Dallas Home Appraisals News and Information

The Federal Reserve says that during the first quarter of 2009 many banks made it harder for borrowers to get a home loan, according to an article on the DMN site.  Banks surveyed by the Fed said they expected further deterioration in credit quality for all types of loans, with 70% saying that the quality of their loan portfolios are likely to deteriorate this year.

The banks have tightened lending in the face of increased demand, as low interest rates have fueled a huge increase in refinance applications.  Those same low rates, along with a buyer's market and a tax credit that expires in December, have also led to an increase in pending sales for March bringing an increase in loan apps.

It looks like he banks will continue to keep a tight rein on lending.  Fewer loan approvals and a stock market rally closing out April have kept rates fairly steady.  Our credit union raised their 30 year fixed rate from 4.875 to 5 this week (no discount points, 1 origination point), but other reports show slightly lower rates (though likely with higher fees).  A continued market rally would undoubtedly push rates up.  All of this would indicate that if you are considering refinancing or buying and you've found a rate that fits your budget now is the time to apply for a loan.  Or, if you want to really drive yourself crazy, read this article to find out why some economists think rates will go as low as 4% before the year ends.

If you think now might be the right time for you to refinance, let Blue Star Appraisals help you find a loan professional to guide you through the process.  Contact us today for a referral to a mortgage broker or lender or for a free consultation regarding market values in your neighborhood.