Notes and Opinions from one of Arizona's Most Trusted Loan Teams

We are seeing increasing signs of recovery for housing in Arizona. Pending escrow numbers have continued to increase throughout the state. Many of our REALTOR friends are reporting that they are very, very busy. Buyers are starting to commit. Our office is busy with new applicants every day. This is a pleasant change from the horrible stillness that pervaded the market late last year.

Investors and first-time buyers continue to dominate the buyer profile. Both are motivated by very low prices and very low rates. 30 year fixed rates continue to hover in the high 4% to mid 5% range for single family dwellings with loan sizes at $150,000 or higher and great credit. They will be somewhat higher for smaller loans and more modest credit scores, but they remain historically low.

Manufactured homes still have some rate premium attached. Average 30 year conventional rate is around 6.25% this week, with FHA around 5.625%.

The Mortgage Bankers Association increased its estimate of total mortgage originations to an annual figure of $2.87 Trillion dollars for 2009. This would make it the fourth largest year in history for mortgage originations. A lot of this business is refinancing as many people try to get out of adjustable rate loans, or just take advantage of the current rates. However, it is creating some service issues as the bank underwriting departments are flooded with new applications ready for approval. When the loan application processing has been completed, this final approval step is taking much longer than in times past.

Agents and buyers with purchase-money transactions are urged to be careful of close of escrow dates, rate lock expiration, and other issues that may come up when the final approval process becomes extended. If you aren't getting good information from your mortgage originator, you may need a new one. Try us next time!