Mortgage News and Updates

2/2/2009: Freddie Mac reported a drop in the 30-year fixed mortgage rate to 5.10 %during the week ended Jan. 29 2009 from 5.12 % the previous week. The 15-year fixed rate has remained constant at 4.80 %. Continued HERE

The interest on a once popular five-year adjustable-rate mortgage increased to 5.27 % from 5.24 %; and the one-year ARM dropped slightly to 4.92 percent from 4.90 percent.

[SOURCES: Freddie Mac; Information, Inc.]

Freddie Mac reportec that the 30-year fixed mortgage rate fell from around 5.01% to 4.96% for the week ended Jan. 15 2009.This the 11th straight weekly decline.

During the same period, the 15-year fixed mortgage rate increased slightly to 4.65% from 4.62%. The five-year adjustable mortgage rate fell marginally to a three-year low of 5.25%. The one-year ARM also dropped to 4.89 % from 4.95%.

[SOURCES: Freddie Mac; Information, Inc.]

The movement away from investing in the stock market has resulted in a larger number of cash buyers in the recent months. parents who are helping their kids through the mortgage crisis have been investing heavingly in real estate with cash purchases and significant cash down payments.

I personally have two clients that are looking to invest their money in their next home and will be paying cash probably in excess of two million dollars. Another client has finally sold their house which has enabled them to command the driving seat in negotiations to buy as they now have no financial contingencies or sale of home contingencies. Its now a case of "deal or no deal!"

One of the newest agents on the team, Bridgette Chamberlain, has already had 3 clients making offers on homes. Even in a regular market this would be an impressive feat. The fact that Bridgette has done so well in such a short space of time and in a down market is a testament to the professional standards she has held herself to." says Gary Ashton of the Ashton Real Estate Group of RE/MAX Elite.

Now the election is over it seems that buyers are waiting to see what the new President Obama will do with regards to stimulating the economy and perhaps adding new incentives for home buyers to kick start the national real estate market.

The longer the market sits in a state of flux the bigger the opportunities for the home buyers that do not have any of the traditional contingencies such as sale of their current home. Cash buyers are really in the driving seat and with the help of the realtors with the Ashton Real Estate Group we can really help negotiate some big reductions in sales prices.