30 Yr Fixed – 5.00% (1 point) / 5.25%(0 points)

15 Yr Fixed – 4.375% (1 point) / 4.625% (0 points)

FHA – 5% (1 point) / 5.75% (0 points)

Investment – 5.375% (1 point) / 5.75% (0 points) – at least 25% down payment required

*Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA) *Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply

“I DON’T KNOW WHY I GO TO EXTREMES.”  Billy Joel. Last week, Bonds went to the extremes of their trading range, battling tough layers of technical resistance as they attempted to improve. Let’s take a closer look, and understand the news of the week.

There was good news on the inflation front as the Federal Reserve’s preferred inflation gauge, the Core Personal Consumption Expenditure Index (PCE), indicated that inflation remained tame last month. Generally tame inflation is a good sign for Bonds – but there is still concern, as inflation is certainly coming…it’s just a matter of when.

Keep in mind that some of the current buyers are adding a bit of what may be an artificial boost to the housing numbers, as they normally would have purchased in 2010 but have moved up their buying decisions to take advantage of tax credits and historically low rates. Let me know if you would like more information on these time-sensitive tax credits.

Remember, positive economic news typically causes money to flow from Bonds to Stocks, causing Bonds and home loan rates to worsen. However, even with the pressure of more supply from last week’s Treasury auctions, Bonds and home loan rates were able to hold on to some improvements and end the week very slightly better than where they began.

Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

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Carina Marchese
Center City Mortgage
267.238.5785

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Todays Mortgage Rates:

30 Yr Fixed – 5.125% (1 point) / 5.375%(0 points)

15 Yr Fixed – 4.375% (1 point) / 4.75% (0 points)

FHA – 5% (1 point) / 5.25% (0 points)

Investment – 5.5% (1 point) / 5.845% (0 points) – 25% down payment required

*Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA) *Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply

Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

APPLY FOR A MORTGAGE ONLINE

Brought to you by our favorite mortgage broker:

Carina Marchese
Center City Mortgage
267.238.5785

email Carina for today’s rate

Philadelphia housing grew in value, but avoided large swings in times of excess and stress.

Forbes magazine has named Philadelphia one of America’s Best Long-Term Housing Bets. In a recent article listing the top 10 markets least likely to overheat and bust and the most likely to have vibrant economies moving forward, ranked Philadelphia as the 4th best place to buy a house in the U.S.

Philly housing is far less volatile when it comes to building and vacancy spikes in tough economic times. There’s just less room to grow and few laws that make it easy to do so. In these markets, building activity doesn’t rise as hastily during national booms, and, as a result, doesn’t crash as dramatically during slowdowns (based on historical volatility and current market conditions).

Even Philly’s suburbs, especially those on the Main Line, are carefully zoned and have resisted development. That means a tight supply. Because there isn’t an excess of new homes, Philadelphia has the nation’s third lowest vacancy volatility.

Methodology: Forbes.com evaluated the country’s 40 largest Census-defined metro areas using the last 25 years of NAHB data. They examined new construction and vacancy rates to calculate historical fluctuations in supply and demand against national averages. Moody’s Economy.com provided job-growth forecasts through 2017.

Potentially Related Posts:

Philadelphia Housing Market is Still Outperforming
Philly Scores: Great Place to Buy Real Estate

Technorati: philly real estate, philly housing, top real estate markets

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The Not So Good:

Going, Going, Gone

The Housing Stimulus Bill  H.R. 3221 (pdf) isn’t all good news, buried deep on page 690 of the 694-page law is an important change to the Capital Gains Exclusion rule that could cost home sellers across the country.

• The $250,000/$500,000 exclusion of gain on the sale of a principal residence is modified beginning in 2009, the exclusion, as it applies to a second home (or rental property) that is converted to a principal residence will be allocated. When the second home is sold, any gain attributable to use as a second home (or rental property) will be taxed at capital gains rates. Any gain attributable to use as a principal residence will remain excludable, up to the $250,000 and $500,000 limits. View some examples that illustrate the application of this new rule.

The Good:

• $7500 home buyer tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

• Conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

• Provides $4 billion in neighborhood revitalization funds for local communities to purchase foreclosed homes.

• Expansion of the FHA to develop a refinance program for home buyers with problematic sub-prime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

 This is a very readable summary:  Housing and Economic Recovery Act of 2008 (pdf)

 Usual disclaimer: I am not an accountant if you need advice speak to a tax professional.

Technorati: HR 3221, capitol gains exclusion, Phila real estate, rental property

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

The real estate search site Trulia has released a survey suggesting that most Americans are uncomfortable with the idea of buying a foreclosed home.The survey found that about half of buyers would consider looking at a foreclosed property but two-thirds conceded they felt there were “negative aspects” related to such a purchase, including hidden costs, the possibility its value would decline and other risks.

Other findings from the survey showed:

Single/never married adults (60%) are more likely to consider purchasing a foreclosure versus married (50%) or divorced/separated/widowed adults (50%).

Males are more likely to purchase a foreclosure compared to females (57% versus 51%).

Younger adults (18-34) are more than twice as likely to purchase a foreclosed home than adults 55 and older (69% versus 32%).

20% of adults said that having a personal connection with someone who lost their home to foreclosure is a negative aspect of purchasing a foreclosed home.

As experienced real estate agents we also know that the addenda required by lenders are often minefields and shift the burden of risk for buying a foreclosure to the buyer. Most addendums are all about the “As Is”, if a buyer is not interested in buying a property “As Is” they should not be looking at foreclosures. Banks rarely make repairs and buyers need to negotiate a price based on present condition and market values.

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Technorati: Philadelphia foreclosures, Philadelphia housing market, Philadelphia housing statistics

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!