One of the biggest problems we have seen lately relates to banks and lenders being tighter than normal when it comes to loaning money. Even strong credit doesn't help much these days!! We have published more information online with www.InvestSmarter.com discussing financing options and more information around the key basic portions of the Real Estate financial market. It seems to be in constant change as seen below:
Mortgage Applications Rise
Mortgage applications rose 3.6 percent last week on a seasonally adjusted basis to 477.7 from 461.3, according to the Mortgage Bankers Association weekly survey.On an unadjusted basis, the index increased 3.2 percent compared to the previous week, but it was down 22.8 percent compared with the same week last year.The refinance index increased 4.7 percent and the purchase index rose 2.8 percent, at least in part because mortgage rates declined slightly after hitting yearly highs earlier in the month.Mortgage rates were mixed last week:
30-year fixed-rate mortgages decreased to 6.33 percent from 6.39 percent
15-year fixed-rate mortgages decreased to 5.9 percent from 5.95 percent
1-year ARMs increased to 7.14 percent from 7.09 percent.Source: Mortgage Bankers Association (07/02/2008)
More people are leaning to the 1 year ARMs which bother us some at www.Destin-Florida-MLS.com because this is part of the problem we have been seeing within the constraints of what's available. It might be a quick and ok fix for someone that is already owning the home, i.e. refinancing, but for a new loan or purchase you could be setting yourself up for failure. The only second thought to that would be if it's a property you are being forced to close on and are trying to flip out of. Keeping your monthly payment as low as possible is important.
We hope we can continue to provide more information on topics such as these in the months to come. Stay tuned for more!!!
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment