Mortgage Up-Date Report Affecting Oregon Home Buyers
Mortgage News
“Volatility”, is the not-so-secret word for today. With 
everything the Federal Gov't is trying to do to stimulate the economy and control inflation, it's not surprising that the markets and rates are on that virtual roller coaster. The first effects of any one stimuli will most likely not hit at the same time as any other, and likewise the end result of all these things will not be known for many many months. Therefore, we all just try to work within, and enjoy, whatever short periods of calm may come about.
A more important piece of information that I'll pass on is this; the Oregon Bond program has suspended it's “Cash Advantage” product as of 12:01 am March 26th. This product allowed the buyer to utilize 100% financing, and provided 3% of the purchase price to go toward closing costs, or it could be used for the 3% FHA required down payment. It's suspended until further notice, due to the volatility in the bond market, and the reluctance of investors to put their funds into mortgage revenue bonds (MRBs). These bonds are the main source of funds for state and local housing assistance programs.
The Oregon Bond's other product, the “Rate Advantage” program is still in effect, however the rates have gone up considerably, and the Mortgage Insurance guidelines have significant changes taking effect on 4/14/08, which will make the Oregon Bond much less attractive than it has been in the past.
The following rates are based on 30 day locks with no discount points, as of this morning. They are not come ons, they are the rates your buyers will most likely get from a reputable lender, regardless of what is advertised. Certainly there are other specialized programs available, depending on the qualifications of the buyer.
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30 year fixed conforming = |
6.000% |
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15 year = |
5.500% |
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3/1 ARM = |
5.625% |
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5/1 ARM = |
5.875% |
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Jumbo fixed = |
7.125% |
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Jumbo ARM = |
6.750% |
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FHA/VA 30 year fixed = |
5.750% |
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Prime rate is currently = |
5.250% |
Authored by Lorin Wamsley, CMPS - Senior Mortgage Consultant, Precision Funding
Dennis Pease - RE/MAX Integrity Broker invites you to see more Florence Oregon Real Estate information and All the Area Real Estate Listings .
Date: Friday, March, 28th 2008 @ 07:38:44 PMViews: 155
This blog entry currently has 5 comments posted.
Michael Oliver
Mortgages as everyone knows are going to be harder and harder to get. In Tucson AZ we are seeing massive foreclosure properties and it is putting incredible downward pressure on prices. Luckly in OR I dont believe home prices went on the rocketship ride they did here.
Dennis Pease
Michael,
You are correct, we didn't see the wild real estate boom in most of Oregon and we are not seeing the massive foreclosures. Of course we are seeing some but the prices have remained fairly steady in some areas and declined some in other areas, but nothing like the falling prices you are seeing there or California, Nevada, Florida, etc.
The mortgage mess affects the whole country though as it is making it tougher to get loans for good qualified buyers and many people with more marginal credit or income either can not get loans or they are quoted very high interest rates.
mortgage-calgary
I'd be interested to hear your opinion on when you think the market might begin to make a recovery, or at least make some improvements. Or do you think we have a long ways to go still?
Mortgage Calgary
Michael,
In Canada we hear a lot about how cheap real estate is in Arizona. With how well the Canadian dollar has been performing, houses in AZ are a real bargain for Canadians. Perhaps that could be a good niche for agents in such a tough market.
Dennis Pease
Recovery? I don't see in the near future. As you know since you are in the business, loan programs are changing nearly daily. I believe money will continue to get tighter making loans harder to get for people with marginal credit or self employed. At the same time homes are still selling fairly well in our area and I think with low interest rates and money getting harder to get this is a good time for buyers to negotiate a good price on a home. We have a good size inventory of homes for sale and many motivated sellers.
We are not seeing the massive foreclosures like in some parts of the country and our prices are holding fairly well. I think the key for buyers is to hire an agent to aggressively negotiate the best price and terms and help them get a good loan while they are still available.
Because my website brings more buyers than sellers I have been helping buyers really get some nice deals. So since we can't change the market, we make the best of it.