Rates Drift Lower
Concerns about slower economic growth over the next few months allowed mortgage rates to drift lower as the month drew to a close, according to two different surveys.
Both the Mortgage Bankers Association and Freddie Mac found rates slipping on fixed as well as adjustable rate products.
Freddie Mac found that the average rate on 30-year fixed loans had dipped from 6.4 percent to 6.33 percent in the last full week of the month. Last year at this time, the 30-year fixed-rate mortgage cost 6.4 percent. The MBA, on the other hand, said the average 30-year rate was 6.2 percent.
According to Freddie Mac, 15-year fixed rate loans averaged 5.99 percent, down from 6.08 percent the week before. The MBA had the average at 5.86 percent, down from 6.09 percent the previous week. A year ago, according to Freddie, the 15-year fixed mortgage averaged 6.1 percent.
One-year Treasury-indexed ARMs averaged 5.66 percent, down from 5.76 percent, according to Freddie Mac. But the MBA had the average for a one-year adjustable dropping from 6.17 to 6.1 percent.
Whether rates continue to drift south remains to be seen. "How much of a drag the housing slump will be on the economy remains unknown," said Frank Nothaft, Freddie Mac's chief economist.
Warning to Investors
Buyers and would-be investors often look to foreclosure sales to find real estate bargains. But newcomers to this market could find some unpleasant surprises if they go in blind. All homes should be thoroughly inspected by a professional home inspector before sealing the deal.
Why inspect? Because foreclosure homes are usually "as-is" sales. This means that buyers cannot negotiate for the cost of needed repairs, as they may do in a traditional home purchase. Buyers must absorb repair costs themselves. Consequently, they should consider this in their purchase offer at auction.
Too many foreclosure buyers think they're getting a deal when, in fact, they might be purchasing a property with substantial and costly defects. Remember, if the former owners couldn't afford to make their house payments, they probably couldn't afford to keep the place in good operating order, either. And if the necessary repairs are major, the expense could exceed any savings gained in buying a foreclosed property.
Sellers at foreclosure auctions are not usually obligated to disclose defects. But buyers can empower themselves by getting a professional property inspection before the auction that will provide valuable insights about the condition of the home. If pre-auction property inspections are not permitted at the foreclosure sale, buyers will need to weigh that risk carefully.
Why Retirees Return to Work
According to a survey by Financial Freedom, a company which makes reverse mortgages, nearly two out of three seniors want to remain retired. But the 35 percent of those who plan to work in retirement (or have their spouses work) offered some surprising reasons, and no, money wasn't the top response.
Only 44 percent of those who plan to work said they needed the extra dough. One out of five said their spouse is driving them nuts, 39 percent are bored, 53 percent want more disposable income for travel or just "fun" money, and 55 percent said they actually enjoy working.
'Myth Busters'
In a concerted effort to boost consumer confidence and debunk what it sees as "sensationalized media reports" about the nation's housing finance system and housing market, the National Association of Home Builders has launched a new "Myth Buster" campaign to help its members present what it calls "a more balanced and accurate picture" of current and projected conditions in the housing market.
The campaign is aimed at correcting the record on "falsehoods" being presented in local and national media outlets, such as claims that there is no mortgage money available, foreclosures are skyrocketing and home values are in a free-fall with no bottom in sight, the association said in a recent on-line newsletter to its members. It includes "facts and information that corrects the record and shows why now is a good time to shop for a new home," the report says.
Oldest Appliance Contest
Still using a washboard? How about a hand-cranked clothes dryer? Even if you have one gathering rust in the back yard, you may qualify for the top prize in a contest to find North America's oldest appliance, in good working order or not.
Sponsored by APWagner, a leading supplier of appliance parts, the contest is a call to find the oldest appliance, working or not, in the United States or Canada. The top prize is $16,500 in cash and other considerations.
Contestants wishing to enter should send a short, two-minute video of themselves and their appliance to www.apwagner.com. The contest has six categories, each of which will have a winner, with the grand prize for the absolute oldest appliance being three new Whirlpool appliances plus $1,000 in cash. Winners also will be chosen in oldest refrigerator, range, dryer and washer categories.
Even if you don't have an old appliance, you can enter in the craziest video category.
Complete contest rules and well as instructions on how to enter can be found by visiting apwagner.com and clicking on the link for North America's Oldest Appliance Contest.
