Foreclosures are up

Lenders have foreclosed on 78,133 properties in January, which is up by 12% from the previous month but it is 11% less then a year ago.  Although there has been an increase in default notices, auctions, and bank repossessions in January, it is encouraging to know that the increase is 17% less then a year ago. 

5 states are responsible for more then 50% of the nation’s total foreclosure activity; California, Florida, Michigan, Arizona and Illinois.  Nevada was the hardest hit state with the highest foreclosure rate in the nation.  Bank repossessions increased 16% from December which is more then  5 times the national average.  Even though we are seeing more foreclosures, they are less then what it was a year ago.  Let’s hope that this is a good sign that we might be on the right track to recovery.   

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What’s ahead for 2011???

Wow!!  It’s almost the end of January and boy did it fly by.  Since the beginning of the year, the rates have been going up.  In November of 2010, the 30 year fixed loans were at a 40 year low of 4.17% the 15 year rate was 3.57%.  Now it’s at 4.8% and the 15 year rate is 4.09%.  I don’t think we will ever see the November rates ever again.  There will probably be less borrowing, in 2011, due to the economic conditions.

So what do you think prices of homes will do?  Well, most of the country will continue to see declines or stablize in prices except for 10 cities.   Unfortunately, Florida and parts of the Western parts of the US will see the largest drops in home values. 

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Things can’t get any worst or can they?

Home prices dropped 4.1% annually, in 2010.  Although there was an increase in prices, overall  70% of the major market prices experienced a decline and 8 had double digit declines.  There were 6 markets in California that managed to have some price gain. 

Unfortunately, 2011 will probably be the same, unless unemployment and distressed homes decrease.   Until there are more jobs and less people loosing their homes, we will not see too many price gains.

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6 reasons to shop around for the best interest rate available!

Everybody has gone shopping for one thing or another so this should apply to mortgage loans too.  By taking the time to shop around for the best rates available, you could be saving thousands of dollars during the life time of the loan.  So it pays to be aware of the cost associated in obtaining a loan.  Not to mention, you will be more confident about affording and purchasing that home that says “buy me”. 

After all, purchasing a property could be the most expensive thing you buy in your life time.  Why not take the plunge now?  With the lowest interest rates ever available and lots of homes to choose from, plus slow economic recovery of the market, this is the best time to do so.

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