Hi Friends!
This is your Hard Money Lender in Tucson and the Southern Arizona area, Billy A, with Real Estate news from my friend here in Tucson, Clayton Farnsworth, of Farnsworth Realty. Here are a few of the main headlines:
Interest Rates
The FED’s QE3 announcement means that they will be buying a large amount of bonds which are the key element in setting mortgage rates. As soon as the announcement was made interest rates dropped to 3-3/8% for a thirty year fixed rate mortgage. That should create a new round of increased sales and hopefully some more price gains.
The FED also announced that they plan to buy bonds at a high level for at least six months. Interest rates should stay low as long as they are buying.
Clayton’s son Brandon works for Flagstar Mortgage. He says that even if you are upside down you can get refinanced. They are doing refinances apparently with no appraisals and no work history. You do need to be current on the home payments for the last 12 months. He told us about a piano teacher who makes $450 a month and got a $200,000 loan refinanced.
Several of the main mortgage backers like FHA, FNMA and Freddie Mac are considering reducing or removing pre-qualify criteria regarding short sales and foreclosures on buyers. I think this is good news because these people are currently being knocked out of the market. In Tucson 50% of home buyers owe more than what their home is worth. If they sell or foreclose they would not be able to purchase another home for 2-7 years. Right now we need more buyers.
Tucson Market News
Around 1100 homes a month are selling with about 3500 active listings. That means 30% of actives are selling each month; a very high percentage and should lead to price gains. So far this year prices are up about 5-7% depending where you live. This is the lowest number of active listings in years.
Other Important News
We still aren’t having a lot of luck getting short sales through the lenders. Citibank is the worst. But many lenders aren’t too far behind. Best scenario is that you have one loan. If the mortgage is current they will not do a short sale on FNMA or FREDDIE MAC loans it appears. Rumor has it that may be changing.
We’ll keep you posted on these rumors and changes as we find out. In the meantime, thanks to my friend Clayton, for sharing this valuable information. That’s it for now! Make it another great day!
Your Hard Money Lender in Tucson and Southern Arizona,
Billy A
P.S. I want to be your favorite Hard Money Lender in Tucson and Southern Arizona, so please don’t keep me a secret! If you, your friends or family need help with funding, I’d be happy to give them free information without any obligation. Please give me a call at:
(520) 299-4878!
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