| 30-Year Mortgage Rates Nudge Upward
Mortgage rates around the country crept up this week, although rates on 30-year mortgages still hovered close to their low for the year. In its weekly survey, mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.17 percent for the week. That was up slightly from 6.16 percent last week. Even with the uptick, it was near the low for this year of 6.14 percent, set during the first two weeks of March. .
Housing slump pushes brokers to work harder
Each spring, thousands of Triangle homes sprout "For Sale" signs as the housing industry's most important selling season gets under way.But this year, in one of the worst housing markets in a generation, brokers are scrambling to prevent a financial frost."We're being a little more competitive," said York Simpson Underwood broker Ed Willer. "We have to, because there are more homes on the market."For the Triangle's largest industry, spring is when agents typically welcome waves of families looking to move up or move into the region. Buyers, clear of winter holiday demands, are eager to settle into a new home before school begins in the fall. Sellers plan spring showings when bright lawns and colorful gardens add curb appeal.Brokers, who can notch a third of their sales in the three-month period, also count on rewards from homes they show in the spring and close on in early summer.In the Triangle, spring is typically when brokers can tack a 5 percent premium onto asking prices for homes -- and get it.Not this spring.The national housing slowdown continues to pinch sales, and some in the industry worry that the malaise will continue through the year.
Subprime lenders face music, roil nation's financial markets
Fallout from the collapsing subprime lending sector continued to send shock waves through the nation's financial markets last week, especially after industry leader Accredited Home Lenders announced it was facing "liquidity problems," and third-largest lender New Century reported it was being forced to repurchase $9 billion in bad loans from its warehouse bank.Meanwhile, the Nevada Mortgage Lending Division finished its investigation into the collapse of locally-owned Silver State Mortgage. Silver State has not yet declared bankruptcy but faced similar liquidity problems, brought on by the large volumes of loans it was forced to repurchase from warehouse bank Washington Mutual. Silver State closed its doors Feb. 14.Scott Bice, Nevada's Mortgage Lending commissioner, said his agency's recent investigation revealed some evidence of fiduciary mismanagement at Silver State.
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