MARKET UPDATE - JULY 2010

INTEREST RATE UPDATE

Mortgage Type Interest Rate (APR)

30 Year Fixed 4.250% (4.381%)
15 Year Fixed 3.750% (3.977%)
5/1 ARM 3.250% (3.407%)

Interest rates as of 06/24/10. Conforming interest rates. Interest rates and APR based on loan amounts not to exceed $417,000. Loan to values not to exceed 80%. 720+ credit score. Owner occupied only. Purchase and rate in term refinances. Not all applicants will qualify. Call today for your individual scenario rate quote.

NEW HOMES SALES CRASH TO A RECORD LOW

New homes sales in May fall over 18% from the previous year. This is the slowest month for new homes sales since the Commerce Department started recording such data going back to 1963.

The fall in new homes sales in May comes after good numbers in April which were likely inflated due to the first time home credit that ended for buyers not under contract by April 30th. Those that were under contract by April 30th must close on those transactions by June 30th. There are hopeful signs that the deadline will be extended until September 30th, as many homebuyers are struggling to close on time due to the slow and tumultuous underwriting process. Yes, you read that right. Home buyers that were under contract on or before April 30th may need until September 30th to close on their mortgage transaction; four plus months!

“The government report showed that the median price of new homes sold in May was $200,900, down less than 1% from April but a 9.6% drop from May 2009. An estimated 213,000 new homes were for sale at the end of May. At the current sales pace, the government expects it will take 8.5 months to sell through that inventory, up from 5.8 months in April. Six months of inventory is considered normal market conditions.” – cnnfn.com

Existing home sales, according to the National Association of Realtors, declined 2.2% in May. “The NAR report showed that the median price of homes sold in May was $179,600, up 2.7% from a year ago. Just under a third of homes sold during the month were distressed properties.” – cnnfn.com

HOME SHORTAGE

According to a CNN article published in June, the number of new homes started in April was 672,000. Based on the population growth of the United States, those housing numbers are less than 50% of the number of homes that would be needed long term to meet the demand of our Nation’s current growth. Until the job market recovers there may be an over abundance of homes on the market, but that could quickly lead to a housing shortage with an economic recovery.

BUY AMERICAN AND AMERICAN DEBT

The United States is buying what it seems to believe in; U.S. Treasury debt. The U.S. surpassed Japan and is now the second largest holder of Treasury debt. China still remains the number one holder of Treasury debt.

China currently holds $895 billion in U.S. Treasurys. The U.S. households own $796 billion. Japan places third at $785 billion.

The surge in U.S. bonds by U.S. households is once again a flight to safety, or perceived safety, as the U.S. stock market remains volatile and the financial crisis in Europe unfolds.
HOMEPATH REVISITED

Looking for good financing options on a new purchase? HomePath offers some of the best financing available if purchasing a home owned by Fannie Mae. HomePath allows a qualified buyer to purchase a Fannie Mae owned home with little money down, NO mortgage insurance, and no appraisal. That will save you both time and money. Fannie Mae will also credit 3.5% of the purchase price towards buyers closing costs.

Owner Occupied: 97% Loan to Value – No Mortgage Insurance
Non Owner Occupied: 90% Loan to Value – No Mortgage Insurance

Find properties at www.HomePath.com. For financing options, contact Geneva Financial, LLC for the most competitive HomePath financing options.
HOME OWNERS SEEKING HELP

Refinance up to 105% of your homes value. If you owe more than your home is worth and do not know what to do, please give us a call. Geneva Financial, LLC offers federally funded mortgage options that may allow you to refinance your current mortgage into a lower monthly payment. We do not do loan modifications.

Need help with a short sale. Geneva Real Estate & Investments, LLC has many seasoned short sale real estate specialists that will help sell your home at no cost to you.

Our two companies are working hard to help distressed homeowners.

MARKET UPDATE brought to you by:

Aaron VanTrojen

PRESIDENT
Geneva Financial, LLC
Mortgage Banker licensed in:
AZ: BK-0910215, CA: 603G564, ID: MBL6976, NV: 3195, OR: ML4799, WA: 510-MB-49323
Geneva Financial, LLC NMLS License: 42056
Loan Officer NMLS License:15420
http://www.genevafi.com/

PARTNER
Geneva Real Estate & Investments, LLC
Real Estate Brokerage licensed in: AZ, CA, WA.
http://www.genevare.com/

Office: 480-368-2000
Cell: 602-793-6383
Email: aaron@genevafi.com
Facebook: www.facebook.com/vantrojen