Mortgage Professional vs Big Bank

You got to love this video; it certainly illustrates what I've heard from folks who try to get a loan thru a big bank. Don't be dupped.

 

http://youtu.be/4rif6r0vwyE

What does it mean when the Fed says they will Keep interest rates low?

The Fed has stated that it will keep interest rates low for at least two more years. They will continue to be aggressive in support of the economic recovery. However, the Fed does not directly control long-term rates which determine the cost of home loans and even loans on automobiles. It can influence long-term rates through the purchases of government securities, and is indeed doing so. When the markets perceive that the recovery is picking up steam, it will react accordingly. The day of the release of positive employment figures, we saw long-term rates go up. That does not mean that the economy is out of the woods and that the increase was permanent. It was a reminder that when and if the economy gains strength all bets are off. The recent strength in the real estate market is one factor which can make that happen.

Property Values Expected to Rise in 2013

Mortgage rates are likely to remain near record lows for the first half of 2013, while property values are expected to strengthen, said mortgage-finance companyFreddie Mac FMCC +0.33%.
The company expects long-term mortgage rates to rise gradually in the second half of 2013, but to remain below 4%, according to its U.S. Economic and Housing Market Outlook.
http://blogs.wsj.com/economics/2012/12/10/freddie-mac-mortgage-rates-to-stay-low-property-values-to-rise-in-2013/?mod=wsj_valetbottom_email

Freddie Mac Expects Interest Rates to Rise in 2013

There is still

Freddie Mac Expects Rates to Rise in Q3 of 2013

Mon, 2012-12-10 17:13 — NationalMortgag...

Freddie Mac has released its U.S. Economic and Housing Market Outlook for December showing what some of the market features are expected to look like in 2013. Freddie Mac says to look for long-term mortgage rates to remain near their record lows for the first half of 2013, then rising gradually during the second half of the year, but remaining below four percent. Property values are also expected to continue to strengthen with most U.S. house price indexes likely rising by two to three percent in 2013. While the refinance boom will continue into early 2013, it will be less compared to 2012, so look for single-family mortgage originations to decline by 15 percent, conversely, expect multifamily lending to rise approximately five percent.

"The last few months have brought a spate of favorable news on the U.S. housing market with construction up, more home sales, and home-value growth turning positive," said Frank Nothaft, Freddie Mac's  vice president and chief economist. "This has been a big change from a year ago, when some analysts worried that the looming 'shadow inventory' would keep the housing sector mired in an economic depression. Instead, the housing market is healing, is contributing positively to GDP and is returning to its traditional role of supporting the economic recovery."

Should I Sell My Home During the Holidays?

http://online.wsj.com/article_email/SB10001424127887324640104578165580618753110-lMyQjAxMTAyMDEwMDExNDAyWj.html?mod=wsj_valettop_email

FANNIE AND FREDDIE LOAN LIMITS DON'T CHANGE FOR 2013

The maximum dollar limits for conforming mortgage loans will remain unchanged for Freddie Mac and Fannie Mae in 2013. The GSEs' conservator, the Federal Housing Finance Agency (FHFA), announced on Thursday that the baseline limit that will apply to most of the country will be $417,000 for one unit properties. Differing limits, ranging as high as $625,000, will prevail in so-called "high cost" counties but in each instance will remain the same as in 2012.

Interesting Home Sales Numbers Posted for October

On Wednesday we saw some price movement during the day, but for the most part MBS prices were pretty flat on below-normal volume. We learned that New Home Sales decreased 0.3% in October, but is up 17.2% year over year. The median sales price was $237,700; the average was $278,900. The seasonally adjusted estimate of new houses for sale at the end of October was 147,000, which represents a supply of only 4.8 months at the current sales rate. The press doesn't seem to be focused on that "shadow inventory" any more.