Real Estate and Mortgage Industry News
from: Tony Stevenson, SWBC
The Real Estate market is improving. The question is, “how do we keep it improving and at a faster pace?” If we had a crystal ball or new the answers then there wouldn’t be a need for the question(s). However, this is not the case. One thing for sure is, if you are interested in buying a home, you had better do it now-than later. As Ken Harney said in his weekly article in the San Antonio Business Journal, “take a snapshot of today’s mortgage market conditions and frame it.” “That’s the inescapable conclusion of the Obama administration’s “white-paper” on optional remedies for the two ailing giants on housing finance–Fannie Mae and Freddie Mac ,” he said. Besides gradually fading Fannie and Freddie out, consumer borrowing costs are going to increase-such as add-on costs and higher rates, along with qualifications relating to FICO credit scores and increasing down payment requirements. Among the proposals: Make 20%-30% down payments the minimum to meet he “qualified” test. If you only have enough money for a small down payment, you’ll be charged significantly higher rates he concluded. In short, find a local Realtor and Mortgage lender and get busy while the times are good. Why pay more when you can pay less-Now? Freddie Mac reported that the 30 year fixed rate index rose to 4.88% from 4.87% last week-just so you are aware
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