Americans are on the move!

Market Insider: How Long Will this Housing Shortage Last?

By Lawrence Yun Home prices have risen at a double-digit rate since early spring. The Case-Shiller reading was up 11 percent in March compared to a year earlier, while the NAR median price was higher by roughly the same amount in April. This robust appreciation appears nearly certain to last for the remainder of 2013 and the reason is basic economics: increasing demand and tight supply. Data on pending contracts and closed sales are at five-year highs, while data on homebuyer traffic activity (an element of the REALTORS® Confidence Index) is almost moving off the charts. Multiple bids are increasingly common in many local markets. ... Read More >

Hope for Homeowners

By NAR 2013 President Gary Thomas

We’ve seen interest rates rising recently.

Rates on 30-year fixed mortgages have gone up almost a full percentage point since reaching record lows six months ago.

REALTORS and consumers are understandably anxious about what this means for the real estate market.  While there is currently no evidence of rising interest rates slowing the economy, they will invariably have an impact on loans.

I believe there is reason for hope.  Although it’s likely that fewer people will refinance, since they already have low interest rates, banks will still need to make money.  As a result, they may need to increase loan originations.  To do so, there is a very good chance that lenders could ease credit standards away from over-stringency to ensure the greatest number of qualified buyers have access to mortgage interest.

While you may be hearing concerns from your clients about rising interest rates, don’t despair.  Tell your clients that it’s not necessarily bad news for real estate if rising interest rates are balanced with opening credit to more consumers.

We’re hopeful—and it’s more than just a glimmer—that if the economy can recover as much as it has under tight credit conditions, it may do even better as credit steadily returns to normal. 

Interest Rate Update

30 Year Fixed up to $417,000	3.99% to 4.75%
30 Year Fixed "Agency" up to $625,500	4.125% to 4.5%
30 Year Fixed FHA up to $417,000	3.75% to 4.0%
30 Year Fixed FHA "Jumbo" up to $729,500	3.75% to 4.125%

Rising Listing Prices

New House, New Yard

Credit Rescoring and Credit Repair..Getting Prepared

Many borrowers have a misunderstanding regarding the use of credit rescoring by mortgage originators, and credit repair schemes.                                                                    First and foremost "credit rescoring" is a program developed in conjunction with and is processed through the three national credit repositories.                                                                 Companies providing “rescoring” (are defined by the Fair Credit Reporting Act (FCRA) as “RESELLERS” and have legal obligations to BOTH creditors and consumers for the reports that they issue.                                                                         That includes the actual “hard copy” reports containing rescored credit accounts / trade lines.                                                                           The changes on the “hard copy” report are made via the “rescoring process” and must be verified TWICE for accuracy.                                                                                            The changes are verified once by the resellerproviding the rescoring service, and then again by the 3 NATIONAL credit repositories (i.e. Trans-Equifax- Experian ) from which the trade line was originally reported.                     Upon the completion of the second verification, the data in question is changed at the NATIONAL level, a new credit report is accessed with new score calculations made with the new data, completing the process.     This all happens in about two to three days as the rescoring process puts everything into a rush status by all involved.        In contrast, credit repair firms cannot access the repository data do not have the ability to interface with the bureaus directly.                        They file disputes (via the basic consumer model) butcannot resolve themnor are they empowered to do theirown “investigation” or issue their own “hard copy” credit reports.                     In other words they have “no standing” with the three national credit bureaus”.                    Many credit repair firms do not even operate with their real name, as most of these firms operate in a fashion that is legally questionable.                                                                                                                        To begin the scam most credit repair companies simply file a dispute on behalf of the borrower with the (relevant) bureau(s).   By filing the dispute(s), it will temporarily raise the credit score giving the borrower “false hope”…until the investigation comes back.                                                       Then if the derogs items are found to be valid, the score returns to the lower credit score.                  But by that time the credit repair company has collected their fee and moved on to their next victim.   Please click on the links below for more info. 13 Credit Scoring Myths that are Killing Deals         Assorted forms for dealing with creditors and resolving disputes.  Taking your case to the Fed Authorities