Dallas Home Appraisals News and Information

The news today is so mixed that it's hard to glean the facts between what one "expert" says as opposed to another and, frankly, whether we are looking a good news or not.  With stocks ending up for the week it certainly appears that investors and shoppers are a little more optimistic, with strong earnings numbers coming in from Wells Fargo for the first quarter of 2009, a drop in unemployment benefit filings, better than expected outlook for some retailers for April, and major market indexes realizing a fifth straight week of gains.

On the other hand, as the DMN article on today's front page points out, sales of corrugated boxes are still down, which some experts believe indicates that consumers are still buying less (less purchases equal less items that need to be shipped in corrugated boxes).  An interesting economic indicator that was new to us!  Still, there are signs that things are stabilizing, if not improving.  Our favorite quote of the week is from Sal Guatieri, a senior economist with BMO Capital Markets (as reported in the DMN): "Things are still bad, but less bad than before, which is good in this environment".  Shades of Alice in Wonderland.

Another interesting article this morning in the DMN is by Steve Brown, and talks about the fact that many homeowners who have had their loans "modified" under the new Homeowner Affordability and Stability Plan have actually seen an increase in their payments and that almost 50% of those who have modified their loans have ended up defaulting anyway.  The article makes two good points - the first being "buyer beware", understand what the costs are associated with your modification and be certain that you understand the terms.  The second point is that lenders are generally not going as far with these modifications as the administration had hoped, and instead of stemming the tide of defaults may just be prolonging an eventual flood of foreclosures.

So, what is the good news that we can take into next week as we wind down and enjoy this holiday weekend?  Well, the market has stabilized somewhat over the past several weeks indicating a general optimism in the way things are going.  Mortgage rates, although up slightly at the end of the week, are still below 5% on a 30-year fixed mortgage, making it still an excellent time to refinance for many borrowers.  Home prices, while perhaps not at bottom yet, are low enough that, coupled with low rates and the tax credit, mortgage apps for buyers are beginning to increase.

Now may be the best time to consider whether or not refinancing is right for you, as a further increases in refi and mortgage apps, coupled with a climbing stock market, would likely put upward pressure on interest rates.   It is also the time to consider whether market values, low rates and the tax credit are all aligned in such a way as to make now the right time to buy a home.  And, as always, take a look at your property tax assessments (notices will be coming out in the next couple of weeks) and decide if your home seems to have been overvalued at the end of 2008 and, if so, if you want to file a protest.  (Click here to learn more about protesting your tax assessment).

Please contact Blue Star Appraisals Inc. if you need more information about current market conditions in your neighborhood to determine if a professional property appraisal would benefit you at this time for either refinancing, tax protests, PMI removal, pre-listing, or pre-remodeling (see previous post).  We are happy to provide you with a free consultation regarding the general trend of values in your neighborhood, and can connect you to lenders and brokers that can help you find the mortgage program that is right for you.