Central Ohio Lenders: What's going on this week? Where are the interest rates now? Where are they headed? Any new programs that you are offering to Central Ohio home buyers?
I read on Bankrate.com that their experts are split:
"This week (Aug. 30 - Sept. 7) the experts say: It's almost an even split, with a slight edge to the probability of rates increasing or staying the same."
I read in Rismedia earlier this week that there are less adjustable rate mortgages than in the last couple of years. Is that true in our market? Are buyers going with fixed rates now?
"Mortgage risk levels have moderated over the last six months because of more stringent lending policies, and the use of adjustable rate loans is now at its lowest point since February 2004, according to two reports. "
It is good luck for Rabbit, Rabbit, Rabbit* to be the first thing you say in a new month. That rabbit is multiplying...
Aug. 31, 2006 - re: Finance Friday - September 1, 2006
Posted by Anonymous
here's alot of excitement about FHA's rehab loan, known by its section number, 203k. Up to $35,000 can be built into the FHA 203k loan amount to cover repairs/improvements to real estate.
--If you own a home and you would like to spruce up a bit (no moving of walls unfortunately!) or you have upcoming maintenance issues (need a new roof, seal basement walls) this might be a way to get the money you will need.
--If you are looking at a new home, love the location, but it's not exactly what you were hoping for inside, consider purchasing w/ this type of FHA loan. You have the ability to change color, upgrade appliances, fixtures
Jamie L Sutton
Home Loan Consultant
Countrywide Home Loans
500 W. Wilson Bridge Road, Suite 312
Worthington, OH 43085
Thanks for the comment Jamie. I have recommended this loan to buyers but they seem reluctant to do a 203K because it is FHA? Red tape? Have a great Labor Day weekend.
Maureen
Edited by Maureen on September 1, 2006 at 12:52 pm
This Month in the Housing Market
By John Augustine, Chief Investment Strategist
Fifth Third Asset Management
Housing market trends continue to be a challenge for the economy (…and for many sellers). During the second quarter, fixed residential investment (single family and multi-family dwellings) delivered a 6.3% decline in its annualized growth rate – which is the biggest decline since the third quarter of 2000.
The housing indicators that we track report as follows:
Sales of Existing Homes declined to 6.62 million annualized units in June, which was 1.3% below the prior month and was 4% behind the 12-month average.
Median Existing Single-Family home price is growing only 1% YoY in June, after gaining 12% on average in 2005.
New Home Sales declined to 1.13 million annualized units in June, which is a decline of 3% MoM and 11% YoY.
Inventory of Unsold Homes reached a record 566,000 units in June – a record. In addition, the months of inventory increased to 6.1, compared with 3.9 a year ago.
Housing Starts decreased 2.5% MoM in June to 1.795 million annualized units, which is 13% below a year ago.
Weekly Mortgage Applications Survey Index stayed about the same from June 30th – at 561.0 – to 561.2 in mid-August – with the majority of the activity being refinancing.
The housing market continues to demonstrate a slowing from abnormally high activity over the past couple of years – associated with very low mortgage rates. So far, the data indicate that the majority of the slowdown seems to be centered in the West, Northeast and South – which were the areas that saw the biggest increases in activity and prices. In addition, the downturn in condominiums seems to be harsher than single-family homes in these areas – given that this is where many of the short-term housing investors were located.
One piece of good news for the housing market is the presence of lower long-term bond yields. This could help spur more activity in housing market via more attractive fixed mortgages, and could aid an eventual stabilization. The trend is favorable, and the Fed is potentially at a pause, but no one is sure how much froth continues to need to come out of various geographic areas that saw such run-up in housing prices over the past few years.
100% Mortgages Now Available with Virtually
No Restrictions
"No down payment." We already buy cars, furniture and appliances like that. And now Fifth Third Bank is helping to add houses to that list.
Fifth Third Bank has just introduced its exciting new 100% mortgage loan available in September. Homebuyers can finance the entire purchase price with, you guessed it, no money down. And unlike other 100% mortgages, this one has absolutely no local geographic restrictions and no minimum income criteria. And this is a true 100% mortgage; there is no piggyback second mortgage required. Perhaps even more impressive is that Fifth Third will even pay the private mortgage insurance for the borrower.
This mortgage loan is expected to be very popular with those who either lack the funds for a down payment or those who choose not to tie up their cash in their home. It's available on 1-unit owner-occupied homes of up to $417,000. A minimum of just $500 is required from the borrower's own funds. It's available in several different variations, including 15, 20 and 30 years fixed loans as well as 5/1 and 7/1 ARMs.
Call me about our full line of mortgage products!
RICK DOMKA
FIFTH THIRD BANK
(614) 932-5464
Rick thanks for the comment from Fifth Third. Have a great loooooong weekend.
Maureen
Edited by Maureen on September 1, 2006 at 12:53 pm
Friday: 09/01/06 10:30 AM EDT : Treasuries are lower this morning as traders take back some recent profits now that August's end-of-month buying is over. The stock indices are currently ahead but off their opening highs. Bond trading is likely to be erratic as the economic news of the day sent mixed signals and the market will be closing early (2:00 PM EDT) ahead of the long, holiday weekend.
The usually influential employment report was released this morning but the key numbers were generally in line with expectations. Nonfarm payrolls rose by 128,000 in August, a touch over the consensus forecasts for 125,000. July's originally reported increase of 113,000 was revised up to 121,000. In the goods producing sector, construction payrolls grew by 17,000 while manufacturing payrolls declined by 11,000. In the services sector, education and health payrolls saw the biggest advance, rising by 60,000. Retail trade was the weakest category with job losses of 13,500.
The report said that the unemployment rate, the portion of the active workforce without jobs, fell to 4.7% from 4.8%. This was also expected. A market-friendly detail in the report was a mild, 0.1% increase in average hourly wages following a 0.5% rise in July and a 0.4% increase in June.
In the other first-tier release of the day, the Institute for Supply Management (ISM) said that its index on the nation's manufacturing sector came in at 54.5 for August, down slightly from July's reading of 54.7. Any reading over 50.0 indicates an expansion of activity relative to the preceding month and the data series has not reflected a contraction since April of 2003. But, once again, most predictions had called for little change and a number were looking for an even stronger reading. Moreover, the report revealed that the prices paid index fell to 73.0 from 78.5. Though still a strong index, this inflation indicator was the lowest in four months and the decline was the largest since last December.
Another economic release that was actually bond-friendly (bearish) was the report on construction spending for July. It said the seasonally adjusted, annualized pace of spending fell by 1.2%, the biggest drop in two years. Of particular note was a 2.1% drop in the pace of spending in the residential construction category. This was a fourth consecutive monthly decline, the largest in two years, and the spending rate was the lowest since April of 2005.
The remaining economic item of the day was less friendly for bonds. According to news sources, the final read for the month on consumer sentiment from the University of Michigan produced an overall index of 82.0. This was up from the preliminary reading of 78.7 and surprised analysts who were predicting little change. But, while stronger than expected, the index was still below July's final reading of 84.7 and the lowest reading in three months. Strength came in consumers' assessments of current conditions, the index for which rose to 103.8 from the preliminary level of 100.8 and from July's final reading of 103.5. The expectations index improved from the preliminary reading, rising to 68.0 from 64.5, but it was still below July's 72.5.
**********
Layman’s Interpretation: mixed economic releases (some good, some bad) have resulted in rates staying just about the same as they were at the beginning of the week.
**********
Current Rates:
Loan Type
Conforming (to $417,000)
Jumbo (over $417,000)
30-year fixed
6.125%/6.171%APR
6.500%/6.546%APR
15-year fixed
6.000%/6.074%APR
6.375%/6.450%APR
5/1 ARM
5.875%/7.109%APR
5.875%/7.109%APR
3/1 ARM
5.750%/7.310%APR
5.750%/7.310%APR
Above rates are with zero points, zero origination fee and ~$1,900 in closing costs. Jumbo fixed rates have free escrow waiver.
Please call me for details!
Mary Ann WardHomestead Mortgage Company 8001 Ravines Edge Court, Suite 302 Columbus OH 43235 614.885.6336 phone 614.436.2021 fax maryann@homesteadmc.com
Thanks for the comment Mary Ann. Have a great weekend! Maureen
Edited by Maureen on September 1, 2006 at 12:50 pm
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Thanks for the comment Jamie. I have recommended this loan to buyers but they seem reluctant to do a 203K because it is FHA? Red tape? Have a great Labor Day weekend. 
