Housing Affordability at Record Levels

If you look at the graph, it is a great time to buy a home. The combination of low interest rates, lower prices and higher rents makes today’s market ripe to get into real estate. Whether you are buying something to live in, or looking at investing, there has not been a better time to do in over a decade, maybe longer.

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Mortgage Rate Average Hits All Time Low

According to Freddie Mac, the average fixed mortgage rate has now hit an all-time low. The 30 year fixed recently hit 3.84%, breaking the old average of 3.87. The combination of low interest rates and the depressed real estate market make this a great time to buy real estate. And if you are an investor looking for foreclosed properties, this is one of the best market in MANY years.

Read the whole story here: http://freddiemac.mediaroom.com/index.php?s=12329&item=127954

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“We very much believe we’ve hit bottom”

I don’t have a crystal ball when it comes to the housing market, I rely on my experience for local trends, and the experts for the big picture. The title of this post is a direct quote from Nick Timiraos at the Wall street Journal. His article confirms what I have seen here in the Portland Metro Area, the prices have stabilized and there are actually bidding wars for many listings.

I think this is going to be a hot summer for real estate.

Read the whole article here: Stunned Home Buyers Find the Bidding Wars Are Back .

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Short Sale Stats

Here is a very informative graphic courtesy of KCM Blog. Short sales and foreclosures are a big part of the market, and there is no end in site.

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Changes to Home Affordable Refinance Program (HARP)

HARP is set for some changes on March 17, 2012. The changes are meant to make refinancing a little bit easier for those homeowners that are in trouble. Here is a quick overview of what the changes are.

• Relaxed eligibility guidelines in order to make the program more accessible to those who need it most.
• Elimination of the 125% loan-to-value cap
• Relaxed credit score and income requirements
• Relaxed occupancy requirements allowing borrowers to refinance their second home or investment property

Hopefully the new changes will make a difference. If you are underwater and need to sell or refinance, give me a call.

Jesse Rivera
Fairplay Realty
503-683-2508

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