Market Reaching its Peak

I do not profess to “Know” what the real estate market will do in the next year or two, but I would like to share some information with you that might help you in making decisions regarding buying or selling property in today’s market. The following information relates to the types of mortgages that are currently being taken out by those who are currently purchasing or refinancing homes. Statistical surveys of the mortgage market shows that the percentage of adjustable rate mortgages comprised over 60% of the loans obtained in the last fiscal quarter. Even though the traditional 30 year mortgage is still very low in terms of historical comparison, buyers and homeowners that are currently buying or refinancing are electing to go with the adjustable rate almost two thirds of the time. Does that mean that they expect interest rates to go down even more, or is it because they can no longer afford the fixed interest rate, and believe that obtaining the adjustable rate is better than not buying or refinancing at all?

The real estate values in the previous five years have been largely impacted by interest rate reductions. As mortgage rates have declined, home prices have dramatically increased, with home prices doubling in the last five years. By far, the majority of the loans originated in the last five years were 30 year fixed rate loans. Within the last 12 months, that has dramatically changed.

About the Author

For further analysis or information regarding market trends, please contact me at 909-869-0259 or visit my website at www.nefcortez.com.

Australian Dollar Strengthens To 3-day Highs Against Most Majors (INO News)
(RTTNews) - Thursday in Asia, the Australian dollar jumped to 3-day highs against its most major counterparts after a report showed that Australia's business investment increased more than expected in the second quarter of 2008. The aussie also strengthened to a 2-day high against the loonie.

RP govt gives partial award of 7-year T-bonds (GMA News)
MANILA, Philippines - The government on Tuesday sold only a fifth of its planned P7-billion Treasury bond offering after banks demanded interest rates higher than those in the secondary market.

Fair winds fill the sails of Joanne's travel team (Helderberg)
IN spite of tough economic times, a local travel agency was singled out as top performer in the 120-branch Harvey World Travel chain at its annual conference in the Drakensberg in June.

Texas Tech poised to make BCS run (Dallas Morning News)
LUBBOCK – A few weeks ago, Texas Tech hung plaques representing the school's 31 bowl appearances in the lobby of its football complex. On one side of the wall, the Tangerine, Houston and Alamo bowlswere represented.

Fear of Defaults After a Flurry of Apartment House Sales (New York Times)
The recent disclosure that the owners of Riverton Houses, a 1,228-unit apartment complex in Harlem, might default on their loan has shocked the real estate industry.

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