RMLS™ JUNE STATS

Here’s our June 2009 RMLS™ market update.  GOOD NEWS!  Inventory levels are at 8.2 months (the fifth month in a row that our inventory has declined and the lowest since August 2007) which means prices should start stabilizing.  As I’ve stated in my weekly Tuesday Property Tour posts, I have noticed and reported that the new properties on tour have been decreasing over the last month or so.  There have been fewer properties on tour and in my Friday Price Reductions and Changes posts, I’ve indicated there have been more properties with price reductions or price changes lately as well.  For those of you “on the fence”, perhaps you’d better get off that fence soon!  As always, I’m here to help you find your dream home!

This Saturday, June 18’s post will have stats on Bank-Owned (Foreclosure) properties and next week I’ll dissect the RMLS™ June 2009 report with more Q2 stats and monthly stats as well!  You can follow me on Twitter @bettyjung to get the next day’s blog post topic.

OREGON FINANCING UPDATE

GUEST AUTHOR:

Bob Chiodo, CFP

Equity Home Mortgage, LLC

bobchiodo@equityhome.com

*Estimated rates for the week of July 14, 2009

• 30 year conforming=5.00 – 5.125
• 30 year jumbo=5.75 to $600k
• 7/1 ARM=4.875 – 5.125   conforming and jumbo
• FHA/VA=5.25 – 5.50
• OR VA=4.75 w/1.50 or 4.875 w/1.00

Rates are down a little from my last report. We even had a few days last week with rates under five! It didn’t last long but we are hoping that a new range is set – rates from 5.00 to 5.50. Based on the mixed economic data of late, many analysts are thinking that we’ll stay in the low five’s over the next month or so. No complaints here…..of course, market sentiment can  – and does – change very quickly.

In my last report I discussed the petition that is out there to reverse HVCC. If you haven’t signed it, please check the site out and add your signature. Here’s the site: http://www.hvccpetition.com/ There is no question that the intention of HVCC is good but the outcome hasn’t been. The process has slowed down transactions and appraisal fees have significantly increased. And, although the HVCC calls for portability of the appraisal, most lenders aren’t allowing it. That places a limit on brokers being able to shop a loan.

In addition to regular ‘forward’ mortgages, my firm and  I originate reverse mortgages. These products have also gone through a lot of changes recently. These are great products for the right people. There is a much improved fixed rate reverse mortgage on the market now. The rate is only 5.56% – this lower rate allows for more money to the borrower. And remember, reverse mortgages can be used for purchasing a home too.

Recently, FHA has announced some major changes in their condo approval process. These changes are effective in October. Looks like the spot approval process is going away. Also, the list that we use for approved condo’s is changing. It appears that anything on that list approved from October of 2008 is valid but all the others (and there is a lot of them) need to be approved again. When this occurs, we will all have to recognize the additional time and expense in getting the projects re-approved.

Speaking of changes, Freddie Mac just posted a bulletin last Friday which will significantly change some of their underwriting guidelines. Given the market that we are in, these changes aren’t designed to loosen up things. Although these changes are mostly effective for applications dated October 1, 2009, lenders are recommended to begin implementing these changes immediately. I’ll update you on the significant changes as we become more familiar with them. Why do I think we will see a similar memo from Fannie Mae? Thank goodness we are all adjusting very well to change. I think, in a past report, that I said that we need to embrace change instead of fighting it. Isn’t it great that we have so much to embrace!

With all of the changes coming along, I would think that those buyers that are still on the sidelines would want to take advantage of the current market. Rates won’t hold at this level for that long and we have just a few months until the first time buyer credit expires.

Have a great week!

*Rates quoted are for the use of Realtors® and others in the real estate/financial service industries. They are not meant to be a quote for an individual situation. Rates change daily and those above are only listed to assist market participants by keeping them informed of current interest rates. Credit scores, down payment, and other risk related issues may change the rate. Quotes are usually shown for a 30 day lock period and a 1% origination or discount fee.

© Copyright 2008-2009 Betty Jung.  All Rights Reserved.  Use of this article, photos and images without permission is a violation of federal copyright laws.

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