Mortgage rates slip lower

The Primary Mortgage Market Survey averaged 5.10% this week for a 30-year fixed home loan product. This Freddie Mac index closed at 5.68% at the same time a year ago. It was a minor adjustment down from a week before, mirroring a weak economy and the government's involvement in buying mortgage-backed securities.

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LV resales increase nicely in December

The latest report from the Las Vegas real estate market gives the reader a warm feeling, at least for now. It was somewhat surprising as the winter months tend to slow down a bit. Regardless, local housing observers and home buyers are doing flips over the encouraging turn of events.

In its December wrap-up GLVAR, or Greater Las Vegas Association of Realtors, reveals that there were 2,498 existing single-family homes sold, amounting to a strong 184% jump from December of 2007. In addition, this beats November's figure of 2,183 by 315 houses closed. Much of the activity was generated by real estate investors who now see good value in Southern Nevada and aren't afraid to make a move. Home buyers, on the other hand, remain somewhat cautious, obviously hoping that prices will fall even further before signing anything. After all, it's their own hard-earned money they would have to use to pay off the mortgage.

Southern Nevada builders exploring $100 per square foot homes

Las Vegas existing home sales are dominated by foreclosures today, something like 70% of them are REOs, or real estate owned. Banks are now in a hurry to unload the steady stream of inventory and to do that they are pricing the homes aggressively. The lower end of the resale market has been relatively busy because of that but it has also shouldered the new home sector mostly out of the picture, as it has been slow in reacting to the large drop in prices. That is now changing, however.

$100 per square foot, or more, for any home was considered expensive in Las Vegas before the boom years and became kind of a psychological benchmark at the time. Then prices zoomed right through it as the market turned sizzling hot and in this contraction are now heading right back toward a more realistic standard. To read the entire article please click on the link.

Mortgage industry facing a new challenge

The federal government has been really aggressive in the past several months in infusing money into the banking system in order to turn the tide on the still deteriorating real estate market. One of the key goals of this was to assist homeowners facing foreclosure find a way out of their mortgage payment problems. The capital, however, was given to the banks in good faith, without enforceable regulations to make sure they would comply.

Sure enough, it appears that many lenders have found far better uses for the money than help struggling borrowers. For one, it's nice to get the taxpayer to take care of a balance sheet that sags under the weight of under-performing mortgages, acquired without careful analysis of their soundness. Hoarding cash also gives them the opportunity to grab a failing financial institution or two when nobody is looking. There are many other ways to make money work. Please click on the link to read the entire article.

Home loan interest rates very attractive

Freddie Mac's weekly average reached its lowest point ever, stopping at 5.10% for 30-year fixed. At this time last year the Primary Mortgage Market Survey recorded a 6.07%. This represents a ninth consecutive week of falling rates, spurring a healthy increase in mortgage applications for refinance and purchase.