Today, rates on 30-year mortgages fell to the lowest level in decades for the ninth time in 12 weeks, pushed down by traders anticipating a move by the Federal Reserve to pump more money into the economy. However, that doesn’t mean buying a home with a mortgage will be an easy process. “While the lower rates are great for both home buyers and those who wish to refinance, the recent tightening of the mortgage process has eliminated many prospective buyers from being eligible – at least at the lower rates”, says PG Waxman, broker and owner of Waxman Realty and long-time President of the Ocean County Board of Taxation. “It seems that the mortgage application process is becoming more difficult by the month”.
The average rate for 30-year fixed loans dropped to 4.27 percent, mortgage buyer Freddie Mac said today. That’s the lowest on records dating back to 1971, and down from 4.32 percent the previous week.
Rates have mostly fallen since spring as investors shifted money into the safety of Treasury bonds, lowering their yield. Mortgage rates tend to track those yields.
The 30-year rate was 5.08 percent at the beginning of April, while the 15-year rate was 4.39 percent.
In recent weeks, Treasury yields have dropped as investors predict that the Federal Reserve will soon increase its Treasury purchases to help boost the economy. That has pushed down rates.
However, historically low rates haven’t helped the struggling housing market, which recorded its worst summer in more than a decade.
Applications for mortgages to buy homes rose last week to the highest level since May, according to the Mortgage Bankers Association on Wednesday. However, that level is almost 32 percent below the level at the end of April, when homebuyer tax credits expired.
“The loss of the recent $8,000 home-buyers credit is not offset by the decreased interest rate. However, falling home prices in the older home market, and for newer expensive houses as well, is making homes in those categories more affordable”, says Waxman.
He adds, “The exception to declining sales trends and pricing is the new townhouse market. Sales are strong because most are realistically priced to sell and have a second income. In particular, if they are duplex models or end units, they sell quickly.”
Also, much of the most recent surge was led by borrowers seeking a government loan before the requirements were tightened. The new standards, including higher credit scores and down payments, went into effect this week.
Sales this fall are not expected to improve that much. Job concerns have kept many people from buying homes. Tighter credit standards have also dissuaded many would-be buyers from purchasing. Experts also expect the worst-hit cities to face more foreclosures and other distressed sales. TLS/AP
I cannot afford your “affordable” town houses starting at $499,000 maybe if you built a 3 bedroom house with 2 bathrooms instead of a 7 bedroom 5 bath house, i could afford. Maybe if you installed formica in the kitchen instead of granite, i could afford.
PG, as usual is 100% right. I wanna buy a house, my credit is over 720 but because I have a few houses & my total debt is over $800k, I wasdenied. PG Rocks ! His divrei torah are gems, btw.
May I introduce you to the beautiful neighborhoods of Raintree, Hearthstone, Pawnee, where there are tens of houses like u described, most of them for under $300k. Happy Hunting.
To # 2
Please post your name so we can all daven for you.
Keep the Divrei Torah coming!!!!!!!!
Townhouses have 5 bedrooms and 2.5 baths with formica countertops and sell for 369,000. It seems that you are bent on buying a single home with all the upgrades and complain that they are too expensive. Look at Chesterfield and other developements.
Maybe I do not want to live on top of someone else in a townhouse
Chaim you are right. I do it now and let me just say its not the right way of living. Its not ma tovu ohalecha yaakov to say the least.
The whole idea of “developments” is a not torah way of living. Not 75 people have to know every time I come and go or what I’m having for supper. And the ladies just sit around and yent about everything all day and compare each others life. What you make for supper what clothes your children wear what school they go to how successful or unsuccessful their husbands business is. Who has a better job etc. And then the basement issue. Don’t get me started . I don’t know where to start. This might be affordable 5 bedrooms but its not called affordable “living” to me. There’s an old joke that the reason its called a “complex” is because everyone living there has one. And sadly there’s a lot of truth to that joke. I can not imagine that this is the correct way for bnai torah to be living.
This article is beating around the bush. Bottom line is that if you are financialy insecure or fica-scored challenged, them you dont deserve to obtain long term fianincing at attractive rates. You are what the industry calls a “risk”. If you only qualify for a $250,000 home purchase then quit whinning and begging to be qualified for your $400,000 dream home. Stick to your level of financial comfort.
PG this is not a bad or declining market…this is a real market !!
Drop the morbidity, you just aint gonna have the same volume of business as you did when every shnook out there undertook massive loans that they had no business acquiring. Who ever heard of yeshiva guys with absolutely no business experience or financial security buying shopping malls or dozens of Trenton rental proprties..it was all out of proportion and out of control. Welcome back to reality.
The housing mess thanks to our government was created by allowing those who really don’t qualify to purchase homes FANNIE MAY & FREDDIE MAC just look at the amount of debt compilied by these two quasi government institutions ~ I doubt it will ever be paid back
in the end it cost all of us because of the ineptness of our government creating this mess ~ however there is a light at the end of the tunnel < I see a movement now that people ar now longer going to sit back and stand for this anymore ~ you will see this soon with elections coming up
GOD bless America
People will fix the problem not the government ………………
#3, under 300,000 and needing 200,000 in repairs and updates and I still have an old house so what’s the point