No Bull Agent

Real estate investors rethinking their strategy

In these current economic conditions, the rental market is one area that is seeing increased activity.  According to “Rise of the renting class” posted on CNNMoney.com on July 28, the number of households renting increased by 10% or by 3.4 million between 2004 and 2008.  The largest increases have been seen in the Midwest and the South.  There is no doubt that home ownership offers many advantages including tax incentives, appreciation and pride of ownership that renting cannot accomplish.  Renting, however, may be the only option for those where ownership is not possible or not wanted at this time.  The CNNMoney.com article suggests the perceptions about renting and home ownership may be changing.  The rising rental demand, coupled with low interest rates and lower home prices can offer opportunities for investors looking to have an income generating property.  The recent CNNMoney.com article, “Vulture investors:  They’re back – and making a bundle” posted on August 5 discusses this trend.

The investor opportunities now are different than several years ago.  Prior to the drop in the housing market, investors were purchasing properties for the purpose of “flipping.”  Due to the rapid appreciation between 2004 and 2006, it was possible to make a good profit through buying low and selling high.  This level of appreciation may be gone, but a different opportunity has appeared. Read the rest of this entry »

Tags: california, generate, income, investor, ken kaplan, no bull agent, rental, san diego

Will inflation data cause mortgage rates to rise this week?

What’s Ahead for Mortgage Rates this Week:  September 13, 2010
By:  Greg Wickstrand

Information in this post is provided by Greg Wickstrand, Home Loan Consultant for HomeServices Lending.  He is a guest blogger who provides us information from a lender’s perspective.  For additional posts by Greg, please visit his BLOG.

A shift in Wall Street sentiment caused mortgage markets to worsen last week. There wasn’t much in the way of new data, but the numbers that did hit the street helped quell fears of a double-dip recession.

Conforming mortgage rates rose between Monday-Friday for the first time since June, and mortgage-backed securities have now lost ground on six of the last 7 trading days.

During this period, conforming mortgage rates have risen by as much as 0.375 percent.

Mortgage rates for FHA-insured home loans are higher, too.

Remember, concern for the future of the U.S. economy was a major catalyst for low rates this summer. The drop in rates, which began in April on weaker-than-expected data, accelerated through July and August on record-low home sales and a stalled jobs market.

Lately, though, these concerns are turning to hope. Read the rest of this entry »

Tags: california, home buyer, inflation data, kaplan, mortgage rate, pending home sales, retail sales data, san diego

How will housing data influence rates the week of August 16?

Information in this post is provided by Greg Wickstrand, Home Loan Consultant for HomeServices Lending.  He is a guest blogger who provides us information from a lender’s perspective.  For additional posts by Greg, please visit his BLOG.

What’s Ahead for Mortgage Rates this Week:  August 16, 2010
By:  Greg Wickstrand

Mortgage markets worsened last week, putting a pause on the mortgage rate rally that dates to mid-April. Mortgage rates rose last week and home affordability suffered.

The Refi Boom remains in full effect, but rates are not as dazzling as they were a week ago.

It’s somewhat strange that mortgage rates rose last week given the heavy dose of negative-bending news.

• The Federal Reserve noted that the economy “has slowed“
• New unemployment claims rose to a 6-month high
• Retail sales — excluding auto sales — rose less than expected

Mortgage rates often to fall on such news, but last week, they rose. The biggest reason was weak demand on a new 30-year bond issuance from the government. Read the rest of this entry »

Tags: august 16, california, greg wickstrand, home buyer, ken kaplan, loan, market, mortgage rate, nobullagent, san diego, update