News I do not want to Hear: Should you buy a house?

Often you come across a graphs and try to understand them. Below is a time line, I am sure, will be a graph you eventually be looking at in the future. If you are concern, so am I. My interpretation appears to be a situation that created the housing bubble burst in the past. This time however, Freddie Mac may be the creator, by loosening credit, to a low level.

I understand, because of the housing crisis many people credit were ruin. We all know about the short sales and foreclosures. We all know, the record amount of people on food stamps and been unemployed for an extended amount of time, some have said to stop looking all together. Also, the “good” employment report, sounds like a favorable one, does not appears to tell the real truth.

Should you buy Now? 

You should know best your financial situation, and if you can afford to buy,

What stopping you?

Drop me an email, please let me know: or
attend  See You at the Fair.  If you been sitting on the fence paralyzed, thinking too much, you lost equity in your delaying on a house you could had brought.

Pricing been moving upwards as shown by the articles below. So has Interest rates. This is making home affordability harder, missing your opportunity on a house you could had brought a year ago at a lesser price, and at lower interest rates.

I Never want to be involve with a buyer, that can not afford the purchase they are about to make, and get themselves in serious trouble in the future. It heartbreaking.

Hope I got you thinking some. There is good news; there are also news that concerns me. Check your credit scores and finances. If all is well, but your credit scores are low, you still can get a loan, Go for it.

If you want, you can fellow interest rates , get articles about them and best of all, download an E-book on  Demystifying the Mortgage Process    at
Demystifying the Mortgage Process

Learn various thing about Lee County and Real estate A journey in Real Estate
But best of all attend the March 8, Buyer’s Fair. You can answers to your questions there for Free >  See You at the Fair.

Thanks for reading my post.

Till next time.

Ronald Wolchesky
Century 21 Birchwood International

Freddie: Rising Mortgage Rates Chip Away at Affordability

Daily Real Estate News | Friday, December 20, 2013

The majority of housing markets remain affordable to the average family, but rising mortgage rates and rising housing prices are causing more families to have to stretch financially, according to Freddie Mac’s U.S. Economic and Housing Market Outlook for December.

“Rising mortgage rates and rising housing prices over the past six months are making it more challenging for the typical family to purchase a home without stretching beyond their means, especially in the Northeast and along the Pacific Coast,” says Frank Nothaft, Freddie Mac’s chief economist. “Like most, we expect mortgage rates to rise over the coming year, so it’s critical we start to see more job gains and income growth in the coming year. This will help to keep payment-to-income ratios in balance — an important factor not only for first-time buyers but for sustaining homeownership levels among existing owners.”

According to Freddie Mac’s report, more than 70 percent of the nation’s housing stock remained affordable to the typical family in the third quarter at a 4.4 percent interest rate for a 30-year fixed-rate mortgage. However, that percentage decreases to about 63 percent at a 5 percent mortgage rate;  55 percent at a 6 percent interest rate; and 35 percent at a 7 percent interest rate.

Source: Freddie Mac

Freddie: 4th Straight Week of Rate Climbs

Daily Real Estate News | Friday, February 28, 2014

For the fourth straight week, the averages on fixed-rate mortgages edged higher, Freddie Mac reports in its weekly Mortgage Market Survey.

“Mortgage rates edged up, with new-home sales exceeding expectations and rising to a seasonally adjusted pace of 468,000 units in January, the strongest annual rate since July 2008,” notes Frank Nothaft, Freddie Mac’s chief economist.

Freddie reported the following national averages with mortgage rates for the week ending Feb. 27:

  • 30-year fixed-rate mortgages: averaged 4.37 percent, rising from last week’s 4.33 percent average. A year ago at this time, 30-year fixed-rate mortgages averaged 3.51 percent.
  • 15-year fixed-rate mortgages: averaged 3.39 percent, up from last week’s 3.35 percent average. Last year at this time, 15-year rates averaged 2.76 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.05 percent, dropping from last week’s 3.08 percent average. A year ago, 5-year ARMs averaged 2.61 percent.
  • 1-year ARMs: averaged 2.52 percent, dropping from last week’s 2.57 percent average. A year ago, 1-year ARMs averaged 2.64 percent.

Source: Freddie Mac

It’s Taking Less to Get an FHA Loan

Daily Real Estate News | Friday, February 28, 2014

First-time and low-income mortgage borrowers may have an easier time qualifying for a Federal Housing Administration loan. Ginnie Mae, a government agency that issues bonds backed by FHA loans, reports that the average credit score on FHA-backed loans fell to 680 in 2013, and the average debt-to-income ratio rose to 40.3 percent — both indicators that credit may be easing.

In comparison, Ginnie Mae reported in January 2013 that the average credit score was 701 and the debt-to-income ratio was 38 percent.

Since last month, Wells Fargo reportedly has been qualifying FHA borrowers with credit scores as low as 600, down from a previous threshold of 640.

“The FHA theoretically allows credit scores as low as 580,” the L.A. Times reports. “But lenders, buffeted by defaulted loans and demands that they buy back troubled mortgages that they sold, generally have set standards higher since the mortgage meltdown.”

Source: “Average Credit Score Falls on FHA Loans,” Los Angeles Times (Feb. 27, 2014)