08.07.08

Interest Rates on Rise

Posted in Mortgage News at 1:47 pm by Administrator

Interest Rates on home loans are on the rise and have been for the past year. Many homeowners that were trying to “time the market” are now finding that they made a bad trade. Interest Rates dipped in early February on long term fixed rates such as a 30 year fixed but have steadily been rising since. The rates have scaled back a bit this week but the long term trend is up and many experts say that this will continue as inflation continues to be an issue. Long term interest rates tend to follow inflation and if that proves true, interest rates are going to continue rising over the next couple years. The average rates this past week on a 30 year fixed were 6.52% per Freddie Mac and 6.07% on a 15 year fixed.

American Housing Rescue and Foreclosure Prevention Act

Posted in Foreclosures at 1:31 pm by Administrator

The American Housing Rescue and Foreclosure Prevention Act (H.R. 3221) was signed by the president last week and helps homeowners that are in foreclosure stay in there homes and also gives incentive for first time homebuyers to purchase now. The legislation gives first time homebuyers a refundable tax credit that works like an interest-free loan of up to $7,500 (to be paid back over 15 years). The credit will begin to phase out for taxpayers with adjusted gross income in excess of $70,000 ($140,000 in the case of a joint return). This part of the legislation is an effort by Congress, the Senate, and the president to spur purchasing and help stabilize a declining Real Estate market.