Mortgage Rates Fall Back to Earth

Mortgage rates moved south last week, reaching their lowest point in five weeks, according to Freddie Mac’s nationwide survey. The company reported a drop in the average interest on a 30-year fixed loan to 6.04% from 6.46% last week and a slide in the 15-year fixed rate to 5.72% from 6.14%. Interest on adjustable-rate mortgages slipped to 6.06% from 6.14% for five-year ARMs but bumped up to 5.23% from 5.16% for one-year ARMs.

We do not believe that this is a permanent drop by any means. There is way too much market volatility and the credit markets still have not sorted themselves out. Remarkable Homes believes that mortgage rates will rise again next week as 3rd Quarter reports report sharp loses in the retail sector.

If you are a seller in Nashville, we still advocate leasing your home for the short run with a top notch property management company.

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Mortgage Rates Fall Back to Earth

Mortgage rates moved south last week, reaching their lowest point in five weeks, according to Freddie Mac’s nationwide survey. The company reported a drop in the average interest on a 30-year fixed loan to 6.04% from 6.46% last week and a slide in the 15-year fixed rate to 5.72% from 6.14%. Interest on adjustable-rate mortgages slipped to 6.06% from 6.14% for five-year ARMs but bumped up to 5.23% from 5.16% for one-year ARMs.

We do not believe that this is a permanent drop by any means. There is way too much market volatility and the credit markets still have not sorted themselves out. Remarkable Homes believes that mortgage rates will rise again next week as 3rd Quarter reports report sharp loses in the retail sector.

If you are a seller in Nashville, we still advocate leasing your home for the short run with a top notch property management company.

If you enjoyed this post, you might also like:
Mortgage Rates Absolutely Plunge
Nashville Mortgage Rates On The Rise
30-Year Mortgage Rates On The Decline
Mortgage Rates Rise Again, More Sharply

Some Believe That National Real Estate Market Rebounding

Nationally, existing-home sales increased in September, as buyers responded to improved housing affordability conditions, according to the National Association of REALTORS (NAR).

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said low home prices and low interest rates have been attracting buyers. “This is the first time since November 2005 that home sales have been above year-ago levels,” he said. “Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.”

NAR Chief Economist Lawrence Yun said there may still be market disruptions. “The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac. Inventory remains high, and price declines are pressuring owners,” he said.

We here at Remarkable Homes do not believe that the national real estate market can rebound until at least mid 2010 due to credit market volatility. The Nashville real estate market might be able to come back a little sooner, but few will be profitably flipping for a few years.

If you like this post, you might also like:
Nashville Real Estate Market Report February 2009
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Some Believe That National Real Estate Market Rebounding

Nationally, existing-home sales increased in September, as buyers responded to improved housing affordability conditions, according to the National Association of REALTORS (NAR).

NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said low home prices and low interest rates have been attracting buyers. “This is the first time since November 2005 that home sales have been above year-ago levels,” he said. “Credit tightened at the end of September, but the improvement demonstrates that buyers who’ve been on the sidelines want to get into the market to make a long-term investment in their future.”

NAR Chief Economist Lawrence Yun said there may still be market disruptions. “The credit markets are not settled yet, although the mortgage market stabilized with the government takeover of Fannie Mae and Freddie Mac. Inventory remains high, and price declines are pressuring owners,” he said.

We here at Remarkable Homes do not believe that the national real estate market can rebound until at least mid 2010 due to credit market volatility. The Nashville real estate market might be able to come back a little sooner, but few will be profitably flipping for a few years.

If you like this post, you might also like:
Nashville Real Estate Market Report February 2009
Remarkable Homes Predicts Residential Real Estate Future
Housing Recovery Expected in Second Half of 2008

Laurel Cove Golf Course Now in Limbo

With the collapse of Wall Street giant Lehman Brothers, so may one of Williamson County’s largest residential projects. The Laurel Cove project is a 1,120 acre, 800 luxury home, Greg Norman designed golf course and day spa in Arrington, Tennessee. Lehman Brothers holds the $121 million construction loan as well the ultimate authority to pay all vendors and employees. At the moment the Wall Street giant filed for bankruptcy they were already 2 months behind and now sources say it may take more than 6 months to unravel and assume the loan from the bankruptcy trustee.

What does this mean for the project? It literally means that no work whatsoever will be done until this whole mess is sorted out. Residential construction had not begun yet, but the golf course, club house, and day spa were all more than 50% complete and residential construction was to begin in early 2009.

Prediction: With the national economic slowdown, the developers of Laurel Cove will most likely drag their feet as much as possible to allow the economy and financial markets time to turn around. We would not be shocked if construction resumed any time before 2010.

Update: This Nashville Blog has learned that it may take more than 9 months to sort out the Lehman Brothers bankruptcy. As predicted a month ago, the national real estate picture has continue to struggle and Nashville real estate is holding rather steady.

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Laurel Cove Golf Course Now in Limbo

laurel cove golf course

laurel cove golf courseWith the collapse of Wall Street giant Lehman Brothers, so may one of Williamson County’s largest residential projects. The Laurel Cove project is a 1,120 acre, 800 luxury home, Greg Norman designed golf course and day spa in Arrington, Tennessee. Lehman Brothers holds the $121 million construction loan as well the ultimate authority to pay all vendors and employees. At the moment the Wall Street giant filed for bankruptcy they were already 2 months behind and now sources say it may take more than 6 months to unravel and assume the loan from the bankruptcy trustee.

What does this mean for the project? It literally means that no work whatsoever will be done until this whole mess is sorted out. Residential construction had not begun yet, but the golf course, club house, and day spa were all more than 50% complete and residential construction was to begin in early 2009.

Prediction: With the national economic slowdown, the developers of Laurel Cove will most likely drag their feet as much as possible to allow the economy and financial markets time to turn around. We would not be shocked if construction resumed any time before 2010.

November 2008 Update: This Nashville Blog has learned that it may take more than 9 months to sort out the Lehman Brothers bankruptcy. As predicted a month ago, the national real estate picture has continue to struggle and Nashville real estate is holding surprisingly steady for the time being.

2010 Laurel Cove Golf Course Update

The once much anticipated Greg Norman golf community continues to sit in foreclosure and will most likely lose preliminary plat approval soon. It appears to be a very opportune time for a new developer to step in and negotiate a discounted purchase from the lien holders.

2011 Update

Laurel Cove may be off the books soon. A rather large investor may be taking possession of this almost forgotten golf course development.

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