Loan Rates for July 31, 2009*
Loan Type | Rate
30 YR Fixed Owner Occupied | 5.0%
30 YR Fixed FHA & VA | 5.375%
5 YR ARM FHA | 4.0%
30 YR Fixed Jumbo | 6.125%
5 YR ARM Jumbo | 5.25%
30 YR Fixed Investor, 20% Down | 5.875%
30 YR Fixed Investor, 25% Down | 5.5%
*courtesy of Wells Fargo
Friday, July 31, 2009
Thursday, July 30, 2009
What is a Short Sale?
Today's real estate market is a far cry from what it was even just 24 months ago. Terms like REO, bank owned and short sale are the new norm. We've even heard comments like "flat is the new up" and the like.
So, when you're considering investing in real estate today, you'd better brush up on a few of these terms. You can start with a Google search, or you can call your local real estate agent. I prefer clients that do both. : )
Short Sale | If a seller owes more than his home is worth and is trying to "short sale" the property, it means he is selling it for less than he owes. When a lender or investor takes a loss on this property, it is up to that investor to allow the owner to sell for less. This is why short sales require "third party approval." The third party is the bank.
It is often thought that this term refers to the process.....nothing could be further from the truth, because the only thing short about a short sale is the money. These deals take a very long time to close. They often take much longer and have a greater chance of falling apart through the transaction than traditional equity sales. Although, recently, the Obama administration has been encouraging lenders to push these deals through faster...and have even started offering encentives to the lender and the seller on successful closings. It seems to be working. We see more of these deals actually close these days.
As always, feel free to call or email us with questions about the Portland real estate market. We look forward to helping you navigate through the whole process.
So, when you're considering investing in real estate today, you'd better brush up on a few of these terms. You can start with a Google search, or you can call your local real estate agent. I prefer clients that do both. : )
Short Sale | If a seller owes more than his home is worth and is trying to "short sale" the property, it means he is selling it for less than he owes. When a lender or investor takes a loss on this property, it is up to that investor to allow the owner to sell for less. This is why short sales require "third party approval." The third party is the bank.
It is often thought that this term refers to the process.....nothing could be further from the truth, because the only thing short about a short sale is the money. These deals take a very long time to close. They often take much longer and have a greater chance of falling apart through the transaction than traditional equity sales. Although, recently, the Obama administration has been encouraging lenders to push these deals through faster...and have even started offering encentives to the lender and the seller on successful closings. It seems to be working. We see more of these deals actually close these days.
As always, feel free to call or email us with questions about the Portland real estate market. We look forward to helping you navigate through the whole process.
Wednesday, July 15, 2009
Market Stats
Things are selling! Our current absorbtion rates (the number of months it takes for current listings to sell based on the number of closed sales per month) are way down, even from just 30 days ago.
Check it out.
Check it out.
Monday, July 13, 2009
Few Economists Favor More Stimulus....
Here's where we stand in the current "to Stimulus or not to Stimulus" plan. What do you think???
Most economists believe the U.S. doesn't need another round of stimulus now despite expectations of continued severe job losses.*
Just eight of 51 economists in The Wall Street Journal's latest forecasting survey said more stimulus is necessary, suggesting an average of about $600 billion in additional spending. On average, the economists forecast an unemployment rate of at least 10% through next June, with a decline to 9.5% by December 2010.
"The mother of all jobless recoveries is coming down the pike," said Allen Sinai of Decision Economics. But he doesn't favor more stimulus now, saying "lags in monetary and fiscal policy actions" should be allowed to "work through the system."
That sentiment echoes what the Obama administration has said about the stimulus. While some top Democrats, such as Rep. Steny Hoyer, have said they are open to another round of stimulus, Rob Nabors, deputy director of the White House's budget office, said Wednesday that the administration isn't discussing a new package.
*details courtesy of Landover Mortgage
Most economists believe the U.S. doesn't need another round of stimulus now despite expectations of continued severe job losses.*
Just eight of 51 economists in The Wall Street Journal's latest forecasting survey said more stimulus is necessary, suggesting an average of about $600 billion in additional spending. On average, the economists forecast an unemployment rate of at least 10% through next June, with a decline to 9.5% by December 2010.
"The mother of all jobless recoveries is coming down the pike," said Allen Sinai of Decision Economics. But he doesn't favor more stimulus now, saying "lags in monetary and fiscal policy actions" should be allowed to "work through the system."
That sentiment echoes what the Obama administration has said about the stimulus. While some top Democrats, such as Rep. Steny Hoyer, have said they are open to another round of stimulus, Rob Nabors, deputy director of the White House's budget office, said Wednesday that the administration isn't discussing a new package.
*details courtesy of Landover Mortgage
Monday, July 6, 2009
Housing Rebound Continues
The Pending Home Sales Index, reported Wednesday by the National Association of Realtors (NAR), rose 0.1% during the month. The index was up 6.7% compared with May 2008. It was the first four-month run up in the pending sales measure since October 2004.
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