Housing has taken another hit recently with the National Association of Realtors latest pending home sales index report claims contract signings have fallen 4.6%. The good part? The rate is still 6.4% above from last years report.

According to Lawrence Yun, the NAR chief economist, the housing marketing is being excessively constrained. It's a combination of weak consumer confidence and and continuing tight lending criteria has held back home buyers, even though the private sector has added almost 2 million new jobs in the past year.

He also stated America's monetary policy is confusing and contradictory, because America's best financial capacity and best credit scores pay the highest mortgage interest rates. The Federal Reserve has been trying to lower mortgage rates, but more consumers are still taking out huge loans that have the highest interest rates.In order to fix this, Yun says the higher loan limits must be reinstated.

The largest decline was seen in the midwest, but our region is still 12.3% higher than last year. The smallest decline was in the West where rates declined 2.1%. Reduced access to credit and ailing jobs market is continuing the put a strain on the housing market.

The Obama administration just revealed its scorecard on its anti-foreclosure program recently, and there's just one word for it: minimal.

Roughly of the one million financially burdened homes in the country who have been given mortgage payment reductions through three month trials, only 116,000 have been given permanent load modifications from participating lenders. The Home Affordable Modification Program was the institution that created this assistance program. Also, 60,000 borrowers have been kicked out of the program for several reasons.

Last year Obama and his administration said the program would help three to four million Americans in the next few years. They made this claim with very unrealistic expectations, and they know it now seeing the numbers that actually appeared.

      The complications that have disrupted the HAMP efforts so far:

          This program allowed borrowers to request three month trials without documentation of their income. Many of them were able to withstand the trial periods, but they weren't able to complete the program requirements such as documenting their income.

          The program was designed to withstand a 31% decrease of monthly household incomes, but it cannot withstand the common situations where job losses have sharply reduced household incomes. Most of these end up in foreclosure.

         The program is limited to only monthly payment reductions, not cutting its principal they owe. This program is designed to help out a few distressed homes, not the 15 million Americans who jumped into a losing battle.

It's often argued that these foreclosures cannot be averted until most borrowers and lenders agree to write off some of the debt they owe. A good point to keep in mind is that buyers are not the only ones to blame. Some...

Buying a house was once a process that only took a couple of months. But today tight mortgage guidlines, market concerns, and distressed sales appraisal dramas extend this process all while making it much more complicated.

If you're trying to buy and sell at the same time, it seems like you've undertaken all these complications twofold. However, getting educated about today's market and figuring out all your options gives you strategy. There is no need to panic and worry about all the outcomes. here are four tips that will make buying and selling your house much easier.

1. Meet with your agent way before you plan to list your house.

           This allows them to give you an idea on how long it will take to sell your house, and possibly how you can move it along faster. They'll give you advice when and at what price to list your house, and show you how it can realistically be expected to quicken the sale of the house. They can and will tell you what price you will most likely receive on your house. This opens up the option whether you need a short sale (if your houses' value is less than what you owe) or not. This will affect your qualifications on your loan application in the short-term. Short sales make it very difficult to get a loan for a few years, but if you want to and need to buy in the near-term with a short sale, discussing legalities and logistics must be done with your CPA, mortgage pro, or attorney. Meeting with your agent a year before you plan on moving isn't too early at all. All the information you need will come from meeting with them this early.

2. Meet with your mortgage broker before you start looking for houses or put yours on the market.

            Obviously this step would have been done anyway, but it is critical they walk you through this process before any major contracts are signed. Talking with them...

Establishing a Mortgage You Can Live With

All lenders have a few simple formulas that calculate how much of a mortgage you can afford. Qualifying ratios is the name of these formulas because they measure the amount of money that should be spent on your motgage in relation to your income and other expenses. Keep in mind each lender has their own version of these qualifying ratios and their calculation numbers are a bit different from one another.

In order to qualify for loans, your housing expenses should not exceed over 28% of your monthly income. Your monthly housing expenses include Mortgage principal, interest, taxes, and insurance. Say $30,000 is your gross annual income, then your monthly income is $2,500. Now, 28% of $2,500 is $700. You would most likely qualify for this loan because $700 is what you would pay monthly, and the lender would see you would have plenty of extra money.

It is extra important that you select a home that will keep you & your family happy for years into the future.

When figuring out your budget when buying a home, you absolutly need to allow room for extra expenses like maintenance and utilities. If you plan on buying an existing home, collect utility cost averages and maintenance costs from the previous owners to aid yourself in preparing for home ownership

If your finances are in great condition, you could look for a home priced two or three times your yearly salary. The mortgage calculators can give you a rough estimate of how large of a mortgage you might qualify for, speaking with a lender or mortgage broker will definately give you a more accurate figure.

**Current Mortgage Rates** 

{ Friday, July 15, 2011 }

Courtesy Of:  Bev Leonhardt NMLS #55044

502-445-2827

Conventional 30 Year -----------4.625%

Conventional 15 Year------------ 3.875%

FHA 30 Year------------------------4.500%

FHA 5 Year ARM-------------------3.500%

 VA 30 Year--------------------------4.500%...