This Month In Real Estate(Market) 
Westchester NY County and Bronx Ny County
 

Buying opportunities abound for value-savvy home shoppers in select markets across the nation, where prices have fallen to 2003 levels. While home prices are still declining on a year over year basis, they are falling at the slowest rate in five months, which indicates a degree of stabilization compared to recent months.

Attractive prices, coupled with strong affordability and mortgage rates below 5%, translate to more buying power for homebuyers. Buoyed by the $8,000 federal tax incentive, first-time buyers represented the majority of transactions closed last month. Their activity is expected to remain high and reduce the glut of homes on the market.

According to Charles McMillan, “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment. For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”

Another positive factor is the return of the jumbo loan. For nearly a year, it has been almost impossible for buyers to find financing for homes selling for more than $417,000. Bank of America recently began offering a 30-year fixed rate jumbo at less than 6 percent. Other banks are starting to follow suit.
Home sales and other consumer spending data combined with big earnings at some banks indicate that the U.S. economy is on the road to a gradual recovery this year. "The economy is still very weak, but there are some encouraging signs that support cautious optimism," said Dennis Lockhart, president of the Federal Reserve Bank of Atlanta.


 
Mortgage Rates
30-Year Fixed

•  Mortgage rates averaged 4.78% for the final week of April. This equals the record low that was set in the first week of April and is significantly lower than the 6.06% the same time last year.

• The Federal Reserve continues to stay committed to its plan to hold official interest rates low amidst slower economic growth

Monthly Mortgage Payment Table

Assuming: 5% down payment and 30-year, fixed-rate mortgage
Payment: Principal and Interest Portion Payment

 

                              Mortgage Rates ---------------------------->

(In-housands)    

4.55%

5.0%

5.5%

6.0%

6.5%

7.0%

$100k

$481

$510

$539

$570

$600

$632

$150 k

$722

$765

$809

$854

$901

$948

$200 k

$963

$1,020

$1,079

$1,139

$1,201

$1,264

$250 k

$1,203

$1,275

$1,348

$1,424

$1,501

$1,580

$300 k

$1,444

$1,530

$1,618

$1,709

$1,801

$1,896

$350 k

$1,685

$1,785

$1,888

$1,994

$2,102

$2,212

$400 k

$1,925

$2,040

$2,158

$2,278

$2,402

$2,528

$450k

$2,166

$2,295

$2,427

$2,563

 $2,702

$2,844

$500k

$2,407

$2,550

$2,697

$2,848

$3,002

$3,160

 

 More Help for Troubled Borrowers


 
Key Changes Announced to Foreclosure Prevention Program
 Making Home Affordable, the $75 billion foreclosure prevention program that was announced in February and officially came out in early March, has recently swung into action. This program allows qualified homeowners to refinance to a lower rate even if their home value has decreased. The second component of this program allows struggling homeowners to modify their loans to make their monthly payment more affordable.
There was a crucial component missing in the original release of the program—second mortgages. About half of borrowers at risk have second loans that make it difficult to substantially lower their monthly payments from modifications to the primary mortgage.
With the new edition, lenders will receive additional incentives to modify these second loans, which include home equity loans. The borrower’s interest rate could go as low as 1% because the government will split the cost of the reduction with the bank. The program aims to help between 1–1.5 million additional homeowners keep their homes. 
For more information, check out: http://makinghomeaffordable.gov/

 

New Hope in " Hope for HomeOwners" 

Hope for Homeowners launched last year with the intent to help struggling homeowners refinance into more affordable mortgages. Lenders’ objections to components of the program, such as reducing the mortgage’s principal, led to its failure. The revived hope in the program lies in the financial incentives for lenders: $2,500 to refinance a borrower into the program and $1,000 per year for three years if the borrower stays up to date on payments. With one in five mortgages slipping “underwater,” the government hopes that this program will combat the lenders’ objections and help more water logged homeowners. Less troubled homeowners hopefully will translate to less distressed sales and a stabilized housing market.
 
For more information on this program, check out
 http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL