Spring 2011 Housing Trends from Bankrate.com

Mortgage and insurance research web site, Bankrate.com, recently published an article featuring 5 housing trends for 2011. First, they noted that mortgage rates have had a bumpy ride over the past few months and that recent changes to loan officer compensation, FHA mortgage insurance premiums, and conforming loan limits (coming Oct. 2011) could mean higher rates* and/or more expenses for home buyers.

A huge pool of foreclosures on the market could also have a major impact on the market and make it hard for people to sell their homes while buyers are shopping for bargain basement steals. Bankrate.com recommends that sellers provide an analysis of homes sold in their neighborhoods with foreclosures broken out and, to price homes aggressively if serious about selling.

Another popular trend noted in the article is the growing popularity of adjustable rate mortgages. A Freddie Mac survey found that close to 10% of borrowers will elect an ARM this year. The article also listed cash-in refinances being on the rise. A Cash-in refi occurs when borrowers actually bring money to the closing table in an attempt to avoid private mortgage insurance (PMI) or to quality for a conforming loan or lower their interest rate.

*While many of Bankrate.com's trend predictions may hold true, earlier this month mortgage rates dropped to their lowest levels since December 2010.

You can read their entire article here:
http://www.bankrate.com/finance/mortgages/5-housing-trends-in-spring-2011-1.aspx