No Bull Agent

Mortgage Market Update: Will Tuesday’s housing starts report show an increase?

Information in this post is provided by Ron McGowan, Senior Mortgage Consultant with PrimeLending.  He is a guest blogger who provides us information from a lender’s perspective.  For additional information on Ron, please visit his website at ILoanSanDiego.com.

Inside Lending Newsletter from Ron McGowan for the week of September 20, 2010

Market Update
INFO THAT HITS US WHERE WE LIVE…Fannie Mae released a survey showing 70% of those polled in June and July feel now is a good time to buy a home.  This is up from a 64% reading in January.  At the same time, 83% of those surveyed think it’s a bad time to sell, which isn’t such a terrible thing, since there’s still plenty of inventory for buyers to choose from.

Another group of industry observers concluded that sales of existing homes hit bottom in July and will rebound in the fall.  They based this on recent reports for purchase mortgage applications and pending home sales, which track signed purchase contracts for existing homes.

The fact remains, homes are now more affordable for more people than they’ve been in years.  Today’s historically low mortgage rates make monthly payments much easier to work into the family budget.  Read the rest of this entry »

Tags: california, home buyer, ken kaplan, market, mortgage, no bull agent, san diego, update

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

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