Last Rates of 2008 - as of 12/29/2008

Mortgage Rates as of 12/10/2008
30-year conventional: Loan $130,000-$175,000---5.00-5.375%
Loan $175,000-$230,000---4.875-5.25%
Loan $230,000 to max ($417,000) --- 4.75-5.125%

30-year FHA: Loan $90,000-130,000 --- 4.75--5.125%
Loan $130,000-170,000 -- 4.75-5.125%
Loan $170,000 to max -- 4.75-5.125%

15-year conventional: Loan $130,000-175,000 -- 4.875-5.25%
Loan $175,000-230,000 -- 4.75-5.125%
Loan $230,000 to max -- 4.75-5.125%

40-year conventional: Loan $130,000-175,000 -- 5.375-5.75%
Loan $175,000-230,000 -- 5.25-5.625%
Loan $230,000 to max -- 5.125-5.50%

30-year conventional jumbo: $417,000-$650,000 -- 5.875-6.25%
15-year conventional jumbo: $417,000-650,000 -- 6.00-6.375%

5/1 Arm cap 5/2/5: $130,000-175,000 -- 5.00-5.375%
$175,000-230,000 -- 5.00-5.375%
$230,000 to max -- 4.875-5.25%

3/1 Arm cap 2&6: 417,000-$650,000 -- 6.125-6.50%
5/1 Jumbo Arm - cap 5/2/5: $417,000 -- 6.25-6.625%

Why must the money be repaid?

Congress's intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

Congress Divided on $700 Billion Bailout Plan

Daily Real Estate News | September 26, 2008
Congress Divided on $700 Billion Bailout Plan

Congressional negotiators resumed meetings on Friday to revive or rework the proposed $700 billion financial bailout plan.

On Thursday, the word was that the group of lawmakers were near “fundamental” agreement on the bailout of the U.S. financial sector.

But that consensus fell apart Thursday night, with Democrats blaming the House Republicans for the apparent stalemate. Conservatives, however, have complained that the plan would be too costly for taxpayers and would be an unacceptable federal intrusion into private business.

President Bush is urging lawmakers to work through their disagreements and reach a consensus on the plan so the U.S. can avert an economic meltdown.

"There are disagreements over aspects of the rescue plan, but there is no disagreement that something substantial must be done," Bush said in a statement.


Source: Dow Jones International News (09/25/2008), Chicago Tribune (09/26/2008)

Appraisal Independence

Congresswoman Biggert promotes Appraisal Independence
In her Op-Ed piece for The Hill newspaper, Congresswoman Judy Biggert (R-ILL) argues for housing reform, including greater support for key appraisal legislation.

Additionally, Congress must address the shortcomings of the home-buying process that have contributed to the rapid rise in fraud and predatory lending. Without greater transparency and independence in the appraisal process, consumers will continue to be targets, and investors will continue to lack confidence in the value of financial products like mortgage-backed securities. When the integrity of the appraisal process is in question, everyone loses.
To address this issue, Rep. Paul Kanjorski (D-Pa.) and I have joined with Sens. Bob Casey Jr. (D-Pa.) and Mel Martinez (R-Fla.) to develop a bipartisan, bicameral proposal. H.R. 3837 and its companion S.2860, the Fair Value and Independent Appraisal Act, will add important disclosure requirements, prohibit deceptive practices and improve appraisal standards. The Senate should quickly act on this proposal, which passed the House on Nov. 15 as part of H.R. 3915.


While it is unlikely that Congress will act on this legislation by the end of the year, it is not out of the realm of possibility. And with housing still a top issue for the nation, I suspect there will be some activity in the coming months. The extent of that activity; however, remains to be seen.

Posted on September 16, 2008 12:32 PM | Permanent Link

Letter to Realtors regarding Outlook for Real Estate, and Update on Government Intervention

Dear Fellow REALTOR®:

I know many of you are concerned about the troubled financial markets and are wondering how the federal government’s actions will help resolve the crisis. Here is the latest information on what is happening in the housing market and our position on the government’s plans to rescue Wall Street.

First, take a few minutes to watch today’s President’s Podcast, featuring my latest interview with NAR Chief Economist Lawrence Yun. Although the video was shot before the government takeover of Fannie Mae and Freddie Mac, Lawrence provides valuable perspective on where the housing market is heading in 2009.

http://www.realtor.org/about_nar/presidents_report/_podcast_archive/presidents_podcast_marketoutlook_20080923
Second, please read Lawrence’s September 22nd commentary, which explains the reality behind the government’s proposed “investment” in the financial markets and what’s at stake for homeowners and taxpayers.


http://www.realtor.org/research/commentary_700_billion

Third, review the letter I sent to Congress earlier today, outlining our position on the Treasury’s comprehensive approach to addressing problems in the financial system.


http://www.realtor.org/gapublic.nsf/pages/gses_conservatorship?OpenDocument

As the most trusted source of information in the real estate transaction, REALTORS® are in the best position to counsel consumers in this confusing market. I urge you to check Realtor.org for additional information and updates in the days and weeks ahead, and share them with your colleagues.

Working “All Together,” we can overcome these challenges and ensure that homeownership continues to be the most valuable investment Americans can make.

Conventional Limit for Jumbo Mortgages

Many of you may already know this, but congress is looking at increase the conventional limits somewhere between $600,000 and $700,000 from its current limit of $417,000. I will let you know when this happens and the new amount.

More good news . . . . . and thanks to those of you who have been trying to get me referrals! I really appreciate it. Marina