Fall Home Sales Push

It seems yet again amid all the mortgage turmoil that the fall push has begun. Increased mortgage activity is something that has been atypical for this industry lately. At times the mortgage market can be very predictable even in the most unstable environment. The months of September, October and November have always been "good" months for the real estate market and hopefully, god willing, this year will be no different.

We have several key factors that are conducive to a late fall push in homes sales. First, rates are very good with a 30 year fixed rate mortgage holding strong at 6.125% and should drop after September 18th when the fed is expected to decrease the Federal Funds Rate by at least .25%. Second, the secondary market has relaxed a little bit on mortgage backed securities mostly because of relaxing underwriting standards on the FHA product, the increased liquidity on the banking market to fund loans, and the tightening of underwriting standards for sub-prime products. You may be asking yourself, why would tighter underwriting guidelines benefit the mortgage market. Well in the eyes of the secondary market tighter standards mean more quality loans, which then translates into reduced risk and increased profit margins, which then should, hopefully, spark new trends in this market and in turn increased mortgage activity. Third, it is a "buyer's" market. If you are in the market for a home there is no better time to purchase as both sellers and builders are discounting homes in order to reduce inventory and interest costs before the winter months. A savvy buyer can use this to their advantage and strike a great deal on a new or existing home.

Let the fall push begin, every lender, seller, builder, agent, appraiser and title company are ready to service you in your quest to purchase a home. The market needs, wants and desperately requires increased sales. Are you ready?

Brought to you by Professional Mortgage Group.

Your Columbia Missouri Mortgage Broker