Timing is everything in the real estate market.  Mortgage rates are near a low in 2010 and NOW is a great time to inquire about a possible refinance.  The federal government’s mortgage backed securities purchase program ended on March 31st, but since then we have seen private and foreign investors move into the US bond market as “safe haven” buying takes place.  With so much turmoil in the eurozone countries such as Greece and Germany are moving investments into a “safer” place (i.e. US bond market).  As the bond market benefits, you as a homeowner or potential homeowner can also benefit from the result of lower mortgage rates.

By now I’m sure you have heard rates have been low and may have even heard they have began to take a turn to rise.  Watching mortgage rates on a daily basis can be like riding the California Screamin’ roller coaster at Disneyland.  The volatility makes it even more important for you to have a trusted and educated resource in the mortgage world.  Currently we are in the sub-5% range on a 30 year fixed conforming or FHA loan.  If you have a mortgage in the 5.5%-6% range, it may be worth your time to give me a call (503.585.1105) or shoot me an email to talk about a potential refinance opportunity.

If you did not take advantage of the extremely low rates in 2009 or did not have the ability to, now may be your chance.  The rates change daily (and sometimes 3-4 times a day), so please take the 4-5 minutes it takes to call me and go over your potential opportunity before we see the rates fade away.

Summer is off to a quick start this year.  The calendar page hadn’t even turned to June and we’ve had several days in the 80′s.  With the clouds away for a few months now is a great time to begin searching for a home if you’re thinking about purchasing.  As previously mentioned in my First Time Homebuyer Tax Credit post, the Federal Government is now offering an $8,000 first time homebuyer tax credit.  The tax credit is literally free money people!  A first time homebuyer is defined as someone who has not owned a home in the past 3 years.  If you don’t meet this qualification, I’m sure you know someone who does.

Here are some great reason to buy in 2009

Historically low interest rates: Despite what you may have heard in recent weeks, mortgage rates are still at all time lows.  Mortgage rates below 6% only come around every 10 years or so.  To see them in the sub-5% range is even more of a rarity.  First time homebuyers can fit a larger purchase price into their personal budget when interest rates are low.

Historically low home prices: We are definitely beginning to see a great amount of movement of home purchases in the Willamette Valley this year, but we are still have plenty of homeowners with the need to sell.  The inventory of homes on the market is greater than ever which makes it a perfect buyer’s market.

Loan programs designed for first time homebuyers: There are several programs that have been designed and adjusted for first time homebuyers (although they are not necessarily exclusive for first time homebuyers).  The FHA home loan program only requires a down payment of 3.5%.  FHA also offers a rehabilitation home loan which allows borrowers to finance up to $35,000 of improvements.

Free money: The $8,000 first time homebuyer tax credit is definitely a once in a life time opportunity.  The tax credit is only available for those who purchase before November 30th, 2009.  There are a few important steps to buying your first home, so it’s best to get prequalified now to know if you can take advantage of this amazing opportunity.

If you want to discuss how you can take advantage of this market then contact me today.  If you don’t qualify as a first time hombuyer i’m sure you have friends or family who do and should get the education they need to learn about this epic time.

Today the Federal Open Market Committee adjourned their meeting without a change in interest rates.  The primary focus of Chairman Ben Bernanke was on the need to resuscitate our private credit markets.  The Feds announced that they are prepared to buy long term treasuries if the credit trend continues to be tight in the market.

With so much attention to mortgage rates with recent refinance inquiries and now with increasing purchase activity, banks are exercising the law of supply and demand.  Currently the Fannie Mae 30 year fixed coupon rate is trading in such a fashion that mortgage rates should be near 4.5%.  However, due to the slow banking inquiries over the past 24 months many banks and lenders have downsized their operations to stay afloat.  With a surge in new applications the pipelines are full and the banks are holding rates slightly higher so they can manage the current loans in process.  The capacity of the lenders should be eased in the coming week or weeks as these loans begin to clear the temporary warehouse lines.

Stay tuned and be prepared if you have not already began the refinance process.  It is best to know you current situation and get your loan application started so when the desired rate is available you can grab it before it’s gone!

Call me at 503.798.9183 or email me by clicking on my name –> Conrad Venti.

Happy New Year!  I have to apologize for not posting for a little over a week.  The past month has been, well, hectic.  Hectic, however, in a great way.  30 year fixed mortgage rates are the lowest they’ve been in years and have stayed low for several weeks.  There has been a surge of refinance transactions in my office.  We’re thankful for the business, but we’re even more thankful that the rates have been somewhat consistently low for a few weeks.  Of course I’m thankful for the opportunity to help those who need to refinance save money on interest, but I’m more thankful that we’re starting to see those who are prepared to purchase begin to make decision on homes because they are now a little more affordable.

Now is an amazing opportunity to purchase a home.  If you are even thinking about buying a home it’s important to figure out your current financial position.  If you’re a first time home buyer preparation for home ownership is vital.  If you’re ready to move onto your second home, you need to learn the recent changes in mortgage down payment requirements.  If you’re thinking about buying a rental or investment property, you need to learn the changes in investment financing requirements.

With rates low, now is the time to begin the inquiries.  If you haven’t already been educated on your possible real estate transactions and are thinking about making a move in the near future, give me a call and prepare yourself to take advantage of our current market!

Today the Federal Open Market Committee (FOMC) adjourned their two day meeting with a reduction in the Fed Fund rate.  The prime interest rate, which is the primary factor that determines home equity loans, consumer credit cards, etc will likely follow tomorrow coming down to 3.25%.

Thus far in 2008 we’ve seen the prime rate drop several times, unfortunately each resulting in slightly higher mortgage rates.  The trend for rates to increase is usually temporary, but it’s important to note the reduction in the prime interest rate does not mean a reduction in the 30 year fixed mortgage rate. However, in today’s economic environment, it is very difficult to determine what the “normal” reaction is to anything.  This afternoon mortgage rates held steady at morning levels and the bond market finished in positive territory which may indicate lower rates on Wednesday.

The announcement by the FOMC did include the key statement that it will use “all available tools” to generate a resumption in growth.  This positive statement is likely the factor driving the bond market to finish in positive territory.

With so many variables in the rate envrionment today, it is most important to be prepared.  As I wrote last week, now is the time to make a move if you’re thinking you need to refinance or if you’re shopping for a loan.  Don’t forget, opportunities are never lost…someone will take the ones you miss!

On November 26th I mentioned in my post that Treasury Secretary Henry Paulson made an announcement that the Treasury would buy additional mortgage backed securities from GSEs (Fannie Mae and Freddie Mac).  To read more about that article click on Help For Main Street. As we’ve heard several announcements about help for our economy over that last 6 months, my main focus of Help For Main Street was the lasting affect of the announcement.  With recent announcements we’ve seen pockets of opportunities, not lasting for more than a day or two.

Today, Thursday December 11th, 15 days later, we’re still seeing the benefits of the help from the Treasury.  Mortgage rates have dropped to a four year low.  We’ve seen the 30 year fixed no higher than 5.5% (5.625% APR) since the announcement.  There has been a few days in the past two weeks when rates have dropped as low as 5% (5.126% APR).

The future of the mortgage market and Treasury announcements is unpredictible, thus making it important to be prepared to make a move now or to be prepared to make a move when it is necessary for your individual situation.  The key to taking advantage of this amazing opportunity of low mortgage rates is preparation and education.  If you are thinking about purchasing a house, these lower rates may help you afford more or make the price range you were thinking about more affordable.  If you currently own a home and pay more than 6% on your mortgage, it is definitely worth inquiring about the possibility of refinancing.

To contact me today feel free to email me or call my direct line at 503.798.9183.

Many of you heard that mortgage rates were good last week.  Many of you also heard that rates may go even lower.  The fact is that last week rates were great and today the trend has followed through on this chilly Monday morning.  Rates actually held a trend around or below 5.5% for the better part of 7 working days.  In the recent market a steady trend of anything is unexpected.  The announcement of the Treasury willing to buy additional mortgage backed securities was the cause of our low trends.  The short term future of rates is still something that cannot nor should be forecasted.  The market doesn’t allow us to follow traditional trends and driving indicators of where rates will go.  With that said, it is better to take advantage of an opportunity of already low rates when you can rather than waiting for something that may never happen.

Great prices, yes, I say great prices.  As I’ve said numerous times, we’re fortunate to live in the Willamette Valley where we haven’t seen too drastic of a drop in home values.  However, there is enough inventory currently on the market to offer an amazing opportunity for anyone thinking about buying a home (regardless of whether you are a first time home buyer or a seasoned veteran).

The key to success in this market is understanding that now is the time to take advantage of each of these opportunities at hand.  If you wait for the rates to drop even lower or the prices to fall even more, you’re likely to miss the boat.

If you need help finding the starting point call or email conrad(at)conradventi.com today.

Today the Federal Reserve, the European Central Bank, the Bank of England, and the Swiss national bank announced they will lend an unlimited amount of funds to commercial banks in an effort to revive the financial markets worldwide.  The Feds lead the way in the unprecedented event that backs the governments recent intervention.

In response to the central banking announcement the Dow rebounded with an advance of 936 points, the largest gain in 70 years.  The gain marked a sign of confidence in our financial system.  A single positive day does not prove a total revival coming in our market by any means, but investors have some hope in sight after an advance of this margin.

The week ahead will prove to make history yet again.