Phoenix Arizona Investment Property

In an effort to loosen credit and get more loans flowing, the Federal Reserve rolled out two new programs that would provide up to $800 billion. The allocated funds will be broken out as follows:

• $200 billion to buy credit card loans, auto loans, student loans and loans to small businesses;
• $500 billion to buy mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac;
•  and another $100 billion to directly purchase mortgages held by Fannie, Freddie and the Federal Home Loan Banks.

Bank Owned Homes and Foreclosures are still through the roof in the Phoenix real estate market but it seems as though a shot of addrenaline could spark some movent in the Investment property market. Soon as they release the money and banks loosend up and start lending, we should see an uprise in home sales.

As we move ahead to another week in the changing Phoenix Real Estate Market, there are many new and upcoming changes to consider. Currently the Phoenix Real Estate Market is flooded with positive cash-flow producing investment property in the form of bank owned REO homes, pending foreclosures and and an increasing supply of government HUD Homes The one story that stands out amongst the rest is drop in mortgage rates to their lowest of the year. Many investors and real estate buyers in the Phoenix area have been hearing the buzz about rates dropping down to 4.5% through government intervention. The FED has stepped up to the plate and said they are willing to purchase a large amount of Fannie mae and Freddi Mac backed mortgages, and the Treasury has indicated interest to keep interest rates at an all time low. Unfortunately we know that:

· Treasury does not set the mortgage rates – traders on Wall Street do and they directly tied into the Supply and Demand for mortgage backed bonds

· Treasury intervention will not guarantee low rates

· Nothing is set in stone regarding 4.5% mortgage rates…it is all speculation to this point

Short term mortgage rates have fallen, but there is no definite plans to drop the rates down to a 4.5% mortgage rate on the long term loan side. Take advantage of the Phoenix investment property available today with the current low interest rate because like they say, nothing is for sure, take what you can get.

Contact RealVision Group today, receive our Bank Owned Hot List and stay in the know regarding the ever changing Phoenix Real Estate market

Home builders and industry analysts say a proposal to offer federally subsidized mortgage rates as low as 4.5 percent could go a long way and help revive the struggling housing market in Phoenix Arizona.

Mortgage rates have not been that low for more than a generation.

The projected low rates could bring in more buyers and help slow falling housing values of all Phoenix homes. More stable values could help slow rising foreclosures.

In September, Phoenix led the nation in declining home prices, and in October, Arizona was pegged as No. 2 in foreclosures, after Nevada. New figures from the Federal Housing Finance Agency show that the value of the state's "average" home has plummeted more than 6 percent in the three months ending Sept. 30. Year over year, values are down by 13.5 percent

The lower rates would be available only for purchases, according to the proposal, which is under consideration by the Treasury Department. They could not be used to refinance higher-interest loans. If this passes, it will revive the Phoenix Arizona Real Estate Market and more buyers will come out of the wood work.

The mortgage-rate program could get prospective buyers off the fence by offering a rate almost 1.5 percentage points lower than the 5.92 percent that large lenders are offering for 30-year, fixed-rate mortgages, according to a Dec. 3 Bankrate.com survey.

Buyers would have to document income, be able to afford the payments and qualify for guarantees from Freddie Mac, Fannie Mae or the Federal Housing Administration.

Thus, the initiative would be geared toward boosting the housing market to stem future foreclosure rate rather than helping people whose homes now are in the process of being taken back by lenders and becoming REO property.

Besides stimulating sales, Brown said, the low rates could send a message that there may never be a better time to buy Phoenix Real Estate.

"Right now, buyers are sitting on the sidelines waiting for prices to go even lower," Brown said

Stephanie Dunbar of Phoenix said she has been looking to buy a house to take advantage of the "incredibly low prices." Dunbar, a property manager, said she would jump at a 4.5 percent mortgage rate.

Prospective buyers, paralyzed by the credit issues or the economy, as well as mounting foreclosures, are keeping Valley home prices in a free fall, which is further feeding the downward cycle.

In September, metro Phoenix led the nation in falling home prices, logging a 32 percent decline in a year and 38 percent over two years, according to the S&P/Case-Shiller Home Price Indices.

RealtyTrac, a service that follows foreclosure filings, counted 17,507 Arizona foreclosure notices in October, up 35 percent from the previous month and 176 percent from October 2007.

Jay Butler, director of realty studies at Arizona State University's Morrison School of Management and Agribusiness, believes lower interest rates could slow foreclosures. But he is worried that the stimulus could be offset by mounting job losses and worsening economic conditions.

This is not all bad for the Phoenix property investor. People will always need a place to stay, investment property prices are at historic lows, many people in Arizona have a foreclosure on their and cannot buy a home. They will need to lease and that is where your Phoenix investment property comes in and brings you positive cash-flow.

The plan to offer low-interest loans, would work through government mortgage giants Fannie Mae and Freddie Mac. Longtime Valley home builder Garth Wieger believes the program could help stem the persistent slide in home values and growing foreclosures that are the underpinning of the current financial crisis. .

"It would move a lot of the Valley's inventory of unsold houses," said Garth Wieger. "Rates are low, prices are low and Arizona is a great place to live."

Meanwhile, government agencies continue to work on other plans to jump-start the nation's ailing housing industry.

• On Thursday, Bernanke suggested sweeping moves are needed to halt falling home prices, including a plan for the government to buy troubled mortgages and refinance them under more favorable terms.

• Last week, the Federal Reserve and Treasury Department announced a plan to cut mortgage rates by purchasing up to $600 billion in debt issued or backed by federal agencies. The announcement briefly helped push mortgage rates down almost a point to about 5.5 percent.

• A third plan, offered by Federal Deposit Insurance Corp. Chairman Sheila Bair would use $24 billion from the government's $700 billion financial-rescue fund to stave off 2 million foreclosures by modifying loans and providing government guarantees

Are you ready to invest in Phoenix Real Estate Market? Contact Us today!