in 2004 and 2005.
NAR President Thomas M. Stevens, said this presents a unique opportunity for buyers. "The supply of homes on the market is the highest we’ve seen in over 13 years, and interest rates are experiencing an unexpected decline," said Stevens.
While this changing market is a great time to buy, it’s become increasing important for parties on both sides of the real estate transaction process to have professional representation. |
