Zac Pasmanick - The Zac Team


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Mortgage Refi Rates Hit their Highest Levels Since Last Spring

by the zac team at Ponce Realty

Hello neighbors,

According to a recent survey by the Mortgage Bankers Association (MBA), the act of mortgage refinancing rose 17.1% last week. With the recent rise, mortgage refinancing make-up 81.4% of the total number of mortgage applications.

This number has also proven to be at its highest level since May 2009 as well as the refinancing share of overall mortgage applications being at its highest since last January.

As many who follow the real estate market may recall, mortgage rates began hitting all time lows during the early part of the year and continue to break records with 15-year fixed rate mortgages currently below 4% and 30-year fixed rates averaging between 4.25% -4.5%.

In addition, there was a 13% rise in the MBA's seasonally adjusted market composite index in comparison to the previous week. As for the seasonally adjusted purchase index, there was a decline of 3.4% when compared to the previous week and 38.6% lower than last year's number.

How Low Will They Go? Mortgage Rates Continue to Decline Nationally

by the zac team at Ponce Realty

Greetings neighbors,

We continue to see record lows in mortgage rates throughout the country. According to recent numbers reported by Zillow, their weekly update showed that the 30-year FRM dropped from week to week nationally and hit an average of 4.28%. In comparison to last week's number, the current rate is down 0.1% producing another record low yet again.

Regionally, most of the 50 states witnessed a drop in mortgage rates.

In addition, Zillow reported a national average of 3.85% for 15-year fixed home loans while the rate of 5-1 adjustable-rate mortgage ARM came in at 3.27%.

Hello neighbors,

Even though the real estate market is starting to look more and more appealing everyday with factors such as record low mortgage rates and affordable home prices, those in the market to buy a home still have one major concern. That one concern is, getting approved for a home loan. In today's economy lenders are tightening up on their lending standards. Here are the top 7 reasons you or someone you know may get denied for a home loan.

Poor Credit:

Even though a buyer may have a pretty hefty down payment or good equity built up in their home, if their credit score is not too appealing the chances of obtaining a new home loan or refinance from traditional banks are not too great. Lenders are starting to look for above average credit scores.

Insufficient Liquidity:

Banks are not too keen with taking risk on buyers who do not have a down payment of at least 20%-30% and strong excess liquidity.

Lack of Income:

One may think because he or she has a sufficient down payment (20%-30%), a great deal of equity in their home, and a great credit score that the process of obtaining a loan will be a breeze, think again. Banks want to see at least 2 to 5 years of consistent proof of income. This factor may be somewhat challenging for retired borrowers.

Lying on the Application:

As the old saying goes, lying will get you nowhere and lenders are firm believers in this saying. If you've decided to stretch the truth on your application you've basically decided you don't want to be approved. A few words of wisdom, tell the truth.


As with many things, debt is not necessarily a good look. If the borrowers debt to income ratio is not too appealing, the chances of being approved are pretty slim.


As we mentioned in reason number 3, lenders are looking for at least 2 to 5 years of consecutive work history.

Self Employment:

Although entrepreneurship can be consider a good thing and great accomplishment, lenders are becoming reluctant in approving home loans to borrowers that are self employed.

Although many may think lenders are almost making it impossible for the average borrower to obtain a home loan, one way to look at these changing standards is to remember that this will only better the housing market in the long run.


Hello neighbors,

As for the weekly mortgage rates for the week ending July 22nd, Freddie Mac reported 30-year fixed-rate mortgages to be at 4.56% with an average 0.7 point for the week on their weekly Primary Mortgage Market Survey. This week's average was down from both last week's average of 4.57% and last year's average of 5.20%.

This week's 15-year FRM came in at an average record low of 4.03% with an average 0.7 point which also showed a decrease from last week's average of 4.06% and last year's average of 4.68%.

The 5-year Treasury-indexed hybrid ARM dropped from last week's average of 3.85% to 3.79% this week with an average point of 0.6. Last year during this time the 5-year Treasury-indexed hybrid ARM was sitting at 4.74%.

Lastly, the 1-year Treasury-indexed ARM produced an average of 3.70% with an average 0.7 point this week according to Freddie's report. This number, like the others, also showed a decrease from last week's average of 3.74% and last year's average of 4.77%.

Like the previous weeks, this week's mortgage rates reached record lows for Freddie Mac's survey.

The Number of Single Family Starts Barely Move During June 2010

by the zac team at Ponce Realty

Greetings neighbors,

According to recent numbers from the U.S. Commerce Department, figures barely changed last month in single family housing starts. There was a seasonally adjusted annual rate of 454,000 units last month.

On the multifamily side, there was a decrease of 21.5% producing a seasonally adjusted annual rate of 95,000 units which contributed to the 5% decrease in the overall housing production number, which produced a number of 549,000 unit-rates.

As for a regional breakdown, all four regions experienced declines in overall housing production which produced numbers such as: a decline of 11.3% in the Northeast, 6.9% decline in the Midwest, 2.4% decline in the South, and a 5.9% decline in the West.

Industry leaders state that the decrease in these numbers have had an effect on builders causing a more cautious group.

Financial Reform and its Future Impact on U.S. Homeowners and Buyers

by the zac team at Ponce Realty

Hello neighbors,

It seems that financial reform may have an impact on both home buyers and owners alike in the future. With the recent passing of the massive reform law, take a look at two main components that have potential to make a major impact.

Harder to Qualify for a Mortgage:

The new law governs certain guidelines that lenders must follow when making loans. Now that these guidelines are actually written into law, lenders may find it even more difficult to loosen them once the economy and housing market gets back on track. Under the new law, lenders are required to document the borrower's income. However, this new law does not specify the terms under which the loan can be made. With that being said, lenders may be persuaded to tighten their guidelines to stay within the safe zone of the new law.

Higher Mortgage Rates:

There are a couple of sections within the new law that will increase future mortgage rates. The new law will require lenders to maintain a 5% stake in loans they originate unless those loans meet a particular criteria. With that being said, lenders will not be able to remove some of the higher risk affiliated with these loans. In addition, this will cause the interest rates on these types of loans to increase.

Despite these factors, there are positive attributes to the bill such as consumer protections relating to pre-payment penalties. In addition, with mortgage rates being at record lows, buyers should take advantage now and get qualified for a mortgage opposed to waiting and being affected by the above mentioned components of the new law in the future.

Hello neighbors,

With the recent approval of the new 3 month-home buyer limited tax credit extension, many home-buyers who weren't able to close the deal by the June 30th deadline will experience some relief. Now these home-buyers will have until September 30, 2010 to seal the deal.

Industry experts estimate up to 180,000 homebuyers will benefit from the recent extension.

In addition, those who missed out on the home buyer tax credit will have plenty of other opportunities to cash in on some great deals. For starters, the housing inventory is still generous with affordable prices and the lowest interest rates since the 1950's.

Experts also note that the recovery of the housing market is being somewhat affected by uncertain unemployment conditions which are causing potential buyers to be skeptical about purchasing. Industry experts also feel that it may take a while for things to settle but the market needs to be able to stand alone.

With magnets such as low interest rates, good inventory, and affordable prices, home-buyers should be easily attracted to the idea of purchasing.

Mortgage Rates Experience Very Little Change for the Week Ending July 15th

by the zac team at Ponce Realty

Hello neighbors,

Freddie Mac released their Primary Mortgage Market Survey today for the week ending July 15th. According to recent numbers, there was a tie with last week's record low average for the 30-year fixed rate mortgage which came in at 4.57 percent and an average 0.7 point. In comparison to this time last year, the 30-year fixed rate mortgage averaged 5.14%.

The 15-year FRM came in at 4.06% with an average 0.7 point. This number was a decrease from last week's 4.07% and last year's 4.63%.

As for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) , the survey showed an average 3.85% this week with an average 0.7 point. This was an increase from last week's number of 3.75%. This time last year the 5-year ARM averaged 4.83%.

Lastly, there was an average of 3.74% with an average 0.7 point for the 1-year Treasury indexed ARM. This week's number was a decrease from last week's average of 3.75%. Last year's 1-year ARM averaged 4.76%.

Economists have said that fixed rate mortgages are continuing to stay right around 50-year lows.

Is the Housing Market Close to Experiencing a Double Dip?

by the zac team at Ponce Realty

Hello neighbors,

These days one of the major questions surrounding the real estate market is whether the market will experience a double dip or not? In recent reports, it was found that for every home currently on the market, two homes are waiting patiently for buyers.

It seems that many economists are split when it comes to determining whether the market is heading towards a double dip. Those who believe this argue that due to the tax credit, the rush of buyers contributed to the 29% increase in home sales until the expiration of the tax credit in April. However, home sales plummeted by 33% the next month after the expiration of the tax credit. In addition, pending home sales took a 30% dip in June.

Also, there was a rise in the foreclosure inventory rate from 4.5% to 4.6% during the first quarter as well as the delinquency rate from 9.5% to 10.1%.

Economists who believe the market will experience a double dip also feel the only reason existing home sales did not feel the blow is because they are measured at the contract closing opposed to the signing stage.

CoreLogic Reports Home Prices Up for the 4th Month in a Row

by the zac team at Ponce Realty

Greetings neighbors,

Wondering about the prices of U.S. homes? Well according to CoreLogic, U.S. home prices increased by 2.9% during the month of May, when compared to last year. This increase actually marked the fourth month in a row for yearly growth in this area since a 0.3% yearly increase in February on the CoreLogic home price index.

May's home prices grew 0.9% in comparison to April's prices which was less than the 1.3% gain in prices from March to April. In addition, CoreLogic reported that homes priced at 75% below the median are the main driving force in the recent increase in overall prices.

According to CoreLogic California (7.9%), Virginia (6.8%), Massachusetts (5.7%), Rhode Island (5.5%), and Vermont (5.1%) were the states with the highest increase in prices two months ago. Distressed sales were also included in these statistics.

As for the states with the greatest losses, CoreLogic named: Idaho (-6.6%), Alabama (-5.3%), New Mexico (-4.2%), Maryland (-3.1%), and Wyoming (-3.1%).

According to CoreLogic, despite the recent increase in sales, U.S. home sales today still remain 28.5% below the peak four years ago during April 2006.

Displaying blog entries 1-10 of 21




Contact Information

Photo of Zac Pasmanick  Real Estate
Zac Pasmanick
RE/MAX Metro Atlanta Cityside
600 Virginia Avenue NE
Atlanta GA 30306
Office: 404-564-7272


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