Huge Change for Home Appraisals

On May 1st, mortgage brokers will no longer be able to order home appraisals from appraisers who know the area; they will be ordered though an appraisal management service by the lender and will require upfront payment by the borrower without any input from anyone on what value the property may be worth. I hesitate to make many comments on where this will lead, but would rather wait and see how this plays out and hope for the best.
So, let’s try and look at some bright spots! Mortgage rates remain near record lows at the mid to upper 4’s for 30 year fixed rates and 15 year fixed in the low to mid 4’s. Sales activity does remain sluggish; but, what that does is give buyers a chance to look at all the properties available and make an offer on what property best satisfies their needs. Sellers are willing to negotiate, and there is certainly an abundant selection of homes on the market. Just by my observations it also appears that prices seem to have stabilized-albeit at levels no current homeowner is fond of, but stabilizing is better than the other alternative!
Business is brisk for those of us who have survived the last couple years, and most of our clients are well qualified for what they want to do. We are locking in these low rates now and never looking back. After all, just like economic boom times, recessions don’t last forever; and, when the times change, interest rates will go up.
Fixed rate loans (under $417,000) as of 4/23 (p.m.) are:
30 year fixed: 4.75% (APR 4.91%) payments are $2,175.27/mo.
15 year fixed: 4.375% (APR 4.653%) payments are $3,163.48/mo.