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Gulf Shores Condos – Orange Beach Condos – Real Estate Service Providers

MORTGAGE UPDATE

MORTGAGE UPDATE

October 16, 2008

Good morning to all our friends.  I offer this update as a means to keep you abreast of what is happening in our industry.  Many of you have asked about the direction of mortgage rates and housing in general.  To say we have been in a state of industry slowdown is an understatement.  While our elected officials have been dealing with legislation to open up the credit markets and get institutions lending again we have seen our equity markets decline and corporate earnings depressed.

In recent days we have seen increased pressure for rates to creep up to over 6% on 30 year fixed rate mortgages.  Many believe that they will rise to the 7 % level shortly as the pressure to sell treasury notes to finance the government bailout is apparent.  That’s quite a bit higher than rates have been, but it it’s no disaster.  Historically anything under 8% is considered good.  It is just that many of us in recent times have seen rates so low we have become accustomed to it.  Eventually the market will settle, credit will open back up and lending institutions will once again begin easing up some of the restrictions we are currently facing.

I do not foresee us returning to the days of stated income, stated assets.  Borrower’s will have to prove their income and assets.  They must demonstrate an ability to repay the debt and all the hybrid mortgages of the past are gone.  Our industry will return to a more prudent evaluation of the risk associated with lending.  That will create a much more stable market and lower rates will return.  Eventually the housing inventory will improve and declining markets will subside and valuations will start to rise at a more controlled rate.

Home Mortgages Company has plenty of money to lend.  We have some great options for first time homebuyers and some programs that assist folks in getting in with very little money down subject to qualification and credit standards.  We are eager to serve you and your clients.  If you have some specific questions why don’t you call one of our loan officers today?  As the “ole saying” goes this too shall pass and we will come out of it stronger and leaner as an industry.   We can also do some in house training for any agents who need help with financing options.

Rob and Renee Smith
Loan Officers
1535B Schillinger Road S
Mobile, AL 36695

Rob: (251) 243-0254
Rob eFax: (877) 603-8117
Renee: (251) 243-0249
Renee eFax: (877) 623-0142
email: rob.smith@wjbradley.com
email: renee.smith@wjbradley.com

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October 16, 2008 - Posted by | alabama, Baldwin County, Daphne, Fairhope, fort morgan, orange beach, Point Clear, real estate, Spanish Fort | , , ,

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