Tag: Mortgage rates

Home Buyers in Orlando Gear Up as Rates of Fixed Mortgages Fall Further

Posted on by Jenny Zamora

The spring buying season of 2014 started off on a good note and it seems to only be getting better. Rates of fixed mortgages were on a downward spiral since the first week of April. The week beginning April 14 marked the second time when the rate of fixed mortgages fell to its lowest levels since February.

As noted by Freddie Mac, the government-sponsored mortgage buyer, the average rate of interest on standard 30-year home loans dropped to 4.27 percent in the week beginning April 14. The week before (April 7-13), fixed mortgage rates stood at 4.34 percent. The 4.34 percent – rate was again, 0.7 percent below the rate of fixed mortgages in the week beginning March 31. At the beginning of the year, these rates stood fairly high at 4.5 percent.

This week’s decline marked the second consecutive week when fixed-mortgage rates were the lowest since February and Orlando Realtors say prospective buyers are getting more enthusiastic about the spring buying season.

Will the Drop-in Fixed Mortgages Sustain Itself in the Coming Weeks?

Most probably yes. According to 56 percent of the market analysts interviewed by the website Bankrate.com, the rates are going to hold steady in the coming weeks. They say the rates of interest will continue to be low and remain stable over the next couple of weeks. They did not predict a rise in mortgage rates.

Realtors note that concerns of a weak market – one that wouldn’t be able to support a dynamic increase in prices of residential real estate  – to be one of the primary reasons rates began spiraling downwards in January 2014.

A good time to buy homes?

According to the Orlando real estate agents it is. According to the most recent report from the US Department of Housing and Urban Development, March was marked by an increase in new residential construction. The report, released April 16, revealed that housing starts in March increased by 2.8 percent, compared to February. The month also saw a  reduction in permits for residential buildings, as compared to the number of permits issued in February (2.4 percent decline). The number of permits was, however, 11.2 percent higher than the number in March 2013.

Increasing inventory and reducing rates of mortgages typically result in increased buyer activity. The Orlando real estate industry has seen its fair share of residential starts and realtors say more prospective buyers are inquiring about the rentals and purchases in upcoming properties.

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Florida Real Estate and Housing Markets Revel as Late Mortgage-Payment Rates Drop

Posted on by Jenny Zamora

According to a recent report released by the credit bureau TransUnion, Americans are taking care of the timely payments of their mortgages so much so that the rate of late home mortgage payments has reached a record five-year low. The report, released Wednesday, February 12, reveals that compared to the 5.8 percent delinquency rate in the fourth quarter of 2012, rates improved to become only 3.85 percent in the fourth quarter of 2013.

Key takeaways from the report

 

Apart from being lower than the rate same time last year, the late mortgage-payment rates were also lower than the same year’s third-quarter rates, when 4.09 percent of homeowners were at least 2 months late in their mortgage payments.

TransUnion reveals that the last time mortgage-payment delinquency rates were lower than the current rates, was five years ago – in the second quarter of 2008. And even though the current rates are still twice as much as the rates in 2007, before the housing bubble burst, TransUnion holds that foreclosures will continue to thin down and delinquency rates reduce even further.

The growing job market, lower interest rates, and tight supply are reasons behind the improvement

 

The improving job market, state and federal government incentives to revamp home loans and make them more affordable as well as rising home values are at the core of this improvement.

Real estate agents in Orlando say that rise in property values has been a staple for most U.S. states over the past couple of months and struggling homeowners have also found comfort at the hands of increased job opportunities. The interest rates on home loans have reduced, lending a hand to the housing rebound which was primarily fueled by the tight availability of homes for sale.

Further, the U.S. unemployment rates have dropped and though slow, the growth of jobs has been steady. With several federal and state incentives like that by Florida, job prospects are only getting better.  Upcoming housing markets like those in Florida have greatly benefited from these incentives. Top Orlando realtors, for example, reveal the Orlando real estate industry found several buyers because of Florida’s incentive to entrepreneurs to set up offices and jobs in the state.

The low rates of late mortgage payments have another key driver – the discount on unhealthy home loans that were primarily issued before 2008. Most of these risky mortgages, that went unpaid for a long time were either sealed off and foreclosed by banks or sold to other wealthy buyers. Post the economic downturn of 2008, banks became more strict in lending. Only strong loans that banks were confident about have been passed since then – accounting for a major reason why late payments dropped sharply.

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