Most people think that after a short sale or foreclosure the chances of buying a home in the following year or two are slim to none. Well, while that may be true with many lenders in California, we at Prime Home Loans have purchase loan options that will in most cases qualify buyers for a new home loan withing 1 month of foreclosure or Short sale. With reasonable rates and down payments, buying a new home is now a dream that can be accomplished shortly after short sale or foreclosure. Visit primehomeloans.com or contact a representative at one of our offices for more details.
Mortgage rates were lower today right out of the gate, continuing a move set in motion by comments from Fed Chairman Bernanke late in yesterday’s session. Markets didn’t have much time to react, but showed early hints at today’s strength in overnight trading. Some mid-day volatility forced a few lenders to adjust rates higher, but once it was resolved, even more lenders adjusted rates lower before the end of the day. The net effect is a 30yr fixed best-execution rate that’s more convincingly down in the 4.625% range, whereas some lenders were arguably near 4.75% yesterday.
The National Association of Home Builders’ index hit 52 in June, marking the first time it has been above 50 in seven years. A reading above 50 indicates that more builders say sales conditions are good rather than poor. The index has been posting gains for the last year, but those moves only indicated that builders thought the market was less bad than it had been.
“It’s further confirmation of what we’ve felt for six months at least — that the housing market is back and will continue to improve,” said David Crowe, chief economist for the trade group.
June is typically a month when builders report slower activity, after the spring buying season peaks. But this year they’re reporting better traffic levels and better sales conditions than they did in May.
The NAHB survey found that 41% of builders said current conditions are positive, almost double the percentage who said they were poor. A year ago, only 15% said conditions are good, while three times as many said it was a poor environment.
Mortgage Rates Lowest in More Than a Week
Mortgage rates moved decidedly lower in most cases, bringing them to their lows of the week on average. The bond markets that drive rate changes showed solid determination in spite of a batch of economic data that would normally suggest higher rates. In fact, a few lenders are slightly higher in rate vs yesterday, but that speaks more to the stratification of pricing and strategies between lenders than to the broader consensus. Most lenders were in better shape, some of them significantly, but none so much so that it suggested a change to the conventional 30yr Fixed best-executionrate of 4.125%.
Every time in the past month and a half that we’ve experienced a day like today (which have been few and far between), we’ve discussed the prospects for an ongoing rise in rates and the opportunity presented by these periods of consolidation or correction. Every time we note the “hope” inherent to such periods–both intellectual and emotional–and emphasize that they continue to be better viewed as opportunities to lock as opposed to signs of a bounce. During a trend higher in rates, this outlook can only serve you poorly one significant time, when and if markets bounce back in the other direction. While that can (and some would argue “should”) happen, we won’t truly be able to confirm that until after next Wednesday’s FOMC events. Between now and then, volatility remains possible, and opportune dips far from guaranteed.
Home repossessions in the U.S. jumped 11 percent in May after declining for the previous five months as rising prices and limited inventory for sale across the country spurred banks to complete foreclosures.
Lenders took back 38,946 homes, up from 34,997 in April, according to Irvine, California-based data firm RealtyTrac, which tracks notices of default, auction and seizures. Thirty-three states had increases in the number of homes repossessed, RealityTrac said in a report today.
Banks are more willing to move to the final stage of foreclosure because there is sufficient demand and prices are improving, said Eric Workman of Tinley Park, Illinois-based Mack Cos., which aggregates single-family rental homes and resells them to individuals and institutional investors. U.S. home prices advanced almost 11 percent in the year through March, the biggest 12-month gain since April 2006, according to the S&P/Case-Shiller index of values in 20 cities.
“For a very long period of time, the market in general and specifically banks were unsure of what these assets were valued at,” Workman, vice president of sales and marketing at Mack, said in a telephone interview. “With increasing stability of the economy and housing prices throughout the U.S., these banks and sellers are getting much more comfortable with the value of their properties.”
Thirty-Year Rate Approaches 4% in Freddie Survey
The average 30-year FRM rate in the latest survey was 3.98%, up from 3.91% in the previous week and 3.71% a year ago. It has climbed more than half a percentage point since it began to rise last month.
The average 15-year FRM rate during the week ending June 13 also was higher than it was the previous week. It rose to 3.1% from 3.03% during that period, and also was up compared to 2.98% a year ago.
“Fixed mortgage rates crept up further this week following a solid employment report for May,” Freddie Mac chief economist Frank Nothaft said in his weekly rate report
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage in Freddie’s survey, at 2.79%, was up five basis points from the previous week but was still a basis point lower than a year ago.
The average one-year Treasury ARM rate remained steady week-to-week at 2.58% and is 20 basis points lower than a year ago.
Average points are lowest for one-year Treasury ARMs at 0.4 of a point, followed by five-year Treasury hybrids at 0.6 of a point, and 15- and 30-year FRMs at 0.7 of a point.
Introducing the 95% Loan to Value, no PMI purchase money loan program. This program is designed to qualilfy home buyers for more financing than they would in any other program available.
With no rate adjustments, or private mortgage insurance premiums this loan will give home buyers the opportunity of recieving the same benefits as purchasing a home with a 20% down payment by only putting down 5%.