Mortgages, Monies and Markets

The Mortgage Market is in an uncertain turmoil - on the one hand some homeowners are struggling to keep up with their mortgages while dreading the seemingly inevitable pink slip. Lucia Mutikani of Reuters reported today from Washington that "The number of U.S. workers filing new claims for jobless benefits surged to a 26 1/2 year high last week..." She goes on to say that Thursday's data showed "..that layoffs have yet to peak even as other signaled some improvement in the economy.

Other homeowners are trying desperately to reduce their monthly mortgage payments, in sometimes futile efforts, to keep possession of their homes. Loan Modification and Loan Restructuring does not work for all.

Buyers, on the other hand, are seeking to take advantage of the $8000 tax credit offered to first-time home buyers as part of the stimulus package. Many are not finding it easy though, as the guidelines Banks are now using to make home mortgage loans are so restrictive, few can qualify to buy a home at this time. Due to the foreclosure crisis home values have plummeted, making homes cheaper to purchase. Due to recent developments in the market and the actions of the government interest rates for 30-year fixed conforming loans are now below 5 percent.

According to Alan Zibel, a Real Estate Writer with the Associated Press "Mortgage finance Giant Freddie Mac said Thursday that the average rates on 30-year fixed-rate mortgages dropped to 4.78 percent this week..." Yet many who would want to buy, cannot. They are just not able to qualify. Insufficient income, weak or shaky credit and a lack of required reserves (liquid assets) in the bank often elicit a negative response from lenders.

Reports are, however that the ongoing recession appears to be levelling off. With the G20 meeting in London as a backdrop it appears that some minimal policy successes were achieved for attacking the flagging world economy. Yet with contrary economic philosophies between the U.S. and Britain on the one hand and Continental Europe; led by France and Germany on the other, enactment of agreed upon policies will be predicated upon local (national) politics - not the photo ops.

Meanwhile, in the U.S. and across the globe Mortgages are difficult to acquire, Money is scarce and the Market is uncertain.