Nashville Mortgage Update

After jumping up two weeks ago, and then dropping almost as much the next week, national average rates rose again this past week.

Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.46% during the week ended Oct. 30 from 6.04% the prior week, as long-term mortgages rates moved in line with long-term Treasury bonds. The 15-year fixed mortgage rate rose as well, climbing to 6.19% from 5.72%. Meanwhile, the five-year hybrid adjustable mortgage rate moved up to 6.36% from 6.06%; and the one-year ARM increased to 5.38% from 5.23%.

Freddie Mac chief economist Frank Nothaft expects short-term rates to remain low due to the Federal Reserve’s recent cut in the discount and federal-funds rates, and he notes that falling home prices have jump-started residential sales in some markets by making properties more affordable.

Commercial real estate sales have begun to slump as well due to an even tighter commercial credit market.

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Nashville Mortgage Update

After jumping up two weeks ago, and then dropping almost as much the next week, national average rates rose again this past week.

Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.46% during the week ended Oct. 30 from 6.04% the prior week, as long-term mortgages rates moved in line with long-term Treasury bonds. The 15-year fixed mortgage rate rose as well, climbing to 6.19% from 5.72%. Meanwhile, the five-year hybrid adjustable mortgage rate moved up to 6.36% from 6.06%; and the one-year ARM increased to 5.38% from 5.23%.

Freddie Mac chief economist Frank Nothaft expects short-term rates to remain low due to the Federal Reserve’s recent cut in the discount and federal-funds rates, and he notes that falling home prices have jump-started residential sales in some markets by making properties more affordable.

Commercial real estate sales have begun to slump as well due to an even tighter commercial credit market.

If you liked this post, you might also like:
Mortgage Rates Remain Steady
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30-Year Rates are Lowest Since 2005!
Nashville Mortgage Rates Stay Virtually the Same

Nationally, Many Homeowners are "Underwater"

According to a report by First American CoreLogic, at least 7.5 million American homeowners are “underwater borrowers,” meaning they owe more on their mortgages than their homes are currently worth.

This is called negative equity, and the report shows an additional 2.1 million people are on the brink of falling into it. Their homes are worth less than 5% more than the mortgages they’re paying on them.

The report’s 7.5 million estimate is a conservative number. Some organizations, including Moody’s Economy.com, estimate that as many as 12 million borrowers may be underwater. As a result, real estate auctions are on the rise.

Nevada is home to the highest number of underwater borrowers, with 48% of homeowners having negative equity. Michigan follows with 39 percent. New York is faring best at 4.4%.

While this report does not specifically refer to cities, it is our belief that Nashville falls towards the lower end of the spectrum due to the lack of a run up in the mid 2000’s. It also appears that Nashville does not have as big of a subprime mortgage mess as other, similar cities.

If you enjoyed this post, you might also enjoy:
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Nationally, Many Homeowners are "Underwater"

According to a report by First American CoreLogic, at least 7.5 million American homeowners are “underwater borrowers,” meaning they owe more on their mortgages than their homes are currently worth.

This is called negative equity, and the report shows an additional 2.1 million people are on the brink of falling into it. Their homes are worth less than 5% more than the mortgages they’re paying on them.

The report’s 7.5 million estimate is a conservative number. Some organizations, including Moody’s Economy.com, estimate that as many as 12 million borrowers may be underwater. As a result, real estate auctions are on the rise.

Nevada is home to the highest number of underwater borrowers, with 48% of homeowners having negative equity. Michigan follows with 39 percent. New York is faring best at 4.4%.

While this report does not specifically refer to cities, it is our belief that Nashville falls towards the lower end of the spectrum due to the lack of a run up in the mid 2000’s. It also appears that Nashville does not have as big of a subprime mortgage mess as other, similar cities.

If you enjoyed this post, you might also enjoy:
WSJ Reports Slowing Mortgage Delinquencies
How Will Subprime Loans Affect Nashville?
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Our Dog Gracie Lu

Our dog, Gracie Lu in her film debut!

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Our Dog Gracie Lu

Our dog, Gracie Lu in her film debut!

If you liked this video, you might also like these posts:
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The Economic State of Nashville and Middle Tennessee
Bible Park USA – Can They Build It?

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