Waiting To Purchase or Refinance? My 2010 Boston, Massachusetts Mortgage Predictions: Rates Will Rise

Okay, this is the first time I have ever done this. From here on out while I am in Mortgage Banking I am going to take the fourth quarter of the previous year to do some analysis of what I have read, heard, viewed, etc. and I am going to roll out my annual predictions! Here goes what I have from 4th quarter 2009 and looking into 2010… Yikes

Drum roll please…

www.SmarterBorrowing.com will dominate!

Obviously…

The 30 year fixed Mortgage will be close to 6%

We have had a 30 year fixed in some cases as low as 4.625% on a purchase with 25% down in 2009 (Not including Conventional High balance of $523,750- PLEASE SEE OTHER BLOG. This is a huge change… Please think about purchase/refinancing now. Combined this with with First Time HomeBuyer and Tax Credit extended thru April 2010. These all time low record mortgage interest rates will be long gone very soon. The government will soon no longer be buying mortgage-backed securities and inflation is soon to catch up.

There is still no 30 Year Fixed Jumbo Mortgage which is attractive to Buyers

But this is okay… Jumbo 5/1 ARMs are the product to go with! Banks/Credit Unions/Direct Lenders don’t like 30 year fixed jumbo mortgages right now… and looks to be a while before credit markets get better

The Real Estate Market will not get better until 2011

Ouch… Sorry folks but I think its the truth. Here’s why…

All of the Washington Mutual Option ARM Mortgages that were originated a few years back are up first and second quarter of 2010. This means there will be more foreclosures hitting the market starting 2nd quarter 2010.
The Homebuyer Credit and extended Tax Credit are done in April… Please do not count on this nice little gift from the Government to be extended. Again.
PS The Fed’s Fannie Freddie purchase program is done at some point in 2010 as well. Wow, maybe there are more than a few reasons as to why this Real Estate Market has another year or so to get better.

Well, sounds like a great time to buy in the next few months if you ask me.

Everyone, and I mean everyone will LOVE my Monthly and sometimes Bi – Monthly SmaterBorrowing.com Newsletter : )

Tougher to qualify for FHA Loans

Darn… Borrowers will need to bring more cash to the table, minimum FICO scores will be increased, a hard back end qualifying percent of 45% (monthly percentage of debt to gross income a Bank will allow) and the days of a 6% seller’s concession are long gone. Down to maybe 4%, 3%…? Get your credit were it needs to be, save for a down payment, and do not plan on such a credit towards closing costs and prepaids at the closing.

Please come back to www.SmarterBorrowing.com on a weekly basis to see what Economic Data is relevant with Mortgage Interest Rates and what my opinion is to locking or floating your Mortgage Interest Rate

bc@SmarterBorrowing.com 617.771.5021