Will it ever end? QE 1, 2 and 3? The Feds are once again making an attempt to improve the housing market by lowering rates and with the looming bond crisis in Europe, investors are supporting the Feds with their buying of US Treasuries and Mortgage Backed Securities to help drive up bond prices and thus reducing rates again.
With 30 year fixed rate mortgages now under 4.0% and 15 year fixed rates in the low 3s, rates continue to move south.
However, this low interest rate environment has still not stabilized the housing market as foreclosures continue at a record pace and a weak job market has many would be buyers sitting on the side lines waiting for a bottom. Interestingly enough we have seen several markets in Michigan actually begin to increase in value.
In regards to refinances, many have already benefited from the Home Affordable Refinance Program (HARP) and a new revision to the program is slated to take affect this coming March 2012. Under this revision, eligible home owners will be allowed to refinance REGARDLESS of the value of their homes. Currently there are caps between 105 - 125% of the Loan To Value.
In addition, the current fees that are associated with the HARP loan are being revised, providing further incentive to many borrowers who may currently qualify but have refained from refinancing because of prohibitive costs.
Saturday, February 4, 2012
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