DEAN GRAZIOSI: DEAN GRAZIOSI REAL ESTATE

The Mortgage Bankers Association released favorable data regarding August mortgage applications and applications for refinancing.  As interest rates fell to the lowest levels since May, consumers rushed to capitalize on the downturn.  In August,  the 30-year fixed interest rates hit their lowest point in three months.

 

Applications for refinancing climbed as did the number of applications for new mortgages.  As of September 4, 2009 the Mortgage Bankers Association (MBA) said its seasonally adjusted index of mortgage applications, which includes both new application and refinance applications, increased 17.0%, the biggest jump since may 2i9, 2009.

 

Many of the new applications are believed to be sparked by first homebuyers seeking to beat the November 30^th closing deadline fore the 2009 tax credit.  A spokesperson for the Charlotte, North Carolina, based Lending Tree, said that purchasers were not upsizing but were taking advantage of lower prices and lower interest rates to either refinance or purchase their first home.

 

It appears that the low end of the real estate market is busy.  It is believed that there is a substantial inventory of existing homes waiting to come on the market.  Some real estate experts project 12 months of housing inventory is waiting in the wings.

 

With interest rates at record lows and with excess supply, the conditions could not be more favorable for real estate investment.  Interest rates on 30-year fixed mortgages dipped 0.13 percent to 5.02%.  The all-time low was set in March at 4.61%.  Fixed 15-year interest rates averaged 4.45% down from the 4.57% rate the week before.

 

The four-week moving average of mortgage applications was up 7%.  With Congress reconvening this week, the National Association of Realtors and other real estate and mortgage groups will be asserting pressure for the passage of an expanded 2010 tax credit.  The industry is lobbying hard for passage of the bill, which will serve as a credit for all real estate acquisitions.

 

The climate is strong for the real estate investor.  Real estate agencies indicate a upswing in pending sales.  Prices have begun to stabilize and investors who want to stay ahead of the curve are buying now.  

 

 

This entry was posted on Monday, October 5th, 2009 at 2:57 pm and is filed under Mortgage bankers. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.