Rates Take a Dip this Week 12/3
Rates close out at 5.35% making it the lowest drop since the beginning of the year. I was watching Fox News yesterday and they said that the Treasury Department was considering dropping rates even further to 4.5% in order to ignite the housing industry. Things are looking up. Buyers really do have everything on their side now. With the combination of the decreasing rates and home prices at drastically reduced prices, home buyers can now qualify for homes that they couldn’t even come close to a few years ago. My site is the most comprehensive and informative real estate site in Hampton Roads (I know, I’m biased) so check it out if you’re in the market to purchase and let me know how I can assist you.
www.HomesAndFood.com is dedicated to exploring where we live and what we eat with an emphasis on Hampton Roads. Here you will find an abundance of articles and tips pertaining to recipes, interior design, home improvement, cooking supplies, and even real estate. Hampton Roads is comprised of 7 major cities in Virginia: Virginia Beach, Chesapeake, Norfolk, Suffolk, Portsmouth, Hampton, and Newport News.
Trends in the Virginia Housing Market
Amid the national financial uncertainties and news about the economy and stock markets, the Virginia economy and housing market are out-performing the country and it is expected that the state’s economy will continue to have moderate growth in spite of the national economic turbulence.
After nearly a year of market slowdowns and home price depreciation, the housing market in the Commonwealth of Virginia exhibited signs of strength in the 3rd quarter of 2008. Sales activity was down only slightly in the 3rd quarter of 2008 compared with the 3rd quarter of 2007. Statewide, prices were up 1.4 percent over the year.
Much of the increased sales activity in 3rd quarter 2008 occurred in Northern Virginia markets, where a strong economy and drastic price drops continue to attract buyers.Prices in many markets outside of Northern Virginia have risen slightly in the 3rd quarter of 2008 compared with the 3rd quarter of 2007. A notable slowdown in new construction across the state in the first eight months of 2008 will put additional upward pressure on prices.
Economic Overview, Third Quarter 2008
There is much turmoil and uncertainty in the national and global economies as of the end of the 3
rd quarter. The financial markets have been buffeted by the mortgage and credit crises, and central banks and the US government are implementing several measures to help stabilize the situation. It is now much more likely that the US economy has been/is in recession, although it would not be officially declared for several more months. Virginia, however, is experiencing better economic conditions than most of the country. The unemployment rate is significantly less than the U.S. rate, and jobs continue to be created in the Commonwealth.
Rates Are Dropping!!
Have you heard? I have verified with 2 different loan officers that I work with that rates went as low as 5.375 two days ago and are expecting to hold steady in the mid 5’s. The recovery of the housing market is the key to economic growth and it appears that the Feds are making the move. Check out the article below from NAR’s Chief Economist.
Jeff Nelson
Homes and Food, Inc.
Tons of information about where we live and what we eat in Hampton Roads, Va.
Also, find out real estate information for Chesapeake,”>www.homesandfood.com>Chesapeake, Norfolk, Portsmouth, Suffolk, Hampton, and Newport News.
NAR Says Fed’s Buying of Fannie, Freddie Debt Will Drive Down Interest Rates and Help to Stabilize Housing
WASHINGTON, November 25, 2008
Great news for home buyers, home sellers and the U.S. economy is how the National Association of Realtors® greeted this morning’s announcement by the Federal Reserve that it will purchase housing-related debts of Fannie Mae and Freddie Mac, thus freeing up mortgage money on Main Street.
“This is one of the key actions we’ve been advocating ever since the Treasury altered its course on how it would use the $700 billion recovery package passed in September. This is great news for home buyers and sellers and we applaud the Fed for taking this historic step,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Housing recovery is the key to economic recovery in this country and it always has been.”
In a four-point plan submitted to Congress last month, NAR called for the Treasury Department to purchase mortgage-backed securities (MBS) from banks to provide price stabilization for housing. Today the Fed said it would purchase mortgage-backed securities from Fannie Mae, Freddie Mac, and Ginnie Mae for up to $500 billion. “This will be critical to a housing recovery,” McMillan said.
Lawrence Yun, NAR chief economist, said purchasing debt obligations of Fannie and Freddie is an important move. “We commend the Fed decision because it will directly bring down long-term interest rates,” he said. “The level of investment should be aggressive enough to bring interest rates down in a meaningful manner. As we’ve seen in past recessions, home sales rise when mortgage interest rates fall.”
Yun said that given the present state of the mortgage market, interest rates on 30-year fixed-rate mortgages are too high. “If Fed action brings down mortgage interest rates by even 1 percentage point, it would increase homes sales by 500,000 units. That should help to draw inventory down and stabilize prices.”
Yun said higher home sales are critical now to absorb inventory and stabilize prices. “Only with stabilization in home prices can we have a healthy housing and economic recovery,” he said.
In its announcement, the Fed said it will purchase up to $100 billion of GSE debt from primary dealers through a series of competitive auctions to begin next week. Purchases of up to $500 billion in MBS will be conducted by selected asset managers before year-end. Both the direct obligations and MBS purchases are expected to take place over several quarters.
Detached Homes in Virginia Beach for under $200k
You can find townhomes and condos all day long for this price but can you believe that there are 119 detached single-family homes in Virginia Beach for under $200,000? Below is the most current list. This link will expire after a couple of weeks from this date so be sure to contact me if you would like a more up to date list.
http://rein.mlxchange.com/Pub/EmailView.asp?r=552560490&s=VAB&t=VAB
Jeff Nelson
The Real Estate Group
757-749-1616
www.homesandfood.com
