Nov 30 2007
Click here to watch an interesting video on the housing crisis put together by PBS. Seems to cover both sides of the issue fairly well. The video is 20 or so minutes. Add a comment with your thoughts on the video.
Nov 30 2007
Sometimes it is difficult, when so many sources of information are conflicting, figuring out who to believe. The chief economist of the NAR (National Association of Realtors) seems to think things have already bottomed out and are starting to rebound, but he represents Realtors, many of whom are hurting right now from falling prices. Taking a stroll down almost any street in America would tell you otherwise.
Thousands upon thousands of subprime loans have yet to reset to higher interest rates, but when they do, you can expect the market to continue its decline. It looks like the bulk of the subprime loans will reset in 2008.
The increase in reset loans will likely mean more foreclosures if refinancing doesn’t take place, or the lending companies decide to reset rates to what borrowers are currently paying. Some money has to be better than putting your company out of business, right?
Take a look at this chart from Bank of America Securities and you tell me when this housing funk we’re in might end. Hopefully we’ll find a way out of this mess soon!
Nov 28 2007
Ok, so this isn’t the greatest of topics ever discussed, especially in a failing market where people don’t have money to begin with. But it is ever so important to discuss for those of you that can actually afford to purchase a home in this 21st century. Paying down points, what an interesting thought to consider. Why would this benefit you? You ask. Well, I would assume that most people don’t live in their first home the average length of 6+ years. But when you do get ready to settle down, have kids, and live in a home you will be at for many years, paying down points on a mortgage is not a bad idea. Continue Reading »
Nov 28 2007
Via USA Today
Coicides nicely with an article we published a while back on how we got into this mess we’re in. Visit USA Today for explanations as to what the dots represent on the chart.
Nov 28 2007
In addition to getting your house ready for sale, finding a good real estate agent is important. The Boston Globe has an interesting article on things to consider when selecting an agent. The market isn’t as spry as it has been in recent history, so there are definitely some general skill sets you should look for. I have included some highlights from the article after the break.
Nov 27 2007
| Type | Rate | APR | |
| 30-Year Fixed | 5.82% | Dn | 6.00% |
| 15-Year Fixed | 5.40% | Dn | 5.68% |
| 1-Year Fixed | 5.53% | No | 6.93% |
| Jumbo 30-Yr Fixed | 6.63% | Dn | 6.76% |
| 30-Year Fha | 6.26% | Dn | 6.49% |
| 5/1 Arm | 5.50% | No | 6.44% |
| 5/1 Jumbo Arm | 6.04% | Up | 6.65% |
| Data provided by: | BankRate.com |
Nov 27 2007
Kevin Drum, an analyst on CBS.com had this to say:
“Last year I speculated that when the housing bubble burst, prices would decline by 10-20%, with the high end of that range being more likely than the low end. Aside from fellow bubble pessimists, most people at the time thought that seemed pretty ridiculous. But here’s what the LA Times says today:
No one knows how severe the slump will be, but economists and real estate experts interviewed by The Times, and who were willing to make predictions, said prices could fall 15% to 25% before turning back up.
Most said values would continue falling through at least next year, and some thought the market wouldn’t reverse course until 2010. Continue Reading »
Nov 21 2007
There have been millions of attempts to write clever ads about homes in the classifieds. Have you ever read an ad that said “3bed/2bath” and thought instantly that it was the home for you? Your ad needs to be different and give proper descriptors to your home, but that is hard to do with 3 lines of abbreviated text. Continue Reading »