New home construction numbers were released today by the Commerce Department. February housing starts improved over the steep decline in January. However, just like we’ve seen over the past few months, there were mixed signals. Building permits which are an indicator of builder confidence declined. Permits have now declined 12 out of the past 13…
DetailsWow! The past two weeks in the mortgage industry have been wild. Sub-prime lenders are scared to death. Several more companies have gone out of business. All of the others are quickly tightening their guidelines. Stock prices have plummeted and employees are scrambling. I honestly believe most people saw this coming. We certainly did. What’s…
DetailsAs expected, many subprime lenders have filed bankruptcy or closed operations during the first 45 days of 2007. Most of these lenders are having to buy back loans from the investors who purchased the loans. The main reason for the buybacks are first payment defaults. In my opinion, we will continue to see a shakeout…
DetailsIt’s amazing how fast interest rates are increasing. Less than two months ago, rates were one-quarter to one-half point (percentage point) lower than they are today. The yield on the ten year treasury note has increased from around 4.5% to 4.9%. I would guess the main reason for the increase is the uncertainty surrounding inflation.…
DetailsAs I ‘ve discussed in a recent posting, I believe this will be a great year for first time homebuyers. With so many houses on the market I think buyers can find great deals. Here are a couple of tips: 1) Talk with a loan officer from a local mortgage company or bank and get…
DetailsI read a statistic the other day that nearly 75% of consumers research products and services online before making a purchase. That started me thinking about researching mortgages online. It’s a great way to ‘shop smart’ but I recommend you keep a couple things in mind as you go cyber sleuthing for a loan. 1.…
DetailsOver the past two weeks mortgage rates have increased steadily. Is this a trend that will continue in 2007? It’s really anyone’s guess. Mortgage rates are tied closely to the 10-year treasury bond which changes daily based on market news. Many economists believe rates will increase throughout the year. I think most of the mortgage…
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