Posted by Jessc098 on 6/2/09 8:01pm
Msg #290901

Expect real estate closings to increase substantially...

Saw this today and it made me happy.

http://www.comcast.net/articles/finance/20090601/US.Economy/

Reply by SReis on 6/2/09 8:20pm
Msg #290906

Am I reading the same story as you???? n/m

Reply by Jessc098 on 6/2/09 8:27pm
Msg #290910

Oh #%)*&%)# I posted the wrong link. Got two different ones, and posted the wrong one.


If I can find the right one, I will post it, but the prediction was that while the economy won't recover especially quickly, real estate closings will increase dramatically up until November 30th due to the new homebuyer credit and the depressed prices. I've certianly been seeing that trend in my business. My work has turned dramatically from refinances to purchases (mostly of out-of-state rental properties, as our property values didn't crash as much as other places).

I'll look agian for the right link, but don't know where I would have put it.

Reply by SReis on 6/2/09 8:30pm
Msg #290911

Check this out from U.S. News & World Report on 6/1...

4. Refinancing impact: But the impact on the mortgage refinancing market could be more significant. Rates in the 5.5 percent range would evaporate roughly 65 percent of refinancing demand because the higher rates don't offer enough savings to make the transaction worthwhile for many consumers, says Mark Hanson, a managing director who handles real estate and finance research at the Field Check Group. "Why would you want to pay $5,000 to close a loan when you are saving $20 or $30 a month," he says. "It's just not enough." Even more concerning, many consumers have already filled out mortgage applications without locking in their mortgage rates because they expected rates to drift lower before closing. The recent spike in mortgage rates, however, has made many of these yet-to-be-closed, non-locked loans unsalvageable without a sharp drop in rates. "Of all the applications in, 60 to 70 percent are [not locked]," Hanson says. "Out of those, 75 percent are dead."

Reply by SReis on 6/2/09 8:31pm
Msg #290912

This is the link to the full story (if you can stomach it!!)

http://www.usnews.com/blogs/the-home-front/2009/06/01/mortgage-rates-jump-6-things-you-need-to-know.html

Reply by MW/VA on 6/2/09 9:08pm
Msg #290919

Re: Check this out from U.S. News & World Report on 6/1...

I can definitely see this. We've seen a lot of streamline FHA/VA refi's during the last few months. Even some of those didn't close when the borrowers realized their savings were marginal. If there's a rate hike, those savings will disappear. After all, the sales pitch was lower interest rate/lower payment.

Reply by Elizabeth Soliday on 6/2/09 11:27pm
Msg #290935

Re: Check this out from U.S. News & World Report on 6/1...

The rate hike can't be permanent. They have been playing this game for months (I know, I had been looking for a home and playing the buyer's game for the past 8 months or so). "It's getting higher, It's getting higher" like the sky is falling. The truth is, the economy can't afford for it to get higher. If it gets even a teeny bit higher, people will have to sell their homes for less and you know what that means, less economic activity.

Good for them for letting the rates bounce around, that's what gets people moving...and I'm happy to reap the benefit.

Reply by JanetK_CA on 6/3/09 1:10am
Msg #290949

Re: Check this out from U.S. News & World Report on 6/1...

That may be true for the short term, but longer term, I think you have it backwards. Current interest rates are at, or near, historical lows. Some of us are old enough to remember when interest rates were in the high teens back in the 80s. These things tend to be cyclical and inevitably will work their way back up again (but hopefully not THAT far up!) I just hope it doesn't happen very soon!

Reply by Elizabeth Soliday on 6/3/09 11:41am
Msg #290991

Re: Check this out from U.S. News & World Report on 6/1...

Yeah, but we are in a bust economy, though no one wants to admit it...in the 80's we were booming. It's not going to happen again for a long time in my opinion.

Reply by JanetK_CA on 6/7/09 4:17am
Msg #291519

Re: Check this out from U.S. News & World Report on 6/1...

Some economists (and I aren't one...) are saying that with all the money our govt. is printing these days, there is a real risk of inflation again, which could cause interest to go up again to try to keep it under control. Time will tell...