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Tim Hall:
Licensed Real Estate Broker, actively selling since 1993. Co-founder of Re/Max Central Properties, with my wife, Bell Hall, and team-leader for a team of 7. BA from Capital University and a US Navy Veteran CU-60 U.S.S. Saratoga. Father of 3 - Alicia, Erica, and Amber; and grandfather of 1, Ava.
Home > Blogs > Greater Dayton Home Report > Archives > 2008 > January > 17
Thursday, January 17, 2008
Rates Falling, Refi’s Rising ! Bernanke economic “Stimulus Package”
According to the Inman News Service, an excellent real estate centric reporting agency, mortgage application volume during the second week of January posted a huge increase as interest rates continued to decline, per the Mortgage Bankers Association report released last night. Why, because the SMART MONEY takes advantage of short-term opportunities!
An excerpt of the article follows. Now COMBINE this with the highly anticipated Fed economic stimulus package and you get a “Grand Slam” for existing home owners.
Let me explain.
- Congress passed legislation to soften the tax impact to home owners forced to sell their homes via short sale, or forclosure. This will speed up the transition to a blanced supply.
- Home builders have reduced their new construction over 60% from the highs of 2005; 700K new homes in 2007 versus 1.7 million homes in 2005.
- Rate cuts, BIG cuts, are ahead.
Here is how to make the most of this opportunity. If you don’t have to sell, don’t. If you have a mortgage, find out TODAY what the terms are. You need to know the balance, the interest rate, the years remaining and if you have any pre-payment penalty.
Seriously, I believe that the INSTANT there are signs of the housing slump hitting bottom, that the cost of mortgages goes back up. The FED doesn’t want a repeat of what got us into this mess to begin with. SO, you win if you are thoughtful enough to gather the above information and watch rates. I happen to own some rentals, my personal residence and a commercial building. I can’t watch rates constantly so I leave that to my banker. If you want him to watch rates for you, send me your contact info at tim@timhallteam.com and he will get in touch. These rates can turn on a dime, and my goal is to catch historic lows, just like I did in the past.
Tim
Here’s the excerpt
Home loan apps jump 28%
Refis see another large gain as interest rates slide
Inman News
Mortgage application volume during the second week of January posted a huge increase as interest rates continued to decline, the Mortgage Bankers Association reported today.
The group’s market composite index, a measure of home loan application volume, climbed 28.4 percent on a seasonally adjusted basis between the first and second weeks of January. This double-digit gain comes on the heels of a 32.2 percent rise in the index one week earlier, the largest in four years.
The index that tracks refinancings posted the largest gain, rising 43.4 percent last week on a seasonally adjusted basis from the week before, while the index tied to purchase loans grew 11.4 percent.
According to MBA, the average contract interest rate on 30-year fixed-rate mortgages sank to 5.62 percent from the previous week’s 5.73 percent, and the average rate on 15-year fixed loans dropped to 5.07 percent from 5.21 percent. Rates on adjustable-rate mortgages (ARMs) fell sharply during the period, with the average one-year ARM tumbling from 6.04 percent to 5.77 percent.
