Real Estate Investing | Mortgage Rates Creeping Up

Posted by Chris Clothier on Thu, Feb 10, 2011

Mortgage interest rates continue to rise on almost a weekly basis, according to information released by Freddie Mac.  The average rate on a 30-year fixed mortgage jumped to 5.05 percent last week.  That is the highest the rate has been in over three years and is the 6th straight week that the rate has gone up.

After seven months of declines that put the benchmark 30-year rate at a half-century low last year, the rise in rates has driven down demand for financing and is leading mroe and more investors to seek alternative forms of mortgages. The Mortgage Bankers Association ( MBA) reports on an almost weekly basis that the demand for morgages continues to set new lows each week.

With analysts warning about continued hike in rates, any stall in home purchases will have a chilling effect on an already fragile housing market.  What these trends are allowing for though is a huge increase in cash investors entering the market and driving bargain prices even lower.

Freddie Mac’s study, which is based on data gathered from about 125 lenders across the country, tracks rises in rates across the board.  Every loan porduct, not just the 30 year mortgage showed increases.

Each week, Bankrate surveys a panel of mortgage experts for their predictions of which way rates are headed over the next seven days. In a landslide, 80 percent of the panelists are calling for continued increases in mortgage rates. Just 13 percent forecast a decline in mortgage rates, and 7 percent expect no change over the next weeks.

With economic predictions like these, I would say it is definitely time to use your alloted number of mortgages for real estate investing while the money is still cheap.  As long as the property produces a strong cash flow, get the best rate and term you can while rates are still at these historic lows because many economists also say these rates will most likely not be seen again for a very long time!


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Topics: Memphis cash flow, MemphisInvest.com, real estate education, residential real estate investing

Real Estate Investing | Memphis Foreclosures and Home Values

Posted by Chris Clothier on Mon, Jan 17, 2011

Memphis real estate investors continue to get good news from independent analysts on the near future for Memphis investment properties.

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Topics: invest in Memphis real estate, Memphis foreclosures, Real estate investment news, residential real estate investing, Hot Investment Real Estate cities, Real Estate Cycles

Memphis Cash Flow Real Estate | Dallas Buying Event

Posted by Chris Clothier on Tue, Nov 23, 2010
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Topics: MemphisInvest.com, Cash Flow Properties, Chris Clothier, Memphis Investment Property, Wholesale Properties in Memphis, residential real estate investing

ANALYSIS: Why Memphis is a Better Real Estate Investment City

Posted by Chris Clothier on Wed, Apr 14, 2010

Do you read the daily articles in Yahoo real estate news?  How about DSNews.com?

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Topics: Chris Clothier, Memphis foreclosures, Memphis wholesale property, residential real estate investing, Hot Investment Real Estate cities, real estate investing advice

Responsible Lending = Better Investment opportunities in Memphis

Posted by Chris Clothier on Mon, Nov 30, 2009

Memphis, like so many other cities in America, continues to see rising foreclosures and a rise in delinquent notes.  Some caused by circumstance, some caused by the economy and many caused by the initial actions of the lender.  Not all the news is bad for Memphis real estate investors, but as the economy worsens, investors are having a harder time finding the funding needed for continued purchasing.  This is a great article highlighting where the MBA stands and how the Center for Responsible Lending, a non-profit that protects consumers from abusive lending practices, views the current situation.

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The Mortgage Bankers Association (MBA) reported this week that a record number of loans — 1 in 7 — is delinquent, up from 1 in 10 a year ago. The numbers also show that 1 in 22 families in the United States is in the process of losing their home, up from 1 in 34 this time last year.

Based on these figures, the Center for Responsible Lending says the industry is on track for 2.9 million foreclosure starts in this year alone.

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Topics: residential real estate investing, real estate investing advice, investing in Memphis foreclosures

Bank strategy will lead to more investment properties in Memphis

Posted by Chris Clothier on Fri, Jul 24, 2009

I have to admit, I was completely new to the term "extend and pretend" when I first heard it a couple of weeks back.  The investment real estate market, especially here in Memphis, TN. has been helped along by this strategy but also hampered by it. I was reading an article in my local newspaper and was shocked at what I read.  I was so dumbfounded after reading the article that I had to do some research on it before commenting here. 

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Topics: invest in Memphis real estate, Chris Clothier, residential real estate investing, shadow inventory