FSBO BLOG

The Mortgage Bankers Association (MBA) said its index of mortgage application volume fell 12.3% in the week ended Oct. 23 from the prior week.

The drop in activity came as a popular tax credit for first-time homebuyers faced an uncertain future. The credit, which can be worth up to $8,000 for eligible buyers, is set to expire at the end of next month.

The MBA said refinancing applications also fell, by 16.2% from the previous week. The purchase index, a measure of applications at mortgage lenders, declined 5.2% last week

Home prices in 20 U.S. cities rose in August for a third consecutive month, according to S&P/Case-Shiller home-price index, the index climbed 1 percent from the prior month, seasonally adjusted, after a 1.2 percent increase in July, the group said today in New York. Prices are at levels not seen since August 2003 and have fallen almost 30 percent from the peak in May 2006.

Here is a sneak peek of the new FSBO.com homepage…

We are excited to let you know about some new and exciting changes coming to www.FSBO.com in the coming weeks.  We will launch a newly designed and upgraded website to better serve our customers!

Here are a few benefits of the new FSBO.com site…

YOU MUST CLOSE THE TRANSACTION BY NOV 30, 2009!!!!

Based on recent stories of closings, FSBO.com predicts many real estate closings the last week of November, 2009 will be a real mess. The main reason: the surge in mortgage applications overwhelming lenders. These days most lenders have reduced staff, increased paperwork required to sell the loan, dealt with constantly changing rules by government and many have accepted applications, only to run out of money or go out of business just days before the closing.

Let me know if you have recent experience with a closing delay or problem.

8/30/09 Sales of existing U.S. homes jumped more than forecast in July to the highest level in almost two years, signaling the housing crisis that crippled the world’s largest economy is easing. Purchases climbed 7.2 percent to a 5.24 million annual rate, the most since August 2007, according to National Association of Realtors.

‘Cash for Clunkers’ definitely helped sell cars and First Time Home Buyer credit has helped boost real estate sales, the problem is that this program ends Nov 30, 2009.  You can expect a surge of closings at the end of November.  Based on current experience, lenders and goverment agencies keep changing their rules to have a successful closing. FSBO.com urges sellers to price your home correctly to take advantage of this surge and buyers to not wait until the last minute.

According to 20-city index released Tuesday, from financial data company Standard & Poor’s and economists Case-Shiller, showed the value of U.S. homes grew on a monthly basis in May for the first time in nearly three years. “This could be an indication that home price declines are finally stabilizing,” said David Blitzer, chairman of the index committee S&P.  FSBO.com is seeing the rate of foreclosures slowing, the inventory of properties decreasing and the pending sales increasing. While the bad news has slowed down it will still take awhile for the upturn in housing to start. Remember our predicition on March 12th, 2009: “FSBO.com predicts the bottom in housing sales will be in the 4th quarter, 2009, as last minute buyers take advantage of the 1.tax credit expiring 12/31/09  2.low interest rates  3.depressed housing prices”  

I need a new car, but I would like to own a house, which should I do first?  

The new government incentive ($4500) towards the purchase of a new car is very enticing. At http://www.cars.gov/ you can learn all about the new federal “cash-for-clunkers” program.  One suggestion, if you currently have a paid off ‘clunker’ and are thinking of getting a mortgage to buy that new house, better buy the house first. With no car payment it is easier to get the mortgage approved. If you buy the new car first and have a car loan, that payment works against you when applying for a mortgage.

With a ‘First Time Homebuyer credit’ and a “cash-for-clunkers” program, now is a great time to do something. Prices are down and so are interest rates.

June 4 (Bloomberg) — Fixed U.S. mortgage rates jumped to the highest level this year, signaling the Federal Reserve’s plan to lower borrowing costs has stalled.  The average 30-year rate rose to 5.29 from 4.91 percent a week earlier, Freddie Mac, the McLean, Virginia-based mortgage buyer, said today in a statement. The last time the rate was higher was Dec. 11, when it was 5.47 percent. The average 15- year rate rose to 4.79 percent from 4.53 percent

The National Association of Realtors today, June 2nd, reported its seasonally adjusted index of sales contracts signed in April surged 6.7 percent to 90.3. It was the biggest monthly jump since October 2001. The mortgage markets are starting to see pressure to raise interest rates mainly because of the massive Federal Goverment borrowing. Banks are in better financial shape and are reluctant to lower the price of their REO properties. You better hurry if you plan to take advantage of low interest rates and low house prices. Remember what I wrote on March 12th, 2009: “FSBO.com predicts the bottom in housing sales will be in the 4th quarter, 2009, as last minute buyers take advantage of the 1.tax credit expiring 12/31/09  2.low interest rates  3.depressed housing prices”