Minot Is The Place To Live!!!

This article will appear in the April issue of the Minot Daily Home Market Magazine:

The current real estate market nation-wide is experiences some bumps and bruises. There are many factors that allowed for this to happen, the least of which were heavy speculation, sub-prime mortgage borrowing, adjustable rate and interest only loans and plainly put, greed and/or uneducated borrowers. The housing market is a prime driver of the economy, so during this political year, the government is stepping in to try to relieve some of the pressure.

Three weeks ago, the Department of Housing and Urban Development (HUD) released new FHA and conforming loan limits as required by President Bush’s economic stimulus package. New loan limits will be calculated on local median home prices for many of the nation’s markets. The National Association of REALTORS® (NAR) expects the infusion of money into the capital market in this historically busy real estate season to help boost the economy and maintain extremely low interest rate levels. It is NAR’s position that nearly 138,000 home buyers will be brought to the market and up to 200,000 current home owners will remain in their homes on potential refinance situations.

An economic impact study performed in January by NAR shows even potentially stronger numbers, showing that upwards of 500,000 loans may be refinanced, saving over 200,000 loans from foreclosure. NAR estimates nearly 300,000 new home loans could be generated by these changes, which should stabilize home prices and keep mortgage interest rates in check with current levels. This information was reported to REALTORS® by NAR the first week of March.

There are a number of consumers that may be affected by such action. New loan limits in historically safe mortgage note instruments like FHA are better options than large jumbo loans with higher rates and fees. This option may allow current owners to maintain their homes and avoid foreclosure. New entrants to the market may be able to get favorable financing rather than using unconventional instruments to purchase the home of their dreams.

There are other steps that the government has considered, some of which would be helpful and some that may cause unintended consequences to the capital market. One positive move is the effort to license mortgage brokers going forward. However, if the government were to take steps to extend currently delinquent notes to avoid foreclosure, that may affect the current mortgage market in the way of higher interest rates and less inventory. Should the government intervene on already passed due notes, it could impact anybody going forward with a new mortgage.

How does all of this affect the Minot area market? It is generally understood that North Dakota as a whole has been left relatively unaffected by the volatility in the mortgage market. How this could help however is for FHA type financing, more buyers may be brought to the market and the ability of FHA to insure more loans in the national market should help stabilize interest rates and calm the irrational fears in the consumers’ mind.

Prudential Preferred Properties

This is the beginning entry to blogging about our wonderful community, the city of Minot, North Dakota!  As a lifelong resident, two time graduate of Minot State University and an active member of the business community, I have a lot of positive and complimentary opinions of our city.  Most importantly, I am optomistic about the real estate market as the broker / owner of Prudential Preferred Properties.  Our company is the fastest growing, most aggressive internet marketing company not only in the Minot market, but in the state of North Dakota.  We are setting expectations high, beginning with this blog.  I'm looking forward to publishing as much relevant Minot city and real estate information and am anxious for your input! 

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