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PUT THE FACTS ON YOUR SIDE:  8 REASONS
FOR BUYING REAL ESTATE IN 2008


      

   

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_{^{Phoenix/Scottsdale Mortgage Rate Update...}}

November 14, 2008

Mortgage bond prices rose last week pushing mortgage interest rates lower. Trading was choppy with thin conditions surrounding the holiday. Continued global economic uncertainty remained the focus. Both stocks and bonds exhibited wild swings. The US Treasury modified the earlier $700 billion bailout plan to strengthen financial institutions that offer credit instead of purchasing troubled sub-prime mortgage assets. The change caused additional uncertainty and debate. The likeliness of mortgage interest rate volatility this coming week is very high considering the abundance of important economic releases.  Please see current mortgage rates below…

Each piece of data has the ability to cause volatility in the financial markets. Floating ahead of the data exposes a person to a tremendous amount of risk. It is possible for interest rates to improve if the data shows continued weakness in the economy with few price pressures. However, any surprises will likely be bad for mortgage interest rates. Governmental actions in addition to the economic data continue to weigh upon the financial markets. We are really in uncharted territory here with the wobbly underpinnings of the economy. Credit remains tight, as lending has become more stringent. However, there still remain funds available. Real estate transactions continue to take place despite perceptions to the contrary.

The important thing to remember is that even the Treasury officials trying to shore the economy do not know exactly what the future holds. With this in mind, be cautious during these times of economic uncertainty and be ready to take advantage of historically low interest rates in the event interest rates spike higher.

Please make note the Federal Housing Finance Agency (FHFA) today announced last week the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.  In addition, please make your buyers aware that as of January 1st, 2009, FHA max loan limits will be changing. In Maricopa County, the current FHA max loan is $346,250. This will change with new FHA case #'s issued after Jan 1st, 2009.   It appears that the new limit in Maricopa County will drop down to $271,050, but I am still confirming this.  Buyers – you need to get off the fence to take advantage of these limits before it's too late. Lastly, FHA down payment requirements will be increasing from 3% to 3.5% with the new changes.  

Housing and Economic Recovery Act of 2008 : What you need to know!

The House & Senate passed broad-based housing legislation, which was signed into law by President Bush. In the 700+ page document, many things were outline in the multi billion dollar package. Here are some key provisions of the Housing and Economic Recovery Act which affect us in our local housing market.

-The elimination of any seller funded down payment assistance programs such as Nehemiah or Ameridream for FHA loans.
-Buyers are still able to obtain their down payments for FHA loans from family members in the form of a gift.
-Buyers will need to have 3.5% for down payment instead of 3%. This goes in effect Jan 1st, 2009.
-Risk based Up Front Mortgage Insurance and Monthly Premiums based on FICO scores are eliminated for 12 months.-New UFMIP fee will be 1.75% upfront and a monthly .55 M.I. factor for new FHA case numbers issued as of October 1st.
-Condo processing for FHA loans will be streamlined.

Thanks for your business!  ~ Rob

 

Rob Kanyur Senior Loan Officer Nova Home Loans - Scottsdale Phone: 602-361-1587 Fax: 888-676-7807 RobK@NovaHomeLoans.com www.RobKanyurCanDoMortgages.com

Greater Phoenix resale numbers show decline in prices Did you know this about our market? . . . "We are well ahead of the pace of last year, something that is not being reported in our local media. This year September closes as reported by ARMLS were 6166 compared to September of 2007 at 3435. That is an 80% increase over last year!! I think that is positive news but it was a small story buried on page 4 of our local newspaper last week." In October 2008, a total of 8,210 resale homes recorded as sold. Foreclosure activity represented 47 percent (3,745 transactions) and 4,465 traditional market transactions. Foreclosed transactions represent home owners losing their property to successful individual bidders or the lender of record. In September 2008, the spilt was 3,655 foreclosed homes and 4,625 traditional transactions, while recorded sales in October 2007 was 1,145 and 2,825, respectively. Historically, the remaining months of the year tend to post slowing recorded activity. The 2008 year-to-date total is 39,055 traditional sales and 28,755 foreclosures. Foreclosure activity differs throughout the Valley such as 43 percent in Surprise, 32 percent in Tempe and 50 percent in Avondale. Over the next few months, recorded foreclosure activity could decline because of the response to various mortgage modification programs offered by lenders and government agencies to assist troubled homeowners, according to Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University Polytechnic. Full Story: http://asunews.asu.edu/20081114_realtystudies

Mortgage Interest Rates*

Rates as of Friday, November 14, 2008:

Conforming APR Payment per $1,000 Jumbo APR Payment per $1,000 30 YEAR FIXED 5.875% 5.944% $5.92 6.250% 6.344% $6.16 3O YEAR FIXED, I/O 6.625% 6.697% $5.52 N/A% 0.000% $0.00 15 YEAR FIXED 5.625% 5.741% $8.24 6.125% 6.281% $8.51 5/1 TREASURY ARM 5.750% 5.819% $5.84 5.750% 5.842% $5.84 7/1 TREASURY ARM 5.875% 5.944% $5.92 5.875% 5.967% $5.92 5/1 TREASURY ARM, I/O 6.125% 6.195% $5.10 6.125% 6.219% $5.10 30 YEAR FHA / VA 6.000% 6.070% $5.00 N/A% 0.000% $0.00 30 YR FX CONSTRUCTION 7.250% 7.325% $6.04 CALL% 0.000% $0.00 5/1 LIBOR ARM CONSTRUCTION/LOT CALL% 0.000% $0.00 7.375% 7.476% $6.15

*Rates are subject to change due to market fluctuations and borrower's eligibility.

INTEREST RATES BASED ON CURRENT MARKET CONDITIONS & INVESTOR GUIDELINES. NO DISCOUNT POINTS, 1% ORIGINATION FEE MAY APPLY, RATES BASED ON LOAN AMOUNTS >$200K & < 600K, MIN FICO 720, SUFFICIENT, DOCUMENTED INCOME, ASSETS REQUIRED. PREPAYMENT PENALTY MAY APPLY. INFORMATION DEEMED RELIABLE BUT NOT GUARANTEED - RECIPIENT TO VERIFY ALL INFORMATION. NOT FOR PUBLIC DISTRIBUTION WITHOUT THE CONSENT OF ROB KANYUR AT NOVA HOME LOANS (602) 361-1587 BKBR 0109511.