The mortgage industry has been relatively quiet lately - there were a few changes  at the beginning of the month, but in general rates have remained in the mid to low five’s and been showing no real indication of moving in the short term.

However! There are to be some changes in a few short weeks (December 11, 2009 as its “effective date” for the changes) – Fannie Mae is getting tougher on Mortgage Insurance, Credit Scores and Income levels! In an internet document FNMA discussed guideline changes -  summarized, below:

• Minimum credit score requirement raised to 620
• Total debt-to-income levels may not exceed 45%, except in exceptional circumstances
• Loan-level pricing adjustments for loans with “minimum” PMI coverage.

Loan-level pricing adjustments are specific fees assessed for specific risks. Based on the current lender guidelines, if your credit score is low, or if you’re doing a cash-out refinance or if you live in a condo and have little equity, you’ll pay an extra fee to Fannie Mae for your mortgage. This adjustment has been around since April 2008 and has been modified 9 times since then!

Home sales are increasing and as mentioned earlier this month, inventory is falling in Sedona, the last chance to purchase a great home at a great price is about to pass many by! Act now to get the best deal! (First time homebuyers get a tax credit – act before it disappears!)

We will keep you posted with the latest as it happens – Click here to subscribe to our RSS Feed.

Realty Times poses the question: Arizona: Is Now THE Time to Invest in the Grand Canyon State? The answer seems to be a very firm – YES!

If you have decided that you would like to own a home in Sedona as a full time resident or part time then contact Claudia Ault and her team in downtown Sedona.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.

So you have decided to take advantage of the real estate market and purchase that dream house, the next question you have to answer is: how am I going to pay for it!?

Well, if like most people you will use a mortgage to fund the purchase of a property. However, shopping for the right loan can be tiring. But not any more! The Federal Reserve has written a great handy guide with 5 key things for consumers to think about when shopping for a loan.

They identify 5 key points to consider:

1. Don’t take on more than you can handle .

2. Shop around different lenders and brokers.

3. Understand all costs – If you are not sure what all the fees are for, then ask!

4. Learn the benefits and risks involved with the product – Fixed rates are the norm these days, however adjustable rate mortgages (ARMS) work for alot of people.

5. Ask for advice - Talk to family and friends for their personal recommendations and opinions - their input could help save you thousands if they know of a better option for you!

Realty Times poses the question: Arizona: Is Now THE Time to Invest in the Grand Canyon State? The answer seems to be a very firm – YES!

If you have decided that you would like to own a home in Sedona as a full time resident or part time then contact Claudia Ault and her team in downtown Sedona.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.

The stock market has had its recent rallies and the hosuing market has started to awaken from its slumber, this means that there is only one direction the market is heading, and that is – UP!

Realty Times, along with us here in Sedona have been posting all the positive news about our economy and the housing market.

For instance, nationally, The Pending Home Sales Index by NAR, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from a reading of 94.6 in June, and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007 when it was 100.7. They are calling the last few months a record rally!

Mortgage Rates are also relatively stable in the mid 5’s and are not expected to move for some time.

Here in Sedona, the number of residential listings has gone down by about 10% since January – currently there are 578 units on the market – and in January there were 635.  Also in 2008, the luxury end of the market performed well, with the median price increasing 3.9% compared with 2007.

Also with the economy as a whole stabilizing, consumer confidence has been boosted. While spending habits may have changed, people are starting to open their wallets again and spend money on vacations and luxury items.

 What is sure is that if the only direction is up, and inventory is falling then now is the time to act to get that dream home at a great price.

Click here to subscribe to our RSS Feed.

Realty Times poses the question: Arizona: Is Now THE Time to Invest in the Grand Canyon State? The answer seems to be a very firm – YES!

If you have decided that you would like to own a home in Sedona as a full time resident or part time then contact Claudia Ault and her team in downtown Sedona.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.

Congress is back in business and they are debating the next set of legislation which is aimed at reforming the mortgage industry

According to the National Association of Realtors and Realty Times there must be a balance between safeguarding consumers in the lending process and ensuring reasonable access to mortgage capital. Therefore in support of Congress, NAR has said that reform to the mortgage lending system is needed to restore consumer confidence in the economy and the housing market.

The recently introduced Mortgage Reform and Anti-Predatory Lending Act of 2009, H.R. 1728, contains many of the reforms NAR has been seeking. The bill makes many reforms including one which would require lenders to retain at least a five percent credit risk on every mortgage they write that is not a 30-year fixed rate. However, the bills main role is to remove or cut down risky mortgage features such as negative amortization, interest only and short term adjustable rate changes.

The positive outcome of this would be more simple 30 year fixed products coming to the market for borrowers.

Naturally there are some skeptics who want to avoid over regulation, however the main aim is to ensure consumers get more choice and access to safer mortgage products.

If you have decided that you would like to own a home in Sedona as a full time resident or part time then contact Claudia Ault and her team in downtown Sedona.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.

According to the National Association of Realtors the Federal Housing Administration is key to the housing market recovery process.

With the collapse of many major banks the FHA has come into the fold as the primary source of financing for millions of Americans looking to purchase a home.

Over the past 18 months, FHA has handled an increase in volume four times greater than 2007 levels, increasing its market share to over 30 percent. Also the U.S. Department of Housing and Urban Development has made a number of important and valuable changes to FHA over the years that has enabled it to stand up to the challenges of today’s mortgage market

FHA has handled its role and volume increase well, for instance in utilizing the $8,000 first-time home buyer tax credit to allow buyers to apply it toward downpayment requirements. This has helped bring much stability to the national real estate market.

Here in Sedona the market is recovering well. Buyers are taking advantage of a great selection of inventory available, low mortgage rates and increasing levels of financing becoming available.

If you have decided that you would like to own a home in Sedona as a full time resident or part time then contact Claudia Ault and her team in downtown Sedona.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.

Summer 2009 is almost here and things are starting to hot up in the Real Estate market!

With signs of a national housing marketing turn around lead by the west of the country as well as a surge of mortgage applications nationwide things are looking on the up!

After all home prices are at their most affordable for decades, consumers are benefiting from the lowest mortgage rates in nearly half a century (with fixed rates in the four percent range!) and there is a great selection of homes available!

In fact, for mortgage applications the increase is welcome news – applications for purchases of resale and new homes were up eight percent for those using conventional loans, and a remarkable 17 percent gain in applications to buy houses using low-downpayment FHA mortgages.

Americans are also feeling more optimistic about the economy with a new poll showing that consumer confidence was up. This also is translated in buyer affordability with 55 million American households being able to afford the median house price – up 45% in the last 24 months.

This is very encouraging news. It is a sign for those who are renting that the time to buy really is now and that they may be left behind if they do not act fast. With 30 year fixed rates so low owning a home is now in many cases cheaper than renting. Combined of course with the $8,000 tax credit for first time home buyers and purchasing a property now is a very attractive option indeed!

If you have decided that you would like to own a home in Sedona as a full time resident or part time then contact Claudia Ault and her team in downtown Sedona.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.

Mortgage rates hit the lowest they have been since mortgage rates began being tracked in 1971.  The average rate for a 30 year fixed mortgage wound up at 4.85% for the week ending Thursday March 26.  Not a bad mortgage rate for those either refinancing or purchasing a new home and the drop shows that the government’s commitment to invigorating the housing market is working, at least to some extent.  The decrease in interest rates means that mortgage debts held by existing home owners can become more affordable when they are refinanced.  The low rates also might entice those waiting on the sidelines to enter the real estate market.

The lower mortgage rates are an effect of the Federal Reserve committing to an influx of cash in the Treasury, a plan meant to stimulate the housing market.  A recent Reuters Article quoted Lawrence J. White, professor of economics at New York University’s Stern School of Business, as saying “everything helps when it comes to the U.S. housing market and lower interest rates on mortgages should make it easier for buyers to enter the market and absorb supply, which is still quite high.”  Lower mortgage rates, tax incentives and decreasing home values should all add up to more affordable real estate across the board.

For a complimentary search of the Sedona MLS and access to all property currently on the market in Sedona AZ, visit www.claudiaault.com. For the best in Sedona Real Estate service and knowledge, contact Claudia Ault at 928-301-3016.