News Article From: 06-12-2009
Investors not flipping houses, but renting, an article from azcentral.com, reports that deals on bank-owned homes are driving investor purchases and account for 50 to 70 percent of recent home purchases, according to some experts. It's the ability to generate revenue by renting the homes to tenants that makes the properties such attractive investments. However, there are concerns that the rental market might become oversaturated. Investors have helped fix up many homes and prevented many neighborhoods from becoming littered with abandoned homes. "Homes are being bought, neighborhoods are recovering," said Chaz Smith, senior vice president of the LandSource Group at Colliers International in Phoenix. "Imagine this market today without investor activity."
Bond Yields Push Mortgage Rates to Highest Level in Seven Months, an article from Realty Times, reports that the 30-year fixed-rate mortgage averaged 5.59% with an average 0.7 point for the week ending June 11, 2009, according to Freddie Mac's Primary Mortgage Market Survey. Last week, it averaged 5.29%, and a year ago it was 6.32%. "Mortgage rates followed the increase in bond yields this week as the May employment report showed that the economy lost fewer jobs than the market consensus had expected," said Frank Nothaft, Freddie Mac vice president and chief economist.
Senators Want Homebuyer Tax Credit to Rise to $15,000, an article from Bloomberg.com, reports that lawmakers are pushing to increase the tax credit for first-time homebuyers to $15,000. Additionally, they would like to expand the program to include all borrowers and remove income and other restrictions on who can qualify. The bill was introduced this week by Senator Johnny Isakson, a Georgia Republication and is co-sponsored by Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, as well as a number of other members of the Senate.