When it comes to foreclosures and the housing market's recovery, everyone has a different answer, and no one seems sure of where things are headed. Part of the confusion is due to the wildly divergent foreclosure time line across the country, and their impact on regional markets and recoveries. According to Lender Processing Services (LPS), the national average 'time to foreclosure' is currently 674 days, up from 253 just a few years ago. However, that number belies the sharp contrast between states that process foreclosures through the judicial system, and those that don't. Want a quick, but potentially volatile recovery? States utilizing the non-judicial format (most of the western states) are able to process quicker (less than 200 days in Arizona, Oregon, Washington), but have seen deeper drops in home values over the past year due to the increased supply. For instance, Nevada saw a near-20% drop in home values this past year. On the other hand, Florida, which takes an average of 1,027 days to foreclose (remember: that's an average of 3 years) experienced just a 2.8% dip in values in 2011. However, their recovery, as will other states under a judicial system, will most likely take much longer to materialize as homes will be kept off the market while undergoing the foreclosure process. The bottom line number to keep an eye on is "foreclosure inventory" - the rate in non-judicial states was more than 6%, while the judicial states saw a rate of less than 3%.
Turning to interest rates, they have been creeping higher this week. Yesterday we saw a few intra-day rate sheet price changes. Although the Fed continues to buy about $1.2 billion a day of Mortgage Backed Securities. Yesterday's strong Jobless Claims started things off (reminding us that a growing economy tends to push rates higher),single-family housing starts are picking up, home builder sentiment is improving, and by the end of the day 10-year T-notes were worse by almost .75 in price (1.97%) and current coupon mortgage security prices were worse .250.
30 year fixed - 4.250% 0 points for rate
20 year fixed - 3.875% 0 points for rate
15 year fixed - 3.250% 0 points for rate
10 year fixed - 3.250% + 1.00 lender credit points for rate
5/1 ARM - 2.50 % 0 points for rate
7/1 ARM - 3.00% + 0 points for rate
FHA/VA
30 year fixed - 4.250% + 0 points for rate
5/1 ARM - 2.75+ 0 points for rate
7/1 ARM - 3.250 + 0 point for rate
Jumbo - over 729,000 up to 2,000,000 with 20% down on purchase
30 year fixed - 4.750 % with 0 points for rate
15 year fixed - 4.375 % + 0 points for rate
5/1 ARM - 3.250 % + 0 points for rate
7/1 ARM - 3.375% + 0 points for rate
10/1 ARM - 4.375% with + 0 points cost for rate
Jennifer Buchanan, Certified Mortgage Planning Specialist at MetLife Loans is a seasoned veteran of the Mortgage, Banking and Broker Industry and specializes in mortgage loans throughout Fairfield County, Connecticut.
Her attention to detail is unsurpassed, and her understanding of the marketplace makes it easy to find the right loan to fit her clients specific needs . Jennifer's local processing and closing team are also known for their exemplary service.
Understanding that the vast majority of mortgage brokers never discuss the long or short term financial needs or goals with their clients, she set herself apart from the rest by obtaining the coveted CMPS designation. (Certified Mortgage Planning Specialist)
She is a member of the National Association of Responsible Loan Officers, and her commitment to ethics, understanding of the marketplace, and business acumen have earned her the respect of her peers and clients alike.
Jennifer Buchanan
Metlife Loans
203-341-6949
Jennifer Buchanan- Your certified expert
on mortgages offering Free Unbiased
recommendations based on your needs.
A note from Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.