The Day After . . . Let's Talk Mortgage Rates!

This information was released yesterday by the Mortgage Bankers Association (MBA) and was reported in an article by MarketWatch. As Realtors we are often asked where we think mortgage rates are headed. The best people we think we can look to is the MBA. Here is their take on what to expect:

"After reaching record lows in 2012, mortgage rates are expected to creep up slowly in the year ahead, the Mortgage Bankers Association predicted. Rates on the 30-year fixed-rate mortgage are expected to average 3.8% in the fourth quarter of 2012, rising to 3.9% in the first quarter of 2013 and eventually rising to an average 4.4% by the fourth quarter of next year.”



Any questions, about if now is the time to make a 'move' in real estate just may make sense! For specific information about market trends for specific neighborhoods in Edmond, Deer Creek, Oklahoma City, Piedmont, Yukon, Mustang and other Oklahoma City metro communities, please give us a call 330-2777!

Right now the price points below $150K in Edmond/Deer Creek are showing less than 3 months of inventory. A clean, well-priced home is getting multiple offers and selling quickly. Also $275K to $300K are also showing a lighter inventory. Call us for more information. If you need specifics on marketing your home in today's market, call to talk to Gary 216-9600!

The Heartbreak -- The Action!

Just one more reminder to our friends in Edmond, Oklahoma City, Deer Creek and Oklahoma City (plus surrounding area)-- we are so blessed!  Our friends, family and fellow Americans in the Northeast have been hit so very hard by Sandy. Relief efforts appear to be insurmountable by human standards. Even estimate of what it will cost and the timeline to recovery is all over the board. No matter the circumstances, this is where we come together as a country to support in prayers, donations, blood drives and even some of us are able to go there through a variety of mission trips. This event, like others we have experienced here in Oklahoma, remind us of such vulnerability.

Here are some links to get more information on how you can 'roll-up your sleeves' today

Give Blood

Give Funds


And with a credit card handy, it is just a couple clicks away from doing something to help out now!

Yesterday we were out showing homes in Piedmont area where the horrible tornado took homes and lives. That community, like other Oklahoma areas, is so resilient and strong. New homes up, downtown vibrant, children riding their horses at the local arena and lots of optimism -- what a great community!

House Prices: Window of Opportunity is Closing!

There have been conflicting opinions as to where housing prices are headed. We want to give our opinion on this subject for the short term. We believe sellers have a window of opportunity for the next 90-120 days in most parts of the country in which to sell their homes for maximum price. We believe there will be increased downward pressure on home prices throughout the rest of the year.

Why renewed downward pressure?

Any item’s price is determined by ‘supply and demand’. In many parts of the country, existing housing inventory has dropped to historic norms in the last few months. However, an inventory of distressed properties (foreclosures and short sales) will be coming to market this year. This inventory has been delayed for over a year as the Federal and state governments crafted an agreement with the five largest banks and mortgage servicers to establish a roadmap for how a foreclosure must be properly completed. That agreement, the National Mortgage Settlement, was reached two weeks ago.

What Impact Will the Agreement Have on Foreclosures?

Brandon Moore, chief executive of RealtyTrac, explains:

“The settlement sets forth clear guidelines for lenders and servicers to follow when foreclosing, which should allow them to push through some of the delayed foreclosures from last year.”

How Many Foreclosures Could We Be Talking About?

Mark Vitner, a senior economist at Wells Fargo Securities tells us:

“The settlement helps the housing market in the long run because it allows banks to proceed with millions of foreclosures that have been stalled.”

What will this mean to home prices?

As this inventory comes to market, it will impact prices in two ways:

1. It will bring to market discounted competition for buyers
2. It will impact the appraisal values of all homes in the area

Which States Will Be Impacted the Most?

The states that have the largest backlog of properties currently in the foreclosure process will be the states that will see the greatest price depreciation.

Bottom Line

There is a window of opportunity currently which sellers should take advantage of. Waiting until later this year will not guarantee a higher sales price. If anything, in many regions of the country, it probably guarantees the exact opposite.

Courtesy of Keeping Current Matters 2/27/12