New Lows for Mortgage Rates this Week.

For home buyers or refinancers, borrowing costs for home ownership just got a little cheaper as mortgage rates took another dip to new all-time record lows this week, Freddie Mac reports in its weekly mortgage market survey. 

Here’s a closer look at average rates for the week ending May 3: 

• 30-year fixed-rate mortgages: averaged 3.84 percent, with an average 0.8 point, reaching a new historical low. The previous record for 30-year rates was 3.87 percent, which was set on Feb. 9 of this year. A year ago at this time, rates averaged 4.71 percent. 
• 15-year fixed-rate mortgages: averaged 3.07 percent, with an average 0.7 point, another historical low. The previous record for 15-year rates was 3.11 percent set on April 12 this year. A year ago at this time, 15-year rates had averaged 3.89 percent. 
• 5-year adjustable-rate mortgages: averaged 2.85 percent, with an average 0.7 point, holding the same as last week. Last year at this time, 5-year ARMs averaged 3.47 percent. 
• 1-year ARMs: averaged 2.70 percent this week, with an average 0.6 point, also registering at a new all-time low. Last year at this time, 1-year ARMs averaged 3.14 percent. 

Modern Phoenix Week Home Tour in Marion Estates

Modern Phoenix Week Home Tour in Marion Estates.

2012 FHA Loan Limits – a boost to your buying power?

FHA loan limits have increased in many places throughout the U.S., but what does that mean for you?

Higher FHA loan limits mean you may be able to finance a higher-priced home and take advantage of all the benefits these loans have to offer:

• Flexible qualification: FHA guidelines have more flexible requirements than conventional programs. More flexibility means more borrowers may obtain financing.
• Less than perfect credit: FHA loans are often more forgiving of a buyer’s credit history. Approval is based on a variety of factors, including credit history, credit scores, employment history and income. You may still be able to qualify if you’ve had a bankruptcy as recently as two years ago.
• Low down payment: Homebuyers only need a 3.5% down payment, rather than the 10% or even 20% required for conventional loans. This money may be a gift from a family member or other source.
• Closing costs may be lower: The program allows for up to 6% in seller contributions to help cover customary closing costs.
• Term options: FHA loans are typically a fixed rate, but adjustable-rate loans are also available.

Phoenix Home Inventory down 49.1%!

Housing inventory slid to 1.89 million homes in December — down 6 percent from the previous month and 22.3 percent from the prior year, according to REALTOR.com. 

Although supply ended 2011 at a four-year low, it remains to be seen whether it is a sign of a recovery — especially when considering there is a backlog of foreclosed homes that has yet to hit the market and some sellers are delaying sales until prices rise again. 

In the 145 markets tracked by REALTOR.com, only Springfield, Ill., registered a year-over-year increase.  Inventories plunged 49.7 percent in Miami, 49.1 percent in Phoenix, and 46.6 percent in Bakersfield, Calif. 

Meanwhile, the national median price edged up 5 percent year-over-year; and asking prices climbed 32.5 in Miami, 21.7 percent in Naples, 21.5 percent in Fort Myers-Cape Coral, and 19.4 percent in Punta Gorda.  However, asking prices were down 11 percent in Detroit, 10 percent in Chicago, 7.6 percent in Las Vegas, and 7 percent in Sacramento.

 

Where are Mortgage Rates Heading?

Where are rates heading? You may soon get more insight with a new proposal the Federal Reserve is weighing.

The Federal Reserve doesn’t traditionally make a point to reveal its predictions for future actions on interest rates widely known to the public — that is, until recently. This summer in a rare step, the Fed announced that it would keep short-term interest rates at nearly zero until 2013. The Fed may start making it a tradition to reveal more with a regular forecast of its future decisions on interest rates.

The Fed may consider adopting such a move at its Tuesday meeting, but if it does adopt an action, it most likely wouldn’t be announced to the public until January, The New York Times reports.

According to a recent article, the minutes of the Federal Reserve committee’s last meeting in November revealed that “participants generally expressed interest in providing additional information to the public about the likely future path of the target federal funds rate.”

In 2007, the Fed weighed a similar move but decided against it because they feared that public would take the predictions as commitments, and the Fed wanted to be able to change course if needed without public misunderstanding.

If the Fed adopted a forecast, it likely would predict where interest rates are heading for the next three years, and it would be similar to the forecasts it already publishes about economic growth, unemployment, and inflation four times each year, The New York Times reports.

If you’re looking for a great deal on a beautiful home in Goodyear, check out this beautiful bank owned property in one of Goodyear’s best communities, Cortile at Palm Valley. This 3 bedroom, 2 bath Camelot Home has tons of upgrades and charm. As you enter through a private front courtyard, the open floor plan draws you in and is perfect for entertaining. Forget waiting months on a short sale, this property is ready for an offer and will have a quick approval. For more information on this, or any other property in the valley, check out our website www.myPHXagents.com

Mortgage Rates Stay Low Again This Week

For the third week, 30-year fixed-rate mortgages, the most popular choice among home buyers, averaged at or below 4 percent, Freddie Mac reports in its weekly mortgage market survey.

“Mortgage rates were little changed this week just as the economy is showing potential for further gains in the near term,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.

Here’s a closer look at rates for the week ending Nov. 17.

30-year fixed-rate mortgages: averaged 4 percent with an average 0.7 point, rising slightly from last week’s 3.99 percent average. A year ago at this time, 30-year rates averaged 4.39 percent.
15-year fixed-rate mortgages: averaged 3.31 percent with an average 0.7 point, increasing from last week’s 3.30 percent. Last year at this time, 15-year rates averaged 3.76 percent.
5-year adjustable-rate mortgages: averaged 2.97 percent with an average 0.6 point, decreasing slightly from last week’s 2.98 percent average. Last year at this time, 5-year ARMs averaged 3.40 percent.
1-year ARMs: averaged 2.98 percent with an average 0.6 point, up from last week’s 2.95 percent average. A year ago, 1-year ARMs averaged 3.26 percent.
Source: Freddie Mac