Mortgage Rates: You May Have Missed the Bottom

For those waiting until interest rates bottomed out before they either purchased a home, or refinanced the one they're in, it may be too late.

We warned our readers a couple of months ago about the risk involved in trying to time the markets, both from a home buying and mortgage point of view.

Now, the Federal Reserve has signaled that it won't try to do more than it previously planned to pull down mortgage rates and other long-term interest rates.

For homeowners hoping to refinance at a lower interest rate, the Fed doesn't seem to be offering any fresh encouragement.

Fed Chairman Ben Bernanke may have decided there was too much risk in trying to boost efforts to push long-term rates down, with the market leaning in the other direction. Besides, the Fed has said it views rising long-term rates as a sign that the economy is getting better.

Could mortgage rates dive again? Sure — if the economy crumbles.

Real Estate News - July 2009

Our July 2009 Newsletter is now online for you…

From the right Nav Menu, Find "PAGES AND NEWSLETTERS" and Select "July 2009 below "Our Monthly Newsletters".

Pay Off Credit Cards Before Buying a House?

A reader (we'll call him Robert to protect the real identity of this comment) wrote in to ask:

Q - "I am thinking of buying a house. I have a credit card with a balance of approximately $3,000. Should I pay this off before applying for a mortgage, or will that hurt my FICO score to pay it off and hacve no balance?"

A - About 60 days before you apply for your mortgage be sure to have that credit card paid off completely. The purpose of the 60 day advance is to make sure your credit reports are updated to show the zero balance. It's somewhat comical that in the year 2009 you have to do it so far in advance in order to ensure that your credit reports reflect the balance, but these are the cards we've been dealt.

If you can do that then your mortgage application won't have any trouble caused by credit scores.

If you have a question or comment about this, or any other article at this site, please feel free to click the comment tab and fire away. Your identity will be protected, and your email address will NEVER be published at this site. We look forward to hearing from you.

Death of the Mortgage Broker?

If you're in the market for a mortgage these days, one thing to be aware of that is a growing trend these days, and that is: Many banks are cutting out mortgage brokers altogether.  This video explains: (Runs 1:34)

If you need or want to find a mortgage broker, contact us. We'll be glad to help you locate a broker to assist you with your next mortgage.

Foreclosures Drop in May

The May foreclosure figures are just out, and the number of filings in the U.S. dropped 6%.  That means that 1 in every 398 homes received a foreclosure filing in May.  Once again, Nevada, California, Florida, and Arizona topped the list of states with the highest foreclosure rates — even though foreclosure filings were down 4.5% in California and 9% in Florida from April.

The drop in foreclosures should have plenty of people rubbing their eyes in disbelief.  Good news, really?  Could this be the beginning of the turnaround that so many homeowners have been hoping for?

While California based RealtyTrac reported the decrease, foreclosures remain at the third-highest level on record.  Economists warn that foreclosure activity is likely to remain high for some time, and still get worse.

Rising unemployment is becoming a major cause of foreclosures, which increasingly involve prime borrowers.  Job losses have pushed Utah, Idaho, Oregon, Illinois, and South Carolina up the list of the highest foreclosure rates.  More than 1.7 million homes have already been repossessed since the foreclosure crisis began.