Mortgage apps are up - where is yours?!

Tuesday, February 19th, 2008

Mortgage applications rose 12% last week - yay!  People are out there buying, and selling, and the market is warming up along with this beautiful Colorado day (59 degrees and not a cloud in the sky!)

This from Realty Times…

Money for home purchases right now is cheap, no question. And we all know housing prices are lower this year than they were last — sometimes by 10 and 15 percent or more, depending on local market conditions.

So a 12 percent jump in purchase applications could be a significant development … or just a fleeting statistical fluke. We’ll keep you up to date on it.

Another potentially important factor looking forward: The federal economic stimulus package signed into law this week opens the door to more affordable home purchases in some of the hardest-hit, high cost markets in California, New England, Florida and the Mid- Atlantic states.

Rather than being stuck with expensive “jumbo” loans — with rates of one to two percent above standard — buyers will now be able to take out mortgages with lower rates, even if the loan amounts go to nearly $730,000.

Those new “budget-priced” jumbos will be available not only through Fannie Mae and Freddie Mac, whose lower capital costs get passed onto borrowers, but also through the FHA, whose capital costs are even lower.

There’s a hitch, though: These special jumbo deals will only be available this calendar year. They disappear December 31st.

Buyers and sellers who want to benefit from this part of the stimulus package need to get into the game fairly soon.

Who knows? Maybe the economic stimulus package — which most people think of in terms of tax rebate checks — just might bring some heat and energy to the housing market, just in time for Spring.

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