1^st Issue of October 2008

Interest Rate Articles from the Experts…

ABC15.com, September 26 - Valley mortgage fraud complaints on the rise
More and more homeowners are filing complaints alleging they are the victims of fraud. 
http://www.abc15.com/content/news/investigators/consumeralerts/story.aspx?content_id=83eab75a-c91a-4417-987c-550911615dda

Seeking Alpha, September 23 - Mortgage Delinquencies Continue to Climb, Watch Out for Other Loans
It's beginning to get really ugly out there... unfortunately 13 months ago when we were told "this is just a subprime issue" we repeatedly said subprime is a symptom of the problem, not the problem - it is the tip of the iceberg - we have alt A mortgages, option ARMs, prime mortgages, credit card loans, auto loans, student loans, credit card debt.
http://seekingalpha.com/article/96967-mortgage-delinquencies-continue-to-climb-watch-out-for-other-loans

Big Builder Online, September 15 - Fed Rate Cut Put Back on the Table
Wreckage from a massive crisis on Wall Street could prompt the Federal Reserve to do an about face and once again cut a key interest rate this week or possibly later this year, economists said Monday. Just a few days ago, a rate cut appeared largely off the table. Now it has emerged as a possibility as the Fed prepares to meet Tuesday against a backdrop of historic upheaval in the U.S. financial system.
http://www.bigbuilderonline.com/industry-news.asp?sectionID=363&articleID=774352

Nation’s Building News, Week of September 15 - Home Buyers See Mortgage Rates Plunge Below 6%
On top of the recently enacted $7,500 tax credit, first-time home buyers received a further boost last week in their efforts to buy a home from a sharp drop in mortgage rates resulting from the recent government takeover of Fannie Mae and Freddie Mac.
http://www.nbnnews.com/NBN/issues/2008-09-15/Front%2BPage/3.html

Business Week, September 15 - Buckle up! Financial ride getting even rougher
It started as a panic attack, soothed by assurances that the problem was limited to a relatively small number of reckless home loans. Now it's clear the crisis was anything but contained -- and that the nation's financial system is dangerously close to the edge.
http://www.businessweek.com/ap/financialnews/D937DLGO2.htm

The Arizona Republic, September 13 - Getting a loan is tough, here's what you need to know
With tighter lending standards and a slumping housing market, opening the door to a home of your own is more challenging than it has been in years.
http://www.azcentral.com/realestate/articles/2008/09/13/20080913biz-homebuyer0913-ON.html

Big Builder Online, September 11 - Rates on 30-Yr. Mortgages Drop to Lowest Level Since April
Rates on 30-year mortgages dropped sharply this week, falling to the lowest level in five months, as the government's dramatic takeover of mortgage giants Fannie Mae and Freddie Mac had the hoped-for impact of lowering mortgage rates.
http://www.bigbuilderonline.com/industry-news.asp?sectionID=0&articleID=772219

Los Angeles Times, September 11 - Mortgage rates are plunging -- for those who qualify
The government takeover of Fannie Mae and Freddie Mac has sent mortgage rates tumbling, prompting homeowners and would-be buyers to flood loan offices with phone calls.
http://www.latimes.com/business/la-fi-rates11-2008sep11,1,5661293.story

Market Watch, September 10 - Mortgage applications rose 9.5% last week: MBA
Mortgage applications filed last week increased a seasonally adjusted 9.5% compared with the week before, as mortgage interest rates decreased, the Mortgage Bankers Association reported on Wednesday.
http://www.marketwatch.com/news/story/mortgage-applications-rose-95-last/story.aspx?guid={FE7D58CA-A787-4371-9965-46987A851AE3}&dist=TNMKTW

Seeking Alpha, September 9 - The Fannie/Freddie Bailout: Consequences to the U.S. Taxpayer
We now know that our government prefers to screw us on the weekend, while we are distracted by football games, errands, and laundry. I noticed that Paulson didn’t mention how much this would cost the American taxpayer during his speech. Two honest Americans, who have been right on this issue for the last two years, John Hussman and William Poole, have concluded that the tax bill will be $250 billion to $300 billion. Mr. Hussman’s analysis is as follows:
http://seekingalpha.com/article/94623-the-fannie-freddie-bailout-consequences-to-the-u-s-taxpayer

Bloomberg, Septemeber 8 - Freddie Mac, Fannie Mae Bailout Lowers Mortgage Rates (Update1)
U.S. fixed mortgage rates dropped about a quarter of a percentage point this morning after Treasury Secretary Henry Paulson announced the federal takeover of Fannie Mae and Freddie Mac. It may be the beginning of a trend.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aFL16l3QSSIY&refer=home

The New York Times, September 7 - Fannie, Freddie and You: What It Means to the Public
So what does the federal takeover of two mortgage finance giants mean to consumers?
http://www.nytimes.com/2008/09/08/business/08consumer.html?_r=2&8mon&emc=yma1&oref=slogin&oref=slogin

Market Watch, September 7 - Washington takes over Fannie Mae, Freddie Mac
In the biggest government bailout in U.S. history, the Treasury said Sunday that regulators are seizing control of home mortgage giants Fannie Mae and Freddie Mac.
http://www.marketwatch.com/news/story/us-government-takes-control-fannie/story.aspx?guid={C99D796B-CB3C-47A8-8A56-284A9A4D5C85}&dist=morenews_ts

The Arizona Republic, September 6 - Mortgage-delinquency rate up in Arizona
More people are falling behind on their mortgage payments in Arizona. New data released Friday show Arizona's mortgage-delinquency rate climbed to 6.05 percent at the end of this year's second quarter. That compares with 5.35 percent at the end of the first quarter.
http://www.azcentral.com/arizonarepublic/business/articles/2008/09/06/20080906biz-delinquencies0906.html

These are links to just some of the interesting articles we have read about interest rates in the real estate market recently. The opinions expressed by these experts are not necessarily shared by Ultimate Information Systems, Inc. If you have “expert” links to share with your peers…Let us know.