Month of June , 2006

Interest rates increased on Monday to 6.75% on a 30 year mortgage. By mid-June Long-Term rates are up almost a pull percent for the year. The effect of this movement has been wide-spread. Foreclosures, which were already at an all-time high, will be pushed even higher. In some areas foreclosures have increased by as much as 100% or last year’s numbers.

The Short-Term rates have also seen huge increase in the past 12 months. The rates move directly with changes in the Prime Rate. Short-Term rates have moved up well over 1% in the past 12 months.  read more »

The current market conditions have changed considerably throughout the United States. I was in Orlando, Florida last week, and in one of the country’s hottest markets of last year things have cooled down. Last year at this time there were 3,000 single family homes on the market. As of February 28th there were 12,000 single family homes available. The newer developments that I drove through had For-Sale signs all over. Investors were trying to sell or rent a strip of town homes and a number of homes were For-Sale in the neighborhood. What is causing the change?  read more »