Elite Realty Services Market Update - 11-19-08

NAR Opposes Full Privatization of Fannie Mae and Freddie Mac and Adopts Secondary Mortgage Market Principles

 During its annual convention in Orlando , NAR adopted principles recommending continued federal government involvement in the secondary mortgage market. In light of disruptions in the credit markets and the conservatorship of Fannie Mae and Freddie Mac, NAR developed the principles for consideration of the 111th Congress and the Obama Administration.

The goal of the principles is to ensure there is sufficient capital to support mortgage lending to qualified borrowers in all market conditions and in all markets throughout the country.

 
Housing Markets Ready to Rebound?

While the national news still continues to focus on the challenges in the national housing market, many local markets are poised to rebound, according to SmartMoney Magazine. The editors researched all of the major metro areas in the US to find markets that aare primed to see home values increase. Some of these areas include, Seattle , WA , Des Monies, IA, Raliegh , NC , Philadelphia , PA , Birmingham , AL , and Denver , CO . To learn more visit www.SmartMoney.com/mag.   

 
Also - there’s an interesting tax credit for first time homebuyers available through mid-2009:

http://www.realtor.org/gapublic.nsf/files/hbtaxcreditqa2008.pdf/$FILE/hbtaxcreditqa2008.pdf 

Mortgage Market Update

After weeks of sizeable swings in mortgage rates, last week saw rates move significantly less. Most rates drifted downward, as evidence of the economic slowing mounted.

Retail sales dropped for the fourth month in a row, plummeting by a record 2.8%. The week was also filled with announcements regarding numerous government  programs related to housing. Both the Federal Housing Finance Agency and the Federal Deposit Insurance Corporation announced programs offering bounties to mortgage servicing companies for announcement that the $700 billion dollar Troubled Asset  Relief Program would not be used to buy toxic mortgage debt off financial companies’ books.

While financial markets may continue to be rocked on a daily basis, we hope to see mortgage rates remain calmer again this week. If data from the Industrial Production numbers and both the CPI and PPI point to economic slowing with lower inflationary pressures, rates may continue downward.

 
Mortgage Rate Trend Index
NATIONAL OVERNIGHT AVERAGES

30 yr fixed mtg        6.08%    
15 yr fixed mtg        5.76%    
5/1 ARM        5.95%    

Will rates rise or remain relatively unchanged? Experts and Bankrate analysts provide their insights.

This week, more than half of the panelists believe mortgage rates will fall over the next 35 to 45 days. The rest are about equally split between those who think rates will rise and those who predict that rates will remain relatively unchanged (plus or minus 2 basis points).