National Association of Realtors Convention

The New Normal and Low Interest Rates.

At the National Association of Realtors (N.A.R.) convention in Anaheim this past Saturday I sat in and listened to two discussions about the Real Estate market.

Jeff Collins of the OC Register was interviewing Gary Thomas the President-elect of NAR for 2013.

Jobs is the key to recovery, has been and will always be the driving force to a good housing market and of course is key to our housing growth in our local market.

The national and world economic struggles are also a factor, but its all about jobs that is needed to help renters to become homeowners and first time buyers to enter the market.

Realtors and mortgage lenders must embrace information and technology, information is power, technology is a must.

The consumer demands both!

Today’s buyer and seller has access to so much information from the web, that the industry must always be ready to help the client understand this information.

Be a source of information and technology, no fancy footwork, just great service and be a good listener and be ready to get more information to today’s very savvy consumer.

One note brought up was the new normal for Real Estate and Mortgage offices,

CONSOLIDATE which in in my words is all about “lean and mean.”LOW RATES FORCAST FOR TWO MORE YEARS!!!

Jeff Collins also noted that the latest UCLA forecast has predicyed that while interest rates have been at a all time low they see this all time low to remain until 2013.

The UCLA report indicates that mortgage rates will not go much higher over the next two years. Rates will average around 4 percent in 2012 and maybe go to 4.5 in 2013.

The forecast then projects a steep rise in mortgage rates in 2014, with interest rates averaging 7.3 percent from 2015 through 2017. Source; UCLA Anderson Forecast.


Jeff Collins has gone on to write about the OBAMA PLAN:

The program offered under the two year old Home Affordable Refinance Plan, (HARP).
It is designed to raise the loan amount ceiling made above the value of the home.

Currently ceiling for refinancing is 125 percent of a homes value. That ceiling to be removed for a fixed-rate mortgage that is backed by Fannie Mae and Freddie Mac. Several mortgage brokers have indicated this would be good for the housing market and the local economy.

Paul Scheper a Mortgage Regional Manager calls it a classic “ win-win-win”.

The good news to this is no appraisal and nominal under writing rules to those who qualify.

Laguna Niguel Mortgage broker John Lazerson seems to think that the program will encourage more lenders to participate because FHFA essentially promises lenders that Fannie and Freddie won’t have any recourse if these loans go bad.

That, he says will increase price competition among lenders.

That’s a WIN-WIN for the consumers.

Last note from Jeff Collins;

More than a third of OC Homes Distressed.

No surprise there.

Compiled by John Hacker (01313169), Unity West Real Estate Sales Manager, Newport Beach, California.