USDA Update

100% Financing is still moving forward preserving the dream of home ownership!

USDA funding may not run out after all – HR 5017 passed today By Tara Steele on April 23, 2010 1 Response

Buzz 38 ► Retweet...HR 5017 passed
Today, the Kanjorski bill (HR 5017) passed unanimously in the House Financial Services Committee, a bill aimed at supporting the rural housing market that has struggled to get passed. HR 5017 also known as the Rural Housing Preservation and Stabilization Act of 2010 will end the current method of using federal funding to backstop the guarantee, but instead will fund the program through mandatory fees.

HR 5017 ensures rural homebuyers access to affordable loans through USDA, but because these loans have tripled since 2006, federal funding will be running out literally in the next few days, making passage critical.

Pennsylvania Congressman Kanjorski said, “At no cost to taxpayers, [the Kanjorski] bill will preserve the access of millions of families living in America’s heartland to needed USDA loan guarantees, so that they can continue to buy homes with affordable mortgages. Without action, too many families in rural America will have no options for getting home loans. We cannot allow that to happen.”

In order to pay for the program, lenders will pay up to a 4% fee on new home mortgages. Next, the bill moves to a House vote.

In a House press release, homeowner Virgie Spruiell from Pennsylvania said, “As a result of this program, I was able to purchase my first home which I have wanted all my life. I enjoy it every day and it is a blessing. I greatly appreciate Chairman Kanjorski’s efforts to enable the program to continue so that other people can access these guaranteed home loans just as I did.”

Envoy Mortgage

Today's Holidays

I thought today I would give some insight on holiday's as crazy as they may seem!! It's from a web site at http://www.holidayinsights.com/

Kindergarten Day

When : Always April 21st


It's Kindergarten Day. The first day at Kindergarten is a memorable, exciting, nervous, and anxious time for mother and child. Most children and mothers will never forget the first day at Kindergarten. Hopefully, it was a good experience for all!


Kindergarten Day is celebrated in honor of Friedrich Froebel. He was born on this day in 1782. In 1837, he started the first Kindergarten in Germany. It became popular quickly. Kindergartens were originally a 1/2 day to get children acclimated into learning, social interaction, and school, in a fun, yet educational manner. Kindergarten has evolved in most areas into a full time program. This is partly the result of increasing pressures on education, and partly due to the increase in working mothers in America.


Celebrate today with a trip down memory lane. Pull out the old pictures of you and/or your child's first day at Kindergarten.

Famous Birthday's

April 21, 1915- Anthony Quinn, actor

April 21, 1926- Queen Elizabeth II, queen of England

April 21, 1935- Charles Grodin, actor

April 21, 1951- Tony Danza, actor

April 21, 1782 - Friedrich Froebel, started the first Kindergarten in Germany in 1837.

April 21, 1958- Andie MacDowell, actress, model

April 21, 1961- Don Mattingly, baseball player

Did you know? The White House will send your newborn a birthday card. Just send the following information: Baby's name, address, and date of birth to: White House Greetings Office, Room 39, Washington, DC 20500

Here is another fact: "At least fifteen million people are having a birthday today."

Thorsten Bernacki

Envoy Mortgage

Improving your credit score.

In today's market maintaining your credit could be a difficult task. Many realize this is a very good time to purchase but may have trouble obtaining a loan due to credit issues. If you need help improving your credit score click on the link below on 101 ways to legally improve your credit.

101 ways to improve your credit

Envoy Mortgage

Good Morning

Hello Everyone,

The market today is fairly flat thus far. We are currently 7/32 higher than Friday at this time. The question at hand is how will the news about Goldman Sachs play out today.

On a very positive note. I have created a fan page in Facebook for Realtors. This site is geared to providing realtors with free material to increase your sales. Would love to have you join and provide comments and ideas. If you are part of Facebook send me an e-mail and I will send you the link. tbernacki@envoymtg.com

Till Later
Thorsten Bernacki
Envoy Mortgage

End of Day Market Update 4-16-2010

MBS prices are up +11/32 above 9:45 et pricing of +4/32, and at the high for the day.

The big economic news today was that the SEC charged Goldman Sachs with fraud regarding subprime mortgages. After the announcement, the stock market declined and MBS markets moved higher improving rates. Today's economic data had little impact. The Dow is down 120 points. For the week, MBS prices rose about +13/32 which is a good win for rates.


Next week, the economic data will be stacked at the end of the week. The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Thursday. Existing Home Sales also will be released on Thursday. Durable Orders, an important indicator of economic activity, will come out on Friday, along with New Home Sales. Leading Indicators will round out the schedule on Monday.

Everyone have a great weekend.

Thorsten Bernacki
Envoy Mortgage

USDA Update

USDA is going infront of Congress next week. They are looking to also eliminate the problem of having to replenish the funds every year.

This is good news for everyone as there are many renters out there that want to buy. They are however not comfortable enough to invest in the purchase due to the lack of security in the job market. USDA is the program for them as the average mortgage payment is close to the average rent payment, no down payment is required, and there is no mortgage insurance.

Get ready for a busy year !!!!
This year will be a great opportunity for those of you ready to purchase.

Thorsten Bernacki
Envoy Mortgage

Morning Market update -- Good News

Good morning Everyone,

Good news today is that March Housing Stats rose 2% to an annual rate of 626k units. above the consensus forecast of 610K, and the highest level since October 2008. Building Permits, a leading indicator, also exceeded expectations. Let's get this housing market back on track. MBS markets are currently trading above the open keeping rates at or below yesterday's.

I have a lot of good information coming to you in the near future with regards to this blog.. so stay tuned. With the housing market building momentum the buyers will come!! Rates are still historically low and current home prices make buying a better option than renting.

Thorsten Bernacki
Envoy Mortgage

Morning Market Update

Good Morning Everyone... Here is today's morning Update

It has been a volatile morning which seems to be the norm lately, MBS markets began the day at higher levels. Mixed economic data contributed to the price swings. Weekly Jobless Claims rose to 484K, far above the consensus forecast of 440K. The 4-week average increased to 458K. The Easter holiday may have influenced the results. The April Empire State index ( survey from a group of manufacturers across New York who report the change of indicators from the previous month ) surged to 31.9, above the consensus of 24.0. March Industrial Production increased just 0.1%, which was well below expectations. The Dow is down 25 points. Philly Fed ( survey of manufacturers located around PA ) will be released soon.

Thorsten Bernacki
Envoy Mortgage
Watertown, Connecticut

End of Day Market Update 4-14-2010

Well I said it would be a crazy ride today and it surely has been !!

MBS prices are down -5/32 below 9:45 et pricing of +2/32. Unfavorable repricing has been seen. Early in the session, MBS markets rallied from a low of -4/32 to a high of +4/32 on low CPI inflation data. This occurred in spite of a stronger than expected Retail Sales number for March. MBS prices remained in a fairly narrow range until 2:00 et when the Fed Beige Book was released. This reported indicated improving economic conditions in all but one of the twelve Fed regions, an improvement from the last Beige Book report. The Dow gained over 100 points. The latter news had a slight worsening on mortgage pricing.

MBS are currently at -7/32 4:13 pm ET

Tomorrow, Industrial Production, the Empire State index, Philly Fed, and Jobless Claims will be released.


In testimony to Congress, Fed Chief Bernanke made no mention of monetary policy or interest rates. He suggested that the economy has emerged from the crisis, but that the job market will recover very gradually. On mortgage markets, he stated that he has seen little impact on mortgage rates from the end of the Fed's MBS purchase program. -- Lets hope it stays that way

Thorsten Bernacki
Envoy Mortgage

Points or No Points ??

The length of time you need to borrow the money has a profound impact on the entire mortgage process. The answer to that question is the key to selecting the right components to your total loan package. A true mortgage strategist will help you answer the question of whether you should be paying upfront points. This process of determining how long the money will be borrowed for should take some effort and honest deliberation. This is as critical of a decision as any other life planning event. The correct answer to points and program is based upon each individual’s needs, plans, goals, and desires. Is there a life changing event in the foreseeable future? That event could be job transfer out of town, marriage, divorce, children, retirement, investing, additional schooling out of town, etc…Points vs. No Points--Points are often a misunderstood concept ..........

CLICK HERE TO SEE THE REST OF THE ARTICLE

Thorsten Bernacki

Envoy Mortgage

Early Morning Market Update

This is going to be a busy day as far as the market is concerned. So far....

Low inflation data lifted MBS markets this morning. March CPI rose 0.1% from February, matching expectations, and increased at a 2.3% annual rate. Core CPI, which excludes food and energy, rose at a tame 1.1% annual rate. March Retail Sales jumped 1.6% from February, while Retail Sales ex-autos rose 0.6%. Both figures exceeded the consensus forecast showing further improvement in the economy. The Dow is up 50 points. The Beige Book will be released at 2:00 et. Fed Chief Bernanke will be testifying before Congress at 10:00 et.

As I post this the MBS markets are pulling back some.. It is going to be a volatile day !!

Thorsten Bernacki
Envoy Mortgage

Market Update 4-13-2010

It's been another volatile day for the markets. MBS markets reached a high of +6/32 and fell as low as -4/32 which was not favorable for rates. This is now two days in a row that prices fluctuations have not been linked to major economic news.

Tomorrow will be a very big day with CPI ( consumer price index ), retail sales, and the Fed's Beige Book (Primarily seen as an indicator as to how the Fed might act in its upcoming meeting) being released. Bernanke will also be testifying before congress at 10am ET.

Get ready for some big swings tomorrow!!


Thorsten Bernacki
Envoy Mortgage

Good Morning

Good Morning Everyone,

Well yesterday was a good day for rates. We had a very modest improvement and on the opening this morning, MBS ( Mortgage Backed Securities ) are up +4/32 because import prices ex-oil fell -0.2%, which is lower than expected.

As the economy improves ( at least the look and feel of it!! ) word is that credit card rates and mortgage rates will begin to rise. Right now inflation is low so there is not a huge pressure to raise mortgage interest rates. The Feds are committed for the short time to help insure low rates.

The question at hand is how will the market play out with the 3+ million foreclosures that have not hit the bank books yet, the 42+ bank failures this year (which projections indicate that we will exceed the 140 banks that failed in 2009), and the fact that the stock market has been inflated with printed money by the government!!

Inflation is truly a concern, however, if the stock market declines, bonds will do well which in turn will continue to keep rates low. We need to keep rates low and confidence to help the housing market. It's a double edged sword and the administration knows it!

Thorsten Bernacki

Envoy Mortgage

14 Things You Need to Know About Your Credit

The truth is... lenders are looking harder than ever at credit. Use these tips to help your score!

1. Will paying off collection accounts, charge-offs, or liens help my credit scores?
Paying a past due balance on a charged-off / collection account typically will not, in most cases, increase your credit score. I do not suggest paying these types of accounts when you are planning on applying for a loan in the next six months since they can hurt your score by paying them. Please let me clarify that I am not suggesting that you not pay a collection account, but that you consider waiting until the loan closing or shortly after to pay them since it can reduce your score and hurt your chances of getting loan approval. I suggest that you either pay or settle these accounts either concurrent with the loan closing or directly after since not paying it can lead to either a lawsuit being filed or the debt being sold to several collection agencies in the future, which will damage your credit even more in the long run.

If you are determined to pay them off - I recommend you contact them direct, ask them to provide you with written proof that you owe the debt. Once you are satisfied that this is your debt you would want to ask them to send you a statement in writing showing (a) the total amount due and (b) verbiage that states that they will delete the account from credit report once the balance is paid. If the account is updated as paid but not deleted from your credit report - chances are that your credit scores will go down. That is why I strongly suggest the verbiage stating that they will remove it from your credit report.

If you do not agree with the information reported on these accounts I suggest that you dispute them in writing with the credit bureau and the source of the negative reporting.

2. I pay my credit card balances off in full every month. Does that guarantee higher credit scores?
This is a common misconception and if your credit card balance is high on the day of the month that your credit card company reports to the credit bureaus that will be the amount reported. The fact that the balance is paid off with each month's billing statement and returned to "zero" might not be reflected on your credit report. Many self-employed or small business people, or those who make many business-or profession-related purchases on their credit cards and then pay of the balances each month, fit this profile.

Say for instance, that by the end of the month, you make $7,000 worth of purchase using a credit card with a credit limit of $8,000. In the middle of the month, at the time of the due date, you pay off the entire balance that appeared on your last statement.

But from a credit reporting perspective, you aren't paying off the entire balance: by the time your payment arrives at the credit card company, your true balance has changed due to the incoming charges. While you may pay the full amount shown on your statement, the account never reaches a true zero balance, unless you cease charging for a month. Since the credit card companies choose a particular day of each month to report to the bureaus, whatever the balance on that day is the one that goes on your credit report. Your credit score may remain unchanged if your purchases are consistent month to month, or the score may drop if the balance is higher, or rise if the balance is lower.

So, if you know the date that your credit card company reports to the bureaus and you want to raise your credit score at least temporarily, then paying off your balance a few days before that date could achieve that goal. This is a prime example of how someone who in reality handles their credit very responsibly is in fact penalized by the credit scoring system, in part because of the timing or reporting cycles and the current inability of the credit scoring system to accommodate people who regularly payoff high balances, or at lease dramatically reduce them.

CLICK HERE TO READ THE REST.

Market Update

Good News Everyone....

With no major news in the market today, MBS markets are up +12/32 above the morning pricing of +3/32. That will lead to an improvement in rates.. A step in the right direction to say the least

We do have a lot of economic data coning out this week however.. CPI, retail sales, Jobless claims, housing starts UofM confidence just to name a few so get ready for a potential ride this week. We can see some large swings up or down.

In equities, the Dow broke through the 11,000 threshold (hooah for our 401k’s) in intraday trading Friday but finished the session just below the high water mark. At the open, we are above again and have a feeling we will stay there by the closing.

USDA is getting close to running out of money. Let's hope that our friendly political figures will find some monies to fund the program for the remainder of the year. The USDA program is far to important to the housing industry!!!

Till Later
Thorsten Bernacki
Envoy Mortgage

Tax Credit is Extended for Military Personnel

Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales

Thorsten Bernacki
Envoy Mortgage

With a decrease in home prices it makes more sense to own than rent!

The all time American Dream is having a house that you can call it your own. This is a form of reward that is truly deserved with all the hard work that you have done to date. Just think, no more landlords, pets are allowed, and you now have ultimate privacy. While some may argue that renting has less responsibility, there are many benefits that you will lose when compared to owning. For example, when you rent for 30 years, what have you accomplished at the end of that term? NOTHING!! When you own a home that has a mortgage payment in place of rent, you have a tangible benefit of a property that has a considerable amount of value at the end of the mortgage term. Also renting has no tax benefits, where as paying a mortgage has huge yearly tax benefits which equate to funds back in your pocket instead of the landlord.....

Click here to read the full article.

Thorsten Bernacki
Envoy Mortgage

Week ending April 9, 2010 Update

Rates Lower After Strong Auction Demand

Although this week's economic data was generally stronger than expected, it was overshadowed by solid demand for the Treasury auctions and intensified concerns about the economic situation in Greece, which helped mortgage markets. After reaching the highest levels since August, mortgage rates ended a little lower than where they ended last week.
Recent increases in yields on long-term fixed-rate securities such as 10-yr Treasuries and mortgage-backed securities (MBS) appeared to have been sufficient to attract investors. Very strong demand from both foreign and domestic investors for Wednesday's 10-yr auction pushed Treasury yields lower, and mortgage rates followed. Increasing the appeal, renewed worries about the fiscal situation in Greece caused investors to seek the safety of US securities. Comforting statements from Fed officials that they expect inflation to remain low for a long time also added to the demand.
In the housing sector, February Pending Home Sales jumped 8% from January, far exceeding the consensus forecast. Pending Home Sales are a leading indicator of housing market activity. The chief economist of the National Association of Realtors (NAR) considered the data to be a potential sign of a "second surge of home sales this spring". To receive the homebuyer tax credit, contracts must be signed by the end of April, which likely boosted the results for February. As buyers seek to take advantage of the program, March and April pending sales may show strength as well.


Also Notable:

Continuing Jobless Claims fell to the lowest level since December 2008
The Fed lowered its forecasts for inflation in 2010 and 2011
As expected, the European Central Bank (ECB) made no change in rates
The Dow stock index reached an 18-month high

Average 30 yr fixed rate:
Last week:
+0.10%
This week:
-0.05%
Stocks (weekly):
Dow:
10,950
+50
NASDAQ:
2,425
+25


Week Ahead
The most significant economic data next week will be Wednesday's Consumer Price Index (CPI), the most closely watched monthly inflation report. CPI looks at the price change for those finished goods which are sold to consumers. The Retail Sales report will also come out on Wednesday. Retail Sales account for about 70% of economic activity. Industrial Production, another important indicator of economic activity, will be released on Thursday. Housing Starts are scheduled for Friday. The Beige Book, Import Prices, the Trade Balance, Consumer Sentiment, and Philly Fed will round out a busy week.

Have a great weekend

Thorsten Bernacki

Envoy Mortgage

Market Update

Well folks, with no economic data coming out today the market is still drifting in a wide range.

MBS ( Mortgage Backed Securities ) prices are down -1/32 which is about 7/32 lower than yesterday at this time.

Looks like it is going to be all about Greece today. Intensified concerns about the economic situation in Greece has added to the volatility in global bond markets. Concern over a potential liquidity shortage is fueling a sharp selloff in Greek debt and equity markets. As it stands the market is worried that the Greek banks will have trouble meeting immediate funding needs!

Will keep you posted.

Thorsten Bernacki
Envoy Mortgage

Even People Who Aren’t Paying Their Mortgage Don’t Think It’s OK To Stop Paying The Mortgage

– By Jacob Goldstein – There’s been a lot of talk lately about people walking away from their mortgages. As it turns out, though, most people still think it’s not OK to just stop paying the mortgage. That includes people who are underwater on their own mortgage, and those who have fallen behind on their payments. NPR Planet Money

Foreclosure Filings Increase by 21% Could be a good opportunity for new buyers!

Purchasing can be cheaper than renting!

Foreclosure Filings Increase By 21% By Jennifer Harmon

A massive supply of delinquent loans continues to loom over the housing market, and many of those delinquencies will end up in the foreclosure process in 2010 and beyond as lenders gradually work their way through the backlog.
Recent data from RealtyTrac showed over 3.9 million foreclosure filings, including default notices, scheduled foreclosure auctions and bank repossession were reported on 2.8 million properties in 2009, up 21% from 2008 and 120% from 2007.
"As bad as the 2009 numbers are, they probably would have been worse if not for legislative and industry-related delays in processing delinquent loans," said James Saccacio, chief executive officer of RealtyTrac, Irvine, Calif.
"After peaking in July with over 361,000 homes receiving a foreclosure notice, we saw four straight monthly decreases driven primarily by short-term factors: trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline."
Despite all the delays, foreclosure activity still hit a record high for the company's year end 2009 Foreclosure Market Report, capped off by a substantial increase in December, Mr. Saccacio said.

If you are a buyer in need of a list of foreclosures in your area CLICK HERE

Mountian Lion

A friend sent me these pictures. People have said that Mountain Lions do not exist in Connecticut!! Well here is proof !! These were taken in Sharon, CT

Market Update for Connecticut from Envoy Mortgage

Good Morning Everyone,

Today, jobless claims data was mixed with initial claims coming in 25k worse than expectations, but continuing claims posted a strong showing adding some fuel to the green side for bonds. These past two days have given us some relief from the torturous previous eight days where we basically lost a whole point in price. We are seeing money managers and pension fund buyers come in and bid on mortgages which is good for everyone ( keeps rates down ) and we hope to see more come out of the woods as the Fed has gone bye-bye in the market…

For those of you that work for Remax... CONGRATULATIONS.. Looks like Bank of America has decided to have you sell all their short sales.. Looks like your going to be very busy!!

Till Later
Thorsten Bernacki

Market Update from Envoy Mortgage

Good News Everyone... After a relentless week of worsening MBS ( mortgage backed securities ) we are up +17/32 far above the 9:45 et pricing of +3/32. A very storng 10 yr auction and stock market decline have helped rates.

Tomorrow jobless claims and the 30yr auction will take place.

We will keep you posted.

Visit our web site by CLICKING HERE

Thorsten Bernacki

Morning Update

GOOD NEWS EVERYONE!! The Feds have decided to retain (and not sell) the 1.25 Trillion in securities that they are holding. A sale of those securities would increase rates in a fast way. Other news is that another wave of foreclosures are upon us which means that these homes need to sell. If you are a realtor, now is the time to get a hold of those properties and put them on the market.

64% of Americans feel that now is the time to buy. With rates still historically low and the fact that home prices have dropped to the point that it makes more sense to own rather than rent, we should see a nice uptick in purchases in the coming months. Combine that with the fact that Home Depot is hiring for the first time in 4 years we are all hoping that the market is improving.

Don’t forget that this perfect time to buy may be short lived. As the economy improves home prices and rates will climb. If you are a buyer, get out there and take advantage of the tax credit. You need to be under contract by the end of this month. If you are a realtor or attorney, educate your clients. They will be glad you did.

Market updates to follow

Thorsten Bernacki

Preserving the dream of home ownership

Market Update

Well, its almost the end of the day and MBS prices are up +7/32 slightly below the 9:45 ET pricing of +8/32. No economic data was released today, however, the FOMC ( Federal Open Market Committee) revealed that nearly all Fed officials were in favor of holding the Fed funds rate very low for quite a while. With tame inflation, they want to allow the economy additional time for improvement before tightening. Can someone say we are going to raise rates when we feel that we are ready to do so !!! So we know rates will go up but the question is when. Lets all pray they stay down for a long time..

Demand was average for the 3 yr auction, foreign investors purchased 52% of the total. The DOW was down 10 points and tomorrow the results of the 10 yr auction will be announced at 1pm ET.

If you know of anybody in need of regular useful updates send them to my blog.
If your in need of a professional, direct lending mortgage company that funds everything in-house, have them visit our web site by CLICKING HERE.

Have a great night
Thorsten Bernacki

New FHA Upfrom Mortgage Insurance Premium

In an effort to recoup losses on FHA insured loans the government has imposed the following changes effective on all case numbers pulled moving forward


Purchase transaction and full credit qualifying refinances = 2.25%

Streamline refinances ( all types )= 2.25%

Hope for homeowners ( Delinquent Mortgagors ) = 2.00%

Hope Equity Conversion Mortgages = 2.00%

This is up from the standard 1.75%

Annual Premiums ( collected per month ) will not change at this time


For more info on mortgage products CLICK HERE

Yesterdays Market Update

Mortgage Backed Securities prices are down -9/32 far below 9:45 et pricing of +1/32, but up from a low of -12/32. Unfavorable repricing took place. Stronger than expected economic data hurt MBS markets. The ISM Services index came in at 55.4, above the consensus of 53.5. Following an 8% decline in January, February Pending Home Sales increased 8%, compared to expectations for a small decline. The Dow is up 50 points. Tomorrow, the FOMC Minutes from the March 16 Fed meeting will be released at 2:00 et. The results from the 3-yr auction will be announced at 1:00 et.

The economy appears to be improving with a reduction of unemployment numbers, the DOW gaining strength, and a modest increase in pending home sales for Feb. With this good news in the economy the fuel exists to raise interest rates which are at historic lows. Those floating rates may want to consider locking as further improvements to the economy will lead to higher interest rates.

More updates to follow....

Americans Still Want to Own a Home, but Are More Cautious

Survey Shows More Cautious Approach among Consumers

The survey revealed that homeowners and renters alike are taking a more cautious approach to homeownership. Nearly a quarter of renters polled (23 percent) say they will buy a home later than once planned. In addition, Americans with traditional, fixed-rate mortgages with predictable payments are significantly more satisfied than those with other types of mortgages. Respondents cited non-financial reasons such as safety (43 percent) and quality of local schools (33 percent) as driving factors in wanting to own a home, ahead of financial considerations.
"Consumers are still committed to owning a home, but are showing increased cautiousness, regardless of whether they rent, own their homes outright or have a mortgage," said Doug Duncan, Vice President and Chief Economist, Fannie Mae. "They are rebalancing their attitudes toward housing and homeownership by adopting a more realistic, long-term approach, and are less willing to take risks. This focus on sustainable housing is better for the economy, better for the housing market and better for America's families."
A majority of consumers (60 percent) believe that buying a home today is harder than it was for their parents, and nearly seven in ten (68 percent) think it will be even more difficult for their children. Most respondents (88 percent) also believe that walking away from an underwater mortgage is not acceptable, but those who know someone who has defaulted are more than twice as likely to have seriously considered stopping payments on their mortgage.
Key Survey Findings
The following key findings illustrate broad consumer perspectives on a range of related issues, including: current attitudes toward the economy and housing; present conditions for homeownership; owning versus renting; the present climate for borrowing; current mortgage satisfaction; the impact of being "underwater" on borrowers; and attitudes toward defaulting. In some instances, data are compared to a 2003 study on housing by Fannie Mae.
Housing and the Economy
• Eight in ten respondents consider homeownership important to the economy.
• Only 31 percent think that the economy is on the right track, but 44 percent expect their personal financial situation to improve in the next year. Delinquent borrowers are even more optimistic about the future, with 63 percent expecting they will be in a stronger financial position in the next year.
• Nearly two-thirds of respondents (64 percent) think it is a good time to buy a house, and nearly one in three (31 percent) think now is a very good time to buy a house. This is nearly as many who said it was a good time to buy in 2003 (66 percent), well before home prices peaked.
• Nearly three-quarters (73 percent) think housing prices will go up or stay the same over the next year, including 37 percent who think prices will increase and 36 percent who feel prices will remain about the same.
Desirability of Homeownership
• Seven out of ten respondents (70 percent) said they believe buying a home continues to be one of the safest investments available. This compares to 74 percent who think putting money into a bank account (money market or savings account) is safe. In contrast, only 17 percent believe buying stocks is a safe investment.
• Nearly two-thirds (65 percent) of survey respondents prefer owning to renting, citing non-financial reasons such as safety (43 percent) and quality of local schools (33 percent) as driving factors in wanting to own a home, ahead of economic considerations.
• Americans with 30-year fixed-rate mortgages are significantly more satisfied (93 percent) than those with other types of mortgages (76 percent for those with hybrid ARMs and 68 percent for those with ARMs).
Renters' Views on Renting and Homeownership
• Nearly eight in ten renters (79 percent) participating in the survey believe that renting has been positive for them and their families.
• The two most common reasons cited by renters for choosing to rent instead of buy are: the belief that their credit history is not good enough to qualify for a mortgage (54 percent) and that they would be unable to afford the purchase or upkeep of a home (47 percent).
• Nearly seven in ten renters (67 percent) plan to buy a home at some point in the future.
• Less than half (44 percent) of those who currently rent said they would buy a house if they were to move, and 23 percent said they would purchase a new home later than they planned.
Challenges Facing Homeowners
• Most respondents (60 percent) believe it is harder for them to get a mortgage in order to purchase a home than their parents. Nearly seven in ten (68 percent) think it will be harder for the next generation.
• Survey respondents cited poor credit (22 percent), their income (19 percent), job security (15 percent) and having enough for a down payment (also 15 percent) as the top obstacles to obtaining a home loan.
• The majority (76 percent) expressed some degree of confidence that they would receive the information they need to choose the right loan if they bought or refinanced a home today, although only 47 percent said they are "very confident."
Attitudes about Delinquency
• Nearly nine in ten Americans (88 percent), including seven in ten who are delinquent on their own mortgages, do not believe it is acceptable for people to stop making payments on an underwater mortgage, while eight percent believe it is acceptable.
• However, when asked if financial distress makes stopping payments on an underwater mortgage acceptable, 15 percent of respondents said yes, or nearly double the eight percent who believe it is acceptable generally.
• Both delinquent mortgage borrowers and those current on their mortgage payments are more than twice as likely to have seriously considered stopping their payments if they know someone who has already defaulted.
Survey Methodology
From December 12, 2009 — January 12, 2010, Penn Schoen Berland, in partnership with Oliver Wyman, conducted 3,451 telephone interviews with Americans age 18 and older.
This included a random sample of 3,051 members of the general population, including 887 homeowners, 1,110 mortgage borrowers, 908 renters, and 338 underwater borrowers (those who report owing at least 5% more on their mortgage than their home is worth). The overall margin of error for the general population sample is +/- 1.77% and larger for subgroups.
An additional oversample of 400 random national delinquent borrowers was also polled. The margin of error for the delinquent oversample is +/- 4.9% and larger for subgroups. Delinquency was defined as not having made a mortgage payment in the past 60 or more days.
For more information about the survey, visit http://www.fanniemae.com/about/housing-survey.html

Welcome

Welcome to my blog. Starting soon I will be providing crucial daily updates on the market and changes to the industry. Education is the key to surviving this market and more importantly the key to ensuring our clients have a smooth transaction.