Mortgage Rates Dip for 2nd Straight Week

30 year at 4.71% while 15 year hits 4.08%

As Treasury Yields fell for the 2nd straight week, so did mortgage rates. Rates on a 30 year mortgage are now around 4.71% which is a bit higher than a 40 year low of 4.17% reached back in November.

As some buyers remain on the sideline, the dip in rates has helped the refi market as it normally does.

For all of you who are thinking of buying but are somewhat hesitant, I mentioned back in November when rates hit record lows that then was the right time to buy. Well with property value bottoming out now and rates still attractive, you still have the opportunity to get a great deal on many properties that are on the market.

Even though rates are 1/2 point higher than the record lows, the fact remains that this is a great time to buy!

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Housing Market Showing Life. Pending Home Sales up 10.4% in October

Strength Shown in Many Areas Across the Country

According to the National Association of Realtors, Contract signings were up in every region of the Country except the West. The Northeast showed a 19.6% increase while the the Midwest was up 27.3% and the South jumped 7.1%. The West showed a decrease of 0.4%.

Overall the Nation showed a 10.4% increase.

The increase can be credited to a return of somewhat normal loan underwriting procedures as well as the removal of some uneccessary fees in the underwriting process, according to some economists.

This past June marked the lowest level for contracts signings on record. Pending sales are now 18.3% above those June levels but still remain 20.5% below where the were October of 2009.

Still, all in all this is good news considering that most economists expected pending home sale to show an overall decrease for October. Most homebuilder stocks surged after the report was released.

2.2% Decrease in Existing Home Sales for October

Housing Market Woes Continue

Tight lending restrictions and high unemployment as still affecting an already struggling housing market.

According to the National Association of Realtors, sales of existing homes fell 2.2% in October to a seasonally adjusted annual rate of 4.3mln units. The height of the Market was back in September 2005 with a peak of 7.25mln units sold. That is a decrease of 38.9% in the last 5 years.

The past July was the slowest pace for sales in the last 15 years. The market gained some momentum in August and September, but these latest numbers for October remind us that we are still not out of the woods.

Bond Buying Drives Mortgage Rates to New Lows

30 yr falls to 4.17%, lowest on records dating back to 1971

Since the Fed announced that it would be pouring $600bln into Bonds, mortgage rates have been doing what they are supposed to be doing, heading down again and touching new lows.

This week the Fed stated it would be aggressive over the next 30 days and pound in $105bln. The extra demand signals that the yield on treasury bonds will go lower and mortgage rates tend to track those yields.

Is 4% or lower for a 30 year mortgage finally possible? I guess we will see over the next 30 days.

If you are thinking about buying a new home or investment property, there has never been a better time to do so. These low rates combined with lower proeprty value create a unique opportunity to own a home for a lot less than you would have paid 3-4 years ago.

If you are on the fence and are afraid in this market, here is your push to get it done. Always remember Real Estate and owning a home is a long term investment. In the long term, the property will always be worth more than you paid.

Feds Bold Move to Boost The Economy. Commits to Buy $600bln in Bonds

Fed Looks to Further Lower Borrowing Costs

In what some are calling a risky move, The Federal Reserve has agreed to buy $600 billion in Government Bonds in a move to drive interest rates lower. Their hopes are to create jobs and boost the economy out of the funk it is still in.

Two ways to stimulate economic growth are to encourage people to spend money and increase hiring.

Many say the plan will provide the boost, but will not solve our problems.

There are several risks associated with this move too. Some of these risks include further weakening the dollar, creating price bubbles on stocks and commodities and driving inflation to dangerous levels.

Foreclosures in New York up 46% in Q3 2010

Most Cities are up YoY

According to a Report from Realty Trac, year over year foreclosure activity was up in 65% of all U.S Metro Areas including New York.

A total of 20,504 foreclosure filings on NY area properties were received. This includes notices of default, scheduled auctions and bank repossessions.

Even though filings were up 46% Q3 2010 vs Q3 2009, there was an 8% decrease in Q3 from Q2 this year.

Daren Blomquist, a spokesman for Realty Trac said New York has "avoided the worst of the foreclosure problems and continues to do so" despite the year over year increase in foreclosure activity.