Spring is here and I would like to take the opportunity to give everyone an update on the mortgage and Real Estate industry in MN.
Long-term mortgage rates remain very low and the Federal Reserve has been lowering short-term rates. The Prime-lending rate is currently at 5.25%. Now is a great time to "Fix Your ARM" and lock in to a low fixed rate. With a combination of the new MN lending laws and the credit crunch the economy is experiencing, it is becoming more difficult for people to borrow money. However, there are still many great loan programs out there and the government is trying to get people to buy more homes. For example, the new FHA loan limit in the Twin Cities Metro Area is $365k, which is about $90k higher than the old limit. By raising this limit the government is willing to insure more home mortgages as they are trying to get lenders to start borrowing money again. Now is a fantastic time to purchase a home.
With all of the tightening is the mortgage industry, inventory of homes on the market remains very high. The number of new listings is down but the number of homes selling each month is down as well. The number of foreclosures keeps growing and you see more and more bank owned or short sale properties on the market all the time. Because of this, the Twin Cities Metro Area and some additional counties throughout MN are considered to be in a "declining market." While the news seems glum, Real Estate is cyclical and values will go up once again. Homeownership is the staple to building wealth.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment