Brian Vanderhoff's North Fulton Real Estate Blog

Looking for Atlanta real estate? Well you may just be in luck. Not only are home prices low, but fixed mortgage rates continue to fall. Last week Freddie Mac reported that the average rate for 30-year fixed mortgages fell to 4.12; the lowest level in three decades. The average rate on 15-year mortgages fell to 3.33, the lowest level on records and probably the lowest level ever, according to experts.

Unfortunately, experts also aren’t expecting these all-time low rates to get Americans to purchase new homes and revive the real estate market, and the overall economy. Even with mortgage rates below 5% over the past year, it is predicted that this year’s new home sales will be the worst in close to 50 years and resales will be the worst in 14 years.

With unemployment and apprehension about the economy high, many Americans are not in the position to take advantage of this rare opportunity. Many first-time buyers can’t meet lenders’ credit score guidelines and many repeat buyers do not have adequate equity invested in their homes to meet loan requirement. Many Americans also say that with rising living costs and no raises in their paychecks, they are unable to save enough money for a down payment.

However, if you look on the bright side, homebuyers who purchase this year are literally getting the home deals of a lifetime! So, if you are one of those in the market for a new home in Atlanta or are interested in Atlanta real estate, now is a noteworthy time.

Labels: freddie mac, mortgage market, Mortgage Rates

Freddie Mac reported a 79% increase in REO inventory year over year. They reported 34,699 in the second quarter in 2009, and 62,178 in the second quarter in 2010.

 Additionally, a net loss of $4.7 billion was reported for the second quarter ending in June 30, 2010 , partially offset by a $4.3 billion improvement in accumulated other comprehensive income (AOCI). The net loss for the quarter that ended March 31, 2010 was reported to be $6.7 billion.

The FHFA (Federal Housing Finance Agency) is said to have requested an additional $1.8 billion from treasury in government aid. This will be in addition to the $60 billion in federal aid that Freddie Mac has already asked for.

According to Dow Jones Newswire, sister company Fannie Mae posted its smallest quarterly loss in three years last week. Both companies were placed under conservatorship in 2008 to prevent potential implosions at the height of the credit crisis. Freddie has asked for over $60 billion in federal aid, while Fannie's has asked for $85 billion.

--- Brian and Jennifer Vanderhoff North Fulton County REALTORS Vanderhoff Real Estate (770) 331-1206 --- Milton, GA Real Estate, Condos, Homes for Sale North Fulton County, GA Real Estate, Condos, Homes for Sale Forsyth, GA Real Estate, Condos, Homes for Sale ---

Labels: Bank owned properties, Foreclosures, foreclosures for sale, freddie mac, REO

• 30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.7 point for the week ending July 29, 2010, down from last week when it averaged 4.56 percent. Last year at this time, the 30-year FRM averaged 5.25 percent.
• 15-year FRM this week averaged a record low of 4.00 percent with an average 0.7 point, down from last week when it averaged 4.03 percent. A year ago at this time, the 15-year FRM averaged 4.69 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.76 percent this week, with an average 0.7 point, down from last week when it averaged 3.79 percent. A year ago, the 5-year ARM averaged 4.75 percent.
• 1-year Treasury-indexed ARM averaged 3.64 percent this week with an average 0.7 point, down from last week when it averaged 3.70 percent. At this time last year, the 1-year ARM averaged 4.80 percent.

• “For the sixth week in a row, interest rates on fixed-rate mortgages eased to all-time record lows during a week of mixed housing data reports. The number of local markets experiencing annual increases in home prices appears to be growing. For instance, 13 metropolitan areas in the S&P/Case-Shiller® 20-city index experienced price appreciation over the 12-months ending in May, compared to 11 in April and 10 in March.
• “However, existing home sales in June slowed to an annualized pace of 4.37 million units, the fewest since March. Moreover, although new home sales jumped by almost 24 percent to 330,000 dwellings, it represented the second slowest rate since 1963.”

--- Brian and Jennifer Vanderhoff North Fulton County REALTORS Vanderhoff Real Estate (770) 331-1206 --- Milton, GA Real Estate, Condos, Homes for Sale North Fulton County, GA Real Estate, Condos, Homes for Sale Forsyth, GA Real Estate, Condos, Homes for Sale ---

Labels: freddie mac, Mortgage Rates, new low

Rates on 30-year mortgages plunged this week to the lowest level since January after the government launched a sweeping new effort to aid the U.S. housing market.

Mortgage finance giant Freddie Mac reported Thursday that average rates on 30-year fixed-rate mortgages dropped to 5.53 percent in the largest one-week drop in 27 years. That was down from 5.97 percent last week, and the lowest since the week of Jan. 24, when it was at 5.48 percent.

Further drops could be on the way if the government launches an industry-backed plan to lower the rate on a 30-year mortgage to 4.5 percent by spending hundreds of billions to buy mortgage-backed securities issued by Fannie Mae and Freddie Mac.

That would follow an effort announced last week by the Federal Reserve, which is planning to purchase up to $600 billion of mortgage-backed securities and other debt issued by Fannie and Freddie and the Federal Home Loan Banks. Those institutions don’t make loans directly to consumers, but provide money to the mortgage market by packaging loans into investments.

The Fed’s move caused rates to immediately drop by about a half-point, and many in the real estate industry hope rates will keep dropping as the government increases efforts to battle the credit crisis.

Rates “are now almost a full percentage point lower since the last week in October,” Freddie Mac Chief Economist Frank Nothaft said in a statement.

Bringing mortgage rates down is positive, but it “doesn’t help people that currently have unaffordable mortgages because it doesn’t help them refinance,” Sheila Bair, chairman of the Federal Deposit Insurance Corp., said Thursday. “Low interest rates help some consumers, but the ones that really need help and can’t refinance are not helped.” Mortgage rates are sinking as Treasury yields, some of the most sensitive barometers of investor sentiment, have dropped to record lows this week as a torrent of bad economic news continues. But as investors send yields down, they’re also influencing the economy —- driving interest rates so low that savers get punished and borrowers get a break.

Treasury buying has picked up and sent yields down because the economy is in a recession that investors believe will be long and deep.

Consumers already are taking advantage of the situation. New mortgage applications more than doubled last week, according to the Mortgage Bankers Association’s weekly survey released Wednesday. Refinance volume more than tripled, and made up nearly 70 percent of all applications.

Rates on other types of mortgages also fell, according to Freddie Mac’s survey. For 15-year, fixed-rate mortgages, rates averaged 5.33 percent, down from 5.74 percent last week.

Rates on five-year, adjustable-rate mortgages dipped to 5.77 percent, compared with 5.86 percent last week. Rates on one-year, adjustable-rate mortgages dropped to 5.02 percent, from 5.18 percent last week.

The rates do not include add-on fees known as points. The nationwide fee for 30-year and 15-year mortgages averaged 0.7 point last week. The fee on five-year, adjustable-rate mortgages averaged 0.6 point, while the fee on one-year adjustable-rate mortgages averaged 0.5 point.

A year ago, the nationwide average rate on 30-year mortgages stood at 5.96 percent, 15-year mortgage rates averaged 5.65 percent, five-year adjustable-rate mortgages were at 5.75 percent, and one-year adjustable-rate mortgages stood at 5.46 percent.

Labels: 11 month low, 30 year mortgages, freddie mac, Georgia, Mortgage Rates

As December approaches, the saying “home for the holidays” may hold more meaning to those facing foreclosure right now, and that spirit, Fannie Mae and Freddie Mac have announced a suspension on foreclosures and evictions through January of 2009.

The two mortgage giants have issued a notice to its loan servicing organizations and retained foreclosure attorneys directing them to suspend foreclosure sales on occupied single-family properties as well as the completion of evictions from occupied single-family properties scheduled to occur from November 26, 2008 until January 9, 2009. The effort was made to support the streamlined modification program that was announced on Nov. 11.

The suspension will help servicers implement the Streamlined Modification Program recently announced by Freddie Mac, Fannie Mae, the Federal Housing Finance Agency (FHFA), HOPE Now and 27 mortgage servicers, scheduled to launch December 15.. The temporary suspension is also expected to give servicers more time to help borrowers avoid foreclosure.

Fannie’s streamlined modification program is aimed at the highest risk borrower who has missed three payments or more, owns and occupies the primary residence, and has not filed for bankruptcy. The program creates a fast-track method for getting troubled borrowers into an affordable monthly payment through a mix of reducing the mortgage interest rate, extending the life of the loan or even deferring payments on part of the principal. Servicers have flexibility in the approach, but the objective is to create a more affordable payment for borrowers at risk of foreclosure.

Freddie Mac servicers and foreclosure attorneys were told to contact as quickly as possible an estimated 6,000 borrowers with foreclosure sales scheduled between November 26, 2008 and January 9, 2009. If the property is occupied, the servicers and foreclosure attorneys will halt the sale. This temporary suspension of foreclosure sales will not apply to vacant single family properties. Additionally, no evictions will be completed between November 26 and January 9.

“The streamlined modification program by Fannie Mae, Freddie Mac, Hope Now and 27 mortgage servicers is an important step forward in addressing the systemic issues driving the increase in foreclosures,” said Fannie Mae President and Chief Executive Officer Herb Allison. “Until the streamlined modification program is fully implemented, we felt it was in the best interest of both borrowers and Fannie Mae to take this extra step to ensure that homeowners with the desire and ability to prevent a foreclosure have an opportunity to stay in their homes. We encourage other servicers of non-GSE mortgages to participate in the streamlined modification program to bolster our collective efforts to stem the foreclosure crisis.”

“By working closely with FHFA and our servicers, Freddie Mac is on track to help three out of every five troubled borrowers with Freddie Mac-owned loans avoid foreclosure this year,” said Freddie Mac Chief Executive Officer David M. Moffett. “Today’s announcement builds on this momentum and provides a new measure of certainty to many of these families during the holidays.”

Moffett also emphasized that lenders servicing Freddie Mac-owned mortgages will continue to work with borrowers to consider all workout options Freddie Mac employs to help distressed borrowers who can and want to stay in their homes, such as permanent rate reductions and mortgage term extension modifications.

This year, Freddie Mac expects to approve 84,000 workouts for the estimated 140,000 who are delinquent on Freddie Mac-owned mortgages. (For more about Freddie Mac workout options, see freddiemac.com/avoiding_foreclosure.)

Freddie Mac’s temporary suspension of foreclosure sales is the latest in a series of efforts to help troubled borrowers. Other recent initiatives have included, delegating expanded workout authority to servicers, doubling the amount of money servicers are paid for successful workouts, and paying non-profit organizations to reach out to worried borrowers.

Fannie Mae will be working with foreclosure attorneys and servicers to reach out to the more than 10,000 borrowers the company estimates would be affected during this period. Borrowers who have Fannie Mae loans that are scheduled for foreclosure between November 26, 2008 and January 9, 2009, will be contacted directly by the attorney handling the foreclosure. If the home is occupied, Fannie Mae has instructed servicers and attorneys to suspend the foreclosure.

Allison also said Fannie Mae’s loan servicers are prepared to work with borrowers during this period, even if previous workout efforts have been unsuccessful. As part of the company’s “Second Look” initiative, Fannie Mae personnel have been reviewing seriously delinquent loans to determine if the borrower has been contacted and all workout options have been exhausted.

The streamlined modification program and temporary suspension of foreclosures are two of a series of steps Fannie Mae has taken to expand its foreclosure prevention efforts, which are designed to give loan servicers and foreclosure attorneys tools to find the best solution for a borrower in financial trouble. Fannie Mae and its many partners in the housing industry urge borrowers in financial difficulty to reach out to their loan servicers, regardless of whether they are facing imminent foreclosure. Solutions may be available that could make an existing mortgage more affordable.

Labels: evictions, fannie mae, Foreclosures, freddie mac, Georgia, january, suspended

In yet another effort to prevent more foreclosures, Fannie Mae (FNM: 0.67, -0.05, -6.95%), Freddie Mac (FRE: 0.83, -0.05, -5.69%) in conjunction with U.S. government officials, are speeding up the modification of home loans held by financial companies.

Sources told FOX Business Network that Fannie Mae, Freddie Mac and U.S. government officials will announce later Tuesday that they will hasten efforts to modify hundreds of thousands of loans that are past due. The goal is to bring the ratio of household debt to income for the borrowers down to 38%. U.S. government officials also plan to encourage large banks that hold loans to take similar steps.

The program will be an extension of HOPE NOW alliance, which was announced last year and is designed to prevent foreclosures by reworking the terms of mortgages.

The Wall Street Journal reported the announcement will come at a 2:00 p.m. press conference at the Federal Housing Finance Agency.

Financial industry sources told FOX Business Network that the White House rejected the FDIC’s proposal to prevent foreclosures for up to 3 million home owners. That more ambitious proposal would have provided some type of loan guaranteed for hundreds of billions of restructured mortgages.

Labels: fannie mae, federal housing agency, Feds, freddie mac, Georgia, hope now alliance, loan modifications, us government