Here is an Internet article published today that will describe how the Fed's cut of the interest rate may help you.
As you will see this doesn't necessarily mean that interest rates will go down on the new 30 year fixed rates, but there are some benefits for you none the less.
Wednesday, September 19, 2007
The New Team
Mandy Bagent, Jonathan Paul, and Liz Larman all from Prudential NW Properties have teamed up to bring together all of their expertise to provide their clients with the best service possible.
The team has started a website http://www.clarkcountyhomelist.com/ to provide you with tons of hassle free information while you decide on your future home buying and selling needs. Please feel free to visit and gather as much information as you can, so you can make an informed decision. If at anytime you have any specific questions we are always more than willing to answer any questions. You can email us directly, or give us a call on our cell phones.
The new team now brings you the power of three for the price of one. Also always remember as a home buyer our service is always free as the seller pays our fees. So you get all three of us for no money out of your pocket.
The team has started a website http://www.clarkcountyhomelist.com/ to provide you with tons of hassle free information while you decide on your future home buying and selling needs. Please feel free to visit and gather as much information as you can, so you can make an informed decision. If at anytime you have any specific questions we are always more than willing to answer any questions. You can email us directly, or give us a call on our cell phones.
The new team now brings you the power of three for the price of one. Also always remember as a home buyer our service is always free as the seller pays our fees. So you get all three of us for no money out of your pocket.
Thursday, September 6, 2007
Mortgages in foreclosure at record high
The rate of home loans in foreclosure rose to a record high in the second quarter of 2007 as more homeowners in California, Florida and other states could not refinance their adjustable-rate mortgages, a trade group said on Thursday.....
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&Date=20070906&ID=7429121
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&Date=20070906&ID=7429121
Bush's mortgage bailout just might work
With his stunning decision last week to let a federal housing agency guarantee mortgages of distressed homeowners, President Bush appears to have launched a "surge" in the financial markets to match the Pentagon's efforts in Iraq.......
http://articles.moneycentral.msn.com/Investing/SuperModels/BushMortgageBailoutJustMightWork.aspx
http://articles.moneycentral.msn.com/Investing/SuperModels/BushMortgageBailoutJustMightWork.aspx
Foreclosures in county mirror national trend
A rise in Clark County foreclosures seems to mimic the national surge in mortgage defaults, although some say the outlook here is not so grim.
A total of 225 Clark County homes were lost to foreclosure through July, up from 138 foreclosures in the same period in 2006, according to data compiled by the Bank of Clark County. The information follows a report that national foreclosures experienced a 93 percent year-over-year increase in July, as overstretched homeowners and home builders with unsold inventory continued to react to weakening home sales and restrictions on lending.
Steady home values here suggest that the local market is stronger than in many other areas of the nation, said Mike Worthy, chief executive officer of the Bank of Clark County.
"The good news in Clark County, particularly, is the value of homes is holding up pretty well, relative to other markets," Worthy said.
At $262,000, the median price of all new and pre-owned homes sold here in July was just slightly lower than the median price of $269,900 for homes sold during July 2006, according to "benchmarks," a Vancouver real estate tracking service.
Compared with more dramatic price softening in other parts of the country, Clark County's fairly healthy values could be a break for overextended local homeowners. Of those, many face an impending mortgage payment increase, a result of initially financing with low-interest adjustable-rate mortgages, or ARMs. Worthy said some may need to act quickly or risk foreclosure.
"If the value of your home is staying even, you have a chance to make a hard decision, to sell the home and move to something less expensive," Worthy said.
Selling challenges
He and other analysts acknowledge selling will be more difficult for buyers who bought homes during a three-year housing boom that lasted through 2006. Easy financing, or subprime lending, extended during the period allowed buyers to take on greater risk, too much, in some cases, said Dave Dahlstrom, chief credit officer and executive vice president of Riverview Community Bank.
Subprime mortgages were offered "not just to people with low credit scores, but to people who didn't have the traditional 15 to 20 percent down," Dahlstrom said.
The lax credit terms allowed buyers to "move up" into homes priced just beyond their means, Dahlstrom said. Many of those buyers are now trying to sell, a situation that is adding to a glut of higher-priced, $400,000 to $450,000 homes on the Clark County market.
"There are just too many of them," Dahlstrom said.
The total number of homes for sale in Clark County added up to a 7.6-month supply in July, according to Portland-based Regional Multiple Listing Service, up from a 6.1-month supply in July 2006 and a 2.0-month supply in July 2005. The number means it would take 7.6 months to sell all the homes if no new listings were added.
The inventory won't sell off as quickly now because the pool of potential buyers can no longer secure subprime mortgages. Once considered high-yield by group investors, subprime and related "Alt-A" loans are no longer a hot commodity. Rising foreclosures unleashed an industry-wide domino effect among subprime lenders.
"The subprime market has dried up like a desert and the huge mortgage companies across the country are folding like tents," Worthy said.
Increasing foreclosure rates could take a year to 18 months to level out, said Tim Duy, an economics professor at the University of Oregon.
"We could be into 2008 or 2009 before things level out, and I suspect a (housing market) rebound is many years into the future," Duy said. In the meantime, Duy said overstretched homeowners face a difficult climate for working out solutions to mortgage default.
"It used to be banks would be willing to work out a situation," Duy said.
But the banks are not the owners of subprime mortgages, which were bundled into complex packages and sold as investments.
"Now there's no obvious linkage between an investor who owns your mortgage as part of a portfolio of assets," Duy said.
Worthy said potential home buyers will eventually gravitate back to traditional fixed-rate mortgages, products offered by established banks.
Homeowners facing default "need to sit down with a real mortgage professional and evaluate their mortgage contract," Worthy said. "I'm sorry to say some people will find selling the house is the best option
A total of 225 Clark County homes were lost to foreclosure through July, up from 138 foreclosures in the same period in 2006, according to data compiled by the Bank of Clark County. The information follows a report that national foreclosures experienced a 93 percent year-over-year increase in July, as overstretched homeowners and home builders with unsold inventory continued to react to weakening home sales and restrictions on lending.
Steady home values here suggest that the local market is stronger than in many other areas of the nation, said Mike Worthy, chief executive officer of the Bank of Clark County.
"The good news in Clark County, particularly, is the value of homes is holding up pretty well, relative to other markets," Worthy said.
At $262,000, the median price of all new and pre-owned homes sold here in July was just slightly lower than the median price of $269,900 for homes sold during July 2006, according to "benchmarks," a Vancouver real estate tracking service.
Compared with more dramatic price softening in other parts of the country, Clark County's fairly healthy values could be a break for overextended local homeowners. Of those, many face an impending mortgage payment increase, a result of initially financing with low-interest adjustable-rate mortgages, or ARMs. Worthy said some may need to act quickly or risk foreclosure.
"If the value of your home is staying even, you have a chance to make a hard decision, to sell the home and move to something less expensive," Worthy said.
Selling challenges
He and other analysts acknowledge selling will be more difficult for buyers who bought homes during a three-year housing boom that lasted through 2006. Easy financing, or subprime lending, extended during the period allowed buyers to take on greater risk, too much, in some cases, said Dave Dahlstrom, chief credit officer and executive vice president of Riverview Community Bank.
Subprime mortgages were offered "not just to people with low credit scores, but to people who didn't have the traditional 15 to 20 percent down," Dahlstrom said.
The lax credit terms allowed buyers to "move up" into homes priced just beyond their means, Dahlstrom said. Many of those buyers are now trying to sell, a situation that is adding to a glut of higher-priced, $400,000 to $450,000 homes on the Clark County market.
"There are just too many of them," Dahlstrom said.
The total number of homes for sale in Clark County added up to a 7.6-month supply in July, according to Portland-based Regional Multiple Listing Service, up from a 6.1-month supply in July 2006 and a 2.0-month supply in July 2005. The number means it would take 7.6 months to sell all the homes if no new listings were added.
The inventory won't sell off as quickly now because the pool of potential buyers can no longer secure subprime mortgages. Once considered high-yield by group investors, subprime and related "Alt-A" loans are no longer a hot commodity. Rising foreclosures unleashed an industry-wide domino effect among subprime lenders.
"The subprime market has dried up like a desert and the huge mortgage companies across the country are folding like tents," Worthy said.
Increasing foreclosure rates could take a year to 18 months to level out, said Tim Duy, an economics professor at the University of Oregon.
"We could be into 2008 or 2009 before things level out, and I suspect a (housing market) rebound is many years into the future," Duy said. In the meantime, Duy said overstretched homeowners face a difficult climate for working out solutions to mortgage default.
"It used to be banks would be willing to work out a situation," Duy said.
But the banks are not the owners of subprime mortgages, which were bundled into complex packages and sold as investments.
"Now there's no obvious linkage between an investor who owns your mortgage as part of a portfolio of assets," Duy said.
Worthy said potential home buyers will eventually gravitate back to traditional fixed-rate mortgages, products offered by established banks.
Homeowners facing default "need to sit down with a real mortgage professional and evaluate their mortgage contract," Worthy said. "I'm sorry to say some people will find selling the house is the best option
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