Economic News Week: August 23, 2010
By Tony Stevenson/SWBC Mortgage
This is the tale end of earning reports as our economy keeps sputtering along. General Motors is set to release its IPO after announcing its profits report. Congress is drawing battle lines relating to a number of measures, including the Bush tax cut expirations. Industrial production jumped 1% in July, double the 0.5 percent growth forecast by economists. Another sign that we are not headed towards a double dip recession. “We’re anemic; we’re slow; we’re crawling, but we’re not going backward (the economy) , said Peter Bible, a partner at EisenrAmper.
Lets talk foreclosure. Realty Trac’s most recent national foreclosure report said that in July, 1 in every 397 U.S. homes received foreclosure notices. While in Texas the foreclosure rate was 1 out of 819 homes. Less than half of the national average. Foreclosures are never a good thing however, buyers of foreclosed homes do have the advantage over sellers-inventory! Especially now, as some sellers are likely to lower prices due to the foreclosure rate and what it can do to the housing market when it comes to appraisals. Either sellers need to price it ‘right’ now or take it off the market and wait for the market to improve. One positive note is that folks who bought houses in recent years appear to be faring better and not likely to enter the foreclosure arena. All this in a article in the S.A. Express News this past Saturday.
Freddie Mac says the average rate for 30 year fixed loans was 4.42%, down from 4.44% last week. As mortgage rates hit bottom, homeowners got busy and applied for refinances. Refi activity last week was at its highest level since My 2009, according to the Mortgage Bankers Association. About 81% of mortgage applications were for refinances, the MBA said. In a statement made to Bankrate.com, Jeff Lazerson, president of Mortgage Grader, a brokerage based in California, says, his advice to would-be refinancers is: “Do not wait. Do not get complacent, thinking that low rates are going to be around forever, because they can change at any point.” I would also add, that would-be homebuyers seeking a mortgage should not wait either. Now is the time to buy and get the best mortgage rates available not seen since the 1950’s.
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