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Document Name: Taos Real Estate Mortgage MARKET UPDATE: Monday 08/04/2008
Document Description:

Market Direction: Rates are: FLAT Rate Volatility: HIGH Interest Rate Trends: Long Term (4-6 weeks): UP Short Term (1-2 weeks): UP

THE \'HOUSING & ECONOMIC RECOVERY ACT OF 2008\"...

WILL IT HELP? IF NOT, WHAT WILL?... On July 30th, President Bush signed into law HR 3221, the \"Housing & Economic Recovery Act of 2008,\" a sweeping $300 Billion rescue plan to help struggling homeowners and boost confidence in the sputtering housing market. The bill itself is very large (over 700 pages) and contains many provisions that can be interpreted in many different ways. I\'ve already seen a lot of conflicting analyses of this important bill in the media.

I am in the process of analyzing it, how it will affect you, and what opportunities it presents to your financial goals and needs. Some of the highlights include new tax credits (not deductions) for homeowners & homebuyers, an extension of higher loan limits at preferred interest rates, and real help for homeowners facing foreclosure. There are also changes to the capital gains tax rules based on how long you\'ve owned a property. This will all work towards strengthening property values in hard-hit neighborhoods across the U.S.

The real question we all want to know: \"where is the bottom?\" I\'ve seen many \"experts\" who seem to think they know the answer to this. None of them do. Neither do I. We\'ve been fortunate here in Taos up to this point: we\'re still seeing gains, even if small, in real estate prices. How much longer can that continue? A good question... with no definitive answer.

Here\'s my analysis: rather than house prices, it\'s financial markets that are limiting recovery. Loans are more expensive and much harder to get. In addition, securitization remains weak. We have a reluctance to lend in the current environment, and that limits the potential pool of borrowers. There\'s only one sign that we have hit bottom: when lenders begin to expand their product lines again. Until they do, there will be no bottom.

Mortgage Interest Rates*

Rates as of Monday, 08 August, 2008:

	Conforming	APR	Payment per $1,000	Jumbo	APR	Payment per $1,000
30-Year Fixed	6.375%	6.489%	$6.24	7.5%	7.602%	$6.99
15-Year Fixed	6%	6.187%	$8.44	7.125%	7.286%	$9.06
3/1 ARM	5.625%	5.734%	$5.76	6.75%	6.847%	$6.49
Land: 5-Year Fixed	6%	6.112%	$6.00	6%	6.093%	$6.00

*Rates are subject to change due to market fluctuations and borrower\'s eligibility.

Members of: Better Business Bureau, National Association of Mortgage Brokers, and New Mexico Mortgage Brokers Association.

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Author: Jim Kimmons, Broker/Owner - Contact Author
Publisher: James R. Kimmons
Licensee Name: Jim Kimmons, Broker/Owner
Reference URL: http://galleryrealtyoftaos.com/index.php?p=1204
Copyright: All Rights Reserved
Registration Date: 8/5/2008 2:24:42 PM UTC
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